[House Report 108-767]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     108-767
_______________________________________________________________________

                                     


                   RONALD W. REAGAN NATIONAL DEFENSE
                         AUTHORIZATION ACT FOR
                            FISCAL YEAR 2005

                               ----------                              

                           CONFERENCE REPORT

                              to accompany

                               H.R. 4200




                October 8, 2004.--Ordered to be printed
  RONALD W. REAGAN NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 
                                  2005


108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     108-767
_______________________________________________________________________

                                     


                   RONALD W. REAGAN NATIONAL DEFENSE

                         AUTHORIZATION ACT FOR

                            FISCAL YEAR 2005

                               __________

                           CONFERENCE REPORT

                              to accompany

                               H.R. 4200




                October 8, 2004.--Ordered to be printed


                            C O N T E N T S

                              ----------                              
                                                                   Page
DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS.................     2
JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE.......   393
SUMMARY STATEMENT OF CONFERENCE ACTIONS..........................   393
    Summary table of authorizations..............................   393
Title I--Procurement.............................................   401
        Procurement Overview.....................................   401
            Aircraft Procurement, Army Overview..................   403
            Missile Procurement, Army Overview...................   407
            Procurement of Weapons and Tracked Combat Vehicles, 
              Army Overview......................................   410
            Procurement of Ammunition, Army Overview.............   414
            Other Procurement, Army Overview.....................   419
            Aircraft Procurement, Navy Overview..................   431
            Weapons Procurement, Navy Overview...................   437
            Procurement of Ammunition, Navy and Marine Corps 
              Overview...........................................   441
            Shipbuilding and Conversion, Navy Overview...........   444
            Other Procurement, Navy Overview.....................   447
            Procurement, Marine Corps Overview...................   458
            Aircraft Procurement, Air Force Overview.............   464
            F/A-22 aircraft......................................   471
            Procurement of Ammunition, Air Force Overview........   471
            Missile Procurement, Air Force Overview..............   474
            Other Procurement, Air Force Overview................   478
            Procurement, Defense-Wide Overview...................   485
    Items of Special Interest....................................   493
            Joint surveillance and target attack radar system re-
              engining...........................................   493
            Halvorsen loaders....................................   493
    Legislative Provisions Adopted...............................   493
        Subtitle A--Authorization of Appropriations..............   493
            Authorization of appropriations (sec. 101-104).......   493
        Subtitle B--Army Programs................................   494
            Multiyear procurement authority for the lightweight 
              155-millimeter howitzer program (sec. 111).........   494
            Light utility helicopter program (sec. 112)..........   494
        Subtitle C--Navy Programs................................   494
            DDG--51 modernization program (sec. 121).............   494
            Repeal of authority for pilot program for flexible 
              funding of cruiser conversions and overhauls (sec. 
              122)...............................................   495
            LHA (R) amphibious assault ship program (sec. 123)...   495
        Subtitle D--Air Force Programs...........................   495
            Prohibition of retirement of KC-135E aircraft (sec. 
              131)...............................................   495
            Prohibition of retirement of F-117 aircraft (sec. 
              132)...............................................   495
            Aerial refueling aircraft acquisition program (sec. 
              133)...............................................   495
        Subtitle E--Other Matters................................   496
            Development of deployable systems to include 
              consideration of force protection in asymmetric 
              threat environment (sec. 141)......................   496
            Allocation of equipment authorized by this title to 
              units deployed, or to be deployed to Operation 
              Iraqi Freedom or Operation Enduring Freedom (sec. 
              142)...............................................   496
            Report on options for acquisition of precision-guided 
              munitions (sec. 143)...............................   497
    Legislative Provisions Not Adopted...........................   497
            Up-armored high mobility multi-purpose wheeled 
              vehicles or wheeled vehicle ballistic add-on armor 
              protection.........................................   497
            Command and control vehicles or field artillery 
              ammunition support vehicles........................   497
            Other matters relating to KC-767 tanker aircraft 
              acquisition program................................   497
            Additional amount for Patriot missile procurement....   498
            Transfer of certain Army procurement funds...........   498
            Pilot program for flexible funding of submarine 
              engineered refueling overhaul and conversion.......   498
            Senior Scout mission bed-down initiative.............   498
Title II--Research, Development, Test, and Evaluation............   499
            Research, Development, Test and Evaluation Overview..   499
        Army.....................................................   501
            Research, Development, Test and Evaluation, Army 
              Overview...........................................   501
            Advanced battery technology initiative...............   519
            Medical technology applied research initiative.......   519
            Lightweight Structures Initiative....................   519
            Mobile tactical high energy laser....................   519
        Navy.....................................................   520
            Research, Development, Test and Evaluation, Navy 
              Overview...........................................   520
            Littoral Combat Ship.................................   540
            Land attack technology...............................   540
            Open architecture....................................   541
        Air Force................................................   541
            Research, Development, Test and Evaluation, Air Force 
              Overview...........................................   541
            Transformational satellite communications............   558
            Space-based radar....................................   558
            Space-based infrared system..........................   559
        Defense-Wide.............................................   560
            Research, Development, Test and Evaluation, Defense-
              wide Overview......................................   560
            Chemical and biological defense basic research 
              program............................................   577
            Chemical and biological defense applied research 
              program............................................   577
            Stimulated isomer energy release.....................   577
            Combating terrorism technology support...............   578
            Chemical and biological defense program advanced 
              technology development.............................   578
            Airborne laser.......................................   579
            Kinetic energy interceptor...........................   579
            Operationally responsive space.......................   580
        Test and Evaluation......................................   580
            Operational Test and Evaluation, Defense Overview....   580
    Items of Special Interest....................................   582
            Department of Defense--National Aeronautics and Space 
              Administration coordination........................   582
            Enterprise Resource Planning for Army Combat 
              Logistics..........................................   582
            Patriot air and missile defense system...............   583
            Russian-American missile defense cooperation.........   583
    Legislative Provisions Adopted...............................   584
        Subtitle A--Authorization of Appropriations..............   584
            Authorization of appropriations (sec. 201)...........   584
            Amount for defense science and technology (sec. 202).   584
        Subtitle B--Program Requirements, Restrictions, and 
          Limitations............................................   584
            Future Combat Systems program strategy (sec. 211)....   584
            Collaborative program for research and development of 
              vacuum electronics technologies (sec. 212).........   585
            Annual Comptroller General report on Joint Strike 
              Fighter program (sec. 213).........................   586
            Amounts for U.S. Joint Forces Command to be derived 
              only from Defense-wide accounts (sec. 214).........   586
            Global Positioning System III satellite (sec. 215)...   587
            Initiation of concept demonstration of Global Hawk 
              high altitude endurance unmanned aerial vehicle 
              (sec. 216).........................................   587
            Joint unmanned combat air systems program (sec. 217).   587
        Subtitle C--Missile Defense Programs.....................   587
            Fielding of ballistic missile defense capabilities 
              (sec. 231).........................................   587
            Integration of Patriot Advanced Capability-3 and 
              Medium Extended Air Defense System into ballistic 
              missile defense system (sec. 232)..................   588
            Comptroller General assessments of ballistic missile 
              defense programs (sec. 233)........................   588
            Baselines and operational test and evaluation for 
              ballistic missile defense system (sec. 234)........   589
        Subtitle D--Other Matters................................   589
            Annual report on submarine technology insertion (sec. 
              241)...............................................   589
            Sense of the Congress regarding funding of the 
              Advanced Shipbuilding Enterprise under the National 
              Shipbuilding Research Program of the Navy (sec. 
              242)...............................................   589
    Legislative Provisions Not Adopted...........................   589
            Program increases....................................   589
            Joint Strike Fighter aircraft program................   591
            Space based radar....................................   591
            Mark-54 torpedo product improvement program..........   591
            Infrastructure system security engineering 
              development for the Navy...........................   591
            Neurotoxin Mitigation Research.......................   592
            Spiral development of Joint Threat Warning System 
              maritime variants..................................   592
            Advanced ferrite antenna.............................   592
            Prototype littoral array system for operating 
              submarines.........................................   592
            Advanced manufacturing technologies and radiation 
              casualty research..................................   593
            Research and development for improved prevention of 
              leishmaniasis:.....................................   593
Title III--Operation and Maintenance.............................   595
            Operation and Maintenance Overview...................   595
    Items of Special Interest....................................   642
            Navy Marine Corps Intranet...........................   642
            Transforming the Department of the Army's logistics 
              maintenance information............................   642
    Legislative Provisions Adopted...............................   642
        Subtitle A--Authorization of Appropriations..............   642
            Authorization of appropriations (secs. 301-303)......   642
            Chemical Agents and Munitions Destruction, Defense 
              (sec. 303b)........................................   642
        Subtitle B--Environmental Provisions.....................   644
            Satisfaction of Superfund audit requirements by the 
              Inspector General of the Department of Defense 
              (sec. 311).........................................   644
            Reimbursement of Environmental Protection Agency for 
              certain costs in connection with Moses Lake 
              Wellfield Superfund Site, Moses Lake, Washington 
              (sec. 312).........................................   644
            Increase in authorized amount of environmental 
              remediation, Front Royal, Virginia (sec. 313)......   644
            Small Boat Harbor, Unalaska, Alaska (sec. 314).......   644
            Report regarding encroachment issues affecting Utah 
              Test and Training Range, Utah (sec. 315)...........   645
            Comptroller General Study and report on Alternative 
              Technologies to decontaminate groundwater at 
              Department of Defense installations (sec. 316).....   645
            Comptroller General study and report on drinking 
              water contamination and related health effects at 
              Camp Lejeune, North Carolina (sec. 317)............   645
            Sense of Congress regarding perchlorate contamination 
              of ground and surface water from Department of 
              Defense activities (sec. 318)......................   645
        Subtitle C--Workplace and Depot Issues...................   646
            Simplification of annual reporting requirements 
              concerning funds expended for depot maintenance and 
              repair workloads (sec. 321)........................   646
            Repeal of annual reporting requirement concerning 
              management of depot employees (sec. 322)...........   646
            Extension of special treatment for certain 
              expenditures incurred in the operation of Centers 
              of Industrial and Technical Excellence (sec. 323)..   646
            Temporary authority for contractor performance of 
              security-guard functions (sec. 324)................   647
            Pilot program for purchase of certain municipal 
              services for Army installation (sec. 325)..........   647
            Bid protests by federal employees in actions under 
              Office of Management and Budget Circular A-76 (sec. 
              326)...............................................   647
            Limitations on conversion of work performed by 
              Department of Defense civilian employees to 
              contractor performance (sec. 327)..................   648
            Competitive sourcing reporting requirement (sec. 328)   649
        Subtitle D--Information Technology.......................   649
            Preparation of Department of Defense plan for 
              transition to Internet Protocol version 6 (sec. 
              331)...............................................   649
            Defense business enterprise architecture, system 
              accountability, and conditions for obligation of 
              funds for defense business system modernization 
              (sec. 332).........................................   650
            Report on maturity and effectiveness of the Global 
              Information Grid Bandwidth Expansion (GIG-BE) (sec. 
              333)...............................................   650
        Subtitle E--Extensions of Program Authorities............   650
            Two-year extension of Department of Defense 
              telecommunications benefit (sec. 341)..............   650
            Extension of Arsenal Support Program Initiative (sec. 
              342)...............................................   651
            Two-year extension of warranty claims recovery pilot 
              program (sec. 343).................................   651
        Subtitle F--Other Matters................................   651
            Reimbursement for certain protective, safety, or 
              health equipment purchased by or for members of the 
              Armed Forces deployed in contingency operations 
              (sec. 351).........................................   651
            Limitation of preparation or implementation of Mid-
              Range Financial Improvement Plan pending report 
              (sec. 352).........................................   653
            Pilot program to authorize Army working-capital 
              funded facilities to engage in cooperative 
              activities with non-Army entities (sec. 353).......   653
            Transfer of excess Department of Defense personal 
              property to assist firefighting agencies (sec. 354)   653
    Legislative Provisions Not Adopted...........................   654
            Amount for One Source military counseling and 
              referral hotline...................................   654
            Reduction in authorization for Air Force operations 
              and maintenance....................................   654
            Family Readiness Program of the National Guard.......   654
            Payment of certain private cleanup costs in 
              connection with Defense Environmental Restoration 
              Program............................................   654
            Public-private competition pilot program.............   654
            Establishment of joint program office to improve 
              interoperability of battlefield management command 
              and control systems................................   655
            Procurement of follow-on contracts for the operation 
              of five Champion-class T-5 tank vessels............   656
            Expansion of Department of Defense excess personal 
              property disposal program to include health 
              agencies...........................................   656
Title IV--Military Personnel Authorizations......................   657
    Legislative Provisions Adopted...............................   657
        Subtitle A--Active Forces................................   657
            End strengths for active forces (sec. 401)...........   657
            Revision in permanent active duty end strength 
              minimum levels (sec. 402)..........................   657
            Additional authority for increases of Army and Marine 
              Corps active duty personnel end strengths for 
              fiscal years 2005 through 2009 (sec. 403)..........   658
            Exclusion of service academy permanent and career 
              professors from a limitation on certain officer 
              grade strengths (sec. 404).........................   658
        Subtitle B--Reserve Forces...............................   658
            End strengths for Selected Reserve (sec. 411)........   658
            End strengths for Reserves on active duty in support 
              of the Reserves (sec. 412).........................   659
            End strengths for military technicians (dual status) 
              (sec. 413).........................................   659
            Fiscal year 2005 limitation on number of non-dual 
              status technicians (sec. 414)......................   660
            Maximum number of Reserve personnel authorized to be 
              on active duty for operational support (sec. 415)..   660
            Accounting and management of Reserve component 
              personnel performing active duty or full-time 
              National Guard duty for operational support (sec. 
              416)...............................................   661
        Subtitle C--Authorization of Appropriations..............   661
            Military personnel (sec. 421)........................   661
            Armed Forces Retirement Home (sec. 422)..............   662
Title V--Military Personnel Policy...............................   663
    Items of Special Interest....................................   663
            Space cadre..........................................   663
            Time for holding grade of general, admiral, 
              lieutenant general, or vice admiral................   663
    Legislative Provisions Adopted...............................   664
        Subtitle A--Officer Personnel Policy.....................   664
            Transition of active-duty list officer force to a 
              force of all regular officers (sec. 501)...........   664
            Repeal of requirement that Deputy Chiefs and 
              Assistant Chiefs of Naval Operations be selected 
              from officers in the line of the Navy (sec. 502)...   664
            Limitations on number of officers frocked to major 
              general and rear admiral (sec. 503)................   664
            Distribution in grade of Marine Corps Reserve 
              officers in an active status in grades below 
              brigadier general (sec. 504).......................   665
            Authority for Federal recognition of National Guard 
              commissioned officers appointed from former Coast 
              Guard personnel (sec. 505).........................   665
            Study regarding promotion eligibility of retired 
              officers recalled to active duty (sec. 506)........   665
            Succession for office of Chief, National Guard Bureau 
              (sec. 507).........................................   665
            Redesignation of Vice Chief of the National Guard 
              Bureau as Director of the Joint Staff of the 
              National Guard Bureau (sec. 508)...................   666
        Subtitle B--Reserve Component Policy Matters.............   666
            Modification of stated purpose of the Reserve 
              components (sec. 511)..............................   666
            Homeland defense activities conducted by the National 
              Guard under authority of title 32 (sec. 512).......   666
            Commission on the National Guard and Reserves (sec. 
              513)...............................................   666
            Repeal of exclusion of active duty for training from 
              authority to order Reserves to active duty (sec. 
              514)...............................................   667
            Army program for assignment of Active component 
              advisers to units of the Selected Reserve (sec. 
              515)...............................................   667
            Authority to accept certain voluntary services (sec. 
              516)...............................................   667
            Authority to redesignate the Naval Reserve as the 
              Navy Reserve (sec. 517)............................   668
            Comptroller General assessment of integration of 
              Active and Reserve components of the Navy (sec. 
              518)...............................................   668
            Limitation on number of STARBASE academies in a State 
              (sec. 519).........................................   668
            Recognition items for certain Reserve component 
              personnel (sec. 520)...............................   669
        Subtitle C--Reserve Component Personnel Matters..........   669
            Status under disability retirement system for Reserve 
              members released from active duty due to inability 
              to perform within 30 days of call to active duty 
              (sec. 521).........................................   669
            Requirement for retention of Reserves on active duty 
              to qualify for retired pay not applicable to 
              nonregular service retirement system (sec. 522)....   669
            Federal civil service military lease for Reserve and 
              National Guard civilian technicians (sec. 523).....   669
            Expanded educational assistance authority for 
              officers commissioned through ROTC program at 
              military junior colleges (sec. 524)................   669
            Repeal of sunset provision for financial assistance 
              program for students not eligible for advanced 
              training (sec. 525)................................   670
            Effect of appointment or commission as officer on 
              eligibility for selected Reserve education loan 
              repayment program for enlisted members (sec. 526)..   670
            Educational assistance for certain Reserve component 
              members who perform active service (sec. 527)......   670
            Sense of Congress on guidance concerning treatment of 
              employer-provided compensation and other benefits 
              voluntarily provided to employees who are activated 
              reservists (sec. 528)..............................   671
        Subtitle D--Joint Officer Management and Professional 
          Military Education.....................................   671
            Strategic plan to link joint officer development to 
              overall missions and goals of Department of Defense 
              (sec. 531).........................................   671
            Improvement to professional military education in the 
              Department of Defense (sec. 532)...................   672
            Joint requirements for promotion to flag or general 
              officer grade (sec. 533)...........................   672
            Clarification of tours of duty qualifying as a joint 
              duty assignment (sec. 534).........................   673
            Two-year extension of temporary standard for 
              promotion policy objectives for joint officers 
              (sec. 535).........................................   673
            Two-year extension of authority to waive requirement 
              that Reserve Chiefs and National Guard Directors 
              have significant joint duty experience (sec. 536)..   673
        Subtitle E--Military Service Academies...................   673
            Revision to conditions on service of officers as 
              service academy superintendents (sec. 541).........   673
            Academic qualifications of the Dean of the Faculty of 
              United States Air Force Academy (sec. 542).........   674
            Board of Visitors of United States Air Force Academy 
              (sec. 543).........................................   674
            Appropriated funds for service academy athletic and 
              recreational extracurricular programs to be treated 
              in same manner as for military morale, welfare, and 
              recreation programs (sec. 544).....................   675
            Codification of prohibition on imposition of certain 
              charges and fees at the service academies (sec. 
              545)...............................................   675
        Subtitle F--Other Education and Training Matters.........   675
            College First delayed enlistment program (sec. 551)..   675
            Senior Reserve Officer Training Corps and recruiter 
              access at institutions of higher education (sec. 
              552)...............................................   675
            Tuition assistance for officers (sec. 553)...........   676
            Increased maximum period for leave of absence for 
              pursuit of a program of education in a health care 
              profession (sec. 554)..............................   676
            Eligibility of cadet and midshipmen for medical and 
              dental care and disability benefits (sec. 555).....   676
            Transfer of authority to confer degrees upon 
              graduates of the Community College of the Air Force 
              (sec. 556).........................................   677
            Change in titles of leadership positions at the Naval 
              Postgraduate School (sec. 557).....................   677
        Subtitle G--Assistance to Local Educational Agencies for 
          Defense Dependents Educations..........................   677
            Continuation of impact aid assistance on behalf of 
              dependents of certain members despite change in 
              status of member (sec. 558)........................   677
            Assistance to local educational agencies that benefit 
              dependents of members of the Armed Forces and 
              Department of Defense civilian employees (sec. 559)   678
            Impact aid for children with severe disabilities 
              (sec. 560).........................................   678
        Subtitle H--Medals and Decorations and Special Promotions 
          and Appointments.......................................   678
            Award of medal of honor to individual interred in the 
              Tomb of the Unknowns as representative of 
              casualties of a war (sec. 561).....................   678
            Plan for revised criteria and eligibility 
              requirements for award of combat infantryman badge 
              and combat medical badge for service in Korea after 
              July 28, 1953 (sec. 562)...........................   678
            Authority to appoint Brigadier General Charles E. 
              Yeager, United States Air Force (retired), to the 
              grade of major general on the retired list (sec. 
              563)...............................................   679
            Posthumous commission of William Mitchell in the 
              grade of major general in the Army (sec. 564)......   679
        Subtitle I--Military Voting..............................   679
            Federal write-in ballots for absentee military voters 
              located in the United States (sec. 566)............   679
            Repeal of requirement to conduct electronic voting 
              demonstration project for the federal election to 
              be held in November 2004 (sec. 567)................   680
            Reports on operation of Federal Voting Assistance 
              Program and military postal system (sec. 568)......   680
        Subtitle J--Military Justice Matters.....................   681
            Review on how sexual offenses are covered by Uniform 
              Code of Military Justice (sec. 571)................   681
            Waiver of recoupment of time lost for confinement in 
              connection with a trial (sec. 572).................   681
            Processing of forensic evidence collection kits and 
              acquisition of sufficient stocks of such kits (sec. 
              573)...............................................   681
            Authorities of the Judge Advocate General (sec. 574).   682
        Subtitle K--Sexual Assault in the Armed Forces...........   683
            Examination of sexual assault in the Armed Forces by 
              the defense task force established to examine 
              sexual harassment and violence at the military 
              service academies (sec. 576).......................   683
            Department of Defense policy and procedures on 
              prevention and response to sexual assaults 
              involving members of the Armed Forces (sec. 577)...   684
        Subtitle L--Management and Administrative Matters........   684
            Three-year extension of limitation on reductions of 
              personnel of agencies responsible for review and 
              correction of military records (sec. 581)..........   684
            Staffing for Defense Prisoner of War/Missing 
              Personnel Office (DPMO) (sec. 582).................   685
            Permanent ID cards for retiree dependents age 75 and 
              older (sec. 583)...................................   685
            Authority to provide civilian clothing to members 
              traveling in connection with medical evacuation 
              (sec. 584).........................................   685
            Authority to accept donation of frequent traveler 
              miles, credits, and tickets to facilitate rest and 
              recuperation travel of deployed members of the 
              Armed Forces and their families (sec. 585).........   686
            Annual report identifying reasons for discharge from 
              the Armed Forces during preceding fiscal year (sec. 
              586)...............................................   686
            Study of blended wing concept for the Air Force (sec. 
              587)...............................................   686
            Sense of Congress regarding return of members to 
              active-duty service upon rehabilitation from 
              service-related injuries (sec. 588)................   687
        Subtitle M--Other Matters................................   687
            Protection of Armed Forces personnel from retaliatory 
              actions for communications made through the chain 
              of command (sec. 591)..............................   687
            Implementation plan for accession of persons with 
              specialized skills (sec. 592)......................   687
            Enhanced screening methods and process improvements 
              for recruitment of home schooled and National Guard 
              Challenge program GED recipients (sec. 593)........   688
            Redesignation of National Guard Challenge Program as 
              National Guard Youth Challenge Program (sec. 594)..   689
            Reports on certain milestones relating to Department 
              of Defense transformation (sec. 595)...............   689
            Report on issues relating to removal of remains of 
              persons interred in United States military 
              cemeteries overseas (sec. 596).....................   690
            Comptroller General reports on closure of Department 
              of Defense Dependent Elementary and Secondary 
              Schools and commissary stores (sec. 597)...........   690
            Comptroller General report on transition assistance 
              programs for members separating from the Armed 
              Forces (sec. 598)..................................   691
            Study on coordination of job training standards with 
              certification standards for military occupational 
              specialties (sec. 599).............................   691
    Legislative Provisions Not Adopted...........................   691
            Length of service for service chiefs.................   691
            Modification of conditions of eligibility for waiver 
              of joint duty credit requirement for promotion to 
              general or flag officer............................   692
            Management of joint specialty officers...............   692
            Increase in age limit for deferral of mandatory 
              retirement for up to 10 senior general and flag 
              officers...........................................   692
            Increased flexibility for voluntary retirement for 
              military officers..................................   692
            Length of joint duty assignments.....................   693
            Repeal of requirement that no more than 50 percent of 
              active duty general and flag officers be in grades 
              above brigadier general and rear admiral (lower 
              half)..............................................   693
            Revision to terms for assistants to the Chairman of 
              the Joint Chiefs of Staff for National Guard and 
              Reserve matters....................................   693
            Repeal of distribution requirements for Naval Reserve 
              flag officers......................................   693
            Authority for Reserve officers to quality as joint 
              specialty officers.................................   694
            Ribbons to recognize completion of joint professional 
              military education.................................   694
            Increase in number of private-sector civilians who 
              may be enrolled for instruction at National Defense 
              University.........................................   694
            Requirement for completion of phase I joint 
              professional military education before promotion to 
              colonel or Navy captain............................   694
            Reduced blood alcohol content limit for offense of 
              drunken operation of a vehicle, aircraft, or vessel   695
            Prayer at military service academy activities........   695
            Establishment of college financial assistance program 
              for District of Columbia National Guard............   695
            Separate military campaign medals to recognize 
              service in Operation Enduring Freedom and service 
              in Operation Iraqi Freedom.........................   695
            Redesignation of inactive-duty training to encompass 
              operational and other duties performed by Reserves 
              while in inactive duty status......................   695
            Eligibility of all uniformed services personnel for 
              National Defense Service Medal.....................   696
            Repeal of unnecessary duty status distinction for 
              funeral honors duty................................   696
            Conforming amendments to other laws referring to 
              inactive-duty training.............................   696
            Conforming amendments to other laws referring to 
              funeral honors duty................................   696
            Army combat recognition ribbon.......................   696
            Clarification of authority of military legal 
              assistance counsel to provide military legal 
              assistance without regard to licensing requirements   697
            Appearance of veterans service organizations at pre-
              separation counseling provided by the Department of 
              Defense............................................   697
            Limitation on amendment or cancellation of Department 
              of Defense directive relating to reasonable access 
              to military installations for certain personal 
              commercial solicitation............................   697
            Employment preferences for spouses of certain 
              Department of Defense civilian employees subject to 
              relocation agreements..............................   698
            Demonstration program on expanded use of Reserves to 
              perform developmental testing, new equipment 
              training, and related activities...................   698
            Content of pre-separation counseling for personnel 
              separating from active-duty service................   698
Title VI--Compensation and Other Personnel Benefits..............   701
    Legislative Provisions Adopted...............................   701
        Subtitle A--Pay and Allowances...........................   701
            Increase in basic pay for fiscal year 2005 (sec. 601)   701
            Relationship between eligibility to receive 
              supplemental subsistence allowance and eligibility 
              to receive imminent danger pay, family separation 
              allowance, and certain federal assistance (sec. 
              602)...............................................   701
            Authority to provide family separation basic 
              allowance for housing (sec. 603)...................   701
            Geographic basis for housing allowance during short-
              assignment permanent changes of station for 
              education or training (sec. 604)...................   702
            Immediate lump-sum reimbursement for unusual 
              nonrecurring expenses incurred for duty outside the 
              continental United States (sec. 605)...............   702
            Authority for certain members deployed in combat 
              zones to receive limited advances on future basic 
              pay (sec. 606).....................................   702
            Repeal of requirement that members entitled to basic 
              allowance for subsistence pay subsistence charges 
              while hospitalized (sec. 607)......................   702
        Subtitle B--Bonuses and Special and Incentive Pays.......   703
            One-year extension of certain bonus and special pay 
              authorities for Reserve forces (sec. 611)..........   703
            One-year extension of certain bonus and special pay 
              authorities for certain health care professionals 
              (sec. 612).........................................   703
            One-year extension of special pay and bonus 
              authorities for nuclear officers (sec. 613)........   703
            One-year extension for other bonus and special pay 
              authorities (sec. 614).............................   703
            Authority to provide hazardous duty incentive pay to 
              military firefighters (sec. 615)...................   704
            Reduced service obligation for nurses receiving nurse 
              accession bonus (sec. 616).........................   704
            Assignment incentive pay (sec. 617)..................   704
            Modification of active and Reserve component 
              reenlistment and enlistment bonus authorities (sec. 
              618)...............................................   705
            Bonus for certain initial service of officers in the 
              Selected Reserve (sec. 619)........................   705
            Revision of authority to provide foreign language 
              proficiency pay (sec. 620).........................   706
            Eligibility of enlisted members to qualify for 
              critical skills retention bonus while serving on 
              indefinite reenlistment (sec. 621).................   706
            Eligibility of Reserve component members for 
              incentive bonus for conversion to military 
              occupational specialty to ease personnel shortage 
              (sec. 622).........................................   707
            Permanent increase in authorized amounts for imminent 
              danger special pay and family separation allowance 
              (sec. 623).........................................   707
        Subtitle C--Travel and Transportation Allowances.........   707
            Travel and transportation allowances for family 
              members to attend burial ceremony or memorial 
              service of member who dies on duty (sec. 631)......   707
            Transportation of family members incident to serious 
              illness or injury of members of the uniformed 
              services (sec. 632)................................   707
            Reimbursement for certain lodging costs incurred in 
              connection with dependent student travel (sec. 633)   708
        Subtitle D--Retired Pay and Survivor Benefits............   708
            Computation of high-36 month average for Reserve 
              component members retired for disability while on 
              active duty or dying while on active duty (sec. 
              641)...............................................   708
            Repeal of phase-in of concurrent receipt of retired 
              pay and veterans' disability compensation for 
              military retirees with service-connected 
              disabilities rated as 100 percent (sec. 642).......   708
            Death benefits enhancement (sec. 643)................   708
            Phased elimination of two-tier annuity computation 
              for surviving spouses under Survivor Benefit Plan 
              (sec. 644).........................................   709
            One-year open enrollment period for Survivor Benefit 
              Plan commencing October 1, 2005 (sec. 645).........   709
        Subtitle E--Commissary and Nonappropriated Fund 
          Instrumentality Benefits...............................   710
            Consolidation and reorganization of legislative 
              provisions regarding defense commissary system and 
              exchanges and other morale, welfare, and recreation 
              activities (sec. 651)..............................   710
            Consistent State treatment of Department of Defense 
              Nonappropriated Fund Health Benefits Program (sec. 
              652)...............................................   711
        Subtitle F--Other Matters................................   711
            Eligibility of members for reimbursement of expenses 
              incurred for adoption placements made by foreign 
              governments (sec. 661).............................   711
            Clarification of education loans qualifying for 
              education loan repayment program for Reserve 
              component health professions officers (sec. 662)...   711
            Receipt of pay by reservists from civilian employers 
              while on active duty in connection with a 
              contingency operation (sec. 663)...................   711
            Relief for mobilized reservists from certain federal 
              agricultural loan obligations (sec. 664)...........   712
            Survey and analysis of effect of extended and 
              frequent mobilization of reservists for active-duty 
              service on reservist income (sec. 665).............   712
            Study of disability benefits for veterans of service 
              in the Armed Forces with service-connected 
              disabilities (sec. 666)............................   712
    Legislative Provisions Not Adopted...........................   713
            Income replacement payments for Reserves experiencing 
              extended mobilization for active-duty service......   713
            Increase in maximum monthly rate authorized for 
              hardship duty pay..................................   713
            Source of funds for survivor Benefit Plan annuities 
              for Department of Defense beneficiaries over age 62   713
            Cooperation and assistance for qualified scouting 
              organizations serving dependents of members of the 
              Armed Forces and civilian employees overseas.......   714
            Child care for children of members of Armed Forces on 
              active duty for Operation Enduring Freedom or 
              Operation Iraqi Freedom............................   714
Title VII--Health Care Provisions................................   715
        Subtitle A--Enhanced Benefits for Reserves...............   715
            TRICARE coverage for members of Reserve components 
              who commit to continued service in the Selected 
              Reserve after release from active duty (sec. 701)..   715
            Comptroller General report on the cost and 
              feasibility of providing private health insurance 
              stipends for members of the Ready Reserves (sec. 
              702)...............................................   716
            Permanent earlier eligibility date for TRICARE 
              benefits for members of Reserve components and 
              their dependents (sec. 703)........................   716
            Waiver of certain deductibles under TRICARE program 
              for members on active duty for a period of more 
              than 30 days (sec. 704)............................   716
            Authority for payment by United States of additional 
              amounts billed by health care providers to 
              activated Reserves (sec. 705)......................   716
            Permanent extension of transitional health care 
              benefits and addition of requirement for pre-
              separation physical examination (sec. 706).........   716
        Subtitle B--Other Benefits Improvements..................   717
            Opportunity for young child dependent of deceased 
              member to become eligible for enrollment in a 
              TRICARE dental plan (sec. 711).....................   717
            Comptroller General report on provision of health, 
              education, and support services for Exceptional 
              Family Member Program enrollees (sec. 712).........   717
            Continuation of sub-acute care for transition period 
              (sec. 713).........................................   718
            Improvements to pharmacy benefits program (sec. 714).   718
            Professional accreditation of military dentists (sec. 
              715)...............................................   718
            Temporary authority for waiver of collection of 
              payments due for CHAMPUS benefits received by 
              disabled persons unaware of loss of CHAMPUS 
              eligibility (sec. 716).............................   718
            Services of marriage and family therapists (sec. 717)   719
            Chiropractic health care benefits advisory committee 
              (sec. 718).........................................   719
        Subtitle C--Planning, Programming, and Management........   719
            Pilot program for health care delivery (sec. 721)....   719
            Study of provision of travel reimbursement to 
              hospitals for certain military disability retirees 
              (sec. 722).........................................   720
            Study of mental health services (sec. 723)...........   720
            Policy for timely notification of next of kin of 
              members seriously ill or injured in combat zones 
              (sec. 724).........................................   720
            Revised funding methodology for military retiree 
              health care benefits (sec. 725)....................   721
            Grounds for presidential waiver of requirement for 
              informed consent or option to refuse regarding 
              administration of drugs not approved for general 
              use (sec. 726).....................................   721
            TRICARE program regional directors (sec. 727)........   721
        Subtitle D--Medical Readiness Tracking and Health 
          Surveillance...........................................   722
            Medical readiness plan and Joint Medical Readiness 
              Oversight Committee (sec. 731).....................   722
            Medical readiness of Reserves (sec. 732).............   723
            Baseline health data collection program (sec. 733)...   723
            Medical care and tracking and health surveillance in 
              the theater of operations (sec. 734)...............   724
            Declassification of information on exposures to 
              environmental hazards (sec. 735)...................   724
            Report on training on environmental hazards (sec. 
              736)...............................................   724
            Uniform policy for meeting mobilization-related 
              medical care needs at military installations (sec. 
              737)...............................................   725
            Full implementation of Medical Readiness Tracking and 
              Health Surveillance Program and Force Health 
              Protection and Readiness Program (sec. 738)........   725
            Reports and Internet accessibility relating to health 
              matters (sec. 739).................................   725
    Legislative Provisions Not Adopted...........................   726
            Demonstration project on health benefits for Reserves   726
            Continuation of non-TRICARE health benefits plan 
              coverage for certain Reserves called or ordered to 
              active duty and their dependents...................   727
            Exceptional eligibility for TRICARE Prime Remote.....   727
            Addition of certain unremarried former spouses to 
              persons eligible for dental insurance plan of 
              retirees of the uniformed services.................   727
            Vaccine Healthcare Centers Network...................   727
            Use of Department of Defense funds for abortion......   728
            United States Military Cancer Institute..............   728
            Use of civilian experts as consultants...............   728
Title VII--Acquisition Policy, Acquisition Management, and 
  Related Matters................................................   729
    Legislative Provisions Adopted...............................   729
        Subtitle A--Acquisition Policy and Management............   729
            Software-related program costs under major defense 
              acquisition programs (sec. 801)....................   729
            Internal controls for Department of Defense 
              procurements through General Services 
              Administration Client Support Centers (sec. 802)...   729
            Defense commercial communications satellite services 
              procurement process (sec. 803).....................   730
            Contractor performance of acquisition functions 
              closely associated with inherently governmental 
              functions (sec. 804)...............................   730
            Sustainment plans for existing systems while 
              replacement systems are under development (sec. 
              805)...............................................   730
            Applicability of competition exceptions to 
              eligibility of National Guard for financial 
              assistance for performance of additional duties 
              (sec. 806).........................................   730
            Inflation adjustment of acquisition-related dollar 
              thresholds (sec. 807)..............................   731
        Subtitle B--Amendments to General Contracting 
          Authorities, Procedures, and Limitations...............   731
            Rapid acquisition authority to respond to combat 
              emergencies (sec. 811).............................   731
            Defense acquisition workforce improvements (sec. 812)   731
            Period for multiyear task and delivery order 
              contracts (sec. 813)...............................   732
            Funding for contract ceilings for certain multiyear 
              procurement contracts (sec. 814)...................   732
            Increased threshold for senior procurement executive 
              approval of use of procedures other than 
              competitive procedures (sec. 815)..................   732
            Increased threshold for applicability of requirement 
              for defense contractors to provide information on 
              subcontracting authority of contractor personnel to 
              cooperative agreement holders (sec. 816)...........   732
            Extension of authority for use of simplified 
              acquisition procedures (sec. 817)..................   733
            Submission of cost or pricing data on noncommercial 
              modifications of commercial items (sec. 818).......   733
            Delegations of authority to make determinations 
              relating to payment of defense contractors for 
              business restructuring costs (sec. 819)............   733
            Availability of Federal supply schedule supplies and 
              services to United Service Organizations, 
              Incorporated (sec. 820)............................   733
            Addition of landscaping and pest control services to 
              list of designated industry groups participating in 
              the small business competitiveness demonstration 
              program (sec. 821).................................   733
            Increased thresholds under special emergency 
              procurement authority (sec. 822)...................   734
        Subtitle C--United States Defense Industrial Base 
          Provisions.............................................   734
            Defense trade reciprocity (sec. 831).................   734
            Assessment and report on the acquisition of 
              polyacrylonitrile (PAN) carbon fiber from foreign 
              sources (sec. 832).................................   734
        Subtitle D--Extensions of Temporary Program Authorities..   734
            Extension of mentor-protege program (sec. 841).......   734
            Amendment to mentor-protege program (sec. 842).......   735
            Extension of test program for negotiation of 
              comprehensive small business subcontracting plans 
              (sec. 843).........................................   735
            Extension of pilot program on sales of manufactured 
              articles and services of certain Army industrial 
              facilities (sec. 844)..............................   735
        Subtitle E--Other Acquisition Matters....................   735
            Review and demonstration project relating to 
              contractor employees (sec. 851)....................   735
            Inapplicability of certain fiscal laws to settlements 
              under special temporary contract closeout authority 
              (sec. 852).........................................   736
            Contracting with employers of persons with 
              disabilities (sec. 853)............................   736
            Defense procurements made through contracts of other 
              agencies (sec. 854)................................   736
            Requirements relating to source selection for 
              integrated support of aerial refueling aircraft 
              fleet for the Air Force (sec. 855).................   737
    Legislative Provisions Not Adopted...........................   738
            Responsibilities of acquisition executives and chief 
              information officers under the Clinger-Cohen Act...   738
            Revision and extension of authority for advisory 
              panel on review of government procurement laws and 
              regulations........................................   739
            Amendments to domestic source requirements...........   739
            Grant program for defense contractors to implement 
              strategies to avoid outsourcing of jobs............   739
            Preference for domestic freight forwarding services..   739
            Sense of the Senate of effects of cost inflation on 
              the value of the contracts to which a small 
              business contract reservation applies..............   740
            Extension of contract goal for small disadvantaged 
              business and certain institutions of higher 
              education..........................................   740
            Defense acquisition workforce limitations............   740
            Provision of information to Congress to enhance 
              transparency in contracting........................   740
            Requirement to treat sureties in same manner as 
              financing institutions when contractors default....   741
            Provisions relating to creation of jobs in the United 
              States by defense contractors......................   741
            Commission on the future of the national technology 
              and industrial base................................   741
            Waiver authority for domestic source or content 
              requirements.......................................   741
            Consistency with United States obligations under 
              trade agreements...................................   741
            Repeal of certain requirements and limitations 
              relating to the defense industrial base............   741
            Report on contractor performance of security, 
              intelligence, law enforcement, and criminal justice 
              functions in Iraq..................................   742
            Accreditation study of commercial, off-the-shelf 
              processes for evaluating information technology 
              products and services..............................   742
            Energy savings performance contracts.................   742
            Comptroller General analysis of use of transitional 
              benefit corporations in connection with competitive 
              sourcing of performance of Department of Defense 
              activities and functions...........................   742
            Study of effect on defense industrial base of 
              elimination of United States domestic firearms 
              manufacturing base.................................   742
            Determination of whether private air carriers are 
              controlled by United States citizens for purposes 
              of eligibility for government contracts for 
              transportation of passengers or supplies...........   743
            Report on offset requirements under certain contracts   743
Title IX--Department of Defense Organization and Management......   745
    Legislative Provisions Adopted...............................   745
        Subtitle A--Duties and Functions of Department of Defense   745
            Study of roles and authorities of the Director of 
              Defense Research and Engineering (sec. 901)........   745
            Change of membership of specified council (sec. 902).   745
        Subtitle B--Space Activities.............................   745
            Space posture review (sec. 911)......................   745
            Panel on the future of national security space launch 
              (sec. 912).........................................   746
            Operationally responsive national security satellites 
              (sec. 913).........................................   746
            Nondisclosure of certain products of commercial 
              satellite operations (sec. 914)....................   746
        Subtitle C--Intelligence-Related Matters.................   747
            Two-year extension of authority of the Secretary of 
              Defense to engage in commercial activities as 
              security for intelligence collection activities 
              abroad (sec. 921)..................................   747
            Pilot program on cryptologic service training (sec. 
              922)...............................................   747
        Subtitle D--Other Matters................................   747
            Strategic plan for destruction of lethal Chemical 
              Agents and Munitions Stockpile (sec. 931)..........   747
            Secretary of Defense criteria for and guidance on 
              identification and internal transmission of 
              critical information (sec. 932)....................   747
    Legislative Provisions Not Adopted...........................   748
            Change in title of Secretary of the Navy to Secretary 
              of the Navy and Marine Corps.......................   748
            Transfer of Center for the Study of Chinese Military 
              Affairs from the National Defense University to 
              United States-China Economic and Security Review 
              Commission.........................................   748
            Transfer to Secretary of the Army responsibility for 
              Assembled Chemical Weapons Alternatives program....   748
            Modification of obligated service requirements under 
              National Security Education Program................   749
            Responses to congressional inquiries.................   749
            Directors of Small Business Programs.................   750
Title X--General Provisions......................................   751
    Items of Special Interest....................................   751
            Coordination of Department of Defense Homeland 
              Defense/Homeland Security Initiative in Support of 
              First Responders...................................   751
    Legislative Provisions Adopted...............................   751
        Subtitle A--Financial Matters............................   751
            Transfer Authority (sec. 1001).......................   751
            United States contribution to NATO common-funded 
              budgets in fiscal year 2005 (sec. 1002)............   751
            Budget justification documents for operation and 
              maintenance (sec. 1003)............................   752
            Licensing of intellectual property (sec. 1004).......   752
            Repeal of funding restrictions concerning development 
              of medical countermeasures against biological 
              warfare threats (sec. 1005)........................   753
            Report on budgeting for exchange rates for foreign 
              currency fluctuations (sec. 1006)..................   753
            Fiscal year 2004 transfer authority (sec. 1007)......   753
            Clarification of fiscal year 2004 funding level for a 
              National Institute of Standards and Technology 
              account (sec. 1008)................................   753
            Notification of fund transfers from working capital 
              funds (sec. 1009)..................................   754
            Charges for Defense Logistics Information Services 
              materials (sec. 1010)..............................   754
        Subtitle B--Naval Vessels and Shipyards..................   754
            Authority for award of contracts for ship dismantling 
              on net-cost basis (sec. 1011)......................   754
            Use of proceeds from exchange and sale of obsolete 
              Navy service craft and boats (sec. 1012)...........   754
            Transfer of Naval vessels to certain foreign 
              recipients (sec. 1013).............................   754
            Independent study to assess cost-effectiveness of the 
              Navy ship construction program (sec. 1014).........   755
            Limitation on disposal of obsolete naval vessel (sec. 
              1015)..............................................   756
        Subtitle C--Counterdrug Matters..........................   756
            Use of funds for unified counterdrug and 
              counterterrorism campaign in Colombia (sec. 1021)..   756
            Sense of Congress and report regarding counter-drug 
              efforts in Afghanistan (sec. 1022).................   756
        Sutitle D--Matters Relating to Museums and Commemorations   758
            Recognition of the Liberty Memorial Museum, Kansas 
              City, Missouri, as America's National World War I 
              Museum (sec. 1031).................................   758
            Program to Commemorate 60th Anniversary of World War 
              II (sec. 1032).....................................   758
            Annual report on Department of Defense operation and 
              financial support for military museums (sec. 1033).   758
        Subtitle E--Reports [Not Provided for Elsewhere].........   758
            Quarterly detailed accounting for operations 
              conducted as part of the global war on terrorism 
              (sec. 1041)........................................   758
            Report on post-major combat operations phase of 
              Operation Iraqi Freedom (sec. 1042)................   759
            Report on training provided to members of the Armed 
              Forces to prepare for post-conflict operations 
              (sec. 1043)........................................   759
            Report on establishing national centers of excellence 
              for unmanned aerial and ground vehicles (sec. 1044)   759
            Study of continued requirement for two-crew manning 
              for ballistic missile submarines (sec. 1045).......   759
            Report on Department of Defense programs for 
              prepositioning of materiel and equipment (sec. 
              1046)..............................................   760
            Report on al Qaeda activity in the Western Hemisphere 
              (sec. 1047)........................................   760
        Subtitle F--Defense Against Terrorism [and Other Domestic 
          Security Matters]......................................   760
            Acceptance of communications equipment provided by 
              local public safety agencies (sec. 1051)...........   760
            Determination and report on full-time airlift support 
              for homeland defense operations (sec. 1052)........   760
            Survivability of critical systems exposed to chemical 
              or biological contamination (sec. 1053)............   761
        Subtitle G--Personnel Security Matters...................   761
            Use of National Driver Register for personnel 
              security investigations and determinations (sec. 
              1061)..............................................   761
            Standards for disqualification from eligibility for 
              Department of Defense security clearance (sec. 
              1062)..............................................   761
        Subtitle H--Transportation-Related Matters...............   761
            Use of military aircraft to transport mail to and 
              from overseas locations (sec. 1071)................   761
            Reorganization and clarification of certain 
              provisions relating to control and supervision of 
              transportation within the Department of Defense 
              (sec. 1072)........................................   762
            Evaluation of procurement practices relating to 
              transportation of security-sensitive cargo (sec. 
              1073)..............................................   762
        Subtitle I--Other Matters................................   762
            Liability protection for Department of Defense 
              volunteers working in maritime environment (sec. 
              1081)..............................................   762
            Sense of the Congress concerning media coverage of 
              the return to the United States of the remains of 
              deceased members of the Armed Forces from overseas 
              (sec. 1082)........................................   763
            Transfer of historic F3A-1 Brewster Corsair aircraft 
              (sec. 1083)........................................   763
            Technical and clerical amendments (sec. 1084)........   764
            Preservation of search and rescue capabilities of the 
              Federal Government (sec. 1085).....................   764
            Acquisition of aerial firefighting equipment for 
              National Interagency Fire Center (sec. 1086).......   764
            Revision to requirements for recognition of 
              institutions of higher education as Hispanic-
              serving institutions for purposes of certain grants 
              and contracts (sec. 1087)..........................   764
            Military extraterritorial jurisdiction over 
              contractors supporting defense missions overseas 
              (sec. 1088)........................................   765
            Definition of United States for purposes of Federal 
              crime of torture (sec. 1089).......................   765
            Energy savings performance contracts (sec. 1090).....   765
            Sense of Congress and policy concerning persons 
              detained by the United States (sec. 1091-1093).....   765
            Findings and sense of Congress concerning Army 
              Specialist Joseph Darby (sec. 1094)................   767
    Legislative Provisions Not Adopted...........................   767
            Reduction in overall authorization due to inflation 
              savings............................................   767
            Authority to waive claims of the United States when 
              amounts recoverable are less than costs of 
              collection.........................................   767
            Report on amounts remitted and reimbursed during 
              fiscal year 2004 under section 1007 of Public Law 
              108-136............................................   767
            Limitation on leasing of foreign-built vessels.......   768
            Report on availability of potential overland 
              ballistic missile defense test ranges..............   768
            Sense of Congress on space launch ranges.............   769
            Compensation for former prisoners of war.............   769
            Phased implementation of new program for transporting 
              household goods of members of the Armed Forces.....   769
            Repeal of quarterly reporting requirement concerning 
              payments for District of Columbia water and sewer 
              services and establishment of annual report by 
              Treasury...........................................   769
            Assistance for study of feasibility of biennial 
              international air trade show in the United States 
              and for initial implementation.....................   770
            Commission on the long-term implementation of the new 
              strategic posture of the United States.............   770
            Grant of federal charter to Korean War Veterans 
              Association, Incorporated..........................   770
            Assignment of members to assist Bureau of Border 
              Security and Bureau of Citizenship and Immigration 
              Services of the Department of Homeland Security....   770
            Sense of the Senate on American Forces Radio and 
              Television Service.................................   771
            Extension of scope and jurisdiction for current fraud 
              offenses...........................................   771
            Broadcast Decency Enforcement Act of 2004............   771
            Local Law Enforcement Enhancement Act of 2004........   771
Title XI--Civilian Personnel Matters.............................   773
    Items of Special Interest....................................   773
            Fort Meade--work related illnesses...................   773
    Legislative Provisions Adopted...............................   773
            Payment of Federal employee health benefit premiums 
              for mobilized Federal employees (sec. 1101)........   773
            Foreign language proficiency pay (sec. 1102).........   773
            Pay and performance appraisal parity for civilian 
              intelligence personnel (sec. 1103).................   773
            Pay parity for senior executive in defense 
              nonappropriated fund instrumentalities (sec. 1104).   774
            Science, mathematics and research for transformation 
              (SMART) defense scholarship pilot program (sec. 
              1105)..............................................   774
            Report on how to recruit and retain individuals with 
              foreign language skills (sec. 1106)................   774
            Plan on implementation and utilization of flexible 
              personnel management authorities in Department of 
              Defense laboratories (sec. 1107)...................   775
    Legislative Provisions Not Adopted...........................   776
            Accumulation of annual leave by intelligence senior-
              level employees....................................   776
            Prohibition of unauthorized wearing or use of 
              civilian medals or decorations.....................   776
Title XII--Matters Relating to Other Nations.....................   777
    Legislative Provisions Adopted...............................   777
        Subtitle A--Matters Relating to Iraq, Afghanistan, and 
          Global War on Terrorism................................   777
            Commanders' Emergency Response Program (sec. 1201)...   777
            Assistance to Iraq and Afghanistan military and 
              security forces (sec. 1202)........................   777
            Redesignation and modification of authorities 
              relating to Inspector General of the Coalition 
              Provisional Authority (sec. 1203)..................   778
            Presidential report on strategy for the stabilization 
              of Iraq (sec. 1204)................................   778
            Guidance on contractors supporting deployed forces in 
              Iraq (sec. 1205)...................................   779
            Report on contractors supporting deployed forces and 
              reconstruction efforts in Iraq (sec. 1206).........   780
            United Nations Oil-for-Food Program (sec. 1207)......   780
            Support of military operations to combat terrorism 
              (sec. 1208)........................................   781
            Report on al Qaeda activity in the Western Hemisphere 
              (sec. 1209)........................................   781
        Subtitle B--Counterproliferation Matters.................   782
            Defense international counterproliferation programs 
              (sec. 1211)........................................   782
            Policy and sense of Congress on nonproliferation of 
              ballistic missiles (sec. 1212).....................   782
            Sense of Congress on the Global Partnership against 
              the Spread of Weapons of Mass Destruction (sec. 
              1213)..............................................   782
            Report on collaboration to reduce the risks of a 
              launch of Russian nuclear weapons (sec. 1214)......   783
        Subtitle C--Other Matters................................   783
            Authority for humanitarian assistance for the 
              detection and clearance of landmines extended to 
              include other explosive remnants of war (sec. 1221)   783
            Expansion of entities of People's Republic of China 
              subject to certain Presidential authorities when 
              operating in the United States (sec. 1222).........   784
            Assignment of NATO naval personnel to submarine 
              safety programs (sec. 1223)........................   784
            Availability of Warsaw Initiative Funds for new NATO 
              Members (sec. 1224)................................   784
            Bilateral exchanges and trade in defense articles and 
              defense services between the United States and the 
              United Kingdom and Australia (sec. 1225)...........   785
            Study on Missile Defense Cooperation (sec. 1226).....   785
    Legislative Provisions Not Adopted...........................   785
            Documentation of conditions in Iraq under former 
              dictatorial government as part of transition to 
              post-dictatorial government........................   785
            Sense of Congress regarding limitation on use of 
              funds for the reconstruction of Iraq...............   786
            Sense of Congress on destruction of Abu Ghraib prison 
              in Iraq............................................   786
            Report on Global Peace Operations Initiative.........   786
            Procurement sanctions against certain foreign persons 
              that transfer certain defense articles and services 
              to the People's Republic of China..................   786
            Military educational exchanges between senior 
              officers and officials of the United States and 
              Taiwan.............................................   787
            Definitions under Arms Export Control Act............   787
            Exemption from licensing requirements for export of 
              significant military equipment.....................   787
            Cooperative projects with friendly foreign countries.   787
            Control of exports of United States weapons 
              technology to the People's Republic of China.......   787
            Licensing requirement for export of militarily 
              critical technologies..............................   787
            Strengthening international export controls..........   788
            Defense counterproliferation fellowship program......   788
Title XIII--Cooperative Threat Reduction With States of the 
  Former Soviet Union............................................   789
    Legislative Provisions Adopted...............................   789
            Specification of Cooperative Threat Reduction 
              programs and funds (sec. 1301).....................   789
            Funding allocations (sec. 1302)......................   789
            Temporary authority to waive limitation on funding 
              for chemical weapons destruction facility in Russia 
              (sec. 1303)........................................   789
            Inclusion of descriptive summaries in annual 
              Cooperative Threat Reduction reports and budget 
              justification materials (sec. 1304)................   790
Title XIV--Sunken Military Craft.................................   791
    Legislative Provisions Adopted...............................   791
            Sunken military craft (sec. 1401-1408)...............   791
Title XV--Authorization for Increased Costs Due to Operation 
  Iraqi Freedom and Operation Enduring Freedom...................   793
            Overview.............................................   793
            Summary table of authorization.......................   793
    Legislative Provisions Adopted...............................   802
            Purpose (sec. 1501)..................................   802
            Army Procurement (sec. 1502).........................   802
            Navy and Marine Corps Procurement (sec. 1503)........   802
            Defense-wide activities procurement (sec. 1504)......   802
            Operation and maintenance (sec. 1505)................   802
            Defense working capital funds (sec. 1506)............   803
            Iraq Freedom Fund (sec. 1507)........................   803
            Defense health program (sec. 1508)...................   803
            Military personnel (sec. 1509).......................   803
            Treatment as additional authorizations (sec. 1510)...   803
            Transfer authority (sec. 1511).......................   804
    Legislative Provisions Not Adopted...........................   804
            Procurement, Air Force...............................   804
            Designation of Emergency Authorization...............   804
            Three-year increase in active Army strength levels...   804
DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS.................   807
            Overview.............................................   807
            Short title (sec. 2001)..............................   826
Title XXI--Army..................................................   827
            Overview.............................................   827
    Legislative Provisions Adopted...............................   827
            Authorized Army construction and land acquisition 
              projects (sec. 2101)...............................   827
            Family housing (sec. 2102)...........................   827
            Improvements to military family housing units (sec. 
              2103)..............................................   827
            Authorization of appropriations, Army (sec. 2104)....   828
            Modification of authority to carry out certain fiscal 
              year 2004 projects (sec. 2105).....................   828
            Modification of authority to carry out certain fiscal 
              year 2003 projects (sec. 2106).....................   828
Title XXII--Navy.................................................   829
            Overview.............................................   829
    Legislative Provisions Adopted...............................   829
            Authorized Navy construction and land acquisition 
              projects (sec. 2201)...............................   829
            Family housing (sec. 2202)...........................   829
            Improvements to military family housing units (sec. 
              2203)..............................................   829
            Authorization of appropriations, Navy (sec. 2204)....   830
    Legislative Provisions Not Adopted...........................   830
            Modification of authority to carry out a certain 
              fiscal year 2004 project...........................   830
Title XXIII--Air Force...........................................   831
            Overview.............................................   831
    Legislative Provisions Adopted...............................   831
            Authorized Air Force construction and land 
              acquisition projects (sec. 2301)...................   831
            Family housing (sec. 2302)...........................   831
            Improvements to military family housing units (sec. 
              2303)..............................................   831
            Authorization of appropriations, Air Force (sec. 
              2304)..............................................   832
Title XXIV--Defense Agencies.....................................   833
            Overview.............................................   833
    Legislative Provisions Adopted...............................   833
            Authorized defense agencies construction and land 
              acquisition projects (sec. 2401)...................   833
            Improvements to military family housing units (sec. 
              2402)..............................................   833
            Energy conservation projects (sec. 2403).............   833
            Authorization of appropriations, defense agencies 
              (sec. 2404)........................................   834
Title XXV--North Atlantic Treaty Organization Security Investment 
  Program........................................................   835
    Legislative Provisions Adopted...............................   835
            Authorization NATO construction and land acquisition 
              projects (sec. 2501)...............................   835
            Authorization of appropriations, NATO (sec. 2502)....   835
Title XXVI--Guard and Reserve Forces Facilities..................   837
            Overview.............................................   837
    Legislative Provisions Adopted...............................   837
            Authorized Guard and Reserve construction and land 
              acquisition projects (sec. 2601)...................   837
    Item of Special Interest.....................................   837
            Change in title of military construction project 
              previously authorized..............................   837
Title XXVII--Expiration and Extension of Authorizations..........   839
    Legislative Provisions Adopted...............................   839
            Expiration of authorizations and amounts required to 
              be specified by law (sec. 2701)....................   839
            Extension of authorizations of certain fiscal year 
              2002 projects (sec. 2702)..........................   839
            Extension and renewal of authorizations of certain 
              fiscal year 2001 projects (sec. 2703)..............   839
    Legislative Provisions Not Adopted...........................   840
            Effective date.......................................   840
Title XXVIII--General Provisions.................................   841
    Items of Special Interest....................................   841
            Acceleration of environmental clean-up activities 
              related to public lands, West Wendover, Nevada.....   841
            Consideration of proposal for leased facilities 
              supporting Headquarters, United States Southern 
              Command, Miami, Florida............................   841
    Legislative Provisions Adopted...............................   842
        Subtitle A--Military Construction Program and Military 
          Family Housing Changes.................................   842
            Modification of approval and notice requirements for 
              facility repair projects (sec. 2801)...............   842
            Reporting requirements regarding military family 
              housing requirements for general officers and flag 
              officers (sec. 2802)...............................   842
            Congressional notification of deviations from 
              authorized cost variations for military 
              construction projects and military family housing 
              projects (sec. 2803)...............................   843
            Assessment of vulnerability of military installations 
              to terrorist attack and annual report on military 
              construction requirements related to antiterrorism 
              and force protection (sec. 2804)...................   843
            Repeal of limitations on use of alternative authority 
              for acquisition and improvement of military housing 
              (sec. 2805)........................................   843
            Additional reporting requirements relating to 
              alternative authority for acquisition and 
              improvement of military housing (sec. 2806)........   843
            Temporary authority to accelerate design efforts for 
              military construction projects carried out using 
              design-build selection procedures (sec. 2807)......   844
            Notification thresholds and requirements for 
              expenditures or contributions for acquisition of 
              facilities for Reserve components (sec. 2808)......   844
            Authority to exchange Reserve component facilities to 
              acquire replacement facilities (sec. 2809).........   844
            One-year extension of temporary, limited authority to 
              use operation and maintenance funds for 
              construction projects outside the United States 
              (sec. 2810)........................................   846
            Consideration of combination of military medical 
              treatment facilities and health care facilities of 
              Department of Veterans Affairs (sec. 2811).........   846
        Subtitle B--Real Property and Facilities Administration..   846
            Reorganization of existing adminsitrative provisions 
              relating to real property transactions (sec. 2821).   846
            Development of Heritage Center for the National 
              Museum of the United States Army (sec. 2822).......   846
            Elimination of reversionary interests clouding United 
              States title of property used as Navy homeports 
              (sec. 2823)........................................   847
        Subtitle C--Base Closure and Realignment.................   847
            Establishment of specific deadline for submission of 
              revisions to force-structure plan and 
              infrastructure inventory (sec. 2831)...............   847
            Specification of final selection criteria for 2005 
              base closure round (sec. 2832).....................   847
            Repeal of authority of Secretary of Defense to 
              recommend that installations be placed in inactive 
              status (sec. 2833).................................   848
            Voting requirements for Defense Base Closure and 
              Realignment Commission to add to or otherwise 
              expand closure and realignment recommendations made 
              by Secretary of Defense (sec. 2834)................   848
        Subtitle D--Land Conveyances.............................   848
        Part I--Army Conveyances.................................   848
            Land conveyance, Sunflower Army Ammunition Plant, 
              Kansas (sec. 2841).................................   848
            Land exchange, Fort Campbell, Kentucky and Tennessee 
              (sec. 2842)........................................   849
            Land conveyance, Louisiana Army Ammunition Plant, 
              Doyline, Louisiana (sec. 2843).....................   849
            Land conveyance, Fort Leonard Wood, Missouri (sec. 
              2844)..............................................   849
            Transfer of administrative jurisdiction, Defense 
              Supply Center, Columbus, Ohio (sec. 2845)..........   849
            Jurisdiction and utilization of former public domain 
              lands, Umatilla Chemical Depot, Oregon (sec. 2846).   850
            Modification of authority for land conveyance, 
              equipment and storage yard, Charleston, South 
              Carolina (sec. 2847)...............................   850
            Land conveyance, Fort Hood, Texas (sec. 2848)........   850
            Land conveyance, local training area for Browning 
              Army Reserve Center, Utah (sec. 2849)..............   850
            Land conveyance, Army Reserve Center, Hampton, 
              Virginia (sec. 2850)...............................   851
            Land conveyance, Army National Guard Facility, 
              Seattle, Washington (sec. 2851)....................   851
            Modification of land exchange and consolidation, Fort 
              Lewis, Washington (sec. 2852)......................   851
        Part II--Navy Conveyances................................   851
            Land Exchange, former Richmond Naval Air Station, 
              Florida (sec. 2861)................................   851
            Land conveyance, Honolulu, Hawaii (sec. 2862)........   851
            Land conveyance, Navy property, former Fort Sheridan, 
              Illinois (sec. 2863)...............................   852
            Land exchange, Naval Air Station, Patuxent River, 
              Maryland (sec. 2864)...............................   852
            Modification of land acquisition authority, 
              Perquimans County, North Carolina (sec. 2865)......   852
            Land conveyance, Naval Weapons Station, Charleston, 
              South Carolina (sec. 2866).........................   852
            Land conveyance, Navy YMCA building, Portsmouth, 
              Virginia (sec. 2867)...............................   852
        Part III--Air Force Conveyances..........................   853
            Land exchange, Maxwell Air Force Base, Alabama (sec. 
              2871)..............................................   853
            Land conveyance, March Air Force Base, California 
              (sec. 2872)........................................   853
            Land conveyance, former Griffiss Air Force Base, New 
              York (sec. 2873)...................................   853
        Part IV--Other Conveyances...............................   853
            Land exchange, Arlington County, Virginia (sec. 2881)   853
        Subtitle E--Other Matters................................   854
            One-year resumption of Department of Defense 
              Laboratory Revitalization Demonstration Program 
              (sec. 2891)........................................   854
            Designation of Airmen Leadership School at Luke Air 
              Force Base, Arizona, in honor of John J. Rhodes, a 
              former minority leader of the House of 
              Representatives (sec. 2892)........................   854
            Settlement of claim of Oakland Base Reuse Authority 
              and Redevelopment Agency (sec. 2893)...............   854
            Report on establishment of mobilization station at 
              Camp Ripley National Guard Training Center, Little 
              Falls, Minnesota (sec. 2894).......................   854
            Report on feasibility of establishment of veterans 
              memorial at Marine Corps Air Station, El Toro, 
              California (sec. 2895).............................   854
            Sense of Congress regarding effect of military 
              housing policies and force structure basing changes 
              on local education agencies (sec. 2896)............   855
            Sense of Congress and study regarding memorial 
              honoring non-United States citizens killed in the 
              line of duty while serving in the United States 
              Armed Forces (sec. 2897)...........................   855
    Legislative Provisions Not Adopted...........................   856
            Increase in thresholds for unspecified minor military 
              construction projects..............................   856
            Increase in certain thresholds for carrying out 
              unspecified minor military construction projects...   856
            Increase in certain thresholds for reporting real 
              property transactions..............................   856
            Treatment of money rentals from golf course at Rock 
              Island Arsenal, Illnois............................   856
            Number of contracts authorized department-wide under 
              demonstration program on reduction in long-term 
              facility maintenance costs.........................   857
            Repeal of Commission on Review of Overseas Military 
              Facility Structure of the United States............   857
            Two-year postponement of 2005 base closure and 
              realignment round and submission of reports 
              regarding future infrastructure requirements for 
              the Armed Forces...................................   857
            Adherence to certain authorities on preservation of 
              military depot capabilities during any subsequent 
              round of base closures and realignments............   857
            Transfer of jurisdiction, Nebraska Avenue Naval 
              Complex, District of Columbia......................   858
Title XXXI--Department of Energy National Security Programs......   858
            Overview.............................................   858
    Legislative Provisions Adopted...............................   878
        Subtitle A--National Security Programs Authorizations....   878
            National Nuclear Security Administration (sec. 3101).   878
            Defense environmental management (sec. 3102).........   879
            Other defense activities (sec. 3013).................   880
            Defense nuclear waste disposal (sec. 3104)...........   881
        Subtitle B--Program Authorizations, Restrictions, and 
          Limitations............................................   881
            Report on requirements for Modern Pit Facility (sec. 
              3111)..............................................   881
            Two-year extension of authority for appointment of 
              certain scientific, engineering, and technical 
              personnel (sec. 3112)..............................   881
            Limited authority to carry out new projects under 
              Facilities and Infrastructure Recapitalization 
              Program after project selection deadline (sec. 
              3113)..............................................   882
            Modification of milestone and report requirements for 
              National Ignition Facility (sec. 3114).............   882
            Modification of submittal date of annual plan for 
              stewardship, management, and certification of 
              warheads in the nuclear weapons stockpile (sec. 
              3115)..............................................   882
            Defense site acceleration completion (sec. 3116).....   883
            Treatment of waste material (sec. 3117)..............   885
            Local stakeholder organizations for 2006 closure 
              sites (sec. 3118)..................................   886
            Report to Congress on Advanced Nuclear Weapons 
              Concepts Initiative (sec. 3119)....................   886
        Subtitle C--Proliferation Matters........................   886
            Modification of authority to use International 
              Nuclear Materials Protection and Cooperation 
              Program funds outside the former Soviet Union (sec. 
              3131)..............................................   886
            Acceleration of removal or security of fissile 
              materials, radiological materials, and related 
              equipment at vulnerable sites worldwide (sec. 3132)   886
            Silk Road Initiative (sec. 3133).....................   887
            Nuclear Nonproliferation Fellowships for scientists 
              employed by United States and Russian Federation 
              (sec. 3134)........................................   887
            Utilization of international contributions to the 
              Elimination of Weapons Grade Plutonium Production 
              Program (sec. 3135)................................   888
        Subtitle D--Other Matters................................   888
            Indemnification of Department of Energy contractors 
              (sec. 3141)........................................   888
            Report on maintenance of retirement benefits for 
              certain workers at 2006 closure sites after closure 
              of sites (sec. 3142)...............................   888
            Report on efforts of National Nuclear Security 
              Administration to understand plutonium aging (sec. 
              3143)..............................................   889
            Support for public education in the vicinity of Los 
              Alamos National Laboratory, New Mexico (sec. 3144).   889
            Review of Waste Isolation Pilot Plant, New Mexico, 
              pursuant to competitive contract (sec. 3145).......   889
            National Academy of Sciences study on management by 
              Department of Energy of certain radioactive waste 
              streams (sec. 3146)................................   889
            Compensation of Pajarito Plateau, New Mexico, 
              homesteaders for acquisition of lands for Manhattan 
              Project in World War II (sec. 3147)................   890
            Modification of requirement relating to conveyances 
              and transfer of certain land at Los Alamos National 
              Laboratory, New Mexico (sec. 3148).................   891
        Subtitle E--Energy Employees Occupational Illness 
          Compensation Program...................................   891
            Improvements to the Energy Employees Occupational 
              Illness Compensation Program Act (sec. 3161-3170)..   891
            Radiation Exposure Compensation Act..................   894
            Office of the Ombudsman..............................   894
            Administrative Provisions............................   894
            Special Exposure Cohort..............................   895
            Residual Radiation Exposure..........................   896
    Legislative Provisions Not Adopted...........................   897
            Annual report on expenditures for safeguards and 
              security...........................................   897
            Authority to consolidate counterintelligence offices 
              of Department of Energy and National Nuclear 
              Security Administration within the National Nuclear 
              Security Administration............................   897
            Transfers and reprogrammings of National Nuclear 
              Security Administration funds......................   897
            Additional amount for defense site acceleration 
              completion.........................................   898
            Improvements to Energy Employees Occupational Illness 
              Compensation Program...............................   898
Title XXXII--Defense Nuclear Facilities Safety Board.............   901
    Legislative Provisions Adopted...............................   901
            Defense Nuclear Facilities Safety Board (sec. 3201)..   901
Title XXXIII--National Defense Stockpile.........................   903
    Legislative Provisions Adopted...............................   903
            Authorized Uses of National Defense Stockpile Funds 
              (sec. 3301)........................................   903
            Revision of earlier authority to dispose of certain 
              materials in National Defense Stockpile (sec. 3302)   903
            Disposal of ferromanganese (sec. 3303)...............   903
            Prohibition on storage of mercury at certain 
              facilities (sec. 3304).............................   904
Title XXXIV--Naval Petroleum Reserves............................   905
    Legislative Provisions Adopted...............................   905
            Authorization of appropriations (sec. 3401)..........   905
Title XXXV--Maritime Administration..............................   907
    Legislative Provisions Adopted...............................   907
            Authorization of appropriations for Maritime 
              Administration (sec. 3501).........................   907
            Extension of authority to provide war risk insurance 
              for Merchant Marine vessels (sec. 3502)............   907
            Modification of priority afforded applications for 
              national defense tank vessel construction 
              assistance (sec. 3503).............................   907
Title XXXVI--Assistance to Firefighters..........................   909
    Legislative Provisions Adopted...............................   909
            Assistance to Firefighters (secs. 3601-3603).........   909


108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     108-767

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



 
  RONALD W. REAGAN NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 
                                  2005

                                _______
                                

                October 8, 2004.--Ordered to be printed

                                _______
                                

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

                           CONFERENCE REPORT

                        [To accompany H.R. 4200]

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

SECTION 1. SHORT TITLE.

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

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

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

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

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

                        Subtitle B--Army Programs

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

                        Subtitle C--Navy Programs

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

                     Subtitle D--Air Force Programs

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

                        Subtitle E--Other Matters

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

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

               Subtitle A--Authorization of Appropriations

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

     Subtitle B--Program Requirements, Restrictions, and Limitations

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

                  Subtitle C--Missile Defense Programs

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

                        Subtitle D--Other Matters

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

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

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

                  Subtitle B--Environmental Provisions

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

                 Subtitle C--Workplace and Depot Issues

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

                   Subtitle D--Information Technology

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

              Subtitle E--Extensions of Program Authorities

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

                        Subtitle F--Other Matters

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

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

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

                       Subtitle B--Reserve Forces

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

              Subtitle C--Authorizations of Appropriations

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

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

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

              Subtitle B--Reserve Component Policy Matters

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

             Subtitle C--Reserve Component Personnel Matters

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

Subtitle D--Joint Officer Management and Professional Military Education

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

                 Subtitle E--Military Service Academies

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

            Subtitle F--Other Education and Training Matters

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

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

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

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

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

                       Subtitle I--Military Voting

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

                  Subtitle J--Military Justice Matters

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

             Subtitle K--Sexual Assault in the Armed Forces

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

            Subtitle L--Management and Administrative Matters

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

                        Subtitle M--Other Matters

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

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

            Subtitle C--Travel and Transportation Allowances

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

              Subtitle D--Retired Pay and Survivor Benefits

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

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

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

                        Subtitle F--Other Matters

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

                    TITLE VII--HEALTH CARE PROVISIONS

               Subtitle A--Enhanced Benefits for Reserves

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

                 Subtitle B--Other Benefits Improvements

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

            Subtitle C--Planning, Programming, and Management

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

     Subtitle D--Medical Readiness Tracking and Health Surveillance

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

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

              Subtitle A--Acquisition Policy and Management

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

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

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

      Subtitle C--United States Defense Industrial Base Provisions

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

         Subtitle D--Extensions of Temporary Program Authorities

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

                  Subtitle E--Other Acquisition Matters

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

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

        Subtitle A--Duties and Functions of Department of Defense

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

                      Subtitle B--Space Activities

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

                Subtitle C--Intelligence-Related Matters

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

                        Subtitle D--Other Matters

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

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. United States contribution to NATO common-funded budgets in 
          fiscal year 2005.
Sec. 1003. Budget justification documents for operation and maintenance.
Sec. 1004. Licensing of intellectual property.
Sec. 1005. Repeal of funding restrictions concerning development of 
          medical countermeasures against biological warfare threats.
Sec. 1006. Report on budgeting for exchange rates for foreign currency 
          fluctuations.
Sec. 1007. Fiscal year 2004 transfer authority.
Sec. 1008. Clarification of fiscal year 2004 funding level for a 
          National Institute of Standards and Technology account.
Sec. 1009. Notification of fund transfers from working-capital funds.
Sec. 1010. Charges for Defense Logistics Information Services materials.

                 Subtitle B--Naval Vessels and Shipyards

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

                     Subtitle C--Counterdrug Matters

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

       Subtitle D--Matters Relating to Museums and Commemorations

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

                           Subtitle E--Reports

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

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

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

                 Subtitle G--Personnel Security Matters

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

               Subtitle H--Transportation-Related Matters

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

                        Subtitle I--Other Matters

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

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

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

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

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

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

                Subtitle B--Counterproliferation Matters

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

                        Subtitle C--Other Matters

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

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

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

                    TITLE XIV--SUNKEN MILITARY CRAFT

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

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

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

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

                             TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Modification of authority to carry out certain fiscal year 
          2004 projects.
Sec. 2106. Modification of authority to carry out certain fiscal year 
          2003 projects.

                            TITLE XXII--NAVY

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

                         TITLE XXIII--AIR FORCE

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

                      TITLE XXIV--DEFENSE AGENCIES

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

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                 PROGRAM

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

             TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

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

         TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

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

                    TITLE XXVIII--GENERAL PROVISIONS

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

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

         Subtitle B--Real Property and Facilities Administration

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

                Subtitle C--Base Closure and Realignment

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

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

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

                        Part II--Navy Conveyances

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

                     Part III--Air Force Conveyances

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

                       Part IV--Other Conveyances

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

                        Subtitle E--Other Matters

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

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

       TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

          Subtitle A--National Security Programs Authorizations

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

    Subtitle B--Program Authorizations, Restrictions, and Limitations

Sec. 3111. Report on requirements for Modern Pit Facility.
Sec. 3112. Two-year extension of authority for appointment of certain 
          scientific, engineering, and technical personnel.
Sec. 3113. Limited authority to carry out new projects under Facilities 
          and Infrastructure Recapitalization Program after project 
          selection deadline.
Sec. 3114. Modification of milestone and report requirements for 
          National Ignition Facility.
Sec. 3115. Modification of submittal date of annual plan for 
          stewardship, management, and certification of warheads in the 
          nuclear weapons stockpile.
Sec. 3116. Defense site acceleration completion.
Sec. 3117. Treatment of waste material.
Sec. 3118. Local stakeholder organizations for 2006 closure sites.
Sec. 3119. Report to Congress on Advanced Nuclear Weapons Concepts 
          Initiative.

                    Subtitle C--Proliferation Matters

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

                        Subtitle D--Other Matters

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

 Subtitle E--Energy Employees Occupational Illness Compensation Program

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

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

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

                  TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

                   TITLE XXXV--MARITIME ADMINISTRATION

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

                 TITLE XXXVI--ASSISTANCE TO FIREFIGHTERS

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

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES.

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

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

                        Subtitle B--Army Programs

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

                        Subtitle C--Navy Programs

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

                     Subtitle D--Air Force Programs

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

                        Subtitle E--Other Matters

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

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

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

SEC. 102. NAVY AND MARINE CORPS.

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

SEC. 103. AIR FORCE.

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

SEC. 104. DEFENSE-WIDE ACTIVITIES.

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

                       Subtitle B--Army Programs

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

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

SEC. 112. LIGHT UTILITY HELICOPTER PROGRAM.

    (a) Limitation.--None of the funds authorized to be 
appropriated under section 101(1) for the procurement of light 
utility helicopters may be obligated or expended until 30 days 
after the date on which the Secretary of the Army submits to 
the congressional defense committees a report that contains--
            (1) the Secretary's certification that all required 
        documentation for the acquisition of light utility 
        helicopters has been completed and approved; and
            (2) an Army aviation modernization plan described 
        in subsection (b).
    (b) Army Aviation Modernization Plan.--The Army aviation 
modernization plan referred to in subsection (a)(2) is an 
updated modernization plan for Army aviation that contains, at 
a minimum, the following:
            (1) The analysis on which the plan is based.
            (2) A discussion of the Secretary's decision to 
        terminate the Comanche helicopter program and to 
        restructure the aviation force of the Army.
            (3) The actions taken or to be taken to accelerate 
        the procurement and development of aircraft 
        survivability equipment for Army aircraft, together 
        with a detailed list of aircraft survivability 
        equipment that specifies such equipment by platform and 
        by the related programmatic funding for procurement.
            (4) A discussion of the conversion of Apache 
        helicopters to block III configuration, including (A) 
        the rationale for converting only 501 Apache 
        helicopters to that configuration, and (B) the costs 
        associated with a conversion of all Apache helicopters 
        to the block III configuration.
            (5) A discussion of the procurement of light armed 
        reconnaissance helicopters, including (A) the rationale 
        for the requirement for light armed reconnaissance 
        helicopters, and (B) a discussion of the costs 
        associated with upgrading the light armed 
        reconnaissance helicopter to meet Army requirements.
            (6) The rationale for the Army's requirement for 
        light utility helicopters, together with a summary and 
        copy of the analysis of the alternative means for 
        meeting such requirement that the Secretary considered 
        in the determination to procure light utility 
        helicopters, including, at a minimum, the analysis of 
        the alternative of using light armed reconnaissance 
        helicopters and UH-60 Black Hawk helicopters instead of 
        light utility helicopters to meet such requirement.
            (7) The rationale for the procurement of cargo 
        fixed-wing aircraft.
            (8) The rationale for the initiation of a joint 
        multi-role helicopter program.
            (9) A description of the operational employment of 
        the Army's restructured aviation force.

                       Subtitle C--Navy Programs

SEC. 121. DDG-51 MODERNIZATION PROGRAM.

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

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

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

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

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

                     Subtitle D--Air Force Programs

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

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

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

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

SEC. 133. AERIAL REFUELING AIRCRAFT ACQUISITION PROGRAM.

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

                       Subtitle E--Other Matters

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

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

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

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

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

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

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

               Subtitle A--Authorization of Appropriations

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

     Subtitle B--Program Requirements, Restrictions, and Limitations

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

                  Subtitle C--Missile Defense Programs

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

                        Subtitle D--Other Matters

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

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

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

SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY.

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

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. FUTURE COMBAT SYSTEMS PROGRAM STRATEGY.

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

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

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

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

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

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

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

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

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

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

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

SEC. 215. GLOBAL POSITIONING SYSTEM III SATELLITE.

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

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

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

SEC. 217. JOINT UNMANNED COMBAT AIR SYSTEMS PROGRAM.

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

                  Subtitle C--Missile Defense Programs

SEC. 231. FIELDING OF BALLISTIC MISSILE DEFENSE CAPABILITIES.

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

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

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

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

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

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

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

                       Subtitle D--Other Matters

SEC. 241. ANNUAL REPORT ON SUBMARINE TECHNOLOGY INSERTION.

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

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

    (a) Findings.--Congress makes the following findings:
            (1) The budget for fiscal year 2005, as submitted 
        to Congress by the President, provides $10,300,000 for 
        the Advanced Shipbuilding Enterprise under the National 
        Shipbuilding Research Program of the Navy.
            (2) The Advanced Shipbuilding Enterprise is an 
        innovative program to encourage greater efficiency in 
        the national technology and industrial base.
            (3) The leaders of the United States shipbuilding 
        industry have embraced the Advanced Shipbuilding 
        Enterprise as a method for exploring and collaborating 
        on innovation in shipbuilding and ship repair that 
        collectively benefits all components of the industry.
    (b) Sense of Congress.--It is the sense of Congress--
            (1) that Congress--
                    (A) strongly supports the innovative 
                Advanced Shipbuilding Enterprise under the 
                National Shipbuilding Research Program as an 
                enterprise between the Navy and industry that 
                has yielded new processes and techniques that 
                reduce the cost of building and repairing ships 
                in the United States; and
                    (B) is concerned that the future-years 
                defense program of the Department of Defense 
                that was submitted to Congress for fiscal year 
                2005 does not reflect any funding for the 
                Advanced Shipbuilding Enterprise after fiscal 
                year 2005; and
            (2) that the Secretary of Defense should continue 
        to provide in the future-years defense program for 
        funding the Advanced Shipbuilding Enterprise at a 
        sustaining level in order to support additional 
        research to further reduce the cost of designing, 
        building, and repairing ships.

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

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

                  Subtitle B--Environmental Provisions

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

                 Subtitle C--Workplace and Depot Issues

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

                   Subtitle D--Information Technology

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

              Subtitle E--Extensions of Program Authorities

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

                        Subtitle F--Other Matters

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

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

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

SEC. 302. WORKING CAPITAL FUNDS.

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

SEC. 303. OTHER DEPARTMENT OF DEFENSE PROGRAMS.

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

                  Subtitle B--Environmental Provisions

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                 Subtitle C--Workplace and Depot Issues

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

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

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

    (a) Repeal.--Section 2472 of title 10, United States Code, 
is amended--
            (1) by striking ``(a) Prohibition on Management by 
        End Strength.--''; and
            (2) by striking subsection (b).
    (b) Clerical Amendments.--(1) The heading of such section 
is amended to read as follows:

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

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

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

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

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

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

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

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

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

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

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

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

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

SEC. 328. COMPETITIVE SOURCING REPORTING REQUIREMENT.

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

                   Subtitle D--Information Technology

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

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

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

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

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

    ``(a) Conditions for Obligation of Funds for Defense 
Business System Modernization.--Effective October 1, 2005, 
funds appropriated to the Department of Defense may not be 
obligated for a defense business system modernization that will 
have a total cost in excess of $1,000,000 unless--
            ``(1) the approval authority designated for the 
        defense business system certifies to the Defense 
        Business Systems Management Committee established by 
        section 186 of this title that the defense business 
        system modernization--
                    ``(A) is in compliance with the enterprise 
                architecture developed under subsection (c);
                    ``(B) is necessary to achieve a critical 
                national security capability or address a 
                critical requirement in an area such as safety 
                or security; or
                    ``(C) is necessary to prevent a significant 
                adverse effect on a project that is needed to 
                achieve an essential capability, taking into 
                consideration the alternative solutions for 
                preventing such adverse effect; and
            ``(2) the certification by the approval authority 
        is approved by the Defense Business Systems Management 
        Committee.
    ``(b) Obligation of Funds in Violation of Requirements.--
The obligation of Department of Defense funds for a business 
system modernization in excess of the amount specified in 
subsection (a) that has not been certified and approved in 
accordance with such subsection is a violation of section 
1341(a)(1)(A) of title 31.
    ``(c) Enterprise Architecture for Defense Business 
Systems.--Not later than September 30, 2005, the Secretary of 
Defense, acting through the Defense Business Systems Management 
Committee, shall develop--
            ``(1) an enterprise architecture to cover all 
        defense business systems, and the functions and 
        activities supported by defense business systems, which 
        shall be sufficiently defined to effectively guide, 
        constrain, and permit implementation of interoperable 
        defense business system solutions and consistent with 
        the policies and procedures established by the Director 
        of the Office of Management and Budget, and
            ``(2) a transition plan for implementing the 
        enterprise architecture for defense business systems.
    ``(d) Composition of Enterprise Architecture.--The defense 
business enterprise architecture developed under subsection 
(c)(1) shall include the following:
            ``(1) An information infrastructure that, at a 
        minimum, would enable the Department of Defense to--
                    ``(A) comply with all Federal accounting, 
                financial management, and reporting 
                requirements;
                    ``(B) routinely produce timely, accurate, 
                and reliable financial information for 
                management purposes;
                    ``(C) integrate budget, accounting, and 
                program information and systems; and
                    ``(D) provide for the systematic 
                measurement of performance, including the 
                ability to produce timely, relevant, and 
                reliable cost information.
            ``(2) Policies, procedures, data standards, and 
        system interface requirements that are to apply 
        uniformly throughout the Department of Defense.
    ``(e) Composition of Transition Plan.--(1) The transition 
plan developed under subsection (c)(2) shall include the 
following:
            ``(A) The acquisition strategy for new systems that 
        are expected to be needed to complete the defense 
        business enterprise architecture.
            ``(B) A listing of the defense business systems as 
        of December 2, 2002 (known as `legacy systems'), that 
        will not be part of the objective defense business 
        enterprise architecture, together with the schedule for 
        terminating those legacy systems that provides for 
        reducing the use of those legacy systems in phases.
            ``(C) A listing of the legacy systems (referred to 
        in subparagraph (B)) that will be a part of the 
        objective defense business system, together with a 
        strategy for making the modifications to those systems 
        that will be needed to ensure that such systems comply 
        with the defense business enterprise architecture.
    ``(2) Each of the strategies under paragraph (1) shall 
include specific time-phased milestones, performance metrics, 
and a statement of the financial and nonfinancial resource 
needs.
    ``(f) Approval Authorities and Accountability for Defense 
Business Systems.--The Secretary of Defense shall delegate 
responsibility for review, approval, and oversight of the 
planning, design, acquisition, deployment, operation, 
maintenance, and modernization of defense business systems as 
follows:
            ``(1) The Under Secretary of Defense for 
        Acquisition, Technology and Logistics shall be 
        responsible and accountable for any defense business 
        system the primary purpose of which is to support 
        acquisition activities, logistics activities, or 
        installations and environment activities of the 
        Department of Defense.
            ``(2) The Under Secretary of Defense (Comptroller) 
        shall be responsible and accountable for any defense 
        business system the primary purpose of which is to 
        support financial management activities or strategic 
        planning and budgeting activities of the Department of 
        Defense.
            ``(3) The Under Secretary of Defense for Personnel 
        and Readiness shall be responsible and accountable for 
        any defense business system the primary purpose of 
        which is to support human resource management 
        activities of the Department of Defense.
            ``(4) The Assistant Secretary of Defense for 
        Networks and Information Integration and the Chief 
        Information Officer of the Department of Defense shall 
        be responsible and accountable for any defense business 
        system the primary purpose of which is to support 
        information technology infrastructure or information 
        assurance activities of the Department of Defense.
            ``(5) The Deputy Secretary of Defense or an Under 
        Secretary of Defense, as designated by the Secretary of 
        Defense, shall be responsible for any defense business 
        system the primary purpose of which is to support any 
        activity of the Department of Defense not covered by 
        paragraphs (1) through (4).
    ``(g) Defense Business System Investment Review.--(1) The 
Secretary of Defense shall require each approval authority 
designated under subsection (f) to establish, not later than 
March 15, 2005, an investment review process, consistent with 
section 11312 of title 40, to review the planning, design, 
acquisition, development, deployment, operation, maintenance, 
modernization, and project cost benefits and risks of all 
defense business systems for which the approval authority is 
responsible. The investment review process so established shall 
specifically address the responsibilities of approval 
authorities under subsection (a).
    ``(2) The review of defense business systems under the 
investment review process shall include the following:
            ``(A) Review and approval by an investment review 
        board of each defense business system as an investment 
        before the obligation of funds on the system.
            ``(B) Periodic review, but not less than annually, 
        of every defense business system investment.
            ``(C) Representation on each investment review 
        board by appropriate officials from among the armed 
        forces, combatant commands, the Joint Chiefs of Staff, 
        and Defense Agencies.
            ``(D) Use of threshold criteria to ensure an 
        appropriate level of review within the Department of 
        Defense of, and accountability for, defense business 
        system investments depending on scope, complexity, and 
        cost.
            ``(E) Use of procedures for making certifications 
        in accordance with the requirements of subsection (a).
            ``(F) Use of procedures for ensuring consistency 
        with the guidance issued by the Secretary of Defense 
        and the Defense Business Systems Management Committee, 
        as required by section 186(c) of this title, and 
        incorporation of common decision criteria, including 
        standards, requirements, and priorities that result in 
        the integration of defense business systems.
    ``(h) Budget Information.--In the materials that the 
Secretary submits to Congress in support of the budget 
submitted to Congress under section 1105 of title 31 for fiscal 
year 2006 and fiscal years thereafter, the Secretary of Defense 
shall include the following information:
            ``(1) Identification of each defense business 
        system for which funding is proposed in that budget.
            ``(2) Identification of all funds, by 
        appropriation, proposed in that budget for each such 
        system, including--
                    ``(A) funds for current services (to 
                operate and maintain the system); and
                    ``(B) funds for business systems 
                modernization, identified for each specific 
                appropriation.
            ``(3) For each such system, identification of the 
        official to whom authority for such system is delegated 
        under subsection (f).
            ``(4) For each such system, a description of each 
        certification made under subsection (d) with regard to 
        such system.
    ``(i) Congressional Reports.--Not later than March 15 of 
each year from 2005 through 2009, the Secretary of Defense 
shall submit to the congressional defense committees a report 
on Department of Defense compliance with the requirements of 
this section. The first report shall define plans and 
commitments for meeting the requirements of subsection (a), 
including specific milestones and performance measures. 
Subsequent reports shall--
            ``(1) describe actions taken and planned for 
        meeting the requirements of subsection (a), including--
                    ``(A) specific milestones and actual 
                performance against specified performance 
                measures, and any revision of such milestones 
                and performance measures; and
                    ``(B) specific actions on the defense 
                business system modernizations submitted for 
                certification under such subsection;
            ``(2) identify the number of defense business 
        system modernizations so certified;
            ``(3) identify any defense business system 
        modernization with an obligation in excess of 
        $1,000,000 during the preceding fiscal year that was 
        not certified under subsection (a), and the reasons for 
        the waiver; and
            ``(4) discuss specific improvements in business 
        operations and cost savings resulting from successful 
        defense business systems modernization efforts.
    ``(j) Definitions.--In this section:
            ``(1) The term `approval authority', with respect 
        to a defense business system, means the Department of 
        Defense official responsible for the defense business 
        system, as designated by subsection (f).
            ``(2) The term `defense business system' means an 
        information system, other than a national security 
        system, operated by, for, or on behalf of the 
        Department of Defense, including financial systems, 
        mixed systems, financial data feeder systems, and 
        information technology and information assurance 
        infrastructure, used to support business activities, 
        such as acquisition, financial management, logistics, 
        strategic planning and budgeting, installations and 
        environment, and human resource management.
            ``(3) The term `defense business system 
        modernization' means--
                    ``(A) the acquisition or development of a 
                new defense business system; or
                    ``(B) any significant modification or 
                enhancement of an existing defense business 
                system (other than necessary to maintain 
                current services).
            ``(4) The term `enterprise architecture' has the 
        meaning given that term in section 3601(4) of title 44.
            ``(5) The terms `information system' and 
        `information technology' have the meanings given those 
        terms in section 11101 of title 40.
            ``(6) The term `national security system' has the 
        meaning given that term in section 2315 of this 
        title.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting before the item relating to section 
2223 the following new item:

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

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

``Sec. 186. Defense Business System Management Committee

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

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

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

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

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

             Subtitle E--Extensions of Program Authorities

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

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

SEC. 342. EXTENSION OF ARSENAL SUPPORT PROGRAM INITIATIVE.

    (a) Duration of Program.--Subsection (a) of section 343 of 
the Floyd D. Spence National Defense Authorization Act for 
Fiscal Year 2001 (as enacted into law by Public Law 106-398; 10 
U.S.C. 4551 note) is amended by striking ``2004'' and inserting 
``2008''.
    (b) Additional Report Required.--Subsection (g) of such 
section is amended--
            (1) in paragraph (1), by striking ``2004'' and 
        inserting ``2008''; and
            (2) in paragraph (2), by striking ``2003'' and 
        inserting ``2007''.

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

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

                       Subtitle F--Other Matters

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

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

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

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

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

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

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

    ``(a) Cooperative Arrangements Authorized.--A working-
capital funded Army industrial facility may enter into a 
contract or other cooperative arrangement with a non-Army 
entity to carry out with the non-Army entity a military or 
commercial project described in subsection (b), subject to the 
conditions prescribed in subsection (c).
    ``(b) Authorized Activities.--A cooperative arrangement 
entered into by an Army industrial facility under subsection 
(a) may provide for any of the following activities:
            ``(1) The sale of articles manufactured by the 
        facility or services performed by the facility to 
        persons outside the Department of the Army.
            ``(2) The performance of work by a non-Army entity 
        at the facility.
            ``(3) The performance of work by the facility for a 
        non-Army entity.
            ``(4) The sharing of work by the facility and a 
        non-Army entity.
            ``(5) The leasing, or use under a facilities use 
        contract or otherwise, of the facility (including 
        excess capacity) or equipment (including excess 
        equipment) of the facility by a non-Army entity.
            ``(6) The preparation and submission of joint 
        offers by the facility and a non-Army entity for 
        competitive procurements entered into with Federal 
        agency.
    ``(c) Conditions.--An activity authorized by subsection (b) 
may be carried out at an Army industrial facility under a 
cooperative arrangement entered into under subsection (a) only 
under the following conditions:
            ``(1) In the case of an article to be manufactured 
        or services to be performed by the facility, the 
        articles can be substantially manufactured, or the 
        services can be substantially performed, by the 
        facility without subcontracting for more than 
        incidental performance.
            ``(2) The activity does not interfere with 
        performance of--
                    ``(A) work by the facility for the 
                Department of Defense; or
                    ``(B) a military mission of the facility.
            ``(3) The activity meets one of the following 
        objectives:
                    ``(A) Maximized utilization of the capacity 
                of the facility.
                    ``(B) Reduction or elimination of the cost 
                of ownership of the facility.
                    ``(C) Reduction in the cost of 
                manufacturing or maintaining Department of 
                Defense products at the facility.
                    ``(D) Preservation of skills or equipment 
                related to a core competency of the facility.
            ``(4) The non-Army entity agrees to hold harmless 
        and indemnify the United States from any liability or 
        claim for damages or injury to any person or property 
        arising out of the activity, including any damages or 
        injury arising out of a decision by the Secretary of 
        the Army or the Secretary of Defense to suspend or 
        terminate an activity, or any portion thereof, during a 
        war or national emergency or to require the facility to 
        perform other work or provide other services on a 
        priority basis, except--
                    ``(A) in any case of willful misconduct or 
                gross negligence; and
                    ``(B) in the case of a claim by a purchaser 
                of articles or services under this section that 
                damages or injury arose from the failure of the 
                United States to comply with quality, schedule, 
                or cost performance requirements in the 
                contract to carry out the activity.
    ``(d) Arrangement Methods and Authorities.--To establish a 
cooperative arrangement under subsection (a) with a non-Army 
entity, the approval authority described in subsection (e) for 
an Army industrial facility may--
            ``(1) enter into a firm, fixed-price contract (or, 
        if agreed to by the non-Army entity, a cost 
        reimbursement contract) for a sale of articles or 
        services or use of equipment or facilities;
            ``(2) enter into a multiyear contract for a period 
        not to exceed five years, unless a longer period is 
        specifically authorized by law;
            ``(3) charge the non-Army entity the amounts 
        necessary to recover the full costs of the articles or 
        services provided, including capital improvement costs, 
        and equipment depreciation costs associated with 
        providing the articles, services, equipment, or 
        facilities;
            ``(4) authorize the non-Army entity to use 
        incremental funding to pay for the articles, services, 
        or use of equipment or facilities; and
            ``(5) accept payment-in-kind.
    ``(e) Approval Authority.--The authority of an Army 
industrial facility to enter into a cooperative arrangement 
under subsection (a) shall be exercised at the level of the 
commander of the major subordinate command of the Army that has 
responsibility for the facility. The commander may approve such 
an arrangement on a case-by-case basis or a class basis.
    ``(f) Commercial Sales.--Except in the case of work 
performed for the Department of Defense, for a contract of the 
Department of Defense, for foreign military sales, or for 
authorized foreign direct commercial sales (defense articles or 
defense services sold to a foreign government or international 
organization under export controls), a sale of articles or 
services may be made under this section only if the approval 
authority described in subsection (e) determines that the 
articles or services are not available from a commercial source 
located in the United States in the required quantity or 
quality, or within the time required.
    ``(g) Exclusion From Depot-Level Maintenance and Repair 
Percentage Limitation.--Amounts expended for the performance of 
a depot-level maintenance and repair workload by non-Federal 
Government personnel at an Army industrial facility shall not 
be counted for purposes of applying the percentage limitation 
in section 2466(a) of this title if the personnel are provided 
by a non-Army entity pursuant to a cooperative arrangement 
entered into under subsection (a).
    ``(h) Relationship to Other Laws.--Nothing in this section 
shall be construed to affect the application of--
            ``(1) foreign military sales and the export 
        controls provided for in sections 30 and 38 of the Arms 
        Export Control Act (22 U.S.C. 2770 and 2778) to 
        activities of a cooperative arrangement entered into 
        under subsection (a); and
            ``(2) section 2667 of this title to leases of non-
        excess property in the administration of such an 
        arrangement.
    ``(i) Definitions.--In this section:
            ``(1) The term `Army industrial facility' includes 
        an ammunition plant, an arsenal, a depot, and a 
        manufacturing plant.
            ``(2) The term `non-Army entity' includes the 
        following:
                    ``(A) A Federal agency (other than the 
                Department of the Army).
                    ``(B) An entity in industry or commercial 
                sales.
                    ``(C) A State or political subdivision of a 
                State.
                    ``(D) An institution of higher education or 
                vocational training institution.
            ``(3) The term `incremental funding' means a series 
        of partial payments that--
                    ``(A) are made as the work on manufacture 
                or articles is being performed or services are 
                being performed or equipment or facilities are 
                used, as the case may be; and
                    ``(B) result in full payment being 
                completed as the required work is being 
                completed.
            ``(4) The term `full costs', with respect to 
        articles or services provided under a cooperative 
        arrangement entered into under subsection (a), means 
        the variable costs and the fixed costs that are 
        directly related to the production of the articles or 
        the provision of the services.
            ``(5) The term `variable costs' means the costs 
        that are expected to fluctuate directly with the volume 
        of sales or services provided or the use of equipment 
        or facilities.
    ``(j) Expiration of Authority.--The authority to enter into 
a cooperative arrangement under subsection (a) expires 
September 30, 2009, and arrangements entered into under such 
subsection shall terminate not later than that date.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

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

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

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

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

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

                       Subtitle B--Reserve Forces

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

              Subtitle C--Authorizations of Appropriations

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

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

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

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

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

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

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

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

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

                       Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

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

Whenever such units or such individual members are released 
from active duty during any fiscal year, the end strength 
prescribed for such fiscal year for the Selected Reserve of 
such reserve component shall be increased proportionately by 
the total authorized strengths of such units and by the total 
number of such individual members.

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

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

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

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

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

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

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

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

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

    (a) Strength Authorizations.--Section 115 of title 10, 
United States Code, is amended--
            (1) in subsection (a)(1)(A), by inserting ``unless 
        on active duty pursuant to subsection (b)'' after 
        ``active-duty personnel'';
            (2) in subsection (a)(1)(B), by inserting ``unless 
        on active duty or full-time National Guard duty 
        pursuant to subsection (b)'' after ``reserve 
        personnel'';
            (3) by redesignating subsections (b), (c), (d), 
        (e), (f), (g) and (h) as subsections (c), (d), (e), 
        (f), (g), (h) and (i), respectively; and
            (4) by inserting after subsection (a) the following 
        new subsection (b):
    ``(b) Certain Reserves on Active Duty To Be Authorized by 
Law.--(1) Congress shall annually authorize the maximum number 
of members of a reserve component permitted to be on active 
duty or full-time National Guard duty at any given time who are 
called or ordered to--
            ``(A) active duty under section 12301(d) of this 
        title for the purpose of providing operational support, 
        as prescribed in regulation issued by the Secretary of 
        Defense;
            ``(B) full-time National Guard duty under section 
        502(f)(2) of title 32 for the purpose of providing 
        operational support when authorized by the Secretary of 
        Defense;
            ``(C) active duty under section 12301(d) of this 
        title or full-time National Guard duty under section 
        502(f)(2) of title 32 for the purpose of preparing for 
        and performing funeral honors functions for funerals of 
        veterans under section 1491 of this title;
            ``(D) active duty or retained on active duty under 
        sections 12301(g) of this title while in a captive 
        status; or
            ``(E) active duty or retained on active duty under 
        12301(h) or 12322 of this title for the purpose of 
        medical evaluation or treatment.
    ``(2) A member of a reserve component who exceeds either of 
the following limits shall be included in the strength 
authorized under subparagraph (A) or subparagraph (B), as 
appropriate, of subsection (a)(1):
            ``(A) A call or order to active duty or full-time 
        National Guard duty that specifies a period greater 
        than three years.
            ``(B) The cumulative periods of active duty and 
        full-time National Guard duty performed by the member 
        exceed 1095 days in the previous 1460 days.
    ``(3) In determining the period of active service under 
paragraph (2), the following periods of active service 
performed by a member shall not be included:
            ``(A) All periods of active duty performed by a 
        member who has not previously served in the Selected 
        Reserve of the Ready Reserve.
            ``(B) All periods of active duty or full-time 
        National Guard duty for which the member is exempt from 
        strength accounting under paragraphs (1) through (8) of 
        subsection (i).''.
    (b) Limitation on Appropriations.--Subsection (c) of such 
section (as redesignated by subsection (a)(3)) is amended--
            (1) by striking ``or'' at the end of paragraph (1);
            (2) by striking the period at the end of paragraph 
        (2) and inserting ``; or''; and
            (3) by inserting after paragraph (2) the following 
        new paragraph:
            ``(3) the use of reserve component personnel to 
        perform active duty or full-time National Guard duty 
        under subsection (b) unless the strength for such 
        personnel for that reserve component for that fiscal 
        year has been authorized by law.''.
    (c) Authority for Secretary of Defense Variances in Maximum 
Strengths.--Subsection (f) of such section (as redesignated by 
subsection (a)(3)) is amended--
            (1) by striking ``End'' in the heading;
            (2) by striking ``and'' at the end of paragraph 
        (2);
            (3) by striking the period at the end of paragraph 
        (3) and inserting ``; and''; and
            (4) by adding at the end the following new 
        paragraph:
            ``(4) increase the maximum strength authorized 
        pursuant to subsection (b)(1) for a fiscal year for 
        certain reserves on active duty for any of the reserve 
        components by a number equal to not more than 10 
        percent of that strength.''.
    (d) Conforming Amendments to Section 115.--Such section is 
further amended as follows:
            (1) Subsection (e) (as redesignated by subsection 
        (a)(3)) is amended--
                    (A) in paragraph (1), by striking 
                ``subsection (a) or (c)'' and inserting 
                ``subsection (a) or (d)''; and
                    (B) in paragraph (2)--
                            (i) by striking ``subsections (a) 
                        and (c)''; and inserting ``subsections 
                        (a) and (d)'';
                            (ii) by striking ``pursuant to 
                        subsection (e)) and subsection (c)'' 
                        and inserting ``pursuant to subsection 
                        (f)) and subsection (d)'' each place it 
                        appears.
            (2) Subsection (g) (as redesignated by subsection 
        (a)(3)) is amended by striking ``subsection (e)(1)'' in 
        paragraph (2) and inserting ``subsection (f)(1)''.
            (3) Subsection (i) (as redesignated by subsection 
        (a)(3)) is amended to read as follows:
    ``(i) Certain Personnel Excluded From Counting for Active-
Duty End Strengths.--In counting personnel for the purpose of 
the end strengths authorized pursuant to subsection (a)(1), 
persons in the following categories shall be excluded:
            ``(1) Members of a reserve component ordered to 
        active duty under section 12301(a) of this title.
            ``(2) Members of a reserve component in an active 
        status ordered to active duty under section 12301(b) of 
        this title.
            ``(3) Members of the Ready Reserve ordered to 
        active duty under section 12302 of this title.
            ``(4) Members of the Selected Reserve of the Ready 
        Reserve or members of the Individual Ready Reserve 
        mobilization category described in section 10144(b) of 
        this title ordered to active duty under section 12304 
        of this title.
            ``(5) Members of the National Guard called into 
        Federal service under section 12406 of this title.
            ``(6) Members of the militia called into Federal 
        service under chapter 15 of this title.
            ``(7) Members of the National Guard on full-time 
        National Guard duty under section 502(f)(1) of title 
        32.
            ``(8) Members of reserve components on active duty 
        for training or full-time National Guard duty for 
        training.
            ``(9) Members of the Selected Reserve of the Ready 
        Reserve on active duty to support programs described in 
        section 1203(b) of the Cooperative Threat Reduction Act 
        of 1993 (22 U.S.C. 5952(b)).
            ``(10) Members of the National Guard on active duty 
        or full-time National Guard duty for the purpose of 
        carrying out drug interdiction and counter-drug 
        activities under section 112 of title 32.
            ``(11) Members of a reserve component on active 
        duty under section 10(b)(2) of the Military Selective 
        Service Act (50 U.S.C. App. 460(b)(2)) for the 
        administration of the Selective Service System.
            ``(12) Members of the National Guard on full-time 
        National Guard duty for the purpose of providing 
        command, administrative, training, or support services 
        for the National Guard Challenge Program authorized by 
        section 509 of title 32.''.
    (e) Military to Military Contact Strength Accounting.--
Subsection (f) of section 168 of such title is amended to read 
as follows:
    ``(f) Active Duty End Strengths.--A member of a reserve 
component who is engaged in activities authorized under this 
section shall not be counted for purposes of the following 
personnel strength limitations:
            ``(1) The end strength for active-duty personnel 
        authorized pursuant to section 115(a)(1) of this title 
        for the fiscal year in which the member carries out the 
        activities referred to under this section.
            ``(2) The authorized daily average for members in 
        pay grades E-8 and E-9 under section 517 of this title 
        for the calendar year in which the member carries out 
        such activities.
            ``(3) The authorized strengths for commissioned 
        officers under section 523 of this title for the fiscal 
        year in which the member carries out such 
        activities.''.
    (f) E-8 and E-9 Strength Accounting.--Subsection (a) of 
section 517 of such title is amended by striking ``(other than 
for training) in connection with organizing, administering, 
recruiting, instructing, or training the reserve component of 
an armed force.'' and inserting ``as authorized under section 
115(a)(1)(B) or 115(b) of this title, or excluded from counting 
for active duty end strengths under section 115(i) of this 
title.''.
    (g) Field Grade Officer Strength Accounting.--(1) Paragraph 
(1) of section 523(b) of such title is amended to read as 
follows:
            (1) Reserve officers--
                    ``(A) on active duty as authorized under 
                section 115(a)(1)(B) or 115(b)(1) of this 
                title, or excluded from counting for active 
                duty end strengths under section 115(i) of this 
                title;
                    ``(B) on active duty under section 10211, 
                10302 through 10305, or 12402 of this title or 
                under section 708 of title 32; or
                    ``(C) on full-time National Guard duty.''.
    (2) Paragraph (7) of such section is amended by striking 
``Reserve or retired officers'' and inserting ``Retired 
officers''.
    (h) Active Guard and Reserve Field Grade Officer Strength 
Accounting.--Paragraph (2) of section 12011(e) of such title is 
amended to read as follows:
            ``(2) Full-time National Guard duty (other than for 
        training) under section 502(f) of title 32, except for 
        duty under section 115(b)(1)(B) and (C) of this title 
        and section 115(i)(9) of this title.''.
    (i) Warrant Officer Active-Duty List Exclusion.--Paragraph 
(1) of section 582 of such title is amended to read as follows:
            ``(1) Reserve warrant officers--
                    ``(A) on active duty as authorized under 
                section 115(a)(1)(B) or 115(b)(1) of this 
                title, or excluded from counting for active 
                duty end strengths under section 115(i) of this 
                title; or
                    ``(B) on full-time National Guard duty.''.
    (j) Officer Active-Duty List, Applicability of Chapter.--
Paragraph (1) of section 641 of such title is amended to read 
as follows:
            ``(1) Reserve officers--
                    ``(A) on active duty authorized under 
                section 115(a)(1)(B) or 115(b)(1) of this 
                title, or excluded from counting for active 
                duty end strengths under section 115(i) of this 
                title;
                    ``(B) on active duty under section 3038, 
                5143, 5144, 8038, 10211, 10301 through 10305, 
                10502, 10505, 10506(a), 10506(b), 10507, or 
                12402 of this title or section 708 of title 32; 
                or
                    ``(C) on full-time National Guard duty.''.
    (k) Strength Accounting for Members Performing Drug 
Interdiction and Counter-Drug Activities.--Section 112 of title 
32, United States Code, is amended--
            (1) by striking subsection (e);
            (2) by redesignating subsections (f), (g), (h) and 
        (i) as subsections (e), (f), (g) and (h) respectively; 
        and
            (3) in paragraph (1) of subsection (e), as 
        redesignated by paragraph (2), by striking ``for a 
        period of more than 180 days'' each place it appears.
    (l) Report.--Not later than June 1, 2005, the Secretary of 
Defense shall report to the Committee on Armed Services of the 
Senate and the Committee on Armed Services of the House of 
Representatives the Secretary's recommendations regarding the 
exemptions provided in paragraphs (8) through (11) by section 
115(i) of title 10, United States Code, as amended by this 
section. The recommendations shall address the manner in 
personnel covered by those exemptions shall be accounted for in 
authorizations provided by section 115 of such title. The 
objective of the analysis should be to terminate the need for 
such exemptions after September 30, 2006.
    (m) Regulations.--The Secretary of Defense shall prescribe 
by regulation the meaning of the term ``operational support'' 
for purposes of paragraph (1) of subsection (b) of section 115 
of title 10, United States Code, as added by subsection (a).

              Subtitle C--Authorizations of Appropriations

SEC. 421. MILITARY PERSONNEL.

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

SEC. 422. ARMED FORCES RETIREMENT HOME.

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

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

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

              Subtitle B--Reserve Component Policy Matters

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

             Subtitle C--Reserve Component Personnel Matters

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

Subtitle D--Joint Officer Management and Professional Military Education

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

                 Subtitle E--Military Service Academies

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

            Subtitle F--Other Education and Training Matters

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

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

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

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

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

                       Subtitle I--Military Voting

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

                  Subtitle J--Military Justice Matters

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

             Subtitle K--Sexual Assault in the Armed Forces

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

            Subtitle L--Management and Administrative Matters

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

                        Subtitle M--Other Matters

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

                  Subtitle A--Officer Personnel Policy

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

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

``Sec. 647. Force shaping authority

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

``647. Force shaping authority.''.

    (2) Section 1174(e)(2)(B) of such title is amended by 
inserting after ``obligated service'' the following: ``, unless 
the member is an officer discharged or released under the 
authority of section 647 of this title''.
    (3) Section 12201(a) of such title is amended--
            (A) by inserting ``(1)'' after ``(a)'';
            (B) in the first sentence, by inserting ``, except 
        as provided in paragraph (2),'' after ``the armed force 
        concerned and''; and
            (C) by adding at the end the following new 
        paragraph:
    ``(2) An officer transferred from the active-duty list of 
an armed force to a reserve active-status list of an armed 
force under section 647 of this title is not required to 
subscribe to the oath referred to in paragraph (1) in order to 
qualify for an appointment under that paragraph.''.
    (4) Section 12203 of such title is amended--
            (A) by redesignating subsection (b) as subsection 
        (c); and
            (B) by inserting after subsection (a) the following 
        new subsection (b):
    ``(b) Subject to the authority, direction, and control of 
the President, the Secretary concerned may appoint as a reserve 
commissioned officer any regular officer transferred from the 
active-duty list of an armed force to the reserve active-status 
list of a reserve component under section 647 of this title, 
notwithstanding the requirements of subsection (a).''.
    (5) Section 531 of such title is amended by adding at the 
end the following new subsection:
    ``(c) Subject to the authority, direction, and control of 
the President, an original appointment as a commissioned 
officer in the Regular Army, Regular Air Force, Regular Navy, 
or Regular Marine Corps may be made by the Secretary concerned 
in the case of a reserve commissioned officer upon the transfer 
of such officer from the reserve active-status list of a 
reserve component of the armed forces to the active-duty list 
of an armed force, notwithstanding the requirements of 
subsection (a).''.
    (d) Active-Duty Ready Reserve Officers Not on Active-Duty 
List.--Section 641(1)(F) of such title is amended by striking 
``section 12304'' and inserting ``sections 12302 and 12304''.
    (e) All Regular Officer Appointments for Students of the 
University of Health Sciences.--Section 2114(b) of such title 
is amended by striking ``Notwithstanding any other provision of 
law, they shall serve'' in the second sentence and all that 
follows through ``if qualified,'' in the third sentence and 
inserting ``They shall be appointed as regular officers in the 
grade of second lieutenant or ensign and shall serve on active 
duty in that grade. Upon graduation they shall be required to 
serve on active duty''.
    (f) Termination of Requirement of 6 Years Service in a 
Reserve Component for Nonregular Service Retirement 
Eligibility.--Section 12731(a)(3) of such title is amended by 
inserting after ``(3)'' the following: ``in the case of a 
person who completed the service requirements of paragraph (2) 
before the end of the 180-day period beginning on the date of 
the enactment of the National Defense Authorization Act for 
Fiscal Year 2005,''.
    (g) Effective Date.--(1) Except as provided in paragraph 
(2), the amendments made by this section shall take effect on 
the first day of the first month beginning more than 180 days 
after the date of the enactment of this Act.
    (2) The amendment made by subsection (a)(1) shall take 
effect on May 1, 2005.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

              Subtitle B--Reserve Component Policy Matters

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

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

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

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

                ``CHAPTER 9--HOMELAND DEFENSE ACTIVITIES

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

``Sec. 901. Definitions

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

``Sec. 902. Homeland defense activities: funds

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

``Sec. 903. Regulations

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

``Sec. 904. Homeland defense duty

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

``Sec. 905. Funding assistance

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

``Sec. 906. Requests for funding assistance

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

``Sec. 907. Relationship to State duty

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

``Sec. 908. Annual report

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

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

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

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

    (a) Establishment.--There is established a commission to be 
known as the ``Commission on the National Guard and Reserves''.
    (b) Composition.--(1) The Commission shall be composed of 
13 members appointed as follows:
            (A) Three members appointed by the chairman of the 
        Committee on Armed Services of the Senate.
            (B) Three members appointed by the chairman of the 
        Committee on Armed Services of the House of 
        Representatives.
            (C) Two members appointed by the ranking minority 
        member of the Committee on Armed Services of the 
        Senate.
            (D) Two members appointed by the ranking minority 
        member of the Committee on Armed Service of the House 
        of Representatives.
            (E) Three members appointed by the Secretary of 
        Defense.
    (2) The members of the Commission shall be appointed from 
among persons who have knowledge and expertise in the following 
areas:
            (A) National security.
            (B) Roles and missions of any of the Armed Forces.
            (C) The mission, operations, and organization of 
        the National Guard of the United States.
            (D) The mission, operations, and organization of 
        the other reserve components of the Armed Forces.
            (E) Military readiness of the Armed Forces.
            (F) Personnel pay and other forms of compensation.
            (G) Other personnel benefits, including health 
        care.
    (3) Members of the Commission shall be appointed for the 
life of the Commission. A vacancy in the membership of the 
Commission shall not affect the powers of the Commission, but 
shall be filled in the same manner as the original appointment.
    (4) The Secretary of Defense shall designate a member of 
the Commission to be chairman of the Commission.
    (c) Duties.--(1) The Commission shall carry out a study of 
the following matters:
            (A) The roles and missions of the National Guard 
        and the other reserve components of the Armed Forces.
            (B) The compensation and other benefits, including 
        health care benefits, that are provided for members of 
        the reserve components under the laws of the United 
        States.
    (2) In carrying out the study under paragraph (1), the 
Commission shall do the following:
            (A) Assess the current roles and missions of the 
        reserve components and identify appropriate potential 
        future roles and missions for the reserve components.
            (B) Assess the capabilities of the reserve 
        components and determine how the units and personnel of 
        the reserve components may be best used to support the 
        military operations of the Armed Forces and the 
        achievement of national security objectives, including 
        homeland defense, of the United States.
            (C) Assess the Department of Defense plan for 
        implementation of section 115(b) of title 10, United 
        States Code, as added by section 404(a)(4).
            (D) Assess--
                    (i) the current organization and structure 
                of the National Guard and the other reserve 
                components; and
                    (ii) the plans of the Department of Defense 
                and the Armed Forces for future organization 
                and structure of the National Guard and the 
                other reserve components.
            (E) Assess the manner in which the National Guard 
        and the other reserve components are currently 
        organized and funded for training and identify an 
        organizational and funding structure for training that 
        best supports the achievement of training objectives 
        and operational readiness.
            (F) Assess the effectiveness of the policies and 
        programs of the National Guard and the other reserve 
        components for achieving operational readiness and 
        personnel readiness, including medical and personal 
        readiness.
            (G) Assess--
                    (i) the adequacy and appropriateness of the 
                compensation and benefits currently provided 
                for the members of the National Guard and the 
                other reserve components, including the 
                availability of health care benefits and health 
                insurance; and
                    (ii) the effects of proposed changes in 
                compensation and benefits on military careers 
                in both the regular and the reserve components 
                of the Armed Forces.
            (H) Identify various feasible options for improving 
        the compensation and other benefits available to the 
        members of the National Guard and the members of the 
        other reserve components and assess--
                    (i) the cost-effectiveness of such options; 
                and
                    (ii) the foreseeable effects of such 
                options on readiness, recruitment, and 
                retention of personnel for careers in the 
                regular and reserve components the Armed 
                Forces.
            (I) Assess the traditional military career paths 
        for members of the National Guard and the other reserve 
        components and identify alternative career paths that 
        could enhance professional development.
            (J) Assess the adequacy of the funding provided for 
        the National Guard and the other reserve components for 
        several previous fiscal years, including the funding 
        provided for National Guard and reserve component 
        equipment and the funding provided for National Guard 
        and other reserve component personnel in active duty 
        military personnel accounts and reserve military 
        personnel accounts.
    (d) First Meeting.--The Commission shall hold its first 
meeting not later than 30 days after the date on which all 
members of the Commission have been appointed.
    (e) Administrative and Procedural Authorities.--(1) 
Sections 955, 956, 957 (other than subsection (f)), 958, and 
959 of the National Defense Authorization Act for Fiscal Year 
1994 (Public Law 103-160; 10 U.S.C 111 note) shall apply to the 
Commission, except that in applying section 957(a) of such Act 
to the Commission, ``level IV of the Executive Schedule'' shall 
be substituted for ``level V of the Executive Schedule''.
    (2) The following provisions of law do not apply to the 
Commission:
            (A) Section 3161 of title 5, United States Code.
            (B) The Federal Advisory Committee Act (5 U.S.C. 
        App.).
    (f) Reports.--(1) Not later than three months after the 
first meeting of the Commission, the Commission shall submit to 
the Committees on Armed Services of the Senate and the House of 
Representatives a report setting forth--
            (A) a strategic plan for the work of the 
        Commission;
            (B) a discussion of the activities of the 
        Commission; and
            (C) any initial findings of the Commission.
    (2) Not later than one year after the first meeting of the 
Commission, the Commission shall submit a final report to the 
committees of Congress referred to in paragraph (1) and to the 
Secretary of Defense. The final report shall include any 
recommendations that the Commission determines appropriate, 
including any recommended legislation, policies, regulations, 
directives, and practices.
    (g) Termination.--The Commission shall terminate 90 days 
after the date on which the final report is submitted under 
subsection (f)(2).
    (h) Annual Review.--(1) The Secretary of Defense shall 
annually review the reserve components of the Armed Forces with 
regard to--
            (A) the roles and missions of the reserve 
        components; and
            (B) the compensation and other benefits, including 
        health care benefits, that are provided for members of 
        the reserve components under the laws of the United 
        States.
    (2) The Secretary shall submit a report of the annual 
review, together with any comments and recommendations that the 
Secretary considers appropriate, to the Committee on Armed 
Services of the Senate and the Committee on Armed Services of 
the House of Representatives.
    (3) The first review under paragraph (1) shall take place 
during fiscal year 2006.

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

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

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

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

SEC. 516. AUTHORITY TO ACCEPT CERTAIN VOLUNTARY SERVICES.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

            Subtitle C--Reserve Component Personnel Matters

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

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

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

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

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

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

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

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

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

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

    (a) Financial Assistance Program for Service on Active 
Duty.--Section 2107(c) of title 10, United States Code, is 
amended by adding at the end the following new paragraph:
    ``(5)(A) The Secretary of the Army, under regulations and 
criteria established by the Secretary, may provide an 
individual who received a commission as a Reserve officer in 
the Army from a military junior college through a program under 
this chapter and who does not have a baccalaureate degree with 
financial assistance for pursuit of a baccalaureate degree.
    ``(B) Such assistance is in addition to any financial 
assistance provided under paragraph (1), (3), or (4).
    ``(C) The agreement and reimbursement requirements 
established in section 2005 of this title are applicable to 
financial assistance under this paragraph.
    ``(D) An officer receiving financial assistance under this 
paragraph shall be attached to a unit of the Army as determined 
by the Secretary and shall be considered to be a member of the 
Senior Reserve Officers' Training Corps on inactive duty for 
training, as defined in section 101(23) of title 38.
    ``(E) A qualified officer who did not previously receive 
financial assistance under this section is eligible to receive 
educational assistance under this paragraph.
    ``(F) A Reserve officer may not be called or ordered to 
active duty for a deployment while participating in the program 
under this paragraph.
    ``(G) Any service obligation incurred by an officer under 
an agreement entered into under this paragraph shall be in 
addition to any service obligation incurred by that officer 
under any other provision of law or agreement.''.
    (b) Financial Assistance Program for Service in Troop 
Program Units.--Section 2107a(c) of such title is amended by 
adding at the end the following new paragraph:
    ``(4)(A) The Secretary of the Army may provide an 
individual who received a commission as a Reserve officer in 
the Army from a military junior college through a program under 
this chapter and who does not have a baccalaureate degree with 
financial assistance for pursuit of a baccalaureate degree.
    ``(B) Such assistance is in addition to any provided under 
paragraph (1) or (2).
    ``(C) The agreement and reimbursement requirements 
established in section 2005 of this title are applicable to 
financial assistance under this paragraph.
    ``(D) An officer receiving financial assistance under this 
paragraph shall be attached to a unit of the Army as determined 
by the Secretary and shall be considered to be a member of the 
Senior Reserve Officers' Training Corps on inactive duty for 
training, as defined in section 101(23) of title 38.
    ``(E) A qualified officer who did not previously receive 
financial assistance under this section is eligible to receive 
educational assistance under this paragraph.
    ``(F) A Reserve officer may not be called or ordered to 
active duty for a deployment while participating in the program 
under this paragraph.
    ``(G) Any service obligation incurred by an officer under 
an agreement entered into under this paragraph shall be in 
addition to any service obligation incurred by that officer 
under any other provision of law or agreement.''.
    (c) Implementation Report.--Not later than March 31, 2007, 
the Secretary of the Army shall submit to the Committee on 
Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives a report providing 
information on the experience of the Department of the Army 
under paragraph (5) of section 2107(c) of title 10, United 
States Code, as added by subsection (a), and under paragraph 
(4) of section 2107a(c) of title 10, United States Code, as 
added by subsection (b). The report shall include any 
recommendations the Secretary considers necessary for the 
improvement of the programs under those paragraphs.

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

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

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

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

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

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

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

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

``Sec. 16161. Purpose

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

``Sec. 16162. Educational assistance program

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

``Sec. 16163. Eligibility for educational assistance

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

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

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

``Sec. 16165. Termination of assistance

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

``Sec. 16166. Administration of program

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

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

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

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

    Subtitle D--Joint Officer Management and Professional Military 
                               Education

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

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

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

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

             ``CHAPTER 107--PROFESSIONAL MILITARY EDUCATION

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

``Sec. 2151. Definitions

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

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

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

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

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

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

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

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

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

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

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

``Sec. 2157. Annual report to Congress

    ``The Secretary of Defense shall include in the annual 
report of the Secretary to Congress under section 113(c) of 
this title, for the period covered by the report, the following 
information (which shall be shown for the Department of Defense 
as a whole and separately for the Army, Navy, Air Force, and 
Marine Corps and each reserve component):
            ``(1) The number of officers who successfully 
        completed a joint professional military education phase 
        II course and were not selected for promotion.
            ``(2) The number of officer students and faculty 
        members assigned by each service to the professional 
        military schools of the other services and to the joint 
        schools.''.
    (b) Transfer of Other Provisions.--Subsections (b) and (c) 
of section 663 of title 10, United States Code, are transferred 
to section 2152 of such title, as added by subsection (a), and 
added at the end thereof.
    (c) Conforming Amendments.--(1) Section 663 of such title, 
as amended by subsection (b), is further amended--
            (A) by striking subsections (a) and (e); and
            (B) by striking ``(d) Post-Education Joint Duty 
        Assignments.--(1) The'' and inserting ``(a) Joint 
        Specialty Officers.--The'';
            (C) by striking ``(2)(A) The Secretary'' and 
        inserting ``(b) Other Officers.--(1) The Secretary'';
            (D) by striking ``in subparagraph (B)'' and 
        inserting ``in paragraph (2)'';
            (E) by striking ``(B) The Secretary'' and inserting 
        ``(2) The Secretary''; and
            (F) by striking ``in subparagraph (A)'' and 
        inserting ``in paragraph (1)''.
    (2)(A) The heading of such section is amended to read as 
follows:

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

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

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

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

``106A. Educational Assistance for Persons Enlisting for Active 
              Duty................................................ 2141 
``107. Professional Military Education  .........................2151''.

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

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

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

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

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

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

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

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

                 Subtitle E--Military Service Academies

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

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

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

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

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

            (2)(A) The heading for section 6371 is amended to 
        read as follows:

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

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

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

            (3)(A) The heading for section 8921 is amended to 
        read as follows:

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

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

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

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

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

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

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

``Sec. 9355. Board of Visitors

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

            Subtitle F--Other Education and Training Matters

SEC. 551. COLLEGE FIRST DELAYED ENLISTMENT PROGRAM.

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

``Sec. 511. College First Program

    ``(a) Program Authority.--The Secretary of each military 
department may establish a program to increase the number of, 
and the level of the qualifications of, persons entering the 
armed forces as enlisted members by encouraging recruits to 
pursue higher education or vocational or technical training 
before entry into active service.
    ``(b) Delayed Entry With Allowance for Higher Education.--
The Secretary concerned may--
            ``(1) exercise the authority under section 513 of 
        this title--
                    ``(A) to accept the enlistment of a person 
                as a Reserve for service in the Selected 
                Reserve or Individual Ready Reserve of a 
                reserve component, notwithstanding the scope of 
                the authority under subsection (a) of that 
                section, in the case of the Army National Guard 
                of the United States or Air National Guard of 
                the United States; and
                    ``(B) to authorize, notwithstanding the 
                period limitation in subsection (b) of that 
                section, a delay of the enlistment of any such 
                person in a regular component under that 
                subsection for the period during which the 
                person is enrolled in, and pursuing a program 
                of education at, an institution of higher 
                education, or a program of vocational or 
                technical training, on a full-time basis that 
                is to be completed within the maximum period of 
                delay determined for that person under 
                subsection (c); and
            ``(2) subject to paragraph (2) of subsection (d) 
        and except as provided in paragraph (3) of that 
        subsection, pay an allowance to a person accepted for 
        enlistment under paragraph (1)(A) for each month of the 
        period during which that person is enrolled in and 
        pursuing a program described in paragraph (1)(B).
    ``(c) Maximum Period of Delay.--The period of delay 
authorized a person under paragraph (1)(B) of subsection (b) 
may not exceed the 30-month period beginning on the date of the 
person's enlistment accepted under paragraph (1)(A) of such 
subsection.
    ``(d) Allowance.--(1) The monthly allowance paid under 
subsection (b)(2) shall be equal to the amount of the 
subsistence allowance provided for certain members of the 
Senior Reserve Officers' Training Corps with the corresponding 
number of years of participation under section 209(a) of title 
37. The Secretary concerned may supplement that stipend by an 
amount not to exceed $225 per month.
    ``(2) An allowance may not be paid to a person under this 
section for more than 24 months.
    ``(3) A member of the Selected Reserve of a reserve 
component may be paid an allowance under this section only for 
months during which the member performs satisfactorily as a 
member of a unit of the reserve component that trains as 
prescribed in section 10147(a)(1) of this title or section 
502(a) of title 32. Satisfactory performance shall be 
determined under regulations prescribed by the Secretary 
concerned.
    ``(4) An allowance under this section is in addition to any 
other pay or allowance to which a member of a reserve component 
is entitled by reason of participation in the Ready Reserve of 
that component.
    ``(e) Recoupment of Allowance.--(1) A person who, after 
receiving an allowance under this section, fails to complete 
the total period of service required of that person in 
connection with delayed entry authorized for the person under 
section 513 shall repay the United States the amount which 
bears the same ratio to the total amount of that allowance paid 
to the person as the unserved part of the total required period 
of service bears to the total period.
    ``(2) An obligation to repay the United States imposed 
under paragraph (1) is for all purposes a debt owed to the 
United States.
    ``(3) A discharge of a person in bankruptcy under title 11 
that is entered less than five years after the date on which 
the person was, or was to be, enlisted in the regular Army 
pursuant to the delayed entry authority under section 513 does 
not discharge that person from a debt arising under paragraph 
(1).
    ``(4) The Secretary concerned may waive, in whole or in 
part, a debt arising under paragraph (1) in any case for which 
the Secretary determines that recovery would be against equity 
and good conscience or would be contrary to the best interests 
of the United States.
    ``(f) Special Pay and Bonuses.--Upon enlisting in the 
regular component of the member's armed force, a person who 
initially enlisted as a Reserve under this section may, at the 
discretion of the Secretary concerned, be eligible for all 
regular special pays, bonuses, education benefits, and loan 
repayment programs.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 510 
the following new item:

``511. College First Program.''.

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

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

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

SEC. 553. TUITION ASSISTANCE FOR OFFICERS.

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

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

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

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

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

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

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

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

    (b) Eligibility of Academy Cadets and Midshipmen for 
Disability Retired Pay.--(1) Section 1217 of title 10, United 
States Code, is amended to read as follows:

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

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

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

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

    (a) Transfer to Commander of Air University.--Subsection 
(a) of section 9317 of title 10, United States Code, is 
amended--
            (1) by striking ``may confer--'' and inserting 
        ``may confer academic degrees as follows:'';
            (2) by striking ``the'' in paragraphs (1), (2), and 
        (3) after the paragraph designation and inserting 
        ``The'';
            (3) by striking the semicolon at the end of 
        paragraph (1) and inserting a period;
            (4) by striking ``; and'' at the end of paragraph 
        (2) and inserting a period; and
            (5) by adding at the end the following new 
        paragraph:
            ``(4) An academic degree at the level of associate 
        upon graduates of the Community College of the Air 
        Force who fulfill the requirements for that degree.''.
    (b) Conforming Amendment.--Subsection (c) of section 9315 
of such title is amended to read as follows:
    ``(c) Associate Degrees.--(1) Subject to paragraph (2), an 
academic degree at the level of associate may be conferred 
under section 9317 of this title upon any enlisted member who 
has completed a program prescribed by the Community College of 
the Air Force.
    ``(2) No degree may be conferred upon any enlisted member 
under this section unless the Secretary of Education determines 
that the standards for the award of academic degrees in 
agencies of the United States have been met.''.
    (c) Clerical Amendments.--(1) The heading of section 9317 
of such title is amended to read as follows:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    (a) Authority.--The President, by and with the advice and 
consent of the Senate, may issue posthumously a commission as 
major general, United States Army, in the name of the late 
William Mitchell, formerly a colonel, United States Army, who 
resigned his commission on February 1, 1926.
    (b) Date of Commission.--A commission issued under 
subsection (a) shall issue as of the date of the death of 
William Mitchell on February 19, 1936.
    (c) Prohibition of Benefits.--No person is entitled to 
receive any bonus, gratuity, pay, allowance, or other financial 
benefit by reason of the enactment of this section.

                      Subtitle I--Military Voting

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

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

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

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

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

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

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

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

                  Subtitle J--Military Justice Matters

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

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

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

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

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

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

SEC. 574. AUTHORITIES OF THE JUDGE ADVOCATES GENERAL.

    (a) Department of the Army.--Section 3037 of title 10, 
United States Code, is amended--
            (1) in subsection (a), by striking the second and 
        third sentences and inserting ``The term of office of 
        the Judge Advocate General and the Assistant Judge 
        Advocate General is four years.''; and
            (2) by adding at the end the following new 
        subsection:
    ``(e) No officer or employee of the Department of Defense 
may interfere with--
            ``(1) the ability of the Judge Advocate General to 
        give independent legal advice to the Secretary of the 
        Army or the Chief of Staff of the Army; or
            ``(2) the ability of judge advocates of the Army 
        assigned or attached to, or performing duty with, 
        military units to give independent legal advice to 
        commanders.''.
    (b) Department of the Navy.--(1) Section 5148 of such title 
is amended by adding at the end the following new subsection:
    ``(e) No officer or employee of the Department of Defense 
may interfere with--
            ``(1) the ability of the Judge Advocate General to 
        give independent legal advice to the Secretary of the 
        Navy or the Chief of Naval Operations; or
            ``(2) the ability of judge advocates of the Navy 
        assigned or attached to, or performing duty with, 
        military units to give independent legal advice to 
        commanders.''.
    (2) Section 5046 of such title is amended by adding at the 
end the following new subsection:
    ``(c) No officer or employee of the Department of Defense 
may interfere with--
            ``(1) the ability of the Staff Judge Advocate to 
        the Commandant of the Marine Corps to give independent 
        legal advice to the Commandant of the Marine Corps; or
            ``(2) the ability of judge advocates of the Marine 
        Corps assigned or attached to, or performing duty with, 
        military units to give independent legal advice to 
        commanders.''.
    (c) Department of the Air Force.--Section 8037 of title 10, 
United States Code, is amended--
            (1) in subsection (a), by striking ``, but may be'' 
        in the second sentence and all that follows in that 
        sentence through ``President'';
            (2) in subsection (c)--
                    (A) by striking ``shall'' in the matter 
                preceding paragraph (1);
                    (B) by striking paragraph (2);
                    (C) by redesignating paragraph (1) as 
                paragraph (3) and in that paragraph--
                            (i) inserting ``shall'' before 
                        ``receive,''; and
                            (ii) by striking ``; and'' at the 
                        end and inserting a period; and
                    (D) by inserting before paragraph (3), as 
                so redesignated, the following new paragraphs:
            ``(1) is the legal adviser of the Secretary of the 
        Air Force and of all officers and agencies of the 
        Department of the Air Force;
            ``(2) shall direct the officers of the Air Force 
        designated as judge advocates in the performance of 
        their duties; and'';
            (3) in subsection (d)(1), by striking ``, but may 
        be'' in the second sentence and all that follows in 
        that sentence through ``President''; and
            (4) by adding at the end the following new 
        subsection:
    ``(f) No officer or employee of the Department of Defense 
may interfere with--
            ``(1) the ability of the Judge Advocate General to 
        give independent legal advice to the Secretary of the 
        Air Force or the Chief of Staff of the Air Force; or
            ``(2) the ability of officers of the Air Force who 
        are designated as judge advocates who are assigned or 
        attached to, or performing duty with, military units to 
        give independent legal advice to commanders.''.
    (d) Independent Review.--(1) The Secretary of Defense shall 
establish an independent panel of outside experts to conduct a 
study and review of the relationships between the legal 
elements of each of the military departments and to prepare a 
report setting forth the panel's recommendations as to 
statutory, regulatory, and policy changes that the panel 
considers to be desirable to improve the effectiveness of those 
relationships and to enhance the legal support provided to the 
leadership of each military department and each of the Armed 
Forces.
    (2) The panel shall be composed of seven members, appointed 
by the Secretary of Defense from among private United States 
citizens who have substantial expertise in military law and the 
organization and functioning of the military departments. No 
more than one member of the panel may have served as the Judge 
Advocate General of an Armed Force, and no more than one member 
of the panel may have served as the General Counsel of a 
military department.
    (3) The Secretary of Defense shall designate the chairman 
of the panel from among the members of the panel other than a 
member who has served as a Judge Advocate General or as a 
military department General Counsel.
    (4) Members shall be appointed for the life of the panel. 
Any vacancy in the panel shall be filled in the same manner as 
the original appointment.
    (5) The panel shall meet at the call of the chairman.
    (6) All original appointments to the panel shall be made by 
January 15, 2005. The chairman shall convene the first meeting 
of the panel not later than February 1, 2005.
    (7) In carrying out the study and review required by 
paragraph (1), the panel shall--
            (A) review the history of relationships between the 
        uniformed and civilian legal elements of each of the 
        Armed Forces;
            (B) analyze the division of duties and 
        responsibilities between those elements in each of the 
        Armed Forces;
            (C) review the situation with respect to civilian 
        attorneys outside the offices of the service general 
        counsels and their relationships to the Judge Advocates 
        General and the General Counsels;
            (D) consider whether the ability of judge advocates 
        to give independent, professional legal advice to their 
        service staffs and to commanders at all levels in the 
        field is adequately provided for by policy and law; and
            (E) consider whether the Judge Advocates General 
        and General Counsels possess the necessary authority to 
        exercise professional supervision over judge advocates, 
        civilian attorneys, and other legal personnel 
        practicing under their cognizance in the performance of 
        their duties.
    (8) Not later than April 15, 2005, the panel shall submit a 
report on the study and review required by paragraph (1) to the 
Secretary of Defense. The report shall include the findings and 
conclusions of the panel as a result of the study and review, 
together with any recommendations for legislative or 
administrative action that the panel considers appropriate. The 
Secretary of Defense shall transmit the report, together with 
any comments the Secretary wishes to provide, to the Committees 
on Armed Services of the Senate and House of Representatives 
not later than May 1, 2005.
    (9) In this section, the term ``Armed Forces'' does not 
include the Coast Guard.

             Subtitle K--Sexual Assault in the Armed Forces

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

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

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

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

           Subtitle L--Management and Administrative Matters

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

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

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

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

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

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

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

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

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

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

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

    (a) Authority.--Section 1047 of title 10, United States 
Code, is amended--
            (1) by inserting ``(b) Certain Enlisted Members.--
        '' before ``The Secretary''; and
            (2) by inserting after the section heading the 
        following:
    ``(a) Members Traveling in Connection With Medical 
Evacuation.--The Secretary of the military department concerned 
may furnish civilian clothing to a member at a cost not to 
exceed $250, or reimburse a member for the purchase of civilian 
clothing in an amount not to exceed $250, in the case of a 
member who--
            ``(1) is medically evacuated for treatment in a 
        medical facility by reason of an illness or injury 
        incurred or aggravated while on active duty; or
            ``(2) after being medically evacuated as described 
        in paragraph (1), is in an authorized travel status 
        from a medical facility to another location approved by 
        the Secretary.''.
    (b) Effective Date.--Subsection (a) of section 1047 of 
title 10, United States Code, as added by subsection (a), shall 
take effect as of October 1, 2004, and (subject to subsection 
(c)) shall apply with respect to clothing furnished, and 
reimbursement for clothing purchased, on or after that date.
    (c) Retroactive Application.--With respect to the period 
beginning on October 1, 2004, and ending on the date of the 
enactment of this Act, the Secretary of Defense shall provide 
for subsection (a) of section 1047 of title 10, United States 
Code, as added by subsection (a), to be applied as a 
continuation of the authority provided in section 1319 of the 
Emergency Wartime Supplemental Appropriations Act, 2003 (Public 
Law 108-11; 117 Stat. 571), as continued in effect during 
fiscal year 2004 by section 1103 of the Emergency Supplemental 
Appropriations Act for Defense and for the Reconstruction of 
Iraq and Afghanistan, 2004 (Public Law 108-106; 117 Stat. 
1214).

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

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

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

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

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

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

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

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

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

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

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

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

                       Subtitle M--Other Matters

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

            Subtitle C--Travel and Transportation Allowances

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

              Subtitle D--Retired Pay and Survivor Benefits

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

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

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

                        Subtitle F--Other Matters

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

                     Subtitle A--Pay and Allowances

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

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

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

    (a) Entitlement Not Affected by Receipt of Imminent Danger 
Pay and Family Separation Allowance.--Subsection (b) of section 
402a of title 37, United States Code, is amended--
            (1) in paragraph (2), by striking ``the Secretary--
        '' and all that follows through ``shall take into 
        consideration'' and inserting ``the Secretary concerned 
        shall take into consideration''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(3) In determining whether a member meets the eligibility 
criteria under paragraph (1), the Secretary concerned shall not 
take into consideration--
            ``(A) the amount of the supplemental subsistence 
        allowance that is payable under this section;
            ``(B) the amount of any special pay that is payable 
        to the member under section 310 of this section, 
        relating to duty subject to hostile fire or imminent 
        danger; or
            ``(C) the amount of any family separation allowance 
        that is payable to the member under section 427 of this 
        title.''.
    (b) Relation to Other Federal Assistance.--Such section is 
further amended--
            (1) by redesignating subsections (g) and (h) as 
        subsections (h) and (i), respectively; and
            (2) by inserting after subsection (f) the following 
        new subsection (g):
    ``(g) Eligibility for Other Federal Assistance.--(1) A 
child or spouse of a member of the armed forces receiving the 
supplemental subsistence allowance under this section who, 
except on account of the receipt of such allowance, would be 
eligible to receive a benefit described in paragraph (2) shall 
be considered to be eligible for that benefit notwithstanding 
the receipt of such allowance.
    ``(2) The benefits referred to in paragraph (1) are as 
follows:
            ``(A) Assistance provided under the Richard B. 
        Russell National School Lunch Act (42 U.S.C. 1751 et 
        seq.).
            ``(B) Assistance provided under the Child Nutrition 
        Act of 1966 (42 U.S.C. 1771 et seq.).
            ``(C) A service provided under the Head Start Act 
        (42 U.S.C. 9831 et seq.).
            ``(D) Assistance under the Child Care and 
        Development Block Grant Act of 1990 (42 U.S.C. 9858 et 
        seq.).
    ``(3) A household that includes a member of the armed 
forces receiving the supplemental subsistence allowance under 
this section and that, except on account of the receipt of such 
allowance, would be eligible to receive a benefit under the 
Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 
et seq.) shall be considered to be eligible for that benefit 
notwithstanding the receipt of such allowance.''.
    (c) Effective Date.--The amendments made by this section 
shall apply in determining, on or after the date of the 
enactment of this Act, the eligibility of a person for a 
supplemental subsistence allowance under section 402a of title 
37, United States Code, or for Federal assistance under a law 
specified in subsection (g) of such section, as so amended.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

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

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

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

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

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

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

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

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

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

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

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

SEC. 617. ASSIGNMENT INCENTIVE PAY.

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

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

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

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

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

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

    ``(a) Affiliation Bonus.--(1) The Secretary concerned may 
pay an affiliation bonus under this section to an eligible 
officer in any of the armed forces who enters into an agreement 
with the Secretary to serve, for the period specified in the 
agreement, in the Selected Reserve of the Ready Reserve of an 
armed force under the Secretary's jurisdiction--
            ``(A) in a critical officer skill designated under 
        paragraph (3); or
            ``(B) to meet a manpower shortage in--
                    ``(i) a unit of that Selected Reserve; or
                    ``(ii) a particular pay grade in that armed 
                force.
    ``(2) An officer is eligible for an affiliation bonus under 
this section if the officer--
            ``(A) either--
                    ``(i) is serving on active duty for a 
                period of more than 30 days; or
                    ``(ii) is a member of a reserve component 
                not on active duty and, if the member formerly 
                served on active duty, was released from active 
                duty under honorable conditions;
            ``(B) has not previously served in the Selected 
        Reserve of the Ready Reserve; and
            ``(C) is not entitled to receive retired or 
        retainer pay.
    ``(3)(A) The Secretary concerned shall designate for an 
armed force under the Secretary's jurisdiction the critical 
officer skills to which the bonus authority under this 
subsection is to be applied.
    ``(B) A skill may be designated as a critical officer skill 
for an armed force under subparagraph (A) if, to meet 
requirements of that armed force, it is critical for that armed 
force to have a sufficient number of officers who are qualified 
in that skill.
    ``(4) An affiliation bonus payable pursuant to an agreement 
under this section to an eligible officer accrues on the date 
on which the person is assigned to a unit or position in the 
Selected Reserve pursuant to such agreement.
    ``(b) Accession Bonus.--(1) The Secretary concerned may pay 
an accession bonus under this section to an eligible person who 
enters into an agreement with the Secretary--
            ``(A) to accept an appointment as an officer in the 
        armed forces; and
            ``(B) to serve in the Selected Reserve of the Ready 
        Reserve in a skill designated under paragraph (2) for a 
        period specified in the agreement.
    ``(2)(A) The Secretary concerned shall designate for an 
armed force under the Secretary's jurisdiction the officer 
skills to which the authority under this subsection is to be 
applied.
    ``(B) A skill may be designated for an armed force under 
subparagraph (A) if, to mitigate a current or projected 
significant shortage of personnel in that armed force who are 
qualified in that skill, it is critical to increase the number 
of persons accessed into that armed force who are qualified in 
that skill or are to be trained in that skill.
    ``(3) An accession bonus payable to a person pursuant to an 
agreement under this section accrues on the date on which that 
agreement is accepted by the Secretary concerned.
    ``(c) Period of Obligated Service.--An agreement entered 
into with the Secretary concerned under this section shall 
require the person entering into that agreement to serve in the 
Selected Reserve for a specified period. The period specified 
in the agreement shall be any period not less than three years 
that the Secretary concerned determines appropriate to meet the 
needs of the reserve component in which the service is to be 
performed.
    ``(d) Amount.--The amount of a bonus under this section may 
be any amount not in excess of $6,000 that the Secretary 
concerned determines appropriate.
    ``(e) Payment.--(1) Upon acceptance of a written agreement 
by the Secretary concerned under this section, the total amount 
of the bonus payable under the agreement becomes fixed. The 
agreement shall specify whether the bonus is to be paid in one 
lump sum or in installments.
    ``(2) A person entitled to a bonus under this section who 
is called or ordered to active duty shall be paid, during that 
period of active duty, any amount of the bonus that becomes 
payable to the member during that period of active duty.
    ``(f) Relation to Other Accession Bonus Authority.--A 
person may not receive an affiliation bonus or accession bonus 
under this section and financial assistance under chapter 1608, 
1609, or 1611 of title 10, or under section 302g of this title, 
for the same period of service.
    ``(g) Repayment for Failure To Commence or Complete 
Obligated Service.--(1) A person who, after receiving all or 
part of the bonus under an agreement entered into by that 
person under this section, does not accept a commission or an 
appointment as an officer or does not commence to participate 
or does not satisfactorily participate in the Selected Reserve 
for the total period of service specified in the agreement 
shall repay to the United States such compensation or benefit, 
except under conditions prescribed by the Secretary concerned.
    ``(2) The Secretary concerned shall include in each 
agreement entered into by the Secretary under this section the 
requirements that apply for any repayment under this 
subsection, including the method for computing the amount of 
the repayment and any exceptions.
    ``(3) An obligation to repay the United States imposed 
under paragraph (1) is for all purposes a debt owed to the 
United States. A discharge in bankruptcy under title 11 that is 
entered less than five years after the termination of an 
agreement entered into under this section does not discharge a 
person from a debt arising under an agreement entered into 
under this subsection or a debt arising under paragraph (1).''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 308i the following new item:

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

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

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

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

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

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

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

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

    Section 323(a) of title 37, United States Code, is 
amended--
            (1) by striking ``or'' at the end of paragraph (1);
            (2) in paragraph (2)--
                    (A) by inserting ``other than an enlisted 
                member referred to in paragraph (3),'' after 
                ``enlisted member,''; and
                    (B) by striking the period at the end and 
                inserting ``; or''; and
            (3) by adding at the end the following new 
        paragraph:
            ``(3) in the case of an enlisted member serving 
        pursuant to an indefinite reenlistment, the member 
        executes a written agreement to remain on active duty 
        for a period of at least one year.''.

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

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

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

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

            Subtitle C--Travel and Transportation Allowances

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

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

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

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

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

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

             Subtitle D--Retired Pay and Survivor Benefits

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

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

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

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

SEC. 643. DEATH BENEFITS ENHANCEMENT.

    (a) Actions on Fiscal Year 2004 Death Benefits Study.--(1) 
The Secretary of Defense shall expedite the completion and 
submission of the report, which was due on March 1, 2004, of 
the results of the study of the Federal death benefits for 
survivors of deceased members of the Armed Forces required by 
section 647(b) of the National Defense Authorization Act for 
Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1520).
    (2) The President should promptly transmit to Congress any 
recommendation for legislation, together with a request for 
appropriations, that the President determines necessary to 
implement any death benefits enhancements that are recommended 
in the report referred to in paragraph(1).
    (b) Increases of Death Gratuity Consistent With Increases 
of Rates of Basic Pay.--Section 1478 of title 10, United States 
Code, is amended--
            (1) in subsection (a), by inserting ``(as adjusted 
        under subsection (c))'' before the period at the end of 
        the first sentence; and
            (2) by adding at the end the following new 
        subsection:
    ``(c) Effective on the date on which rates of basic pay 
under section 204 of title 37 are increased under section 1009 
of that title or any other provision of law, the amount of the 
death gratuity in effect under subsection (a) shall be 
increased by the same overall average percentage of the 
increase in the rates of basic pay taking effect on that 
date.''.
    (c) Fiscal Year 2005 Actions.--At the same time that the 
President transmits to Congress the budget for fiscal year 2006 
under section 1105(a) of title 31, United States Code, the 
President shall transmit to Congress assessments and 
recommendations regarding legislation on proposals that would 
provide enhanced death benefits for survivors of deceased 
members of the uniformed services. Those assessments and 
recommendations regarding legislation shall include provisions 
for the following:
            (1) Revision of the Servicemembers' Group Life 
        Insurance program under chapter 19 of title 38, United 
        States Code, to provide for--
                    (A) an increase in the maximum benefit 
                amount provided under that program from 
                $250,000 to $350,000;
                    (B) an increase, each fiscal year, in that 
                maximum benefit amount by the same overall 
                average percentage increase that takes effect 
                during such fiscal year in the rates of basic 
                pay under section 204 of title 37, United 
                States Code; and
                    (C) a minimum benefit amount of $100,000 at 
                no cost to the insured members of the uniformed 
                services who elect the maximum coverage, 
                together with an increase in such minimum 
                benefit each fiscal year by the same percentage 
                increase as is described in subparagraph (B).
            (2) An additional set of death benefits for each 
        member of the uniformed services who dies in the line 
        of duty while on active duty that includes, at a 
        minimum, an additional death gratuity in the amount 
        that--
                    (A) in the case of a member not described 
                in subparagraph (B), is equal to the sum of--
                            (i) the total amount of the basic 
                        pay to which the deceased member would 
                        have been entitled under section 204 of 
                        title 37, United States Code, if the 
                        member had not died and had continued 
                        to serve on active duty for an 
                        additional year; and
                            (ii) the total amount of all 
                        allowances and special pays that the 
                        member would have been entitled to 
                        receive under title 37, United States 
                        Code, over the one-year period 
                        beginning on the member's date of death 
                        as if the member had not died and had 
                        continued to serve on active duty for 
                        an additional year with the unit to 
                        which the member was assigned or 
                        detailed on such date; and
                    (B) in the case of a member who dies as a 
                result of an injury caused by or incurred while 
                exposed to hostile action (including any 
                hostile fire or explosion and any hostile 
                action from a terrorist source), is equal to 
                twice the amount calculated under subparagraph 
                (A).
            (3) Any other new death benefits or enhancement of 
        existing death benefits that the President recommends.
            (4) Retroactive applicability of the benefits 
        referred to in paragraph (2) and, as appropriate, the 
        benefits recommended under paragraph (3) so as to 
        provide the benefits--
                    (A) for members of the uniformed services 
                who die in line of duty on or after October 7, 
                2001, of a cause incurred or aggravated while 
                deployed in support of Operation Enduring 
                Freedom; and
                    (B) for members of the uniformed services 
                who die in line of duty on or after March 19, 
                2003, of a cause incurred or aggravated while 
                deployed in support of Operation Iraqi Freedom.
    (d) Consultation.--The President shall consult with the 
Secretary of Defense and the Secretary of Veterans Affairs in 
developing the assessments and recommendations required under 
subsection (c).
    (e) Fiscal Year 2006 Budget Submission.--The budget for 
fiscal year 2006 that is transmitted to Congress under section 
1105(a) of title 31, United States Code, shall include 
assessments and recommendations on legislation (other than 
draft appropriations) that includes provisions that, on the 
basis of the assumption that any draft legislation transmitted 
under subsection (c) would be enacted and would take effect in 
fiscal year 2006--
            (1) would offset fully the increased outlays that 
        would result from enactment of the provisions of any 
        draft legislation transmitted under subsection (c), for 
        fiscal year 2006 and each of the succeeding nine fiscal 
        years;
            (2) expressly state that they are proposed for the 
        purpose of the offset described in paragraph (1); and
            (3) are included in full in the estimates that are 
        made by the Director of the Congressional Budget Office 
        and the Director of the Office of Management and Budget 
        under section 252(d) of the Balanced Budget and 
        Emergency Deficit Control Act of 1985 (2 U.S.C. 902(d)) 
        with respect to the fiscal years referred to in 
        paragraph (1).
    (f) Early Submission of Proposal for Additional Death 
Benefits.--Congress urges the President to transmit any draft 
of legislation for the additional set of death benefits under 
paragraph (2) of subsection (c) before the time for submission 
required under that subsection and as soon as is practicable 
after the date of the enactment of this Act.

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

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

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

    (a) Persons Not Currently Participating in Survivor Benefit 
Plan.--
            (1) Election of sbp coverage.--An eligible retired 
        or former member may elect to participate in the 
        Survivor Benefit Plan during the open enrollment period 
        specified in subsection (f).
            (2) Election of supplemental annuity coverage.--An 
        eligible retired or former member who elects under 
        paragraph (1) to participate in the Survivor Benefit 
        Plan at the maximum level may also elect during the 
        open enrollment period to participate in the 
        Supplemental Survivor Benefit Plan.
            (3) Eligible retired or former member.--For 
        purposes of paragraphs (1) and (2), an eligible retired 
        or former member is a member or former member of the 
        uniformed services who on the day before the first day 
        of the open enrollment period is not a participant in 
        the Survivor Benefit Plan and--
                    (A) is entitled to retired pay; or
                    (B) would be entitled to retired pay under 
                chapter 1223 of title 10, United States Code, 
                but for the fact that such member or former 
                member is under 60 years of age.
            (4) Status under sbp of persons making elections.--
                    (A) Standard annuity.--A person making an 
                election under paragraph (1) by reason of 
                eligibility under paragraph (3)(A) shall be 
                treated for all purposes as providing a 
                standard annuity under the Survivor Benefit 
                Plan.
                    (B) Reserve-component annuity.--A person 
                making an election under paragraph (1) by 
                reason of eligibility under paragraph (3)(B) 
                shall be treated for all purposes as providing 
                a reserve-component annuity under the Survivor 
                Benefit Plan.
    (b) Election To Increase Coverage Under SBP.--A person who 
on the day before the first day of the open enrollment period 
is a participant in the Survivor Benefit Plan but is not 
participating at the maximum base amount or is providing 
coverage under the Plan for a dependent child and not for the 
person's spouse or former spouse may, during the open 
enrollment period, elect to--
            (1) participate in the Plan at a higher base amount 
        (not in excess of the participant's retired pay); or
            (2) provide annuity coverage under the Plan for the 
        person's spouse or former spouse at a base amount not 
        less than the base amount provided for the dependent 
        child.
    (c) Election for Current SBP Participants To Participate in 
Supplemental SBP.--
            (1) Election.--A person who is eligible to make an 
        election under this paragraph may elect during the open 
        enrollment period to participate in the Supplemental 
        Survivor Benefit Plan.
            (2) Persons eligible.--Except as provided in 
        paragraph (3), a person is eligible to make an election 
        under paragraph (1) if on the day before the first day 
        of the open enrollment period the person is a 
        participant in the Survivor Benefit Plan at the maximum 
        level, or during the open enrollment period the person 
        increases the level of such participation to the 
        maximum level under subsection (b) of this section, and 
        under that Plan is providing annuity coverage for the 
        person's spouse or a former spouse.
            (3) Limitation on eligibility for certain sbp 
        participants not affected by two-tier annuity 
        computation.--A person is not eligible to make an 
        election under paragraph (1) if (as determined by the 
        Secretary concerned) the annuity of a spouse or former 
        spouse beneficiary of that person under the Survivor 
        Benefit Plan is to be computed under section 1451(e) of 
        title 10, United States Code. However, such a person 
        may during the open enrollment period waive the right 
        to have that annuity computed under such section 
        1451(e). Any such election is irrevocable. A person 
        making such a waiver may make an election under 
        paragraph (1) as in the case of any other participant 
        in the Survivor Benefit Plan.
    (d) Manner of Making Elections.--An election under this 
section shall be made in writing, signed by the person making 
the election, and received by the Secretary concerned before 
the end of the open enrollment period. Any such election shall 
be made subject to the same conditions, and with the same 
opportunities for designation of beneficiaries and 
specification of base amount, that apply under the Survivor 
Benefit Plan or the Supplemental Survivor Benefit Plan, as the 
case may be. A person making an election under subsection (a) 
to provide a reserve-component annuity shall make a designation 
described in section 1448(e) of title 10, United States Code.
    (e) Effective Date for Elections.--Any such election shall 
be effective as of the first day of the first calendar month 
following the month in which the election is received by the 
Secretary concerned.
    (f) Open Enrollment Period.--The open enrollment period 
under this section is the one-year period beginning on October 
1, 2005.
    (g) Effect of Death of Person Making Election Within Two 
Years of Making Election.--If a person making an election under 
this section dies before the end of the two-year period 
beginning on the effective date of the election, the election 
is void and the amount of any reduction in retired pay of the 
person that is attributable to the election shall be paid in a 
lump sum to the person who would have been the deceased 
person's beneficiary under the voided election if the deceased 
person had died after the end of such two-year period.
    (h) Applicability of Certain Provisions of Law.--The 
provisions of sections 1449, 1453, and 1454 of title 10, United 
States Code, are applicable to a person making an election, and 
to an election, under this section in the same manner as if the 
election were made under the Survivor Benefit Plan or the 
Supplemental Survivor Benefit Plan, as the case may be.
    (i) Premium for Open Enrollment Election.--
            (1) Premiums to be charged.--The Secretary of 
        Defense shall prescribe in regulations premiums which a 
        person electing under this section shall be required to 
        pay for participating in the Survivor Benefit Plan 
        pursuant to the election. The total amount of the 
        premiums to be paid by a person under the regulations 
        shall be equal to the sum of--
                    (A) the total amount by which the retired 
                pay of the person would have been reduced 
                before the effective date of the election if 
                the person had elected to participate in the 
                Survivor Benefit Plan (for the same base amount 
                specified in the election) at the first 
                opportunity that was afforded the member to 
                participate under chapter 73 of title 10, 
                United States Code;
                    (B) interest on the amounts by which the 
                retired pay of the person would have been so 
                reduced, computed from the dates on which the 
                retired pay would have been so reduced at such 
                rate or rates and according to such methodology 
                as the Secretary of Defense determines 
                reasonable; and
                    (C) any additional amount that the 
                Secretary determines necessary to protect the 
                actuarial soundness of the Department of 
                Defense Military Retirement Fund against any 
                increased risk for the fund that is associated 
                with the election.
            (2) Premiums to be credited to retirement fund.--
        Premiums paid under the regulations under paragraph (1) 
        shall be credited to the Department of Defense Military 
        Retirement Fund.
    (h) Definitions.--In this section:
            (1) The term ``Survivor Benefit Plan'' means the 
        program established under subchapter II of chapter 73 
        of title 10, United States Code.
            (2) The term ``Supplemental Survivor Benefit Plan'' 
        means the program established under subchapter III of 
        chapter 73 of title 10, United States Code.
            (3) The term ``retired pay'' includes retainer pay 
        paid under section 6330 of title 10, United States 
        Code.
            (4) The terms ``uniformed services'' and 
        ``Secretary concerned'' have the meanings given those 
        terms in section 101 of title 37, United States Code.
            (5) The term ``Department of Defense Military 
        Retirement Fund'' means the Department of Defense 
        Military Retirement Fund established under section 
        1461(a) of title 10, United States Code.

    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

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

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

``Subchapter                                                        Sec.
``I. Defense Commissary and Exchange Systems......................  2481
``II. Relationship, Continuation, and Common Policies of Defense 
              Commissary and Exchange Systems.....................  2487
``III. Morale, Welfare, and Recreation Programs and 
              Nonappropriated Fund Instrumentalities..............  2491

        ``SUBCHAPTER I--DEFENSE COMMISSARY AND EXCHANGE SYSTEMS

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

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

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

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

    ``(a) Primary Consideration for Establishment.--The needs 
of members of the armed forces on active duty and the needs of 
dependents of such members shall be the primary consideration 
whenever the Secretary of Defense--
            ``(1) assesses the need to establish a commissary 
        store; and
            ``(2) selects the actual location for the store.
    ``(b) Store Size.--In determining the size of a commissary 
store, the Secretary of Defense shall take into consideration 
the number of all authorized patrons of the defense commissary 
system who are likely to use the store.
    ``(c) Closure Considerations.--(1) Whenever assessing 
whether to close a commissary store, the effect of the closure 
on the quality of life of members and dependents referred to in 
subsection (a) who use the store and on the welfare and 
security of the military community in which the commissary is 
located shall be a primary consideration.
    ``(2) Whenever assessing whether to close a commissary 
store, the Secretary of Defense shall also consider the effect 
of the closure on the quality of life of members of the reserve 
components of the armed forces.
    ``(d) Congressional Notification.--(1) The closure of a 
commissary store shall not take effect until the end of the 90-
day period beginning on the date on which the Secretary of 
Defense submits to Congress written notice of the reasons 
supporting the closure. The written notice shall include an 
assessment of the impact closure will have on the quality of 
life for military patrons and the welfare and security of the 
military community in which the commissary is located.
    ``(2) Paragraph (1) shall not apply in the case of the 
closure of a commissary store as part of the closure of a 
military installation under a base closure law.'';
            (4) by inserting sections 2483 and 2484, as 
        redesignated by paragraph (2), after section 2482, as 
        added by paragraph (3);
            (5) in section 2484, as redesignated by paragraph 
        (2)--
                    (A) by striking subsections (a), (b), (c), 
                and (g);
                    (B) by redesignating subsections (d), (e), 
                and (f) as subsections (e), (f), and (g), 
                respectively;
                    (C) by inserting before subsection (f), as 
                so redesignated, the following new subsections:
    ``(a) In General.--As provided in section 2481(a) of this 
title, commissary stores are intended to be similar to 
commercial grocery stores and may sell merchandise similar to 
that sold in commercial grocery stores.
    ``(b) Authorized Commissary Merchandise Categories.--
Merchandise sold in, at, or by commissary stores may include 
items in the following categories:
            ``(1) Meat, poultry, seafood, and fresh-water fish.
            ``(2) Nonalcoholic beverages.
            ``(3) Produce.
            ``(4) Grocery food, whether stored chilled, frozen, 
        or at room temperature.
            ``(5) Dairy products.
            ``(6) Bakery and delicatessen items.
            ``(7) Nonfood grocery items.
            ``(8) Tobacco products.
            ``(9) Health and beauty aids.
            ``(10) Magazines and periodicals.
    ``(c) Inclusion of Other Merchandise Items.--(1) The 
Secretary of Defense may authorize the sale in, at, or by 
commissary stores of merchandise not covered by a category 
specified in subsection (b). The Secretary shall notify 
Congress of all merchandise authorized for sale pursuant to 
this paragraph, as well as the removal of any such 
authorization.
    ``(2) Notwithstanding paragraph (1), the Department of 
Defense military resale system shall continue to maintain the 
exclusive right to operate convenience stores, shopettes, and 
troop stores, including such stores established to support 
contingency operations.
    ``(3) A military exchange shall be the vendor for the sale 
of tobacco products in commissary stores and may be the vendor 
for such merchandise as may be authorized for sale in 
commissary stores under paragraph (1). Subsections (d) and (e) 
shall not apply to the pricing of such an item when a military 
exchange serves as the vendor of the item. Commissary store and 
exchange prices shall be comparable for such an item.
    ``(d) Uniform Sales Price Surcharge.--The Secretary of 
Defense shall apply a uniform surcharge equal to five percent 
on the sales prices established under subsection (e) for each 
item of merchandise sold in, at, or by commissary stores.'';
                    (D) in subsection (e), as so redesignated, 
                by striking ``(consistent with this section and 
                section 2685 of this title)'' in paragraph (1);
                    (E) in subsection (g), as so redesignated, 
                by striking ``Subsections (c) and (d)'' and 
                inserting ``Subsections (d) and (e)''; and
                    (F) by adding at the end the following new 
                subsection:
    ``(h) Use of Surcharge for Construction, Repair, 
Improvement, and Maintenance.--(1)(A) The Secretary of Defense 
may use the proceeds from the surcharges imposed under 
subsection (d) only--
            ``(i) to acquire (including acquisition by lease), 
        construct, convert, expand, improve, repair, maintain, 
        and equip the physical infrastructure of commissary 
        stores and central product processing facilities of the 
        defense commissary system; and
            ``(ii) to cover environmental evaluation and 
        construction costs related to activities described in 
        clause (i), including costs for surveys, 
        administration, overhead, planning, and design.
    ``(B) In subparagraph (A), the term `physical 
infrastructure' includes real property, utilities, and 
equipment (installed and free standing and including computer 
equipment), necessary to provide a complete and usable 
commissary store or central product processing facility.
    ``(2)(A) The Secretary of Defense may authorize a 
nonappropriated fund instrumentality of the United States to 
enter into a contract for construction of a shopping mall or 
similar facility for a commissary store and one or more 
nonappropriated fund instrumentality activities. The Secretary 
may use the proceeds of surcharges under subsection (d) to 
reimburse the nonappropriated fund instrumentality for the 
portion of the cost of the contract that is attributable to 
construction of the commissary store or to pay the contractor 
directly for that portion of such cost.
    ``(B) In subparagraph (A), the term `construction', with 
respect to a facility, includes acquisition, conversion, 
expansion, installation, or other improvement of the facility.
    ``(3) The Secretary of Defense, with the approval of the 
Director of the Office of Management and Budget, may obligate 
anticipated proceeds from the surcharges under subsection (d) 
for any use specified in paragraph (1) or (2), without regard 
to fiscal year limitations, if the Secretary determines that 
such obligation is necessary to carry out any use of such 
adjustments or surcharges specified in such paragraph.
    ``(4) Revenues received by the Secretary of Defense from 
the following sources or activities of commissary store 
facilities shall be available for the purposes set forth in 
paragraphs (1), (2), and (3):
            ``(A) Sale of recyclable materials.
            ``(B) Sale of excess and surplus property.
            ``(C) License fees.
            ``(D) Royalties.
            ``(E) Fees paid by sources of products in order to 
        obtain favorable display of the products for resale, 
        known as business related management fees.'';
            (6) by inserting section 2485, as redesignated by 
        paragraph (2), after section 2484, as amended by 
        paragraph (5); and
            (7) in section 2485, as redesignated by paragraph 
        (2)--
                    (A) in subsection (b)(2), by striking 
                ``section 2484'' and inserting ``section 
                2483'';
                    (B) in subsection (c)(2), by adding at the 
                end the following new sentences: ``The chairman 
                of the governing board shall be a commissioned 
                officer or member of the senior executive 
                service who has demonstrated experience or 
                knowledge relevant to the management of the 
                defense commissary system. In selecting other 
                members of the governing board, the Secretary 
                shall give priority to persons with experience 
                related to logistics, military personnel, 
                military entitlements or other experiences of 
                value of management of commissaries.''; and
                    (C) by adding at the end the following new 
                subsections:
    ``(d) Assignment of Active Duty Members.--(1) Except as 
provided in paragraph (2), members of the armed forces on 
active duty may not be assigned to the operation of a 
commissary store.
    ``(2)(A) The Secretary of Defense may assign an officer on 
the active-duty list to serve as the Director of the Defense 
Commissary Agency.
    ``(B) Not more than 18 members (in addition to the officer 
referred to in subparagraph (A)) of the armed forces on active 
duty may be assigned to the Defense Commissary Agency. Members 
who may be assigned under this subparagraph to regional 
headquarters of the agency shall be limited to enlisted members 
assigned to duty as advisers in the regional headquarters 
responsible for overseas commissaries and to veterinary 
specialists.
    ``(e) Reimbursement for Use of Commissary Facilities by 
Military Departments.--(1) The Secretary of a military 
department shall pay the Defense Commissary Agency the amount 
determined under paragraph (2) for any use of a commissary 
facility by the military department for a purpose other than 
commissary sales or operations in support of commissary sales.
    ``(2) The amount payable under paragraph (1) for use of a 
commissary facility by a military department shall be equal to 
the share of depreciation of the facility that is attributable 
to that use, as determined under regulations prescribed by the 
Secretary of Defense.
    ``(3) The Director of the Defense Commissary Agency shall 
credit amounts paid under paragraph (1) for use of a facility 
to an appropriate account to which proceeds of a surcharge 
applied under section 2484(d) of this title are credited.
    ``(4) This subsection applies with respect to a commissary 
facility that is acquired, constructed, converted, expanded, 
installed, or otherwise improved (in whole or in part) with the 
proceeds of a surcharge applied under section 2484(d) of this 
title.
    ``(f) Donation of Unusable Food.--(1) The Secretary of 
Defense may donate food described in paragraph (2) to any of 
the following entities:
            ``(A) A charitable nonprofit food bank that is 
        designated by the Secretary of Defense or the Secretary 
        of Health and Human Services as authorized to receive 
        such donations.
            ``(B) A State or local agency that is designated by 
        the Secretary of Defense or the Secretary of Health and 
        Human Services as authorized to receive such donations.
            ``(C) A chapter or other local unit of a recognized 
        national veterans organization that provides services 
        to persons without adequate shelter and is designated 
        by the Secretary of Veterans Affairs as authorized to 
        receive such donations.
            ``(D) A not-for-profit organization that provides 
        care for homeless veterans and is designated by the 
        Secretary of Veterans Affairs as authorized to receive 
        such donations.
    ``(2) Food that may be donated under this subsection is 
commissary store food, mess food, meals ready-to-eat (MREs), 
rations known as humanitarian daily rations (HDRs), and other 
food available to the Secretary of Defense that--
            ``(A) is certified as edible by appropriate food 
        inspection technicians;
            ``(B) would otherwise be destroyed as unusable; and
            ``(C) in the case of commissary store food, is 
        unmarketable and unsaleable.
    ``(3) In the case of commissary store food, a donation 
under this subsection shall take place at the site of the 
commissary store that is donating the food.
    ``(4) This subsection does not authorize any service 
(including transportation) to be provided in connection with a 
donation under this subsection.
    ``(g) Collection of Dishonored Checks.--(1) The Secretary 
of Defense may impose a charge for the collection of a check 
accepted at a commissary store that is not honored by the 
financial institution on which the check is drawn. The 
imposition and amounts of charges shall be consistent with 
practices of commercial grocery stores regarding dishonored 
checks.
    ``(2)(A) The following persons are liable to the United 
States for the amount of a check referred to in paragraph (1) 
that is returned unpaid to the United States, together with any 
charge imposed under that paragraph:
            ``(i) The person who presented the check.
            ``(ii) Any person whose status and relationship to 
        the person who presented the check provide the basis 
        for that person's eligibility to make purchases at a 
        commissary store.
    ``(B) Any amount for which a person is liable under 
subparagraph (A) may be collected by deducting and withholding 
such amount from any amounts payable to that person by the 
United States.
    ``(3) Amounts collected as charges imposed under paragraph 
(1) shall be credited to the commissary trust revolving fund.
    ``(4) Appropriated funds may be used to pay any costs 
incurred in the collection of checks and charges referred to in 
paragraph (1). An appropriation account charged a cost under 
the preceding sentence shall be reimbursed the amount of that 
cost out of funds in the commissary trust revolving fund.
    ``(5) In this subsection, the term `commissary trust 
revolving fund' means the trust revolving fund maintained by 
the Department of Defense for surcharge collections and 
proceeds of sales of commissary stores.
    ``(h) Release of Certain Commercially Valuable Information 
to Public.--(1) The Secretary of Defense may limit the release 
to the public of any information described in paragraph (2) if 
the Secretary determines that it is in the best interest of the 
Department of Defense to limit the release of such information. 
If the Secretary determines to limit the release of any such 
information, the Secretary may provide for limited release of 
such information in accordance with paragraph (3).
    ``(2) Paragraph (1) applies to the following:
            ``(A) Information contained in the computerized 
        business systems of commissary stores or the Defense 
        Commissary Agency that is collected through or in 
        connection with the use of electronic scanners in 
        commissary stores, including the following information:
                    ``(i) Data relating to sales of goods or 
                services.
                    ``(ii) Demographic information on 
                customers.
                    ``(iii) Any other information pertaining to 
                commissary transactions and operations.
            ``(B) Business programs, systems, and applications 
        (including software) relating to commissary operations 
        that were developed with funding derived from 
        commissary surcharges.
    ``(3)(A) The Secretary of Defense may, using competitive 
procedures, enter into a contract to sell information described 
in paragraph (2).
    ``(B) The Secretary of Defense may release, without charge, 
information on an item sold in commissary stores to the 
manufacturer or producer of that item or an agent of the 
manufacturer or producer.
    ``(C) The Secretary of Defense shall establish performance 
benchmarks and shall submit information on customer 
satisfaction and performance data to the Committee on Armed 
Services of the Senate and the Committee on Armed Services of 
the House of Representatives.
    ``(D) The Secretary of Defense may, by contract entered 
into with a business, grant to the business a license to use 
business programs referred to in paragraph (2)(B), including 
software used in or comprising any such program. The fee 
charged for the license shall be based on the costs of similar 
programs developed and marketed by businesses in the private 
sector, determined by means of surveys.
    ``(E) Each contract entered into under this paragraph shall 
specify the amount to be paid for information released or a 
license granted under the contract, as the case may be.
    ``(4) Information described in paragraph (2) may not be 
released, under paragraph (3) or otherwise, in a form that 
identifies any customer or that provides information making it 
possible to identify any customer.
    ``(5) Amounts received by the Secretary under this section 
shall be credited to funds derived from commissary surcharges 
applied under section 2484(e) of this title, shall be merged 
with those funds, and shall be available for the same purposes 
as the funds with which merged.''.
    (b) Relation Between Defense Commissary and Exchange 
Systems.--Chapter 147 of title 10, United States Code, is 
further amended--
            (1) by inserting after section 2485, as amended by 
        subsection (a)(7), the following:

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

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

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

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

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

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

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

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

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

    Section 349 of the National Defense Authorization Act for 
Fiscal Year 1995 (Public Law 103-337; 10 U.S.C. 1587 note) is 
amended by adding at the end the following new subsection:
    ``(c) Treatment of Program as Federal Health Benefit 
Program.--(1) No State tax, fee, other monetary payment, or 
State health plan requirement, may be imposed, directly or 
indirectly, on the Nonappropriated Fund Uniform Health Benefits 
Program of the Department of Defense, or on a carrier or an 
underwriting or plan administration contractor of the Program, 
to the same extent as such prohibition applies to the health 
insurance program authorized by chapter 89 of title 5, United 
States Code, under section 8909(f) of such title.
    ``(2) Paragraph (1) shall not be construed to exempt the 
Nonappropriated Fund Uniform Health Benefits Program of the 
Department of Defense, or any carrier or underwriting or plan 
administration contractor of the Program from the imposition, 
payment, or collection of a tax, fee, or other monetary payment 
on the net income or profit accruing to, or realized by, the 
Program or by such carrier or contractor from business 
conducted under the Program, so long as the tax, fee, or 
payment is applicable to a broad range of business activity.
    ``(3) In this subsection, the term `State' means each of 
the several States, the District of Columbia, the Commonwealth 
of Puerto Rico, the United States Virgin Islands, Guam, 
American Samoa, and the Commonwealth of the Northern Mariana 
Islands, and any political subdivision or other non-Federal 
authority thereof.''.

                       Subtitle F--Other Matters

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

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

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

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

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

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

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

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

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

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

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

    (a) Survey of Mobilized Reservists to Determine 
Differential Between Private Sector Income and Military 
Compensation.--(1) The Secretary of Defense shall conduct a 
survey involving members of the reserve components who serve, 
or have served, on active duty in support of a contingency 
operation at any time during the period beginning on September 
11, 2001, and ending on September 30, 2005, to determine the 
extent to which such members sustained a reduction in monthly 
income during their period of active duty service compared to 
their average monthly civilian income during the 12 months 
preceding their mobilization.
    (2) To the extent practicable, at least 50 percent of the 
total number of members of the reserve components who have 
served on active duty in support of a contingency operation at 
any time during the period specified in paragraph (1) should be 
included in the survey. To participate in the survey, a member 
shall agree to make available to the Secretary such information 
as the Secretary may require to accurately calculate the 
average monthly civilian income of the member.
    (b) Calculation of Income Differential.--In the case of 
each member participating in the survey under subsection (a) 
whose total monthly military compensation during the active 
duty service of the member was less, or appeared to be less, 
than the average monthly civilian income of the member, the 
Secretary of Defense, in cooperation with the member, shall 
calculate the monthly active-duty income differential for the 
member.
    (c) Collection of Demographic Data.--The Secretary of 
Defense shall collect demographic data regarding each member of 
a reserve component who participates in the survey under 
subsection (a), including, at a minimum, data on the following:
            (1) Reserve component.
            (2) Unit of assignment.
            (3) Grade.
            (4) Age.
            (5) Years of service.
            (6) Sex.
            (7) Marital status.
            (8) Number of dependents.
            (9) General category of private-sector employment, 
        as determined by the Secretary, but to include an 
        employment category to cover members who are self-
        employed.
            (10) Military occupational specialty, including 
        specifying all surveyed members who are serving in a 
        critical wartime specialty.
            (11) Length of service on active duty during the 
        most recent mobilization.
            (12) Number of times mobilized since September 11, 
        2001.
    (d) Consideration of Average Monthly Reserve Service 
Income.--The Secretary of Defense shall collect data to 
calculate the average monthly reserve service income of members 
of the reserve components before their mobilization, and 
consider such data by grade, general category of military 
occupational specialty, and years of service. The Secretary 
shall also consider the effect that the receipt of average 
monthly reserve service income by reserve component members 
before mobilization should have on any obligation of the United 
States to eliminate or at least reduce the monthly active-duty 
income differential suffered by members serving on active duty 
in support of a contingency operation.
    (e) Effect of Income Loss on Retention.--The Secretary of 
Defense shall include in the survey under subsection (a) a 
question intended to solicit information from members of the 
reserve components participating in the survey regarding the 
likely effect that a reoccurring monthly active-duty income 
differential while serving on active duty would have on their 
decision to remain in Armed Forces.
    (f) Analysis of Survey Data.--(1) At a minimum, the 
Secretary of Defense shall determine, for each variable listed 
in paragraphs (2) through (12) of subsection (c), the number of 
members of the reserve components surveyed under subsection (a) 
who sustained a monthly active-duty income differential for any 
month during their active duty service and compare and contrast 
that number with the number of members who did not experience a 
monthly active-duty income differential.
    (2) The Secretary shall also determine the average amount 
of the active-duty income differential by reserve component for 
each variable within the characteristics listed in paragraphs 
(2) through (12) of subsection (c).
    (g) Submission of Survey Results and Recommendations.--(1) 
Not later than January 31, 2006, the Secretary of Defense shall 
submit to Congress and the Comptroller General a report 
containing the results of the surveys conducted under 
subsection (a), including the results of the analysis of survey 
data required by subsection (f). The Secretary shall include 
such recommendations as the Secretary considers appropriate 
regarding alternatives for restoring income lost by members of 
the reserve components who sustained a monthly active-duty 
income differential during their active duty service.
    (2) Not later than 90 days after receiving the report of 
the Secretary of Defense submitted under paragraph (1), the 
Comptroller General shall submit to Congress an assessment of 
the findings and recommendations of the Secretary contained in 
the report.
    (h) Definitions Used in Conducting Survey and 
Calculations.--In this section:
            (1) The term ``monthly active-duty income 
        differential'', with respect to a member of a reserve 
        component who participates in the survey under 
        subsection (a), means the difference between--
                    (A) the the average monthly civilian income 
                of the member; and
                    (B) the total monthly military compensation 
                of the member during the active duty service of 
                the member.
            (2) The term ``total monthly military 
        compensation'', with respect to a member of a reserve 
        component who participates in the survey, means the 
        amount, computed on a monthly basis, of the sum of--
                    (A) the amount of the regular military 
                compensation (RMC), as defined in section 
                101(25) of title 37, United States Code, of the 
                member during the period specified in 
                subsection (a)(1); and
                    (B) any amount of special pay or incentive 
                pay and any allowance (other than an allowance 
                included in regular military compensation) that 
                is paid to the member on a monthly basis during 
                the period specified in subsection (a)(1).
            (3) The term ``average monthly civilian income'', 
        with respect to a member of a reserve component who 
        participates in the survey, means the amount, 
        determined by the Secretary of Defense, of the earned 
        income of the member for the 12 months preceding the 
        first mobilization of the member for active duty 
        service in support of a contingency operation during 
        the period specified in subsection (a)(1), divided by 
        12.
            (4) The term ``average monthly reserve service 
        income'', with respect to a member of a reserve 
        component who participates in the survey, means the 
        amount, determined by the Secretary of Defense, of the 
        regular military compensation, compensation under 
        section 206 of title 37, United States Code, and any 
        special pays and allowances referred to in paragraph 
        (3)(B) received by the member during the 12 months 
        preceding the first mobilization of the member for 
        active duty service in support of a contingency 
        operation during the period specified in subsection 
        (a)(1), divided by 12.

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

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

                   TITLE VII--HEALTH CARE PROVISIONS

               Subtitle A--Enhanced Benefits for Reserves

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

                 Subtitle B--Other Benefits Improvements

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

            Subtitle C--Planning, Programming, and Management

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

     Subtitle D--Medical Readiness Tracking and Health Surveillance

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


               Subtitle A--Enhanced Benefits for Reserves

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

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

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

    ``(a) Eligibility.--A member of the Selected Reserve of the 
Ready Reserve of a reserve component of the armed forces is 
eligible for health benefits under TRICARE Standard as provided 
in this section after the member completes service on active 
duty to which the member was called or ordered for a period of 
more than 30 days on or after September 11, 2001, under a 
provision of law referred to in section 101(a)(13)(B), if the 
member--
            ``(1) served continuously on active duty for 90 or 
        more days pursuant to such call or order; and
            ``(2) on or before the date of the release from 
        such active-duty service, entered into an agreement 
        with the Secretary concerned to serve continuously in 
        the Selected Reserve for a period of one or more whole 
        years following such date.
    ``(b) Period of Coverage.--(1) TRICARE Standard coverage of 
a member under this section, on the basis of active-duty 
service performed as described in subsection (a), begins upon 
the expiration of the member's entitlement to care and benefits 
under section 1145(a) of this title that is based on the same 
active-duty service.
    ``(2) Unless earlier terminated under paragraph (3), the 
period for TRICARE Standard coverage of a member under this 
section shall be equal to the lesser of--
            ``(A) one year, in the case of a member who is 
        otherwise eligible but does not serve continuously on 
        active duty for 90 days as described in subsection (a) 
        because of an injury, illness, or disease incurred or 
        aggravated while deployed;
            ``(B) one year for each consecutive period of 90 
        days of continuous active-duty service described in 
        subsection (a); or
            ``(C) the number of whole years for which the 
        member agrees under paragraph (2) of such subsection to 
        continue to serve in the Selected Reserve after the 
        coverage begins.
    ``(3) Eligibility for TRICARE Standard coverage of a member 
under this section shall terminate upon the termination of the 
member's service in the Selected Reserve.
    ``(c) Family Members.--While a member of a reserve 
component is covered by TRICARE Standard under the section, the 
members of the immediate family of such member are eligible for 
TRICARE Standard coverage as dependents of the member.
    ``(d) Premiums.--(1) A member of a reserve component 
covered by TRICARE Standard under this section shall pay a 
premium for that coverage.
    ``(2) The Secretary of Defense shall prescribe for the 
purposes of this section one premium for TRICARE Standard 
coverage of members without dependents and one premium for 
TRICARE Standard coverage of members with dependents referred 
to in subsection (f)(1). The premium prescribed for a coverage 
shall apply uniformly to all covered members of the reserve 
components.
    ``(3) The monthly amount of the premium in effect for a 
month for TRICARE Standard coverage under this section shall be 
the amount equal to 28 percent of the total monthly amount that 
the Secretary determines on an appropriate actuarial basis as 
being reasonable for that coverage.
    ``(4) The premiums payable by a member of a reserve 
component under this subsection may be deducted and withheld 
from basic pay payable to the member under section 204 of title 
37 or from compensation payable to the member under section 206 
of such title. The Secretary shall prescribe the requirements 
and procedures applicable to the payment of premiums.
    ``(5) Amounts collected as premiums under this subsection 
shall be credited to the appropriation available for the 
Defense Health Program Account under section 1100 of this 
title, shall be merged with sums in such Account that are 
available for the fiscal year in which collected, and shall be 
available under subsection (b) of such section for such fiscal 
year.
    ``(e) Relationship of Service Agreement to Other Service 
Commitments.--The service agreement required of a member of a 
reserve component under subsection (a)(2) is separate from any 
other form of commitment of the member to a period of obligated 
service in that reserve component and may cover any part or all 
of the same period that is covered by another commitment of the 
member to a period of obligated service in that reserve 
component.
    ``(f) Definitions.--In this section:
            ``(1) The term `immediate family', with respect to 
        a member of a reserve component, means all of the 
        member's dependents described in subparagraphs (A), 
        (D), and (I) of section 1072(2) of this title.
            ``(2) The term `TRICARE Standard' means the 
        Civilian Health and Medical Program of the Uniformed 
        Services option under the TRICARE program.
    ``(g) Regulations.--The Secretary of Defense, in 
consultation with the other administering Secretaries, shall 
prescribe regulations for the administration of this 
section.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 
1076c the following new item:

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

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

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

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

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

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

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

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

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

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

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

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

                Subtitle B--Other Benefits Improvements

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

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

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

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

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

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

SEC. 714. IMPROVEMENTS TO PHARMACY BENEFITS PROGRAM.

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

SEC. 715. PROFESSIONAL ACCREDITATION OF MILITARY DENTISTS.

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

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

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

SEC. 717. SERVICES OF MARRIAGE AND FAMILY THERAPISTS.

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

SEC. 718. CHIROPRACTIC HEALTH CARE BENEFITS ADVISORY COMMITTEE.

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

           Subtitle C--Planning, Programming, and Management

SEC. 721. PILOT PROGRAM FOR HEALTH CARE DELIVERY.

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

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

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

SEC. 723. STUDY OF MENTAL HEALTH SERVICES.

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

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

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

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

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

``Sec. 1116. Payments into the Fund

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

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

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

SEC. 727. TRICARE PROGRAM REGIONAL DIRECTORS.

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

     Subtitle D--Medical Readiness Tracking and Health Surveillance

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

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

SEC. 732. MEDICAL READINESS OF RESERVES.

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

SEC. 733. BASELINE HEALTH DATA COLLECTION PROGRAM.

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

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

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

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

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

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

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

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

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

SEC. 736. REPORT ON TRAINING ON ENVIRONMENTAL HAZARDS.

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

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

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

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

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

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

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

``Sec. 1073b. Recurring reports

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

``1073b. Recurring reports.''.

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

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

              Subtitle A--Acquisition Policy and Management

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


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

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

      Subtitle C--United States Defense Industrial Base Provisions

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

         Subtitle D--Extensions of Temporary Program Authorities

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

                  Subtitle E--Other Acquisition Matters

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

             Subtitle A--Acquisition Policy and Management

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

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

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

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

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

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

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

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

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

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

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

    (b) Effective Date.--Section 2383 of title 10, United 
States Code (as added by subsection (a)), shall apply to 
contracts entered into on or after the date of the enactment of 
this Act.

SEC. 805. SUSTAINMENT PLANS FOR EXISTING SYSTEMS WHILE REPLACEMENT 
                    SYSTEMS ARE UNDER DEVELOPMENT.

    (a) Existing Systems to Be Maintained While Replacement 
Systems are Under Development.--(1) Chapter 144 of title 10, 
United States Code, is amended by inserting after section 2436 
the following new section:

``Sec. 2437. Development of major defense acquisition programs: 
                    sustainment of system to be replaced

    ``(a) Requirement for Sustaining Existing Forces.--(1) The 
Secretary of Defense shall require that, whenever a new major 
defense acquisition program begins development, the defense 
acquisition authority responsible for that program shall 
develop a plan (to be known as a `sustainment plan') for the 
existing system that the system under development is intended 
to replace. Any such sustainment plan shall provide for an 
appropriate level of budgeting for sustaining the existing 
system until the replacement system to be developed under the 
major defense acquisition program is fielded and assumes the 
majority of responsibility for the mission of the existing 
system. This section does not apply to a major defense 
acquisition that reaches initial operational capability before 
October 1, 2008.
    ``(2) In this section, the term `defense acquisition 
authority' means the Secretary of a military department or the 
commander of the United States Special Operations Command.
    ``(b) Sustainment Plan.--The Secretary of Defense shall 
require that each sustainment plan under this section include, 
at a minimum, the following:
            ``(1) The milestone schedule for the development of 
        the major defense acquisition program, including the 
        scheduled dates for low-rate initial production, 
        initial operational capability, full-rate production, 
        and full operational capability and the date as of when 
        the replacement system is scheduled to assume the 
        majority of responsibility for the mission of the 
        existing system.
            ``(2) An analysis of the existing system to assess 
        the following:
                    ``(A) Anticipated funding levels necessary 
                to--
                            ``(i) ensure acceptable reliability 
                        and availability rates for the existing 
                        system; and
                            ``(ii) maintain mission capability 
                        of the existing system against the 
                        relevant threats.
                    ``(B) The extent to which it is necessary 
                and appropriate to--
                            ``(i) transfer mature technologies 
                        from the new system or other systems to 
                        enhance the mission capability of the 
                        existing system against relevant 
                        threats; and
                            ``(ii) provide interoperability 
                        with the new system during the period 
                        from initial fielding until the new 
                        system assumes the majority of 
                        responsibility for the mission of the 
                        existing system.
    ``(c) Exceptions.--Subsection (a) shall not apply to a 
major defense acquisition program if the Secretary of Defense 
determines that--
            ``(1) the existing system is no longer relevant to 
        the mission;
            ``(2) the mission has been eliminated;
            ``(3) the mission has been consolidated with 
        another mission in such a manner that another existing 
        system can adequately meet the mission requirements; or
            ``(4) the duration of time until the new system 
        assumes the majority of responsibility for the existing 
        system's mission is sufficiently short so that mission 
        availability, capability, interoperability, and force 
        protection requirements are maintained.
    ``(d) Waiver.--The Secretary of Defense may waive the 
applicability of subsection (a) to a major defense acquisition 
program if the Secretary determines that, but for such a 
waiver, the Department would be unable to meet national 
security objectives. Whenever the Secretary makes such a 
determination and authorizes such a waiver, the Secretary shall 
submit notice of such waiver and of the Secretary's 
determination and the reasons therefor in writing to the 
congressional defense committees.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 2436 
the following new item:

``2437. Development of major defense acquisition programs: sustainment 
          of system to be replaced.''.

    (b) Application to Existing Programs in Development.--
Section 2437 of title 10, United States Code, as added by 
subsection (a), shall apply with respect to a major defense 
acquisition program for a system that is under development as 
of the date of the enactment of this Act and is not expected to 
reach initial operational capability before October 1, 2008. 
The Secretary of Defense shall require that a sustainment plan 
under that section be developed not later than one year after 
the date of the enactment of this Act for the existing system 
that the system under development is intended to replace.

SEC. 806. APPLICABILITY OF COMPETITION EXCEPTIONS TO ELIGIBILITY OF 
                    NATIONAL GUARD FOR FINANCIAL ASSISTANCE FOR 
                    PERFORMANCE OF ADDITIONAL DUTIES.

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

SEC. 807. INFLATION ADJUSTMENT OF ACQUISITION-RELATED DOLLAR 
                    THRESHOLDS.

    (a) Inflation Adjustment Authority.--(1) The Office of 
Federal Procurement Policy Act (41 U.S.C. 403 et seq.) is 
amended by inserting after section 35 the following new 
section:

``SEC. 35A. INFLATION ADJUSTMENT OF ACQUISITION-RELATED DOLLAR 
                    THRESHOLDS.

    ``(a) Requirement for Periodic Adjustment.--(1) On October 
1 of each year that is evenly divisible by five, the Federal 
Acquisition Regulatory Council shall adjust each acquisition-
related dollar threshold provided by law, as described in 
subsection (c), to the baseline constant dollar value of that 
threshold.
    ``(2) For the purposes of paragraph (1), the baseline 
constant dollar value--
            ``(A) for a dollar threshold in effect on October 
        1, 2000, that was first specified in a law that took 
        effect on or before such date shall be the October 1, 
        2000, constant dollar value of that dollar threshold; 
        and
            ``(B) for a dollar threshold specified in a law 
        that takes effect after October 1, 2000, shall be the 
        constant dollar value of that threshold as of the 
        effective date of that dollar threshold pursuant to 
        such law.
    ``(b) Adjustments Effective Upon Publication.--The Federal 
Acquisition Regulatory Council shall publish a notice of the 
adjusted dollar thresholds under this section in the Federal 
Register. The adjusted dollar thresholds shall take effect on 
the date of publication.
    ``(c) Acquisition-Related Dollar Thresholds.--Except as 
provided in subsection (d), the requirement for adjustment 
under subsection (a) applies to a dollar threshold that is 
specified in law as a factor in defining the scope of the 
applicability of a policy, procedure, requirement, or 
restriction provided in that law to the procurement of property 
or services by an executive agency, as determined by the 
Federal Acquisition Regulatory Council.
    ``(d) Excluded Thresholds.--Subsection (a) does not apply 
to--
            ``(1) dollar thresholds in sections 3141 through 
        3144, 3146, and 3147 of title 40, United States Code;
            ``(2) dollar thresholds in the Service Contract Act 
        of 1965 (41 U.S.C. 351, et seq.); or
            ``(3) dollar thresholds established by the United 
        States Trade Representative pursuant to title III of 
        the Trade Agreements Act of 1979 (19 U.S.C. 2511 et 
        seq.).
    ``(e) Calculation of Adjustments.--An adjustment under this 
section shall--
            ``(1) be calculated on the basis of changes in the 
        Consumer Price Index for all-urban consumers published 
        monthly by the Department of Labor; and
            ``(2) be rounded--
                    ``(A) in the case of a dollar threshold 
                that (as in effect on the day before the 
                adjustment) is less than $10,000, to the 
                nearest $500;
                    ``(B) in the case of a dollar threshold 
                that (as in effect on the day before the 
                adjustment) is not less than $10,000, but is 
                less than $100,000, to the nearest $5,000;
                    ``(C) in the case of a dollar threshold 
                that (as in effect on the day before the 
                adjustment) is not less than $100,000, but is 
                less than $1,000,000, to the nearest $50,000; 
                and
                    ``(D) in the case of a dollar threshold 
                that (as in effect on the day before the 
                adjustment) is $1,000,000 or more, to the 
                nearest $500,000.
    ``(f) Petition for Inclusion of Omitted Threshold.--(1) If 
a dollar threshold adjustable under this section is not 
included in a notice of adjustment published under subsection 
(b), any person may request adjustment of that dollar threshold 
by submitting a petition for adjustment to the Administrator 
for Federal Procurement Policy.
    ``(2) Upon receipt of a petition for adjustment of a dollar 
threshold under paragraph (1), the Administrator shall--
            ``(A) determine, in writing, whether that dollar 
        threshold is required to be adjusted under this 
        section; and
            ``(B) if so, shall publish in the Federal Register 
        a revised notice of the adjusted dollar thresholds 
        under this section that includes the adjustment of the 
        dollar threshold covered by the petition.
    ``(3) The adjustment of a dollar threshold pursuant to a 
petition under this subsection shall take effect on the date of 
the publication of the revised notice adding the adjustment of 
that dollar threshold under paragraph (2)(B).''.
    (2) The table of contents in section 1(b) of such Act is 
amended by inserting after the item relating to section 35 the 
following new item:

``Sec. 35A. Inflation adjustment of acquisition-related dollar 
          thresholds.''.

    (b) Definition of Federal Acquisition Regulatory Council.--
Section 4 of such Act is amended by adding at the end the 
following new paragraph:
            ``(17) The term `Federal Acquisition Regulatory 
        Council' means the Federal Acquisition Regulatory 
        Council established under section 25.''.
    (c) Relationship to Other Inflation Adjustment 
Authorities.--(1) Section 35A of the Office of Federal 
Procurement Policy Act, as added by subsection (a), supersedes 
the applicability of any other provision of law that provides 
for the adjustment of a dollar threshold that is adjustable 
under such section.
    (2) After the date of the enactment of this Act, a dollar 
threshold adjustable under section 35A of the Office of Federal 
Procurement Policy Act, as added by subsection (a), shall be 
adjusted only as provided under that section.

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

SEC. 811. RAPID ACQUISITION AUTHORITY TO RESPOND TO COMBAT EMERGENCIES.

    Section 806 of the Bob Stump National Defense Authorization 
Act for Fiscal Year 2003 (10 U.S.C. 2302 note) is amended--
            (1) by redesignating subsections (c) and (d) as 
        subsections (e) and (f), respectively; and
            (2) by inserting after subsection (b) the following 
        new subsections (c) and (d):
    ``(c) Response to Combat Emergencies.--(1) In the case of 
any equipment that, as determined in writing by the Secretary 
of Defense without delegation, is urgently needed to eliminate 
a combat capability deficiency that has resulted in combat 
fatalities, the Secretary shall use the procedures developed 
under this section in order to accomplish the rapid acquisition 
and deployment of the needed equipment.
    ``(2)(A) Whenever the Secretary makes a determination under 
paragraph (1) that certain equipment is urgently needed to 
eliminate a combat capability deficiency that has resulted in 
combat fatalities, the Secretary shall designate a senior 
official of the Department of Defense to ensure that the needed 
equipment is acquired and deployed as quickly as possible, with 
a goal of awarding a contract for the acquisition of the 
equipment within 15 days.
    ``(B) Upon designation of a senior official under 
subparagraph (A), the Secretary shall authorize that official 
to waive any provision of law, policy, directive, or regulation 
described in subsection (d) that such official determines in 
writing would unnecessarily impede the rapid acquisition and 
deployment of the needed equipment. In a case in which the 
needed equipment cannot be acquired without an extensive delay, 
the senior official shall require that an interim solution be 
implemented and deployed using the procedures developed under 
this section to minimize the combat capability deficiency and 
combat fatalities.
    ``(3) The authority of this section may not be used to 
acquire equipment in an amount aggregating more than 
$100,000,000 during any fiscal year. For acquisitions of 
equipment under this section during the fiscal year in which 
the Secretary makes the determination described in paragraph 
(1) with respect to such equipment, the Secretary may use any 
funds available to the Department of Defense for that fiscal 
year.
    ``(4) The Secretary of Defense shall notify the 
congressional defense committees within 15 days after each 
determination made under paragraph (1). Each such notice shall 
identify--
            ``(A) the equipment to be acquired;
            ``(B) the amount anticipated to be expended for the 
        acquisition; and
            ``(C) the source of funds for the acquisition.
    ``(5) Any acquisition initiated under this subsection shall 
transition to the normal acquisition system not later than two 
years after the date on which the Secretary makes the 
determination described in paragraph (1) with respect to that 
equipment.
    ``(d) Waiver of Certain Statues and Regulations.--(1) Upon 
a determination described in subsection (c)(1), the senior 
official designated in accordance with subsection (c)(2) with 
respect to that designation is authorized to waive any 
provision of law, policy, directive or regulation addressing--
            ``(A) the establishment of the requirement for the 
        equipment;
            ``(B) the research, development, test, and 
        evaluation of the equipment; or
            ``(C) the solicitation and selection of sources, 
        and the award of the contract, for procurement of the 
        equipment.
    ``(2) Nothing in this subsection authorizes the waiver of--
            ``(A) the requirements of this section or the 
        regulations implementing this section; or
            ``(B) any provision of law imposing civil or 
        criminal penalties.''.

SEC. 812. DEFENSE ACQUISITION WORKFORCE IMPROVEMENTS.

    (a) Selection Criteria for Acquisition Corps and for 
Critical Acquisition Positions.--(1) Section 1732(b) of title 
10, United States Code, is amended by striking paragraph (1) 
and redesignating paragraphs (2), (3), and (4) as paragraphs 
(1), (2), and (3), respectively.
    (2) Section 1733(b)(1) of title 10, United States Code, is 
amended in subparagraph (A) by striking ``in a position within 
grade GS-14 or above of the General Schedule,'' and inserting 
``in a senior position in the National Security Personnel 
System, as determined in accordance with guidelines prescribed 
by the Secretary,''.
    (b) Scholarship Program Requirements.--Section 1742 of such 
title is amended--
            (1) by inserting ``(a) Programs.--'' at the 
        beginning of the text; and
            (2) by adding at the end the following new 
        subsection:
    ``(b) Scholarship Program Requirements.--Each recipient of 
a scholarship under a program conducted under subsection (a)(3) 
shall be required to sign a written agreement that sets forth 
the terms and conditions of the scholarship. The agreement 
shall be in a form prescribed by the Secretary and shall 
include terms and conditions, including terms and conditions 
addressing reimbursement in the event that a recipient fails to 
fulfill the requirements of the agreement, that are comparable 
to those set forth as a condition for providing advanced 
education assistance under section 2005. The obligation to 
reimburse the United States under an agreement under this 
subsection is, for all purposes, a debt owing the United 
States.''.
    (c) Authority to Establish Minimum Requirements.--(1) 
Section 1764(b) of such title is amended--
            (A) by redesignating paragraph (5) as paragraph 
        (6); and
            (B) by inserting after paragraph (4) the following 
        new paragraph (5):
            ``(5) Deputy program manager.''.
    (2) Paragraph (1) of such section is amended by striking 
``in paragraph (5)'' and inserting ``in paragraph (6)''.

SEC. 813. PERIOD FOR MULTIYEAR TASK AND DELIVERY ORDER CONTRACTS.

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

SEC. 814. FUNDING FOR CONTRACT CEILINGS FOR CERTAIN MULTIYEAR 
                    PROCUREMENT CONTRACTS.

    (a) Multiyear Contracts Relating to Property.--Section 
2306b(g) of title 10, United States Code, is amended--
            (1) by inserting ``(1)'' before ``Before any'';
            (2) by striking ``Committee'' through ``House of 
        Representatives'' and inserting ``congressional defense 
        committees''; and
            (3) by adding at the end the following new 
        paragraph:
    ``(2) In the case of a contract described in subsection (a) 
with a cancellation ceiling described in paragraph (1), if the 
budget for the contract does not include proposed funding for 
the costs of contract cancellation up to the cancellation 
ceiling established in the contract, the head of the agency 
concerned shall, as part of the certification required by 
subsection (i)(1)(A), give written notification to the 
congressional defense committees of--
            ``(A) the cancellation ceiling amounts planned for 
        each program year in the proposed multiyear procurement 
        contract, together with the reasons for the amounts 
        planned;
            ``(B) the extent to which costs of contract 
        cancellation are not included in the budget for the 
        contract; and
            ``(C) a financial risk assessment of not including 
        budgeting for costs of contract cancellation.''.
    (b) Multiyear Contracts Relating to Services.--Section 
2306c(d) of title 10, United States Code, is amended--
            (1) in paragraphs (1), (3), and (4), by striking 
        ``committees of Congress named in paragraph (5)'' and 
        inserting ``congressional defense committees'' each 
        place it appears; and
            (2) by amending paragraph (5) to read as follows:
    ``(5) In the case of a contract described in subsection (a) 
with a cancellation ceiling described in paragraph (4), if the 
budget for the contract does not include proposed funding for 
the costs of contract cancellation up to the cancellation 
ceiling established in the contract, the head of the agency 
concerned shall give written notification to the congressional 
defense committees of--
            ``(A) the cancellation ceiling amounts planned for 
        each program year in the proposed multiyear procurement 
        contract, together with the reasons for the amounts 
        planned;
            ``(B) the extent to which costs of contract 
        cancellation are not included in the budget for the 
        contract; and
            ``(C) a financial risk assessment of not including 
        budgeting for costs of contract cancellation.''.

SEC. 815. INCREASED THRESHOLD FOR SENIOR PROCUREMENT EXECUTIVE APPROVAL 
                    OF USE OF PROCEDURES OTHER THAN COMPETITIVE 
                    PROCEDURES.

    Section 2304(f)(1)(B) of title 10, United States Code, is 
amended by striking ``$50,000,000'' both places it appears and 
inserting ``$75,000,000''.

SEC. 816. INCREASED THRESHOLD FOR APPLICABILITY OF REQUIREMENT FOR 
                    DEFENSE CONTRACTORS TO PROVIDE INFORMATION ON 
                    SUBCONTRACTING AUTHORITY OF CONTRACTOR PERSONNEL TO 
                    COOPERATIVE AGREEMENT HOLDERS.

    Section 2416(d) of title 10, United States Code, is amended 
by striking ``$500,000'' and inserting ``$1,000,000''.

SEC. 817. EXTENSION OF AUTHORITY FOR USE OF SIMPLIFIED ACQUISITION 
                    PROCEDURES.

    Section 4202(e) of the Clinger-Cohen Act (division D of 
Public Law 104-106; 110 Stat. 652; 10 U.S.C. 2304 note) is 
amended by striking ``January 1, 2006'' and inserting ``January 
1, 2008''.

SEC. 818. SUBMISSION OF COST OR PRICING DATA ON NONCOMMERCIAL 
                    MODIFICATIONS OF COMMERCIAL ITEMS.

    (a) Inapplicability of Commercial Items Exception to 
Noncommercial Modifications of Commercial Items.--Subsection 
(b) of section 2306a of title 10, United States Code, is 
amended by adding at the end the following new paragraph:
            ``(3) Noncommercial modifications of commercial 
        items.--(A) The exception in paragraph (1)(B) does not 
        apply to cost or pricing data on noncommercial 
        modifications of a commercial item that are expected to 
        cost, in the aggregate, more than $500,000 or 5 percent 
        of the total price of the contract, whichever is 
        greater.
            ``(B) In this paragraph, the term `noncommercial 
        modification', with respect to a commercial item, means 
        a modification of such item that is not a modification 
        described in section 4(12)(C)(i) of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 
        403(12)(C)(i)).
            ``(C) Nothing in subparagraph (A) shall be 
        construed--
                    ``(i) to limit the applicability of the 
                exception in subparagraph (A) or (C) of 
                paragraph (1) to cost or pricing data on a 
                noncommercial modification of a commercial 
                item; or
                    ``(ii) to require the submission of cost or 
                pricing data on any aspect of an acquisition of 
                a commercial item other than the cost and 
                pricing of noncommercial modifications of such 
                item.''.
    (b) Effective Date and Applicability.--Paragraph (3) of 
section 2306a of title 10, United States Code (as added by 
subsection (a)), shall take effect on June 1, 2005, and shall 
apply with respect to offers submitted, and to modifications of 
contracts or subcontracts made, on or after that date.

SEC. 819. DELEGATIONS OF AUTHORITY TO MAKE DETERMINATIONS RELATING TO 
                    PAYMENT OF DEFENSE CONTRACTORS FOR BUSINESS 
                    RESTRUCTURING COSTS.

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

SEC. 820. AVAILABILITY OF FEDERAL SUPPLY SCHEDULE SUPPLIES AND SERVICES 
                    TO UNITED SERVICE ORGANIZATIONS, INCORPORATED.

    Section 220107 of title 36, United States Code, is amended 
by inserting after ``Department of Defense'' the following: ``, 
including access to General Services Administration supplies 
and services through the Federal Supply Schedule of the General 
Services Administration,''.

SEC. 821. ADDITION OF LANDSCAPING AND PEST CONTROL SERVICES TO LIST OF 
                    DESIGNATED INDUSTRY GROUPS PARTICIPATING IN THE 
                    SMALL BUSINESS COMPETITIVENESS DEMONSTRATION 
                    PROGRAM.

    (a) In General.--Subsection (a) of section 717 of the Small 
Business Competitiveness Demonstration Program Act of 1988 (15 
U.S.C. 644 note) is amended--
            (1) in paragraph (3), by striking ``and'' at the 
        end;
            (2) in paragraph (4), by striking the period at the 
        end and inserting ``; and''; and
            (3) by adding at the end the following new 
        paragraph:
            ``(5) landscaping and pest control services.''.
    (b) Landscaping and Pest Control Services.--Section 717 of 
the Small Business Competitiveness Demonstration Program Act of 
1988 (15 U.S.C. 644 note) is amended--
            (1) by redesignating subsection (e) as subsection 
        (f), and
            (2) by inserting after subsection (d) the following 
        new subsection:
    ``(e) Landscaping and Pest Control Services.--Landscaping 
and pest control services shall include contract awards 
assigned to North American Industrial Classification Code 
561710 (relating to exterminating and pest control services) or 
561730 (relating to landscaping services).''.

SEC. 822. INCREASED THRESHOLDS UNDER SPECIAL EMERGENCY PROCUREMENT 
                    AUTHORITY.

    Section 32A(b) of the Office of Federal Procurement Policy 
Act (41 U.S.C. 428a(b)) is amended--
            (1) by striking paragraph (1) and inserting the 
        following:
            ``(1) the amount specified in subsections (c), (d), 
        and (f) of section 32 shall be deemed to be--
                    ``(A) $15,000 in the case of any contract 
                to be awarded and performed, or purchase to be 
                made, inside the United States; and
                    ``(B) $25,000 in the case of any contract 
                to be awarded and performed, or purchase to be 
                made, outside the United States; and''; and
            (2) in paragraph (2)(B), by striking ``$500,000'' 
        and inserting ``$1,000,000''.

      Subtitle C--United States Defense Industrial Base Provisions

SEC. 831. DEFENSE TRADE RECIPROCITY.

    (a) Policy.--It is the policy of Congress that procurement 
regulations used in the conduct of trade in defense articles 
and defense services should be based on the principle of fair 
trade and reciprocity consistent with United States national 
security, including the need to ensure comprehensive 
manufacturing capability in the United States defense 
industrial base.
    (b) Requirement.--The Secretary of Defense shall make every 
effort to ensure that the policies and practices of the 
Department of Defense reflect the goal of establishing an 
equitable trading relationship between the United States and 
its foreign defense trade partners, including ensuring that 
United States firms and United States employment in the defense 
sector are not disadvantaged by unilateral procurement 
practices by foreign governments, such as the imposition of 
offset agreements in a manner that undermines the United States 
defense industrial base. In pursuing this goal, the Secretary 
shall--
            (1) develop a comprehensive defense acquisition 
        trade policy that provides the necessary guidance and 
        incentives for the elimination of any adverse effects 
        of offset agreements in defense trade; and
            (2) review and make necessary modifications to 
        existing acquisition policies and strategies, and 
        review and seek to make necessary modifications to 
        existing memoranda of understanding, cooperative 
        project agreements, or related agreements with foreign 
        defense trade partners, to reflect this goal.
    (c) Regulations.--The Secretary shall prescribe regulations 
to implement this section in the Department of Defense 
supplement to the Federal Acquisition Regulation.
    (d) Definitions.--In this section:
            (1) The term ``foreign defense trade partner'' 
        means a foreign country with respect to which there 
        is--
                    (A) a memorandum of understanding or 
                related agreement described in section 2531(a) 
                of title 10, United States Code; or
                    (B) a cooperative project agreement 
                described in section 27 of the Arms Export 
                Control Act (22 U.S.C. 2767).
            (2) The term ``offset agreement'' has the meaning 
        provided that term by section 36(e) of the Arms Export 
        Control Act (22 U.S.C. 2776(e)).
            (3) The terms ``defense article'' and ``defense 
        service'' have the meanings provided those terms by 
        section 47(7) of the Arms Export Control Act (22 U.S.C. 
        2794(7)).

SEC. 832. ASSESSMENT AND REPORT ON THE ACQUISITION OF POLYACRYLONITRILE 
                    (PAN) CARBON FIBER FROM FOREIGN SOURCES.

    (a) Requirement.--The Secretary of Defense shall delay the 
phase-out of the restriction on acquisition of 
polyacrylonitrile (PAN) carbon fiber from foreign sources 
(described in subpart 225.7103 of the Department of Defense 
supplement to the Federal Acquisition Regulation) until an 
assessment of PAN carbon fiber industry is completed and 30 
days have passed after submission of the report required under 
subsection (c).
    (b) Assessment.--The Secretary of Defense shall perform an 
assessment of the domestic and international industrial 
structure that produces PAN carbon fibers, current and 
anticipated market trends for the product, and how the trends 
compare to the assessment as reported by the Secretary of 
Defense in January 2001.
    (c) Report required.--Not later than one year after the 
date of the enactment of this Act, the Secretary of Defense 
shall submit to the Committees on Armed Services of the Senate 
and the House of Representatives a report on the assessment 
performed under subsection (b) and on any decision made to 
maintain or discontinue the phase-out of procurement 
restrictions on foreign acquisition of PAN carbon fibers in the 
Department of Defense supplement to the Federal Acquisition 
Regulation.

        Subtitle D--Extensions of Temporary Program Authorities

SEC. 841. EXTENSION OF MENTOR-PROTEGE PROGRAM.

    (a) Extension of Program.--Subsection (j) of section 831 of 
the National Defense Authorization Act for Fiscal Year 1991 
(Public Law 101-510; 10 U.S.C. 2302 note) is amended--
            (1) in paragraph (1), by striking ``September 30, 
        2005'' and inserting ``September 30, 2010''; and
            (2) in paragraph (2), by striking ``September 30, 
        2008'' and inserting ``September 30, 2013''.
    (b) Extension of Requirement for Annual Report.--Subsection 
(l)(3) of such section is amended by striking ``2007'' and 
inserting ``2010''.
    (c) Additional Feasibility Review of Transition to Other 
Financing Methods.--(1) The Secretary of Defense shall conduct 
an additional review of the Mentor-Protege Program under 
section 811(d)(2) of the National Defense Authorization Act for 
Fiscal Year 2000 (Public Law 106-65; 113 Stat. 708).
    (2) Not later than September 30, 2005, the Secretary shall 
submit to the Committees on Armed Services of the Senate and 
the House of Representatives--
            (A) a report on the results of the review conducted 
        under paragraph (1); and
            (B) any recommendations of the Secretary for 
        legislative action.
    (d) Additional Study of Program Implementation.--(1) The 
Comptroller General shall conduct an additional study of the 
Mentor-Protege Program under section 811(d)(3) of the National 
Defense Authorization Act for Fiscal Year 2000 (Public Law 106-
65; 113 Stat. 709).
    (2) Not later than September 30, 2006, the Comptroller 
General shall submit a report on the results of the study 
conducted under paragraph (1) to the Committees on Armed 
Services of the Senate and the House of Representatives.

SEC. 842. AMENDMENT TO MENTOR-PROTEGE PROGRAM.

    Section 831(m)(2) of the National Defense Authorization Act 
for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2302 note) 
is amended--
            (1) in subparagraph (D), by striking ``or'' at the 
        end;
            (2) in subparagraph (E), by striking the period at 
        the end and inserting a semicolon; and
            (3) by adding at the end the following:
                    ``(F) a small business concern owned and 
                controlled by service-disabled veterans (as 
                defined in section 8(d)(3) of the Small 
                Business Act); and
                    ``(G) a qualified HUBZone small business 
                concern (as defined in section 3(p) of the 
                Small Business Act).''.

SEC. 843. EXTENSION OF TEST PROGRAM FOR NEGOTIATION OF COMPREHENSIVE 
                    SMALL BUSINESS SUBCONTRACTING PLANS.

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

SEC. 844. EXTENSION OF PILOT PROGRAM ON SALES OF MANUFACTURED ARTICLES 
                    AND SERVICES OF CERTAIN ARMY INDUSTRIAL FACILITIES.

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

                 Subtitle E--Other Acquisition Matters

SEC. 851. REVIEW AND DEMONSTRATION PROJECT RELATING TO CONTRACTOR 
                    EMPLOYEES.

    (a) General Review.--(1) The Secretary of Defense shall 
conduct a review of policies, procedures, practices, and 
penalties of the Department of Defense relating to employees of 
defense contractors for purposes of ensuring that the 
Department of Defense is in compliance with Executive Order No. 
12989 (relating to a prohibition on entering into contracts 
with contractors that are not in compliance with the 
Immigration and Nationality Act).
    (2) In conducting the review, the Secretary shall--
            (A) identify potential weaknesses and areas for 
        improvement in existing policies, procedures, 
        practices, and penalties;
            (B) develop and implement reforms to strengthen, 
        upgrade, and improve policies, procedures, practices, 
        and penalties of the Department of Defense and its 
        contractors; and
            (C) review and analyze reforms developed pursuant 
        to this paragraph to identify for purposes of national 
        implementation those which are most efficient and 
        effective.
    (3) The review under this subsection shall be completed not 
later than 180 days after the date of the enactment of this 
Act.
    (b) Demonstration Project.--The Secretary of Defense shall 
conduct a demonstration project in accordance with this 
section, in one or more regions selected by the Secretary, for 
purposes of promoting greater contracting opportunities for 
contractors offering effective, reliable staffing plans to 
perform defense contracts that ensure all contract personnel 
employed for such projects, including management employees, 
professional employees, craft labor personnel, and 
administrative personnel, are lawful residents or persons 
properly authorized to be employed in the United States and 
properly qualified to perform services required under the 
contract. The demonstration project shall focus on contracts 
for construction, renovation, maintenance, and repair services 
for military installations.
    (c) Demonstration Project Procurement Procedures.--As part 
of the demonstration project under subsection (b), the 
Secretary of Defense may conduct a competition in which there 
is a provision in contract solicitations and request for 
proposal documents to require significant weight or credit be 
allocated to--
            (1) reliable, effective workforce programs offered 
        by prospective contractors that provide background 
        checks and other measures to ensure the contractor is 
        in compliance with the Immigration and Nationality Act; 
        and
            (2) reliable, effective project staffing plans 
        offered by prospective contractors that specify for all 
        contract employees (including management employees, 
        professionals, and craft labor personnel) the skills, 
        training, and qualifications of such persons and the 
        labor supply sources and hiring plans or procedures 
        used for employing such persons.
    (d) Implementation of Demonstration Project.--The Secretary 
of Defense shall begin operation of the demonstration project 
required under this section after completion of the review 
under subsection (a), but in no event later than 270 days after 
the date of the enactment of this Act.
    (e) Report on Demonstration Project.--Not later than six 
months after award of a contract under the demonstration 
project, the Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and House of 
Representatives a report setting forth a review of the 
demonstration project and recommendations on the actions, if 
any, that can be implemented to ensure compliance by the 
Department of Defense with Executive Order No. 12989.
    (f) Definition.--In this section, the term ``military 
installation'' means a base, camp, post, station, yard, center, 
homeport facility for any ship, or other activity under the 
jurisdiction of the Department of Defense, including any leased 
facility, which is located within any of the several States, 
the District of Columbia, the Commonwealth of Puerto Rico, 
American Samoa, the Virgin Islands, or Guam. Such term does not 
include any facility used primarily for civil works, rivers and 
harbors projects, or flood control projects.

SEC. 852. INAPPLICABILITY OF CERTAIN FISCAL LAWS TO SETTLEMENTS UNDER 
                    SPECIAL TEMPORARY CONTRACT CLOSEOUT AUTHORITY.

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

SEC. 853. CONTRACTING WITH EMPLOYERS OF PERSONS WITH DISABILITIES.

    (a) Inapplicability of Randolph-Sheppard Act to Mess Hall 
Services Under Existing Javits-Wagner-O'Day Act Contracts.--(1) 
The Randolph-Sheppard Act (20 U.S.C. 107 et seq.) does not 
apply to any contract described in paragraph (2) for so long as 
the contract is in effect, including for any period for which 
the contract is extended pursuant to an option provided in the 
contract.
    (2) Paragraph (1) applies to any contract for the operation 
of all or any part of a military mess hall, military troop 
dining facility, or any similar dining facility operated for 
the purpose of providing meals to members of the Armed Forces 
that--
            (A) was entered into before September 30, 2005, 
        with a qualified nonprofit agency for the blind or a 
        qualified nonprofit agency for other severely 
        handicapped in compliance with section 3 of the Javits-
        Wagner-O'Day Act (41 U.S.C. 48); and
            (B) either--
                    (i) is in effect on such date; or
                    (ii) was in effect on November 24, 2003.
    (b) Inapplicability of Javits-Wagner-O'Day Act to Mess Hall 
Services Under Existing Randolph-Sheppard Act Contracts.--(1) 
The Javits-Wagner-O'Day Act (41 U.S.C. 46 et seq.) does not 
apply to any contract described in paragraph (2) for so long as 
the contract is in effect, including for any period for which 
the contract is extended pursuant to an option provided in the 
contract.
    (2) Paragraph (1) applies to any contract for the operation 
of all or any part of a military mess hall, military troop 
dining facility, or any similar dining facility operated for 
the purpose of providing meals to members of the Armed Forces 
that--
            (A) was entered into before September 30, 2005, 
        with a State licensing agency under the Randolph-
        Sheppard Act (20 U.S.C. 107 et seq.); and
            (B) either--
                    (i) is in effect on such date; or
                    (ii) was in effect on November 24, 2003.
    (3) In this subsection, the term ``State licensing agency'' 
means an agency designated under section 2(a)(5) of the 
Randolph-Sheppard Act (20 U.S.C. 107a(a)(5)).
    (c) Repeal of Superseded Law.--Subsections (a) and (b) of 
section 852 of the National Defense Authorization Act for 
Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1556) are 
repealed.

SEC. 854. DEFENSE PROCUREMENTS MADE THROUGH CONTRACTS OF OTHER 
                    AGENCIES.

    (a) Limitation.--The head of an agency may not procure 
goods or services (under section 1535 of title 31, United 
States Code, pursuant to a designation under section 11302(e) 
of title 40, United States Code, or otherwise) through a 
contract entered into by an agency outside the Department of 
Defense for an amount greater than the simplified acquisition 
threshold referred to in section 2304(g) of title 10, United 
States Code, unless the procurement is done in accordance with 
procedures prescribed by that head of an agency for reviewing 
and approving the use of such contracts.
    (b) Effective Date.--The limitation in subsection (a) shall 
apply only with respect to orders for goods or services that 
are issued by the head of an agency to an agency outside the 
Department of Defense on or after the date that is 180 days 
after the date of the enactment of this Act.
    (c) Inapplicability to Contracts for Certain Services.--
This section does not apply to procurements of the following 
services:
            (1) Printing, binding, or blank-book work to which 
        section 502 of title 44, United States Code, applies.
            (2) Services available under programs pursuant to 
        section 103 of the Library of Congress Fiscal 
        Operations Improvement Act of 2000 (Public Law 106-481; 
        114 Stat. 2187; 2 U.S.C. 182c).
    (d) Annual Report.--(1) For each of fiscal years 2005 and 
2006, each head of an agency shall submit to the Secretary of 
Defense a report on the service charges imposed on purchases 
made for an amount greater than the simplified acquisition 
threshold during such fiscal year through a contract entered 
into by an agency outside the Department of Defense.
    (2) In the case of procurements made on orders issued by 
the head of a Defense Agency, Department of Defense Field 
Activity, or any other organization within the Department of 
Defense (other than a military department) under the authority 
of the Secretary of Defense as the head of an agency, the 
report under paragraph (1) shall be submitted by the head of 
that Defense Agency, Department of Defense Field Activity, or 
other organization, respectively.
    (3) The report for a fiscal year under this subsection 
shall be submitted not later than December 31 of the calendar 
year in which such fiscal year ends.
    (e) Definitions.--In this section:
            (1) The term ``head of an agency'' means the 
        Secretary of Defense, the Secretary of the Army, the 
        Secretary of the Navy, the Secretary of the Air Force.
            (2) The term ``Defense Agency'' has the meaning 
        given such term in section 101(a)(11) of title 10, 
        United States Code.
            (3) The term ``Department of Defense Field 
        Activity'' has the meaning given such term in section 
        101(a)(12) of such title.

SEC. 855. REQUIREMENTS RELATING TO SOURCE SELECTION FOR INTEGRATED 
                    SUPPORT OF AERIAL REFUELING AIRCRAFT FLEET FOR THE 
                    AIR FORCE.

    For the selection of a provider of integrated support for 
the aerial refueling aircraft fleet in any acquisition of 
aerial refueling aircraft for the Air Force, the Secretary of 
the Air Force shall--
            (1) before selecting the provider, perform all 
        analyses required by law of--
                    (A) the costs and benefits of--
                            (i) the alternative of using 
                        Federal Government personnel to provide 
                        such support; and
                            (ii) the alternative of using 
                        contractor personnel to provide such 
                        support;
                    (B) the core logistics requirements;
                    (C) use of performance-based logistics; and
                    (D) the length of contract period; and
            (2) select the provider in accordance with the 
        procedures under the provisions of law referred to as 
        the Competition in Contracting Act.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

        Subtitle A--Duties and Functions of Department of Defense

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

                      Subtitle B--Space Activities

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

                Subtitle C--Intelligence-Related Matters

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

                        Subtitle D--Other Matters

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

       Subtitle A--Duties and Functions of Department of Defense

SEC. 901. STUDY OF ROLES AND AUTHORITIES OF THE DIRECTOR OF DEFENSE 
                    RESEARCH AND ENGINEERING.

    (a) Study Required.--The Secretary of Defense shall carry 
out a study of the roles and authorities of the Director of 
Defense Research and Engineering.
    (b) Content of Study.--The study under subsection (a) shall 
include the following:
            (1) An examination of the past and current roles 
        and authorities of the Director of Defense Research and 
        Engineering.
            (2) An analysis to determine appropriate future 
        roles and authorities for the Director, including an 
        analysis of the following matters:
                    (A) The relationship of the Director to 
                other senior science and technology and 
                acquisition officials of the military 
                departments and the Defense Agencies.
                    (B) The relationship of the Director to the 
                performance of the following functions:
                            (i) The planning, programming, and 
                        budgeting of the science and technology 
                        programs of the Department of Defense, 
                        including those of the military 
                        departments and the Defense Agencies.
                            (ii) The management of Department 
                        of Defense laboratories and technical 
                        centers, including the management of 
                        the Federal Government scientific and 
                        technical workforce for such 
                        laboratories and centers.
                            (iii) The promotion of the rapid 
                        transition of technologies to 
                        acquisition programs within the 
                        Department of Defense.
                            (iv) The promotion of the transfer 
                        of technologies into and from the 
                        commercial sector.
                            (v) The coordination of Department 
                        of Defense science and technology 
                        activities with organizations outside 
                        the Department of Defense, including 
                        other Federal Government agencies, 
                        international research organizations, 
                        industry, and academia.
                            (vi) The technical review of 
                        Department of Defense acquisition 
                        programs and policies.
                            (vii) The training and educational 
                        activities for the national scientific 
                        and technical workforce.
                            (viii) The development of science 
                        and technology policies and programs 
                        relating to the maintenance of the 
                        national technology and industrial 
                        base.
                            (ix) The development of new 
                        technologies in support of the 
                        transformation of the Armed Forces.
            (3) An examination of the duties of the Director as 
        the Chief Technology Officer of the Department of 
        Defense as prescribed by Department of Defense 
        Directive 5134.3, dated November 3, 2003, especially in 
        comparison to the duties of similar positions in the 
        Federal Government and industry.
            (4) An examination of any other matter that the 
        Secretary considers appropriate for the study.
    (c) Report.--(1) Not later than February 1, 2006, the 
Secretary shall submit to the Committee on Armed Services of 
the Senate and the Committee on Armed Services of the House of 
Representatives a report on the results of the study under this 
section.
    (2) The report shall include recommendations regarding the 
appropriate roles and authorities that should be assigned and 
resources that should be provided to the Director of Defense 
Research and Engineering.
    (d) Role of Defense Science Board in Study and Report.--The 
Secretary shall act through the Defense Science Board in 
carrying out the study under subsection (a) and in preparing 
the report under subsection (c).

SEC. 902. CHANGE OF MEMBERSHIP OF SPECIFIED COUNCIL.

    (a) Membership of Council Under Section 179.--Subsection 
(a) of section 179 of title 10, United States Code, is amended 
by adding at the end the following new paragraph:
            ``(4) The Under Secretary of Defense for Policy.''.
    (b) Conforming and Clarifying Amendments.--Such subsection 
is further amended in the matter preceding paragraph (1)--
            (1) by striking ``Joint''; and
            (2) by striking ``composed of three members as 
        follows:'' and inserting ``operated as a joint activity 
        of the Department of Defense and the Department of 
        Energy. The membership of the Council is comprised of 
        the following officers of those departments:''.
    (c) Other Technical and Clarifying Amendments.--Such 
section is further amended as follows:
            (1) Subsection (c)(3)(B) is amended by striking 
        ``appointed'' and inserting ``designated''.
            (2) Subsection (e) is amended by striking ``In 
        addition'' and all that follows through ``also'' and 
        inserting ``The Council shall''.
            (3) Subsection (f) is amended by striking 
        ``Committee on'' the first place it appears and all 
        that follows through ``Representatives'' and inserting 
        ``congressional defense committees''.
    (d) Stylistic Amendments.--Such section is further amended 
as follows:
            (1) Subsection (a) is amended by inserting 
        ``Establishment; Membership.--'' after ``(a)''.
            (2) Subsection (b) is amended by inserting 
        ``Chairman; Meetings.--'' after ``(b)''.
            (3) Subsection (c) is amended by inserting ``Staff 
        and Administrative Services; Staff Director.--'' after 
        ``(c)''.
            (4) Subsection (d) is amended by inserting 
        ``Responsibilities.--'' after ``(d)''.
            (5) Subsection (e) is amended by inserting ``Report 
        on Difficulties Relating to Safety or Reliability.--'' 
        after ``(e)''.
            (6) Subsection (f) is amended by inserting ``Annual 
        Report.--'' after ``(f)''.
    (e) Further Conforming Amendments.--Section 3212(e) of the 
National Nuclear Security Administration Act (50 U.S.C. 
2402(e)) is amended--
            (1) by striking ``Joint'' in the subsection 
        heading; and
            (2) by striking ``Joint''.

                      Subtitle B--Space Activities

SEC. 911. SPACE POSTURE REVIEW.

    (a) Requirement for Comprehensive Review.--In order to 
clarify the national security space policy and strategy of the 
United States for the near term, the Secretary of Defense shall 
conduct a comprehensive review of the space posture of the 
United States over the posture review period.
    (b) Elements of Review.--The review conducted under 
subsection (a) shall include, for the posture review period, 
the following:
            (1) The definition, policy, requirements, and 
        objectives for each of the following:
                    (A) Space situational awareness.
                    (B) Space control.
                    (C) Space superiority, including defensive 
                and offensive counterspace.
                    (D) Force enhancement and force 
                application.
                    (E) Space-based intelligence, surveillance, 
                and reconnaissance from space.
                    (F) Any other matter the Secretary 
                considers relevant to understanding the United 
                States space posture.
            (2) Current and planned space acquisition programs 
        that are in acquisition categories 1 and 2, including 
        how each such program will address the policy, 
        requirements, and objectives described under each of 
        subparagraphs (A) through (F) of paragraph (1).
            (3) Future space systems and technology development 
        (other than those in development as of the date of the 
        enactment of this Act) necessary to address the policy, 
        requirements, and objectives described under each of 
        subparagraphs (A) through (F) of paragraph (1).
            (4) The relationship among--
                    (A) United States military space policy;
                    (B) national security space policy;
                    (C) national security space objectives; and
                    (D) arms control policy.
            (5) Effect of United States military and national 
        security space policy on the proliferation of weapons 
        capable of targeting objects in space or objects on 
        Earth from space.
    (c) Reports.--(1) Not later than March 15, 2005, the 
Secretary of Defense shall submit to the congressional 
committees specified in paragraph (4) an interim report on the 
review conducted under subsection (a).
    (2) Not later than December 31, 2005, the Secretary shall 
submit to those committees a final report on that review.
    (3) Each report under this subsection shall be submitted in 
unclassified form, but may include a classified annex.
    (4) The reports under this subsection shall be submitted to 
the Committee on Armed Services and the Select Committee on 
Intelligence of the Senate and the Committee on Armed Services 
and the Permanent Select Committee on Intelligence of the House 
of Representatives.
    (d) Joint Undertaking With the Director of Central 
Intelligence (or Successor).--The Secretary of Defense shall 
conduct the review under this section, and shall submit the 
reports under subsection (c), jointly with the Director of 
Central Intelligence (or any successor official who has 
responsibility for management of the intelligence community).
    (e) Posture Review Period.--In this section, the term 
``posture review period'' means the 10-year period beginning on 
the first day of the first month beginning more than one year 
after the date of the enactment of this Act.

SEC. 912. PANEL ON THE FUTURE OF NATIONAL SECURITY SPACE LAUNCH.

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

SEC. 913. OPERATIONALLY RESPONSIVE NATIONAL SECURITY SATELLITES.

    (a) Planning, Programming, and Management.--(1) Chapter 135 
of title 10, United States Code, is amended by inserting after 
section 2273 the following new section:

``Sec. 2273a. Operationally responsive national security payloads and 
                    buses: separate program element required

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

``2273a. Operationally responsive national security payloads and buses: 
          separate program element required.''.
    (b) Time for Implementation.--Subsection (a) of section 
2273a of title 10, United States Code, as added by subsection 
(a), shall apply with respect to fiscal years after fiscal year 
2005.

SEC. 914. NONDISCLOSURE OF CERTAIN PRODUCTS OF COMMERCIAL SATELLITE 
                    OPERATIONS.

    (a) Mandatory Disclosure Requirements Inapplicable.--The 
requirements to make information available under section 552 of 
title 5, United States Code, shall not apply to land remote 
sensing information.
    (b) Land Remote Sensing Information Defined.--In this 
section, the term ``land remote sensing information''--
            (1) means any data that--
                    (A) are collected by land remote sensing; 
                and
                    (B) are prohibited from sale to customers 
                other than the United States Government and 
                United States Government-approved customers for 
                reasons of national security pursuant to the 
                terms of an operating license issued pursuant 
                to the Land Remote Sensing Policy Act of 1992 
                (15 U.S.C. 5601 et seq.); and
            (2) includes any imagery and other product that is 
        derived from such data and which is prohibited from 
        sale to customers other than the United States 
        Government and United States Government-approved 
        customers for reasons of national security pursuant to 
        the terms of an operating license described in 
        paragraph (1)(B).
    (c) State or Local Government Disclosures.--Land remote 
sensing information provided by the head of a department or 
agency of the United States to a State, local, or tribal 
government may not be made available to the general public 
under any State, local, or tribal law relating to the 
disclosure of information or records.
    (d) Safeguarding Information.--The head of each department 
or agency of the United States having land remote sensing 
information within that department or agency or providing such 
information to a State, local, or tribal government shall take 
such actions, commensurate with the sensitivity of that 
information, as are necessary to protect that information from 
disclosure other than in accordance with this section and other 
applicable law.
    (e) Additional Definition.--In this section, the term 
``land remote sensing'' has the meaning given such term in 
section 3 of the Land Remote Sensing Policy Act of 1992 (15 
U.S.C. 5602).
    (f) Disclosure to Congress.--Nothing in this section shall 
be construed to authorize the withholding of information from 
the appropriate committees of Congress.

                Subtitle C--Intelligence-Related Matters

SEC. 921. TWO-YEAR EXTENSION OF AUTHORITY OF THE SECRETARY OF DEFENSE 
                    TO ENGAGE IN COMMERCIAL ACTIVITIES AS SECURITY FOR 
                    INTELLIGENCE COLLECTION ACTIVITIES ABROAD.

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

SEC. 922. PILOT PROGRAM ON CRYPTOLOGIC SERVICE TRAINING.

    (a) Program Authorized.--The Director of the National 
Security Agency may carry out a pilot program on cryptologic 
service training for the intelligence community.
    (b) Objective of Program.--The objective of the pilot 
program is to increase the number of qualified entry-level 
language analysts and intelligence analysts available to the 
National Security Agency and the other elements of the 
intelligence community through the directed preparation and 
recruitment of qualified entry-level language analysts and 
intelligence analysts who commit to a period of service or a 
career in the intelligence community.
    (c) Program Scope.--The pilot program shall be national in 
scope.
    (d) Program Participants.--(1) Subject to the provisions of 
this subsection, the Director shall select the participants in 
the pilot program from among individuals qualified to 
participate in the pilot program utilizing such procedures as 
the Director considers appropriate for purposes of the pilot 
program.
    (2) Each individual who receives financial assistance under 
the pilot program shall perform one year of obligated service 
with the National Security Agency, or another element of the 
intelligence community approved by the Director, for each 
academic year for which such individual receives such financial 
assistance upon such individual's completion of post-secondary 
education.
    (3) Each individual selected to participate in the pilot 
program shall be qualified for a security clearance appropriate 
for the individual under the pilot program.
    (4) The total number of participants in the pilot program 
at any one time may not exceed 400 individuals.
    (e) Program Management.--In carrying out the pilot program, 
the Director shall--
            (1) identify individuals interested in working in 
        the intelligence community, and committed to taking 
        college-level courses that will better prepare them for 
        a career in the intelligence community as a language 
        analyst or intelligence analyst;
            (2) provide each individual selected for 
        participation in the pilot program--
                    (A) financial assistance for the pursuit of 
                courses at institutions of higher education 
                selected by the Director in fields of study 
                that will qualify such individual for 
                employment by an element of the intelligence 
                community as a language analyst or intelligence 
                analyst; and
                    (B) educational counseling on the selection 
                of courses to be so pursued; and
            (3) provide each individual so selected information 
        on the opportunities available for employment in the 
        intelligence community.
    (f) Duration of Program.--(1) The Director shall terminate 
the pilot program not later than six years after the date of 
the enactment of this Act.
    (2) The termination of the pilot program under paragraph 
(1) shall not prevent the Director from continuing to provide 
assistance, counseling, and information under subsection (e) to 
individuals who are participating in the pilot program on the 
date of termination of the pilot program throughout the 
academic year in progress as of that date.

                       Subtitle D--Other Matters

SEC. 931. STRATEGIC PLAN FOR DESTRUCTION OF LETHAL CHEMICAL AGENTS AND 
                    MUNITIONS STOCKPILE.

    Subsection (d) of section 1412 of the Department of Defense 
Authorization Act, 1986 (50 U.S.C. 1521), is amended to read as 
follows:
    ``(d) Requirement for Strategic Plan.--(1) The Under 
Secretary of Defense for Acquisition, Technology, and Logistics 
and the Secretary of the Army shall jointly prepare, and from 
time to time shall update as appropriate, a strategic plan for 
future activities for destruction of the United States' 
stockpile of lethal chemical agents and munitions.
    ``(2) The plan shall include, at a minimum, the following 
considerations:
            ``(A) Realistic budgeting for stockpile destruction 
        and related support programs.
            ``(B) Contingency planning for foreseeable or 
        anticipated problems.
            ``(C) A management approach and associated actions 
        that address compliance with the obligations of the 
        United States under the Chemical Weapons Convention 
        treaty and that take full advantage of opportunities to 
        accelerate destruction of the stockpile.
    ``(3) The Secretary of Defense shall each year submit to 
the Committee on the Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives the 
strategic plan as most recently prepared and updated under 
paragraph (1). Such submission shall be made each year at the 
time of the submission to the Congress that year of the 
President's budget for the next fiscal year.''.

SEC. 932. SECRETARY OF DEFENSE CRITERIA FOR AND GUIDANCE ON 
                    IDENTIFICATION AND INTERNAL TRANSMISSION OF 
                    CRITICAL INFORMATION.

    (a) Criteria for Critical Information.--(1) The Secretary 
of Defense shall establish criteria for determining categories 
of critical information that should be made known expeditiously 
to senior civilian and military officials in the Department of 
Defense. Those categories should be limited to matters of 
extraordinary significance and strategic impact to which rapid 
access by those officials is essential to the successful 
accomplishment of the national security strategy or a major 
military mission. The Secretary may from time to time modify 
the list to suit the current strategic situation.
    (2) The Secretary shall provide the criteria established 
under paragraph (1) to the Chairman of the Joint Chiefs of 
Staff, the Secretaries of the military departments, the 
commanders of the unified and specified commands, the 
commanders of deployed forces, and such other elements of the 
Department of Defense as the Secretary considers necessary.
    (b) Matters To Be Included.--The criteria established under 
subsection (a) shall include, at a minimum, requirement for 
identification of the following:
            (1) Any incident that may result in a contingency 
        operation, based on the incident's nature, gravity, or 
        potential for significant adverse consequences to 
        United States citizens, military personnel, interests, 
        or assets, including an incident that could result in 
        significant adverse publicity having a major strategic 
        impact.
            (2) Any event, development, or situation that could 
        be reasonably assumed to escalate into an incident 
        described in paragraph (1).
            (3) Any deficiency or error in policy, standards, 
        or training that could be reasonably assumed to have 
        the effects described in paragraph (1).
    (c) Requirements for Transmission of Critical 
Information.--The criteria under subsection (a) shall include 
such requirements for transmission of such critical information 
to such senior civilian and military officials of the 
Department of Defense as the Secretary of Defense considers 
appropriate.
    (d) Time for Issuance of Criteria.--The Secretary of 
Defense shall establish the criteria required by subsection (a) 
not later than 120 days after the date of the enactment of this 
Act.

                      TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. United States contribution to NATO common-funded budgets in 
          fiscal year 2005.
Sec. 1003. Budget justification documents for operation and maintenance.
Sec. 1004. Licensing of intellectual property.
Sec. 1005. Repeal of funding restrictions concerning development of 
          medical countermeasures against biological warfare threats.
Sec. 1006. Report on budgeting for exchange rates for foreign currency 
          fluctuations.
Sec. 1007. Fiscal year 2004 transfer authority.
Sec. 1008. Clarification of fiscal year 2004 funding level for a 
          National Institute of Standards and Technology account.
Sec. 1009. Notification of fund transfers from working-capital funds.
Sec. 1010. Charges for Defense Logistics Information Services materials.

                 Subtitle B--Naval Vessels and Shipyards

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

                     Subtitle C--Counterdrug Matters

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

       Subtitle D--Matters Relating to Museums and Commemorations

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

                           Subtitle E--Reports

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

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

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

                 Subtitle G--Personnel Security Matters

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

               Subtitle H--Transportation-Related Matters

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

                        Subtitle I--Other Matters

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

                     Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

    (a) Authority To Transfer Authorizations.--(1) Upon 
determination by the Secretary of Defense that such action is 
necessary in the national interest, the Secretary may transfer 
amounts of authorizations made available to the Department of 
Defense in this division for fiscal year 2005 between any such 
authorizations for that fiscal year (or any subdivisions 
thereof). Amounts of authorizations so transferred shall be 
merged with and be available for the same purposes as the 
authorization to which transferred.
    (2) The total amount of authorizations that the Secretary 
may transfer under the authority of this section may not exceed 
$3,500,000,000.
    (b) Limitations.--The authority provided by this section to 
transfer authorizations--
            (1) may only be used to provide authority for items 
        that have a higher priority than the items from which 
        authority is transferred; and
            (2) may not be used to provide authority for an 
        item that has been denied authorization by Congress.
    (c) Effect on Authorization Amounts.--A transfer made from 
one account to another under the authority of this section 
shall be deemed to increase the amount authorized for the 
account to which the amount is transferred by an amount equal 
to the amount transferred.
    (d) Notice to Congress.--The Secretary shall promptly 
notify Congress of each transfer made under subsection (a).

SEC. 1002. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED BUDGETS IN 
                    FISCAL YEAR 2005.

    (a) Fiscal Year 2005 Limitation.--The total amount 
contributed by the Secretary of Defense in fiscal year 2005 for 
the common-funded budgets of NATO may be any amount up to, but 
not in excess of, the amount specified in subsection (b) 
(rather than the maximum amount that would otherwise be 
applicable to those contributions under the fiscal year 1998 
baseline limitation).
    (b) Total Amount.--The amount of the limitation applicable 
under subsection (a) is the sum of the following:
            (1) The amounts of unexpended balances, as of the 
        end of fiscal year 2004, of funds appropriated for 
        fiscal years before fiscal year 2005 for payments for 
        those budgets.
            (2) The amount specified in subsection (c)(1).
            (3) The amount specified in subsection (c)(2).
            (4) The total amount of the contributions 
        authorized to be made under section 2501.
    (c) Authorized Amounts.--Amounts authorized to be 
appropriated by titles II and III of this Act are available for 
contributions for the common-funded budgets of NATO as follows:
            (1) Of the amount provided in section 201(1), 
        $756,000 for the Civil Budget.
            (2) Of the amount provided in section 301(1), 
        $222,492,000 for the Military Budget.
    (d) Definitions.--For purposes of this section:
            (1) Common-funded budgets of nato.--The term 
        ``common-funded budgets of NATO'' means the Military 
        Budget, the Security Investment Program, and the Civil 
        Budget of the North Atlantic Treaty Organization (and 
        any successor or additional account or program of 
        NATO).
            (2) Fiscal year 1998 baseline limitation.--The term 
        ``fiscal year 1998 baseline limitation'' means the 
        maximum annual amount of Department of Defense 
        contributions for common-funded budgets of NATO that is 
        set forth as the annual limitation in section 
        3(2)(C)(ii) of the resolution of the Senate giving the 
        advice and consent of the Senate to the ratification of 
        the Protocols to the North Atlantic Treaty of 1949 on 
        the Accession of Poland, Hungary, and the Czech 
        Republic (as defined in section 4(7) of that 
        resolution), approved by the Senate on April 30, 1998.

SEC. 1003. BUDGET JUSTIFICATION DOCUMENTS FOR OPERATION AND 
                    MAINTENANCE.

    (a) In General.--(1) Chapter 9 of title 10, United States 
Code, is amended by adding after section 232, as added by 
section 214(a), the following new section:

``Sec. 233. Operation and maintenance budget presentation

    ``(a) Identification of Baseline Amounts in O&M 
Justification Documents.--In any case in which the amount 
requested in the President's budget for a fiscal year for a 
Department of Defense operation and maintenance program, 
project, or activity is different from the amount appropriated 
for that program, project, or activity for the current year, 
the O&M justification documents supporting that budget shall 
identify that appropriated amount and the difference between 
that amount and the amount requested in the budget, stated as 
an amount and as a percentage.
    ``(b) Navy for Ship Depot Maintenance and for Intermediate 
Ship Maintenance.--In the O&M justification documents for the 
Navy for any fiscal year, amounts requested for ship depot 
maintenance and amounts requested for intermediate ship 
maintenance shall be identified and distinguished.
    ``(c) Definitions.--In this section:
            ``(1) The term `O&M justification documents' means 
        Department of Defense budget justification documents 
        with respect to accounts for operation and maintenance 
        submitted to the congressional defense committees in 
        support of the Department of Defense component of the 
        President's budget for any fiscal year.
            ``(2) The term `President's budget' means the 
        budget of the President submitted to Congress under 
        section 1105 of title 31 for any fiscal year.
            ``(3) The term `current year' means the fiscal year 
        during which the President's budget is submitted in any 
        year.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding after the item relating to section 232, as 
added by section 214(b), the following new item:

``233. Operation and maintenance budget presentation.''.

    (b) Components of Line Items for Other Costs and Other 
Contracts.--Not later than March 1, 2005, the Secretary of 
Defense shall submit to the congressional defense committees a 
report setting forth the component elements of the line items 
identified as ``Other Costs'' and ``Other Contracts'' in the 
exhibit identified as ``Summary of Price and Program Changes'' 
in the budget justification materials submitted to those 
committees in support of the budget for fiscal year 2006.

SEC. 1004. LICENSING OF INTELLECTUAL PROPERTY.

    (a) Authority.--Subchapter II of chapter 134 of title 10, 
United States Code, is amended by adding at the end the 
following new section:

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

    ``(a) Authority.--Under regulations prescribed by the 
Secretary of Defense, the Secretary concerned may license 
trademarks, service marks, certification marks, and collective 
marks owned or controlled by the Secretary concerned and may 
retain and expend fees received from such licensing in 
accordance with this section.
    ``(b) Designated Marks.--The Secretary concerned shall 
designate the trademarks, service marks, certification marks, 
and collective marks regarding which the Secretary will 
exercise the authority to retain licensing fees under this 
section.
    ``(c) Use of Fees.--The Secretary concerned shall use fees 
retained under this section for the following purposes:
            ``(1) For payment of the following costs incurred 
        by the Secretary:
                    ``(A) Costs of securing trademark 
                registrations.
                    ``(B) Costs of operating the licensing 
                program under this section.
            ``(2) For morale, welfare, and recreation 
        activities under the jurisdiction of the Secretary, to 
        the extent (if any) that the total amount of the 
        licensing fees available under this section for a 
        fiscal year exceed the total amount needed for such 
        fiscal year under paragraph (1).
    ``(d) Availability.--Fees received in a fiscal year and 
retained under this section shall be available for obligation 
in such fiscal year and the following two fiscal years.
    ``(e) Definitions.--In this section, the terms `trademark', 
`service mark', `certification mark', and `collective mark' 
have the meanings given such terms in section 45 of the Act of 
July 5, 1946 (commonly referred to as the Trademark Act of 
1946; 15 U.S.C. 1127).''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such subchapter is amended by adding at the end 
the following new item:

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

SEC. 1005. REPEAL OF FUNDING RESTRICTIONS CONCERNING DEVELOPMENT OF 
                    MEDICAL COUNTERMEASURES AGAINST BIOLOGICAL WARFARE 
                    THREATS.

    (a) Repeal.--Section 2370a of title 10, United States Code, 
is repealed.
    (b) Clerical Amendment.--The table of sections at the 
beginning of chapter 139 of such title is amended by striking 
the item relating to that section.

SEC. 1006. REPORT ON BUDGETING FOR EXCHANGE RATES FOR FOREIGN CURRENCY 
                    FLUCTUATIONS.

    (a) Secretary of Defense Report.--(1) Not later than 
December 1, 2004, the Secretary of Defense shall submit to the 
Committee on Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives a report on the 
foreign currency exchange rate projection used in annual 
Department of Defense budget presentations.
    (2) In the report under paragraph (1), the Secretary 
shall--
            (A) identify alternative approaches for selecting 
        foreign currency exchange rates that would produce more 
        realistic estimates of amounts required to be 
        appropriated or otherwise made available for the 
        Department of Defense to accommodate foreign currency 
        exchange rate fluctuations;
            (B) discuss the advantages and disadvantages of 
        each approach identified pursuant to subparagraph (A); 
        and
            (C) identify the Secretary's preferred approach 
        among the alternatives identified pursuant to 
        subparagraph (A) and provide the Secretary's rationale 
        for preferring that approach.
    (3) In identifying alternative approaches pursuant to 
paragraph (2)(A), the Secretary shall examine--
            (A) approaches used by other Federal departments 
        and agencies; and
            (B) the feasibility of using private economic 
        forecasting.
    (b) Comptroller General Review and Report.--The Comptroller 
General shall review the report under subsection (a), including 
the basis for the Secretary's conclusions stated in the report, 
and shall submit, not later than January 15, 2005, to the 
Committee on Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives a report 
containing the results of that review.

SEC. 1007. FISCAL YEAR 2004 TRANSFER AUTHORITY.

    Section 1001(a)(2) of the National Defense Authorization 
Act for Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1582) 
is amended by striking ``$2,500,000,000'' and inserting 
``$2,800,000,000''.

SEC. 1008. CLARIFICATION OF FISCAL YEAR 2004 FUNDING LEVEL FOR A 
                    NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY 
                    ACCOUNT.

    For the purposes of applying sections 204 and 605 of the 
Departments of Commerce, Justice, and State, the Judiciary, and 
Related Agencies Appropriations Act, 2004 (division B of Public 
Law 108-199) to matters in title II of such Act under the 
heading ``National Institute of Standards and Technology'' (118 
Stat. 69), in the account under the heading ``industrial 
technology services'', the Secretary of Commerce shall make all 
determinations based on the Industrial Technology Services 
funding level of $218,782,000 for reprogramming and 
transferring of funds for the Manufacturing Extension 
Partnership program and may submit such a reprogramming or 
transfer, as the case may be, to the appropriate committees 
within 30 days after the date of the enactment of this Act.

SEC. 1009. NOTIFICATION OF FUND TRANSFERS FROM WORKING-CAPITAL FUNDS.

    Section 2208 of title 10, United States Code, is amended by 
adding at the end the following new subsection:
    ``(r) Notification of Transfers.--(1) Notwithstanding any 
authority provided in this section to transfer funds, the 
transfer of funds from a working-capital fund, including a 
transfer to another working-capital fund, shall not be made 
under such authority unless the Secretary of Defense submits, 
in advance, a notification of the proposed transfer to the 
congressional defense committees in accordance with customary 
procedures.
    ``(2) The amount of a transfer covered by a notification 
under paragraph (1) that is made in a fiscal year does not 
count toward any limitation on the total amount of transfers 
that may be made for that fiscal year under authority provided 
to the Secretary of Defense in a law authorizing appropriations 
for a fiscal year for military activities of the Department of 
Defense or a law making appropriations for the Department of 
Defense.''.

SEC. 1010. CHARGES FOR DEFENSE LOGISTICS INFORMATION SERVICES 
                    MATERIALS.

    (a) Authority.--Subchapter I of chapter 8 of title 10, 
United States Code, is amended by adding at the end the 
following new section:

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

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

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

                Subtitle B--Naval Vessels and Shipyards

SEC. 1011. AUTHORITY FOR AWARD OF CONTRACTS FOR SHIP DISMANTLING ON 
                    NET-COST BASIS.

    (a) In General.--Chapter 633 of title 10, United States 
Code, is amended by inserting after section 7305 the following 
new section:

``Sec. 7305a. Vessels stricken from Naval Vessel Register: contracts 
                    for dismantling on net-cost basis

    ``(a) Authority for Net-Cost Basis Contracts.--When the 
Secretary of the Navy awards a contract for the dismantling of 
a vessel stricken from the Naval Vessel Register, the Secretary 
may award the contract on a net-cost basis.
    ``(b) Retention by Contractor of Proceeds of Sale of Scrap 
and Reusable Items.--When the Secretary awards a contract on a 
net-cost basis under subsection (a), the Secretary shall 
provide in the contract that the contractor may retain the 
proceeds from the sale of scrap and reusable items removed from 
the vessel dismantled under the contract.
    ``(c) Definitions.--In this section:
            ``(1) The term `net-cost basis', with respect to a 
        contract for the dismantling of a vessel, means that 
        the amount to be paid to the contractor under the 
        contract for dismantling and for removal and disposal 
        of hazardous waste material is discounted by the 
        offeror's estimate of the value of scrap and reusable 
        items that the contractor will remove from the vessel 
        during performance of the contract.
            ``(2) The term `scrap' means personal property that 
        has no value except for its basic material content.
            ``(3) The term `reusable item' means a 
        demilitarized component or a removable portion of a 
        vessel or equipment that the Secretary of the Navy has 
        identified as excess to the needs of the Navy but which 
        has potential resale value on the open market.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 7305 the following new item:

``7305a. Vessels stricken from Naval Vessel Register: contracts for 
          dismantling on net-cost basis.''.

SEC. 1012. USE OF PROCEEDS FROM EXCHANGE AND SALE OF OBSOLETE NAVY 
                    SERVICE CRAFT AND BOATS.

    (a) Costs of Preparation for Disposal.--(1) Chapter 633 of 
title 10, United States Code, is amended by inserting after 
section 7311 the following new section:

``Sec. 7312. Service craft stricken from Naval Vessel Register; 
                    obsolete boats: use of proceeds from exchange or 
                    sale

    ``(a) Exchange or Sale of Similar Items.--When the 
Secretary of the Navy sells an obsolete service craft or an 
obsolete boat, or exchanges such a craft or boat in a 
transaction for which a similar craft or boat is acquired, the 
Secretary may retain the proceeds of the sale or the exchange 
allowance from the exchange, as the case may be, and apply the 
proceeds of sale or the exchange allowance for any of the 
following purposes:
            ``(1) For payment, in whole or in part, for a 
        similar service craft or boat acquired as a 
        replacement, as authorized by section 503 of title 40.
            ``(2) For reimbursement, to the extent practicable, 
        of the appropriate accounts of the Navy for the full 
        costs of preparation of such obsolete craft or boat for 
        such sale or exchange.
            ``(3) For deposit to the special account 
        established under subsection (b), to be available in 
        accordance with that subsection.
    ``(b) Special Account.--Amounts retained under subsection 
(a) that are not applied as provided in paragraph (1) or (2) of 
that subsection shall be deposited into a special account. 
Amounts in the account shall be available under subsection (c) 
without regard to fiscal year limitation. Amounts in the 
account that the Secretary of the Navy determines are not 
needed for the purpose stated in subsection (c) shall be 
transferred at least annually to the General Fund of the 
Treasury.
    ``(c) Costs of Preparation of Obsolete Service Craft and 
Boats for Future Sale or Exchange.--The Secretary may use 
amounts in the account under subsection (b) for payment, in 
whole or in part, for the full costs of preparation of obsolete 
service craft and obsolete boats for future sale or exchange.
    ``(d) Costs of Preparation for Sale or Exchange.--In this 
section, the term `full costs of preparation' means the full 
costs (direct and indirect) incurred by the Navy in preparing 
an obsolete service craft or an obsolete boat for exchange or 
sale, including the cost of the following:
            ``(1) Towing.
            ``(2) Storage.
            ``(3) Defueling.
            ``(4) Removal and disposal of hazardous wastes.
            ``(5) Environmental surveys to determine the 
        presence of regulated materials containing 
        polychlorinated biphenyl (PCB) and, if such materials 
        are found, the removal and disposal of such materials.
            ``(6) Other costs related to such preparation.
    ``(e) Obsolete Service Craft.--For purposes of this 
section, an obsolete service craft is a service craft that has 
been stricken from the Naval Vessel Register.
    ``(f) Inapplicability of Advertising Requirement.--Section 
3709 of the Revised Statutes (41 U.S.C. 5) does not apply to 
sales of service craft and boats described in subsection (a).
    ``(g) Regulations.--The Secretary of the Navy shall 
prescribe regulations for the purposes of this section.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 7311 
the following new item:

``7312. Service craft stricken from Naval Vessel Register; obsolete 
          boats: use of proceeds from exchange or sale.''.

    (b) Applicability.--Section 7312 of title 10, United States 
Code, as added by subsection (a), shall apply with respect to 
amounts received on or after the date of the enactment of this 
Act and to amounts received before the date of the enactment of 
this Act and not obligated as of that date.

SEC. 1013. TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN RECIPIENTS.

    (a) Transfers by Grant.--The President is authorized to 
transfer vessels to foreign recipients on a grant basis under 
section 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 
2321j), as follows:
            (1) Chile.--To the Government of Chile, the 
        SPRUANCE class destroyer USS O'BANNON (DD-987).
            (2) Portugal.--To the Government of Portugal, the 
        OLIVER HAZARD PERRY class guided missile frigates 
        GEORGE PHILIP (FFG-12) and SIDES (FFG-14).
    (b) Transfers by Sale.--The President is authorized to 
transfer vessels to foreign recipients on a sale basis under 
section 21 of the Arms Export Control Act (22 U.S.C. 2761), as 
follows:
            (1) Chile.--To the Government of Chile, the 
        SPRUANCE class destroyer FLETCHER (DD-992).
            (2) Taiwan.--To the Taipei Economic and Cultural 
        Representative Office of the United States (which is 
        the Taiwan instrumentality designated pursuant to 
        section 10(a) of the Taiwan Relations Act (22 U.S.C. 
        3309(a))), the ANCHORAGE class dock landing ship 
        ANCHORAGE (LSD-36).
    (c) Grants Not Counted in Annual Total of Transferred 
Excess Defense Articles.--The value of a vessel transferred to 
another country on a grant basis pursuant to authority provided 
by subsection (a) shall not be counted against the aggregate 
value of excess defense articles transferred to countries in 
any fiscal year under section 516(g) of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2321j(g)).
    (d) Costs of Transfers.--Any expense incurred by the United 
States in connection with a transfer authorized under 
subsection (a) or (b) shall be charged to the recipient.
    (e) Repair and Refurbishment in United States Shipyards.--
To the maximum extent practicable, the President shall require, 
as a condition of the transfer of a vessel under this section, 
that the country to which the vessel is transferred have such 
repair or refurbishment of the vessel as is needed, before the 
vessel joins the naval forces of that country, performed at a 
shipyard located in the United States, including a United 
States Navy shipyard.
    (f) Expiration of Authority.--The authority to transfer a 
vessel under this section shall expire at the end of the two-
year period beginning on the date of the enactment of this Act.

SEC. 1014. INDEPENDENT STUDY TO ASSESS COST EFFECTIVENESS OF THE NAVY 
                    SHIP CONSTRUCTION PROGRAM.

    (a) Study.--The Secretary of Defense shall provide for a 
study of the cost effectiveness of the ship construction 
program of the Navy. The study shall be conducted by a group of 
industrial experts independent of the Department of Defense. 
The study shall examine both--
            (1) a variety of approaches by which the Navy ship 
        construction program could be made more efficient in 
        the near term; and
            (2) a variety of approaches by which, with a 
        nationally integrated effort over the next decade, the 
        United States shipbuilding industry might enhance its 
        health and viability.
    (b) Near-Term Improvements in Efficiency.--With respect to 
the examination under subsection (a)(1) of approaches by which 
the Navy ship construction program could be made more efficient 
in the near term, the Secretary shall provide for the persons 
conducting the study to--
            (1) determine the potential cost savings on an 
        annual basis, with an estimate of return on investment, 
        from implementation of each approach examined; and
            (2) establish priorities for potential 
        implementation of the approaches examined.
    (c) United States Shipbuilding Infrastructure Modernization 
Plan.--With respect to the examination under subsection (a)(2) 
of approaches by which the United States shipbuilding industry 
might enhance its health and viability through a nationally 
integrated effort over the next decade, the Secretary shall 
provide for the persons conducting the study to--
            (1) propose a plan incorporating a variety of 
        approaches that would modernize the United States 
        shipbuilding infrastructure within the next decade, 
        resulting in a healthier and more viable shipbuilding 
        industrial base;
            (2) establish priorities for potential 
        implementation of the approaches examined; and
            (3) estimate the resources required to implement 
        each of the approaches examined.
    (d) Report.--Not later than October 1, 2005, the Secretary 
of Defense shall submit a report to the congressional defense 
committees providing the results of the study under subsection 
(a). The report shall include the matters specified in 
subsections (b) and (c).

SEC. 1015. LIMITATION ON DISPOSAL OF OBSOLETE NAVAL VESSEL.

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

                    Subtitle C--Counterdrug Matters

SEC. 1021. USE OF FUNDS FOR UNIFIED COUNTERDRUG AND COUNTERTERRORISM 
                    CAMPAIGN IN COLOMBIA.

    (a) Authority.--(1) In fiscal years 2005 and 2006, funds 
available to the Department of Defense to provide assistance to 
the Government of Colombia may be used by the Secretary of 
Defense to support a unified campaign by the Government of 
Colombia against narcotics trafficking and against activities 
by organizations designated as terrorist organizations, such as 
the Revolutionary Armed Forces of Colombia (FARC), the National 
Liberation Army (ELN), and the United Self-Defense Forces of 
Colombia (AUC).
    (2) The authority to provide assistance for a campaign 
under this subsection includes authority to take actions to 
protect human health and welfare in emergency circumstances, 
including the undertaking of rescue operations.
    (b) Applicability of Certain Laws and Limitations.--The use 
of funds pursuant to the authority in subsection (a) shall be 
subject to the following:
            (1) Sections 556, 567, and 568 of the Foreign 
        Operations, Export Financing, and Related Programs 
        Appropriations Act, 2002 (Public Law 107-115; 115 Stat. 
        2160, 2165, and 2166).
            (2) Section 8076 of the Department of Defense 
        Appropriations Act, 2005 (Public Law 108-287; 118 Stat. 
        988).
    (c) Numerical Limitation on Assignment of United States 
Personnel.--Notwithstanding section 3204(b) of the Emergency 
Supplemental Act, 2000 (Division B of Public Law 106-246; 114 
Stat. 575), as amended by the Foreign Operations, Export 
Financing, and Related Programs Appropriations Act, 2002 
(Public Law 107-115; 115 Stat. 2131), the number of United 
States personnel assigned to conduct activities in Colombia in 
connection with support of Plan Colombia under subsection (a) 
in fiscal years 2005 and 2006 shall be subject to the following 
limitations:
            (1) The number of United States military personnel 
        assigned for temporary or permanent duty in Colombia in 
        connection with support of Plan Colombia may not exceed 
        800.
            (2) The number of United States individual citizens 
        retained as contractors in Colombia in connection with 
        support of Plan Colombia who are funded by Federal 
        funds may not exceed 600.
    (d) Limitation on Participation of United States 
Personnel.--No United States Armed Forces personnel, United 
States civilian employees, or United States civilian contractor 
personnel employed by the United States may participate in any 
combat operation in connection with assistance using funds 
pursuant to the authority in subsection (a), except for the 
purpose of acting in self defense or of rescuing any United 
States citizen, including any United States Armed Forces 
personnel, United States civilian employee, or civilian 
contractor employed by the United States.
    (e) Relation to Other Authority.--The authority provided by 
subsection (a) is in addition to any other authority in law to 
provide assistance to the Government of Colombia.
    (f) Report on Relationships Between Terrorist Organizations 
in Colombia and Foreign Governments and Organizations.--(1) Not 
later than 60 days after the date of the enactment of this Act, 
the Secretary of State, in consultation with the Secretary of 
Defense and the Director of Central Intelligence, shall submit 
to the congressional defense committees and the Committee on 
Foreign Relations of the Senate and the Committee on 
International Relations of the House of Representatives a 
report that describes--
            (A) any relationships between foreign governments 
        or organizations and organizations based in Colombia 
        that have been designated as foreign terrorist 
        organizations under United States law, including the 
        provision of any direct or indirect assistance to such 
        organizations; and
            (B) United States policies that are designed to 
        address such relationships.
    (2) The report under paragraph (1) shall be submitted in 
unclassified form, but may include a classified annex.

SEC. 1022. SENSE OF CONGRESS AND REPORT REGARDING COUNTER-DRUG EFFORTS 
                    IN AFGHANISTAN.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) the President should make the substantial 
        reduction of illegal drug trafficking in Afghanistan a 
        priority in the Global War on Terrorism;
            (2) the Secretary of Defense, in coordination with 
        the Secretary of State and the heads of other 
        appropriate Federal agencies, should expand cooperation 
        with the Government of Afghanistan and international 
        organizations involved in counter-drug activities to 
        assist in providing a secure environment for counter-
        drug personnel in Afghanistan; and
            (3) the United States, in conjunction with the 
        Government of Afghanistan and coalition partners, 
        should undertake additional efforts to reduce illegal 
        drug trafficking and related activities that provide 
        financial support for terrorist organizations in 
        Afghanistan and neighboring countries.
    (b) Report Required.--(1) The Secretary of Defense and the 
Secretary of State shall jointly prepare a report that 
describes--
            (A) the progress made towards substantially 
        reducing poppy cultivation and heroin production 
        capabilities in Afghanistan; and
            (B) the extent to which profits from illegal drug 
        activity in Afghanistan are used to financially support 
        terrorist organizations and groups seeking to undermine 
        the Government of Afghanistan.
    (2) The report required by this subsection shall be 
submitted to Congress not later than 120 days after the date of 
the enactment of this Act.

       Subtitle D--Matters Relating to Museums and Commemorations

SEC. 1031. RECOGNITION OF THE LIBERTY MEMORIAL MUSEUM, KANSAS CITY, 
                    MISSOURI, AS AMERICA'S NATIONAL WORLD WAR I MUSEUM.

    (a) Findings.--Congress makes the following findings:
            (1) The Liberty Memorial Museum in Kansas City, 
        Missouri, was built in honor of those individuals who 
        served in World War I in defense of liberty and the 
        United States.
            (2) The Liberty Memorial Association, the nonprofit 
        organization that originally built the Liberty Memorial 
        Museum, is responsible for the finances, operations, 
        and collections management of the Liberty Memorial 
        Museum.
            (3) The Liberty Memorial Museum is the only public 
        museum in the United States that exists for the 
        exclusive purpose of interpreting the experiences of 
        the United States and its allies in the World War I 
        years (1914-1918), both on the battlefield and on the 
        home front.
            (4) The Liberty Memorial Museum project began after 
        the 1918 Armistice through the efforts of a large-
        scale, grass-roots civic and fundraising effort by the 
        citizens of the Kansas City metropolitan area, 
        including veterans of World War I. After the conclusion 
        of a national architectural design competition, ground 
        was broken in 1921, construction began in 1923, and the 
        Liberty Memorial Museum was opened to the public in 
        1926.
            (5) In 1994, the Liberty Memorial Museum closed for 
        a massive restoration and expansion project. The 
        restored museum reopened to the public on Memorial Day 
        in 2002 during a gala rededication ceremony.
            (6) Exhibits prepared for the original museum 
        buildings presaged the dramatic, underground expansion 
        of core exhibition gallery space, with over 30,000 
        square feet of new interpretive and educational 
        exhibits currently in development. The new exhibits, 
        along with an expanded research library and archives, 
        will more fully utilize the many thousands of 
        historical objects, books, maps, posters, photographs, 
        diaries, letters, and reminiscences of World War I 
        participants that are preserved for posterity in the 
        collections of the Liberty Memorial Museum. The new 
        core exhibition is scheduled to open on Veterans Day in 
        2006.
            (7) The City of Kansas City, the State of Missouri, 
        and thousands of private donors and philanthropic 
        foundations have contributed millions of dollars to 
        first build and later restore the Liberty Memorial 
        Museum. The Liberty Memorial Museum continues to 
        receive the strong support of residents from the States 
        of Missouri and Kansas and across the United States.
            (8) Since its restoration and rededication in 2002, 
        the Liberty Memorial Museum has attracted thousands of 
        visitors from across the United States and many foreign 
        countries.
            (9) There remains a need to preserve in a museum 
        setting evidence of the honor, courage, patriotism, and 
        sacrifice of those Americans who offered their services 
        and who gave their lives in defense of liberty during 
        World War I, evidence of the roles of women and African 
        Americans during World War I, and evidence of other 
        relevant subjects.
            (10) The Liberty Memorial Museum seeks to educate a 
        diverse group of audiences through its comprehensive 
        collection of historical materials, emphasizing 
        eyewitness accounts of the participants on the 
        battlefield and the home front and the impact of World 
        War I on individuals, then and now. The Liberty 
        Memorial Museum continues to actively acquire and 
        preserve such materials.
            (11) A great opportunity exists to use the 
        invaluable resources of the Liberty Memorial Museum to 
        teach the ``Lessons of Liberty'' to schoolchildren in 
        the United States through on-site visits, classroom 
        curriculum development, distance-learning activities, 
        and other educational initiatives.
            (12) The Liberty Memorial Museum should remain the 
        foremost museum in the United States regarding the 
        national experience in the World War I years, which 
        people can visit to learn about World War I and where 
        the history of this monumental struggle will be 
        preserved so that current and future generations may 
        understand the role played by the United States in the 
        preservation and advancement of democracy, freedom, and 
        liberty in the early 20th century.
            (13) The work of the Liberty Memorial Museum to 
        recognize and preserve the history of the Nation's 
        sacrifices in World War I will take on added 
        significance as the centennial observance of the war 
        approaches.
            (14) It is fitting and proper to refer to the 
        Liberty Memorial Museum as ``America's National World 
        War I Museum''.
    (b) Congressional Recognition.--Congress--
            (1) recognizes the Liberty Memorial Museum in 
        Kansas City, Missouri, including the museum's future 
        and expanded exhibits, collections, library, archives, 
        and educational programs, as ``America's National World 
        War I Museum'';
            (2) recognizes that the continuing collection, 
        preservation, and interpretation of the historical 
        objects and other historical materials held by the 
        Liberty Memorial Museum will enhance the knowledge and 
        understanding of the experiences of the United States 
        and its allies in the World War I years (1914-1918), 
        both on the battlefield and on the home front;
            (3) commends the ongoing development and visibility 
        of the ``Lessons of Liberty'' educational outreach 
        programs prepared by the Liberty Memorial Museum for 
        teachers and students throughout the United States; and
            (4) encourages present generations of Americans to 
        understand the magnitude of World War I, how it shaped 
        the United States, other countries, and later world 
        events, and how the sacrifices made by Americans then 
        helped preserve liberty, democracy, and other founding 
        principles of the United States for generations to 
        come.

SEC. 1032. PROGRAM TO COMMEMORATE 60TH ANNIVERSARY OF WORLD WAR II.

    (a) In General.--For fiscal year 2005, the Secretary of 
Defense may conduct a program--
            (1) to commemorate the 60th anniversary of World 
        War II; and
            (2) to coordinate, support, and facilitate other 
        such commemoration programs and activities of the 
        Federal Government, State and local governments, and 
        other persons.
    (b) Program Activities.--The program referred to in 
subsection (a) may include activities and ceremonies--
            (1) to provide the people of the United States with 
        a clear understanding and appreciation of the lessons 
        and history of World War II;
            (2) to thank and honor veterans of World War II and 
        their families;
            (3) to pay tribute to the sacrifices and 
        contributions made on the home front by the people of 
        the United States;
            (4) to foster an awareness in the people of the 
        United States that World War II was the central event 
        of the 20th century that defined the postwar world;
            (5) to highlight advances in technology, science, 
        and medicine related to military research conducted 
        during World War II;
            (6) to inform wartime and postwar generations of 
        the contributions of the Armed Forces of the United 
        States to the United States;
            (7) to recognize the contributions and sacrifices 
        made by World War II allies of the United States; and
            (8) to highlight the role of the Armed Forces of 
        the United States, then and now, in maintaining world 
        peace through strength.
    (c) Establishment of Account.--(1) There is established in 
the Treasury of the United States an account to be known as the 
``Department of Defense 60th Anniversary of World War II 
Commemoration Account'' which shall be administered by the 
Secretary as a single account.
    (2) There shall be deposited in the account, from amounts 
appropriated to the Department of Defense for operation and 
maintenance of Defense Agencies, such amounts as the Secretary 
considers appropriate to conduct the program referred to in 
subsection (a).
    (3) The Secretary may use the funds in the account 
established in paragraph (1) only for the purpose of conducting 
the program referred to in subsection (a).
    (4) Not later than 60 days after the termination of the 
authority of the Secretary to conduct the program referred to 
in subsection (a), the Secretary shall transmit to the 
Committee on Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives a report 
containing an accounting of all the funds deposited into and 
expended from the account or otherwise expended under this 
section, and of any amount remaining in the account. 
Unobligated funds which remain in the account after termination 
of the authority of the Secretary under this section shall be 
held in the account until transferred by law after the 
Committees receive the report.
    (d) Acceptance of Voluntary Services.--(1) Notwithstanding 
section 1342 of title 31, United States Code, the Secretary may 
accept from any person voluntary services to be provided in 
furtherance of the program referred to in subsection (a).
    (2) A person providing voluntary services under this 
subsection shall be considered to be an employee for the 
purposes of chapter 81 of title 5, United States Code, relating 
to compensation for work-related injuries. Such a person who is 
not otherwise employed by the Federal Government shall not be 
considered to be a Federal employee for any other purposes by 
reason of the provision of such service.
    (3) The Secretary may reimburse a person providing 
voluntary services under this subsection for incidental 
expenses incurred by such person in providing such services. 
The Secretary shall determine which expenses are eligible for 
reimbursement under this paragraph.

SEC. 1033. ANNUAL REPORT ON DEPARTMENT OF DEFENSE OPERATION AND 
                    FINANCIAL SUPPORT FOR MILITARY MUSEUMS.

    (a) Report Required.--Chapter 23 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 489. Annual report on Department of Defense operation and 
                    financial support for military museums

    ``(a) Report Required.--As part of the budget materials 
submitted to Congress in connection with the submission of the 
budget for a fiscal year pursuant to section 1105 of title 31, 
but in no case later than March 15 of each year, the Secretary 
of Defense shall submit a report identifying all military 
museums that, during the most recently completed fiscal year--
            ``(1) were operated by the Secretary of Defense or 
        the Secretary of a military department;
            ``(2) were otherwise supported using funds 
        appropriated to the Department of Defense; or
            ``(3) were located on property under the 
        jurisdiction of the Department of Defense, although 
        neither operated by the Department of Defense nor 
        supported using funds appropriated to the Department of 
        Defense.
    ``(b) Information on Individual Museums.--For each museum 
identified in a report under this section, the Secretary of 
Defense shall include in the report the following:
            ``(1) The purpose and functions of the museum and 
        the justification for the museum.
            ``(2) A description of the facilities dedicated to 
        the museum, including the location, size, and type of 
        facilities and whether the facilities are included or 
        eligible for inclusion on the National Register of 
        Historic Places.
            ``(3) An itemized listing of the funds appropriated 
        to the Department of Defense that were obligated to 
        support the museum during the fiscal year covered by 
        the report and a description of the process used to 
        determine the annual allocation of Department of 
        Defense funds for the museum.
            ``(4) An itemized listing of any other Federal 
        funds, funds from a nonappropriated fund 
        instrumentality account of the Department of Defense, 
        and non-Federal funds obligated to support the museum.
            ``(5) The management structure of the museum, 
        including identification of the persons responsible for 
        preparing the budget for the museum and for making 
        acquisition and management decisions for the museum.
            ``(6) The number of civilian employees of the 
        Department of Defense and members of the armed forces 
        who served full-time or part-time at the museum and 
        their role in the management structure of the museum.
    ``(c) Information on Support Priorities.--Each report under 
this section shall also include a separate description of the 
procedures used by the Secretary of Defense, in the case of 
museums identified in the report that are operated or supported 
by the Secretary of Defense, and the Secretary of a military 
department, in the case of museums identified in the report 
that are operated or supported by that Secretary, to prioritize 
funding and personnel support to the museums. The Secretary of 
Defense shall include a description of any such procedures 
applicable to the entire Department of Defense.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``489. Annual report on Department of Defense operation and financial 
          support for military museums.''.

                          Subtitle E--Reports

SEC. 1041. QUARTERLY DETAILED ACCOUNTING FOR OPERATIONS CONDUCTED AS 
                    PART OF THE GLOBAL WAR ON TERRORISM.

    (a) Quarterly Accounting.--Not later than 45 days after the 
end of each quarter of a year, the Secretary of Defense shall 
submit to the congressional defense committees, for each 
operation specified in subsection (b)--
            (1) a full accounting of all costs incurred for 
        such operation during such quarter and all amounts 
        expended during such quarter for such operation; and
            (2) a description of the purposes for which those 
        costs were incurred and those amounts were expended.
    (b) Operations Covered.--The operations referred to in 
subsection (a) are the following:
            (1) Operation Iraqi Freedom.
            (2) Operation Enduring Freedom.
            (3) Operation Noble Eagle.
            (4) Any other operation that the President 
        designates as being an operation of the Global War on 
        Terrorism.
    (c) Requirement for Comprehensiveness.--For the purpose of 
providing a full and complete accounting of the costs and 
expenditures under subsection (a) for an operation specified in 
subsection (b), the Secretary shall account in the quarterly 
submission under subsection (a) for all costs and expenditures 
that are reasonably attributable to that operation, including 
personnel costs.

SEC. 1042. REPORT ON POST-MAJOR COMBAT OPERATIONS PHASE OF OPERATION 
                    IRAQI FREEDOM.

    (a) Report Required.--(1) Not later than June 1, 2005, the 
Secretary of Defense shall submit to the congressional defense 
committees a report on the conduct of military operations 
during the post-major combat operations phase of Operation 
Iraqi Freedom.
    (2) The report shall be prepared in consultation with the 
Chairman of the Joint Chiefs of Staff, the commander of the 
United States Central Command, and such other officials as the 
Secretary considers appropriate.
    (b) Content.--(1) The report shall include a discussion of 
the matters described in paragraph (2), with a particular 
emphasis on accomplishments and shortcomings and on near-term 
and long-term corrective actions to address such shortcomings.
    (2) The matters to be discussed in the report are as 
follows:
            (A) The military and political objectives of the 
        international coalition conducting the post-major 
        combat operations phase of Operation Iraqi Freedom, and 
        the military strategy selected to achieve such 
        objectives, together with an assessment of the 
        execution of the military strategy.
            (B) The mobilization process for the reserve 
        components of the Armed Forces, including the 
        timeliness of notification, training and certification, 
        and subsequent demobilization.
            (C) The use and performance of major items of 
        United States military equipment, weapon systems, and 
        munitions (including non-lethal weapons and munitions, 
        items classified under special access procedures, and 
        items drawn from prepositioned stocks) and any expected 
        effects of the experience with the use and performance 
        of such items on the doctrinal and tactical employment 
        of such items and on plans for continuing the 
        acquisition of such items.
            (D) Any additional requirements for military 
        equipment, weapon systems, munitions, force structure, 
        or other capability identified during the post-major 
        combat operations phase of Operation Iraqi Freedom, 
        including changes in type or quantity for future 
        operations.
            (E) The effectiveness of joint air operations, 
        together with an assessment of the effectiveness of--
                    (i) the employment of close air support; 
                and
                    (ii) attack helicopter operations.
            (F) The use of special operations forces, including 
        operational and intelligence uses.
            (G) The scope of logistics support, including 
        support to and from other nations and from 
        international organizations and organizations and 
        individuals from the private sector in Iraq.
            (H) The incidents of accidental fratricide, 
        including a discussion of the effectiveness of the 
        tracking of friendly forces and the use of the combat 
        identification systems in mitigating friendly fire 
        incidents.
            (I) The adequacy of spectrum and bandwidth to 
        transmit information to operational forces and assets, 
        including unmanned aerial vehicles, ground vehicles, 
        and individual soldiers.
            (J) The effectiveness of strategic, operational, 
        and tactical information operations, including 
        psychological operations and assets, organization, and 
        doctrine related to civil affairs, in achieving 
        established objectives, together with a description of 
        technological and other restrictions on the use of 
        information operations capabilities.
            (K) The readiness of the reserve component forces 
        used in the post-major combat operations phase of 
        Operation Iraqi Freedom, including an assessment of the 
        success of the reserve component forces in 
        accomplishing their missions.
            (L) The adequacy of intelligence support during the 
        post-major combat operations phase of Operation Iraqi 
        Freedom, including the adequacy of such support in 
        searches for weapons of mass destruction.
            (M) The rapid insertion and integration, if any, of 
        developmental but mission-essential equipment, 
        organizations, or procedures during the post-major 
        combat operations phase of Operation Iraqi Freedom.
            (N) A description of the coordination, 
        communication, and unity of effort between the Armed 
        Forces, the Coalition Provisional Authority, other 
        United States government agencies and organizations, 
        nongovernmental organizations, and political, security, 
        and nongovernmental organizations of Iraq, including an 
        assessment of the effectiveness of such efforts.
            (O) The adequacy of training for military units 
        once deployed to the area of operations of the United 
        States Central Command, including training for changes 
        in unit mission and continuation training for high-
        intensity conflict missions.
            (P) An estimate of the funding required to return 
        or replace equipment used through the period covered by 
        the report in Operation Iraqi Freedom, including 
        equipment in prepositioned stocks, to mission-ready 
        condition.
            (Q) A description of military civil affairs and 
        reconstruction efforts, including efforts through the 
        Commanders Emergency Response Program, and an 
        assessment of the effectiveness of such efforts and 
        programs.
            (R) The adequacy of the requirements determination 
        and acquisition processes, acquisition, and 
        distribution of force protection equipment, including 
        personal gear, vehicles, helicopters, and defense 
        devices.
            (S) The most critical lessons learned that could 
        lead to long-term doctrinal, organizational, and 
        technological changes, and the probable effects that an 
        implementation of those changes would have on current 
        visions, goals, and plans for transformation of the 
        Armed Forces or the Department of Defense.
            (T) The planning for and implementation of morale, 
        welfare, and recreation programs for deployed forces 
        and support to dependents, including rest and 
        recuperation programs and personal communication 
        benefits such as telephone, mail, and email services, 
        including an assessment of the effectiveness of such 
        programs.
            (U) An analysis of force rotation plans, including 
        individual personnel and unit rotations, differing 
        deployment lengths, and in-theater equipment repair and 
        leave behinds.
            (V) The organization of United States Central 
        Command to conduct post-conflict operations and lessons 
        for other combatant commands to conduct other such 
        operations in the future.
    (c) Form of Report.--The report shall be submitted in 
unclassified form, but may include a classified annex.
    (d) Post-Major Combat Operations Phase of Operation Iraqi 
Freedom Defined.--In this section, the term ``post-major combat 
operations phase of Operation Iraqi Freedom'' means the period 
of Operation Iraqi Freedom beginning on May 2, 2003, and ending 
on December 31, 2004.

SEC. 1043. REPORT ON TRAINING PROVIDED TO MEMBERS OF THE ARMED FORCES 
                    TO PREPARE FOR POST-CONFLICT OPERATIONS.

    (a) Study on Training.--The Secretary of Defense shall 
conduct a study to determine the extent to which members of the 
Armed Forces assigned to duty in support of contingency 
operations receive training in preparation for post-conflict 
operations and to evaluate the quality of such training.
    (b) Matters To Be Included in Study.--As part of the study 
under subsection (a), the Secretary shall specifically evaluate 
the following:
            (1) The doctrine, training, and leader-development 
        system necessary to enable members of the Armed Forces 
        to successfully operate in post-conflict operations.
            (2) The adequacy of the curricula at military 
        educational facilities to ensure that the Armed Forces 
        has a cadre of members skilled in post-conflict duties, 
        including a familiarity with applicable foreign 
        languages and foreign cultures.
            (3) The training time and resources available to 
        members and units of the Armed Forces to develop 
        awareness about ethnic backgrounds, religious beliefs, 
        and political structures of the people living in areas 
        in which the Armed Forces operate and areas in which 
        post-conflict operations are likely to occur.
            (4) The adequacy of training transformation to 
        emphasize post-conflict operations, including 
        interagency coordination in support of commanders of 
        combatant commands.
    (c) Report on Study.--Not later than May 1, 2005, the 
Secretary shall submit to the Committee on Armed Services of 
the Senate and the Committee on Armed Services of the House of 
Representatives a report on the result of the study conducted 
under this section.

SEC. 1044. REPORT ON ESTABLISHING NATIONAL CENTERS OF EXCELLENCE FOR 
                    UNMANNED AERIAL AND GROUND VEHICLES.

    (a) Report Required.--Not later than 120 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall submit to the congressional defense committees a report 
on the need for one or more national centers of excellence for 
unmanned aerial and ground vehicles.
    (b) Goal of Centers.--The goal of the centers covered by 
the report is to promote interservice cooperation and 
coordination in the following areas:
            (1) Development of joint doctrine for the 
        organization, training, and use of unmanned aerial and 
        ground vehicles.
            (2) Joint research, development, test, and 
        evaluation, and joint procurement of unmanned aerial 
        and ground vehicles.
            (3) Identification and coordination, in conjunction 
        with the private sector and academia, of the future 
        development of unmanned aerial and ground vehicles.
            (4) Monitoring of the development and utilization 
        of unmanned aerial and ground vehicles in other nations 
        for both military and non-military purposes.
            (5) The providing of joint training and 
        professional development opportunities in the use and 
        operation of unmanned aerial and ground vehicles to 
        military personnel of all ranks and levels of 
        responsibility.
    (c) Report Requirements.--The report shall include, at a 
minimum, the following:
            (1) A list of facilities at which the Department of 
        Defense currently conducts or plans to conduct 
        research, development, and testing activities on 
        unmanned aerial and ground vehicles.
            (2) A list of facilities at which the Department of 
        Defense currently deploys or has committed to deploying 
        unmanned aerial or ground vehicles.
            (3) The extent to which existing facilities 
        described in paragraphs (1) and (2) have sufficient 
        unused capacity and expertise to research, develop, 
        test, and deploy the current and next generations of 
        unmanned aerial and ground vehicles and to provide for 
        the development of doctrine on the use and training of 
        operators of such vehicles.
            (4) The extent to which efficiencies with respect 
        to research, development, testing, and deployment of 
        existing or future unmanned aerial and ground vehicles 
        can be achieved through consolidation at one or more 
        national centers of excellence for unmanned aerial and 
        ground vehicles.
            (5) A list of potential locations for the national 
        centers of excellence under this section.
    (d) Considerations.--In determining the potential locations 
for the national centers of excellence under this section, the 
Secretary of Defense shall take into consideration existing 
military facilities that have--
            (1) a workforce of skilled personnel;
            (2) existing capacity of runways and other 
        facilities to accommodate the research, development, 
        testing, and deployment of current and future unmanned 
        aerial vehicles; and
            (3) minimal restrictions on the research, 
        development, testing, and deployment of unmanned aerial 
        vehicles resulting from proximity to large population 
        centers or airspace heavily utilized by commercial 
        flights.

SEC. 1045. STUDY OF CONTINUED REQUIREMENT FOR TWO-CREW MANNING FOR 
                    BALLISTIC MISSILE SUBMARINES.

    (a) Study and Determination.--The Secretary of Defense 
shall conduct a study of whether the practice of using two 
alternating crews (referred to as the ``Gold Crew'' and the 
``Blue Crew'') for manning of ballistic missile submarines 
(SSBNs) continues to be justified under the changed 
circumstances since the end of the Cold War and, based on that 
study, shall make a determination of whether that two-crew 
manning practice should be continued or should be modified or 
terminated.
    (b) Report.--Not later than six months after the date of 
the enactment of this Act, the Secretary shall submit to the 
Committees on Armed Services of the Senate and House of 
Representatives a report providing notice of the Secretary's 
determination under subsection (a) and the reasons for that 
determination.

SEC. 1046. REPORT ON DEPARTMENT OF DEFENSE PROGRAMS FOR PREPOSITIONING 
                    OF MATERIEL AND EQUIPMENT.

    (a) Secretary of Defense Assessment and Report.--(1) The 
Secretary of Defense shall conduct an assessment of the 
programs of the Armed Forces for the prepositioning of materiel 
and equipment. Such assessment shall focus on how those 
programs will support the goal of the Secretary to have the 
capability, from the onset of a contingency situation, to--
            (A) deploy forces to a distant theater within 10 
        days;
            (B) defeat an enemy within 30 days; and
            (C) be ready for an additional conflict within 
        another 30 days.
    (2) The Secretary shall submit to Congress a report on such 
assessment not later than October 1, 2005.
    (b) Matters to Be Included.--The assessment under 
subsection (a) shall include the following:
            (1) A review of the prepositioning of materiel and 
        equipment used in Operation Iraqi Freedom and Operation 
        Enduring Freedom, including identification of 
        challenges and potential solutions.
            (2) A description of changes to doctrine, strategy, 
        and transportation plans that could be necessary to 
        support the goal of the Secretary described in 
        subsection (a).
            (3) A description of modifications to 
        prepositioning programs that could be required in order 
        to incorporate modularity concepts, future force 
        structure changes, and sea-basing concepts.
            (4) A discussion of joint operations and training 
        that support force projection requirements, including--
                    (A) theater opening requirements at 
                potential aerial and sea ports of debarkation;
                    (B) joint force reception capabilities;
                    (C) joint theater distribution operations; 
                and
                    (D) use of joint prepositioned stocks, 
                materiel, and systems.

SEC. 1047 REPORT ON AL QAEDA AND ASSOCIATED GROUPS IN LATIN AMERICA AND 
                    THE CARIBBEAN.

    (a) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall, in 
consultation with the Secretary of State, submit to the 
Committees on Armed Services of the Senate and House of 
Representatives a report on the activities of al Qaeda and 
associated groups in Latin America and the Caribbean, 
including--
            (1) an assessment of the extent to which such 
        groups have established a presence in the area;
            (2) a description of the activities of such groups 
        in the area, including fundraising, money laundering, 
        narcotrafficking, and associations with criminal 
        groups;
            (3) an assessment of the threat posed by such 
        groups to the peace and stability of the nations in the 
        area and to United States interests; and
            (4) a description of United States policies 
        intended to deal with such a threat.
    (b) Form of Report.--The report shall be submitted in 
unclassified form, but may include a classified annex.

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

SEC. 1051. ACCEPTANCE OF COMMUNICATIONS EQUIPMENT PROVIDED BY LOCAL 
                    PUBLIC SAFETY AGENCIES.

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

``Sec. 2613. Emergency communications equipment: acceptance from local 
                    public safety agencies for temporary use related to 
                    disasters

    ``(a) Authority to Accept Equipment.--(1) Subject to 
subsection (c), the Secretary concerned--
            ``(1) may accept communications equipment for use 
        in coordinating joint response and recovery operations 
        with public safety agencies in the event of a disaster; 
        and
            ``(2) may accept services related to the operation 
        and maintenance of such equipment.
    ``(b) Regulations.--The authority under subsection (a) 
shall be exercised under regulations prescribed by the 
Secretary of Defense.
    ``(c) Limitations.--(1) Equipment may be accepted under 
subsection (a)(1) only to the extent that communications 
equipment under the control of the Secretary concerned at the 
potential disaster response site is inadequate to meet military 
requirements for communicating with public safety agencies 
during the period of response to the disaster.
    ``(2) Services may be accepted under subsection (a)(2) 
related to the operation and maintenance of communications 
equipment only to the extent that the necessary capabilities 
are not available to the military commander having custody of 
the equipment.
    ``(c) Liability.--A person providing services accepted 
under this section may not be considered, by reason of the 
provision of such services, to be an officer, employee, or 
agent of the United States for any purpose.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``2613. Emergency communications equipment: acceptance from local public 
          safety agencies for temporary use related to disasters.''.

SEC. 1052. DETERMINATION AND REPORT ON FULL-TIME AIRLIFT SUPPORT FOR 
                    HOMELAND DEFENSE OPERATIONS.

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

SEC. 1053. SURVIVABILITY OF CRITICAL SYSTEMS EXPOSED TO CHEMICAL OR 
                    BIOLOGICAL CONTAMINATION.

    (a) Requirement for Implementation Plan.--Not later than 
120 days after the date of the enactment of this Act, the 
Secretary of Defense shall submit to the Committee on Armed 
Services of the Senate and the Committee on Armed Services of 
the House of Representatives a plan, for implementation by the 
Department of Defense, that sets forth a systematic approach 
for ensuring the survivability of defense critical systems upon 
contamination of any such system by chemical or biological 
agents.
    (b) Content.--At a minimum, the plan under subsection (a) 
shall include the following:
            (1) Policies for ensuring that the survivability of 
        defense critical systems in the event of contamination 
        by chemical or biological agents is adequately 
        addressed throughout the Department of Defense.
            (2) A systematic process for identifying those 
        systems which are defense critical systems.
            (3) Specific testing procedures to be used during 
        the design and development of new defense critical 
        systems.
            (4) A centralized database that--
                    (A) contains comprehensive information on 
                the effects of chemical and biological agents 
                and decontaminants on materials used in defense 
                critical systems; and
                    (B) is easily accessible to personnel who 
                have duties to ensure the survivability of 
                defense critical systems upon contamination of 
                such systems by chemical and biological agents.
    (c) Defense Critical System Defined.--In this section, the 
term ``defense critical system'' means a Department of Defense 
system that, as determined by the Secretary of Defense, is 
vital to an essential defense mission.

                 Subtitle G--Personnel Security Matters

SEC. 1061. USE OF NATIONAL DRIVER REGISTER FOR PERSONNEL SECURITY 
                    INVESTIGATIONS AND DETERMINATIONS.

    Section 30305(b) of title 49, United States Code, is 
amended--
            (1) by redesignating paragraphs (9) through (11) as 
        paragraphs (10) through (12), respectively; and
            (2) by inserting after paragraph (8) the following 
        new paragraph:
    ``(9) An individual who has or is seeking access to 
national security information for purposes of Executive Order 
No. 12968, or any successor Executive order, or an individual 
who is being investigated for Federal employment under 
authority of Executive Order No. 10450, or any successor 
Executive order, may request the chief driver licensing 
official of a State to provide information about the individual 
pursuant to subsection (a) of this section to a Federal 
department or agency that is authorized to investigate the 
individual for the purpose of assisting in the determination of 
the eligibility of the individual for access to national 
security information or for Federal employment in a position 
requiring access to national security information. A Federal 
department or agency that receives information about an 
individual under the preceding sentence may use such 
information only for purposes of the authorized investigation 
and only in accordance with applicable law.''.

SEC. 1062. STANDARDS FOR DISQUALIFICATION FROM ELIGIBILITY FOR 
                    DEPARTMENT OF DEFENSE SECURITY CLEARANCE.

    (a) Disqualified Persons.--Subsection (c)(1) of section 986 
of title 10, United States Code, is amended--
            (1) by striking ``and'' and inserting ``, was''; 
        and
            (2) by inserting before the period at the end the 
        following: ``, and was incarcerated as a result of that 
        sentence for not less than one year''.
    (b) Waiver Authority.--Subsection (d) of such section is 
amended to read as follows:
    ``(d) Waiver Authority.--In a meritorious case, an 
exception to the prohibition in subsection (a) may be 
authorized for a person described in paragraph (1) or (4) of 
subsection (c) if there are mitigating factors. Any such waiver 
may be authorized only in accordance with standards and 
procedures prescribed by, or under the authority of, an 
Executive order or other guidance issued by the President.''.

               Subtitle H--Transportation-Related Matters

SEC. 1071. USE OF MILITARY AIRCRAFT TO TRANSPORT MAIL TO AND FROM 
                    OVERSEAS LOCATIONS.

    (a) Authority for Use of Military Aircraft.--Section 3401 
of title 39, United States Code, is amended--
            (1) in subsection (b)--
                    (A) in the matter preceding paragraph 
                (1)(A), by striking ``title 49,'' and inserting 
                ``title 49, or on military aircraft at rates 
                not to exceed those so fixed and determined for 
                scheduled United States air carriers,''; and
                    (B) in the sentence following paragraph 
                (3), by striking ``carriers'' each place it 
                appears and inserting ``carriers and military 
                aircraft''; and
            (2) in subsection (c)--
                    (A) in the first sentence, by striking 
                ``title 49,'' and inserting ``title 49, or on 
                military aircraft at rates not to exceed those 
                so fixed and determined for scheduled United 
                States air carriers,''; and
                    (B) in the second sentence--
                            (i) by inserting ``and military 
                        aircraft'' after ``carriers'' the first 
                        place it appears; and
                            (ii) by striking ``by air carriers 
                        other than scheduled United States air 
                        carriers'' and inserting ``by other 
                        than scheduled United States air 
                        carriers and military aircraft''.
    (b) Definition.--Such section is further amended by adding 
at the end the following new subsection:
    ``(g) In this section:
            ``(1) The term `military aircraft' means an 
        aircraft owned, operated, or chartered by the 
        Department of Defense.
            ``(2) The term `United States air carrier' has the 
        meaning given the term `air carrier' in section 40102 
        of title 49.''.

SEC. 1072. REORGANIZATION AND CLARIFICATION OF CERTAIN PROVISIONS 
                    RELATING TO CONTROL AND SUPERVISION OF 
                    TRANSPORTATION WITHIN THE DEPARTMENT OF DEFENSE.

    (a) Transfer of Certain Transportation Authorities.--
Sections 4744, 4745, 4746, and 4747 of title 10, United States 
Code, are transferred to chapter 157 of such title, inserted 
(in that order) at the end of such chapter, and redesignated as 
sections 2648, 2649, 2650, and 2651, respectively.
    (b) Clarification of Applicability of Transferred 
Authorities Throughout the Department of Defense.--(1) Section 
2648 of such title, as transferred and redesignated by 
subsection (a), is amended--
            (A) by striking ``Secretary of the Army'' in the 
        matter preceding paragraph (1) and inserting 
        ``Secretary of Defense'';
            (B) by striking ``Army transport agencies'' in the 
        matter preceding paragraph (1) and all that follows 
        through ``military transport agency of'';
            (C) by striking paragraphs (1), (2), and (3);
            (D) by redesignating paragraph (4), (5), (6), and 
        (7) as paragraphs (1), (2), (3), and (4), respectively;
            (E) by redesignating paragraph (8) as paragraph (5) 
        and in that paragraph striking ``persons described in 
        clauses (1), (2), (4), (5), and (7)'' and inserting 
        ``members of the armed forces, officers and employees 
        of the Department of Defense or the Coast Guard, and 
        persons described in paragraphs (1), (2), and (4)''; 
        and
            (F) by striking ``clause (7) or (8)'' in the last 
        sentence and inserting ``paragraph (4) or (5)''.
    (2) Section 2649 of such title, as transferred and 
redesignated by subsection (a), is amended--
            (A) by striking the section heading and inserting 
        the following:

``Sec. 2649. Civilian passengers and commercial cargoes: transportation 
                    on Department of Defense vessels'';

            (B) by striking ``(1) on vessels'' and all that 
        follows through ``Department of the Army'';
            (C) by striking ``any transport agency of''; and
            (D) by striking ``Secretary of the Army'' and all 
        that follows through ``be transported'' and inserting 
        ``Secretary of Defense, be transported''.
    (3) Section 2650 of such title, as transferred and 
redesignated by subsection (a), is amended--
            (A) in the matter preceding paragraph (1), by 
        striking ``Army transport agencies'' and all that 
        follows through ``military transport agency of'';
            (B) in paragraph (1), by striking ``Secretary of 
        the Army'' and inserting ``Secretary of Defense''; and
            (C) in paragraph (4), by striking ``by air--'' and 
        all that follows through ``the transportation cannot'' 
        and inserting ``by air, the transportation cannot''.
    (4) Section 2651 of such title, as transferred and 
redesignated by subsection (a), is amended by striking ``Army 
transport agencies'' and all that follows and inserting ``the 
Department of Defense, under regulations and at rates to be 
prescribed by the Secretary of Defense.''.
    (c) Repeal of Superseded and Obsolete Provisions.--The 
following sections of such title are repealed: sections 4741, 
4743, 9741, 9743, and 9746.
    (d) Clerical Amendments.--
            (1) The table of sections at the beginning of 
        chapter 157 of such title is amended by adding at the 
        end the following new items:

``2648. Persons and supplies: sea transportation.
``2649. Civilian passengers and commercial cargoes: transportation on 
          Department of Defense vessels.
``2650. Civilian personnel in Alaska.
``2651. Passengers and merchandise to Guam: sea transport.''.

            (2) The table of sections at the beginning of 
        chapter 447 of such title is amended by striking the 
        items relating to sections 4741, 4743, 4744, 4745, 
        4746, and 4747.
            (3) The table of sections at the beginning of 
        chapter 947 of such title is amended by striking the 
        items relating to sections 9741, 9743, and 9746.

SEC. 1073. EVALUATION OF PROCUREMENT PRACTICES RELATING TO 
                    TRANSPORTATION OF SECURITY-SENSITIVE CARGO.

    (a) Evaluation Requirement.--The Secretary of Defense shall 
evaluate the procurement practices of the Department of Defense 
in the award of service contracts for domestic freight 
transportation for security-sensitive cargo (such as arms, 
ammunitions, explosives, and classified material) to determine 
whether such practices are in the best interests of the 
Department of Defense.
    (b) Report.--Not later than January 1, 2005, the Secretary 
of Defense shall submit to the Committees on Armed Services of 
the House of Representatives and the Senate a report on the 
results of the evaluation conducted under subsection (a).

                       Subtitle I--Other Matters

SEC. 1081. LIABILITY PROTECTION FOR DEPARTMENT OF DEFENSE VOLUNTEERS 
                    WORKING IN MARITIME ENVIRONMENT.

    Section 1588(d)(1)(B) of title 10, United States Code, is 
amended by inserting before the period at the end the 
following: ``and the Act of March 9, 1920, commonly known as 
the `Suits in Admiralty Act' (41 Stat. 525; 46 U.S.C. App. 741 
et seq.) and the Act of March 3, 1925, commonly known as the 
`Public Vessels Act' (43 Stat. 1112; 46 U.S.C. App. 781 et 
seq.) (relating to claims for damages or loss on navigable 
waters)''.

SEC. 1082. SENSE OF CONGRESS CONCERNING MEDIA COVERAGE OF THE RETURN TO 
                    THE UNITED STATES OF THE REMAINS OF DECEASED 
                    MEMBERS OF THE ARMED FORCES FROM OVERSEAS.

    (a) Findings.--Congress makes the following findings:
            (1) The Department of Defense, since 1991, has 
        relied on a policy of no media coverage of the 
        transfers of the remains of deceased members of the 
        Armed Forces--
                    (A) at Ramstein Air Force Base, Germany;
                    (B) at Dover Air Force Base, Delaware, and 
                the Port Mortuary Facility at Dover Air Force 
                Base; and
                    (C) at interim stops en route to the point 
                of final destination in the transfer of the 
                remains.
            (2) The principal focus and purpose of the policy 
        is to protect the wishes and the privacy of families of 
        deceased members of the Armed Forces during their time 
        of great loss and grief and to give families and 
        friends of the dead the privilege to decide whether to 
        allow media coverage at the member's duty or home 
        station, at the interment site, or at or in connection 
        with funeral and memorial services.
            (3) In a 1991 legal challenge to the Department of 
        Defense policy, as applied during Operation Desert 
        Storm, the policy was upheld by the United States 
        District Court for the District of Columbia, and on 
        appeal, by the United States Court of Appeals for the 
        District of Columbia in the case of JB Pictures, Inc. 
        v. Department of Defense and Donald B. Rice, Secretary 
        of the Air Force on the basis that denying the media 
        the right to view the return of remains at Dover Air 
        Force Base does not violate the first amendment 
        guarantees of freedom of speech and of the press.
            (4) The United States Court of Appeals for the 
        District of Columbia in that case cited the following 
        two key Government interests that are served by the 
        Department of Defense policy:
                    (A) Reducing the hardship on the families 
                and friends of the war dead, who may feel 
                obligated to travel great distances to attend 
                arrival ceremonies at Dover Air Force Base if 
                such ceremonies were held.
                    (B) Protecting the privacy of families and 
                friends of the dead, who may not want media 
                coverage of the unloading of caskets at Dover 
                Air Force Base.
            (5) The Court also noted, in that case, that the 
        bereaved may be upset at the public display of the 
        caskets of their loved ones and that the policy gives 
        the family the right to grant or deny access to the 
        media at memorial or funeral services at the home base 
        and that the policy is consistent in its concern for 
        families.
    (b) Sense of Congress.--It is the sense of Congress that 
the Department of Defense policy regarding no media coverage of 
the transfer of the remains of deceased members of the Armed 
Forces--
            (1) appropriately protects the privacy of the 
        families and friends of the deceased; and
            (2) is consistent with United States constitutional 
        guarantees of freedom of speech and freedom of the 
        press.

SEC. 1083. TRANSFER OF HISTORIC F3A-1 BREWSTER CORSAIR AIRCRAFT.

    (a) Authority to Convey.--The Secretary of the Navy may 
convey, without consideration, to Lex Cralley of Princeton 
Minnesota (in this section referred to as ``transferee''), all 
right, title, and interest of the United States in and to a 
F3A-1 Brewster Corsair aircraft (Bureau Number 04634). The 
conveyance shall be made by means of a deed of gift.
    (b) Condition of Aircraft.--The aircraft shall be conveyed 
under subsection (a) in its current unflyable, ``as is'' 
condition. The Secretary is not required to repair or alter the 
condition of the aircraft before conveying ownership of the 
aircraft.
    (c) Conveyance at No Cost to the United States.--The 
conveyance of the aircraft under subsection (a) shall be made 
at no cost to the United States. Any costs associated with the 
conveyance and costs of operation and maintenance of the 
aircraft conveyed shall be borne by the transferee.
    (d) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
a conveyance under this section as the Secretary considers 
appropriate to protect the interests of the United States.

SEC.1084. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) Clarification of Definition of ``Operational Range''.--
Section 101(e)(3) of title 10, United States Code, is amended 
by striking ``Secretary of Defense'' and inserting ``Secretary 
of a military department''.
    (b) Amendments Relating to Definition of Congressional 
Defense Committees.--Title 10, United States Code, is amended 
as follows:
            (1) Section 2215 is amended--
                    (A) by striking ``(a) Certification 
                Required.--'';
                    (B) by striking ``congressional committees 
                specified in subsection (b)'' and inserting 
                ``congressional defense committees''; and
                    (C) by striking subsection (b).
            (2) Section 2306b(g) is amended by striking 
        ``Committee on'' the first place it appears and all 
        that follows through ``House of Representatives'' and 
        inserting ``congressional defense committees''.
            (3) Section 2515(d) is amended--
                    (A) by striking ``(1)'' before ``The 
                Secretary'';
                    (B) by striking ``congressional committees 
                specified in paragraph (2)'' and inserting 
                ``congressional defense committees''; and
                    (C) by striking paragraph (2).
            (4) Section 2676(d) is amended by striking 
        ``appropriate committees of Congress'' at the end of 
        the first sentence and inserting ``congressional 
        defense committees''.
    (c) Amendments Relating to Change of Name of GAO.--Title 
10, United States Code, is amended as follows:
            (1) Section 1084 is amended by striking ``General 
        Accounting Office'' and inserting ``Comptroller 
        General''.
            (2) Section 1102(d)(2) is amended by striking 
        ``General Accounting Office'' and inserting 
        ``Comptroller General''.
            (3) Section 2014(g) is amended by striking 
        ``General Accounting Office'' and inserting 
        ``Government Accountability Office''.
    (d) Miscellaneous Amendments to Title 10, United States 
Code.--Title 10, United States Code, is amended as follows:
            (1) The tables of chapters at the beginning of 
        subtitle A, and at the beginning of part I of subtitle 
        A, are amended by striking ``481'' in the item relating 
        to chapter 23 and inserting ``480''.
            (2) Section 130a is amended--
                    (A) by striking ``Effective October 1, 
                2002, the'' in subsection (a) and inserting 
                ``The'';
                    (B) by striking ``baseline number'' in 
                subsection (a) and all that follows through 
                ``means the'' in subsection (c);
                    (C) by transferring subsection (e) so as to 
                appear before subsection (d) and redesignating 
                that subsection as subsection (b);
                    (D) by redesignating subsections (d) and 
                (f) as subsection (c) and (d), respectively; 
                and
                    (E) by striking subsection (g).
            (3) Section 437(c) is amended by inserting ``(50 
        U.S.C. 415b)'' after ``National Security Act of 1947''.
            (4) Section 487(d) is amended by striking ``Other 
        Definitions'' and inserting ``Inapplicability to Coast 
        Guard''.
            (5) Section 503(c)(1)(B) is amended by striking 
        ``education'' in the second sentence and inserting 
        ``educational''.
            (6) Section 632(c)(1) is amended--
                    (A) by striking ``paragraph (2)'' and 
                inserting ``paragraph (3)''; and
                    (B) by striking ``under that paragraph'' 
                and inserting ``under that subsection''.
            (7) The item relating to section 1076b in the table 
        of sections at the beginning of chapter 55 is amended 
        to read as follows:

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

            (8) Section 1108(e) is amended by striking 
        ``heath'' and inserting ``health''.
            (9) Section 1406(g) is amended--
                    (A) by striking ``section 305'' and 
                inserting ``section 245''; and
                    (B) by striking ``Officers Act of 2002'' 
                and inserting ``Officer Corps Act of 2002 (33 
                U.S.C. 3045)''.
            (10) Sections 1448(b)(1)(F), 1448(d)(2)(B), 
        1448(d)(6)(A), and 1458(j) are amended by striking ``on 
        or after the date of the enactment of the National 
        Defense Authorization Act for Fiscal Year 2004'' and 
        inserting ``after November 23, 2003,''.
            (11) Sections 1463(a)(1), 1465(c)(1)(A), 
        1465(c)(1)(B), 1465(c)(4)(A), 1465(c)(4)(B), and 
        1466(b)(2)(D) are amended by striking ``1413, 1413a,'' 
        and inserting ``1413a''.
            (12) Section 1557(b) is amended by striking 
        ``Effective October 1, 2002, final'' and inserting 
        ``Final''.
            (13) Section 1566 is amended--
                    (A) in subsection (g)(2), by striking ``the 
                date that is 6 months after the date of the 
                enactment of the Help America Vote Act of 
                2002'' in the last sentence and inserting 
                ``April 29, 2003''; and
                    (B) in subsections (h), (i)(1), and (i)(3), 
                by striking ``Armed Forces'' and inserting 
                ``armed forces''.
            (14) Sections 1724(d) and 1732(d)(1) are amended by 
        striking ``its decision'' in the second sentence and 
        inserting ``the decision of the Secretary''.
            (15) Section 1761(b) is amended--
                    (A) in the matter preceding paragraph (1), 
                by striking ``provide for--'' and inserting 
                ``provide for the following:'';
                    (B) in paragraphs (1), (2), and (3), by 
                capitalizing the first letter of the first 
                word;
                    (C) at the end of paragraphs (1) and (2), 
                by striking the semicolon and inserting a 
                period;
                    (D) at the end of paragraph (3), by 
                striking ``; and'' and inserting a period; and
                    (E) by striking paragraph (4).
            (16) Section 2193b(c)(2) is amended by striking 
        ``the date of the enactment of this section'' and 
        inserting ``October 5, 1999''.
            (17) Section 2224(c) is amended in the matter 
        preceding paragraph (1) by striking ``subtitle II of 
        chapter 35'' and inserting ``subchapter II of chapter 
        35''.
            (18) Section 2349(d) is amended by striking 
        ``section 2350a(i)(3)'' and inserting ``section 
        2350a(i)(2)''.
            (19) Section 2350b(g) is amended--
                    (A) in the matter preceding paragraph (1), 
                by inserting ``the Secretary of Defense'' after 
                ``authorizing''; and
                    (B) in paragraph (1), by striking ``the 
                Secretary of Defense''.
            (20) Section 2474(f)(2) is amended by striking 
        ``section 2466(e)'' and inserting ``section 2466(d)''.
            (21) Section 2540(b)(2) is amended by inserting ``, 
        as in effect on that date'' before the period at the 
        end.
            (22) Section 2662(a)(2) is amended--
                    (A) in the first sentence, by striking 
                ``must include a summarization'' and inserting 
                ``shall include a summary''; and
                    (B) in the second sentence, by inserting 
                ``of paragraph (1)'' after ``in subparagraph 
                (E)''.
            (23) Section 2672a(a) is amended--
                    (A) in the matter preceding paragraph (1), 
                by inserting ``in any case in which the 
                Secretary determines'' after ``in land'';
                    (B) in paragraph (1), by striking ``the 
                Secretary determines'' and inserting ``the 
                acquisition''; and
                    (C) in paragraph (2), by inserting ``the 
                acquisition'' after ``(2)''.
            (24) Section 2701 is amended--
                    (A) in subsection (a)(2), by inserting 
                ``(42 U.S.C. 9620)'' before the period at the 
                end;
                    (B) in subsection (c)(2), by striking ``of 
                CERCLA (relating to settlements)'' and 
                inserting ``(relating to settlements) of CERCLA 
                (42 U.S.C. 9622)'';
                    (C) in subsection (e), by inserting ``(42 
                U.S.C. 9619)'' after ``CERCLA''; and
                    (D) in subsection (j)(2), by striking ``the 
                Comprehensive'' and all the follows through 
                ``of 1980'' and inserting ``CERCLA''.
            (25) Section 2702 is amended by inserting ``(42 
        U.S.C. 9660(a)(5))'' in the second sentence of 
        subsection (a) before the period at the end.
            (26) Section 2703(b) is amended by striking ``The 
        terms'' at the beginning of the second sentence and 
        inserting ``For purposes of the preceding sentence, the 
        terms''.
            (27) Section 2704 is amended by inserting ``(42 
        U.S.C. 9604(i))'' in subsections (c), (e), and (f) 
        after ``CERCLA''.
            (28) The second section 3755, added by section 
        543(b)(1) of the Bob Stump National Defense 
        Authorization Act for Fiscal Year 2003 (Public Law 107-
        314; 116 Stat. 2549), is redesignated as section 3756, 
        and the item relating to that section in the table of 
        sections at the beginning of chapter 357 is revised to 
        reflect such redesignation.
            (29) Section 4689 is amended by striking 
        ``Building'' after ``Capitol''.
            (30) The second section 6257, added by section 
        543(c)(1) of the Bob Stump National Defense 
        Authorization Act for Fiscal Year 2003 (Public Law 107-
        314; 116 Stat. 2549), is redesignated as section 6258, 
        and the item relating to that section in the table of 
        sections at the beginning of chapter 567 is revised to 
        reflect such redesignation.
            (31) Section 7102 is amended--
                    (A) by striking ``Authority'' at the 
                beginning of subsection (a) and inserting 
                ``Master of Military Studies'';
                    (B) by striking ``Marine Corps War 
                College'' at the beginning of subsection (b) 
                and inserting ``Master of Strategic Studies'';
                    (C) by striking ``Command and Staff College 
                of the Marine Corps University'' at the 
                beginning of subsection (c) and inserting 
                ``Master of Operational Studies''; and
                    (D) by striking ``subsections (a) and (b)'' 
                in subsection (d) and inserting ``subsections 
                (a), (b), and (c)''.
            (32) Section 8084 is amended by striking 
        ``capabilty'' and inserting ``capability''.
            (33) The second section 8755, added by section 
        543(d)(1) of the Bob Stump National Defense 
        Authorization Act for Fiscal Year 2003 (Public Law 107-
        314; 116 Stat. 2550), is redesignated as section 8756, 
        and the item relating to that section in the table of 
        sections at the beginning of chapter 857 is revised to 
        reflect such redesignation.
            (34) The table in section 12012(a) is amended by 
        inserting a colon after ``Air National Guard''.
    (e) Title 37, United States Code.--Title 37, United States 
Code, is amended as follows:
            (1) Section 301a(b)(4) is amended by striking 
        ``section 301(a)(11)'' and inserting ``section 
        301(a)(13)''.
            (2) Section 323(h) is amended by striking 
        ``Secretary of Transportation'' and inserting 
        ``Secretary of Homeland Security''.
    (f) Public Law 108-136.--Effective as of November 24, 2003, 
and as if included therein as enacted, the National Defense 
Authorization Act for Fiscal Year 2004 (Public Law 108-136) is 
amended as follows:
            (1) Sections 832(a) and 834(a) (117 Stat. 1550) are 
        each amended by striking ``such title'' and inserting 
        ``title 10, United States Code,''.
            (2) Section 931(a)(1) (117 Stat. 1580) is amended 
        by striking ``and donations'' in the first quoted 
        matter and inserting ``or donations''.
            (3) Section 2204(b) (117 Stat. 1706) is amended by 
        striking ``section 2101(a)'' each place it appears and 
        inserting ``section 2201(a)''.
    (g) Public Law 107-314.--Effective as of December 2, 2002, 
and as if included therein as enacted, section 1064(a)(2) of 
the Bob Stump National Defense Authorization Act for Fiscal 
Year 2003 (Public Law 107-314; 116 Stat. 2654) is amended by 
inserting ``the item relating to'' after ``is amended by 
inserting after''.
    (h) Public Law 107-107.--Effective as of December 28, 2001, 
and as if included therein as enacted, the National Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107-107) is 
amended as follows:
            (1) Section 824(a)(1)(C) (115 Stat. 1183) is 
        amended by striking ``(3)(A)'' and inserting 
        ``(3)(B)''.
            (2) Section 1048(e)(4) (115 Stat. 1227) is amended 
        by striking ``Subsection'' and inserting ``Section''.
            (3) Section 1111(c) (115 Stat. 1238) is amended by 
        striking ``This provision'' and inserting ``Section 
        5949 of title 5, United States Code, as added by 
        subsection (a),''.
    (i) Public Law 101-510.--Section 2902(e)(2)(B) of the 
Defense Base Closure and Realignment Act of 1990 (part A of 
title XXIX of Public Law 101-510; 10 U.S.C. 2687 note) is 
amended--
            (1) in clause (i), by striking ``Subcommittee on 
        Readiness, Sustainability, and Support'' and inserting 
        ``Subcommittee on Readiness and Management Support''; 
        and
            (2) in clause (ii), by striking ``Subcommittee on 
        Military Installations and Facilities'' and inserting 
        ``Subcommittee on Readiness''.
    (j) National Security Act of 1947.--Sections 
702(a)(6)(B)(iv)(I), 703(a)(6)(B)(iv)(I), and 704(f)(2)(D)(i) 
of the National Security Act of 1947 are amended by striking 
``responsible records'' and inserting ``responsive records''.
    (k) Codification Relating to Leave for Attendance at 
Certain Hearings.--Subsection (b) of section 363 of the 
Personal Responsibility and Work Opportunity Reconciliation Act 
of 1996 (10 U.S.C. 704 note) is--
            (1) transferred to section 704 of title 10, United 
        States Code;
            (2) inserted at the end of that section;
            (3) redesignated as subsection (c); and
            (4) amended--
                    (A) by striking ``Armed Forces'' each place 
                it appears and inserting ``armed forces'';
                    (B) in paragraph (1)--
                            (i) by striking ``Secretary of 
                        each'' and all that follows through 
                        ``in the Navy,'' and inserting 
                        ``Secretary concerned''; and
                            (ii) by striking ``(as defined in 
                        section 101 of title 10, United States 
                        Code)''; and
                    (C) in paragraph (3)--
                            (i) by striking ``For purposes of 
                        this subsection--'' and inserting ``In 
                        this subsection:'';
                            (ii) in subparagraph (A), by 
                        striking ``title 10, United States 
                        Code'' and inserting ``this title''; 
                        and
                            (iii) in subparagraph (B), by 
                        striking ``such term'' and inserting 
                        ``that term''.

SEC. 1085. PRESERVATION OF SEARCH AND RESCUE CAPABILITIES OF THE 
                    FEDERAL GOVERNMENT.

    The Secretary of Defense may not reduce or eliminate search 
and rescue capabilities at any military installation in the 
United States unless the Secretary first certifies to the 
Committees on Armed Services of the Senate and the House of 
Representatives that equivalent search and rescue capabilities 
will be provided, without interruption and consistent with the 
policies and objectives set forth in the United States National 
Search and Rescue Plan entered into force on January 1, 1999, 
by--
            (1) the Department of Interior, the Department of 
        Commerce, the Department of Homeland Security, the 
        Department of Transportation, the Federal 
        Communications Commission, or the National Aeronautics 
        and Space Administration; or
            (2) the Department of Defense, either directly or 
        through a Department of Defense contract with an 
        emergency medical service provider or other private 
        entity to provide such capabilities.

SEC. 1086. ACQUISITION OF AERIAL FIREFIGHTING EQUIPMENT FOR NATIONAL 
                    INTERAGENCY FIRE CENTER.

    (a) Findings.--Congress makes the following findings:
            (1) The National Interagency Fire Center does not 
        possess an adequate number of aircraft for use in 
        aerial firefighting, and personnel at the Center rely 
        on military aircraft to provide such firefighting 
        services.
            (2) It is in the national security interest of the 
        United States for the National Interagency Fire Center 
        to acquire aircraft for use in aerial firefighting so 
        that the military aircraft made available for aerial 
        firefighting will instead be available for use by the 
        Armed Forces.
    (b) Authority To Purchase Aerial Firefighting Equipment.--
(1) The Secretary of Agriculture is authorized to purchase 10 
aircraft, as described in paragraph (2), for the National 
Interagency Fire Center for use in aerial firefighting.
    (2) The aircraft referred to in paragraph (1) shall be 
aircraft that are--
            (A) specifically designed and built for aerial 
        firefighting;
            (B) certified by the Chief of the Forest Service as 
        suited for conditions commonly experienced in aerial 
        firefighting operations carried out in the United 
        States, including Alaska; and
            (C) manufactured in a manner that is consistent 
        with the recommendations for aircraft used in aerial 
        firefighting contained in--
                    (i) the Blue Ribbon Panel Report to the 
                Chief of the Forest Service and the Director of 
                the Bureau of Land Management dated December 
                2002; and
                    (ii) the Safety Recommendation of the 
                Chairman of the National Transportation Safety 
                Board related to aircraft used in aerial 
                firefighting dated April 23, 2004.
    (c) Authorization of Appropriations.--There is authorized 
to be appropriated to the Secretary of Agriculture for fiscal 
year 2005 such funds as may be necessary to purchase the 10 
aircraft described in subsection (b).

SEC. 1087. REVISION TO REQUIREMENTS FOR RECOGNITION OF INSTITUTIONS OF 
                    HIGHER EDUCATION AS HISPANIC-SERVING INSTITUTIONS 
                    FOR PURPOSES OF CERTAIN GRANTS AND CONTRACTS.

    Section 502(a)(5)(C) of the Higher Education Act of 1965 
(20 U.S.C. 1101a(a)(5)(C)) is amended by inserting before the 
period the following: ``, which assurances--
                            ``(i) may employ statistical 
                        extrapolation using appropriate data 
                        from the Bureau of the Census or other 
                        appropriate Federal or State sources; 
                        and
                            ``(ii) the Secretary shall consider 
                        as meeting the requirements of this 
                        subparagraph, unless the Secretary 
                        determines, based on a preponderance of 
                        the evidence, that the assurances do 
                        not meet the requirements''.

SEC. 1088. MILITARY EXTRATERRITORIAL JURISDICTION OVER CONTRACTORS 
                    SUPPORTING DEFENSE MISSIONS OVERSEAS.

    Section 3267(1)(A) of title 18, United States Code, is 
amended to read as follows:
                    ``(A) employed as--
                            ``(i) a civilian employee of--
                                    ``(I) the Department of 
                                Defense (including a 
                                nonappropriated fund 
                                instrumentality of the 
                                Department); or
                                    ``(II) any other Federal 
                                agency, or any provisional 
                                authority, to the extent such 
                                employment relates to 
                                supporting the mission of the 
                                Department of Defense overseas;
                            ``(ii) a contractor (including a 
                        subcontractor at any tier) of--
                                    ``(I) the Department of 
                                Defense (including a 
                                nonappropriated fund 
                                instrumentality of the 
                                Department); or
                                    ``(II) any other Federal 
                                agency, or any provisional 
                                authority, to the extent such 
                                employment relates to 
                                supporting the mission of the 
                                Department of Defense overseas; 
                                or
                            ``(iii) an employee of a contractor 
                        (or subcontractor at any tier) of--
                                    ``(I) the Department of 
                                Defense (including a 
                                nonappropriated fund 
                                instrumentality of the 
                                Department); or
                                    ``(II) any other Federal 
                                agency, or any provisional 
                                authority, to the extent such 
                                employment relates to 
                                supporting the mission of the 
                                Department of Defense 
                                overseas;''.

SEC. 1089. DEFINITION OF UNITED STATES FOR PURPOSES OF FEDERAL CRIME OF 
                    TORTURE.

    Section 2340(3) of title 18, United States Code, is amended 
to read as follows:
            ``(3) `United States' means the several States of 
        the United States, the District of Columbia, and the 
        commonwealths, territories, and possessions of the 
        United States.''.

SEC. 1090. ENERGY SAVINGS PERFORMANCE CONTRACTS.

    (a) In General.--Section 801(c) of the National Energy 
Conservation Policy Act (42 U.S.C. 8287(c)) is amended by 
striking ``2003'' and inserting ``2006''.
    (b) Payment of Costs.--Section 802 of the National Energy 
Conservation Policy Act (42 U.S.C. 8287a) is amended by 
inserting ``, water, or wastewater treatment'' after ``payment 
of energy''.
    (c) Energy Savings.--Section 804(2) of the National Energy 
Conservation Policy Act (42 U.S.C. 8287c(2)) is amended to read 
as follows:
            ``(2) The term `energy savings' means a reduction 
        in the cost of energy, water, or wastewater treatment, 
        from a base cost established through a methodology set 
        forth in the contract, used in an existing federally 
        owned building or buildings or other federally owned 
        facilities as a result of--
                    ``(A) the lease or purchase of operating 
                equipment, improvements, altered operation and 
                maintenance, or technical services;
                    ``(B) the increased efficient use of 
                existing energy sources by cogeneration or heat 
                recovery, excluding any cogeneration process 
                for other than a federally owned building or 
                buildings or other federally owned facilities; 
                or
                    ``(C) the increased efficient use of 
                existing water sources in either interior or 
                exterior applications.''.
    (d) Energy Savings Contract.--Section 804(3) of the 
National Energy Conservation Policy Act (42 U.S.C. 8287c(3)) is 
amended to read as follows:
            ``(3) The terms `energy savings contract' and 
        `energy savings performance contract' mean a contract 
        that provides for the performance of services for the 
        design, acquisition, installation, testing, and, where 
        appropriate, operation, maintenance, and repair, of an 
        identified energy or water conservation measure or 
        series of measures at 1 or more locations. Such 
        contracts shall, with respect to an agency facility 
        that is a public building (as such term is defined in 
        section 3301 of title 40, United States Code), be in 
        compliance with the prospectus requirements and 
        procedures of section 3307 of title 40, United States 
        Code.''.
    (e) Energy or Water Conservation Measure.--Section 804(4) 
of the National Energy Conservation Policy Act (42 U.S.C. 
8287c(4)) is amended to read as follows:
            ``(4) The term `energy or water conservation 
        measure' means--
                    ``(A) an energy conservation measure, as 
                defined in section 551; or
                    ``(B) a water conservation measure that 
                improves the efficiency of water use, is life-
                cycle cost-effective, and involves water 
                conservation, water recycling or reuse, more 
                efficient treatment of wastewater or 
                stormwater, improvements in operation or 
                maintenance efficiencies, retrofit activities, 
                or other related activities, not at a Federal 
                hydroelectric facility.''.
    (f) Review.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Energy shall complete a 
review of the Energy Savings Performance Contract program to 
identify statutory, regulatory, and administrative obstacles 
that prevent Federal agencies from fully utilizing the program. 
In addition, this review shall identify all areas for 
increasing program flexibility and effectiveness, including 
audit and measurement verification requirements, accounting for 
energy use in determining savings, contracting requirements, 
including the identification of additional qualified 
contractors, and energy efficiency services covered. The 
Secretary shall report these findings to Congress and shall 
implement identified administrative and regulatory changes to 
increase program flexibility and effectiveness to the extent 
that such changes are consistent with statutory authority.
    (g) Extension of Authority.--Any energy savings performance 
contract entered into under section 801 of the National Energy 
Conservation Policy Act (42 U.S.C. 8287) after October 1, 2003, 
and before the date of enactment of this Act, shall be deemed 
to have been entered into pursuant to such section 801 as 
amended by subsection (a) of this section.

SEC. 1091. SENSE OF CONGRESS AND POLICY CONCERNING PERSONS DETAINED BY 
                    THE UNITED STATES.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) the abuses inflicted upon detainees at the Abu 
        Ghraib prison in Baghdad, Iraq, are inconsistent with 
        the professionalism, dedication, standards, and 
        training required of individuals who serve in the 
        United States Armed Forces;
            (2) the vast majority of members of the Armed 
        Forces have upheld the highest possible standards of 
        professionalism and morality in the face of illegal 
        tactics and terrorist attacks and attempts on their 
        lives;
            (3) the abuse of persons in United States custody 
        in Iraq is appropriately condemned and deplored by the 
        American people;
            (4) the Armed Forces are moving swiftly and 
        decisively to identify, try, and, if found guilty, 
        punish persons who perpetrated such abuse;
            (5) the Department of Defense and appropriate 
        military authorities must continue to undertake 
        corrective action, as appropriate, to address chain-of-
        command deficiencies and the systemic deficiencies 
        identified in the incidents in question;
            (6) the Constitution, laws, and treaties of the 
        United States and the applicable guidance and 
        regulations of the United States Government prohibit 
        the torture or cruel, inhuman, or degrading treatment 
        of foreign prisoners held in custody by the United 
        States;
            (7) the alleged crimes of a handful of individuals 
        should not detract from the commendable sacrifices of 
        over 300,000 members of the Armed Forces who have 
        served, or who are serving, in Operation Iraqi Freedom; 
        and
            (8) no detainee shall be subject to torture or 
        cruel, inhuman, or degrading treatment or punishment 
        that is prohibited by the Constitution, laws, or 
        treaties of the United States.
    (b) Policy.--It is the policy of the United States to--
            (1) ensure that no detainee shall be subject to 
        torture or cruel, inhuman, or degrading treatment or 
        punishment that is prohibited by the Constitution, 
        laws, or treaties of the United States;
            (2) investigate and prosecute, as appropriate, all 
        alleged instances of unlawful treatment of detainees in 
        a manner consistent with the international obligations, 
        laws, or policies of the United States;
            (3) ensure that all personnel of the United States 
        Government understand their obligations in both wartime 
        and peacetime to comply with the legal prohibitions 
        against torture, cruel, inhuman, or degrading treatment 
        of detainees in the custody of the United States;
            (4) ensure that, in a case in which there is doubt 
        as to whether a detainee is entitled to prisoner of war 
        status under the Geneva Conventions, such detainee 
        receives the protections accorded to prisoners of war 
        until the detainee's status is determined by a 
        competent tribunal; and
            (5) expeditiously process and, if appropriate, 
        prosecute detainees in the custody of the United 
        States, including those in the custody of the United 
        States Armed Forces at Guantanamo Bay, Cuba.
    (c) Detainees.--For purposes of this section, the term 
``detainee'' means a person in the custody or under the 
physical control of the United States as a result of armed 
conflict.

SEC. 1092. ACTIONS TO PREVENT THE ABUSE OF DETAINEES.

    (a) Policies Required.--The Secretary of Defense shall 
ensure that policies are prescribed not later than 150 days 
after the date of the enactment of this Act regarding 
procedures for Department of Defense personnel and contractor 
personnel of the Department of Defense intended to ensure that 
members of the Armed Forces, and all persons acting on behalf 
of the Armed Forces or within facilities of the Armed Forces, 
treat persons detained by the United States Government in a 
humane manner consistent with the international obligations and 
laws of the United States and the policies set forth in section 
1091(b).
    (b) Matters to Be Included.--In order to achieve the 
objective stated in subsection (a), the policies under that 
subsection shall specify, at a minimum, procedures for the 
following:
            (1) Ensuring that each commander of a Department of 
        Defense detention facility or interrogation facility--
                    (A) provides all assigned personnel with 
                training, and documented acknowledgment of 
                receiving training, regarding the law of war, 
                including the Geneva Conventions; and
                    (B) establishes standard operating 
                procedures for the treatment of detainees.
            (2) Ensuring that each Department of Defense 
        contract in which contract personnel in the course of 
        their duties interact with individuals detained by the 
        Department of Defense on behalf of the United States 
        Government include a requirement that such contract 
        personnel have received training, and documented 
        acknowledgment of receiving training, regarding the 
        international obligations and laws of the United States 
        applicable to the detention of personnel.
            (3) Providing all detainees with information, in 
        their own language, of the applicable protections 
        afforded under the Geneva Conventions.
            (4) Conducting periodic unannounced and announced 
        inspections of detention facilities in order to provide 
        continued oversight of interrogation and detention 
        operations.
            (5) Ensuring that, to the maximum extent 
        practicable, detainees and detention facility personnel 
        of a different gender are not alone together.
    (c) Secretary of Defense Certification.--The Secretary of 
Defense shall certify that all Federal employees and civilian 
contractors engaged in the handling or interrogation of 
individuals detained by the Department of Defense on behalf of 
the United States Government have fulfilled an annual training 
requirement on the law of war, the Geneva Conventions, and the 
obligations of the United States under international law.

SEC. 1093. REPORTING REQUIREMENTS.

    (a) Transmission of Regulations, Etc.--Not later than 30 
days after the date on which regulations, policies, and orders 
are first prescribed under section 1092(a), the Secretary of 
Defense shall transmit to the Committee on Armed Services of 
the Senate and the Committee on Armed Services of the House of 
Representatives copies of such regulations, policies, or 
orders, together with a report on steps taken to the date of 
the report to implement section 1092.
    (b) One-Year Implementation Report.--Not later than one 
year after the date on which regulations, policies, and orders 
are first prescribed under section 1092(a), the Secretary shall 
submit to such committees a report on further steps taken to 
implement section 1092 to the date of such report.
    (c) Annual Report.--Nine months after the date of the 
enactment of this Act and annually thereafter, the Secretary 
shall submit to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of 
Representatives a report for the preceding 12-months containing 
the following:
            (1) Notice of any investigation into any violation 
        of international obligations or laws of the United 
        States regarding the treatment of individuals detained 
        by the United States Armed Forces or by a person 
        providing services to the Department of Defense on a 
        contractual basis, if the notice will not compromise 
        any ongoing criminal or administrative investigation or 
        prosecution.
            (2) General information on the foreign national 
        detainees in the custody of the Department of Defense 
        during the 12-month period covered by the report, 
        including the following:
                    (A) The best estimate of the Secretary of 
                Defense of the total number of detainees in the 
                custody of the Department as of the date of the 
                report.
                    (B) The best estimate of the Secretary of 
                Defense of the total number of detainees 
                released from the custody of the Department 
                during the period covered by the report.
                    (C) An aggregate summary of the number of 
                persons detained as enemy prisoners of war, 
                civilian internees, and unlawful combatants, 
                including information regarding the average 
                length of detention for persons in each 
                category.
                    (D) An aggregate summary of the nationality 
                of persons detained.
                    (E) Aggregate information as to the 
                transfer of detainees to the jurisdiction of 
                other countries, and the countries to which 
                transferred.
    (d) Classification of Reports.--Reports submitted under 
this section shall be submitted, to the extent practicable, in 
unclassified form, but may include a classified annex as 
necessary to protect the national security of the United 
States.
    (e) Termination.--The requirements of this section shall 
cease to be in effect on December 31, 2007.

SEC. 1094. FINDINGS AND SENSE OF CONGRESS CONCERNING ARMY SPECIALIST 
                    JOSEPH DARBY.

    (a) Findings.--Congress makes the following findings:
            (1) The need to act in accord with one's 
        conscience, risking one's career and even the esteem of 
        one's colleagues by pursuing what is right is 
        especially important today.
            (2) While the Department of Defense investigates 
        the horrific abuses in American detention facilities in 
        Iraq, the Nation should bear in mind that the abuses 
        were only brought to light because of the courage of an 
        American soldier.
            (3) By alerting his superiors to abuses at Abu 
        Ghraib prison in Iraq, Army Specialist Joseph Darby 
        demonstrated the courage to speak out and do what is 
        right for his country.
            (4) Such an action is especially important in light 
        of the many challenges facing the country.
            (5) Specialist Darby deserves the Nation's thanks 
        for speaking up and for standing up for what is right.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the Secretary of Defense should make every 
        protection available to Army Specialist Joseph Darby 
        and others who demonstrate such courage; and
            (2) Specialist Darby should be commended 
        appropriately by the Secretary of the Army.

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

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

SEC. 1101. PAYMENT OF FEDERAL EMPLOYEE HEALTH BENEFIT PREMIUMS FOR 
                    MOBILIZED FEDERAL EMPLOYEES.

    (a) Authority to Continue Benefit Coverage.--Section 8905a 
of title 5, United States Code is amended--
            (1) in subsection (a), by striking ``paragraph (1) 
        or (2) of'';
            (2) in subsection (b)--
                    (A) in paragraph (1)(B), by striking 
                ``and'' at the end;
                    (B) in paragraph (2)(C), by striking the 
                period at the end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(3) any employee who--
                    ``(A) is enrolled in a health benefits plan 
                under this chapter;
                    ``(B) is a member of a reserve component of 
                the armed forces;
                    ``(C) is called or ordered to active duty 
                in support of a contingency operation (as 
                defined in section 101(a)(13) of title 10);
                    ``(D) is placed on leave without pay or 
                separated from service to perform active duty; 
                and
                    ``(E) serves on active duty for a period of 
                more than 30 consecutive days.''; and
            (4) in subsection (e)(1)--
                    (A) in subparagraph (A), by striking ``or'' 
                at the end;
                    (B) in subparagraph (B), by striking the 
                period at the end and inserting ``; or''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(C) in the case of an employee described 
                in subsection (b)(3), the date which is 24 
                months after the employee is placed on leave 
                without pay or separated from service to 
                perform active duty.''.
    (b) Authority for Agencies To Pay Premiums.--Subparagraph 
(C) of section 8906(e)(3) of such title is amended by striking 
``18 months'' and inserting ``24 months''.
    (c) Effective Date.--The amendments made by this section 
shall apply with respect to Federal employees called or ordered 
to active duty on or after September 14, 2001.

SEC. 1102. FOREIGN LANGUAGE PROFICIENCY PAY.

    (a) Eligibility for Service Not Related to Contingency 
Operations.--Section 1596a(a)(2) of title 10, United States 
Code, is amended by striking ``during a contingency operation 
supported by the armed forces''.
    (b) Effective Date.--The amendment by this section shall 
take effect on the first day of the first month that begins 
after the date of the enactment of this Act.

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

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

SEC. 1104. PAY PARITY FOR SENIOR EXECUTIVES IN DEFENSE NONAPPROPRIATED 
                    FUND INSTRUMENTALITIES.

    (a) Authority.--Chapter 81 of title 10, United States Code, 
is amended by inserting after section 1587 the following new 
section:

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

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

SEC. 1105. SCIENCE, MATHEMATICS, AND RESEARCH FOR TRANSFORMATION 
                    (SMART) DEFENSE SCHOLARSHIP PILOT PROGRAM.

    (a) Requirement for Program.--(1) The Secretary of Defense 
shall carry out a pilot program to provide financial assistance 
for education in science, mathematics, engineering, and 
technology skills and disciplines that, as determined by the 
Secretary, are critical to the national security functions of 
the Department of Defense and are needed in the Department of 
Defense workforce.
    (2) The pilot program under this section shall be carried 
out for three years beginning on the date of the enactment of 
this Act.
    (b) Scholarships.--(1) Under the pilot program, the 
Secretary of Defense may award a scholarship in accordance with 
this section to a person who--
            (A) is a citizen of the United States;
            (B) is pursuing an undergraduate or advanced degree 
        in a critical skill or discipline described in 
        subsection (a) at an institution of higher education; 
        and
            (C) enters into a service agreement with the 
        Secretary of Defense as described in subsection (c).
    (2) The amount of the financial assistance provided under a 
scholarship awarded to a person under this subsection shall be 
the amount determined by the Secretary of Defense as being 
necessary to pay all educational expenses incurred by that 
person, including tuition, fees, cost of books, laboratory 
expenses, and expenses of room and board. The expenses paid, 
however, shall be limited to those educational expenses 
normally incurred by students at the institution of higher 
education involved.
    (c) Service Agreement for Recipients of Assistance.--(1) To 
receive financial assistance under this section--
            (A) in the case of an employee of the Department of 
        Defense, the employee shall enter into a written 
        agreement to continue in the employment of the 
        department for the period of obligated service 
        determined under paragraph (2); and
            (B) in the case of a person not an employee of the 
        Department of Defense, the person shall enter into a 
        written agreement to accept and continue employment in 
        the Department of Defense for the period of obligated 
        service determined under paragraph (2).
    (2) For the purposes of this subsection, the period of 
obligated service for a recipient of a scholarship under this 
section shall be the period determined by the Secretary of 
Defense as being appropriate to obtain adequate service in 
exchange for the financial assistance provided under the 
scholarship. In no event may the period of service required of 
a recipient be less than the total period of pursuit of a 
degree that is covered by the scholarship. The period of 
obligated service is in addition to any other period for which 
the recipient is obligated to serve in the civil service of the 
United States.
    (3) An agreement entered into under this subsection by a 
person pursuing an academic degree shall include any terms and 
conditions that the Secretary of Defense determines necessary 
to protect the interests of the United States or otherwise 
appropriate for carrying out this section.
    (d) Refund for Period of Unserved Obligated Service.--(1) A 
person who voluntarily terminates service before the end of the 
period of obligated service required under an agreement entered 
into under subsection (c) shall refund to the United States an 
amount determined by the Secretary of Defense as being 
appropriate to obtain adequate service in exchange for 
financial assistance.
    (2) An obligation to reimburse the United States imposed 
under paragraph (1) is for all purposes a debt owed to the 
United States.
    (3) The Secretary of Defense may waive, in whole or in 
part, a refund required under paragraph (1) if the Secretary 
determines that recovery would be against equity and good 
conscience or would be contrary to the best interests of the 
United States.
    (4) A discharge in bankruptcy under title 11, United States 
Code, that is entered less than five years after the 
termination of an agreement under this section does not 
discharge the person signing such agreement from a debt arising 
under such agreement or under this subsection.
    (e) Relationship to Other Programs.--The pilot program 
under this section is in addition to the authorities provided 
in chapter 111 of title 10, United States Code. The Secretary 
of Defense shall coordinate the provision of financial 
assistance under the authority of this section with the 
provision of financial assistance under the authorities 
provided in such chapter in order to maximize the benefits 
derived by the Department of Defense from the exercise of all 
such authorities.
    (f) Recommendation on Pilot Program.--Not later than 
February 1, 2007, the Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives, the Committee on Governmental Affairs of the 
Senate, and the Committee on Government Reform of the House of 
Representatives a plan for expanding and improving the national 
defense science and engineering workforce educational 
assistance pilot program carried out under this section as 
appropriate to improve recruitment and retention to meet the 
requirements of the Department of Defense for its science and 
engineering workforce on a short-term basis and on a long-term 
basis.
    (g) Critical Hiring Need.--Section 3304(a)(3) of title 5, 
United States Code, is amended by striking subparagraph (B) and 
inserting the following:
                    ``(B)(i) the Office of Personnel Management 
                has determined that there exists a severe 
                shortage of candidates or there is a critical 
                hiring need; or
                    ``(ii) the candidate is a participant in 
                the Science, Mathematics, and Research for 
                Transformation (SMART) Defense Scholarship 
                Pilot Program under section 1105 of the Ronald 
                W. Reagan National Defense Authorization Act 
                for Fiscal Year 2005.''.
    (h) Institution of Higher Education Defined.--In this 
section, the term ``institution of higher education'' has the 
meaning given such term in section 101 of the Higher Education 
Act of 1965 (21 U.S.C. 1001).

SEC. 1106. REPORT ON HOW TO RECRUIT AND RETAIN INDIVIDUALS WITH FOREIGN 
                    LANGUAGE SKILLS.

    Not later than March 31, 2005, the Secretary of Defense 
shall submit to the Committees on Armed Services of the Senate 
and the House of Representatives and the Select Committee on 
Intelligence of the Senate and the Permanent Select Committee 
on Intelligence of the House of Representatives, a plan for 
expanding and improving the national security foreign language 
workforce of the Department of Defense as appropriate to 
improve recruitment and retention to meet the requirements of 
the Department for its foreign language workforce on a short-
term basis and on a long-term basis.

SEC. 1107. PLAN ON IMPLEMENTATION AND UTILIZATION OF FLEXIBLE PERSONNEL 
                    MANAGEMENT AUTHORITIES IN DEPARTMENT OF DEFENSE 
                    LABORATORIES.

    (a) Plan Required.--The Under Secretary of Defense for 
Acquisition, Technology, and Logistics and the Under Secretary 
of Defense for Personnel and Readiness shall jointly develop a 
plan for the effective utilization of the personnel management 
authorities referred to in subsection (b) in order to increase 
the mission responsiveness, efficiency, and effectiveness of 
Department of Defense laboratories.
    (b) Covered Authorities.--The personnel management 
authorities referred to in this subsection are the personnel 
management authorities granted to the Secretary of Defense by 
the provisions of law as follows:
            (1) Section 342(b) of the National Defense 
        Authorization Act for Fiscal Year 1995 (Public Law 103-
        337; 108 Stat. 2721), as amended by section 1114 of the 
        Floyd D. Spence National Defense Authorization Act for 
        Fiscal Year 2001 (as enacted into law by Public Law 
        106-398 (114 Stat. 1654A-315)).
            (2) Section 1101 of the Strom Thurmond National 
        Defense Authorization Act for Fiscal Year 1999 (Public 
        Law 105-261; 5 U.S.C. 3104 note).
            (3) Section 9902(c) of title 5, United States Code.
            (4) Such other provisions of law as the Under 
        Secretaries jointly consider appropriate for purposes 
        of this section.
    (c) Plan Elements.--The plan under subsection (a) shall--
            (1) include such elements as the Under Secretaries 
        jointly consider appropriate to provide for the 
        effective utilization of the personnel management 
        authorities referred to in subsection (b) as described 
        in subsection (a), including the recommendations of the 
        Under Secretaries for such additional authorities, 
        including authorities for demonstration programs or 
        projects, as are necessary to achieve the effective 
        utilization of such personnel management authorities; 
        and
            (2) include procedures, including a schedule for 
        review and decisions, on proposals to modify current 
        demonstration programs or projects, or to initiate new 
        demonstration programs or projects, on flexible 
        personnel management at Department laboratories
    (d) Submittal to Congress.--The Under Secretaries shall 
jointly submit to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of 
Representatives the plan under subsection (a) not later than 
December 1, 2005.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

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

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

                Subtitle B--Counterproliferation Matters

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

                        Subtitle C--Other Matters

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

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

SEC. 1201. COMMANDERS' EMERGENCY RESPONSE PROGRAM.

    (a) Fiscal Year 2005 Authority.--During fiscal year 2005, 
from funds made available to the Department of Defense for 
operation and maintenance pursuant to title XV, not to exceed 
$300,000,000 may be used to provide funds--
            (1) for the Commanders' Emergency Response Program, 
        established by the Administrator of the Coalition 
        Provisional Authority for the purpose of enabling 
        United States military commanders in Iraq to respond to 
        urgent humanitarian relief and reconstruction 
        requirements within their areas of responsibility by 
        carrying out programs that will immediately assist the 
        Iraqi people; and
            (2) for a similar program to assist the people of 
        Afghanistan.
    (b) Quarterly Reports.--Not later than 15 days after the 
end of each fiscal-year quarter (beginning with the first 
quarter of fiscal year 2005), the Secretary of Defense shall 
submit to the congressional defense committees a report 
regarding the source of funds and the allocation and use of 
funds during that quarter that were made available pursuant to 
the authority provided in this section or under any other 
provision of law for the purposes stated in subsection (a).
    (c) Waiver Authority.--For purposes of the exercise of the 
authority provided by this section or any other provision of 
law making funding available for the Commanders' Emergency 
Response Program referred to in subsection (a) (including a 
program referred to in paragraph (2) of that subsection), the 
Secretary may waive any provision of law not contained in this 
section that would (but for the waiver) prohibit, restrict, 
limit, or otherwise constrain the exercise of that authority.
    (d) Review of Laws.--Not later than 120 days after the date 
of the enactment of this Act, the Secretary shall submit to the 
Committee on Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives a report 
identifying all provisions of law that (if not waived) would 
prohibit, restrict, limit, or otherwise constrain the exercise 
of the authority provided in this section or any other 
provision of law using funds available for the purposes stated 
in subsection (a).

SEC. 1202. ASSISTANCE TO IRAQ AND AFGHANISTAN MILITARY AND SECURITY 
                    FORCES.

    (a) Authority.--The Secretary of Defense may provide 
assistance under this section to Iraq and Afghanistan military 
and security forces. Such assistance shall be provided, subject 
to the provisions of this section, solely to enhance the 
ability of such forces to combat terrorism and support United 
States or coalition military operations in Iraq and 
Afghanistan, respectively.
    (b) Type of Assistance.--Assistance provided under 
subsection (a) may include equipment, supplies, services, and 
training.
    (c) Limitations.--Assistance under this section or under 
any other provision of law for the purpose described in 
subsection (a) may be provided only from funds available to the 
Department of Defense for fiscal year 2005 for operation and 
maintenance under title XV. The total amount of such assistance 
may not exceed $500,000,000.
    (d) Congressional Notification.--Before any provision of 
assistance under this section or any other provision of law for 
the purpose described in subsection (a), the Secretary of 
Defense shall submit to the congressional defense committees a 
notification of the assistance proposed to be provided. Any 
such notification shall be submitted not less than 15 days 
before the provision of such assistance.
    (e) Military and Security Forces Defined.--For purposes of 
this section, the term ``military and security forces'' means 
national armies, national guard forces, border security forces, 
civil defense forces, infrastructure protection forces, and 
police.

SEC. 1203. REDESIGNATION AND MODIFICATION OF AUTHORITIES RELATING TO 
                    INSPECTOR GENERAL OF THE COALITION PROVISIONAL 
                    AUTHORITY.

    (a) Redesignation.--(1) Subsections (b) and (c)(1) of 
section 3001 of the Emergency Supplemental Appropriations Act 
for Defense and for the Reconstruction of Iraq and Afghanistan, 
2004 (Public Law 108-106; 117 Stat. 1234; 5 U.S.C. App. 3 
section 8G note) are each amended by striking ``Office of the 
Inspector General of the Coalition Provisional Authority'' and 
inserting ``Office of the Special Inspector General for Iraq 
Reconstruction''.
    (2) Subsection (c)(1) of such section is further amended by 
striking ``Inspector General of the Coalition Provisional 
Authority'' and inserting ``Special Inspector General for Iraq 
Reconstruction (in this section referred to as the `Inspector 
General')''.
    (3)(A) The heading of such section is amended to read as 
follows:

``SEC. 3001. SPECIAL INSPECTOR GENERAL FOR IRAQ RECONSTRUCTION.''.

    (B) The heading of title III of such Act is amended to read 
as follows:

   ``TITLE III--SPECIAL INSPECTOR GENERAL FOR IRAQ RECONSTRUCTION''.

    (b) Continuation in Office.--The individual serving as the 
Inspector General of the Coalition Provisional Authority as of 
the date of the enactment of this Act may continue to serve in 
that position after that date without reappointment under 
paragraph (1) of section 3001(c) of the Emergency Supplemental 
Appropriations Act for Defense and for the Reconstruction of 
Iraq and Afghanistan, 2004, but remaining subject to removal as 
specified in paragraph (4) of that section.
    (c) Purposes.--Subsection (a) of such section is amended--
            (1) in paragraph (1), by striking ``of the 
        Coalition Provisional Authority (CPA)'' and inserting 
        ``funded with amounts appropriated or otherwise made 
        available to the Iraq Relief and Reconstruction Fund'';
            (2) in paragraph (2)(B), by striking ``fraud'' and 
        inserting ``waste, fraud,''; and
            (3) in paragraph (3), by striking ``the head of the 
        Coalition Provisional Authority'' and inserting ``the 
        Secretary of State and the Secretary of Defense''.
    (d) Responsibilities of Assistant Inspector General for 
Auditing.--Subsection (d)(1) of such section is amended by 
striking ``of the Coalition Provisional Authority'' and 
inserting ``supported by the Iraq Relief and Reconstruction 
Fund''.
    (e) Supervision.--Such section is further amended--
            (1) in subsection (e)--
                    (A) in paragraph (1), by striking ``the 
                head of the Coalition Provisional Authority'' 
                and inserting ``the Secretary of State and the 
                Secretary of Defense''; and
                    (B) in paragraph (2)--
                            (i) by striking ``Neither the head 
                        of the Coalition Provisional 
                        Authority,'' and all that follows 
                        through ``nor any other officer'' and 
                        inserting ``No officer''; and
                            (ii) by striking ``investigation,'' 
                        and all that follows through ``course 
                        of any'' and inserting ``investigation 
                        related to the Iraq Relief and 
                        Reconstruction Fund or from issuing any 
                        subpoena during the course of any 
                        such'';
            (2) in subsection (h)--
                    (A) in paragraphs (4)(B) and (5), by 
                striking ``head of the Coalition Provisional 
                Authority'' and inserting ``Secretary of State 
                or Secretary of Defense, as appropriate,''; and
                    (B) in paragraph (5), by striking ``at the 
                central and field locations of the Coalition 
                Provisional Authority'' and inserting ``within 
                the Department of Defense or at appropriate 
                locations of the Department of State in Iraq'';
            (3) in subsection (j)--
                    (A) in paragraph (1), by striking ``the 
                head of the Coalition Provisional Authority'' 
                and inserting ``the Secretary of State and the 
                Secretary of Defense''; and
                    (B) in paragraph (2)--
                            (i) in subparagraph (A)--
                                    (I) by striking ``the head 
                                of the Coalition Provisional 
                                Authority'' the first place it 
                                appears and inserting ``the 
                                Secretary of State or the 
                                Secretary of Defense''; and
                                    (II) by striking ``the head 
                                of the Coalition Provisional 
                                Authority'' the second place it 
                                appears and inserting ``the 
                                Secretary of State or the 
                                Secretary of Defense, as the 
                                case may be,''; and
                            (ii) in subparagraph (B), by 
                        striking ``the head of the Coalition 
                        Provisional Authority'' and inserting 
                        ``the Secretary of State or the 
                        Secretary of Defense, as the case may 
                        be,''; and
            (4) in subsection (k), by striking ``the head of 
        the Coalition Provisional Authority shall'' both places 
        it appears and inserting ``the Secretary of State and 
        the Secretary of Defense shall jointly''.
    (f) Duties.--Subsection (f)(1) of such section is amended--
            (1) in the matter preceding subparagraph (A), by 
        striking ``appropriated funds by the Coalition 
        Provisional Authority in Iraq'' and inserting ``amounts 
        appropriated or otherwise made available to the Iraq 
        Relief and Reconstruction Fund''; and
            (2) in subparagraph (D), by striking ``the 
        Coalition Provisional Authority,'' and all that follows 
        through ``Government, and'' and inserting 
        ``departments, agencies, and entities of the United 
        States and''.
    (g) Interagency Coordination.--Subsection (f) of such 
section is further amended by striking paragraphs (4) and (5) 
and inserting the following new paragraph (4):
    ``(4) In carrying out the duties, responsibilities, and 
authorities of the Inspector General under this section, the 
Inspector General shall coordinate with, and receive the 
cooperation of, each of the following:
            ``(A) The Inspector General of the Department of 
        State.
            ``(B) The Inspector General of the Department of 
        Defense.
            ``(C) The Inspector General of the United States 
        Agency for International Development.''.
    (h) Powers and Authorities.--Subsection (g)(1) of such 
section is amended by inserting before the period the 
following: ``, including the authorities under subsection (e) 
of such section''.
    (i) Reports.--Subsection (i) of such section is amended--
            (1) in paragraph (1)--
                    (A) by striking the first sentence and 
                inserting the following: ``Not later than 30 
                days after the end of each fiscal-year quarter, 
                the Inspector General shall submit to the 
                appropriate committees of Congress a report 
                summarizing, for the period of that quarter 
                and, to the extent possible, the period from 
                the end of such quarter to the time of the 
                submission of the report, the activities during 
                such period of the Inspector General and the 
                activities under programs and operations funded 
                with amounts appropriated or otherwise made 
                available to the Iraq Relief and Reconstruction 
                Fund.'';
                    (B) in subparagraph (B), by striking ``the 
                Coalition Provisional Authority'' and inserting 
                ``the Department of Defense, the Department of 
                State, and the United States Agency for 
                International Development, as applicable,'';
                    (C) in subparagraph (E)--
                            (i) by striking ``the Coalition 
                        Provisional Authority and of any 
                        other'' ; and
                            (ii) by striking ``appropriated 
                        funds'' and inserting ``amounts 
                        appropriated or otherwise made 
                        available to the Iraq Relief and 
                        Reconstruction Fund''; and
                    (D) in subparagraph (F)(iii), by striking 
                ``the Coalition Provisional Authority'' and 
                inserting ``the contracting department or 
                agency'';
            (2) in paragraph (2), by striking ``by the 
        Coalition Provisional Authority'' and inserting ``by 
        any department or agency of the United States 
        Government that involves the use of amounts 
        appropriated or otherwise made available to the Iraq 
        Relief and Reconstruction Fund'';
            (3) in paragraph (3)--
                    (A) by striking ``Not later than June 30, 
                2004, and semiannually thereafter, the'' and 
                inserting ``The'';
                    (B) by striking ``a report'' and inserting 
                ``semiannual reports''; and
                    (C) and by adding at the end the following 
                new sentence: ``The first such report for a 
                year, covering the first six months of the 
                year, shall be submitted not later than July 31 
                of that year, and the second such report, 
                covering the second six months of the year, 
                shall be submitted not later than January 31 of 
                the following year.''; and
            (4) in paragraph (4), by striking ``of the 
        Coalition Provisional Authority'' and inserting ``of 
        the Department of State and of the Department of 
        Defense''.
    (j) Termination.--Subsection (o) of such section is amended 
to read as follows:
    ``(o) Termination.--The Office of the Inspector General 
shall terminate on the date that is 10 months after the date, 
as determined by the Secretary of State and the Secretary of 
Defense, on which 80 percent of the amounts appropriated or 
otherwise made available to the Iraq Relief and Reconstruction 
Fund by chapter 2 of title II of this Act have been 
obligated.''.

SEC. 1204. PRESIDENTIAL REPORT ON STRATEGY FOR STABILIZATION OF IRAQ.

    (a) Stabilization Strategy.--Not later than 120 days after 
the date of the enactment of this Act, the President shall 
submit to Congress an unclassified report (with classified 
annex, if necessary) on the strategy of the United States and 
coalition forces for stabilizing Iraq. The report shall contain 
a detailed explanation of the strategy, together with the 
following:
            (1) A description of the efforts of the President 
        to work with the United Nations to provide support for, 
        and assistance to, the transitional government in Iraq 
        and, in particular, the efforts of the President to 
        negotiate and secure adoption by the United Nations 
        Security Council of Resolution 1546.
            (2) A description of the efforts of the President 
        to continue to work with North Atlantic Treaty 
        Organization (NATO) member states and non-NATO member 
        states to provide support for and augment coalition 
        forces, including--
                    (A) the current military forces of 
                coalition countries deployed to Iraq;
                    (B) the current police forces of coalition 
                countries deployed to Iraq;
                    (C) the current financial resources of 
                coalition countries pledged and provided for 
                the stabilization and reconstruction of Iraq; 
                and
                    (D) a list of countries that have pledged 
                to deploy military or police forces, including 
                the schedule and level of such deployments.
            (3) The strategic plan referred to in subsection 
        (b) relating to Iraqi security forces.
            (4) A description of the efforts of the United 
        States and coalition forces to assist in the 
        reconstruction of essential infrastructure of Iraq, 
        including the oil industry, electricity generation, 
        roads, schools, and hospitals.
            (5) A description of the efforts of the United 
        States, coalition partners, and relevant international 
        agencies to assist in the development of political 
        institutions and prepare for democratic elections in 
        Iraq.
            (6) A description of the obstacles, including 
        financial, technical, logistic, personnel, political, 
        and other obstacles, faced by NATO in generating and 
        deploying military forces out of theater to locations 
        such as Iraq.
    (b) Iraqi Security Forces.--The President shall include in 
the report under subsection (a) a strategic plan setting forth 
the manner in which the coaltion will achieve the goal of 
establishing viable and professional Iraqi security forces able 
to provide for the long-term security of the Iraqi people. That 
strategic plan shall include at least the following:
            (1) Recruiting and retention goals, shown for each 
        service of the Iraqi security forces.
            (2) Training plans for each service of the Iraqi 
        security forces.
            (3) A description of metrics by which progress 
        toward the goal of Iraqi provision for its own security 
        can be measured.
            (4) A description of equipment needs, shown for 
        each service of the Iraqi security forces.
            (5) A resourcing plan for achieving the goals of 
        the strategic plan.
            (6) Personnel plans in terms of United States 
        military and contractor personnel to be used in 
        training each such service.
            (7) A description of challenges faced and 
        opportunities presented in particular regions of Iraq 
        and a plan for addressing those challenges.
            (8) A discussion of training and deployment 
        successes and failures to the date of the report and 
        how lessons from those successes and failures will be 
        incorporated into the strategic plan.
    (c) Quarterly Reports.--Not later than 30 days after the 
end of each quarter of calendar year 2005, the Secretary of 
Defense shall submit to the Congress a report on the actions 
taken under the strategic plan set forth pursuant to subsection 
(b) since the date of the enactment of this Act. Each such 
report shall be prepared in conjunction with the Secretary of 
State.

SEC. 1205. GUIDANCE ON CONTRACTORS SUPPORTING DEPLOYED FORCES IN IRAQ.

    (a) Guidance.--Not later than 180 days after the date of 
the enactment of this Act, the Secretary of Defense shall issue 
guidance on how the Department of Defense shall manage 
contractor personnel who support deployed forces and shall 
direct the Secretaries of the military departments to develop 
procedures to ensure implementation of that guidance. The 
guidance shall--
            (1) establish policies for the use of contractors 
        to support deployed forces;
            (2) delineate the roles and responsibilities of 
        commanders regarding the management and oversight of 
        contractor personnel who support deployed forces; and
            (3) integrate into a single document other guidance 
        and doctrine that may affect Department of Defense 
        responsibilities to contractors in locations where 
        members of the Armed Forces are deployed.
    (b) Issues to be Addressed.--The guidance issued under 
subsection (a) shall address at least the following matters:
            (1) Warning contractor security personnel of 
        potentially hazardous situations.
            (2) Coordinating the movement of contractor 
        security personnel, especially through areas of 
        increased risk or planned or ongoing military 
        operations.
            (3) Rapidly identifying contractor security 
        personnel by members of the Armed Forces.
            (4) Sharing relevant threat information with 
        contractor security personnel and receiving information 
        gathered by contractor security personnel for use by 
        United States and coalition forces.
            (5) Providing appropriate assistance to contractor 
        personnel who become engaged in hostile situations.
            (6) Providing medical assistance for, and 
        evacuation of, contractor personnel who become 
        casualties as a result of enemy actions.
            (7) Investigating background and qualifications of 
        contractor security personnel and organizations.
            (8) Establishing rules of engagement for armed 
        contractor security personnel, and ensuring proper 
        training and compliance with the rules of engagement.
            (9) Establishing categories of security, 
        intelligence, law enforcement, and criminal justice 
        functions that are--
                    (A) inherently governmental functions under 
                Subpart 7.5 of the Federal Acquisition 
                Regulation; or
                    (B) although not inherently governmental 
                functions, should not ordinarily be performed 
                by contractors in areas of operations.
            (10) Establishing procedures for making and 
        documenting determinations about which security, 
        intelligence, law enforcement, and criminal justice 
        functions will be performed by military personnel and 
        which will be performed by private companies.
    (c) Report.--Not later than 30 days after issuing the 
guidance required under subsection (a), the Secretary of 
Defense shall submit to the Committees on Armed Services of the 
Senate and House of Representatives a report on the guidance 
issued under subsection (a).

SEC. 1206. REPORT ON CONTRACTORS SUPPORTING DEPLOYED FORCES AND 
                    RECONSTRUCTION EFFORTS IN IRAQ.

    (a) Report Required.--Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall submit to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of 
Representatives a report on contractors supporting deployed 
forces and reconstruction efforts in Iraq.
    (b) Matters To Be Included.--The report required by 
subsection (a) shall include, at a minimum, the following 
matters with respect to contractors, and employees of 
contractors, described in subsection (a):
            (1) A description of the overall chain of command 
        and oversight mechanisms that are in place to ensure 
        adequate command and supervision of such contractor 
        employees in critical security roles.
            (2) A description of sanctions that are available 
        to be imposed on such a contractor employee who--
                    (A) fails to comply with a requirement of 
                law or regulation that applies to such 
                employee; or
                    (B) engages in other misconduct.
            (3) A description of disciplinary and criminal 
        actions brought against contractor employees during the 
        period beginning on May 1, 2003, and ending on the date 
        of the enactment of this Act.
            (4) An explanation of the legal status of 
        contractor employees engaged in the performance of 
        security functions in Iraq after the transfer of 
        sovereign power to Iraq on June 28, 2004.
            (5) A specification of casualty and fatality 
        figures for contractor employees supporting deployed 
        forces and reconstruction efforts in Iraq, shown, to 
        the extent practicable, in the following categories:
                    (A) Total casualties and total fatalities.
                    (B) Casualties and fatalities among--
                            (i) nationals of the United States;
                            (ii) nationals of Iraq; and
                            (iii) nationals of states other 
                        than the United States and Iraq.
            (6) A description, to the maximum extent 
        practicable, of incidents in which contractor employees 
        supporting deployed forces and reconstruction efforts 
        in Iraq have been engaged in hostile fire or other 
        incidents of note during the period beginning on May 1, 
        2003, and ending on the date of the enactment of this 
        Act.
    (c) Plans.--The Secretary shall include with the report 
under subsection (a) the following plans:
            (1) A plan for establishing and implementing a 
        process for collecting data on individual contractors, 
        the value of the contracts, the number of casualties 
        incurred, and the number of personnel in Iraq 
        performing the following services for the Department of 
        Defense and other Federal agencies:
                    (A) Personal security details.
                    (B) Nonmilitary site security.
                    (C) Nonmilitary convoy security.
                    (D) Interrogation services at interrogation 
                centers operated by the Department of Defense.
            (2) A plan for ensuring that military commanders in 
        the theater of operations have accurate information on 
        the number, types, and sources of weapons and other 
        critical equipment (such as body armor, armored 
        vehicles, secure communications and friend-foe 
        identification) that contractor personnel performing 
        services specified in paragraph (1) are authorized to 
        possess.
    (d) Coordination.--In the preparation of the report under 
this section (including the plans under subsection (c)), the 
Secretary of Defense shall coordinate, as appropriate, with the 
head of any Federal agency that is involved in the procurement 
of services from contractors supporting deployed forces and 
reconstruction efforts in Iraq. The head of any such agency 
shall provide to the Secretary of Defense such information as 
the Secretary may require about such contractors to complete 
the report.

SEC. 1207. UNITED NATIONS OIL-FOR-FOOD PROGRAM.

    (a) Access to Documents.--It is the sense of Congress that 
the Secretary of State should seek to conclude a memorandum of 
understanding with the Interim Government of Iraq to ensure 
that the United States will have access to all documents in the 
possession of that Government related to the United Nations 
Oil-for-Food Program.
    (b) Information From the United Nations.--(1) The Secretary 
of State shall use the voice and vote of the United States in 
the United Nations to urge the Secretary General of the United 
Nations to provide to the United States copies of all audits 
and core documents related to the United Nations Oil-for-Food 
Program, including all audits, examinations, studies, reviews, 
or similar documents prepared by the United Nations Office of 
Internal Oversight Services and all responses to such 
documents.
    (2) It is the sense of Congress that, pursuant to section 
941(b)(6) of the United Nations Reform Act of 1999 (title IX of 
division A of H.R. 3427 of the 106th Congress, as enacted into 
law by section 1000(a)(7) of Public Law 106-113; 113 Stat. 
1501A-483), the Comptroller General should have full and 
complete access to financial information relating to the United 
Nations, including information related to the financial 
transactions, organization, and activities of the United 
Nations Oil-for-Food Program.
    (3) The Secretary of State shall facilitate access by the 
Comptroller General to the financial information described in 
paragraph (2).
    (c) Cooperation in Investigations.--The head of any 
Executive agency (including the Secretary of State, the 
Secretary of Defense, the Secretary of the Treasury, and the 
Director of the Central Intelligence Agency) shall, upon a 
request in connection with an investigation of the United 
Nations Oil-for-Food Program made by a committee of 
jurisdiction of the Senate or House of Representatives, 
promptly provide to the chairman of that committee--
            (1) access to any information or document described 
        in subsection (a) or (b) that is under the control of 
        such agency and responsive to the request; and
            (2) cooperation in gaining access to information 
        and documents described in subsections (a) and (b) that 
        are not under the control of such agency, as 
        appropriate.
    (d) Review of Oil-for-Food Program by Comptroller 
General.--(1) The Comptroller General shall conduct a review of 
the United Nations Oil-for-Food Program, including the role of 
the United States in that program. The review--
            (A) in accordance with generally accepted 
        government auditing standards, should not interfere 
        with any ongoing criminal investigation or inquiry 
        related to that program; and
            (B) may take into account the results of any 
        investigation or inquiry related to that program.
    (2) The head of each Executive agency shall fully cooperate 
with the review of the Comptroller General under paragraph (1).
    (e) Executive Agency Defined.--In this section, the term 
``Executive agency'' has the meaning given that term in section 
105 of title 5, United States Code.

SEC. 1208 SUPPORT OF MILITARY OPERATIONS TO COMBAT TERRORISM.

    (a) Authority.--The Secretary of Defense may expend up to 
$25,000,000 during any fiscal year during which this subsection 
is in effect to provide support to foreign forces, irregular 
forces, groups, or individuals engaged in supporting or 
facilitating ongoing military operations by United States 
special operations forces to combat terrorism.
    (b) Procedures.--The Secretary of Defense shall establish 
procedures for the exercise of the authority under subsection 
(a). The Secretary shall notify the congressional defense 
committees of those procedures before any exercise of that 
authority.
    (c) Notification.--Upon using the authority provided in 
subsection (a) to make funds available for support of an 
approved military operation, the Secretary of Defense shall 
notify the congressional defense committees expeditiously, and 
in any event in not less than 48 hours, of the use of such 
authority with respect to that operation. Such a notification 
need be provided only once with respect to any such operation. 
Any such notification shall be in writing.
    (d) Limitation on Delegation.--The authority of the 
Secretary of Defense to make funds available under subsection 
(a) for support of a military operation may not be delegated.
    (e) Intelligence Activities.--This section does not 
constitute authority to conduct a covert action, as such term 
is defined in section 503(e) of the National Security Act of 
1947 (50 U.S.C. 413b(e)).
    (f) Annual Report.--Not later than 30 days after the close 
of each fiscal year during which subsection (a) is in effect, 
the Secretary of Defense shall submit to the congressional 
defense committees a report on support provided under that 
subsection during that fiscal year. Each such report shall 
describe the support provided, including a statement of the 
recipient of the support and the amount obligated to provide 
the support.
    (g) Fiscal Year 2005 Limitation.--Support may be provided 
under subsection (a) during fiscal year 2005 only from funds 
made available for operations and maintenance pursuant to title 
XV of this Act.
    (h) Period of Authority.--The authority under subsection 
(a) is in effect during each of fiscal years 2005 through 2007.

                Subtitle B--Counterproliferation Matters

SEC. 1211. DEFENSE INTERNATIONAL COUNTERPROLIFERATION PROGRAMS.

    (a) International Security Program to Prevent Unauthorized 
Transfer and Transportation of WMDs.--Subsection (b) of section 
1424 of the Defense Against Weapons of Mass Destruction Act of 
1996 (50 U.S.C. 2333) is amended to read as follows:
    ``(b) Other Countries.--The Secretary of Defense may carry 
out programs under subsection (a) in a country other than a 
country specified in that subsection if the Secretary 
determines that there exists in that country a significant 
threat of the unauthorized transfer and transportation of 
nuclear, biological, or chemical weapons or related 
materials.''.
    (b) International Training Program to Deter WMD 
Proliferation.--Section 1504(e)(3)(A) of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 
Stat. 2918) is amended--
            (1) by striking ``The training program referred to 
        in paragraph (1)(B) is a'' and inserting `The Secretary 
        of Defense may participate in a'';
            (2) by inserting ``of'' after ``acquisition'';
            (3) by striking ``and'' after ``countries,''; and
            (4) by inserting before the period at the end the 
        following: ``, and in other countries in which, as 
        determined by the Secretary of Defense, there exists a 
        significant threat of such proliferation and 
        acquisition''.

SEC. 1212. POLICY AND SENSE OF CONGRESS ON NONPROLIFERATION OF 
                    BALLISTIC MISSILES.

    (a) Findings.--Congress makes the following findings:
            (1) Certain countries are seeking to acquire 
        ballistic missiles and related technologies that could 
        be used to attack the United States or place at risk 
        United States interests, deployed members of the Armed 
        Forces, and allies of the United States and other 
        friendly foreign countries.
            (2) Certain countries continue to actively transfer 
        or sell ballistic missile technologies in contravention 
        of standards of behavior established by the United 
        States and allies of the United States and other 
        friendly foreign countries.
            (3) The spread of ballistic missiles and related 
        technologies worldwide has been slowed by a combination 
        of national and international export controls, forward-
        looking diplomacy, and multilateral interdiction 
        activities to restrict the development and transfer of 
        such missiles and technologies.
    (b) Policy.--It is the policy of the United States to 
develop, support, and strengthen international accords and 
other cooperative efforts to curtail the proliferation of 
ballistic missiles and related technologies which could 
threaten the territory of the United States, allies of the 
United States and other friendly foreign countries, and 
deployed members of the Armed Forces of the United States with 
weapons of mass destruction.
    (c) Sense of Congress.--It is the sense of Congress that--
            (1) the United States should vigorously pursue 
        foreign policy initiatives aimed at eliminating, 
        reducing, or retarding the proliferation of ballistic 
        missiles and related technologies; and
            (2) the United States and the international 
        community should continue to support and strengthen 
        established international accords and other cooperative 
        efforts, including United Nations Security Council 
        Resolution 1540 (April 28, 2004) and the Missile 
        Technology Control Regime, that are designed to 
        eliminate, reduce, or retard the proliferation of 
        ballistic missiles and related technologies.

SEC. 1213. SENSE OF CONGRESS ON THE GLOBAL PARTNERSHIP AGAINST THE 
                    SPREAD OF WEAPONS OF MASS DESTRUCTION.

    (a) Commendation of President.--Congress commends the 
President for the steps taken at the G-8 summit at Sea Island, 
Georgia, on June 8-10, 2004--
            (1) to demonstrate continued support for the Global 
        Partnership against the Spread of Nuclear Weapons and 
        Materials of Mass Destruction; and
            (2) to expand the Partnership (A) by welcoming new 
        members, and (B) by using the Partnership to coordinate 
        nonproliferation projects in Libya, Iraq, and other 
        countries.
    (b) Future Actions.--It is the sense of Congress that the 
President should seek to--
            (1) expand the membership of donor nations to the 
        Global Partnership against the Spread of Nuclear 
        Weapons and Materials of Mass Destruction;
            (2) ensure that the Russian Federation remains the 
        primary focus of the Partnership, but also seek to 
        fund, through the Partnership, efforts in other 
        countries that need assistance to secure or dismantle 
        their own potentially vulnerable weapons or materials;
            (3) develop for the Partnership clear program 
        goals;
            (4) develop for the Partnership transparent project 
        prioritization and planning;
            (5) develop for the Partnership project 
        implementation milestones under periodic review;
            (6) develop under the Partnership agreements 
        between partners for project implementation; and
            (7) give high priority and senior-level attention 
        to resolving disagreements on site access and worker 
        liability under the Partnership.

SEC. 1214. REPORT ON COLLABORATIVE MEASURES TO REDUCE THE RISKS OF A 
                    LAUNCH OF RUSSIAN NUCLEAR WEAPONS.

    Not later than November 1, 2005, the Secretary of Defense 
shall submit to Congress a report on collaborative measures 
between the United States and the Russian Federation to reduce 
the risks of a launch of a nuclear-armed ballistic missile as a 
result of accident, misinformation, miscalculation, or 
unauthorized use. The report shall provide--
            (1) a description and assessment of the 
        collaborative measures that are currently in effect;
            (2) a description and assessment of other 
        collaborative measures that could be pursued in the 
        future;
            (3) an assessment of the potential contributions of 
        such collaborative measures to the national security of 
        the United States;
            (4) an assessment of the effect of such 
        collaborative measures on relations between the United 
        States and the Russian Federation;
            (5) a description of the obstacles and 
        opportunities associated with pursuing such 
        collaborative measures; and
            (6) an assessment of the future of the Joint Data 
        Exchange Center.

                       Subtitle C--Other Matters

SEC. 1221. AUTHORITY FOR HUMANITARIAN ASSISTANCE FOR THE DETECTION AND 
                    CLEARANCE OF LANDMINES EXTENDED TO INCLUDE OTHER 
                    EXPLOSIVE REMNANTS OF WAR.

    (a) Extension of Authority.--Subsection (e)(5) of section 
401 of title 10, United States Code, is amended by inserting 
``and other explosive remnants of war'' after ``landmines'' 
both places it appears.
    (b) Conforming Amendments.--Such section is further 
amended--
            (1) in subsection (a)(4)(A), by inserting ``or 
        other explosive remnants of war'' after ``landmines''; 
        and
            (2) in subsection (c)(2)(B), by striking ``landmine 
        clearing equipment or supplies'' and inserting 
        ``equipment or supplies for clearing landmines or other 
        explosive remnants of war''.

SEC. 1222. EXPANSION OF ENTITIES OF THE PEOPLE'S REPUBLIC OF CHINA 
                    SUBJECT TO CERTAIN PRESIDENTIAL AUTHORITIES WHEN 
                    OPERATING IN THE UNITED STATES.

    Section 1237(b)(4)(B)(i) of the Strom Thurmond National 
Defense Authorization Act for Fiscal Year 1999 (50 U.S.C. 1701 
note) is amended--
            (1) by inserting ``, or affiliated with,'' after 
        ``or controlled by''; and
            (2) by inserting after ``the People's Liberation 
        Army'' the following: ``or a ministry of the government 
        of the People's Republic of China or that is owned or 
        controlled by an entity affiliated with the defense 
        industrial base of the People's Republic of China''.

SEC. 1223. ASSIGNMENT OF NATO NAVAL PERSONNEL TO SUBMARINE SAFETY 
                    PROGRAMS.

    (a) In General.--Chapter 631 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 7234. Submarine safety programs: participation of NATO naval 
                    personnel

    ``(a) Acceptance of Assignment of Foreign Naval 
Personnel.--In order to facilitate the development, 
standardization, and interoperability of submarine vessel 
safety and rescue systems and procedures, the Secretary of the 
Navy may conduct a program under which members of the naval 
service of any of the member nations of the North Atlantic 
Treaty Organization may be assigned to United States commands 
to work on such systems and procedures.
    ``(b) Reciprocity Not Required.--The authority under 
subsection (a) is not an exchange program. Reciprocal 
assignments of members of the Navy to the naval service of a 
foreign country is not a condition for the exercise of such 
authority.
    ``(c) Costs for Foreign Personnel.--(1) The United States 
may not pay the following costs for a member of a foreign naval 
service sent to the United States under the program authorized 
by this section:
            ``(A) Salary.
            ``(B) Per diem.
            ``(C) Cost of living.
            ``(D) Travel costs.
            ``(E) Cost of language or other training.
            ``(F) Other costs.
    ``(2) Paragraph (1) does not apply to the following costs, 
which may be paid by the United States:
            ``(A) The cost of temporary duty directed by the 
        Secretary of the Navy or an officer of the Navy 
        authorized to do so.
            ``(B) The cost of training programs conducted to 
        familiarize, orient, or certify members of foreign 
        naval services regarding unique aspects of their 
        assignments.
            ``(C) Costs incident to the use of the facilities 
        of the Navy in the performance of assigned duties.
    ``(d) Relationship to Other Authority.--The provisions of 
this section shall apply in the exercise of any authority of 
the Secretary of the Navy to enter into an agreement with the 
government of a foreign country, subject to the concurrence of 
the Secretary of State, to provide for the assignment of 
members of the naval service of the foreign country to a Navy 
submarine safety program. The Secretary of the Navy may 
prescribe regulations for the application of this section in 
the exercise of such authority.
    ``(e) Termination of Authority.--The Secretary of the Navy 
may not accept the assignment of a member of the naval service 
of a foreign country under this section after September 30, 
2008.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``7234. Submarine safety programs: participation of NATO naval 
          personnel.''.

SEC. 1224. AVAILABILITY OF WARSAW INITIATIVE FUNDS FOR NEW NATO 
                    MEMBERS.

    (a) Availability of Funds.--Of the amount authorized to be 
appropriated by section 301(5) for operation and maintenance, 
defense-wide activities, and available for the Defense Security 
Cooperation Agency for the Warsaw Initiative Funds (WIF), 
$4,000,000 may be available only in fiscal year 2005 for the 
participation of the North Atlantic Treaty Organization (NATO) 
members set forth in subsection (b) in the exercises and 
programs of the Partnership for Peace program of the North 
Atlantic Treaty Organization.
    (b) NATO Members.--The North Atlantic Treaty Organization 
members set forth in this subsection are as follows:
            (1) Bulgaria.
            (2) Estonia.
            (3) Latvia.
            (4) Lithuania.
            (5) Romania.
            (6) Slovakia.
            (7) Slovenia.

SEC. 1225. BILATERAL EXCHANGES AND TRADE IN DEFENSE ARTICLES AND 
                    DEFENSE SERVICES BETWEEN THE UNITED STATES AND THE 
                    UNITED KINGDOM AND AUSTRALIA.

    (a) Policy.--It is the policy of Congress that bilateral 
exchanges and trade in defense articles and defense services 
between the United States and the United Kingdom and Australia 
are in the national security interest of the United States and 
that such exchanges and trade should be subjected to 
accelerated review and processing consistent with national 
security and the requirements of the Arms Export Control Act 
(22 U.S.C. 2751 et seq.).
    (b) Requirement.--The Secretary of State shall ensure that 
any license application submitted for the export of defense 
articles or defense services to Australia or the United Kingdom 
is expeditiously processed by the Department of State, in 
consultation with the Department of Defense, without referral 
to any other Federal department or agency, except where the 
item is classified or exceptional circumstances apply.
    (c) Regulations.--The President shall ensure that 
regulations are prescribed to implement this section.

SEC. 1226. STUDY ON MISSILE DEFENSE COOPERATION.

    (a) Requirement for Study.--The Secretary of Defense, in 
consultation with the Secretary of State, shall carry out a 
study to determine the advisability of authorizing or 
requiring--
            (1) the Secretary of State to establish procedures 
        for considering technical assistance agreements and 
        related amendments and munitions license applications 
        for the export of defense items related to missile 
        defense not later than 30 days after receiving such 
        agreements, amendments, and munitions license 
        applications, except in cases in which the Secretary of 
        State determines that additional time is required to 
        complete a review of a technical assistance agreement 
        or related amendment or a munitions license application 
        for foreign policy or national security reasons, 
        including concerns regarding the proliferation of 
        ballistic missile technology; and
            (2) the Secretary of Defense to establish 
        procedures to increase the efficiency and transparency 
        of the practices used by the Department of Defense to 
        review technical assistance agreements and related 
        amendments and munitions license applications related 
        to international cooperation on missile defense that 
        are referred to the Department.
    (b) Feasibility of Requiring Comprehensive Authorizations 
for Missile Defense.--In carrying out the study under 
subsection (a), the Secretary of Defense, in consultation with 
the Secretary of State, shall examine the feasibility of 
providing major project authorizations for programs related to 
missile defense similar to the comprehensive export 
authorization specified in section 126.14 of the International 
Traffic in Arms Regulations (section 126.14 of title 22, Code 
of Federal Regulations).
    (c) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall, in 
consultation with the Secretary of State, submit to the 
Committee on Armed Services and the Committee on Foreign 
Relations of the Senate and the Committee on Armed Services and 
the Committee on International Relations of the House of 
Representatives a report on the results of the study under 
subsection (a). The report shall include--
            (1) the determinations resulting from the study, 
        including a determination on the feasibility of 
        providing the major project authorization for projects 
        related to missile defense described in subsection (b); 
        and
            (2) a discussion of the justification for each such 
        determination.
    (d) Definition of Defense Items.--In this section, the term 
``defense items'' has the meaning given that term in section 
38(j)(4)(A) of the Arms Export Control Act (22 U.S.C. 
2778(j)(4)(A)).

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

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

SEC. 1301. SPECIFICATION OF COOPERATIVE THREAT REDUCTION PROGRAMS AND 
                    FUNDS.

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

SEC. 1302. FUNDING ALLOCATIONS.

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

SEC. 1303. TEMPORARY AUTHORITY TO WAIVE LIMITATION ON FUNDING FOR 
                    CHEMICAL WEAPONS DESTRUCTION FACILITY IN RUSSIA.

    (a) Temporary Authority.--Section 1305 of the National 
Defense Authorization Act for Fiscal Year 2000 (Public Law 106-
65; 22 U.S.C. 5952 note) shall not apply for a calendar year 
for which the President submits to Congress a written 
certification that includes--
            (1) a statement as to why a waiver of the 
        conditions described in such section 1305 is important 
        to the national security interests of the United 
        States;
            (2) a full and complete justification for the 
        waiver of the conditions; and
            (3) a plan to promote a full and accurate 
        disclosure by Russia regarding the size, content, 
        status, and location of its chemical weapons stockpile.
    (b) Expiration.--The authority in subsection (a) shall 
expire on December 31, 2006, and no waiver shall remain in 
effect after that date.

SEC. 1304. INCLUSION OF DESCRIPTIVE SUMMARIES IN ANNUAL COOPERATIVE 
                    THREAT REDUCTION REPORTS AND BUDGET JUSTIFICATION 
                    MATERIALS.

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

                    TITLE XIV--SUNKEN MILITARY CRAFT

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

SEC. 1401. PRESERVATION OF TITLE TO SUNKEN MILITARY CRAFT AND 
                    ASSOCIATED CONTENTS.

    Right, title, and interest of the United States in and to 
any United States sunken military craft--
            (1) shall not be extinguished except by an express 
        divestiture of title by the United States; and
            (2) shall not be extinguished by the passage of 
        time, regardless of when the sunken military craft 
        sank.

SEC. 1402. PROHIBITIONS.

    (a) Unauthorized Activities Directed at Sunken Military 
Craft.--No person shall engage in or attempt to engage in any 
activity directed at a sunken military craft that disturbs, 
removes, or injures any sunken military craft, except--
            (1) as authorized by a permit under this title;
            (2) as authorized by regulations issued under this 
        title; or
            (3) as otherwise authorized by law.
    (b) Possession of Sunken Military Craft.--No person may 
possess, disturb, remove, or injure any sunken military craft 
in violation of--
            (1) this section; or
            (2) any prohibition, rule, regulation, ordinance, 
        or permit that applies under any other applicable law.
    (c) Limitations on Application.--
            (1) Actions by United States.--This section shall 
        not apply to actions taken by, or at the direction of, 
        the United States.
            (2) Foreign persons.--This section shall not apply 
        to any action by a person who is not a citizen, 
        national, or resident alien of the United States, 
        except in accordance with--
                    (A) generally recognized principles of 
                international law;
                    (B) an agreement between the United States 
                and the foreign country of which the person is 
                a citizen; or
                    (C) in the case of an individual who is a 
                crew member or other individual on a foreign 
                vessel or foreign aircraft, an agreement 
                between the United States and the flag State of 
                the foreign vessel or aircraft that applies to 
                the individual.
            (3) Loan of sunken military craft.--This section 
        does not prohibit the loan of United States sunken 
        military craft in accordance with regulations issued by 
        the Secretary concerned.

SEC. 1403. PERMITS.

    (a) In General.--The Secretary concerned may issue a permit 
authorizing a person to engage in an activity otherwise 
prohibited by section 1402 with respect to a United States 
sunken military craft, for archaeological, historical, or 
educational purposes, in accordance with regulations issued by 
such Secretary that implement this section.
    (b) Consistency With Other Laws.--The Secretary concerned 
shall require that any activity carried out under a permit 
issued by such Secretary under this section must be consistent 
with all requirements and restrictions that apply under any 
other provision of Federal law.
    (c) Consultation.--In carrying out this section (including 
the issuance after the date of the enactment of this Act of 
regulations implementing this section), the Secretary concerned 
shall consult with the head of each Federal agency having 
authority under Federal law with respect to activities directed 
at sunken military craft or the locations of such craft.
    (d) Application to Foreign Craft.--At the request of any 
foreign State, the Secretary of the Navy, in consultation with 
the Secretary of State, may carry out this section (including 
regulations promulgated pursuant to this section) with respect 
to any foreign sunken military craft of that foreign State 
located in United States waters.

SEC. 1404. PENALTIES.

    (a) In General.--Any person who violates this title, or any 
regulation or permit issued under this title, shall be liable 
to the United States for a civil penalty under this section.
    (b) Assessment and Amount.--The Secretary concerned may 
assess a civil penalty under this section, after notice and an 
opportunity for a hearing, of not more than $100,000 for each 
violation.
    (c) Continuing Violations.--Each day of a continued 
violation of this title or a regulation or permit issued under 
this title shall constitute a separate violation for purposes 
of this section.
    (d) In Rem Liability.--A vessel used to violate this title 
shall be liable in rem for a penalty under this section for 
such violation.
    (e) Other Relief.--If the Secretary concerned determines 
that there is an imminent risk of disturbance of, removal of, 
or injury to any sunken military craft, or that there has been 
actual disturbance of, removal of, or injury to a sunken 
military craft, the Attorney General, upon request of the 
Secretary concerned, may seek such relief as may be necessary 
to abate such risk or actual disturbance, removal, or injury 
and to return or restore the sunken military craft. The 
district courts of the United States shall have jurisdiction in 
such a case to order such relief as the public interest and the 
equities of the case may require.
    (f) Limitations.--An action to enforce a violation of 
section 1402 or any regulation or permit issued under this 
title may not be brought more than 8 years after the date on 
which--
            (1) all facts material to the right of action are 
        known or should have been known by the Secretary 
        concerned; and
            (2) the defendant is subject to the jurisdiction of 
        the appropriate district court of the United States or 
        administrative forum.

SEC. 1405. LIABILITY FOR DAMAGES.

    (a) In General.--Any person who engages in an activity in 
violation of section 1402 or any regulation or permit issued 
under this title that disturbs, removes, or injures any United 
States sunken military craft shall pay the United States 
enforcement costs and damages resulting from such disturbance, 
removal, or injury.
    (b) Included Damages.--Damages referred to in subsection 
(a) may include--
            (1) the reasonable costs incurred in storage, 
        restoration, care, maintenance, conservation, and 
        curation of any sunken military craft that is 
        disturbed, removed, or injured in violation of section 
        1402 or any regulation or permit issued under this 
        title; and
            (2) the cost of retrieving, from the site where the 
        sunken military craft was disturbed, removed, or 
        injured, any information of an archaeological, 
        historical, or cultural nature.

SEC. 1406. RELATIONSHIP TO OTHER LAWS.

    (a) In General.--Except to the extent that an activity is 
undertaken as a subterfuge for activities prohibited by this 
title, nothing in this title is intended to affect--
            (1) any activity that is not directed at a sunken 
        military craft; or
            (2) the traditional high seas freedoms of 
        navigation, including--
                    (A) the laying of submarine cables and 
                pipelines;
                    (B) operation of vessels;
                    (C) fishing; or
                    (D) other internationally lawful uses of 
                the sea related to such freedoms.
    (b) International Law.--This title and any regulations 
implementing this title shall be applied in accordance with 
generally recognized principles of international law and in 
accordance with the treaties, conventions, and other agreements 
to which the United States is a party.
    (c) Law of Finds.--The law of finds shall not apply to--
            (1) any United States sunken military craft, 
        wherever located; or
            (2) any foreign sunken military craft located in 
        United States waters.
    (d) Law of Salvage.--No salvage rights or awards shall be 
granted with respect to--
            (1) any United States sunken military craft without 
        the express permission of the United States; or
            (2) any foreign sunken military craft located in 
        United States waters without the express permission of 
        the relevant foreign state.
    (e) Law of Capture or Prize.--Nothing in this title is 
intended to alter the international law of capture or prize 
with respect to sunken military craft.
    (f) Limitation of Liability.--Nothing in sections 4281 
through 4287 and 4289 of the Revised Statutes (46 U.S.C. App. 
181 et seq.) or section 3 of the Act of February 13, 1893 
(chapter 105; 27 Stat. 445; 46 U.S.C. App. 192), shall limit 
the liability of any person under this section.
    (g) Authorities of the Commandant of the Coast Guard.--
Nothing in this title is intended to preclude or limit the 
application of any other law enforcement authorities of the 
Commandant of the Coast Guard.
    (h) Prior Delegations, Authorizations, and Related 
Regulations.--Nothing in this title shall invalidate any prior 
delegation, authorization, or related regulation that is 
consistent with this title.
    (i) Criminal Law.--Nothing in this title is intended to 
prevent the United States from pursuing criminal sanctions for 
plundering of wrecks, larceny of Government property, or 
violation of any applicable criminal law.

SEC. 1407. ENCOURAGEMENT OF AGREEMENTS WITH FOREIGN COUNTRIES.

    The Secretary of State, in consultation with the Secretary 
of Defense, is encouraged to negotiate and conclude bilateral 
and multilateral agreements with foreign countries with regard 
to sunken military craft consistent with this title.

SEC. 1408. DEFINITIONS.

    In this title:
            (1) Associated contents.--The term ``associated 
        contents'' means--
                    (A) the equipment, cargo, and contents of a 
                sunken military craft that are within its 
                debris field; and
                    (B) the remains and personal effects of the 
                crew and passengers of a sunken military craft 
                that are within its debris field.
            (2) Secretary concerned.--The term ``Secretary 
        concerned'' means--
                    (A) subject to subparagraph (B), the 
                Secretary of a military department; and
                    (B) in the case of a Coast Guard vessel, 
                the Secretary of the Department in which the 
                Coast Guard is operating.
            (3) Sunken military craft.--The term ``sunken 
        military craft'' means all or any portion of--
                    (A) any sunken warship, naval auxiliary, or 
                other vessel that was owned or operated by a 
                government on military noncommercial service 
                when it sank;
                    (B) any sunken military aircraft or 
                military spacecraft that was owned or operated 
                by a government when it sank; and
                    (C) the associated contents of a craft 
                referred to in subparagraph (A) or (B),
        if title thereto has not been abandoned or transferred 
        by the government concerned.
            (4) United states contiguous zone.--The term 
        ``United States contiguous zone'' means the contiguous 
        zone of the United States under Presidential 
        Proclamation 7219, dated September 2, 1999.
            (5) United states internal waters.--The term 
        ``United States internal waters'' means all waters of 
        the United States on the landward side of the baseline 
        from which the breadth of the United States territorial 
        sea is measured.
            (6) United states territorial sea.--The term 
        ``United States territorial sea'' means the waters of 
        the United States territorial sea under Presidential 
        Proclamation 5928, dated December 27, 1988.
            (7) United states waters.--The term ``United States 
        waters'' means United States internal waters, the 
        United States territorial sea, and the United States 
        contiguous zone.

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

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

SEC. 1501. PURPOSE.

    The purpose of this title is to authorize emergency 
appropriations for the Department of Defense for fiscal year 
2005 to provide funds for additional costs due to Operation 
Iraqi Freedom and Operation Enduring Freedom. Funds in this 
title are available upon the enactment of this Act.

SEC. 1502. ARMY PROCUREMENT.

    Funds are hereby authorized to be appropriated for fiscal 
year 2005 for procurement accounts of the Army in amounts as 
follows:
            (3) For weapons and tracked combat vehicles, 
        $50,000,000.
            (4) For ammunition, $110,000,000.
            (5) For other procurement, $755,000,000.
            (6) For National Guard and Reserve equipment, 
        $50,000,000.

SEC. 1503. NAVY AND MARINE CORPS PROCUREMENT.

    (a) Marine Corps.--Funds are hereby authorized to be 
appropriated for fiscal year 2005 for the procurement account 
for the Marine Corps in the amount of $150,000,000.
    (b) Navy and Marine Corps Ammunition.--Funds are hereby 
authorized to be appropriated for fiscal year 2005 for the 
procurement account for ammunition for the Navy and the Marine 
Corps in the amount of $30,000,000.

SEC. 1504. DEFENSE-WIDE ACTIVITIES PROCUREMENT.

    Funds are hereby authorized to be appropriated for fiscal 
year 2005 for the procurement account for Defense-wide 
procurement in the amount of $50,000,000.

SEC. 1505. OPERATION AND MAINTENANCE.

    Funds are hereby authorized to be appropriated for fiscal 
year 2005 for the use of the Armed Forces for expenses, not 
otherwise provided for, operation and maintenance, in amounts 
as follows:
            (1) For the Army, $13,550,000,000.
            (2) For the Navy, $367,000,000.
            (3) For the Marine Corps, $1,665,000,000.
            (4) For the Air Force, $419,000,000.
            (5) For Defense-wide, $404,000,000.

SEC. 1506. DEFENSE WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal 
year 2005 for Defense Working Capital Program in the amount of 
$1,478,000,000.

SEC. 1507. IRAQ FREEDOM FUND.

    (a) In General.--Funds are hereby authorized to be 
appropriated for fiscal year 2005 for the account of the Iraq 
Freedom Fund in amount of $3,892,000,000, to remain available 
for transfer to other accounts in this title until September 
30, 2006. Amounts of authorization so transferred shall be 
merged with and be made available for the same purposes as the 
authorization to which transferred. Of the amounts provided in 
this section $1,800,000,000 shall only be used for classified 
programs.
    (b) Notice to Congress.--A transfer may be made from the 
Iraq Freedom Fund only after the Secretary of Defense notifies 
the congressional defense committees with respect to the 
proposed transfer in writing not less than five days before the 
transfer is made.

SEC. 1508. DEFENSE HEALTH PROGRAM.

    Funds are hereby authorized to be appropriated for the 
Department of Defense for fiscal year 2005 for expenses, not 
otherwise provided for, the Defense Health Program, in the 
amount of $780,000,000, for Operation and Maintenance.

SEC. 1509. MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the 
Department of Defense for military personnel accounts for 
fiscal year 2005 a total of $1,250,000,000.

SEC. 1510. TREATMENT AS ADDITIONAL AUTHORIZATIONS.

    The amounts authorized to be appropriated by this title are 
in addition to amounts otherwise authorized to be appropriated 
by this Act.

SEC. 1511. TRANSFER AUTHORITY.

    (a) Authority To Transfer Authorizations.--(1) Upon 
determination by the Secretary of Defense that such action is 
necessary in the national interest, the Secretary may transfer 
amounts of authorizations made available to the Department of 
Defense in this title for fiscal year 2005 between any such 
authorizations for that fiscal year (or any subdivisions 
thereof). Amounts of authorizations so transferred shall be 
merged with and be available for the same purposes as the 
authorization to which transferred.
    (2) The total amount of authorizations that the Secretary 
may transfer under the authority of this section may not exceed 
$1,500,000,000. The transfer authority provided in this section 
is in addition to any other transfer authority available to the 
Secretary of Defense.
    (b) Limitations.--The authority provided by this section to 
transfer authorizations--
            (1) may only be used to provide authority for items 
        that have a higher priority than the items from which 
        authority is transferred;
            (2) may not be used to provide authority for an 
        item that has been denied authorization by Congress; 
        and
            (3) may not be combined with the authority under 
        section 1001.
    (c) Effect on Authorization Amounts.--A transfer made from 
one account to another under the authority of this section 
shall be deemed to increase the amount authorized for the 
account to which the amount is transferred by an amount equal 
to the amount transferred.
    (d) Notice to Congress.--A transfer may be made under the 
authority of this section only after the Secretary of Defense--
            (1) consults with the chairmen and ranking members 
        of the congressional defense committees with respect to 
        the proposed transfer; and
            (2) after such consultation, notifies those 
        committees in writing of the proposed transfer not less 
        than five days before the transfer is made.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

SEC. 2001. SHORT TITLE.

    This division may be cited as the ``Military Construction 
Authorization Act for Fiscal Year 2005''.

                            TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Modification of authority to carry out certain fiscal year 
          2004 projects.
Sec. 2106. Modification of authority to carry out certain fiscal year 
          2003 project.

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

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

                                         Army: Inside the United States
----------------------------------------------------------------------------------------------------------------
                      State                                 Installation or Location                 Amount
----------------------------------------------------------------------------------------------------------------
Alabama.........................................  Anniston Army Depot.........................       $23,690,000
                                                  Fort Rucker.................................       $16,000,000
Alaska..........................................  Fort Richardson.............................       $24,300,000
                                                  Fort Wainwright.............................       $92,459,000
Arizona.........................................  Fort Huachuca...............................       $18,000,000
California......................................  Fort Irwin..................................       $38,100,000
                                                  Sierra Army Depot...........................       $12,600,000
Colorado........................................  Fort Carson.................................       $59,508,000
Florida.........................................  Camp Rudder.................................        $1,850,000
Georgia.........................................  Fort Benning................................       $71,777,000
                                                  Fort Gillem.................................        $5,800,000
                                                  Fort McPherson..............................        $4,900,000
                                                  Fort Stewart/Hunter Army Air Field..........       $65,495,000
Hawaii..........................................  Helemano Military Reservation...............       $75,300,000
                                                  Hickam Air Force Base.......................       $11,200,000
                                                  Schofield Barracks..........................      $249,792,000
Kansas..........................................  Fort Riley..................................       $59,550,000
Kentucky........................................  Fort Campbell...............................       $89,600,000
                                                  Fort Knox...................................       $75,750,000
Louisiana.......................................  Fort Polk...................................       $70,953,000
Maryland........................................  Aberdeen Proving Ground.....................       $13,000,000
                                                  Fort Detrick................................        $4,000,000
Missouri........................................  Fort Leonard Wood...........................       $31,850,000
New Jersey......................................  Picatinny Arsenal...........................        $9,900,000
New Mexico......................................  White Sands Missile Range...................       $33,000,000
New York........................................  Fort Drum...................................       $13,650,000
                                                  Fort Hamilton...............................        $7,600,000
                                                  Hancock Field...............................        $6,000,000
                                                  Military Entrance Processing Station,               $6,200,000
                                                   Buffalo....................................
                                                  United States Military Academy, West Point..       $60,000,000
North Carolina..................................  Fort Bragg..................................      $111,687,000
Oklahoma........................................  Fort Sill...................................       $17,800,000
Pennsylvania....................................  Letterkenny Depot...........................        $5,400,000
Texas...........................................  Fort Bliss..................................       $19,400,000
                                                  Fort Hood...................................       $85,188,000
                                                  Fort Sam Houston............................       $11,400,000
Virginia........................................  Fort A.P. Hill..............................       $10,775,000
                                                  Fort Lee....................................        $4,250,000
                                                  Fort Myer...................................       $49,526,000
Washington......................................  Fort Lewis..................................       $56,200,000
                                                                                               -----------------
                                                    Total.....................................    $1,623,450,000
----------------------------------------------------------------------------------------------------------------

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

                     Army: Outside the United States
------------------------------------------------------------------------
           Country              Installation or Location      Amount
------------------------------------------------------------------------
Germany......................  Grafenwoehr..............     $77,200,000
Italy........................  Livorno..................     $26,000,000
Korea........................  Camp Humphreys...........     $12,000,000
                                                         ---------------
                                 Total..................    $115,200,000
------------------------------------------------------------------------

SEC. 2102. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts 
appropriated pursuant to the authorization of appropriations in 
section 2104(a)(5)(A), the Secretary of the Army may construct 
or acquire family housing units (including land acquisition and 
supporting facilities) at the installations or locations, for 
the purposes, and in the amounts set forth in the following 
table:

                                              Army: Family Housing
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or Location             Purpose               Amount
----------------------------------------------------------------------------------------------------------------
Alaska..................................  Fort Richardson...........  92 Units..................     $42,000,000
                                          Fort Wainwright...........  246 Units.................    $124,000,000
Arizona.................................  Fort Huachuca.............  205 Units.................     $41,000,000
                                          Yuma Proving Grounds......  55 Units..................     $14,900,000
Kansas..................................  Fort Riley................  126 Units.................     $33,000,000
New Mexico..............................  White Sands Missile Range.  156 Units.................     $31,000,000
Oklahoma................................  Fort Sill.................  247 Units.................     $47,000,000
Virginia................................  Fort Lee..................  218 Units.................     $46,000,000
                                          Fort Monroe...............  68 Units..................     $16,000,000
                                                                                                 ---------------
                                            Total...................  ..........................    $394,900,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2104(a)(5)(A), the Secretary of the Army may carry out 
architectural and engineering services and construction design 
activities with respect to the construction or improvement of 
family housing units in an amount not to exceed $29,209,000.

SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, 
and using amounts appropriated pursuant to the authorization of 
appropriations in section 2104(a)(5)(A), the Secretary of the 
Army may improve existing military family housing units in an 
amount not to exceed $211,990,000.

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

    (a) Authorization of Appropriations.--Funds are hereby 
authorized to be appropriated for fiscal years beginning after 
September 30, 2004, for military construction, land 
acquisition, and military family housing functions of the 
Department of the Army in the total amount of $3,537,141,000, 
as follows:
            (1) For military construction projects inside the 
        United States authorized by section 2101(a), 
        $1,453,950,000.
            (2) For military construction projects outside the 
        United States authorized by section 2101(b), 
        $115,200,000.
            (3) For unspecified minor military construction 
        projects authorized by section 2805 of title 10, United 
        States Code, $20,000,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, 
        United States Code, $151,335,000.
            (5) For military family housing functions:
                    (A) For construction and acquisition, 
                planning and design, and improvement of 
                military family housing and facilities, 
                $636,099,000.
                    (B) For support of military family housing 
                (including the functions described in section 
                2833 of title 10, United States Code), 
                $926,507,000.
            (6) For the construction of phase 2 of a barracks 
        complex, 5th & 16th Street, at Fort Stewart/Hunter Army 
        Air Field, Georgia, authorized by section 2101(a) of 
        the Military Construction Authorization Act for Fiscal 
        Year 2004 (division B of Public Law 108-136; 117 Stat. 
        1697), $32,950,000.
            (7) For the construction of phase 3 of a barracks 
        complex renewal, Capron Road, at Schofield Barracks, 
        Hawaii, authorized by section 2101(a) of the Military 
        Construction Authorization Act for Fiscal Year 2002 
        (division B of Public Law 107-107; 115 Stat. 1283), as 
        amended by section 2105 of the Military Construction 
        Authorization Act for Fiscal Year 2004 (division B of 
        Public Law 108-136; 117 Stat. 1697), $48,000,000.
            (8) For the construction of phase 2 of the Lewis & 
        Clark instructional facility at Fort Leavenworth, 
        Kansas, authorized by section 2101(a) of the Military 
        Construction Authorization Act for Fiscal Year 2003 
        (division B of Public Law 107-314; 116 Stat. 2681), 
        $44,000,000.
            (9) For the construction of phase 2 of a barracks 
        complex at Wheeler Sack Army Air Field at Fort Drum, 
        New York, authorized by section 2101(a) of the Military 
        Construction Authorization Act for Fiscal Year 2004 
        (division B of Public Law 108-136; 117 Stat. 1697), 
        $48,000,000.
            (10) For the construction of phase 2 of a barracks 
        complex, Bastogne Drive, Fort Bragg, North Carolina, 
        authorized by section 2101(a) of the Military 
        Construction Authorization Act for Fiscal Year 2004 
        (division B of Public Law 108-136; 117 Stat. 1697), 
        $48,000,000.
            (11) For the construction of phase 3 of a 
        maintenance complex at Fort Sill, Oklahoma, authorized 
        by section 2101(a) of the Military Construction 
        Authorization Act for Fiscal Year 2003 (division B of 
        Public Law 107-314; 116 Stat. 2681), $13,100,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 
of title 10, United States Code, and any other cost variation 
authorized by law, the total cost of all projects carried out 
under section 2101 of this Act may not exceed the sum of the 
following:
            (1) The total amount authorized to be appropriated 
        under paragraphs (1) and (2) of subsection (a).
            (2) $41,000,000 (the balance of the amount 
        authorized under section 2101(a) to upgrade Drum Road, 
        Helemano Military Reservation, Hawaii).
            (3) $25,000,000 (the balance of the amount 
        authorized under section 2101(a) for construction of a 
        vehicle maintenance facility, Schofield Barracks, 
        Hawaii).
            (4) $25,000,000 (the balance of the amount 
        authorized under section 2101(a) for construction of a 
        barracks complex, Fort Campbell, Kentucky).
            (5) $22,000,000 (the balance of the amount 
        authorized under section 2101(a) for construction of 
        trainee barracks, Basic Training Complex 1, Fort Knox, 
        Kentucky).
            (6) $25,500,000 (the balance of the amount 
        authorized under section 2101(a) for construction of a 
        library and learning facility, United States Military 
        Academy, West Point, New York).
            (7) $31,000,000 (the balance of the amount 
        authorized under section 2101(a) for a barracks complex 
        renewal project, Fort Bragg, North Carolina).
    (c) Adjustment.--The total amount authorized to be 
appropriated pursuant to paragraphs (1) through (11) of 
subsection (a) is the sum of the amounts authorized to be 
appropriated in such paragraphs, reduced by $5,550,000, which 
represents prior year savings.

SEC. 2105. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
                    2004 PROJECTS.

    (a) Modification of Inside the United States Projects.--The 
table in section 2101(a) of the Military Construction 
Authorization Act for Fiscal Year 2004 (division B of Public 
Law 108-136; 117 Stat. 1697) is amended--
            (1) in the item relating to Fort Stewart/Hunter 
        Army Air Field, Georgia, by striking ``$113,500,000'' 
        in the amount column and inserting ``$114,450,000'';
            (2) in the item relating to Fort Drum, New York, by 
        striking ``$130,700,000'' in the amount column and 
        inserting ``$135,700,000''; and
            (3) by striking the amount identified as the total 
        in the amount column and inserting ``$1,043,150,000''.
    (b) Conforming Amendments.--Section 2104(b) of that Act 
(117 Stat. 1700) is amended--
            (1) in paragraph (2), by striking ``$32,000,000'' 
        and inserting ``$32,950,000''; and
            (2) in paragraph (4), by striking ``$43,000,000'' 
        and inserting ``$48,000,000''.

SEC. 2106. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
                    2003 PROJECT.

    (a) Modification of Inside the United States Project.--The 
table in section 2101(a) of the Military Construction 
Authorization Act for Fiscal Year 2003 (division B of Public 
Law 107-314; 116 Stat. 2681), as amended by section 2105(a) of 
the Military Construction Authorization Act for Fiscal Year 
2004 (division B of Public Law 108-136; 117 Stat. 1700), is 
further amended--
            (1) in the item relating to Fort Sill, Oklahoma, by 
        striking ``$39,652,000'' in the amount column and 
        inserting ``$40,752,000''; and
            (2) by striking the amount identified as the total 
        in the amount column and inserting ``$1,157,267,000''.
    (b) Conforming Amendment.--Section 2104(b)(6) of the 
Military Construction Authorization Act for Fiscal Year 2003 
(division B of Public Law 107-314; 116 Stat. 2684) is amended 
by striking ``$25,000,000'' and inserting ``$26,100,000''.

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

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

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

                     Navy: Inside the United States
------------------------------------------------------------------------
            State               Installation or Location      Amount
------------------------------------------------------------------------
Arizona......................  Marine Corps Air Station,     $26,670,000
                                Yuma.
California...................  Marine Corps Air-Ground       $15,700,000
                                Task Force Training
                                Center, Twentynine Palms
                               Marine Corps Air Station,     $11,540,000
                                Camp Pendleton..........
                               Marine Corps Base, Camp       $26,915,000
                                Pendleton...............
                               Marine Corps Logistics         $4,930,000
                                Base, Barstow...........
                               Naval Air Facility, El        $54,331,000
                                Centro..................
                               Naval Air Station, North      $10,180,000
                                Island..................
                               Naval Surface Warfare          $9,850,000
                                Center, Division Corona.
                               Recruit Depot San Diego..      $8,110,000
Connecticut..................  Naval Submarine Base, New     $50,302,000
                                London..................
District of Columbia.........  Naval Observatory,             $3,239,000
                                Washington..............
Florida......................  Eglin Air Force Base.....      $2,060,000
                               Naval Station, Mayport...      $6,200,000
Georgia......................  Strategic Weapons             $16,000,000
                                Facility Atlantic, Kings
                                Bay.....................
Hawaii.......................  Naval Shipyard, Pearl          $5,100,000
                                Harbor..................
Illinois.....................  Naval Training Center,        $74,781,000
                                Great Lakes.............
Indiana......................  Naval Surface Warfare         $12,600,000
                                Center, Crane...........
Maine........................  Naval Air Station,             $6,220,000
                                Brunswick...............
Maryland.....................  Naval Surface Warfare         $23,000,000
                                Center, Indian Head.....
North Carolina...............  Marine Corps Air Station,     $35,140,000
                                New River...............
                               Marine Corps Base, Camp       $11,030,000
                                Lejeune.................
                               Navy Outlying Landing        $136,900,000
                                Field, Washington County
Nevada.......................  Naval Air Station, Fallon      $4,980,000
Rhode Island.................  Naval Air Station,             $5,490,000
                                Newport.................
South Carolina...............  Marine Corps Air Station,      $5,480,000
                                Beaufort................
                               Naval Weapons Station,        $12,209,000
                                Charleston..............
Virginia.....................  Camp Elmore Marine Corps      $13,500,000
                                Detachment..............
                               Marine Corps Air              $73,838,000
                                Facility, Quantico......
                               Marine Corps Combat           $25,090,000
                                Development Command,
                                Quantico................
                               Naval Air Station, Oceana      $2,770,000
                               Naval Amphibious Base,         $9,220,000
                                Little Creek............
                               Naval Station, Norfolk...      $4,330,000
                               Naval Weapons Station,         $9,870,000
                                Yorktown................
Washington...................  Naval Air Station,             $1,990,000
                                Whidbey Island..........
                               Naval Shipyard, Puget         $20,305,000
                                Sound...................
                               Naval Station, Bremerton.     $74,125,000
                               Strategic Weapons            $138,060,000
                                Facility Pacific, Bangor
                                                         ---------------
                                 Total..................    $952,055,000
------------------------------------------------------------------------

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

                     Navy: Outside the United States
------------------------------------------------------------------------
           Country              Installation or Location      Amount
------------------------------------------------------------------------
Diego Garcia.................  Naval Support Facility,       $17,500,000
                                Diego Garcia............
Guam.........................  Naval Public Works            $20,700,000
                                Center, Guam............
                               Naval Station, Guam......     $12,500,000
Italy........................  Sigonella................     $22,550,000
Spain........................  Naval Station, Rota......     $32,700,000
                                                         ---------------
                                 Total..................    $105,950,000
------------------------------------------------------------------------

    (c) Unspecified Worldwide.--Using the amounts appropriated 
pursuant to the authorization of appropriations in section 
2204(a)(3), the Secretary of the Navy may acquire real property 
and carry out military construction projects for unspecified 
installations or locations in the amount set forth in the 
following table:

                       Navy: Unspecified Worldwide
------------------------------------------------------------------------
           Location             Installation or Location      Amount
------------------------------------------------------------------------
                               Unspecified Worldwide....    $105,982,000
                                                         ---------------
                                 Total..................    $105,982,000
------------------------------------------------------------------------

SEC. 2202. FAMILY HOUSING.

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

                                              Navy: Family Housing
----------------------------------------------------------------------------------------------------------------
                  State                          Installation                   Purpose               Amount
----------------------------------------------------------------------------------------------------------------
North Carolina..........................  Marine Corps Air Station,   198 Units.................     $27,002,000
                                           Cherry Point.............
                                                                                                 ---------------
                                            Total...................  ..........................     $27,002,000
----------------------------------------------------------------------------------------------------------------

SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, 
and using amounts appropriated pursuant to the authorization of 
appropriations in section 2204(a)(6)(A), the Secretary of the 
Navy may improve existing military family housing units in an 
amount not to exceed $112,105,000.

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

    (a) Authorization of Appropriations.--Funds are hereby 
authorized to be appropriated for fiscal years beginning after 
September 30, 2004, for military construction, land 
acquisition, and military family housing functions of the 
Department of the Navy in the total amount of $1,897,245,000, 
as follows:
            (1) For military construction projects inside the 
        United States authorized by section 2201(a), 
        $712,927,000.
            (2) For military construction projects outside the 
        United States authorized by section 2201(b), 
        $94,950,000.
            (3) For the military construction projects at 
        unspecified worldwide locations authorized by section 
        2201(c), $40,000,000.
            (4) For unspecified minor military construction 
        projects authorized by section 2805 of title 10, United 
        States Code, $12,000,000.
            (5) For architectural and engineering services and 
        construction design under section 2807 of title 10, 
        United States Code, $87,067,000.
            (6) For military family housing functions:
                    (A) For construction and acquisition, 
                planning and design, and improvement of 
                military family housing and facilities, 
                $139,107,000.
                    (B) For support of military family housing 
                (including functions described in section 2833 
                of title 10, United States Code), $696,304,000.
            (7) For the construction of increment 2 of the 
        tertiary sewage treatment plant at Marine Corps Base, 
        Camp Pendleton, California, authorized by section 
        2201(a) of the Military Construction Authorization Act 
        for Fiscal Year 2004 (division B of Public Law 108-136; 
        117 Stat. 1703), $25,690,000.
            (8) For the construction of increment 2 of the 
        general purpose berthing pier at Naval Weapons Station, 
        Earle, New Jersey, authorized by section 2201(a) of the 
        Military Construction Authorization Act for Fiscal Year 
        2004 (division B of Public Law 108-136; 117 Stat. 
        1704), $49,200,000.
            (9) For the construction of increment 2 of pier 11 
        replacement at Naval Station, Norfolk, Virginia, 
        authorized by section 2201(a) of the Military 
        Construction Authorization Act for Fiscal Year 2004 
        (division B of Public Law 108-136; 117 Stat. 1704), 
        $40,000,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 
of title 10, United States Code, and any other cost variation 
authorized by law, the total cost of all projects carried out 
under section 2201 of this Act may not exceed the sum of the 
following:
            (1) The total amount authorized to be appropriated 
        under paragraphs (1), (2), and (3) of subsection (a).
            (2) $21,000,000 (the balance of the amount 
        authorized under section 2201(a) for apron and hangar 
        recapitalization, Naval Air Facility, El Centro, 
        California).
            (3) $116,750,000 (the balance of the amount 
        authorized under section 2201(a) for land acquisition 
        for an outlying landing field in Washington County, 
        North Carolina).
            (4) $34,098,000 (the balance of the amount 
        authorized under section 2201(a) for construction of a 
        White Side complex, Marine Corps Air Facility, 
        Quantico, Virginia).
            (5) $40,000,000 (the balance of the amount 
        authorized under section 2201(a) for construction of 
        bachelor enlisted quarters, Naval Station, Bremerton, 
        Washington).
            (6) $95,320,000 (the balance of the amount 
        authorized under section 2201(a) for construction of a 
        limited area processing and storage complex, Strategic 
        Weapons Facility Pacific, Bangor, Washington).
            (7) $65,982,000 (the balance of the amount 
        authorized under section 2201(c) for construction of a 
        presidential helicopter programs support facility at an 
        unspecified location).
    (c) Adjustment.--The total amount authorized to be 
appropriated pursuant to paragraphs (1) through (9) of 
subsection (a) is the sum of the amounts authorized to be 
appropriated in such paragraphs, reduced by $5,549,000, which 
represents prior year savings.

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

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

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

                   Air Force: Inside the United States
------------------------------------------------------------------------
            State               Installation or Location      Amount
------------------------------------------------------------------------
Alaska.......................  Elmendorf Air Force Base.     $52,057,000
Arizona......................  Davis-Monthan Air Force       $17,029,000
                                Base.
                               Luke Air Force Base......     $17,900,000
Arkansas.....................  Little Rock Air Force          $8,931,000
                                Base.
California...................  Beale Air Force Base.....     $10,186,000
                               Edwards Air Force Base...      $9,965,000
                               Travis Air Force Base....     $18,894,000
Colorado.....................  Buckley Air Force Base...     $12,247,000
Delaware.....................  Dover Air Force Base.....      $9,500,000
Florida......................  Tyndall Air Force Base...     $27,614,000
                               Patrick Air Force Base...      $8,800,000
Georgia......................  Moody Air Force Base.....      $9,600,000
                               Robins Air Force Base....     $21,900,000
Hawaii.......................  Hickam Air Force Base....     $30,900,000
                               Maui Site................      $7,500,000
Louisiana....................  Barksdale Air Force Base.     $13,800,000
Maryland.....................  Andrews Air Force Base...     $17,100,000
Mississippi..................  Columbus Air Force Base..      $7,700,000
Missouri.....................  Whiteman Air Force Base..      $7,600,000
Montana......................  Malmstrom Air Force Base.      $5,600,000
Nebraska.....................  Offutt Air Force Base....      $6,221,000
New Mexico...................  Cannon Air Force Base....      $9,500,000
                               Kirtland Air Force Base..      $9,200,000
North Carolina...............  Pope Air Force Base......     $15,150,000
North Dakota.................  Minot Air Force Base.....      $8,900,000
Ohio.........................  Wright-Patterson Air           $9,904,000
                                Force Base.
Oklahoma.....................  Altus Air Force Base.....      $7,000,000
                               Tinker Air Force Base....      $8,000,000
South Carolina...............  Shaw Air Force Base......      $7,000,000
South Dakota.................  Ellsworth Air Force Base.      $9,867,000
Tennessee....................  Arnold Air Force Base....     $24,500,000
Texas........................  Dyess Air Force Base.....     $14,300,000
                               Lackland Air Force Base..      $2,596,000
                               Laughlin Air Force Base..      $6,900,000
                               Sheppard Air Force Base..     $50,284,000
Utah.........................  Hill Air Force Base......     $25,713,000
Wyoming......................  F.E. Warren Air Force          $5,500,000
                                Base.
                                                         ---------------
                                 Total..................    $535,358,000
------------------------------------------------------------------------

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

                  Air Force: Outside the United States
------------------------------------------------------------------------
           Country              Installation or Location      Amount
------------------------------------------------------------------------
Germany......................  Ramstein Air Base........     $25,404,000
Greenland....................  Thule Air Base...........     $19,800,000
Guam.........................  Andersen Air Force Base..     $19,593,000
Italy........................  Aviano Air Base..........      $6,760,000
Korea........................  Kunsan Air Base..........     $37,100,000
                               Osan Air Base............     $18,600,000
Portugal.....................  Lajes Field, Azores......      $5,689,000
Spain........................  Naval Station, Rota......     $14,153,000
United Kingdom...............  Royal Air Force                $5,500,000
                                Lakenheath.
                                                         ---------------
                                 Total..................    $152,599,000
------------------------------------------------------------------------

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

                    Air Force: Unspecified Worldwide
------------------------------------------------------------------------
           Location             Installation or Location      Amount
------------------------------------------------------------------------
                               Classified Locations.....     $26,121,000
                               Unspecified Worldwide....     $28,090,000
                                                         ---------------
                                 Total..................     $54,211,000
------------------------------------------------------------------------

SEC. 2302. FAMILY HOUSING.

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

                                            Air Force: Family Housing
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or Location             Purpose               Amount
----------------------------------------------------------------------------------------------------------------
Arizona.................................  Davis-Monthan Air Force     250 Units.................     $48,500,000
                                           Base.....................
California..............................  Edwards Air Force Base....  218 Units.................     $41,202,000
                                          Vandenberg Air Force Base.  120 Units.................     $30,906,000
Florida.................................  MacDill Air Force Base....  61 Units..................     $21,723,000
                                          MacDill Air Force Base....  Housing Maintenance             $1,250,000
                                                                       Facility.................
Idaho...................................  Mountain Home Air Force     147 Units.................     $39,333,000
                                           Base.....................
Mississippi.............................  Columbus Air Force Base...  Housing Management                $711,000
                                                                       Facility.................
Missouri................................  Whiteman Air Force Base...  160 Units.................     $37,087,000
Montana.................................  Malmstrom Air Force Base..  115 Units.................     $29,910,000
North Carolina..........................  Seymour Johnson Air Force   167 Units.................     $32,693,000
                                           Base.....................
North Dakota............................  Grand Forks Air Force Base  90 Units..................     $26,169,000
                                          Minot Air Force Base......  142 Units.................     $37,087,000
South Carolina..........................  Charleston Air Force Base.  Fire Station..............      $1,976,000
South Dakota............................  Ellsworth Air Force Base..  75 Units..................     $21,482,000
Texas...................................  Dyess Air Force Base......  127 Units.................     $28,664,000
                                          Goodfellow Air Force Base.  127 Units.................     $20,604,000
Germany.................................  Ramstein Air Base.........  144 Units.................     $57,691,000
Italy...................................  Aviano Air Base...........  Housing Office............      $2,542,000
Korea...................................  Osan Air Base.............  117 Units.................     $46,834,000
United Kingdom..........................  Royal Air Force Lakenheath  154 Units.................     $43,976,000
                                                                                                 ---------------
                                            Total...................  ..........................    $570,340,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2304(a)(6)(A), the Secretary of the Air Force may carry out 
architectural and engineering services and construction design 
activities with respect to the construction or improvement of 
military family housing units in an amount not to exceed 
$38,266,000.

SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, 
and using amounts appropriated pursuant to the authorization of 
appropriations in section 2304(a)(6)(A), the Secretary of the 
Air Force may improve existing military family housing units in 
an amount not to exceed $238,353,000.

SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

    (a) Authorization of Appropriations.--Funds are hereby 
authorized to be appropriated for fiscal years beginning after 
September 30, 2004, for military construction, land 
acquisition, and military family housing functions of the 
Department of the Air Force in the total amount of 
$2,559,768,000, as follows:
            (1) For military construction projects inside the 
        United States authorized by section 2301(a), 
        $525,358,000.
            (2) For military construction projects outside the 
        United States authorized by section 2301(b), 
        $142,771,000.
            (3) For military construction projects at 
        unspecified worldwide locations authorized by section 
        2301(c), $54,211,000.
            (4) For unspecified minor military construction 
        projects authorized by section 2805 of title 10, United 
        States Code, $13,000,000.
            (5) For architectural and engineering services and 
        construction design under section 2807 of title 10, 
        United States Code, $124,085,000.
            (6) For military family housing functions:
                    (A) For construction and acquisition, 
                planning and design, and improvement of 
                military family housing and facilities, 
                $846,959,000.
                    (B) For support of military family housing 
                (including functions described in section 2833 
                of title 10, United States Code), $853,384,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 
of title 10, United States Code, and any other cost variation 
authorized by law, the total cost of all projects carried out 
under section 2301 of this Act may not exceed the sum of the 
following:
            (1) The total amount authorized to be appropriated 
        under paragraphs (1), (2), and (3) of subsection (a).
            (2) $10,000,000 (the balance of the amount 
        authorized under section 2301(a) for construction of a 
        hanger for an aircraft maintenance unit, Tyndall Air 
        Force Base, Florida).
    (c) Adjustment.--The total amount authorized to be 
appropriated pursuant to paragraphs (1) through (6) of 
subsection (a) is the sum of the amounts authorized to be 
appropriated in such paragraphs, reduced by $5,550,000, which 
represents prior year savings.

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

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

    (a) Inside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2404(a)(1), the Secretary of Defense may acquire real property 
and carry out military construction projects for the 
installations or locations inside the United States, and in the 
amounts, set forth in the following table:

               Defense Agencies: Inside the United States
------------------------------------------------------------------------
            Agency              Installation or Location      Amount
------------------------------------------------------------------------
Defense Intelligence Agency..  Bolling Air Force Base,        $6,000,000
                                District of Columbia....
Defense Logistics Agency.....  Defense Distribution          $22,300,000
                                Depot, New Cumberland,
                                Pennsylvania............
                               Defense Distribution          $10,100,000
                                Depot, Richmond,
                                Virginia................
                               Defense Fuel Support           $3,589,000
                                Point, Naval Air
                                Station, Oceana,
                                Virginia................
                               Marina Corps Air Station,     $22,700,000
                                Cherry Point, North
                                Carolina................
                               Naval Air Station,             $3,900,000
                                Kingsville, Texas.......
                               Naval Station, Pearl           $3,500,000
                                Harbor, Hawaii..........
                               Tinker Air Force Base,         $5,400,000
                                Oklahoma................
                               Travis Air Force Base,        $15,100,000
                                California..............
Missile Defense Agency.......  Redstone Arsenal, Alabama     $19,560,000
National Security Agency.....  Fort Meade, Maryland.....     $15,007,000
Special Operations Command...  Corona, California.......     $13,600,000
                               Fleet Combat Training          $5,700,000
                                Center, Dam Neck,
                                Virginia................
                               Fort A.P. Hill, Virginia.      $1,500,000
                               Fort Bragg, North             $42,888,000
                                Carolina................
                               Fort Campbell, Kentucky..      $3,500,000
                               Fort Stewart/Hunter Army      $17,600,000
                                Air Field, Georgia......
                               Hurlburt Field, Florida..      $2,500,000
                               Naval Amphibious Base,        $33,200,000
                                Little Creek, Virginia..
                               Niland, California.......      $1,000,000
TRICARE Management Activity..  Buckley Air Force Base,        $2,100,000
                                Colorado................
                               Defense Language               $6,700,000
                                Institute, Presidio,
                                Monterey................
                               Fort Belvoir, Virginia...    $100,000,000
                               Fort Benning, Georgia....      $7,100,000
                               Langley Air Force Base,       $50,800,000
                                Virginia................
                               Marine Corps Recruit          $25,000,000
                                Depot, Parris Island,
                                South Carolina..........
                               Naval Air Station,            $28,438,000
                                Jacksonville, Florida...
                                                         ---------------
                                 Total..................    $468,782,000
------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2404(a)(2), the Secretary of Defense may acquire real property 
and carry out military construction projects for the 
installations or locations outside the United States, and in 
the amounts, set forth in the following table:

               Defense Agencies: Outside the United States
------------------------------------------------------------------------
            Agency              Installation or Location      Amount
------------------------------------------------------------------------
Defense Education Activity...  Grafenwoehr, Germany.....     $36,247,000
                               Naval Station, Guam......     $26,964,000
                               Vilseck, Germany.........      $9,011,000
Defense Logistics Agency.....  Defense Fuel Support          $19,113,000
                                Point, Lajes Field,
                                Portugal................
Special Operations Command...  Naval Station, Guam,           $2,200,000
                                Mariana Islands.........
TRICARE Management Activity..  Diego Garcia.............      $3,800,000
                               Grafenwoehr, Germany.....     $13,000,000
                                                         ---------------
                                 Total..................    $110,335,000
------------------------------------------------------------------------

    (c) Unspecified Worldwide.--Using the amounts appropriated 
pursuant to the authorization of appropriations in section 
2404(a)(3), the Secretary of Defense may acquire real property 
and carry out military construction projects for the 
installations or locations, and in the amounts, set forth in 
the following table:

                 Defense Agencies: Unspecified Worldwide
------------------------------------------------------------------------
           Location             Installation or Location      Amount
------------------------------------------------------------------------
Special Operations Command...  Classified Locations.....      $7,400,000
                               Unspecified Worldwide....      $2,900,000
                                                         ---------------
                                 Total..................     $10,300,000
------------------------------------------------------------------------

SEC. 2402. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, 
and using amounts appropriated pursuant to the authorization of 
appropriations in section 2404(a)(9)(A), the Secretary of 
Defense may improve existing military family housing units in 
an amount not to exceed $49,000.

SEC. 2403. ENERGY CONSERVATION PROJECTS.

    Using amounts appropriated pursuant to the authorization of 
appropriations in section 2404(a)(7), the Secretary of Defense 
may carry out energy conservation projects under section 2865 
of title 10, United States Code, in the amount of $50,000,000.

SEC. 2404. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

    (a) In General.--Funds are hereby authorized to be 
appropriated for fiscal years beginning after September 30, 
2004, for military construction, land acquisition, and military 
family housing functions of the Department of Defense (other 
than the military departments) in the total amount of 
$1,055,663,000, as follows:
            (1) For military construction projects inside the 
        United States authorized by section 2401(a), 
        $411,782,000.
            (2) For military construction projects outside the 
        United States authorized by section 2401(b), 
        $110,335,000.
            (3) For the military construction projects at 
        unspecified worldwide locations authorized by section 
        2401(c), $10,300,000.
            (4) For unspecified minor military construction 
        projects under section 2805 of title 10, United States 
        Code, $20,938,000.
            (5) For contingency construction projects of the 
        Secretary of Defense under section 2804 of title 10, 
        United States Code, $10,000,000.
            (6) For architectural and engineering services and 
        construction design under section 2807 of title 10, 
        United States Code, $62,182,000.
            (7) For energy conservation projects authorized by 
        section 2403 of this Act, $50,000,000.
            (8) For base closure and realignment activities as 
        authorized by the Defense Base Closure and Realignment 
        Act of 1990 (part A of title XXIX of Public Law 101-
        510; 10 U.S.C. 2687 note), $246,116,000.
            (9) For military family housing functions:
                    (A) For improvement of military family 
                housing and facilities, $49,000.
                    (B) For support of military family housing 
                (including functions described in section 2833 
                of title 10, United States Code), $49,575,000.
                    (C) For credit to the Department of Defense 
                Family Housing Improvement Fund established by 
                section 2883(a)(1) of title 10, United States 
                Code, $2,500,000.
            (10) For the construction of phase 6 of an 
        ammunition demilitarization facility at Pueblo Depot 
        Activity, Colorado, authorized by section 2401(a) of 
        the Military Construction Authorization Act for Fiscal 
        Year 1997 (division B of Public Law 104-201; 110 Stat. 
        2775), as amended by section 2406 of the Military 
        Construction Authorization Act for Fiscal Year 2000 
        (division B of Public Law 106-65; 113 Stat. 839) and 
        section 2407 of the Military Construction Authorization 
        Act for Fiscal Year 2003 (division B of Public Law 107-
        314; 116 Stat. 2698), $44,792,000.
            (11) For the construction of phase 5 of an 
        ammunition demilitarization facility at Blue Grass Army 
        Depot, Kentucky, authorized by section 2401(a) of the 
        Military Construction Authorization Act for Fiscal Year 
        2000 (division B of Public Law 106-65; 113 Stat. 835), 
        as amended by section 2405 of the Military Construction 
        Authorization Act of 2002 (division B of Public Law 
        107-107; 115 Stat. 1298) and section 2405 of the 
        Military Construction Authorization Act for Fiscal Year 
        2003 (division B of Public Law 107-314; 116 Stat. 
        2698), $37,094,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 
of title 10, United States Code, and any other cost variation 
authorized by law, the total cost of all projects carried out 
under section 2401 of this Act may not exceed the sum of the 
following:
            (1) The total amount authorized to be appropriated 
        under paragraphs (1), (2) and (3) of subsection (a).
            (2) $57,000,000 (the balance of the amount 
        authorized under section 2401(a) for hospital 
        replacement, Fort Belvoir, Virginia).

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

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

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

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

SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

    Funds are hereby authorized to be appropriated for fiscal 
years beginning after September 30, 2004, for contributions by 
the Secretary of Defense under section 2806 of title 10, United 
States Code, for the share of the United States of the cost of 
projects for the North Atlantic Treaty Organization Security 
Investment program authorized by section 2501, in the amount of 
$160,800,000.

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

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

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

    Funds are hereby authorized to be appropriated for fiscal 
years beginning after September 30, 2004, for the costs of 
acquisition, architectural and engineering services, and 
construction of facilities for the Guard and Reserve Forces, 
and for contributions therefor, under chapter 1803 of title 10, 
United States Code (including the cost of acquisition of land 
for those facilities), the following amounts:
            (1) For the Department of the Army--
                    (A) for the Army National Guard of the 
                United States, $434,363,000; and
                    (B) for the Army Reserve, $90,310,000.
            (2) For the Department of the Navy, for the Naval 
        and Marine Corps Reserve, $48,185,000.
            (3) For the Department of the Air Force--
                    (A) for the Air National Guard of the 
                United States, $233,518,000; and
                    (B) for the Air Force Reserve, 
                $122,756,000.

        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

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

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

    (a) Expiration of Authorizations After Three Years.--Except 
as provided in subsection (b), all authorizations contained in 
titles XXI through XXVI for military construction projects, 
land acquisition, family housing projects and facilities, and 
contributions to the North Atlantic Treaty Organization 
Security Investment program (and authorizations of 
appropriations therefor) shall expire on the later of--
            (1) October 1, 2007; or
            (2) the date of the enactment of an Act authorizing 
        funds for military construction for fiscal year 2008.
    (b) Exception.--Subsection (a) shall not apply to 
authorizations for military construction projects, land 
acquisition, family housing projects and facilities, and 
contributions to the North Atlantic Treaty Organization 
Security Investment program (and authorizations of 
appropriations therefor), for which appropriated funds have 
been obligated before the later of--
            (1) October 1, 2007; or
            (2) the date of the enactment of an Act authorizing 
        funds for fiscal year 2008 for military construction 
        projects, land acquisition, family housing projects and 
        facilities, or contributions to the North Atlantic 
        Treaty Organization Security Investment program.

SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 2002 
                    PROJECTS.

    (a) Extension.--Notwithstanding section 2701 of the 
Military Construction Authorization Act for Fiscal Year 2002 
(division B of Public Law 107-107; 115 Stat. 1301), 
authorizations set forth in the tables in subsection (b), as 
provided in section 2101, 2302, or 2601 of that Act, shall 
remain in effect until October 1, 2005, or the date of the 
enactment of an Act authorizing funds for military construction 
for fiscal year 2006, whichever is later.
    (b) Tables.--The tables referred to in subsection (a) are 
as follows:

                                 Army: Extension of 2002 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or Location             Project               Amount
----------------------------------------------------------------------------------------------------------------
Alaska..................................  Fort Wainwright...........  Power plant cooling tower.     $23,000,000
Hawaii..................................  Pohakuloa Training          Parker Ranch land               $1,500,000
                                           Facility.................   acquisition..............
----------------------------------------------------------------------------------------------------------------


                               Air Force: Extension of 2002 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or Location             Project               Amount
----------------------------------------------------------------------------------------------------------------
Colorado................................  Buckley Air Force Base....  Family housing (55 Units).     $11,400,000
Louisiana...............................  Barksdale Air Force Base..  Family housing (56 Units).      $7,300,000
----------------------------------------------------------------------------------------------------------------


                          Army National Guard: Extension of 2002 Project Authorization
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or Location             Project               Amount
----------------------------------------------------------------------------------------------------------------
California..............................  Lancaster.................  Readiness Center..........      $4,530,000
----------------------------------------------------------------------------------------------------------------

SEC. 2703. EXTENSION AND RENEWAL OF AUTHORIZATIONS OF CERTAIN FISCAL 
                    YEAR 2001 PROJECTS.

    (a) Extension and Renewal.--Notwithstanding section 2701 of 
the Military Construction Authorization Act for Fiscal Year 
2001 (division B of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by 
Public Law 106-398; 114 Stat. 1654A-407)), authorizations set 
forth in the tables in subsection (b), as provided in section 
2102 or 2401 of that Act and, in the case of the authorization 
set forth in the first table in subsection (b), extended by 
section 2702 of the Military Construction Authorization Act for 
Fiscal Year 2004 (division B of Public Law 108-136; 117 Stat. 
1716), shall remain in effect until October 1, 2005, or the 
date of the enactment of an Act authorizing funds for military 
construction for fiscal year 2006, whichever is later.
    (b) Tables.--The tables referred to in subsection (a) are 
as follows:

                                  Army: Extension of 2001 Project Authorization
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or Location             Project               Amount
----------------------------------------------------------------------------------------------------------------
South Carolina..........................  Fort Jackson..............  Family housing (1 unit)...        $250,000
----------------------------------------------------------------------------------------------------------------


                             Defense Agencies: Renewal of 2001 Project Authorization
----------------------------------------------------------------------------------------------------------------
                 Agency                    Installation or Location             Project               Amount
----------------------------------------------------------------------------------------------------------------
Defense Education Activity..............  Osan Air Base, Korea......  Osan Elementary School            $843,000
                                                                       addition.................
----------------------------------------------------------------------------------------------------------------

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

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

         Subtitle B--Real Property and Facilities Administration

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

                Subtitle C--Base Closure and Realignment

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

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

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

                        Part II--Navy Conveyances

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

                     Part III--Air Force Conveyances

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

                       Part IV--Other Conveyances

Sec. 2881. Land exchange, Arlington County, Virginia.

                        Subtitle E--Other Matters

Sec. 2891. One-year resumption of Department of Defense Laboratory 
          Revitalization Demonstration Program.
Sec. 2892. Designation of Airmen Leadership School at Luke Air Force 
          Base, Arizona, in honor of John J. Rhodes, a former minority 
          leader of the House of Representatives.
Sec. 2893. Settlement of claim of Oakland Base Reuse Authority and 
          Redevelopment Agency.
Sec. 2894. Report on establishment of mobilization station at Camp 
          Ripley National Guard Training Center, Little Falls, 
          Minnesota.
Sec. 2895. Report on feasibility of establishment of veterans memorial 
          at Marine Corps Air Station, El Toro, California.
Sec. 2896. Sense of Congress regarding effect of military housing 
          policies and force structure and basing changes on local 
          educational agencies.
Sec. 2897. Sense of Congress and study regarding memorial honoring non-
          United States citizens killed in the line of duty while 
          serving in the United States Armed Forces.

 Subtitle A--Military Construction Program and Military Family Housing 
                                Changes

SEC. 2801. MODIFICATION OF APPROVAL AND NOTICE REQUIREMENTS FOR 
                    FACILITY REPAIR PROJECTS.

    (a) Increase in Threshold for Approval Requirement.--
Subsection (b) of section 2811 of title 10, United States Code, 
is amended by striking ``$5,000,000'' and inserting 
``$7,500,000''.
    (b) Decrease in Threshold for Congressional Notification.--
Subsection (d) of such section is amended by striking 
``$10,000,000'' and inserting ``$7,500,000''.
    (c) Information Required in Cost Estimate for Multi-Year 
Projects.--Subsection (d)(1) of such section is amended by 
inserting before the semicolon the following: ``, including, in 
the case of a multi-year repair project to a single facility, 
the total cost of all phases of the project''.

SEC. 2802. REPORTING REQUIREMENTS REGARDING MILITARY FAMILY HOUSING 
                    REQUIREMENTS FOR GENERAL OFFICERS AND FLAG 
                    OFFICERS.

    (a) Reports on Cost of General and Flag Officers 
Quarters.--Section 2831 of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(e) Reports on Cost of General Officers and Flag Officers 
Quarters.--(1) As part of the budget materials submitted to 
Congress in connection with the submission of the budget for a 
fiscal year pursuant to section 1105 of title 31, the Secretary 
of Defense shall submit a report--
            ``(A) identifying each family housing unit used, or 
        intended for use, as quarters for a general officer or 
        flag officer for which the total operation, 
        maintenance, and repair costs for the unit are 
        anticipated to exceed $35,000 in the next fiscal year; 
        and
            ``(B) for each family housing unit so identified, 
        specifying the total of such anticipated operation, 
        maintenance, and repair costs for the unit.
    ``(2) Not later than 120 days after the end of each fiscal 
year, the Secretary of Defense shall submit to the 
congressional defense committees a report specifying, for each 
family housing unit used as quarters for a general officer or 
flag officer at any time during that fiscal year, the total 
expenditures for operation and maintenance, utilities, lease, 
and repairs of the unit during that fiscal year.''.
    (b) Notice and Wait Requirement.--Such section is further 
amended by inserting after subsection (e), as added by 
subsection (a), the following new subsection:
    ``(f) Notice and Wait Requirement.--(1) Except as provided 
in paragraphs (2) and (3), the Secretary concerned may not 
carry out a maintenance or repair project for a family housing 
unit used, or intended for use, as quarters for a general 
officer or flag officer if the project will or may result in 
the total operation, maintenance, and repair costs for the unit 
for the fiscal year to exceed $35,000, until--
            ``(A) the Secretary concerned submits to the 
        congressional defense committees, in writing, a 
        justification of the need for the maintenance or repair 
        project and an estimate of the cost of the project; and
            ``(B) a period of 21 days has expired following the 
        date on which the justification and estimate are 
        received by the committees or, if over sooner, a period 
        of 14 days has expired following the date on which a 
        copy of the justification and estimate are provided in 
        an electronic medium pursuant to section 480 of this 
        title.
    ``(2) The project justification and cost estimate required 
by paragraph (1)(A) may be submitted after the commencement of 
a maintenance or repair project for a family housing unit used, 
or intended for use, as quarters for a general officer or flag 
officer if the project is a necessary enviromental remediation 
project for the unit or is necessary for occupant safety or 
security, and the need for the project arose after the 
submission of the most recent report under subsection (e).
    ``(3) Paragraph (1) shall not apply in the case of a family 
housing unit used, or intended for use, as quarters for a 
general officer or flag officer if the unit was identified in 
the most recent report submitted under subsection (e) and the 
cost of the maintenance or repair project was included in the 
total of anticipated operation, maintenance, and repair costs 
for the unit specified in the report.''.
    (c) Report on Need for General and Flag Officers Quarters 
in National Capital Region.--Not later than March 30, 2005, the 
Secretary of Defense shall submit to the congressional defense 
committees a report containing an analysis of anticipated needs 
in the National Capital Region for family housing units for 
general officers and flag officers. In conducting the analysis, 
the Secretary shall consider the extent of available housing in 
the National Capital Region and the necessity of providing 
housing for general officers and flag officers in secure 
locations.
    (d) Report on Current World-Wide Inventory of General and 
Flag Officers Quarters.--Not later than March 30, 2005, the 
Secretary of Defense shall submit to the congressional defense 
committees a report--
            (1) containing a worldwide inventory of family 
        housing units used, or intended for use, for general 
        officers and flag officers; and
            (2) identifying annual expenditures for fiscal 
        years 2002, 2003, and 2004 for operation and 
        maintenance, utilities, leases, and repairs of each 
        unit.
    (e) Definitions.--In this section:
            (1) The terms ``general officer'' and ``flag 
        officer'' have the meanings given such terms in section 
        101(b) of title 10, United States Code.
            (2) The term ``National Capital Region'' has the 
        meaning given such term in section 2674(f) of such 
        title.

SEC. 2803. CONGRESSIONAL NOTIFICATION OF DEVIATIONS FROM AUTHORIZED 
                    COST VARIATIONS FOR MILITARY CONSTRUCTION PROJECTS 
                    AND MILITARY FAMILY HOUSING PROJECTS.

    Section 2853(c)(3) of title 10, United States Code, is 
amended by inserting before the period at the end the 
following: ``or, if over sooner, a period of 14 days has 
elapsed after the date on which a copy of the notification is 
provided in an electronic medium pursuant to section 480 of 
this title''.

SEC. 2804. ASSESSMENT OF VULNERABILITY OF MILITARY INSTALLATIONS TO 
                    TERRORIST ATTACK AND ANNUAL REPORT ON MILITARY 
                    CONSTRUCTION REQUIREMENTS RELATED TO ANTITERRORISM 
                    AND FORCE PROTECTION.

    (a) Annual Assessment and Report.--(1) Chapter 169 of title 
10, United States Code, is amended by inserting after section 
2858 the following new section:

``Sec. 2859. Construction requirements related to antiterrorism and 
                    force protection

    ``(a) Antiterrorism and Force Protection Guidance and 
Criteria.--The Secretary of Defense shall develop common 
guidance and criteria to be used by each Secretary concerned--
            ``(1) to assess the vulnerability of military 
        installations located inside and outside of the United 
        States to terrorist attack;
            ``(2) to develop construction standards designed to 
        reduce the vulnerability of structures to terrorist 
        attack and improve the security of the occupants of 
        such structures;
            ``(3) to prepare and carry out military 
        construction projects, such as gate and fenceline 
        construction, to improve the physical security of 
        military installations; and
            ``(4) to assist in prioritizing such projects 
        within the military construction budget of each of the 
        armed forces.
    ``(b) Vulnerability Assessments.--The Secretary of Defense 
shall require vulnerability assessments of military 
installations to be conducted, at regular intervals, using the 
criteria developed under subsection (a).
    ``(c) Military Construction Requirements.--As part of the 
budget materials submitted to Congress in connection with the 
submission of the budget for a fiscal year pursuant to section 
1105 of title 31, but in no case later than March 15 of each 
year, the Secretary of Defense shall submit a report, in both 
classified and unclassified form, describing--
            ``(1) the location and results of the vulnerability 
        assessments conducted under subsection (b) during the 
        most recently completed fiscal year;
            ``(2) the military construction requirements 
        anticipated to be necessary during the period covered 
        by the then-current future-years defense plan under 
        section 221 of this title to improve the physical 
        security of military installations; and
            ``(3) the extent to which funds to meet those 
        requirements are not requested in the Department of 
        Defense budget for the fiscal year for which the budget 
        is submitted.''.
    (2) The table of sections at the beginning of subchapter 
III of chapter 169 of such title is amended by inserting after 
the item relating to section 2858 the following new item:

``2859. Construction requirements related to antiterrorism and force 
          protection.''.

    (b) Special Requirement for 2006 Report.--In the case of 
the report required to be submitted in 2006 under section 
2859(c) of title 10, United States Code, as added by subsection 
(a), the Secretary of Defense shall include a certification by 
the Secretary that since September 11, 2001, assessments 
regarding the vulnerability of military installations to 
terrorist attack have been undertaken for all major military 
installations. The Secretary shall indicate the basis by which 
the Secretary differentiated between major and nonmajor 
military installations for purposes of making the 
certification.

SEC. 2805. REPEAL OF LIMITATIONS ON USE OF ALTERNATIVE AUTHORITY FOR 
                    ACQUISITION AND IMPROVEMENT OF MILITARY HOUSING.

    (a) Repeal of Budget Authority Limitation on Use of 
Authority.--Section 2883 of title 10, United States Code, is 
amended by striking subsection (g).
    (b) Repeal of Termination Date on Use of Authority.--(1) 
Section 2885 of such title is repealed.
    (2) The table of sections at the beginning of subchapter IV 
of chapter 169 of such title is amended by striking the item 
relating to section 2885.

SEC. 2806. ADDITIONAL REPORTING REQUIREMENTS RELATING TO ALTERNATIVE 
                    AUTHORITY FOR ACQUISITION AND IMPROVEMENT OF 
                    MILITARY HOUSING.

    (a) Project Reports.--Paragraph (2) of subsection (a) of 
section 2884 of title 10, United States Code, is amended to 
read as follows:
    ``(2) For each proposed contract, conveyance, or lease 
described in paragraph (1), the report required by such 
paragraph shall include the following:
            ``(A) A description of the contract, conveyance, or 
        lease, including a summary of the terms of the 
        contract, conveyance, or lease.
            ``(B) A description of the authorities to be 
        utilized in entering into the contract, conveyance, or 
        lease and the intended method of participation of the 
        United States in the contract, conveyance, or lease, 
        including a justification of the intended method of 
        participation.
            ``(C) A statement of the scored cost of the 
        contract, conveyance, or lease, as determined by the 
        Office of Management and Budget.
            ``(D) A statement of the United States funds 
        required for the contract, conveyance, or lease and a 
        description of the source of such funds.
            ``(E) An economic assessment of the life cycle 
        costs of the contract, conveyance, or lease, including 
        an estimate of the amount of United States funds that 
        would be paid over the life of the contract, 
        conveyance, or lease from amounts derived from payments 
        of government allowances, including the basic allowance 
        for housing under section 403 of title 37, if the 
        housing affected by the project were fully occupied by 
        military personnel over the life of the contract, 
        conveyance, or lease.''.
    (b) Annual Reports.--Subsection (b) of such section is 
amended--
            (1) by redesignating paragraph (5) as paragraph 
        (6); and
            (2) by inserting after paragraph (4) the following 
        new paragraph (5):
            ``(5) A report setting forth, by armed force--
                    ``(A) an estimate of the amounts of basic 
                allowance for housing under section 403 of 
                title 37 that will be paid, during the current 
                fiscal year and the fiscal year for which the 
                budget is submitted, to members of the armed 
                forces living in housing provided under the 
                authorities in this subchapter; and
                    ``(B) the number of units of military 
                family housing and military unaccompanied 
                housing upon which the estimate under 
                subparagraph (A) for the current fiscal year 
                and the next fiscal year is based.''.

SEC. 2807. TEMPORARY AUTHORITY TO ACCELERATE DESIGN EFFORTS FOR 
                    MILITARY CONSTRUCTION PROJECTS CARRIED OUT USING 
                    DESIGN-BUILD SELECTION PROCEDURES.

    Section 2305a of title 10, United States Code, is amended 
by adding at the end the following new subsection:
    ``(f) Special Authority for Military Construction 
Projects.--(1) The Secretary of a military department may use 
funds available to the Secretary under section 2807(a) or 
18233(e) of this title to accelerate the design effort in 
connection with a military construction project for which the 
two-phase selection procedures described in subsection (c) are 
used to select the contractor for both the design and 
construction portion of the project before the project is 
specifically authorized by law and before funds are 
appropriated for the construction portion of the project. 
Notwithstanding the limitations contained in such sections, use 
of such funds for the design portion of a military construction 
project may continue despite the subsequent authorization of 
the project. The advance notice requirement of section 2807(b) 
of this title shall continue to apply whenever the estimated 
cost of the design portion of the project exceeds the amount 
specified in such section.
    ``(2) Any military construction contract that provides for 
an accelerated design effort, as authorized by paragraph (1), 
shall include as a condition of the contract that the liability 
of the United States in a termination for convenience may not 
exceed the actual costs incurred as of the termination date.
    ``(3) For each fiscal year during which the authority 
provided by this subsection is in effect, the Secretary of a 
military department may select not more than two military 
construction projects to include the accelerated design effort 
authorized by paragraph (1) for each armed force under the 
jurisdiction of the Secretary. To be eligible for selection 
under this subsection, a request for the authorization of the 
project, and for the authorization of appropriations for the 
project, must have been included in the annual budget of the 
President for a fiscal year submitted to Congress under section 
1105(a) of title 31.
    ``(4) Not later than March 1, 2007, the Secretary of 
Defense shall submit to the congressional defense committees a 
report evaluating the usefulness of the authority provided by 
this subsection in expediting the design and construction of 
military construction projects. The authority provided by this 
subsection expires September 30, 2007, except that, if the 
report required by this paragraph is not submitted by March 1, 
2007, the authority shall expire on that date.''.

SEC. 2808. NOTIFICATION THRESHOLDS AND REQUIREMENTS FOR EXPENDITURES OR 
                    CONTRIBUTIONS FOR ACQUISITION OF FACILITIES FOR 
                    RESERVE COMPONENTS.

    (a) Authority To Carry Out Small Projects.--Section 18233a 
of title 10, United States Code, is amended to read as follows:

``Sec. 18233a. Notice and wait requirements for certain projects

    ``(a) Congressional Notification.--Except as provided in 
subsection (b), an expenditure or contribution in an amount in 
excess of $750,000 may not be made under section 18233 of this 
title for any facility until--
            ``(1) the Secretary of Defense has notified the 
        congressional defense committees of the location, 
        nature, and estimated cost of the facility; and
            ``(2) a period of 21 days has elapsed after the 
        notification has been received by those committees or, 
        if over sooner, a period of 14 days has elapsed after 
        the date on which a copy of the notification is 
        provided in an electronic medium pursuant to section 
        480 of this title.
    ``(b) Certain Expenditures or Contributions Exempted.--
Subsection (a) does not apply to expenditures or contributions 
for the following:
            ``(1) Facilities acquired by lease.
            ``(2) A project for a facility that has been 
        authorized by Congress, if the location and purpose of 
        the facility are the same as when authorized and if, 
        based upon bids received--
                    ``(A) the scope of work of the project, as 
                approved by Congress, is not proposed to be 
                reduced by more than 25 percent; and
                    ``(B) the current working estimate of the 
                cost of the project does not exceed the amount 
                approved for the project by more than the 
                lesser of the following:
                            ``(i) 25 percent.
                            ``(ii) 200 percent of the amount 
                        specified by section 2805(a)(2) of this 
                        title as the maximum amount for a minor 
                        military construction project.
            ``(3) A repair project (as that term is defined in 
        section 2811(e) of this title) that costs less than 
        $7,500,000.''.
    (b) Recodification of Limited Authority to Use Operation 
and Maintenance Funds.--Chapter 1803 of such title is amended 
by inserting after section 18233a the following new section:

``Sec. 18233b. Authority to carry out small projects with operation and 
                    maintenance funds

    ``Under such regulations as the Secretary of Defense may 
prescribe, the Secretary may expend, from appropriations 
available for operation and maintenance, amounts necessary to 
carry out any project authorized under section 18233(a) of this 
title that costs not more than--
            ``(1) the amount specified in section 2805(c)(1)(A) 
        of this title, in the case of a project intended solely 
        to correct a deficiency that is life-threatening, 
        health-threatening, or safety-threatening; or
            ``(2) the amount specified in section 2805(c)(1)(B) 
        of this title, in the case of any other project.''.
    (c) Clerical Amendment.--The table of sections at the 
beginning of chapter 1803 of such title is amended by striking 
the item relating to section 18233a and inserting the following 
new items:

``18233a. Notice and wait requirements for certain projects.
``18233b. Authority to carry out small projects with operation and 
          maintenance funds.''.

SEC. 2809. AUTHORITY TO EXCHANGE RESERVE COMPONENT FACILITIES TO 
                    ACQUIRE REPLACEMENT FACILITIES.

    (a) Exchange Authority.--(1) Chapter 1803 of title 10, 
United States Code, is amended by adding at the end the 
following new section:

``Sec. 18240. Acquisition of facilities by exchange

    ``(a) Exchange Authority.--In addition to the acquisition 
authority provided by section 18233 of this title, the 
Secretary of Defense may authorize the Secretary of a military 
department to acquire a facility, or addition to an existing 
facility, needed to satisfy military requirements for a reserve 
component by carrying out an exchange of an existing facility 
under the control of that Secretary through an agreement with a 
State, local government, local authority, or private entity.
    ``(b) Facilities Eligible for Exchange.--Only a facility of 
a reserve component that is not excess property (as defined in 
section 102(3) of title 40) may be exchanged using the 
authority provided by this section.
    ``(c) Equal Value Exchange.--In any exchange carried out 
using the authority provided by this section, the value of the 
replacement facility, or addition to an existing facility, 
acquired by the United States shall be at least equal to the 
fair market value of the facility conveyed by the United States 
under the agreement. If the values are unequal, the values may 
not be equalized by any payment of cash consideration by either 
party to the agreement.
    ``(d) Requirements for Replacement Facilities.--The 
Secretary of a military department may not accept a replacement 
facility, or addition to an existing facility, to be acquired 
by the United States in an exchange carried out using the 
authority provided by this section until that Secretary 
determines that the facility or addition--
            ``(1) is complete and usable, fully functional, and 
        ready for occupancy;
            ``(2) satisfies all operational requirements; and
            ``(3) meets all applicable Federal, State, and 
        local requirements relating to health, safety, fire, 
        and the environment.
    ``(e) Consultation Requirements.--The Secretary of a 
military department authorized to enter into an agreement under 
subsection (a) to convey an existing facility under the control 
of that Secretary by exchange shall consult with 
representatives of other reserve components to evaluate--
            ``(1) the value of using the facility to meet the 
        military requirements of another reserve component, 
        instead of conveying the facility under this section; 
        and
            ``(2) the feasibility of using the conveyance of 
        the facility to acquire a facility, or an addition to 
        an existing facility, that would be jointly used by 
        more than one reserve component or unit.
    ``(f) Advance Notice of Proposed Exchange.--(1) When a 
decision is made to enter into an agreement under subsection 
(a) to exchange a facility using the authority provided by this 
section, the Secretary of the military department authorized to 
enter into the agreement shall submit to the congressional 
defense committees a report on the proposed agreement. The 
report shall include the following:
            ``(A) A description of the agreement, including the 
        terms and conditions of the agreement, the parties to 
        be involved in the agreement, the origin of the 
        proposal that lead to the agreement, the intended use 
        of the facility to be conveyed by the United States 
        under the agreement, and any costs to be incurred by 
        the United States to make the exchange under the 
        agreement.
            ``(B) A description of the facility to be conveyed 
        by the United States under the agreement, including the 
        current condition and fair market value of the 
        facility, and a description of the method by which the 
        fair market value of the facility was determined.
            ``(C) Information on the facility, or addition to 
        an existing facility, to be acquired by the United 
        States under the agreement and the intended use of the 
        facility or addition, which shall meet requirements for 
        information provided to Congress for military 
        construction projects to obtain a similar facility or 
        addition to an existing facility.
            ``(D) A certification that the Secretary complied 
        with the consultation requirements under subsection 
        (e).
            ``(E) A certification that the conveyance of the 
        facility under the agreement is in the best interests 
        of the United States and that the Secretary used 
        competitive procedures to the maximum extent 
        practicable to protect the interests of the United 
        States.
    ``(2) The agreement described in a report prepared under 
paragraph (1) may be entered into, and the exchange covered by 
the agreement made, only after the end of the 30-day period 
beginning on the date the report is received by the 
congressional defense committees or, if earlier, the end of the 
21-day period beginning on the date on which a copy of the 
report is provided in an electronic medium pursuant to section 
480 of this title.
    ``(3) Section 2662 of this title shall not apply to an 
exchange carried out using the authority provided by this 
section.
    ``(g) Relation to Other Military Construction 
Requirements.--The acquisition of a facility, or an addition to 
an existing facility, using the authority provided by this 
section shall not be treated as a military construction project 
for which an authorization is required by section 2802 of this 
title.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``18240. Acquisition of facilities by exchange.''.

    (b) Conforming Amendment.--Section 18233(f)(2) of such 
title is amended by striking ``gift, exchange of Government-
owned land, or otherwise'' and inserting ``or gift''.
    (c) Temporary Authority to Include Cash Equalization 
Payments in Exchange.--(1) Notwithstanding subsection (c) of 
section 18240 of title 10, United States Code, as added by 
subsection (a), the Secretary of Defense may authorize the 
Secretary of a military department, as part of an exchange 
agreement under such section, to make or accept a cash 
equalization payment if the value of the facility, or addition 
to an existing facility, to be acquired by the United States 
under the agreement is not equal to the fair market value of 
the facility to be conveyed by the United States under the 
agreement. All other requirements of such section shall 
continue to apply to the exchange.
    (2) Cash equalization payments received by the Secretary of 
a military department under this subsection shall be deposited 
in a separate account in the Treasury. Amounts in the account 
shall be available to the Secretary of Defense, without further 
appropriation and until expended, for transfer to the Secretary 
of a military department--
            (A) to make any cash equalization payments required 
        to be made by the United States in connection with an 
        exchange agreement covered by this subsection, and the 
        account shall be the only source for such payments; and
            (B) to cover costs associated with the maintenance, 
        protection, alteration, repair, improvement, or 
        restoration (including environmental restoration) of 
        facilities, and additions to existing facilities, 
        acquired using an exchange agreement covered by this 
        subsection.
    (3) Not more than 15 exchange agreements under section 
18240 of title 10, United States Code, may include the 
exception for cash equalization payments authorized by this 
subsection. Of those 15 exchange agreements, not more than 
eight may be for the same reserve component.
    (4) In this section, the term ``facility'' has the meaning 
given that term in section 18232(2) of title 10, United States 
Code.
    (5) No cash equalization payment may be made or accepted 
under the authority of this subsection after September 30, 
2007. Except as otherwise specifically authorized by law, the 
authority provided by this subsection to make or accept cash 
equalization payments in connection with the acquisition or 
disposal of facilities of the reserve components is the sole 
authority available in law to the Secretary of Defense or the 
Secretary of a military department for that purpose.
    (6) Not later than March 1, 2008, the Secretary of Defense 
shall submit to the congressional defense committees a report 
on the exercise of the authority provided by this subsection. 
The report shall include the following:
            (A) A description of the exchange agreements under 
        section 18240 of title 10, United States Code, that 
        included the authority to make or accept cash 
        equalization payments.
            (B) A description of the analysis and criteria used 
        to select such agreements for inclusion of the 
        authority to make or accept cash equalization payments.
            (C) An assessment of the utility to the Department 
        of Defense of the authority, including recommendations 
        for modifications of such authority in order to enhance 
        the utility of such authority for the Department.
            (D) An assessment of interest in the future use of 
        the authority, in the event the authority is extended.
            (E) An assessment of the advisability of making the 
        authority, including any modifications of the authority 
        recommended under subparagraph (C), permanent.

SEC. 2810. ONE-YEAR EXTENSION OF TEMPORARY, LIMITED AUTHORITY TO USE 
                    OPERATION AND MAINTENANCE FUNDS FOR CONSTRUCTION 
                    PROJECTS OUTSIDE THE UNITED STATES.

    Section 2808 of the Military Construction Authorization Act 
for Fiscal Year 2004 (division B of Public Law 108-136; 117 
Stat. 1723) is amended--
            (1) in subsection (a), by inserting ``and, subject 
        to subsection (d)(2), fiscal year 2005'' after ``During 
        fiscal year 2004'';
            (2) in subsection (c)(1), by striking ``in fiscal 
        year 2004'' and inserting ``in a fiscal year''; and
            (3) in subsection (d)--
                    (A) by inserting ``(1)'' before ``Not later 
                than'';
                    (B) by striking ``fiscal year 2004,'' and 
                inserting ``fiscal years 2004 and 2005,''; and
                    (C) by adding at the end the following new 
                paragraph:
    ``(2) The ability to use this section as authority during 
fiscal year 2005 to obligate appropriated funds available for 
operation and maintenance to carry out construction projects 
outside the United States shall commence only after the date on 
which the Secretary of Defense submits to the congressional 
committees specified in subsection (f) all of the quarterly 
reports that were required under paragraph (1) for fiscal year 
2004.''.

SEC. 2811. CONSIDERATION OF COMBINATION OF MILITARY MEDICAL TREATMENT 
                    FACILITIES AND HEALTH CARE FACILITIES OF DEPARTMENT 
                    OF VETERANS AFFAIRS.

    (a) Department of Defense Consideration of Joint 
Construction.--When considering any military construction 
project for the construction of a new military medical 
treatment facility in the United States or a territory or 
possession of the United States, the Secretary of Defense shall 
consult with the Secretary of Veterans Affairs regarding the 
feasibility of carrying out a joint project to construct a 
medical facility that--
            (1) could serve as a facility for health-resources 
        sharing between the Department of Defense and the 
        Department of Veterans Affairs; and
            (2) would be no more costly to each Department to 
        construct and operate than separate facilities for each 
        Department.
    (b) Department of Veterans Affairs Consideration of Joint 
Construction.--When considering the construction of a new or 
replacement medical facility for the Department of Veterans 
Affairs, the Secretary of Veterans Affairs shall consult with 
the Secretary of Defense regarding the feasibility of carrying 
out a joint project to construct a medical facility that--
            (1) could serve as a facility for health-resources 
        sharing between the Department of Veterans Affairs and 
        the Department of Defense; and
            (2) would be no more costly to each Department to 
        construct and operate than separate facilities for each 
        Department.

        Subtitle B--Real Property and Facilities Administration

SEC. 2821. REORGANIZATION OF EXISTING ADMINISTRATIVE PROVISIONS 
                    RELATING TO REAL PROPERTY TRANSACTIONS.

    (a) Limitation on Commissions.--(1) Section 2661 of title 
10, United States Code, is amended by adding at the end the 
following new subsection:
    ``(c) Commissions on Land Purchase Contracts.--The maximum 
amount payable as a commission on a contract for the purchase 
of land from funds appropriated for the Department of Defense 
is two percent of the purchase price.''.
    (2) Section 2666 of such title is repealed.
    (b) Repeal of Obsolete Authority to Acquire Land for Timber 
Production.--Section 2664 of such title is repealed.
    (c) Consolidation of Certain Provisions on Use of 
Facilities.--(1) Section 2670 of such title is amended by 
adding at the end the following new subsection:
    ``(c) Use of Space and Equipment by Veterans Service 
Organizations.--(1) Upon certification to the Secretary 
concerned by the Secretary of Veterans Affairs, the Secretary 
concerned shall allow accredited, paid, full-time 
representatives of the organizations named in section 5902 of 
title 38, or of other organizations recognized by the Secretary 
of Veterans Affairs, to function on military installations 
under the jurisdiction of the Secretary concerned that are on 
land and from which persons are discharged or released from 
active duty.
    ``(2) The commanding officer of a military installation 
allowing representatives to function on the installation under 
paragraph (1) shall allow the representatives to use available 
space and equipment at the installation.
    ``(3) This subsection does not authorize the violation of 
measures of military security.''.
    (2) Section 2679 of such title is repealed.
    (3) The regulations prescribed to carry out section 2679 of 
title 10, United States Code, as in effect on the day before 
the date of the enactment of this Act, shall remain in effect 
with regard to section 2670(c) of such title, as added by 
paragraph (1), until changed by joint action of the Secretary 
concerned (as defined in section 101(9) of such title) and the 
Secretary of Veterans Affairs.
    (d) Availability of Funds for Acquisition of Certain 
Interests in Real Property.--(1) Section 2672 of such title is 
amended by adding at the end the following new subsection:
    ``(d) Availability of Funds.--Appropriations available to 
the Department of Defense for operation and maintenance or 
construction may be used for the acquisition of land or 
interests in land under this section.''.
    (2) Section 2673 of such title is repealed.
    (3) Section 2675 of such title is amended--
            (A) by inserting ``(a) Lease Authority; Duration.--
        '' before ``The Secretary''; and
            (B) by adding at the end the following new 
        subsection:
    ``(b) Availability of Funds.--Appropriations available to 
the Department of Defense for operation and maintenance or 
construction may be used for the acquisition of interests in 
land under this section.''.
    (e) Stylistic and Clerical Amendments.--(1) Section 2661 of 
such title is further amended--
            (A) in subsection (a), by inserting ``Availability 
        of Operation and Maintenance Funds.--'' after ``(a)'' ; 
        and
            (B) in subsection (b), by inserting ``Leasing and 
        Road Maintenance Authority.--'' after ``(b)''.
    (2) The heading of section 2670 of such title is amended to 
read as follows:

``Sec. 2670. Use of facilities by private organizations; use as polling 
                    places''.

    (3) The table of sections at the beginning of chapter 159 
of such title is amended--
            (A) by striking the items relating to sections 
        2664, 2666, 2673, and 2679; and
            (B) by striking the item relating to section 2670 
        and inserting the following new item:

``2670. Use of facilities by private organizations; use as polling 
          places.''.

SEC. 2822. DEVELOPMENT OF HERITAGE CENTER FOR THE NATIONAL MUSEUM OF 
                    THE UNITED STATES ARMY.

    (a) Authority to Enter into Agreement for Development of 
Center.--Chapter 449 of title 10, United States Code, is 
amended by inserting after section 4771 the following new 
section:

``Sec. 4772. Heritage Center for the National Museum of the United 
                    States Army: development and operation

    ``(a) Agreement for Development of Center.--The Secretary 
of the Army may enter into an agreement with the Army 
Historical Foundation, a nonprofit organization, for the 
design, construction, and operation of a facility or group of 
facilities at Fort Belvoir, Virginia, for the National Museum 
of the United States Army. The facility or group of facilities 
constructed pursuant to the agreement shall be known as the 
Heritage Center for the National Museum of the United States 
Army (in this section referred to as the `Center').
    ``(b) Purpose of Center.--The Center shall be used for the 
identification, curation, storage, and public viewing of 
artifacts and artwork of significance to the United States 
Army, as agreed to by the Secretary of the Army. The Center may 
also be used to support such education, training, research, and 
associated purposes as the Secretary considers appropriate.
    ``(c) Design and Construction.--(1) The design of the 
Center shall be subject to the approval of the Secretary of the 
Army.
    ``(2) For each phase of the development of the Center, the 
Secretary may--
            ``(A) accept funds from the Army Historical 
        Foundation for the design and construction of such 
        phase of the Center; or
            ``(B) permit the Army Historical Foundation to 
        contract for the design and construction of such phase 
        of the Center.
    ``(d) Acceptance by Secretary.--Upon the satisfactory 
completion, as determined by the Secretary of the Army, of any 
phase of the Center, and upon the satisfaction of any financial 
obligations incident to such phase of the Center by the Army 
Historical Foundation, the Secretary shall accept such phase of 
the Center from the Army Historical Foundation, and all right, 
title, and interest in and to such phase of the Center shall 
vest in the United States. Upon becoming the property of the 
United States, the Secretary shall assume administrative 
jurisdiction over the Center.
    ``(e) Use of Certain Gifts.--(1) Under regulations 
prescribed by the Secretary of the Army, the Commander of the 
United States Army Center of Military History may, without 
regard to section 2601 of this title, accept, hold, administer, 
invest, and spend any gift, devise, or bequest of personal 
property of a value of $250,000 or less made to the United 
States if such gift, devise, or bequest is for the benefit of 
the National Museum of the United States Army or the Center.
    ``(2) The Secretary may pay or authorize the payment of any 
reasonable and necessary expense in connection with the 
conveyance or transfer of a gift, devise, or bequest under this 
subsection.
    ``(f) Lease of Facility.--(1) Under such terms and 
conditions as the Secretary of the Army considers appropriate, 
the Secretary may lease portions of the Center to the Army 
Historical Foundation to be used by the Foundation, consistent 
with the purpose of the Center, for--
            ``(A) generating revenue for activities of the 
        Center through rental use by the public, commercial and 
        nonprofit entities, State and local governments, and 
        other Federal agencies; and
            ``(B) such administrative purposes as may be 
        necessary for the support of the Center.
    ``(2) The annual amount of consideration paid to the 
Secretary by the Army Historical Foundation for a lease under 
paragraph (1) may not exceed an amount equal to the actual 
cost, as determined by the Secretary, of the annual operations 
and maintenance of the Center.
    ``(3) Notwithstanding any other provision of law, the 
Secretary shall use amounts paid under paragraph (2) to cover 
the costs of operation of the Center.
    ``(g) Additional Terms and Conditions.--The Secretary of 
the Army may require such additional terms and conditions in 
connection with the agreement authorized by subsection (a) as 
the Secretary considers appropriate to protect the interests of 
the United States.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 4771 the following new item:

``4772. Heritage Center for the National Museum of the United States 
          Army: development and operation.''.

SEC. 2823. ELIMINATION OF REVERSIONARY INTERESTS CLOUDING UNITED STATES 
                    TITLE TO PROPERTY USED AS NAVY HOMEPORTS.

    (a) Authority to Acquire Complete Title.--If real property 
owned by the United States and used as a Navy homeport is 
subject to a reversionary interest of any kind, the Secretary 
of the Navy may enter into an agreement with the holder of the 
reversionary interest to acquire the reversionary interest and 
thereby secure for the United States all right, title, and 
interest in and to the property.
    (b) Authorized Consideration.--(1) As consideration for the 
acquisition of a reversionary interest under subsection (a), 
the Secretary shall provide the holder of the reversionary 
interest with in-kind consideration, to be determined pursuant 
to negotiations between the Secretary and the holder of the 
reversionary interest.
    (2) In determining the type and value of any in-kind 
consideration to be provided for the acquisition of a 
reversionary interest under subsection (a), the Secretary shall 
take into account the nature of the reversionary interest, 
including whether it would require the holder of the 
reversionary interest to pay for any improvements acquired by 
the holder as part of the reversion of the real property, and 
the long-term use and ultimate disposition of the real property 
if the United States were to acquire all right, title, and 
interest in and to the real property subject to the 
reversionary interest.
    (c) Prohibited Consideration.--Cash payments are not 
authorized to be made as consideration for the acquisition of a 
reversionary interest under subsection (a).

                Subtitle C--Base Closure and Realignment

SEC. 2831. ESTABLISHMENT OF SPECIFIC DEADLINE FOR SUBMISSION OF 
                    REVISIONS TO FORCE-STRUCTURE PLAN AND 
                    INFRASTRUCTURE INVENTORY.

    Section 2912(a)(4) of the Defense Base Closure and 
Realignment Act of 1990 (part A of title XXIX of Public Law 
101-510; 10 U.S.C. 2687 note) is amended by striking ``as part 
of the budget justification documents submitted to Congress for 
fiscal year 2006.'' and inserting the following: ``not later 
than March 15, 2005. For purposes of selecting military 
installations for closure or realignment under this part in 
2005, no revision of the force-structure plan or infrastructure 
inventory is authorized after that date.''.

SEC. 2832. SPECIFICATION OF FINAL SELECTION CRITERIA FOR 2005 BASE 
                    CLOSURE ROUND.

    Section 2913 of the Defense Base Closure and Realignment 
Act of 1990 (part A of title XXIX of Public Law 101-510; 10 
U.S.C. 2687 note) is amended to read as follows:

``SEC. 2913. FINAL SELECTION CRITERIA FOR ADDITIONAL ROUND OF BASE 
                    CLOSURES AND REALIGNMENTS.

    ``(a) Final Selection Criteria.--The final criteria to be 
used by the Secretary in making recommendations for the closure 
or realignment of military installations inside the United 
States under this part in 2005 shall be the military value and 
other criteria specified in subsections (b) and (c).
    ``(b) Military Value Criteria.--The military value criteria 
are as follows:
            ``(1) The current and future mission capabilities 
        and the impact on operational readiness of the total 
        force of the Department of Defense, including the 
        impact on joint warfighting, training, and readiness.
            ``(2) The availability and condition of land, 
        facilities, and associated airspace (including training 
        areas suitable for maneuver by ground, naval, or air 
        forces throughout a diversity of climate and terrain 
        areas and staging areas for the use of the Armed Forces 
        in homeland defense missions) at both existing and 
        potential receiving locations.
            ``(3) The ability to accommodate contingency, 
        mobilization, surge, and future total force 
        requirements at both existing and potential receiving 
        locations to support operations and training.
            ``(4) The cost of operations and the manpower 
        implications.
    ``(c) Other Criteria.--The other criteria that the 
Secretary shall use in making recommendations for the closure 
or realignment of military installations inside the United 
States under this part in 2005 are as follows:
            ``(1) The extent and timing of potential costs and 
        savings, including the number of years, beginning with 
        the date of completion of the closure or realignment, 
        for the savings to exceed the costs.
            ``(2) The economic impact on existing communities 
        in the vicinity of military installations.
            ``(3) The ability of the infrastructure of both the 
        existing and potential receiving communities to support 
        forces, missions, and personnel.
            ``(4) The environmental impact, including the 
        impact of costs related to potential environmental 
        restoration, waste management, and environmental 
        compliance activities.
    ``(d) Priority Given to Military Value.--The Secretary 
shall give priority consideration to the military value 
criteria specified in subsection (b) in the making of 
recommendations for the closure or realignment of military 
installations.
    ``(e) Effect on Department and Other Agency Costs.--The 
selection criteria relating to the cost savings or return on 
investment from the proposed closure or realignment of military 
installations shall take into account the effect of the 
proposed closure or realignment on the costs of any other 
activity of the Department of Defense or any other Federal 
agency that may be required to assume responsibility for 
activities at the military installations.
    ``(f) Relation to Other Materials.--The final selection 
criteria specified in this section shall be the only criteria 
to be used, along with the force-structure plan and 
infrastructure inventory referred to in section 2912, in making 
recommendations for the closure or realignment of military 
installations inside the United States under this part in 2005.
    ``(g) Relation to Criteria for Earlier Rounds.--Section 
2903(b), and the selection criteria prepared under such 
section, shall not apply with respect to the process of making 
recommendations for the closure or realignment of military 
installations in 2005.''.
    (c) Conforming Amendments.--The Defense Base Closure and 
Realignment Act of 1990 is amended--
            (1) in section 2912(c)(1)(A), by striking 
        ``criteria prepared under section 2913'' and inserting 
        ``criteria specified in section 2913''; and
            (2) in section 2914(a), by striking ``criteria 
        prepared by the Secretary under section 2913'' and 
        inserting ``criteria specified in section 2913''.

SEC. 2833. REPEAL OF AUTHORITY OF SECRETARY OF DEFENSE TO RECOMMEND 
                    THAT INSTALLATIONS BE PLACED IN INACTIVE STATUS.

    Section 2914 of the Defense Base Closure and Realignment 
Act of 1990 (part A of title XXIX of Public Law 101-510; 10 
U.S.C. 2687 note) is amended by striking subsection (c).

SEC. 2834. VOTING REQUIREMENTS FOR DEFENSE BASE CLOSURE AND REALIGNMENT 
                    COMMISSION TO ADD TO OR OTHERWISE EXPAND CLOSURE 
                    AND REALIGNMENT RECOMMENDATIONS MADE BY SECRETARY 
                    OF DEFENSE.

    Subsection (d) of section 2914 of the Defense Base Closure 
and Realignment Act of 1990 (part A of title XXIX of Public Law 
101-510; 10 U.S.C. 2687 note), as added by section 3003 of the 
Military Construction Authorization Act for Fiscal Year 2002 
(division B of Public Law 107-107; 115 Stat, 1346) and amended 
by section 2854 of the Military Construction Authorization Act 
for Fiscal Year 2003 (division B of Public Law 107-314; 116 
Stat. 2728), is amended--
            (1) in paragraph (3), by striking ``to add'' and 
        inserting ``to consider additions''; and
            (2) by striking paragraph (5) and inserting the 
        following new paragraph:
            ``(5) Requirements to expand closure or realignment 
        recommendations.--In the report required under section 
        2903(d)(2)(A) that is to be transmitted under paragraph 
        (1), the Commission may not make a change in the 
        recommendations of the Secretary that would close a 
        military installation not recommended for closure by 
        the Secretary, would realign a military installation 
        not recommended for closure or realignment by the 
        Secretary, or would expand the extent of the 
        realignment of a military installation recommended for 
        realignment by the Secretary unless--
                    ``(A) at least two members of the 
                Commission visit the military installation 
                before the date of the transmittal of the 
                report; and
                    ``(B) the decision of the Commission to 
                make the change to recommend the closure of the 
                military installation, the realignment of the 
                installation, or the expanded realignment of 
                the installation is supported by at least seven 
                members of the Commission.''.

                      Subtitle D--Land Conveyances

                        PART I--ARMY CONVEYANCES

SEC. 2841. LAND CONVEYANCE, SUNFLOWER ARMY AMMUNITION PLANT, KANSAS.

    (a) Conveyance Authorized.--The Secretary of the Army, in 
consultation with the Administrator of General Services, may 
convey to an entity selected by the Board of Commissioners of 
Johnson County, Kansas (in this section referred to as the 
``entity'' and the ``Board'', respectively), all right, title, 
and interest of the United States in and to a parcel of real 
property, including any improvements thereon, consisting of 
approximately 9,065 acres and containing the Sunflower Army 
Ammunition Plant. The purpose of the conveyance is to 
facilitate the re-use of the property for economic development 
and revitalization.
    (b) Consideration.--(1) As consideration for the conveyance 
under subsection (a), the entity shall provide the United 
States, whether by cash payment, in-kind consideration, or a 
combination thereof, an amount that is not less than the fair 
market value of the conveyed property, as determined by an 
appraisal of the property acceptable to the Administrator and 
the Secretary. As a form of in-kind consideration for the 
conveyance of the property, the Secretary may authorize the 
entity to carry out environmental remediation activities for 
the conveyed property.
    (2) Cash consideration received under paragraph (1) shall 
be deposited in the special account in the Treasury established 
under subsection (b) of section 572 of title 40, United States 
Code, and shall be available in accordance with paragraph 
(5)(B)(i) of such subsection.
    (c) Construction With Previous Land Conveyance Authority.--
The conveyance authority provided by subsection (a) is in 
addition to the conveyance authority provided by section 2823 
of the Military Construction Authorization Act for Fiscal Year 
2003 (division B of Public Law 107-314; 116 Stat. 2712) to 
convey a portion of the Sunflower Army Ammunition Plant to the 
Johnson County Park and Recreation District.
    (d) Agreements Concerning Environmental Remediation and 
Explosives Cleanup.--(1) The Secretary, in consultation with 
the Administrator, may enter into a multi-year cooperative 
agreement or contract with the entity for the environmental 
remediation and explosives cleanup of the conveyed property, 
and may utilize amounts authorized to be appropriated to the 
Secretary for purposes of environmental remediation and 
explosives cleanup under the agreement or contract.
    (2) The cooperative agreement or contract may provide for 
advance payments on an annual basis or for payments on a 
performance basis. Payments may be made over a period of time 
agreed to by the Secretary and the entity or for such time as 
may be necessary to perform the environmental remediation and 
explosives cleanup of the property, including any long-term 
operation and maintenance requirements.
    (e) Payment of Costs of Conveyance.--(1) The Secretary may 
require the entity to cover costs to be incurred by the 
Secretary, or to reimburse the Secretary for costs incurred by 
the Secretary, to carry out the conveyance under subsection 
(a), including survey costs, costs related to environmental 
documentation, and other administrative costs related to the 
conveyance. If amounts are collected from the entity in advance 
of the Secretary incurring the actual costs, and the amount 
collected exceeds the costs actually incurred by the Secretary 
to carry out the conveyance, the Secretary shall refund the 
excess amount to the entity.
    (2) Amounts received as reimbursement under paragraph (1) 
shall be credited to the fund or account that was used to cover 
the costs incurred by the Secretary in carrying out the 
conveyance. Amounts so credited shall be merged with amounts in 
such fund or account, and shall be available for the same 
purposes, and subject to the same conditions and limitations, 
as amounts in such fund or account.
    (f) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary and the Administrator.
    (g) Additional Terms and Conditions.--The Secretary and the 
Administrator may require such additional terms and conditions 
in connection with the conveyance of real property under 
subsection (a), and the environmental remediation and 
explosives cleanup under subsection (d), as the Secretary and 
the Administrator jointly consider appropriate to protect the 
interests of the United States.

SEC. 2842. LAND EXCHANGE, FORT CAMPBELL, KENTUCKY AND TENNESSEE.

    (a) Land Exchange Authorized.--In exchange for the real 
property described in subsection (b), the Secretary of the Army 
may convey to Bi-County Solid Waste Management System, a local 
government agency (in this section referred to as ``Bi-
County''), all right, title, and interest of the United States 
in and to a parcel of real property, including any improvements 
thereon, consisting of approximately 358 acres located at Fort 
Campbell in Montgomery County, Tennessee, for the purpose of 
permitting Bi-County to expand a landfill facility.
    (b) Consideration.--As consideration for the conveyance 
under subsection (a), Bi-County shall convey to the United 
States all right, title, and interest of Bi-County in and to a 
parcel of real property consisting of approximately 670 acres 
located adjacent to Fort Campbell in Trigg County, Kentucky, 
and Stewart County, Tennessee. The Secretary shall have 
jurisdiction over the real property received under this 
subsection.
    (c) Condition of Conveyance.--The conveyance under 
subsection (a) shall be subject to the condition that Bi-County 
construct a fence, acceptable to the Secretary, consisting of 
at least six-foot high, nine-gauge chain-link and three-strand 
barbed wire along the boundary between Fort Campbell and the 
real property conveyed under subsection (a).
    (d) Payment of Costs of Conveyance.--(1) The Secretary may 
require Bi-County to cover costs to be incurred by the 
Secretary, or to reimburse the Secretary for costs incurred by 
the Secretary, to carry out the conveyances under this section, 
including survey costs, costs related to environmental 
documentation, and other administrative costs related to the 
conveyances. If amounts are collected from Bi-County in advance 
of the Secretary incurring the actual costs, and the amount 
collected exceeds the costs actually incurred by the Secretary 
to carry out the conveyance, the Secretary shall refund the 
excess amount to Bi-County.
    (2) Amounts received as reimbursement under paragraph (1) 
shall be credited to the fund or account that was used to cover 
the costs incurred by the Secretary in carrying out the 
conveyances. Amounts so credited shall be merged with amounts 
in such fund or account, and shall be available for the same 
purposes, and subject to the same conditions and limitations, 
as amounts in such fund or account.
    (e) Description of Property.--The exact acreage and legal 
description of the property to be conveyed under this section 
shall be determined by surveys satisfactory to the Secretary 
and Bi-County.
    (f) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyances under this section as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2843. LAND CONVEYANCE, LOUISIANA ARMY AMMUNITION PLANT, DOYLINE, 
                    LOUISIANA.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey, without consideration, to the State of Louisiana (in 
this section referred to as the ``State'') all right, title, 
and interest of the United States in and to a parcel of real 
property, including any improvements thereon, consisting of 
approximately 14,949 acres located at the Louisiana Army 
Ammunition Plant, Doyline, Louisiana.
    (b) Conditions of Conveyance.--The conveyance under 
subsection (a) shall be subject to the following conditions:
            (1) That at least 13,500 acres of the real property 
        conveyed under such subsection is maintained by the 
        State for the purpose of military training, unless the 
        Secretary determines that fewer acres are required for 
        such purpose.
            (2) That the State ensure that any other uses made 
        of the conveyed property do not adversely impact such 
        military training.
            (3) That the State accommodate the use of the 
        conveyed property, at no cost or fee, for meeting the 
        present and future training needs of units of the Armed 
        Forces, including units of the Louisiana National Guard 
        and the other active and reserve components of the 
        Armed Forces.
            (4) That the State assume the rights and 
        responsibilities of the Department of the Army under 
        the armaments retooling manufacturing support agreement 
        between the Department of the Army and the facility use 
        contractor with respect to the Louisiana Army 
        Ammunition Plant, in accordance with the terms of such 
        agreement in effect at the time of the conveyance.
    (c) Payment of Costs of Conveyance.--(1) The Secretary may 
require the State to cover costs to be incurred by the 
Secretary, or to reimburse the Secretary for costs incurred by 
the Secretary, to carry out the conveyance under subsection 
(a), including survey costs, costs related to environmental 
documentation, and other administrative costs related to the 
conveyance. If amounts are collected from the State in advance 
of the Secretary incurring the actual costs, and the amount 
collected exceeds the costs actually incurred by the Secretary 
to carry out the conveyance, the Secretary shall refund the 
excess amount to the State.
    (2) Amounts received as reimbursement under paragraph (1) 
shall be credited to the fund or account that was used to cover 
the costs incurred by the Secretary in carrying out the 
conveyance. Amounts so credited shall be merged with amounts in 
such fund or account, and shall be available for the same 
purposes, and subject to the same conditions and limitations, 
as amounts in such fund or account.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary. The cost of the survey shall be borne by the 
State.
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2844. LAND CONVEYANCE, FORT LEONARD WOOD, MISSOURI.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey, without consideration, to the State of Missouri (in 
this section referred to as the ``State'') all right, title, 
and interest of the United States in and to a parcel of real 
property, including improvements thereon, consisting of 
approximately 227.7 acres at Fort Leonard Wood, Missouri, for 
the purpose of permitting the State to establish on the 
property a State-operated cemetery for veterans of the Armed 
Forces.
    (b) Reversionary Interest.--If the Secretary determines at 
any time that the real property conveyed under subsection (a) 
is not being used in accordance with the purpose of the 
conveyance specified in such subsection, all right, title, and 
interest in and to the property shall revert, at the option of 
the Secretary, to the United States, and the United States 
shall have the right of immediate entry onto the property. Any 
determination of the Secretary under this subsection shall be 
made on the record after an opportunity for a hearing.
    (c) Payment of Costs of Conveyance.--(1) The Secretary may 
require the State to cover costs to be incurred by the 
Secretary, or to reimburse the Secretary for costs incurred by 
the Secretary, to carry out the conveyance under subsection 
(a), including survey costs, costs related to environmental 
documentation, and other administrative costs related to the 
conveyance. If amounts are collected from the State in advance 
of the Secretary incurring the actual costs, and the amount 
collected exceeds the costs actually incurred by the State to 
carry out the conveyance, the Secretary shall refund the excess 
amount to the State. The authority of the Secretary to require 
the State to cover administrative costs related to the 
conveyance does not include costs related to any environmental 
remediation required for the property.
    (2) Amounts received as reimbursement under paragraph (1) 
shall be credited to the fund or account that was used to cover 
the costs incurred by the Secretary in carrying out the 
conveyance. Amounts so credited shall be merged with amounts in 
such fund or account, and shall be available for the same 
purposes, and subject to the same conditions and limitations, 
as amounts in such fund or account.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary.
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2845. TRANSFER OF ADMINISTRATIVE JURISDICTION, DEFENSE SUPPLY 
                    CENTER, COLUMBUS, OHIO.

    (a) Transfer Authorized.--The Secretary of the Army may 
transfer, without reimbursement, to the administrative 
jurisdiction of the Secretary of Veterans Affairs a parcel of 
real property consisting of approximately 20 acres and 
comprising a portion of the Defense Supply Center in Columbus, 
Ohio.
    (b) Use of Property.--The Secretary of Veterans Affairs may 
only use the property transferred under subsection (a) as the 
site for the construction of a new outpatient clinic for the 
provision of medical services to veterans.
    (c) Costs.--Any administrative costs in connection with the 
transfer of property under subsection (a), including the costs 
of the survey required by subsection (e), shall be borne by the 
Secretary of Veterans Affairs.
    (d) Return of Jurisdiction to Army.--If construction of the 
outpatient clinic described in subsection (b) has not commenced 
on the property transferred under subsection (a) by the end of 
the three-year period beginning on the date on which the 
property is transferred, the Secretary of Veterans Affairs 
shall return, at the request of the Secretary of the Army, 
administrative jurisdiction over the property to the Secretary 
of the Army.
    (e) Description of Property.--The exact acreage and legal 
description of the real property to be transferred under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary of the Army.

SEC. 2846. JURISDICTION AND UTILIZATION OF FORMER PUBLIC DOMAIN LANDS, 
                    UMATILLA CHEMICAL DEPOT, OREGON.

    (a) Retention of Jurisdiction.--The various parcels of real 
property consisting of approximately 8,300 acres within the 
boundaries of Umatilla Chemical Depot, Oregon, that were 
previously withdrawn from the public domain are no longer 
suitable for return to the public domain and shall remain under 
the administrative jurisdiction of the Secretary of the Army.
    (b) Utilization.--The Secretary shall combine the real 
property described in subsection (a) with other real property 
comprising the Umatilla Chemical Depot for purposes of their 
management and disposal pursuant to title II of the Defense 
Authorization Amendments and Base Closure and Realignment Act 
of 1988 (Public Law 100-526; 10 U.S.C. 2687 note) and other 
applicable law.

SEC. 2847. MODIFICATION OF AUTHORITY FOR LAND CONVEYANCE, EQUIPMENT AND 
                    STORAGE YARD, CHARLESTON, SOUTH CAROLINA.

    Subsection (h) of section 563 of the Water Resources 
Development Act of 1999 (Public Law 106-53; 113 Stat. 360) is 
amended to read as follows:
    ``(h) Charleston, South Carolina.--
            ``(1) Conveyance authorized.--The Secretary may 
        convey to the City of Charleston, South Carolina (in 
        this subsection referred to as the `City'), all right, 
        title, and interest of the United States in and to a 
        parcel of real property of the Corps of Engineers, 
        including any improvements thereon, that is known as 
        the Equipment and Storage Yard and consists of 
        approximately 1.06 acres located on Meeting Street in 
        Charleston, South Carolina. The property shall be 
        conveyed in as-is condition.
            ``(2) Consideration.--As consideration for the 
        conveyance under this subsection, the City shall 
        provide the United States, whether by cash payment, in-
        kind consideration, or a combination thereof, an amount 
        that is not less than the fair market value of the 
        property conveyed, as determined by the Secretary.
            ``(3) Use of proceeds.--(A) Notwithstanding any 
        requirements associated with the Plant Replacement and 
        Improvement Program, amounts received as consideration 
        under paragraph (2) may be used by the Corps of 
        Engineers, Charleston District--
                    ``(i) to lease, purchase, or construct an 
                office facility within the boundaries of 
                Charleston, Berkeley, or Dorchester County, 
                South Carolina;
                    ``(ii) to cover costs associated with the 
                design and furnishing of such facility; and
                    ``(iii) to satisfy any Plant Replacement 
                and Improvement Program balances.
            ``(B) Any amounts received as consideration under 
        paragraph (2) that are in excess of the fair market 
        value of the real property conveyed under this 
        subsection may be used for any authorized activities of 
        the Corps of Engineers, Charleston District.
            ``(4) Description of property.--The exact acreage 
        and legal description of the real property to be 
        conveyed under this subsection and any property 
        transferred to the United States as consideration under 
        paragraph (2) shall be determined by surveys 
        satisfactory to the Secretary.
            ``(5) Additional terms and conditions.--The 
        Secretary may require such additional terms and 
        conditions in connection with the conveyance under this 
        subsection as the Secretary considers appropriate to 
        protect the interests of the United States.''.

SEC. 2848. LAND CONVEYANCE, FORT HOOD, TEXAS.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey to the Texas A&M University System of the State of Texas 
(in this section referred to as the ``University System'') all 
right, title, and interest of the United States in and to a 
parcel of real property, including improvements thereon, 
consisting of approximately 662 acres at Fort Hood, Texas, for 
the sole purpose of permitting the University System to 
establish on the property an upper level (junior, senior, and 
graduate) university that will be State-supported, separate 
from other universities of the University System, and 
designated as Texas A&M University, Central Texas.
    (b) Consideration.--(1) As consideration for the conveyance 
under subsection (a), the University System shall pay to the 
United States an amount equal to the fair market value of the 
conveyed property, as determined pursuant to an appraisal 
acceptable to the Secretary.
    (2) In lieu of all or a portion of the cash consideration 
required by paragraph (1), the Secretary may accept in-kind 
consideration, including the conveyance by the University 
System of real property acceptable to the Secretary.
    (c) Condition of Conveyance.--The conveyance under 
subsection (a) shall be subject to the condition that the 
Secretary determine that the conveyance of the property and the 
establishment of a university on the property will not 
adversely impact the operation of Robert Grey Army Airfield, 
which is located on Fort Hood approximately one mile from the 
property authorized for conveyance.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary. The cost of the survey shall be borne by the 
University System.
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2849. LAND CONVEYANCE, LOCAL TRAINING AREA FOR BROWNING ARMY 
                    RESERVE CENTER, UTAH.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey, without consideration, to the State of Utah (in this 
section referred to as the ``State'') all right, title, and 
interest of the United States in and to a parcel of unimproved 
real property consisting of approximately 10 acres of the Local 
Training Area for the Browning Army Reserve Center, Utah, for 
the purpose of facilitating the construction and operation of a 
nursing-care facility for veterans. The parcel to be conveyed 
under this subsection shall be selected by the Secretary in 
consultation with the State.
    (b) Reversionary Interest.--If the Secretary determines at 
any time that the real property conveyed under subsection (a) 
is not being used in accordance with the purpose of the 
conveyance specified in such subsection, all right, title, and 
interest in and to the property shall revert, at the option of 
the Secretary, to the United States, and the United States 
shall have the right of immediate entry onto the property. Any 
determination of the Secretary under this subsection shall be 
made on the record after an opportunity for a hearing.
    (c) Payment of Costs of Conveyance.--(1) The Secretary may 
require the State to cover costs to be incurred by the 
Secretary, or to reimburse the Secretary for costs incurred by 
the Secretary, to carry out the conveyance under subsection 
(a), including survey costs, costs related to environmental 
documentation, and other administrative costs related to the 
conveyance. If amounts paid to the Secretary in advance exceed 
the costs actually incurred by the Secretary to carry out the 
conveyance, the Secretary shall refund the excess amount to the 
State.
    (2) Amounts received as reimbursement under paragraph (1) 
shall be credited to the fund or account that was used to cover 
the costs incurred by the Secretary. Amounts so credited shall 
be merged with amounts in such fund or account, and shall be 
available for the same purposes, and subject to the same 
conditions and limitations, as amounts in such fund or account.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary.
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2850. LAND CONVEYANCE, ARMY RESERVE CENTER, HAMPTON, VIRGINIA.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey, without consideration, to the Hampton City School Board 
of Hampton, Virginia (in this section referred to as the 
``Board''), all right, title, and interest of the United States 
in and to a parcel of real property, including any improvements 
thereon, that consists of approximately 13.42 acres, is located 
on Downey Farm Road in Hampton, Virginia, and is known as the 
Butler Farm United States Army Reserve Center for the purpose 
of permitting the Board to use the property for public 
education purposes.
    (b) Condition of Conveyance.--The conveyance under 
subsection (a) shall be subject to the condition that the Board 
accept the real property described in subsection (a) in its 
condition at the time of the conveyance, commonly known as 
conveyance ``as is''.
    (c) Payment of Costs of Conveyance.--(1) The Secretary may 
require the Board to cover costs to be incurred by the 
Secretary, or to reimburse the Secretary for costs incurred by 
the Secretary, to carry out the conveyance under subsection 
(a), including survey costs, costs related to environmental 
documentation, and other administrative costs related to the 
conveyance. If amounts are collected from the Board in advance 
of the Secretary incurring the actual costs, and the amount 
collected exceeds the costs actually incurred by the Secretary 
to carry out the conveyance, the Secretary shall refund the 
excess amount to the Board.
    (2) Amounts received as reimbursement under paragraph (1) 
shall be credited to the fund or account that was used to cover 
the costs incurred by the Secretary in carrying out the 
conveyance. Amounts so credited shall be merged with amounts in 
such fund or account, and shall be available for the same 
purposes, and subject to the same conditions and limitations, 
as amounts in such fund or account.
    (d) Description of Property.--The exact acreage and legal 
description of the property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary.
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2851. LAND CONVEYANCE, ARMY NATIONAL GUARD FACILITY, SEATTLE, 
                    WASHINGTON.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey, without consideration, to the State of Washington (in 
this section referred to as the ``State'') all right, title, 
and interest of the United States in and to a parcel of real 
property, including any improvements thereon, consisting of 
approximately 9.747 acres in Seattle, Washington, and 
comprising a portion of the National Guard Facility, Pier 91, 
for the purpose of permitting the State to convey the facility 
unencumbered for economic development purposes.
    (b) Condition of Conveyance.--The conveyance under 
subsection (a) shall be subject to the condition that the State 
accept the real property in its condition at the time of the 
conveyance, commonly known as conveyance ``as is''.
    (c) Administrative Expenses.--(1) The State shall reimburse 
the Secretary for the administrative expenses incurred by the 
Secretary in carrying out the conveyance under subsection (a), 
including expenses related to surveys and legal descriptions, 
boundary monumentation, environmental surveys, necessary 
documentation, travel, and deed preparation.
    (2) Section 2695(c) of title 10, United States Code, shall 
apply to any amounts received by the Secretary as reimbursement 
under this subsection.
    (d) Description of Property.--The exact acreage and legal 
description of the property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. 
The cost of the survey shall be borne by the United States, 
subject to the requirement for reimbursement under subsection 
(c).
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2852. MODIFICATION OF LAND EXCHANGE AND CONSOLIDATION, FORT LEWIS, 
                    WASHINGTON.

    (a) Property to Be Transferred to Secretary of the Interior 
in Trust.--Subsection (a)(1) of section 2837 of the Military 
Construction Authorization Act for Fiscal Year 2002 (division B 
of Public Law 107-107; 115 Stat. 1315) is amended--
            (1) by striking ``may convey to'' and inserting 
        ``may transfer to the Secretary of the Interior, in 
        trust for''; and
            (2) by striking ``Washington, in'' and all that 
        follows through the period and inserting ``Washington. 
        The Secretary of the Army may make the transfer under 
        the preceding sentence, and the Secretary of the 
        Interior may accept the property transferred in trust 
        for the Nisqually Tribe under the preceding sentence, 
        only in conjunction with the conveyance described in 
        subsection (b)(2).''.
    (b) Increase in Acreage to Be Transferred.--Such subsection 
is further amended by striking ``138 acres'' and inserting 
``168 acres''.
    (c) Qualification on Property to Be Transferred.--
Subsection (a)(2) of such section is amended--
            (1) by striking ``conveyance'' and inserting 
        ``transfer''; and
            (2) by striking ``or the right of way described in 
        subsection (c)'' and inserting ``located on the real 
        property transferred under that paragraph''.
    (d) Consideration.--Subsection (b) of such section is 
amended--
            (1) in the matter preceding paragraph (1), by 
        striking ``conveyance'' and inserting ``transfer''; and
            (2) in paragraph (2), by striking ``fee title over 
        the acquired property to the Secretary'' and inserting 
        ``to the United States fee title to the property 
        acquired under paragraph (1), free from all liens, 
        encumbrances or other interests other than those, if 
        any, acceptable to the Secretary of the Army''.
    (e) Treatment of Existing Permit Rights; Grant of 
Easement.--Such section is further amended--
            (1) by redesignating subsections (d) and (e) as 
        subsections (e) and (f), respectively; and
            (2) by inserting after subsection (c) the following 
        new subsection:
    ``(d) Treatment of Existing Permit Rights; Grant of 
Easement.--(1) The transfer under subsection (a) recognizes and 
preserves to the Bonneville Power Administration, in perpetuity 
and without the right of revocation except as provided in 
paragraph (2), rights in existence at the time of the 
conveyance under the permit dated February 4, 1949, as amended 
January 4, 1952, between the Department of the Army and the 
Bonneville Power Administration with respect to any portion of 
the property transferred under subsection (a) upon which the 
Bonneville Power Administration retains transmission 
facilities. The rights recognized and preserved include the 
right to upgrade those transmission facilities.
    ``(2) The permit rights recognized and preserved under 
paragraph (1) shall terminate only upon the Bonneville Power 
Administration's relocation of the transmission facilities 
referred to in paragraph (1), and then only with respect to 
that portion of those transmission facilities that are 
relocated.
    ``(3) The Secretary of the Interior, as trustee for the 
Nisqually Tribe, shall grant to the Bonneville Power 
Administration, without consideration and subject to the same 
rights recognized and preserved in paragraph (1), such 
additional easements across the property transferred under 
subsection (a) as the Bonneville Power Administration considers 
necessary to accommodate the relocation or reconnection of 
Bonneville Power Administration transmission facilities from 
property owned by the Tribe and held by the Secretary of the 
Interior in trust for the Tribe.''.
    (f) Conforming Amendments.--(1) Subsection (c) of such 
section is amended by inserting ``of the Army'' after 
``Secretary''.
    (2) Subsection (e) of such section (as redesignated by 
subsection (e)(1)) is amended--
            (A) by striking ``conveyed'' and inserting 
        ``transferred'';
            (B) by inserting ``of the Army'' after 
        ``Secretary''; and
            (C) by striking ``the recipient of the property 
        being surveyed'' and inserting ``the Tribe, in the case 
        of the transfer under subsection (a), and the Secretary 
        of the Army, in the case of the acquisition under 
        subsection (b)''.
    (3) Subsection (f) of such section (as redesignated by 
subsection (e)(1)) is amended--
            (A) by inserting ``of the Army'' after 
        ``Secretary'' both place it appears; and
            (B) by striking ``conveyances under this section'' 
        and inserting ``transfer under subsection (a) and 
        conveyances under subsections (b)(2) and (c)''.

                       PART II--NAVY CONVEYANCES

SEC. 2861. LAND EXCHANGE, FORMER RICHMOND NAVAL AIR STATION, FLORIDA.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey to the University of Miami, Miami, Florida (in this 
section referred to as the ``University''), all right, title, 
and interest of the United States in and to certain parcels of 
real property, together with any improvements thereon, 
consisting of approximately 14 acres and located in the 
vicinity of the former Richmond Naval Air Station, Florida, in 
order to facilitate force protection and security needs of 
Department of Defense facilities located on the former Richmond 
Naval Air Station.
    (b) Release of Easements.--As part of the conveyance of 
property authorized by subsection (a), the Secretary may also--
            (1) release and extinguish any interest of the 
        United States in a clearance easement on the western 
        portion of the property of the University; and
            (2) release and extinguish any interest of the 
        United States in a certain easement for ingress and 
        egress extending southwest and south from Southwest 
        127th Street along the western property line of a 
        certain portion of United States property referred to 
        as ``IE2'' in the Agreement in Principle referred to in 
        subsection (e)(2).
    (c) Consideration.--As consideration for the conveyance of 
property authorized by subsection (a) and the release and 
extinguishment of interests authorized by subsection (b), the 
University shall--
            (1) convey to the United States all right, title, 
        and interest of the University in and to certain 
        parcels of real property, together with any 
        improvements thereon, consisting of approximately 12 
        acres;
            (2) grant to the United States such easement over a 
        parcel of real property located along the western 
        boundary of the property of the University as the 
        Secretary considers appropriate to permit the United 
        States to exercise dominion and control over the 
        portion of the western boundary of the property of the 
        University that has been, or may be, designated as 
        Natural Forest Community habitat;
            (3) construct and install a berm and fence security 
        system along the entirety of the new property line 
        between the United States and the University;
            (4) relocate the existing security gate and guard 
        building, or establish a new security gate and guard 
        building similar in design and size to the existing 
        security gate and guard building, at a point where the 
        property of the United States and the University 
        intersect on the existing ingress-egress road; and
            (5) construct a new two-lane access road from 
        Southwest 152nd Street at the western boundary of the 
        property of the University to a point that connects 
        with the existing road on the property of the United 
        States (commonly referred to as the ``FAA Road'').
    (d) Construction With Previous Conveyance.--Any 
restrictions on the use as an animal research facility of a 
certain parcel of real property, consisting of approximately 30 
acres, conveyed by the Secretary of Health and Human Services 
to the University pursuant to section 647 of the Ominbus 
Consolidated Appropriations Act, 1997 (Public Law 104-208; 110 
Stat. 3009-366) shall terminate upon the execution of the 
agreement of exchange required by subsection (e).
    (e) Terms of Exchange.--(1) The Secretary and the 
University shall carry out the conveyances and releases of 
interest authorized by this section pursuant to an agreement of 
exchange (to be known as the ``Exchange Agreement'') between 
the Secretary and the University.
    (2) The agreement of exchange shall conform to, and develop 
with more particularity, the Agreement in Principle executed by 
the United States and the University on July 13 through 15, 
2004.
    (f) Payment of Costs.--(1) The Secretary may require the 
University to cover costs to be incurred by the Secretary, or 
to reimburse the Secretary for costs incurred by the Secretary, 
to carry out the conveyances under this section and the release 
and grants of interests under this section, including survey 
costs, costs related to environmental documentation, and other 
administrative costs related to such activities. If amounts 
paid to the Secretary in advance exceed the costs actually 
incurred by the Secretary to carry out such activities, the 
Secretary shall refund the excess amount to the University.
    (2) Amounts received as reimbursement under paragraph (1) 
shall be credited to the fund or account that was used to cover 
the costs incurred by the Secretary. Amounts so credited shall 
be merged with amounts in such fund or account, and shall be 
available for the same purposes, and subject to the same 
conditions and limitations, as amounts in such fund or account.
    (g) Description of Property.--The exact acreage and legal 
description of the property to be conveyed under this section, 
and of the interests to be released or granted under this 
section, shall be determined by surveys satisfactory to the 
Secretary.
    (h) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyances under this section, and the release and grants 
of interests under this section, as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2862. LAND CONVEYANCE, HONOLULU, HAWAII.

    (a) Conveyance Authorized.--The Secretary of the Navy may 
convey, without consideration but subject to the conditions 
specified in subsection (b), to the City and County of 
Honolulu, Hawaii, all right, title, and interest of the United 
States in and to a parcel of real property, including 
improvements thereon, consisting of approximately 5.16 acres 
located at 890 Valkenberg Avenue, Honolulu, Hawaii, and 
currently used by the City and County of Honolulu as the site 
of a fire station and firefighting training facility. The 
purpose of the conveyance is to enhance the capability of the 
City and County of Honolulu to provide fire protection and 
firefighting services to the civilian and military properties 
in the area and to provide a location for firefighting training 
for civilian and military personnel.
    (b) Conditions of Conveyance.--The conveyance under 
subsection (a) shall be subject to the following conditions:
            (1) That the City and County of Honolulu accept the 
        real property in its condition at the time of the 
        conveyance, commonly known as conveyance ``as is''.
            (2) That the City and County of Honolulu make the 
        firefighting training facility available to the fire 
        protection and firefighting units of the military 
        departments for training not less than two days per 
        week on terms satisfactory to the Secretary.
    (c) Payment of Costs of Conveyance.--(1) The Secretary 
shall require the City and County of Honolulu to cover costs to 
be incurred by the Secretary, or to reimburse the Secretary for 
costs incurred by the Secretary, to carry out the conveyance 
under subsection (a), including survey costs, costs related to 
environmental documentation, and other administrative costs 
related to the conveyance. If amounts are collected from the 
City and County of Honolulu in advance of the Secretary 
incurring the actual costs, and the amount collected exceeds 
the costs actually incurred by the Secretary to carry out the 
conveyance, the Secretary shall refund the excess amount, 
without interest, to the City and County of Honolulu.
    (2) Amounts received as reimbursement under paragraph (1) 
shall be credited to the fund or account that was used to cover 
the costs incurred by the Secretary in carrying out the 
conveyance. Amounts so credited shall be merged with amounts in 
such fund or account, and shall be available for the same 
purposes, and subject to the same conditions and limitations, 
as amounts in such fund or account.
    (d) Description of Property.--The exact acreage and legal 
description of the property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary.
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2863. LAND CONVEYANCE, NAVY PROPERTY, FORMER FORT SHERIDAN, 
                    ILLINOIS.

    (a) Conveyance Authorized.--The Secretary of the Navy may 
convey, without consideration, to the State of Illinois, a 
political subdivision of the State, or a nonprofit land 
conservation organization (in this section referred to as the 
``grantee'') all right, title, and interest of the United 
States in and to certain parcels of real property consisting of 
a total of approximately 25 acres of environmentally sensitive 
land at the former Fort Sheridan, Illinois, for the purpose of 
ensuring the permanent protection of the land.
    (b) Reversionary Interest.--If the Secretary determines at 
any time that the real property conveyed under subsection (a) 
is not being used or maintained in accordance with the purpose 
of the conveyance specified in such subsection, all right, 
title, and interest in and to the property shall revert, at the 
option of the Secretary, to the United States, and the United 
States shall have the right of immediate entry onto the 
property. Any determination of the Secretary under this 
subsection shall be made on the record after an opportunity for 
a hearing.
    (c) Reconveyance Authorized.--The Secretary may permit the 
grantee to convey the real property conveyed under subsection 
(a) to another eligible entity described in such subsection, 
subject to the same covenants and terms and conditions as 
provided in the deed from the United States.
    (d) Payment of Costs of Conveyance.--(1) The Secretary 
shall require the grantee to cover costs to be incurred by the 
Secretary, or to reimburse the Secretary for costs incurred by 
the Secretary, to carry out the conveyance under subsection 
(a), including survey costs, costs related to environmental 
documentation, and other administrative costs related to the 
conveyance. If amounts are collected from the grantee in 
advance of the Secretary incurring the actual costs, and the 
amount collected exceeds the costs actually incurred by the 
Secretary to carry out the conveyance, the Secretary shall 
refund the excess amount to the grantee.
    (2) Amounts received as reimbursement under paragraph (1) 
shall be credited to the fund or account that was used to cover 
the costs incurred by the Secretary in carrying out the 
conveyance. Amounts so credited shall be merged with amounts in 
such fund or account, and shall be available for the same 
purposes, and subject to the same conditions and limitations, 
as amounts in such fund or account.
    (e) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary.
    (f) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.
    (g) Use of Alternate Conveyance Authority.--In lieu of 
using the authority provided by this section to convey the real 
property described in subsection (a), the Secretary may elect 
to include the property in a conveyance authorized by section 
2878 of title 10, United States Code, subject to such terms, 
reservations, restrictions, and conditions as may be necessary 
to ensure the permanent protection of the property, if the 
Secretary determines that a conveyance under such section is 
advantageous to the interests of the United States.

SEC. 2864. LAND EXCHANGE, NAVAL AIR STATION, PATUXENT RIVER, MARYLAND.

    (a) Conveyance Authorized.--The Secretary of the Navy may 
convey to the State of Maryland (in this section referred to as 
``State'') all right, title, and interest of the United States 
in and to a parcel of real property, including improvements 
thereon, consisting of approximately five acres at Naval Air 
Station, Patuxent River, Maryland, and containing the Point 
Lookout Lighthouse, other structures related to the lighthouse, 
and an archaeological site pertaining to the military hospital 
that was located on the property during the Civil War. The 
conveyance shall include artifacts pertaining to the military 
hospital recovered by the Navy and held at the installation.
    (b) Property Received in Exchange.--As consideration for 
the conveyance of the real property under subsection (a), the 
State shall convey to the United States a parcel of real 
property at Point Lookout State Park, Maryland, consisting of 
approximately five acres, or a smaller parcel that the 
Secretary considers sufficient and such related property 
interests as the Secretary and the State may agree to.
    (c) Payment of Costs of Conveyance.--(1) The Secretary may 
require the State to cover costs to be incurred by the 
Secretary, or to reimburse the Secretary for costs incurred by 
the Secretary, to carry out the conveyance under subsection 
(a), including survey costs, costs related to environmental 
documentation, relocation expenses incurred in connection with 
the acquisition of real property under subsection (b), and 
other administrative costs related to the conveyance. If 
amounts are collected from the State in advance of the 
Secretary incurring the actual costs, and the amount collected 
exceeds the costs actually incurred by the Secretary to carry 
out the conveyance, the Secretary shall refund the excess 
amount to State.
    (2) Amounts received as reimbursement under paragraph (1) 
shall be credited to the fund or account that was used to cover 
the costs incurred by the Secretary in carrying out the 
conveyance. Amounts so credited shall be merged with amounts in 
such fund or account, and shall be available for the same 
purposes, and subject to the same conditions and limitations, 
as amounts in such fund or account.
    (d) Description of Property.--The exact acreage and legal 
description of the properties to be conveyed under this section 
shall be determined by surveys satisfactory to the Secretary.
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyances under this section as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2865. MODIFICATION OF LAND ACQUISITION AUTHORITY, PERQUIMANS 
                    COUNTY, NORTH CAROLINA.

    Section 2846 of the Military Construction Authorization Act 
for Fiscal Year 2002 (division B of Public Law 107-107; 115 
Stat. 1320) is amended by striking ``240 acres'' and insert 
``840 acres''.

SEC. 2866. LAND CONVEYANCE, NAVAL WEAPONS STATION, CHARLESTON, SOUTH 
                    CAROLINA.

    (a) Conveyance Authorized.--The Secretary of the Navy may 
convey to the Berkeley County Sanitation Authority, South 
Carolina (in this section referred to as the ``Authority''), 
all right, title, and interest of the United States in and to a 
parcel of real property, including any improvements thereon, 
consisting of not more than 38 acres and comprising a portion 
of the Naval Weapons Station, Charleston, South Carolina, for 
the purpose of allowing the Authority to expand an existing 
sewage treatment plant.
    (b) Consideration.--(1) As consideration for the conveyance 
of the real property under subsection (a), the Authority shall 
provide the United States, whether by cash payment, in-kind 
services, or a combination thereof, an amount that is not less 
than the fair market value of the conveyed property.
    (2) The fair market value of the real property conveyed 
under subsection (a) shall be determined by an appraisal 
acceptable to the Secretary.
    (c) Payment of Costs of Conveyance.--(1) The Secretary may 
require the Authority to cover costs incurred by the Secretary, 
or to reimburse the Secretary for costs incurred by the 
Secretary, to carry out the conveyance under subsection (a), 
including survey costs, costs related to environmental 
documentation, and other administrative costs related to the 
conveyance. If amounts are collected from the Authority in 
advance of the Secretary incurring the actual costs, and the 
amount collected exceeds the costs actually incurred by the 
Secretary to carry out the conveyance, the Secretary shall 
refund the excess amount to the Authority.
    (2) Amounts received as reimbursement under paragraph (1) 
shall be credited to the fund or account that was used to cover 
the costs incurred by the Secretary in carrying out the 
conveyance. Amounts so credited shall be merged with amounts in 
such fund or account, and shall be made available for the same 
purposes, and subject to the same conditions and limitations, 
as amounts in such fund or account.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary.
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2867. LAND CONVEYANCE, NAVY YMCA BUILDING, PORTSMOUTH, VIRGINIA.

    (a) Conveyance Authorized.--The Secretary of the Navy may 
convey to the City of Portsmouth, Virginia (in this section 
referred to as the ``City''), all right, title, and interest of 
the United States in and to a parcel of real property, 
including any improvements thereon, consisting of approximately 
0.49 acres located at 517 King Street in Portsmouth, Virginia, 
and known as the ``Navy YMCA Building'', for the purpose of 
permitting the City to use the property for economic 
revitalization purposes.
    (b) Consideration.--As consideration for the conveyance 
under subsection (a), the City shall provide the United States, 
whether by cash payment, in-kind consideration, or a 
combination thereof, an amount equal to the costs related to 
the environmental remediation of the real property to be 
conveyed.
    (c) Payment of Other Costs of Conveyance.--(1) The 
Secretary may require the City to cover costs to be incurred by 
the Secretary, or to reimburse the Secretary for costs incurred 
by the Secretary, to carry out the conveyance under subsection 
(a), including survey costs, costs related to environmental 
documentation, and other administrative costs related to the 
conveyance. If amounts paid to the Secretary in advance exceed 
the costs actually incurred by the Secretary to carry out the 
conveyance, the Secretary shall refund the excess amount to the 
City.
    (2) Amounts received as reimbursement under paragraph (1) 
shall be credited to the fund or account that was used to cover 
the costs incurred by the Secretary. Amounts so credited shall 
be merged with amounts in such fund or account, and shall be 
available for the same purposes, and subject to the same 
conditions and limitations, as amounts in such fund or account.
    (d) Description of Property.--The exact acreage and legal 
description of the property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary.
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

                    PART III--AIR FORCE CONVEYANCES

SEC. 2871. LAND EXCHANGE, MAXWELL AIR FORCE BASE, ALABAMA.

    (a) Conveyance Authorized.--The Secretary of the Air Force 
may convey to the City of Montgomery, Alabama (in this section 
referred to as the ``City''), all right, title, and interest of 
the United States in and to a parcel of real property, 
including improvements thereon, consisting of approximately 28 
acres and containing the Maxwell Heights Housing site at 
Maxwell Air Force Base, Alabama.
    (b) Consideration.--(1) As consideration for the conveyance 
of the real property under subsection (a), the City shall 
convey to the United States a parcel of real property, 
including any improvements thereon, located contiguous to 
Maxwell Air Force Base, consisting of approximately 35 acres, 
and designated as project AL 6-4, for the purpose of allowing 
the Secretary to incorporate the parcel into a project for the 
acquisition or improvement of military housing. The military 
housing project may consist of or include a project conducted 
under the authority of subchapter IV of chapter 169 of title 
10, United States Code. The Secretary shall have jurisdiction 
over the real property received under this paragraph.
    (2) If the fair market value of the real property received 
under paragraph (1) is less than the fair market value of the 
real property conveyed under subsection (a), the Secretary may 
require the City to make up the difference through the payment 
of cash, the provision of in-kind consideration, or a 
combination thereof, to be determined pursuant to negotiations 
between the Secretary and the City.
    (3) The fair market values of the real property to be 
exchanged under this section shall be determined by appraisals 
acceptable to the Secretary and the City.
    (c) Payment of Costs of Conveyance.--(1) The Secretary may 
require the City to cover costs to be incurred by the 
Secretary, or to reimburse the Secretary for costs incurred by 
the Secretary, to carry out the conveyances under subsections 
(a) and (b), including survey costs, costs related to 
environmental documentation, and other administrative costs 
related to the conveyances. If amounts are collected from the 
City in advance of the Secretary incurring the actual costs, 
and the amount collected exceeds the costs actually incurred by 
the Secretary to carry out the conveyances, the Secretary shall 
refund the excess amount to the City.
    (2) Amounts received as reimbursement under paragraph (1) 
shall be credited to the fund or account that was used to cover 
the costs incurred by the Secretary in carrying out the 
conveyances. Amounts so credited shall be merged with amounts 
in such fund or account, and shall be available for the same 
purposes, and subject to the same conditions and limitations, 
as amounts in such fund or account.
    (d) Description of Property.--The exact acreage and legal 
description of the properties to be conveyed under this section 
shall be determined by surveys satisfactory to the Secretary.
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyances under this section as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2872. LAND CONVEYANCE, MARCH AIR FORCE BASE, CALIFORNIA.

    (a) Conveyance Authorized.--The Secretary of the Air Force 
may convey to the March Joint Powers Authority (in this section 
referred to as the ``Authority'') all right, title, and 
interest of the United States in and to a parcel of real 
property, including any improvements thereon, consisting of 
approximately 15 acres located in Riverside County, California, 
and containing the former Defense Reutilization and Marketing 
Office facility for March Air Force Base, which is also known 
as Parcel A-6, for the purpose of permitting the Authority to 
use the property for economic development and revitalization.
    (b) Consideration.--As consideration for the conveyance of 
the real property under subsection (a), the Authority shall pay 
the United States an amount equal to the fair market value of 
the conveyed property, as determined by the Secretary. The 
payment shall be deposited in the special account in the 
Treasury referred to in paragraph (5) of section 572(b) of 
title 40, United States Code, and shall be available as 
provided in subparagraph (B)(ii) of such paragraph.
    (c) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary. The cost of the survey shall be borne by the 
Authority.
    (d) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2873. LAND CONVEYANCE, FORMER GRIFFISS AIR FORCE BASE, NEW YORK.

    (a) Conveyance Authorized.--(1) The Secretary of the Air 
Force may convey to the Oneida County Industrial Development 
Agency, New York, the local reuse authority for the former 
Griffiss Air Force Base (in this section referred to as the 
``Authority''), all right, title and interest of the United 
States in and to two parcels of real property consisting of 
7.897 acres and 1.742 acres and containing the four buildings 
specified in paragraph (2), which were vacated by the Air Force 
in conjunction with its relocation to the Consolidated 
Intelligence and Reconnaissance Laboratory at Air Force 
Research Laboratory--Rome Research Site, Rome, New York.
    (2) The buildings referred to in paragraph (1) are the 
following:
            (A) Building 240 (117,323 square feet).
            (B) Building 247 (13,199 square feet).
            (C) Building 248 (4,000 square feet).
            (D) Building 302 (20,577 square feet).
    (3) The purpose of the conveyance under this subsection is 
to permit the Authority to develop the parcels and buildings 
for economic purposes in a manner consistent with section 2905 
of the Defense Base Closure and Realignment Act of 1990 (part A 
of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note).
    (b) Condition of Conveyance.--The conveyance under 
subsection (a) shall be subject to the condition that the 
Authority accept the real property in its condition at the time 
of the conveyance, commonly known as conveyance ``as is''.
    (c) Consideration.--As consideration for the conveyance 
under subsection (a), the Authority shall provide the United 
States, whether by cash payment, in-kind contribution, or a 
combination thereof, an amount equal to the fair market of 
value of the conveyed real property, as determined by the 
Secretary.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary. The cost of the survey shall be borne by the 
Authority.
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

                       PART IV--OTHER CONVEYANCES

SEC. 2881. LAND EXCHANGE, ARLINGTON COUNTY, VIRGINIA.

    (a) Exchange Authorized.--The Secretary of Defense may 
convey to Arlington County, Virginia (in this section referred 
to as the ``County''), all right, title, and interest of the 
United States in and to a parcel of real property, together 
with any improvements thereon, that consists of not more than 
4.5 acres and is located north of Columbia Pike on the Navy 
Annex property in Arlington County, Virginia, for the purpose 
of the construction of a freedmen heritage museum and an 
Arlington history museum.
    (b) Consideration.--As consideration for the conveyance of 
the real property under subsection (a), the County shall convey 
to the United States all right, title, and interest of the 
County in and to a parcel of real property, together with any 
improvements thereon, that is of a size equivalent to the total 
acreage of the real property conveyed by the Secretary under 
subsection (a) and is located in the area known as the 
Southgate Road right-of-way between Arlington National 
Cemetery, Virginia, and the Navy Annex property.
    (c) Selection of Property for Conveyance.--The Secretary, 
in consultation with the County, shall determine the acreage of 
the parcels of real property to be exchanged under this 
section, and such determination shall be final. In selecting 
the real property for conveyance to the County under subsection 
(a), the Secretary shall seek--
            (1) to provide the County with sufficient property 
        for museum construction that is compatible with, and 
        honors, the history of the freedmen's village that was 
        located in the area and the heritage of the County;
            (2) to preserve the appropriate traditions of 
        Arlington National Cemetery; and
            (3) to maintain the amount of acreage currently 
        available for potential grave sites at Arlington 
        National Cemetery.
    (d) Payment of Costs of Conveyances.--(1) The Secretary may 
require the County to cover costs to be incurred by the 
Secretary, or to reimburse the Secretary for costs incurred by 
the Secretary, to carry out the conveyances under subsections 
(a) and (b), including survey costs, costs related to 
environmental documentation, and other administrative costs 
related to the conveyances. If amounts are collected from the 
County in advance of the Secretary incurring the actual costs, 
and the amount collected exceeds the costs actually incurred by 
the Secretary to carry out the conveyance, the Secretary shall 
refund the excess amount to the County.
    (2) Amounts received as reimbursement under paragraph (1) 
shall be credited to the fund or account that was used to cover 
the costs incurred by the Secretary in carrying out the 
conveyances. Amounts so credited shall be merged with amounts 
in such fund or account, and shall be available for the same 
purposes, and subject to the same conditions and limitations, 
as amounts in such fund or account.
    (e) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under this 
section shall be determined by surveys satisfactory to the 
Secretary.
    (f) Reversionary Interest.--(1) If at any time the 
Secretary determines that the property conveyed to the County 
under subsection (a) is not being used for the purposes stated 
in that subsection, then, at the option of the Secretary, all 
right, title, and interest in and to the property, including 
any improvements thereon, shall revert to the United States, 
and the United States shall have the right of immediate entry 
onto the property.
    (2) If the Secretary exercises the reversionary interest 
provided for in paragraph (1), the Secretary shall pay the 
County, from amounts available to the Secretary for military 
construction for the Defense Agencies, an amount equal to the 
fair market value of the property that reverts to the United 
States, as determined by the Secretary.
    (g) Inclusion of Southgate Road Right-of-Way Property in 
Transfer of Navy Annex Property for Arlington National 
Cemetery.--Subsection (a) of section 2881 of the Military 
Construction Authorization Act for Fiscal Year 2000 (division B 
of Public Law 106-65; 113 Stat. 879) is amended by striking 
``three parcels of real property consisting of approximately 36 
acres'' and inserting ``four parcels of real property 
consisting of approximately 40 acres''.
    (h) Termination of Reservation of Certain Navy Annex 
Property for Memorials or Museums.--(1) Subsection (b) of such 
section, as amended by section 2863(f) of the Military 
Construction Authorization Act for Fiscal Year 2002 (division B 
of Public Law 107-107; 115 Stat. 1332) and section 2851(a)(1) 
of the Military Construction Authorization Act for Fiscal Year 
2003 (division B of Public Law 107-314; 116 Stat. 2726), is 
further amended--
            (A) by striking ``(1) Subject to paragraph (2), the 
        Secretary'' and inserting ``The Secretary''; and
            (B) by striking paragraph (2).
    (2) Subsection (d)(2) of such section, as amended by 
section 2851(a)(2) of the Military Construction Authorization 
Act for Fiscal Year 2003 (division B of Public Law 107-314; 116 
Stat. 2726), is further amended--
            (A) by striking ``(A)''; and
            (B) by striking ``, and (B)'' and all that follows 
        through ``Museum.'' and inserting a period.
    (2) Subsection (f) of such section is amended by striking 
``reserved under subsection (b)(2) and of the portion''.
    (i) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyances under this section as the Secretary considers 
appropriate to protect the interests of the United States.

                       Subtitle E--Other Matters

SEC. 2891. ONE-YEAR RESUMPTION OF DEPARTMENT OF DEFENSE LABORATORY 
                    REVITALIZATION DEMONSTRATION PROGRAM.

    Section 2892(g) of the National Defense Authorization Act 
for Fiscal Year 1996 (Public Law 104-106; 10 U.S.C. 2805 note) 
is amended by striking ``September 30, 2003'' and inserting 
``September 30, 2005''.

SEC. 2892. DESIGNATION OF AIRMEN LEADERSHIP SCHOOL AT LUKE AIR FORCE 
                    BASE, ARIZONA, IN HONOR OF JOHN J. RHODES, A FORMER 
                    MINORITY LEADER OF THE HOUSE OF REPRESENTATIVES.

    The Airmen Leadership School at Luke Air Force Base, 
Arizona, building 156, shall be known and designated as the 
``John J. Rhodes Airmen Leadership School''. Any reference to 
such facility in any law, regulation, map, document, record, or 
other paper of the United States shall be considered to be a 
reference to the John J. Rhodes Airmen Leadership School.

SEC. 2893. SETTLEMENT OF CLAIM OF OAKLAND BASE REUSE AUTHORITY AND 
                    REDEVELOPMENT AGENCY.

    (a) Authority to Settle Claim.--The Secretary of the Navy 
may make a payment in the amount of $2,100,000 to the Oakland 
Base Reuse Authority and Redevelopment Agency of the City of 
Oakland, California, in settlement of Oakland Base Reuse 
Authority and Redevelopment Agency of the City of Oakland v. 
the United States, Case No. C02-4652 MHP, United States 
District Court, Northern District of California, including any 
appeal.
    (b) Release of Claim.--The payment made under subsection 
(a) shall be in full satisfaction of all claims of the Oakland 
Base Reuse Authority and Redevelopment Agency against the 
United States related to the case referred to in subsection 
(a), and the Oakland Base Reuse Authority and Redevelopment 
Agency shall give to the Secretary a release of all claims to 
18 officer housing units and related real property located at 
the former Naval Medical Center Oakland, California. The 
release shall be in a form that is satisfactory to the 
Secretary.
    (c) Source of Funds for Settlement.--To make the payment 
authorized by subsection (a), the Secretary may use--
            (1) funds in the Department of Defense Base Closure 
        Account 1990; or
            (2) the proceeds from the sale of the housing units 
        and property described in subsection (b).

SEC. 2894. REPORT ON ESTABLISHMENT OF MOBILIZATION STATION AT CAMP 
                    RIPLEY NATIONAL GUARD TRAINING CENTER, LITTLE 
                    FALLS, MINNESOTA.

    Not later than 120 days after the date of the enactment of 
this Act, the Secretary of Defense shall submit to Congress a 
report regarding the feasibility of using Camp Ripley National 
Guard Training Center in Little Falls, Minnesota, as a 
mobilization station for members of a reserve component ordered 
to active duty under any provision of law specified in section 
101(a)(13)(B) of title 10, United States Code. The report shall 
include a discussion of the actions necessary to establish the 
center as a mobilization station.

SEC. 2895. REPORT ON FEASIBILITY OF ESTABLISHMENT OF VETERANS MEMORIAL 
                    AT MARINE CORPS AIR STATION, EL TORO, CALIFORNIA.

    Not later than 30 days after the date of the enactment of 
this Act, the Secretary of the Navy shall submit to Congress a 
report on whether the anticipated future uses of the former 
Marine Corps Air Station, El Toro, California, by the City of 
Irvine, California, would permit the establishment and 
maintenance, at no cost to the United States, of a veterans 
memorial at the former installation.

SEC. 2896. SENSE OF CONGRESS REGARDING EFFECT OF MILITARY HOUSING 
                    POLICIES AND FORCE STRUCTURE AND BASING CHANGES ON 
                    LOCAL EDUCATIONAL AGENCIES.

    (a) Findings.--Congress finds the following:
            (1) There are approximately 750,000 school-aged 
        children of members of the active duty Armed Forces in 
        the United States.
            (2) Approximately 650,000 of those students are 
        currently attending public elementary or secondary 
        schools in the United States.
            (3) Changes to the military family housing policies 
        of the military departments affect both military 
        housing requirements and the number of dependent 
        children living on military installations in the United 
        States.
            (4) Proposed restationing of units of the Armed 
        Forces worldwide, including the return of a significant 
        number of members of the Armed Forces stationed 
        overseas to the United States and the Army proposal to 
        modify its force structure to establish so-called units 
        of action, will increase military housing requirements 
        at military installations in the United States and may 
        result in the need for additional educational 
        facilities at such installations and in the adjacent 
        communities.
            (5) To help provide sufficient housing for members 
        of the Armed Forces and their families, the Secretaries 
        of the military departments intend to continue to use 
        the authorities provided in subchapter IV of chapter 
        169 of title 10, United States Code, to carry out 
        privatization initiatives that will improve or replace 
        an additional 120,000 military family housing units in 
        the United States.
            (6) The Secretaries of the military departments may 
        include the construction of school facilities as one of 
        the ancillary supporting facilities authorized as part 
        of a privatization initiative carried out under such 
        subchapter.
    (b) Sense of Congress.--It is the sense of Congress that 
the Department of Defense should--
            (1) consider the effects that changes in force 
        structure and overseas stationing arrangements will 
        have on--
                    (A) military housing requirements at 
                specific military installations in the United 
                States;
                    (B) the number of school-aged military 
                dependents at those installations; and
                    (C) the need for additional educational 
                facilities to serve such dependents; and
            (2) consult with local communities and local 
        educational agencies about the best ways to address 
        such changing housing requirements and satisfy the need 
        for additional educational facilities, including using 
        the authority of subchapter IV of chapter 169 of title 
        10, United States Code, to include the construction of 
        educational facilities as one of the ancillary 
        supporting facilities authorized as part of military 
        privatization housing initiatives.

SEC. 2897. SENSE OF CONGRESS AND STUDY REGARDING MEMORIAL HONORING NON-
                    UNITED STATES CITIZENS KILLED IN THE LINE OF DUTY 
                    WHILE SERVING IN THE UNITED STATES ARMED FORCES.

    (a) Sense of Congress.--It is the sense of Congress that a 
memorial marker or monument should be designed and placed in an 
appropriate location to honor the service and sacrifice of 
individuals who, although not United States citizens, served in 
the United States Armed Forces and were killed in the line of 
duty.
    (b) Study.--The Secretary of the Army, in consultation with 
the Secretary of Veterans Affairs and the American Battle 
Monuments Commission, shall conduct a study examining the 
feasibility of placing in Arlington National Cemetery, or some 
other appropriate location, a memorial marker honoring the 
service and sacrifice of non-United States citizens killed in 
the line of duty while serving in the Armed Forces.
    (c) Content of Study.--The study required by subsection (b) 
shall include the following:
            (1) A discussion of the historical development of 
        Arlington National Cemetery.
            (2) Comprehensive information on the memorial 
        markers presently located in Arlington National 
        Cemetery.
            (3) A description of any limitations affecting the 
        ability to establish new monuments, markers, tributes, 
        or plaques in Arlington National Cemetery.
            (4) A discussion of alternative locations outside 
        of Arlington National Cemetery that have been used for 
        comparable memorial markers.
            (5) Recommendations for appropriate locations for a 
        memorial marker that may be considered.
    (d) Report and Recommendations.--Not later than April 1, 
2005, the Secretary of the Army shall submit to the Committee 
on Armed Services and the Committee on Veterans' Affairs of the 
House of Representatives and the Committee on Armed Services 
and the Committee on Veterans' Affairs of the Senate a report 
containing the results of the study required by subsection (b), 
together with any recommendations for an appropriate plan to 
honor the service of non-United States citizens killed in the 
line of duty while serving in the Armed Forces.

 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND 
                          OTHER AUTHORIZATIONS

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

          Subtitle A--National Security Programs Authorizations

Sec. 3101. National Nuclear Security Administration.
Sec. 3102. Defense environmental management.
Sec. 3103. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.

    Subtitle B--Program Authorizations, Restrictions, and Limitations

Sec. 3111. Report on requirements for Modern Pit Facility.
Sec. 3112. Two-year extension of authority for appointment of certain 
          scientific, engineering, and technical personnel.
Sec. 3113. Limited authority to carry out new projects under Facilities 
          and Infrastructure Recapitalization Program after project 
          selection deadline.
Sec. 3114. Modification of milestone and report requirements for 
          National Ignition Facility.
Sec. 3115. Modification of submittal date of annual plan for 
          stewardship, management, and certification of warheads in the 
          nuclear weapons stockpile.
Sec. 3116. Defense site acceleration completion.
Sec. 3117. Treatment of waste material.
Sec. 3118. Local stakeholder organizations for 2006 closure sites.
Sec. 3119. Report to Congress on Advanced Nuclear Weapons Concepts 
          Initiative.

                    Subtitle C--Proliferation Matters

Sec. 3131. Modification of authority to use International Nuclear 
          Materials Protection and Cooperation Program funds outside the 
          former Soviet Union.
Sec. 3132. Acceleration of removal or security of fissile materials, 
          radiological materials, and related equipment at vulnerable 
          sites worldwide.
Sec. 3133. Silk Road Initiative.
Sec. 3134. Nuclear nonproliferation fellowships for scientists employed 
          by United States and Russian Federation.
Sec. 3135. Utilization of international contributions to the elimination 
          of weapons grade plutonium production program.

                        Subtitle D--Other Matters

Sec. 3141. Indemnification of Department of Energy contractors.
Sec. 3142. Report on maintenance of retirement benefits for certain 
          workers at 2006 closure sites after closure of sites.
Sec. 3143. Report on efforts of National Nuclear Security Administration 
          to understand plutonium aging.
Sec. 3144. Support for public education in the vicinity of Los Alamos 
          National Laboratory, New Mexico.
Sec. 3145. Review of Waste Isolation Pilot Plant, New Mexico, pursuant 
          to competitive contract.
Sec. 3146. National Academy of Sciences study on management by 
          Department of Energy of certain radioactive waste streams.
Sec. 3147. Compensation of Pajarito Plateau, New Mexico, homesteaders 
          for acquisition of lands for Manhattan Project in World War 
          II.
Sec. 3148. Modification of requirements relating to conveyances and 
          transfer of certain land at Los Alamos National Laboratory, 
          New Mexico.

 Subtitle E--Energy Employees Occupational Illness Compensation Program

Sec. 3161. Contractor employee compensation.
Sec. 3162. Conforming amendments.
Sec. 3163. Technical amendments.
Sec. 3164. Transfer of funds for fiscal year 2005.
Sec. 3165. Use of Energy Employees Occupational Illness Compensation 
          Fund for certain payments to covered uranium employees.
Sec. 3166. Improvements to Subtitle B of Energy Employees Occupational 
          Illness Compensation Program Act of 2000.
Sec. 3167. Emergency Special Exposure Cohort meeting and report.
Sec. 3168. Coverage of individuals employed at atomic weapons employer 
          facilities during periods of residual contamination.
Sec. 3169. Update of report on residual contamination of facilities.
Sec. 3170. Sense of Congress on resource center for energy employees 
          under Energy Employee Occupational Illness Compensation 
          Program in western New York and western Pennsylvania region.

         Subtitle A--National Security Programs Authorizations

SEC. 3101. NATIONAL NUCLEAR SECURITY ADMINISTRATION.

    (a) Authorization of Appropriations.--Funds are hereby 
authorized to be appropriated to the Department of Energy for 
fiscal year 2005 for the activities of the National Nuclear 
Security Administration in carrying out programs necessary for 
national security in the amount of $9,082,300,000, to be 
allocated as follows:
            (1) For weapons activities, $6,592,053,000.
            (2) For defense nuclear nonproliferation 
        activities, $1,348,647,000.
            (3) For naval reactors, $797,900,000.
            (4) For the Office of the Administrator for Nuclear 
        Security, $343,700,000.
    (b) Authorization of New Plant Projects.--From funds 
referred to in subsection (a) that are available for carrying 
out plant projects, the Secretary of Energy may carry out, for 
weapons activities, the following new plant projects:
            Project 05-D-140, project engineering and design, 
        various locations, $11,600,000.
            Project 05-D-160, facilities and infrastructure 
        recapitalization program, project engineering and 
        design, various locations, $8,700,000.
            Project 05-D-170, project engineering and design, 
        safeguards and security, various locations, 
        $17,000,000.
            Project 05-D-401, production bays upgrade, Pantex 
        Plant, Amarillo, Texas, $25,100,000.
            Project 05-D-402, beryllium capability project, Y-
        12 national security complex, Oak Ridge, Tennessee, 
        $3,627,000.
            Project 05-D-601, compressed air upgrades project, 
        Y-12 national security complex, Oak Ridge, Tennessee, 
        $4,400,000.
            Project 05-D-602, power grid infrastructure 
        upgrade, Los Alamos National Laboratory, Los Alamos, 
        New Mexico, $10,000,000.
            Project 05-D-603, new master substation, Sandia 
        National Laboratories, Albuquerque, New Mexico, 
        $600,000.
            Project 05-D-701, security perimeter, Los Alamos 
        National Laboratory, Los Alamos, New Mexico, 
        $20,000,000.

SEC. 3102. DEFENSE ENVIRONMENTAL MANAGEMENT.

    Funds are hereby authorized to be appropriated to the 
Department of Energy for fiscal year 2005 for defense 
environmental management activities in carrying out programs 
necessary for national security in the amount of 
$6,957,307,000, to be allocated as follows:
            (1) For defense site acceleration completion, 
        $5,970,837,000.
            (2) For defense environmental services, 
        $986,470,000.

SEC. 3103. OTHER DEFENSE ACTIVITIES.

    Funds are hereby authorized to be appropriated to the 
Department of Energy for fiscal year 2005 for other defense 
activities in carrying out programs necessary for national 
security in the amount of $636,036,000.

SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

    Funds are hereby authorized to be appropriated to the 
Department of Energy for fiscal year 2005 for defense nuclear 
waste disposal for payment to the Nuclear Waste Fund 
established in section 302(c) of the Nuclear Waste Policy Act 
of 1982 (42 U.S.C. 10222(c)) in the amount of $120,000,000.

   Subtitle B--Program Authorizations, Restrictions, and Limitations

SEC. 3111. REPORT ON REQUIREMENTS FOR MODERN PIT FACILITY.

    (a) Report.--Not later than January 31, 2005, the 
Administrator for Nuclear Security shall submit to the 
congressional defense committees a report setting forth the 
validated pit production requirements for the Modern Pit 
Facility.
    (b) Validated Pit Production Requirements.--(1) The 
validated pit production requirements in the report under 
subsection (a) shall be established by the Administrator in 
conjunction with the Chairman of the Nuclear Weapons Council.
    (2) The validated pit production requirements shall--
            (A) include specifications regarding the total 
        number of pits per year, and the number of pits to be 
        produced per year for each weapon type, that will be 
        required to be produced in order to support the weapons 
        that will be retained in the nuclear weapons stockpile 
        pursuant to the revised nuclear weapons stockpile plan 
        submitted to the congressional defense committees as 
        specified in the joint explanatory statement to 
        accompany the report of the Committee on Conference on 
        the bill H.R. 2754 of the 108th Congress;
            (B) identify any surge capacity that may be 
        included in the annual pit production requirements; and
            (C) assume that the lifetime of any particular pit 
        type is each of 40 years, 50 years, 60 years, and 70 
        years.
    (c) Form of Report.--The report under subsection (a) shall 
be submitted in unclassified form and shall include a 
classified annex.

SEC. 3112. TWO-YEAR EXTENSION OF AUTHORITY FOR APPOINTMENT OF CERTAIN 
                    SCIENTIFIC, ENGINEERING, AND TECHNICAL PERSONNEL.

    Section 4601(c)(1) of the Atomic Energy Defense Act (50 
U.S.C. 2701(c)(1)) is amended by striking ``September 30, 
2004'' and inserting ``September 30, 2006''.

SEC. 3113. LIMITED AUTHORITY TO CARRY OUT NEW PROJECTS UNDER FACILITIES 
                    AND INFRASTRUCTURE RECAPITALIZATION PROGRAM AFTER 
                    PROJECT SELECTION DEADLINE.

    (a) Limited Authority To Carry Out New Projects.--Section 
3114(a) of the National Defense Authorization Act for Fiscal 
Year 2004 (Public Law 108-136; 117 Stat. 1744; 50 U.S.C. 2453 
note) is amended--
            (1) in the subsection caption, by striking 
        ``Deadline for'';
            (2) in paragraph (2), by striking ``No project'' 
        and inserting ``Except as provided in paragraph (3), no 
        project''; and
            (3) by adding at the end the following new 
        paragraph:
    ``(3)(A) Subject to the provisions of this paragraph, a 
project described in subparagraph (B) may be carried out under 
the Facilities and Infrastructure Recapitalization Program 
after December 31, 2004, if the Administrator approves the 
project. The Administrator may not delegate the authority to 
approve projects under the preceding sentence.
    ``(B) A project described in this subparagraph is a project 
that consists of a specific building, facility, or other 
improvement (including fences, roads, or similar improvements).
    ``(C) Funds may not be obligated or expended for a project 
under this paragraph until 60 days after the date on which the 
Administrator submits to the congressional defense committees a 
notice on the project, including a description of the project 
and the nature of the project, a statement explaining why the 
project was not included in the Facilities and Infrastructure 
Recapitalization Program under paragraph (1), and a statement 
explaining why the project was not included in any other 
program under the jurisdiction of the Administrator.
    ``(D) The total number of projects that may be carried out 
under this paragraph in any fiscal year may not exceed five 
projects.
    ``(E) The Administrator may not utilize the authority in 
this paragraph until 60 days after the later of--
            ``(i) the date of the submittal to the 
        congressional defense committees of a list of the 
        projects selected for inclusion in the Facilities and 
        Infrastructure Recapitalization Program under paragraph 
        (1); or
            ``(ii) the date of the submittal to the 
        congressional defense committees of the report required 
        by subsection (c).
    ``(F) A project may not be carried out under this paragraph 
unless the project will be completed by September 30, 2011.''.
    (b) Construction of Authority.--The amendments made by 
subsection (a) may not be construed to authorize any delay in 
either of the following:
            (1) The selection of projects for inclusion in the 
        Facilities and Infrastructure Recapitalization Program 
        under subsection (a) of section 3114 of the National 
        Defense Authorization Act for Fiscal Year 2004.
            (2) The submittal of the report required by 
        subsection (c) of such section.

SEC. 3114. MODIFICATION OF MILESTONE AND REPORT REQUIREMENTS FOR 
                    NATIONAL IGNITION FACILITY.

    (a) Notification on Milestones To Achieve Ignition.--
Subsection (a) of section 3137 of the National Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107-107; 115 
Stat. 1369) is amended by striking ``each Level I milestone and 
Level II milestone for the National Ignition Facility.'' and 
inserting the following: ``each milestone for the National 
Ignition Facility as follows:
            ``(1) Each Level I milestone.
            ``(2) Each Level II milestone.
            ``(3) Each milestone to achieve ignition.''.
    (b) Report on Failure of Timely Achievement of 
Milestones.--Subsection (b) of such section is amended by 
striking ``a Level I milestone or Level II milestone for the 
National Ignition Facility'' and inserting ``a milestone for 
the National Ignition Facility referred to in subsection (a)''.
    (c) Milestones To Achieve Ignition.--Subsection (c) of such 
section is amended to read as follows:
    ``(c) Milestones.--For purposes of this section:
            ``(1) The Level I milestones and Level II 
        milestones for the National Ignition Facility are as 
        established in the August 2000 revised National 
        Ignition Facility baseline document.
            ``(2) The milestones for the National Ignition 
        Facility to achieve ignition are such milestones (other 
        than the milestones referred to in paragraph (1)) as 
        the Administrator shall establish on any activities at 
        the National Ignition Facility that are required to 
        enable the National Ignition Facility to achieve 
        ignition and be a fully functioning user facility by 
        December 31, 2011.''.
    (d) Submittal to Congress of Milestones To Achieve 
Ignition.--Not later than January 31, 2005, the Administrator 
for Nuclear Security shall submit to the congressional defense 
committees a report setting forth the milestones of the 
National Ignition Facility to achieve ignition as established 
by the Administration under subsection (c)(2) of section 3137 
of the National Defense Authorization Act for Fiscal Year 2002, 
as amended by subsection (c) of this section. The report shall 
include--
            (1) a description of each milestone established; 
        and
            (2) a proposal for the funding to be required to 
        meet each such milestone.
    (e) Extension of Sunset.--Subsection (d) of section 3137 of 
such Act is amended by striking ``September 30, 2004'' and 
inserting ``December 31, 2011''.

SEC. 3115. MODIFICATION OF SUBMITTAL DATE OF ANNUAL PLAN FOR 
                    STEWARDSHIP, MANAGEMENT, AND CERTIFICATION OF 
                    WARHEADS IN THE NUCLEAR WEAPONS STOCKPILE.

    Section 4203(c) of the Atomic Energy Defense Act (50 U.S.C. 
2523(c)) is amended by striking ``March 15 of each year 
thereafter'' and inserting ``May 1 of each year thereafter''.

SEC. 3116. DEFENSE SITE ACCELERATION COMPLETION.

    (a) In General.--Notwithstanding the provisions of the 
Nuclear Waste Policy Act of 1982, the requirements of section 
202 of the Energy Reorganization Act of 1974, and other laws 
that define classes of radioactive waste, with respect to 
material stored at a Department of Energy site at which 
activities are regulated by a covered State pursuant to 
approved closure plans or permits issued by the State, the term 
``high-level radioactive waste'' does not include radioactive 
waste resulting from the reprocessing of spent nuclear fuel 
that the Secretary of Energy (in this section referred to as 
the ``Secretary''), in consultation with the Nuclear Regulatory 
Commission (in this section referred to as the ``Commission''), 
determines--
            (1) does not require permanent isolation in a deep 
        geologic repository for spent fuel or high-level 
        radioactive waste;
            (2) has had highly radioactive radionuclides 
        removed to the maximum extent practical; and
            (3)(A) does not exceed concentration limits for 
        Class C low-level waste as set out in section 61.55 of 
        title 10, Code of Federal Regulations, and will be 
        disposed of--
                    (i) in compliance with the performance 
                objectives set out in subpart C of part 61 of 
                title 10, Code of Federal Regulations; and
                    (ii) pursuant to a State-approved closure 
                plan or State-issued permit, authority for the 
                approval or issuance of which is conferred on 
                the State outside of this section; or
            (B) exceeds concentration limits for Class C low-
        level waste as set out in section 61.55 of title 10, 
        Code of Federal Regulations, but will be disposed of--
                    (i) in compliance with the performance 
                objectives set out in subpart C of part 61 of 
                title 10, Code of Federal Regulations;
                    (ii) pursuant to a State-approved closure 
                plan or State-issued permit, authority for the 
                approval or issuance of which is conferred on 
                the State outside of this section; and
                    (iii) pursuant to plans developed by the 
                Secretary in consultation with the Commission.
    (b) Monitoring by Nuclear Regulatory Commission.--(1) The 
Commission shall, in coordination with the covered State, 
monitor disposal actions taken by the Department of Energy 
pursuant to subparagraphs (A) and (B) of subsection (a)(3) for 
the purpose of assessing compliance with the performance 
objectives set out in subpart C of part 61 of title 10, Code of 
Federal Regulations.
    (2) If the Commission considers any disposal actions taken 
by the Department of Energy pursuant to those subparagraphs to 
be not in compliance with those performance objectives, the 
Commission shall, as soon as practicable after discovery of the 
noncompliant conditions, inform the Department of Energy, the 
covered State, and the following congressional committees:
            (A) The Committee on Armed Services, the Committee 
        on Energy and Commerce, and the Committee on 
        Appropriations of the House of Representatives.
            (B) The Committee on Armed Services, the Committee 
        on Energy and Natural Resources, the Committee on 
        Environment and Public Works, and the Committee on 
        Appropriations of the Senate.
    (3) For fiscal year 2005, the Secretary shall, from amounts 
available for defense site acceleration completion, reimburse 
the Commission for all expenses, including salaries, that the 
Commission incurs as a result of performance under subsection 
(a) and this subsection for fiscal year 2005. The Department of 
Energy and the Commission may enter into an interagency 
agreement that specifies the method of reimbursement. Amounts 
received by the Commission for performance under subsection (a) 
and this subsection may be retained and used for salaries and 
expenses associated with those activities, notwithstanding 
section 3302 of title 31, United States Code, and shall remain 
available until expended.
    (4) For fiscal years after 2005, the Commission shall 
include in the budget justification materials submitted to 
Congress in support of the Commission budget for that fiscal 
year (as submitted with the budget of the President under 
section 1105(a) of title 31, United States Code) the amounts 
required, not offset by revenues, for performance under 
subsection (a) and this subsection.
    (c) Inapplicability to Certain Materials.--Subsection (a) 
shall not apply to any material otherwise covered by that 
subsection that is transported from the covered State.
    (d) Covered States.--For purposes of this section, the 
following States are covered States:
            (1) The State of South Carolina.
            (2) The State of Idaho.
    (e) Construction.--(1) Nothing in this section shall 
impair, alter, or modify the full implementation of any Federal 
Facility Agreement and Consent Order or other applicable 
consent decree for a Department of Energy site.
    (2) Nothing in this section establishes any precedent or is 
binding on the State of Washington, the State of Oregon, or any 
other State not covered by subsection (d) for the management, 
storage, treatment, and disposition of radioactive and 
hazardous materials.
    (3) Nothing in this section amends the definition of 
``transuranic waste'' or regulations for repository disposal of 
transuranic waste pursuant to the Waste Isolation Pilot Plant 
Land Withdrawal Act or part 191 of title 40, Code of Federal 
Regulations.
    (4) Nothing in this section shall be construed to affect in 
any way the obligations of the Department of Energy to comply 
with section 4306A of the Atomic Energy Defense Act (50 U.S.C. 
2567).
    (5) Nothing in this section amends the West Valley 
Demonstration Act (42 U.S.C. 2121a note).
    (f) Judicial Review.--Judicial review shall be available in 
accordance with chapter 7 of title 5, United States Code, for 
the following:
            (1) Any determination made by the Secretary or any 
        other agency action taken by the Secretary pursuant to 
        this section.
            (2) Any failure of the Commission to carry out its 
        responsibilities under subsection (b).

SEC. 3117. TREATMENT OF WASTE MATERIAL.

    Of the amounts made available pursuant to the authorization 
of appropriations in section 3102(1) for environmental 
management for defense site acceleration completion for the 
High-Level Waste Proposal, $350,000,000 shall be available at 
specified sites for any defense site acceleration completion 
activities at those sites, as follows:
            (1) The Idaho National Engineering and 
        Environmental Laboratory, Idaho, $97,300,000.
            (2) The Savannah River Site, Aiken, South Carolina, 
        $188,600,000.
            (3) The Hanford Site, Richland, Washington, 
        $64,100,000.

SEC. 3118. LOCAL STAKEHOLDER ORGANIZATIONS FOR 2006 CLOSURE SITES.

    (a) Establishment.--(1) The Secretary of Energy shall 
establish for each Department of Energy 2006 closure site a 
local stakeholder organization having the responsibilities set 
forth in subsection (c).
    (2) The local stakeholder organization shall be established 
in consultation with interested elected officials of local 
governments in the vicinity of the closure site concerned.
    (b) Composition.--A local stakeholder organization for a 
Department of Energy 2006 closure site under subsection (a) 
shall be composed of such elected officials of local 
governments in the vicinity of the closure site concerned as 
the Secretary considers appropriate to carry out the 
responsibilities set forth in subsection (c) who agree to serve 
on the organization, or the designees of such officials.
    (c) Responsibilities.--A local stakeholder organization for 
a Department of Energy 2006 closure site under subsection (a) 
shall--
            (1) solicit and encourage public participation in 
        appropriate activities relating to the closure and 
        post-closure operations of the site;
            (2) disseminate information on the closure and 
        post-closure operations of the site to the State 
        government of the State in which the site is located, 
        local and tribal governments in the vicinity of the 
        site, and persons and entities having a stake in the 
        closure or post-closure operations of the site;
            (3) transmit to appropriate officers and employees 
        of the Department of Energy questions and concerns of 
        governments, persons, and entities referred to 
        paragraph (2) on the closure and post-closure 
        operations of the site; and
            (4) perform such other duties as the Secretary and 
        the local stakeholder organization jointly determine 
        appropriate to assist the Secretary in meeting post-
        closure obligations of the Department at the site.
    (d) Deadline for Establishment.--The local stakeholder 
organization for a Department of Energy 2006 closure site shall 
be established not later than six months before the closure of 
the site.
    (e) Department of Energy  2006 Closure Site Defined.--In 
this section, the term ``Department of Energy 2006 closure 
site'' means the following:
            (1) The Rocky Flats Environmental Technology Site, 
        Colorado.
            (2) The Fernald Plant, Ohio.
            (3) The Mound Plant, Ohio.

SEC. 3119. REPORT TO CONGRESS ON ADVANCED NUCLEAR WEAPONS CONCEPTS 
                    INITIATIVE.

    (a) Report Required.--Not later than March 1, 2005, the 
Administrator for Nuclear Security shall submit to the 
congressional defense committees a detailed report on the 
planned activities for studies under the Advanced Nuclear 
Weapons Concepts Initiative for fiscal year 2005.
    (b) Form of Report.--The report under subsection (a) shall 
be submitted in unclassified form, but may include a classified 
annex.

                   Subtitle C--Proliferation Matters

SEC. 3131. MODIFICATION OF AUTHORITY TO USE INTERNATIONAL NUCLEAR 
                    MATERIALS PROTECTION AND COOPERATION PROGRAM FUNDS 
                    OUTSIDE THE FORMER SOVIET UNION.

    (a) Applicability of Authority Limited to Projects Not 
Previously Authorized.--Subsection (a) of section 3124 of the 
National Defense Authorization Act for Fiscal Year 2004 (Public 
Law 108-136; 117 Stat. 1747) is amended by inserting ``that has 
not previously been authorized by Congress'' after ``states of 
the former Soviet Union''.
    (b) Repeal of Limitation on Total Amount of Obligation.--
Such section is further amended--
            (1) by striking subsection (c); and
            (2) by redesignating subsections (d), (e), and (f) 
        as subsections (c), (d), and (e), respectively.
    (c) Applicability Beyond Fiscal Year 2004.--Subsection (e) 
of such section (as redesignated by subsection (b)) is amended 
by striking ``the funds appropriated pursuant to the 
authorization of appropriations in section 3101(a)(2) for such 
program'' and inserting ``the funds appropriated pursuant to an 
authorization of appropriations for the International Nuclear 
Materials Protection and Cooperation Program''.

SEC. 3132. ACCELERATION OF REMOVAL OR SECURITY OF FISSILE MATERIALS, 
                    RADIOLOGICAL MATERIALS, AND RELATED EQUIPMENT AT 
                    VULNERABLE SITES WORLDWIDE.

    (a) Sense of Congress.--(1) It is the sense of Congress 
that the security, including the rapid removal or secure 
storage, of high-risk, proliferation-attractive fissile 
materials, radiological materials, and related equipment at 
vulnerable sites worldwide should be a top priority among the 
activities to achieve the national security of the United 
States.
    (2) It is the sense of Congress that the President may 
establish in the Department of Energy a task force to be known 
as the Task Force on Nuclear Materials to carry out the program 
authorized by subsection (b).
    (b) Program Authorized.--The Secretary of Energy may carry 
out a program to undertake an accelerated, comprehensive 
worldwide effort to mitigate the threats posed by high-risk, 
proliferation-attractive fissile materials, radiological 
materials, and related equipment located at sites potentially 
vulnerable to theft or diversion.
    (c) Program Elements.--(1) Activities under the program 
under subsection (b) may include the following:
            (A) Accelerated efforts to secure, remove, or 
        eliminate proliferation-attractive fissile materials or 
        radiological materials in research reactors, other 
        reactors, and other facilities worldwide.
            (B) Arrangements for the secure shipment of 
        proliferation-attractive fissile materials, 
        radiological materials, and related equipment to other 
        countries willing to accept such materials and 
        equipment, or to the United States if such countries 
        cannot be identified, and the provision of secure 
        storage or disposition of such materials and equipment 
        following shipment.
            (C) The transportation of proliferation-attractive 
        fissile materials, radiological materials, and related 
        equipment from sites identified as proliferation risks 
        to secure facilities in other countries or in the 
        United States.
            (D) The processing and packaging of proliferation-
        attractive fissile materials, radiological materials, 
        and related equipment in accordance with required 
        standards for transport, storage, and disposition.
            (E) The provision of interim security upgrades for 
        vulnerable, proliferation-attractive fissile materials, 
        radiological materials, and related equipment pending 
        their removal from their current sites.
            (F) The utilization of funds to upgrade security 
        and accounting at sites where proliferation-attractive 
        fissile materials or radiological materials will remain 
        for an extended period of time in order to ensure that 
        such materials are secure against plausible potential 
        threats and will remain so in the future.
            (G) The management of proliferation-attractive 
        fissile materials, radiological materials, and related 
        equipment at secure facilities.
            (H) Actions to ensure that security, including 
        security upgrades at sites and facilities for the 
        storage or disposition of proliferation-attractive 
        fissile materials, radiological materials, and related 
        equipment, continues to function as intended.
            (I) The provision of technical support to the 
        International Atomic Energy Agency (IAEA), other 
        countries, and other entities to facilitate removal of, 
        and security upgrades to facilities that contain, 
        proliferation-attractive fissile materials, 
        radiological materials, and related equipment 
        worldwide.
            (J) The development of alternative fuels and 
        irradiation targets based on low-enriched uranium to 
        convert research or other reactors fueled by highly-
        enriched uranium to such alternative fuels, as well as 
        the conversion of reactors and irradiation targets 
        employing highly-enriched uranium to employment of such 
        alternative fuels and targets.
            (K) Accelerated actions for the blend down of 
        highly-enriched uranium to low-enriched uranium.
            (L) The provision of assistance in the closure and 
        decommissioning of sites identified as presenting risks 
        of proliferation of proliferation-attractive fissile 
        materials, radiological materials, and related 
        equipment.
            (M) Programs to--
                    (i) assist in the placement of employees 
                displaced as a result of actions pursuant to 
                the program in enterprises not representing a 
                proliferation threat; and
                    (ii) convert sites identified as presenting 
                risks of proliferation regarding proliferation-
                attractive fissile materials, radiological 
                materials, and related equipment to purposes 
                not representing a proliferation threat to the 
                extent necessary to eliminate the proliferation 
                threat.
    (2) The Secretary of Energy shall, in coordination with the 
Secretary of State, carry out the program in consultation with, 
and with the assistance of, appropriate departments, agencies, 
and other entities of the United States Government.
    (3) The Secretary of Energy shall, with the concurrence of 
the Secretary of State, carry out activities under the program 
in collaboration with such foreign governments, non-
governmental organizations, and other international entities as 
the Secretary of Energy considers appropriate for the program.
    (d) Reports.--(1) Not later than March 15, 2005, the 
Secretary of Energy shall submit to Congress a classified 
interim report on the program under subsection (b).
    (2) Not later than January 1, 2006, the Secretary shall 
submit to Congress a classified final report on the program 
under subsection (b) that includes the following:
            (A) A survey by the Secretary of the facilities and 
        sites worldwide that contain proliferation-attractive 
        fissile materials, radiological materials, or related 
        equipment.
            (B) A list of sites determined by the Secretary to 
        be of the highest priority, taking into account risk of 
        theft from such sites, for removal or security of 
        proliferation-attractive fissile materials, 
        radiological materials, or related equipment, organized 
        by level of priority.
            (C) A plan, including activities under the program 
        under this section, for the removal, security, or both 
        of proliferation-attractive fissile materials, 
        radiological materials, or related equipment at 
        vulnerable facilities and sites worldwide, including 
        measurable milestones, metrics, and estimated costs for 
        the implementation of the plan.
    (3) A summary of each report under this subsection shall 
also be submitted to Congress in unclassified form.
    (e) Funding.--Amounts authorized to be appropriated to the 
Secretary of Energy for defense nuclear nonproliferation 
activities shall be available for purposes of the program under 
this section.
    (f) Definitions.--In this section:
            (1) The term ``fissile materials'' means plutonium, 
        highly-enriched uranium, or other material capable of 
        sustaining an explosive nuclear chain reaction, 
        including irradiated items containing such materials if 
        the radiation field from such items is not sufficient 
        to prevent the theft or misuse of such items.
            (2) The term ``radiological materials'' includes 
        Americium-241, Californium-252, Cesium-137, Cobalt-60, 
        Iridium-192, Plutonium-238, Radium-226, Strontium-90, 
        Curium-244, and irradiated items containing such 
        materials, or other materials designated by the 
        Secretary of Energy for purposes of this paragraph.
            (3) The term ``related equipment'' includes 
        equipment useful for enrichment of uranium in the 
        isotope 235 and for extraction of fissile materials 
        from irradiated fuel rods and other equipment 
        designated by the Secretary of Energy for purposes of 
        this section.
            (4) The term ``highly-enriched uranium'' means 
        uranium enriched to or above 20 percent in the isotope 
        235.
            (5) The term ``low-enriched uranium'' means uranium 
        enriched below 20 percent in the isotope 235.
            (6) The term ``proliferation-attractive'', in the 
        case of fissile materials and radiological materials, 
        means quantities and types of such materials that are 
        determined by the Secretary of Energy to present a 
        significant risk to the national security of the United 
        States if diverted to a use relating to proliferation.

SEC. 3133. SILK ROAD INITIATIVE.

    (a) Program Authorized.--(1) The Secretary of Energy may 
carry out a program, to be known as the Silk Road Initiative, 
to promote non-weapons-related employment opportunities for 
scientists, engineers, and technicians formerly engaged in 
activities to develop and produce weapons of mass destruction 
in Silk Road nations. The program should--
            (A) incorporate best practices under the 
        Initiatives for Proliferation Prevention program; and
            (B) facilitate commercial partnerships between 
        private entities in the United States and scientists, 
        engineers, and technicians in the Silk Road nations.
    (2) Before implementing the program with respect to 
multiple Silk Road nations, the Secretary of Energy shall carry 
out a pilot program with respect to one Silk Road nation 
selected by the Secretary. It is the sense of Congress that the 
Secretary should select the Republic of Georgia.
    (b) Silk Road Nations Defined.--In this section, the Silk 
Road nations are Armenia, Azerbaijan, the Republic of Georgia, 
Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and 
Uzbekistan.
    (c) Funding.--Of the funds authorized to be appropriated to 
the Department of Energy for nonproliferation and international 
security for fiscal year 2005, up to $10,000,000 may be used to 
carry out this section.

SEC. 3134. NUCLEAR NONPROLIFERATION FELLOWSHIPS FOR SCIENTISTS EMPLOYED 
                    BY UNITED STATES AND RUSSIAN FEDERATION.

    (a) In General.--(1) From amounts made available to carry 
out this section, the Administrator for Nuclear Security may 
carry out a program under which the Administrator awards, to 
scientists employed at nonproliferation research laboratories 
of the Russian Federation and the United States, international 
exchange fellowships, to be known as Nuclear Nonproliferation 
Fellowships, in the nuclear nonproliferation sciences.
    (2) The purpose of the program shall be to provide 
opportunities for advancement in the nuclear nonproliferation 
sciences to scientists who, as demonstrated by their academic 
or professional achievements, show particular promise of making 
significant contributions in those sciences.
    (3) A fellowship awarded to a scientist under the program 
shall be for collaborative study and training or advanced 
research at--
            (A) a nonproliferation research laboratory of the 
        Russian Federation, in the case of a scientist employed 
        at a nonproliferation research laboratory of the United 
        States; and
            (B) a nonproliferation research laboratory of the 
        United States, in the case of a scientist employed at a 
        nonproliferation research laboratory of the Russian 
        Federation.
    (4) The duration of a fellowship under the program may not 
exceed two years, except that the Administrator may provide for 
a longer duration in an individual case to the extent warranted 
by extraordinary circumstances, as determined by the 
Administrator.
    (5) In a calendar year, the Administrator may not award 
more than--
            (A) one fellowship to a scientist employed at a 
        nonproliferation research laboratory of the Russian 
        Federation; and
            (B) one fellowship to a scientist employed at a 
        nonproliferation research laboratory of the United 
        States.
    (6) A fellowship under the program shall include--
            (A) travel expenses; and
            (B) any other expenses that the Administrator 
        considers appropriate, such as room and board.
    (b) Definitions.--In this section:
            (1) The term ``nonproliferation research 
        laboratory'' means, with respect to a country, a 
        national laboratory of that country at which research 
        in the nuclear nonproliferation sciences is carried 
        out.
            (2) The term ``nuclear nonproliferation sciences'' 
        means bodies of scientific knowledge relevant to 
        developing or advancing the means to prevent or impede 
        the proliferation of nuclear weaponry.
            (3) The term ``scientist'' means an individual who 
        has a degree from an institution of higher education in 
        a science that has practical application in the nuclear 
        nonproliferation sciences.
    (c) Funding.--Amounts available to the Department of Energy 
for defense nuclear nonproliferation activities shall be 
available for the fellowships authorized by subsection (a).

SEC. 3135. UTILIZATION OF INTERNATIONAL CONTRIBUTIONS TO THE 
                    ELIMINATION OF WEAPONS GRADE PLUTONIUM PRODUCTION 
                    PROGRAM.

    Section 3151 of the Bob Stump National Defense 
Authorization Act for Fiscal Year 2003 (Public Law 107-314; 116 
Stat. 2736; 22 U.S.C. 5952 note) is amended by adding at the 
end the following new subsection:
    ``(e) International Participation in Program.--(1) In order 
to achieve international participation in the program referred 
to in subsection (a), the Secretary of Energy may, in 
consultation with the Secretary of State, enter into one or 
more agreements with any person, foreign government, or other 
international organization that the Secretary considers 
appropriate for the contribution of funds by such person, 
government, or organization for purposes of the program.
    ``(2) Notwithstanding section 3302 of title 31, United 
States Code, and subject to paragraphs (3) and (4), the 
Secretary may retain and utilize any amounts contributed by a 
person, government, or organization under an agreement under 
paragraph (1) for purposes of the program without further 
appropriation and without fiscal year limitation.
    ``(3) The Secretary may not utilize under paragraph (2) any 
amount contributed under an agreement under paragraph (1) until 
30 days after the date on which the Secretary notifies the 
congressional defense committees of the intent to utilize such 
amount, including the source of such amount and the proposed 
purpose for which such amount will be utilized.
    ``(4) If any amount contributed under paragraph (1) has not 
been utilized within five years of receipt under that 
paragraph, the Secretary shall return such amount to the 
person, government, or organization contributing such amount 
under that paragraph.
    ``(5) Not later than 30 days after the receipt of any 
amount contributed under paragraph (1), the Secretary shall 
submit to the congressional defense committees a notice of the 
receipt of such amount.
    ``(6) Not later than October 31 each year, the Secretary 
shall submit to the congressional defense committees a report 
on the receipt and utilization of amounts under this subsection 
during the preceding fiscal year. Each report for a fiscal year 
shall set forth--
            ``(A) a statement of any amounts received under 
        this subsection, including the source of each such 
        amount; and
            ``(B) a statement of any amounts utilized under 
        this subsection, including the purpose for which such 
        amounts were utilized.
    ``(7) The authority of the Secretary to accept and utilize 
amounts under this subsection shall expire on December 31, 
2011.''.

                       Subtitle D--Other Matters

SEC. 3141. INDEMNIFICATION OF DEPARTMENT OF ENERGY CONTRACTORS.

    Section 170 d.(1)(A) of the Atomic Energy Act of 1954 (42 
U.S.C. 2210(d)(1)(A)) is amended by striking ``until December 
31, 2004'' and inserting ``until December 31, 2006''.

SEC. 3142. REPORT ON MAINTENANCE OF RETIREMENT BENEFITS FOR CERTAIN 
                    WORKERS AT 2006 CLOSURE SITES AFTER CLOSURE OF 
                    SITES.

    (a) Report Required.--Not later than 60 days after the date 
of the enactment of this Act, the Assistant Secretary of Energy 
for Environmental Management shall submit to the Secretary of 
Energy a report on the maintenance of retirement benefits for 
workers at Department of Energy 2006 closure sites after 
closure of such sites.
    (b) Elements.--The report under subsection (a) shall 
include the following:
            (1) The number of workers at Department of Energy 
        2006 closure sites who would be eligible for regular or 
        early retirement benefits if such sites close on or 
        after their target completion dates, but who would not 
        be eligible for regular or early retirement benefits if 
        such sites close before their target completion dates 
        (by calendar quarter).
            (2) The cost of providing regular or full 
        retirement benefits, after the closure of Department of 
        Energy 2006 closure sites, to workers at such sites who 
        would fail to qualify for regular or early retirement 
        benefits because of the early closure of such sites (by 
        calendar quarter).
            (3) The impact on collective-bargaining agreements 
        and any applicable retirement benefit plan documents 
        covering workers at Department of Energy 2006 closure 
        sites of providing regular or early retirement benefits 
        as set forth herein.
    (c) Transmittal to Congress.--Not later than 30 days after 
receiving the report under subsection (a), the Secretary shall 
transmit the report to Congress, together with such 
recommendations, including recommendations for legislative 
action, as the Secretary considers appropriate.
    (d) Definitions.--In this section:
            (1) The term ``Department of Energy 2006 closure 
        site'' means the following:
                    (A) The Rocky Flats Environmental 
                Technology Site, Colorado.
                    (B) The Fernald Plant, Ohio.
                    (C) The Mound Plant, Ohio.
            (2) The term ``worker'' means any employee who is 
        employed by contract or first or second tier 
        subcontract to perform cleanup, security, or 
        administrative duties or responsibilities at a 
        Department of Energy 2006 closure site.
            (3) The term ``retirement benefits'' means pension, 
        health, and other similar post-retirement benefits.
            (4) The term ``target completion date'', with 
        respect to a Department of Energy 2006 closure site, 
        means the physical completion date specified in the 
        site contracts.

SEC. 3143. REPORT ON EFFORTS OF NATIONAL NUCLEAR SECURITY 
                    ADMINISTRATION TO UNDERSTAND PLUTONIUM AGING.

    (a) Study.--(1) The Administrator for Nuclear Security 
shall enter into a contract with a Federally Funded Research 
and Development Center (FFRDC) providing for a study to assess 
the efforts of the National Nuclear Security Administration to 
understand the aging of plutonium in nuclear weapons.
    (2) The Administrator shall make available to the FFRDC 
contractor under this subsection all information that is 
necessary for the contractor to successfully complete a 
meaningful study on a timely basis.
    (b) Report Required.--(1) Not later than two years after 
the date of the enactment of this Act, the Administrator shall 
submit to Congress a report on the findings of the study 
required by subsection (a)(1).
    (2) The report shall include the recommendations of the 
study for improving the knowledge, understanding, and 
application of the fundamental and applied sciences related to 
the study of plutonium aging.
    (3) The report shall be submitted in unclassified form, but 
may include a classified annex.

SEC. 3144. SUPPORT FOR PUBLIC EDUCATION IN THE VICINITY OF LOS ALAMOS 
                    NATIONAL LABORATORY, NEW MEXICO.

    The Secretary of Energy shall require that the primary 
management and operations contract for Los Alamos National 
Laboratory, New Mexico, that involves Laboratory operations 
after September 30, 2005, shall contain terms requiring the 
contractor under such contract to provide support to the Los 
Alamos Public School District, New Mexico, for the elementary 
and secondary education of students in the school district in 
the amount of $8,000,000 in each fiscal year.

SEC. 3145. REVIEW OF WASTE ISOLATION PILOT PLANT, NEW MEXICO, PURSUANT 
                    TO COMPETITIVE CONTRACT.

    (a) Contract Requirement.--The Secretary of Energy shall 
use competitive procedures to enter into a contract to conduct 
independent reviews and evaluations of the design, 
construction, and operations of the Waste Isolation Pilot Plant 
in New Mexico (in this section referred to as the ``WIPP'') as 
they relate to the protection of the public health and safety 
and the environment. The contract shall be for a period of one 
year, beginning on October 1, 2004, and shall be renewable for 
four additional one-year periods with the consent of the 
contractor and subject to the authorization and appropriation 
of funds for such purpose.
    (b) Content of Contract.--A contract entered into under 
subsection (a) shall require the following:
            (1) The contractor shall appoint a Director and 
        Deputy Director, who shall be scientists of national 
        eminence in the field of nuclear waste disposal, shall 
        be free from any biases related to the activities of 
        the WIPP, and shall be widely known for their integrity 
        and scientific expertise.
            (2) The Director shall appoint staff. The 
        professional staff shall consist of scientists and 
        engineers of recognized integrity and scientific 
        expertise who represent scientific and engineering 
        disciplines needed for a thorough review of the WIPP, 
        including disciplines such as geology, hydrology, 
        health physics, environmental engineering, probability 
        risk analysis, mining engineering, and radiation 
        chemistry. The disciplines represented in the staff 
        shall change as may be necessary to meet changed needs 
        in carrying out the contract for expertise in any 
        certain scientific or engineering discipline. 
        Scientists and engineers employed under the contract 
        shall have qualifications and experience equivalent to 
        the qualifications and experience required for 
        scientists and engineers employed by the Federal 
        Government in grades GS-13 through GS-15.
            (3) Scientists and engineers employed under the 
        contract shall have an appropriate support staff.
            (4) The Director and Deputy Director shall each be 
        appointed for a term of 5 years, subject to contract 
        renewal, and may be removed only for misconduct or 
        incompetence. The staff shall be appointed for such 
        terms as the Director considers appropriate.
            (5) The rates of pay of professional staff and the 
        procedures for increasing the rates of pay of 
        professional staff shall be equivalent to those rates 
        and procedures provided for the General Schedule pay 
        system under chapter 53 of title 5, United States Code.
            (6) The results of reviews and evaluations carried 
        out under the contract shall be published.
    (c) Administration.--The contractor shall establish general 
policies and guidelines to be used by the Director in carrying 
out the work under the contract.

SEC. 3146. NATIONAL ACADEMY OF SCIENCES STUDY ON MANAGEMENT BY 
                    DEPARTMENT OF ENERGY OF CERTAIN RADIOACTIVE WASTE 
                    STREAMS.

    (a) Study Required.--The Secretary of Energy shall, as soon 
as practicable, enter into an arrangement with the National 
Research Council of the National Academy of Sciences to carry 
out a study of the plans of the Department of Energy to manage 
those waste streams specified in subsection (b) that--
            (1) exceed the concentration limits for Class C 
        low-level waste as set out in section 61.55 of title 
        10, Code of Federal Regulations; and
            (2) the Department plans to dispose of on the sites 
        specified in subsection (b)(3) rather than in a 
        repository for spent nuclear fuel and high-level waste.
    (b) Covered Waste Streams.--The waste streams referred to 
in subsection (a) are the streams of waste, from reprocessed 
spent nuclear fuel, that--
            (1) exceed the concentration limits for Class C 
        low-level waste as set out in section 61.55 of title 
        10, Code of Federal Regulations;
            (2) the Department does not plan for disposal in a 
        repository for spent nuclear fuel and high-level waste; 
        and
            (3) are stored in tanks at the following sites:
                    (A) The Savannah River Site, South 
                Carolina.
                    (B) The Idaho National Engineering 
                Laboratory, Idaho.
                    (C) The Hanford Reservation, Washington.
    (c) Matters Included.--The study required by subsection (a) 
shall evaluate--
            (1) the state of the Department's understanding of 
        the physical, chemical, and radiological 
        characteristics of the waste referred to in subsection 
        (b), including an assessment of data uncertainties;
            (2) any actions additional to those contained in 
        current plans that the Department should consider to 
        ensure that the plans referred to in subsection (a) 
        will comply with the performance objectives of part 61 
        of title 10, Code of Federal Regulations;
            (3) the adequacy of the Department's plans for 
        monitoring disposal sites and the surrounding 
        environment to verify compliance with those performance 
        objectives;
            (4) existing technology alternatives to the plans 
        referred to in subsection (a) and, for each such 
        alternative, an assessment of the cost, consequences 
        for worker safety, and long-term consequences for 
        environmental and human health;
            (5) any technology gaps that exist to effect 
        improved efficiency in removal and treatment of waste 
        from the tanks referred to in subsection (b)(3); and
            (6) any other matters that the National Research 
        Council considers appropriate and directly related to 
        the subject matter of the study.
    (d) Recommendations.--In carrying out the study required by 
subsection (a), the National Research Council may develop 
recommendations it considers appropriate and directly related 
to the subject matter of the study. It is the sense of Congress 
that the National Research Council should develop 
recommendations on--
            (1) improvements to the scientific and technical 
        basis for managing the waste covered by the study, 
        including the identification of technology alternatives 
        and mitigation of technology gaps; and
            (2) the best means of monitoring any on-site 
        disposal sites from the waste streams referred to in 
        subsection (b), to include soil, groundwater, and 
        surface water monitoring.
    (e) Reports.--(1) The National Research Council shall 
submit to the Secretary of Energy and the congressional 
committees described in paragraph (2)--
            (A) not later than six months after entering into 
        the arrangement required by subsection (a), an interim 
        report on the study that, with respect to the 
        requirements of subsection (c)(2), specifically 
        addresses any additional actions the Department should 
        consider to ensure that the Department's plans for the 
        Savannah River Site, including plans for grouting of 
        tanks, will comply with the performance objectives 
        referred to in that subsection in a more effective 
        manner; and
            (B) not later than one year after entering into the 
        arrangement required by subsection (a), a final report 
        on the study that includes all findings, conclusions, 
        and recommendations.
    (2) The congressional committees referred to in paragraph 
(1) are as follows:
            (A) The Committee on Appropriations, Committee on 
        Armed Services, and Committee on Energy and Commerce of 
        the House of Representatives.
            (B) The Committee on Appropriations, Committee on 
        Armed Services, Committee on Energy and Natural 
        Resources, and Committee on Environment and Public 
        Works of the Senate.
    (f) Provision of Information.--The Secretary of Energy 
shall, in a timely manner, make available to the National 
Research Council all information that the National Research 
Council considers necessary to carry out its responsibilities 
under this section.
    (g) Rule of Construction.--This section shall not be 
construed to affect section 3116.
    (h) Funding.--Of the amounts made available to the 
Department of Energy pursuant to the authorization of 
appropriations in section 3102, $1,500,000 shall be available 
only for carrying out the study required by this section.

SEC. 3147. COMPENSATION OF PAJARITO PLATEAU, NEW MEXICO, HOMESTEADERS 
                    FOR ACQUISITION OF LANDS FOR MANHATTAN PROJECT IN 
                    WORLD WAR II.

    (a) Establishment of Compensation Fund.--There is 
established in the Treasury of the United States a fund to be 
known as the Pajarito Plateau Homesteaders Compensation Fund 
(in this section referred to as the ``Fund''). The Fund shall 
be dedicated to the settlement of the two lawsuits in the 
United States District Court for the District of New Mexico 
consolidated as Civ. No. 00-60.
    (b) Elements of Fund.--The Fund shall consist of the 
following:
            (1) Amounts available for deposit in the Fund under 
        subsection (j).
            (2) Interest earned on amounts in the Fund under 
        subsection (g).
    (c) Use of Fund.--The Fund shall be available for the 
settlement of the consolidated lawsuits in accordance with the 
following requirements:
            (1) The settlement shall be subject to preliminary 
        and final approval by the Court in accordance with rule 
        23(e) of the Federal Rules of Civil Procedure.
            (2) The Court shall appoint a special master in 
        accordance with rule 53 of the Federal Rules of Civil 
        Procedure to--
                    (A) identify class members;
                    (B) receive claims from class members so 
                identified;
                    (C) determine in accordance with subsection 
                (d) eligible claimants from among class members 
                so identified;
                    (D) resolve contests, if any, among 
                claimants with respect to a particular eligible 
                tract, regarding the disbursement of monies in 
                the Fund with respect to that eligible tract; 
                and
                    (E) address such other matters as the Court 
                may order.
            (3) Lead counsel for claimants shall provide 
        evidence to the special master to assist the special 
        master in the duties set forth in paragraph (2).
            (4) If more than 10 percent of the class members 
        object to the settlement, or the Court fails to approve 
        the settlement--
                    (A) the Fund shall not serve as the basis 
                for the settlement of the consolidated lawsuits 
                and the provisions of this section shall have 
                no further force or effect; and
                    (B) amounts in the Fund shall not be 
                disbursed, but shall be retained in the 
                Treasury as miscellaneous receipts.
            (5) The Court may award compensation for the 
        special master and attorney fees and expenses from the 
        Fund pursuant to rule 23 of the Federal Rules of Civil 
        Procedure, except that the award of attorney fees may 
        not exceed 20 percent of the Fund and the award of 
        expenses may not exceed 2 percent of the Fund. Any 
        compensation and attorney fees and expenses so paid 
        shall be paid from the Fund by the Court before 
        distribution of the amount in the Fund to eligible 
        claimants entitled thereto.
            (6) The Fund shall be available to pay settlement 
        awards in accordance with the following:
                    (A) The balance of the amount of the Fund 
                that is available for disbursement after any 
                award of attorney fees and expenses under 
                paragraph (5) shall be allocated proportionally 
                by eligible tract according to its acreage as 
                compared with all eligible tracts.
                    (B) The allocation for each eligible tract 
                shall be allocated pro rata among all eligible 
                claimants having an interest in such eligible 
                tract according to the extent of their interest 
                in such eligible tract, as determined under the 
                laws of the State of New Mexico.
            (7) The special master shall disburse the allocated 
        amounts from the Fund after approval by the Court.
            (8) Any amounts available for disbursement with 
        respect to an eligible tract that are not awarded to 
        eligible claimants with respect to that tract shall be 
        retained in the Treasury as miscellaneous receipts.
    (d) Eligible Claimants.--(1) For purposes of this section, 
an eligible claimant is any class member determined by the 
Court, by a preponderance of evidence, to be a person or entity 
who held a fee simple ownership in an eligible tract at the 
time of its acquisition by the United States during World War 
II for use in the Manhattan Project, or the heir, successor in 
interest, assignee, or beneficiary of such a person or entity.
    (2) The status of a person or entity as an heir, successor 
in interest, assignee, or beneficiary for purposes of this 
subsection shall be determined under the laws of the State of 
New Mexico, including the descent and distribution law of the 
State of New Mexico.
    (e) Full Resolution of Claims Against United States.--(1) 
The acceptance of a disbursement from the Fund by an eligible 
claimant under this section shall constitute a final and 
complete release of the defendants in the consolidated lawsuits 
with respect to such eligible claimant, and shall be in full 
satisfaction of any and all claims of such eligible claimant 
against the United States arising out of acts described in the 
consolidated lawsuits.
    (2) Upon the disbursement of the amount in the Fund to 
eligible claimants entitled thereto under this section, the 
Court shall, subject to the provisions of rule 23(e) of the 
Federal Rules of Civil Procedure, enter a final judgment 
dismissing with prejudice the consolidated lawsuits and all 
claims and potential claims on matters covered by the 
consolidated lawsuits.
    (f) Compensation Limited to Amounts in Fund.--(1) An 
eligible claimant may be paid under this section only from 
amounts in the Fund.
    (2) Nothing in this section shall authorize the payment to 
a class member by the United States Government of any amount 
authorized by this section from any source other than the Fund.
    (g) Investment of Fund.--(1) The Secretary of the Treasury 
shall, in accordance with the requirements of section 9702 of 
title 31, United States Code, and the provisions of this 
subsection, direct the form and manner by which the Fund shall 
be safeguarded and invested so as to maximize its safety while 
earning a return comparable to other common funds in which the 
United States Treasury is the source of payment.
    (2) Interest on the amount deposited in the Fund shall 
accrue from the date of the enactment of the Act appropriating 
amounts for deposit in the Fund until the date on which the 
Secretary of the Treasury disburses the amount in the Fund to 
eligible claimants who are entitled thereto under subsection 
(c).
    (h) Preservation of Records.--(1) All documents, personal 
testimony, and other records created or received by the Court 
in the consolidated lawsuits shall be kept and maintained by 
the Archivist of the United States, who shall preserve such 
documents, testimony, and records in the National Archives of 
the United States.
    (2) The Archivist shall make available to the public the 
materials kept and maintained under paragraph (1).
    (i) Definitions.--In this section:
            (1) The term ``Court'' means the United States 
        District Court for the District of New Mexico having 
        jurisdiction over the consolidated lawsuits.
            (2) The term ``consolidated lawsuits'' means the 
        two lawsuits in the United States District Court for 
        the District of New Mexico consolidated as Civ. No. 00-
        60.
            (3)(A) The term ``eligible tract'' means private 
        real property located on the Pajarito Plateau of what 
        is now Los Alamos County, New Mexico, that was acquired 
        by the United States during World War II for use in the 
        Manhattan Project and which is the subject of the 
        consolidated lawsuits.
            (B) The term does not include lands of the Los 
        Alamos Ranch School and of the A.M. Ross Estate (doing 
        business as Anchor Ranch).
            (4) The term ``class member'' means the following:
                    (A) Any person or entity who claims to have 
                held a fee simple ownership in an eligible 
                tract at the time of its acquisition by the 
                United States during World War II for use in 
                the Manhattan Project.
                    (B) Any person or entity claiming to be the 
                heir, successor in interest, assignee, or 
                beneficiary of a person or entity who held a 
                fee simple ownership in an eligible tract at 
                the time of its acquisition by the United 
                States during World War II for use in the 
                Manhattan Project.
    (j) Funding.--Of the amount authorized to be appropriated 
by section 3101(a)(4) for the National Nuclear Security 
Administration for the Office of the Administrator for Nuclear 
Security, $10,000,000 shall be available for deposit in the 
Fund under subsection (b)(1).

SEC. 3148. MODIFICATION OF REQUIREMENTS RELATING TO CONVEYANCES AND 
                    TRANSFER OF CERTAIN LAND AT LOS ALAMOS NATIONAL 
                    LABORATORY, NEW MEXICO.

    Section 632(a) of Public Law 105-119 (111 Stat. 2523; 42 
U.S.C. 2391 note) is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``except as provided in 
                paragraph (2),'' before ``convey''; and
                    (B) by striking ``and'' at the end;
            (2) by redesignating paragraph (2) as paragraph 
        (3); and
            (3) by inserting after paragraph (1) the following 
        new paragraph (2):
            ``(2) notwithstanding paragraph (1) and the 
        agreement under subsection (e), convey, without 
        consideration, to the Board of Education of the Los 
        Alamos Public Schools, New Mexico, within the County, 
        fee title to the parcels of land identified by the 
        Department of Energy as Parcel A-8 and Parcel A-15-1 
        that are currently located in Technical Area-21 of Los 
        Alamos National Laboratory upon the entry of Los Alamos 
        Public Schools and the County into an agreement for the 
        use of the parcel of land identified as Parcel A-8; 
        and''.

 Subtitle E--Energy Employees Occupational Illness Compensation Program

SEC. 3161. CONTRACTOR EMPLOYEE COMPENSATION.

    The Energy Employees Occupational Illness Compensation 
Program Act of 2000 (title XXXVI of the Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001 (as 
enacted into law by Public Law 106-398)) is amended by adding 
after subtitle D (42 U.S.C. 7385o) the following new title:

             ``Subtitle E--Contractor Employee Compensation

``SEC. 3671. DEFINITIONS.

    ``In this subtitle:
            ``(1) The term `covered DOE contractor employee' 
        means any Department of Energy contractor employee 
        determined under section 3675 to have contracted a 
        covered illness through exposure at a Department of 
        Energy facility.
            ``(2) The term `covered illness' means an illness 
        or death resulting from exposure to a toxic substance.
            ``(3) The term `Secretary' means the Secretary of 
        Labor.

``SEC. 3672. COMPENSATION TO BE PROVIDED.

    ``Subject to the other provisions of this subtitle:
            ``(1) Contractor employees.--A covered DOE 
        contractor employee shall receive contractor employee 
        compensation under this subtitle in accordance with 
        section 3673.
            ``(2) Survivors.--After the death of a covered DOE 
        contractor employee, compensation referred to in 
        paragraph (1) shall not be paid. Instead, the survivor 
        of that employee shall receive compensation as follows:
                    ``(A) Except as provided in subparagraph 
                (B), the survivor of that employee shall 
                receive contractor employee compensation under 
                this subtitle in accordance with section 3674.
                    ``(B) In a case in which the employee's 
                death occurred after the employee applied under 
                this subtitle and before compensation was paid 
                under paragraph (1), and the employee's death 
                occurred from a cause other than the covered 
                illness of the employee, the survivor of that 
                employee may elect to receive, in lieu of 
                compensation under subparagraph (A), the amount 
                of contractor employee compensation that the 
                employee would have received in accordance with 
                section 3673 if the employee's death had not 
                occurred before compensation was paid under 
                paragraph (1).

``SEC. 3673. COMPENSATION SCHEDULE FOR CONTRACTOR EMPLOYEES.

    ``(a) Compensation Provided.--The amount of contractor 
employee compensation under this subtitle for a covered DOE 
contractor employee shall be the sum of the amounts determined 
under paragraphs (1) and (2), as follows:
            ``(1) Impairment.--(A) The Secretary shall 
        determine--
                    ``(i) the minimum impairment rating of that 
                employee, expressed as a number of percentage 
                points; and
                    ``(ii) the number of those points that are 
                the result of any covered illness contracted by 
                that employee through exposure to a toxic 
                substance at a Department of Energy facility.
            ``(B) The employee shall receive an amount under 
        this paragraph equal to $2,500 multiplied by the number 
        referred to in clause (ii) of subparagraph (A).
            ``(2) Wage loss.--(A) The Secretary shall 
        determine--
                    ``(i) the calendar month during which the 
                employee first experienced wage loss as the 
                result of any covered illness contracted by 
                that employee through exposure to a toxic 
                substance at a Department of Energy facility;
                    ``(ii) the average annual wage of the 
                employee for the 36-month period immediately 
                preceding the calendar month referred to in 
                clause (i), excluding any portions of that 
                period during which the employee was 
                unemployed; and
                    ``(iii) beginning with the calendar year 
                that includes the calendar month referred to in 
                clause (i), through and including the calendar 
                year during which the employee attained normal 
                retirement age (for purposes of the Social 
                Security Act)--
                            ``(I) the number of calendar years 
                        during which, as the result of any 
                        covered illness contracted by that 
                        employee through exposure to a toxic 
                        substance at a Department of Energy 
                        facility, the employee's annual wage 
                        exceeded 50 percent of the average 
                        annual wage determined under clause 
                        (ii), but did not exceed 75 percent of 
                        the average annual wage determined 
                        under clause (ii); and
                            ``(II) the number of calendar years 
                        during which, as the result of any 
                        covered illness contracted by that 
                        employee through exposure to a toxic 
                        substance at a Department of Energy 
                        facility, the employee's annual wage 
                        did not exceed 50 percent of the 
                        average annual wage determined under 
                        clause (ii).
            ``(B) The employee shall receive an amount under 
        this paragraph equal to the sum of--
                    ``(i) $10,000 multiplied by the number 
                referred to in clause (iii)(I) of subparagraph 
                (A); and
                    ``(ii) $15,000 multiplied by the number 
                referred to in clause (iii)(II) of subparagraph 
                (A).
    ``(b) Determination of Minimum Impairment Rating.--For 
purposes of subsection (a), a minimum impairment rating shall 
be determined in accordance with the American Medical 
Association's Guides to the Evaluation of Permanent Impairment.

``SEC. 3674. COMPENSATION SCHEDULE FOR SURVIVORS.

    ``(a) Categories of Compensation.--The amount of contractor 
employee compensation under this subtitle for the survivor of a 
covered DOE contractor employee shall be determined as follows:
            ``(1) Category one.--The survivor shall receive the 
        amount of $125,000, if the Secretary determines that--
                    ``(A) the employee would have been entitled 
                to compensation under section 3675 for a 
                covered illness; and
                    ``(B) it is at least as likely as not that 
                exposure to a toxic substance at a Department 
                of Energy facility was a significant factor in 
                aggravating, contributing to, or causing the 
                death of such employee.
            ``(2) Category two.--The survivor shall receive the 
        amount of $150,000, if paragraph (1) applies to the 
        employee and the Secretary also determines that there 
        was an aggregate period of not less than 10 years, 
        before the employee attained normal retirement age (for 
        purposes of the Social Security Act), during which, as 
        the result of any covered illness contracted by that 
        employee through exposure to a toxic substance at a 
        Department of Energy facility, the employee's annual 
        wage did not exceed 50 percent of the average annual 
        wage of that employee, as determined under section 
        3673(a)(2)(A)(ii).
            ``(3) Category three.--The survivor shall receive 
        the amount of $175,000, if paragraph (1) applies to the 
        employee and the Secretary also determines that there 
        was an aggregate period of not less than 20 years, 
        before the employee attained normal retirement age (for 
        purposes of the Social Security Act), during which, as 
        the result of any covered illness contracted by that 
        employee through exposure to a toxic substance at a 
        Department of Energy facility, the employee's annual 
        wage did not exceed 50 percent of the average annual 
        wage of that employee, as determined under section 
        3673(a)(2)(A)(ii).
    ``(b) One Amount Only.--The survivor of a covered DOE 
contractor employee to whom more than one amount under 
subsection (a) applies shall receive only the highest such 
amount.
    ``(c) Determination and Allocation of Shares.--The amount 
under subsection (a) shall be paid only as follows:
            ``(1) If a covered spouse is alive at the time of 
        payment, such payment shall be made to such surviving 
        spouse.
            ``(2) If there is no covered spouse described in 
        paragraph (1), such payment shall be made in equal 
        shares to all covered children who are alive at the 
        time of payment.
            ``(3) Notwithstanding the other provisions of this 
        subsection, if there is--
                    ``(A) a covered spouse described in 
                paragraph (1); and
                    ``(B) at least one covered child of the 
                employee who is living at the time of payment 
                and who is not a recognized natural child or 
                adopted child of such covered spouse,
        ``then half of such payment shall be made to such 
        covered spouse, and the other half of such payment 
        shall be made in equal shares to each covered child of 
        the employee who is living at the time of payment.
    ``(d) Definitions.--In this section:
            ``(1) The term `covered spouse' means a spouse of 
        the employee who was married to the employee for at 
        least one year immediately before the employee's death.
            ``(2) The term `covered child' means a child of the 
        employee who, as of the employee's death--
                    ``(A) had not attained the age of 18 years;
                    ``(B) had not attained the age of 23 years 
                and was a full-time student who had been 
                continuously enrolled as a full-time student in 
                one or more educational institutions since 
                attaining the age of 18 years; or
                    ``(C) had been incapable of self-support.
            ``(3) The term `child' includes a recognized 
        natural child, a stepchild who lived with an individual 
        in a regular parent-child relationship, and an adopted 
        child.

``SEC. 3675. DETERMINATIONS REGARDING CONTRACTION OF COVERED ILLNESSES.

    ``(a) Cases Determined Under Subtitle B.--A determination 
under subtitle B that a Department of Energy contractor 
employee is entitled to compensation under that subtitle for an 
occupational illness shall be treated for purposes of this 
subtitle as a determination that the employee contracted that 
illness through exposure at a Department of Energy facility.
    ``(b) Cases Determined Under Former Subtitle D.--In the 
case of a covered illness of an employee with respect to which 
a panel has made a positive determination under section 3661(d) 
and the Secretary of Energy has accepted that determination 
under section 3661(e)(2), or with respect to which a panel has 
made a negative determination under section 3661(d) and the 
Secretary of Energy has found significant evidence to the 
contrary under section 3661(e)(2), that determination shall be 
treated for purposes of this subtitle as a determination that 
the employee contracted the covered illness through exposure at 
a Department of Energy facility.
    ``(c) Other Cases.--(1) In any other case, a Department of 
Energy contractor employee shall be determined for purposes of 
this subtitle to have contracted a covered illness through 
exposure at a Department of Energy facility if--
            ``(A) it is at least as likely as not that exposure 
        to a toxic substance at a Department of Energy facility 
        was a significant factor in aggravating, contributing 
        to, or causing the illness; and
            ``(B) it is at least as likely as not that the 
        exposure to such toxic substance was related to 
        employment at a Department of Energy facility.
    ``(2) A determination under paragraph (1) shall be made by 
the Secretary.
    ``(d) Applications by Spouses and Children.--If a spouse or 
child of a Department of Energy contractor employee applies for 
benefits under this subtitle, the Secretary shall make a 
determination under this section with respect to that employee 
without regard to whether the spouse is a `covered spouse', or 
the child is a `covered child', under this subtitle.

``SEC. 3676. APPLICABILITY TO CERTAIN URANIUM EMPLOYEES.

    ``(a) In General.--This subtitle shall apply to--
            ``(1) a section 5 payment recipient who contracted 
        a section 5 illness through a section 5 exposure at a 
        section 5 facility, or
            ``(2) a section 5 uranium worker determined under 
        section 3675(c) to have contracted a covered illness 
        through exposure to a toxic substance at a section 5 
        mine or mill,
``(or to the survivor of that employee, as applicable) on the 
same basis as it applies to a Department of Energy contractor 
employee determined under section 3675 to have contracted a 
covered illness through exposure to a toxic substance at a 
Department of Energy facility (or to the survivor of that 
employee, as applicable).
    ``(b) Definitions.--In this section:
            ``(1) The term `section 5 payment recipient' means 
        an individual who receives, or has received, $100,000 
        under section 5 of the Radiation Exposure Compensation 
        Act (42 U.S.C. 2210 note) for a claim made under that 
        Act.
            ``(2) The terms `section 5 exposure', `section 5 
        facility', and `section 5 illness' mean the exposure, 
        facility, and illness, respectively, to which an 
        individual's status as a section 5 payment recipient 
        relates.
            ``(3) The term `section 5 uranium worker' means an 
        individual to whom subsection (a)(1)(A)(i) of section 5 
        of the Radiation Exposure Compensation Act applies 
        (whether directly or by reason of subsection (a)(2)).
            ``(4) The term `section 5 mine or mill' means the 
        mine or mill to which an individual's status as a 
        section 5 uranium worker relates.

``SEC. 3677. ADMINISTRATIVE AND JUDICIAL REVIEW.

    ``(a) Judicial Review.--A person adversely affected or 
aggrieved by a final decision of the Secretary under this 
subtitle may review that order in the United States district 
court in the district in which the injury was sustained, the 
employee lives, the survivor lives, or the District of 
Columbia, by filing in such court within 60 days after the date 
on which that final decision was issued a written petition 
praying that such decision be modified or set aside. The person 
shall also provide a copy of the petition to the Secretary. 
Upon such filing, the court shall have jurisdiction over the 
proceeding and shall have the power to affirm, modify, or set 
aside, in whole or in part, such decision. The court may modify 
or set aside such decision only if the court determines that 
such decision was arbitrary and capricious.
    ``(b) Administrative Review.--The Secretary shall ensure 
that recommended decisions of the Secretary with respect to a 
claim under this subtitle are subject to administrative review. 
The Secretary shall prescribe regulations for carrying out such 
review or shall apply to this subtitle the regulations 
applicable to recommended decisions under subtitle B.

``SEC. 3678. PHYSICIANS SERVICES.

    ``(a) In General.--The Secretary may utilize the services 
of physicians for purposes of making determinations under this 
subtitle.
    ``(b) Physicians.--Any physicians whose services are 
utilized under subsection (a) of this section shall possess 
appropriate expertise and experience in the evaluation and 
determination of the extent of permanent physical impairments 
or in the evaluation and diagnosis of illnesses or deaths 
aggravated, contributed to, or caused by exposure to toxic 
substances.
    ``(c) Arrangement.--The Secretary may secure the services 
of physicians utilized under subsection (a) of this section 
through the appointment of physicians or by contract.

``SEC. 3679. MEDICAL BENEFITS.

    ``A covered DOE contractor employee shall be furnished 
medical benefits specified in section 3629 for the covered 
illness to the same extent, and under the same conditions and 
limitations, as an individual eligible for medical benefits 
under that section is furnished medical benefits under that 
section.

``SEC. 3680. ATTORNEY FEES.

    ``Section 3648 shall apply to a payment under this subtitle 
to the same extent that it applies to a payment under subtitle 
B.

``SEC. 3681. ADMINISTRATIVE MATTERS.

    ``(a) In General.--The Secretary shall administer this 
subtitle.
    ``(b) Contract Authority.--The Secretary may enter into 
contracts with appropriate persons and entities to administer 
this subtitle.
    ``(c) Records.--(1)(A) The Secretary of Energy shall 
provide to the Secretary all records, files, and other data, 
whether paper, electronic, imaged, or otherwise, developed by 
the Secretary of Energy that are applicable to the 
administration of this subtitle, including records, files, and 
data on facility industrial hygiene, employment of individuals 
or groups, exposure and medical records, and claims 
applications.
    ``(B) In providing records, files, and other data under 
this paragraph, the Secretary of Energy shall preserve the 
current organization of such records, files, and other data, 
and shall provide such description and indexing of such 
records, files, and other data as the Secretary considers 
appropriate to facilitate their use by the Secretary.
    ``(2) The Secretary of Energy and the Secretary shall 
jointly undertake such actions as are appropriate to retrieve 
records applicable to the claims of Department of Energy 
contractor employees for contractor employee compensation under 
this subtitle, including employment records, records of 
exposure to beryllium, radiation, silica, or other toxic 
substances, and records regarding medical treatment.
    ``(d) Information.--At the request of the Secretary, the 
Secretary of Energy and any contractor who employed a 
Department of Energy contractor employee shall, within time 
periods specified by the Secretary, provide to the Secretary 
and to the employee information or documents in response to the 
request.
    ``(e) Regulations.--The Secretary shall prescribe 
regulations necessary for the administration of this subtitle. 
The initial regulations shall be prescribed not later than 210 
days after the date of the enactment of this subtitle. The 
Secretary may prescribe interim final regulations necessary to 
meet the deadlines specified in this subtitle.
    ``(f) Transition Provisions.--(1) The Secretary shall 
commence the administration of the provisions of this subtitle 
not later than 210 days after the date of the enactment of this 
subtitle.
    ``(2) Until the commencement of the administration of this 
subtitle, the Department of Energy Physicians Panels appointed 
pursuant to subtitle D shall continue to consider and issue 
determinations concerning any cases pending before such Panels 
immediately before the date of the enactment of this subtitle.
    ``(3) The Secretary shall take such actions as are 
appropriate to identify other activities under subtitle D that 
will continue until the commencement of the administration of 
subtitle E.
    ``(g) Previous Applications.--Upon the commencement of the 
administration of this subtitle, any application previously 
filed with the Secretary of Energy pursuant to subtitle D shall 
be considered to have been filed with the Secretary as a claim 
for benefits pursuant to this subtitle.

``SEC. 3682. COORDINATION OF BENEFITS WITH RESPECT TO STATE WORKERS 
                    COMPENSATION.

    ``(a) In General.--An individual who has been awarded 
compensation under this subtitle, and who has also received 
benefits from a State workers compensation system by reason of 
the same covered illness, shall receive compensation specified 
in this subtitle reduced by the amount of any workers 
compensation benefits, other than medical benefits and benefits 
for vocational rehabilitation, that the individual has received 
under the State workers compensation system by reason of the 
covered illness, after deducting the reasonable costs, as 
determined by the Secretary, of obtaining those benefits under 
the State workers compensation system.
    ``(b) Waiver.--The Secretary may waive the provisions of 
subsection (a) if the Secretary determines that the 
administrative costs and burdens of implementing subsection (a) 
with respect to a particular case or class of cases justifies 
such a waiver.
    ``(c) Information.--Notwithstanding any other provision of 
law, each State workers compensation authority shall, upon 
request of the Secretary, provide to the Secretary on a 
quarterly basis information concerning workers compensation 
benefits received by any covered DOE contractor employee 
entitled to compensation or benefits under this subtitle, which 
shall include the name, Social Security number, and nature and 
amount of workers compensation benefits for each such employee 
for which the request was made.

``SEC. 3683. MAXIMUM AGGREGATE COMPENSATION.

    ``For each individual whose illness or death serves as the 
basis for compensation or benefits under this subtitle, the 
total amount of compensation (other than medical benefits) paid 
under this subtitle, to all persons, in the aggregate, on the 
basis of that illness or death shall not exceed $250,000.

``SEC. 3684. FUNDING OF ADMINISTRATIVE COSTS.

    ``There is authorized and hereby appropriated to the 
Secretary for fiscal year 2005 and thereafter such sums as may 
be necessary to carry out this subtitle.

``SEC. 3685. PAYMENT OF COMPENSATION AND BENEFITS FROM COMPENSATION 
                    FUND.

    ``The compensation and benefits provided under this title, 
when authorized or approved by the President, shall be paid 
from the compensation fund established under section 3612.

``SEC. 3686. OFFICE OF OMBUDSMAN.

    ``(a) Establishment.--There is established in the 
Department of Labor an office to be known as the `Office of the 
Ombudsman' (in this section referred to as the `Office').
    ``(b) Head.--The head of the Office shall be the Ombudsman. 
The individual serving as Ombudsman shall be either of the 
following:
            ``(1) An officer or employee of the Department of 
        Labor designated by the Secretary for purposes of this 
        section from among officers and employees of the 
        Department who have experience and expertise necessary 
        to carry out the duties of the Office specified in 
        subsection (c).
            ``(2) An individual employed by the Secretary from 
        the private sector from among individuals in the 
        private sector who have experience and expertise 
        necessary to carry out the duties of the Office 
        specified in subsection (c).
    ``(c) Duties.--The duties of the Office shall be as 
follows:
            ``(1) To provide information on the benefits 
        available under this subtitle and on the requirements 
        and procedures applicable to the provision of such 
        benefits.
            ``(2) To make recommendations to the Secretary 
        regarding the location of centers (to be known as 
        `resource centers') for the acceptance and development 
        of claims for benefits under this subtitle.
            ``(3) To carry out such other duties with respect 
        to this subtitle as the Secretary shall specify for 
        purposes of this section.
    ``(d) Independent Office.--The Secretary shall take 
appropriate actions to ensure the independence of the Office 
within the Department of Labor, including independence from 
other officers and employees of the Department engaged in 
activities relating to the administration of the provisions of 
this subtitle.
    ``(e) Annual Report.--(1) Not later than February 15 each 
year, the Ombudsman shall submit to Congress a report on 
activities under this subtitle.
    ``(2) Each report under paragraph (1) shall set forth the 
following:
            ``(A) The number and types of complaints, 
        grievances, and requests for assistance received by the 
        Ombudsman under this subtitle during the preceding 
        year.
            ``(B) An assessment of the most common difficulties 
        encountered by claimants and potential claimants under 
        this subtitle during the preceding year.
    ``(3) The first report under paragraph (1) shall be the 
report submitted in 2006.
    ``(f) Outreach.--The Secretary of Labor and the Secretary 
of Health and Human Services shall each undertake outreach to 
advise the public of the existence and duties of the Office.
    ``(g) Sunset.--Effective on the date that is 3 years after 
the date of the enactment of this section, this section shall 
have no further force or effect.''.

SEC. 3162. CONFORMING AMENDMENTS.

    (a) Offset for Certain Payments.--Section 3641 of the 
Energy Employees Occupational Illness Compensation Program Act 
of 2000 (42 U.S.C. 7385) is amended--
            (1) by striking ``subtitle B'' and inserting ``this 
        title''; and
            (2) by striking ``on account of'' and all that 
        follows through the period at the end and inserting 
        ``on account of the exposure for which compensation is 
        payable under this title.''.
    (b) Subrogation of the United States.--Section 3642 of such 
Act (42 U.S.C. 7385a) is amended by striking ``subtitle B'' and 
inserting ``this title''.
    (c) Payment in Full Settlement of Claims.--Section 3643 of 
such Act (42 U.S.C. 7385b) is amended by striking ``The 
acceptance'' and inserting ``Except as provided in subtitle E, 
the acceptance''.
    (d) Exclusivity of Remedy.--Section 3644 of such Act (42 
U.S.C. 7385c(a)) is amended by adding at the end the following 
new subsection:
    ``(d) Applicability to Subtitle E.--This section applies 
with respect to subtitle E to the covered medical condition or 
covered illness or death of a covered DOE contractor employee 
on the same basis as it applies with respect to subtitle B to 
the cancer (including a specified cancer), chronic silicosis, 
covered beryllium illness, or death of a covered employee.''.
    (e) Certification of Treatment of Payments Under Other 
Laws.--Section 3646 of such Act (42 U.S.C. 7385e) is amended by 
striking ``subtitle B'' and inserting ``this title''.
    (f) Claims Not Assignable or Transferable.--Section 3647(a) 
of such Act (42 U.S.C. 7385f(a)) is amended by striking 
``subtitle B'' and inserting ``this title''.
    (g) Certain Claims Not Affected By Awards of Damages.--
Section 3649 of such Act (42 U.S.C. 7385h) is amended by 
striking ``subtitle B'' both places such term appears and 
inserting ``this title''.
    (h) Forfeiture of Benefits by Convicted Felons.--Section 
3650 of such Act (42 U.S.C. 7385i) is amended by striking 
``subtitle B'' each place such term appears and inserting 
``this title''.
    (i) Repeal of Subtitle D.--Subtitle D of the Energy 
Employees Occupational Illness Compensation Program Act of 2000 
(title XXXVI of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by 
Public Law 106-398); 42 U.S.C. 7385o) is repealed.

SEC. 3163. TECHNICAL AMENDMENTS.

    (a) Subpoenas.--Subtitle B of such Act is amended by adding 
after section 3631 (42 U.S.C. 7384v) the following new section:

``SEC. 3632. SUBPOENAS; OATHS; EXAMINATION OF WITNESSES.

    ``The Secretary of Labor, with respect to any matter under 
this subtitle, may--
            ``(1) issue subpoenas for and compel the attendance 
        of witnesses;
            ``(2) administer oaths;
            ``(3) examine witnesses; and
            ``(4) require the production of books, papers, 
        documents, and other evidence.''.
    (b) Social Security Earnings Information.--Subtitle C of 
such Act is amended by adding after section 3651 (42 U.S.C. 
7385j) the following new section:

``SEC. 3652. SOCIAL SECURITY EARNINGS INFORMATION.

    ``Notwithstanding the provision of section 552a of title 5, 
United States Code, or any other provision of Federal or State 
law, the Social Security Administration shall make available to 
the Secretary of Labor, upon written request, the Social 
Security earnings information of living or deceased employees 
who may have sustained an illness that is the subject of a 
claim under this title, which the Secretary of Labor may 
require to carry out the provisions of this title.''.
    (c) Recovery of Overpayment.--Subtitle C of such Act is 
further amended by adding after section 3652 (as added by 
subsection (b)) the following new section:

``SEC. 3653. RECOVERY AND WAIVER OF OVERPAYMENTS.

    ``(a) In General.--When an overpayment has been made to an 
individual under this title because of an error of fact or law, 
recovery shall be made under regulations prescribed by the 
Secretary of Labor by decreasing later payments to which the 
individual is entitled. If the individual dies before the 
recovery is completed, recovery shall be made by decreasing 
later benefits payable under this title with respect to the 
individual's death.
    ``(b) Waiver.--Recovery by the United States under this 
section may not be made when incorrect payment has been made to 
an individual who is without fault and when adjustment or 
recovery would defeat the purpose of this title or would be 
against equity and good conscience.
    ``(c) Liability.--A certifying or disbursing official is 
not liable for an amount certified or paid by him when recovery 
of the amount is waived under subsection (b) of this section, 
or when recovery under subsection (a) of this section is not 
completed before the death of all individuals against whose 
benefits deductions are authorized.''.

SEC. 3164. TRANSFER OF FUNDS FOR FISCAL YEAR 2005.

    Of the funds appropriated to the Secretary of Energy for 
fiscal year 2005 for the Energy Employees Occupational Illness 
Compensation Program, the Secretary of Energy shall transfer to 
the Secretary of Labor the amount of funds that the Secretary 
of Energy, in consultation with the Secretary of Labor, 
determine will be necessary for fiscal year 2005 to administer 
the provisions of subtitle E of the Energy Employees 
Occupational Illness Compensation Program Act of 2000, as added 
by this Act.

SEC. 3165. USE OF ENERGY EMPLOYEES OCCUPATIONAL ILLNESS COMPENSATION 
                    FUND FOR CERTAIN PAYMENTS TO COVERED URANIUM 
                    EMPLOYEES.

    (a) In General.--Section 3630 of the Energy Employees 
Occupational Illness Compensation Program Act of 2000 (42 
U.S.C. 7384u) is amended in subsection (d) by inserting after 
``The compensation provided under this section'' the following: 
``and the compensation provided under section 5 of the 
Radiation Exposure Compensation Act''.
    (b) Conforming Amendment.--Section 6(c)(1) of the Radiation 
Exposure Compensation Act (42 U.S.C. 2210 note) is amended by 
inserting after ``Fund'' the following: ``(or, in the case of a 
payment under section 5, from the Energy Employees Occupational 
Illness Compensation Fund, pursuant to section 3630(d) of the 
Energy Employees Occupational Illness Compensation Program Act 
of 2000)''.

SEC. 3166. IMPROVEMENTS TO SUBTITLE B OF ENERGY EMPLOYEES OCCUPATIONAL 
                    ILLNESS COMPENSATION PROGRAM ACT OF 2000.

    (a) Advisory Board.--Section 3624 of the Energy Employees 
Occupational Illness Compensation Program Act of 2000 (42 
U.S.C. 7384o) is amended by adding at the end the following new 
subsections:
    ``(e) Security Clearances.--(1) The Secretary of Energy 
shall ensure that the members and staff of the Board, and the 
contractors performing work in support of the Board, are 
afforded the opportunity to apply for a security clearance for 
any matter for which such a clearance is appropriate. The 
Secretary should, not later than 180 days after receiving a 
completed application, make a determination whether or not the 
individual concerned is eligible for the clearance.
    ``(2) For fiscal year 2007 and each fiscal year thereafter, 
the Secretary of Energy shall include in the budget 
justification materials submitted to Congress in support of the 
Department of Energy budget for that fiscal year (as submitted 
with the budget of the President under section 1105(a) of title 
31, United States Code) a report specifying the number of 
applications for security clearances under this subsection, the 
number of such applications granted, and the number of such 
applications denied.
    ``(f) Information.--The Secretary of Energy shall, in 
accordance with law, provide to the Board and the contractors 
of the Board access to any information that the Board considers 
relevant to carry out its responsibilities under this title, 
including information such as Restricted Data (as defined in 
section 11 y. of the Atomic Energy Act of 1954 (42 U.S.C. 
2014(y))) and information covered by the Privacy Act.''.
    (b) Deadlines for Special Exposure Cohort Actions.--(1) 
Section 3626 of the Energy Employees Occupational Illness 
Compensation Program Act of 2000 (42 U.S.C. 7384q) is amended--
            (A) by redesignating subsection (c) as subsection 
        (d); and
            (B) by inserting after subsection (b) the following 
        new subsection:
    ``(c) Deadlines.--(1) Not later than 180 days after the 
date on which the President receives a petition for designation 
as members of the Special Exposure Cohort, the Director of the 
National Institute for Occupational Safety and Health shall 
submit to the Advisory Board on Radiation and Worker Health a 
recommendation on that petition, including all supporting 
documentation.
    ``(2)(A) Upon receipt by the President of a recommendation 
of the Advisory Board on Radiation and Worker Health that the 
President should determine in the affirmative that paragraphs 
(1) and (2) of subsection (b) apply to a class, the President 
shall have a period of 30 days in which to determine whether 
such paragraphs apply to the class and to submit that 
determination (whether affirmative or negative) to Congress.
    ``(B) If the determination submitted by the President under 
subparagraph (A) is in the affirmative, the President shall 
also submit a report meeting the requirements of section 
3621(14)(C)(ii).
    ``(C) If the President does not submit a determination 
required by subparagraph (A) within the period required by 
subparagraph (A), then upon the day following the expiration of 
that period, it shall be deemed for purposes of section 
3621(14)(C)(ii) that the President submitted the report under 
that provision on that day.''.
    (2) Section 3621(14)(C)(ii) of that Act (42 U.S.C. 
7384l(14)(C)(ii)) is amended by striking ``180 days'' and 
inserting ``30 days''.
    (c) Site Profiles.--Subtitle B of that Act is amended by 
adding after section 3632 (as added by section 3163(a)) the 
following new section:

``SEC. 3633. COMPLETION OF SITE PROFILES.

    ``(a) In General.--To the extent that the Secretary of 
Labor determines it useful and practicable, the Secretary of 
Labor shall direct the Director of the National Institute for 
Occupational Safety and Health to prepare site profiles for a 
Department of Energy facility based on the records, files, and 
other data provided by the Secretary of Energy and such other 
information as is available, including information available 
from the former worker medical screening programs of the 
Department of Energy.
    ``(b) Information.--The Secretary of Energy shall furnish 
to the Secretary of Labor any information that the Secretary of 
Labor finds necessary or useful for the production of such site 
profiles, including records from the Department of Energy 
former worker medical screening program.
    ``(c) Definition.--In this section, the term `site profile' 
means an exposure assessment of a facility that identifies the 
toxic substances or processes that were commonly used in each 
building or process of the facility, and the time frame during 
which the potential for exposure to toxic substances existed.
    ``(d) Time Frames.--The Secretary of Health and Human 
Services shall establish time frames for completing site 
profiles for those Department of Energy facilities for which a 
site profile has not been completed. Not later than March 1, 
2005, the Secretary of Health and Human Services shall submit 
to Congress a report setting forth those time frames.''.

SEC. 3167. EMERGENCY SPECIAL EXPOSURE COHORT MEETING AND REPORT.

    (a) Meeting of Advisory Board.--(1) For purposes of 
carrying out section 3626 of the Energy Employees Occupational 
Illness Compensation Program Act of 2000 (42 U.S.C. 7384q), the 
President shall require the Advisory Board on Radiation and 
Worker Health to convene a meeting of the Board at which the 
Board considers each petition for designation as members of the 
Special Exposure Cohort--
            (A) that was filed not later than October 1, 2004; 
        and
            (B) the evaluation of which (by the Director of the 
        National Institute of Occupational Safety and Health) 
        was completed more than 10 days before a previously 
        scheduled meeting of the Board.
    (2) Effective March 1, 2005, this subsection shall have no 
further force or effect.
    (b) Report to Congress.--Not later than March 15, 2005, the 
President shall submit to Congress a report on the status of 
the petitions referred to in subsection (a). The report shall 
include, for each petition, the estimated time to complete the 
consideration of that petition and any anticipated actions or 
circumstances that could preclude the Board from acting upon 
that petition before the end of fiscal year 2005.

SEC. 3168. COVERAGE OF INDIVIDUALS EMPLOYED AT ATOMIC WEAPONS EMPLOYER 
                    FACILITIES DURING PERIODS OF RESIDUAL 
                    CONTAMINATION.

    (a) Coverage.--Paragraph (3) of section 3621 of the Energy 
Employees Occupational Illness Compensation Program Act of 2000 
(title XXXVI of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by 
Public Law 106-398); 42 U.S.C. 7384l) is amended to read as 
follows:
            ``(3) The term `atomic weapons employee' means any 
        of the following:
                    ``(A) An individual employed by an atomic 
                weapons employer during a period when the 
                employer was processing or producing, for the 
                use by the United States, material that emitted 
                radiation and was used in the production of an 
                atomic weapon, excluding uranium mining and 
                milling.
                    ``(B) An individual employed--
                            ``(i) at a facility with respect to 
                        which the National Institute for 
                        Occupational Safety and Health, in its 
                        report dated October 2003 and titled 
                        `Report on Residual Radioactive and 
                        Beryllium Contamination at Atomic 
                        Weapons Employer Facilities and 
                        Beryllium Vendor Facilities', or any 
                        update to that report, found that there 
                        is a potential for significant residual 
                        contamination outside of the period in 
                        which weapons-related production 
                        occurred;
                            ``(ii) by an atomic weapons 
                        employer or subsequent owner or 
                        operators of a facility described in 
                        clause (i); and
                            ``(iii) during a period, as 
                        specified in such report or any update 
                        to such report, of potential for 
                        significant residual radioactive 
                        contamination at such facility.''.
    (b) Radiation Dose for Certain Atomic Weapons Employees.--
Section 3623 of that Act (42 U.S.C. 7384n) is amended by adding 
at the end of subsection (c) the following new paragraph:
    ``(4) In the case of an atomic weapons employee described 
in section 3621(3)(B), the following doses of radiation shall 
be treated, for purposes of paragraph (3)(A) of this 
subsection, as part of the radiation dose received by the 
employee at such facility:
            ``(A) Any dose of ionizing radiation received by 
        that employee from facilities, materials, devices, or 
        byproducts used or generated in the research, 
        development, production, dismantlement, transportation, 
        or testing of nuclear weapons, or from any activities 
        to research, produce, process, store, remediate, or 
        dispose of radioactive materials by or on behalf of the 
        Department of Energy (except for activities covered by 
        Executive Order No. 12344, dated February 1, 1982 (42 
        U.S.C. 7158 note) pertaining to the Naval Nuclear 
        Propulsion Program).
            ``(B) Any dose of ionizing radiation received by 
        that employee from a source not covered by subparagraph 
        (A) that is not distinguishable through reliable 
        documentation from a dose covered by subparagraph 
        (A).''.

SEC. 3169. UPDATE OF REPORT ON RESIDUAL CONTAMINATION OF FACILITIES.

    (a) Update of Report.--Not later than December 31, 2006, 
the Director of the National Institute for Occupational Safety 
and Health shall submit to Congress an update to the report 
required by section 3151(b) of the National Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107-107; 42 
U.S.C. 7384 note).
    (b) Elements.--The update shall--
            (1) for each facility for which such report found 
        that insufficient information was available to 
        determine whether significant residual contamination 
        was present, determine whether significant residual 
        contamination was present;
            (2) for each facility for which such report found 
        that significant residual contamination remained 
        present as of the date of the report, determine the 
        date on which such contamination ceased to be present;
            (3) for each facility for which such report found 
        that significant residual contamination was present but 
        for which the Director has been unable to determine the 
        extent to which such contamination is attributable to 
        atomic weapons-related activities, identify the 
        specific dates of coverage attributable to such 
        activities and, in so identifying, presume that such 
        contamination is attributable to such activities until 
        there is evidence of decontamination of residual 
        contamination identified with atomic weapons-related 
        activities;
            (4) for each facility for which such report found 
        significant residual contamination, determine whether 
        it is at least as likely as not that such contamination 
        could have caused an employee who was employed at such 
        facility only during the residual contamination period 
        to contract a cancer or beryllium illness compensable 
        under subtitle B of the Energy Employees Occupational 
        Illness Compensation Program Act of 2000; and
            (5) if new information that pertains to the report 
        has been made available to the Director since that 
        report was submitted, identify and describe such 
        information.
    (c) Publication.--The Director shall ensure that the report 
referred to in subsection (a) is published in the Federal 
Register not later than 15 days after being released.

SEC. 3170. SENSE OF CONGRESS ON RESOURCE CENTER FOR ENERGY EMPLOYEES 
                    UNDER ENERGY EMPLOYEE OCCUPATIONAL ILLNESS 
                    COMPENSATION PROGRAM IN WESTERN NEW YORK AND 
                    WESTERN PENNSYLVANIA REGION.

    (a) Findings.--Congress makes the following findings:
            (1) New York has 36 current or former Department of 
        Energy facilities involved in nuclear weapons 
        production-related activities statewide, mostly atomic 
        weapons employer facilities, and 14 such facilities in 
        western New York. Despite having one of the greatest 
        concentrations of such facilities in the United States, 
        western New York, and abutting areas of Pennsylvania, 
        continue to be severely underserved by the Energy 
        Employees Occupational Illness Compensation Program 
        under the Energy Employees Occupational Illness 
        Compensation Program Act of 2000 (title XXXVI of the 
        Floyd D. Spence National Defense Authorization Act for 
        Fiscal Year 2001 (as enacted into law by Public Law 
        106-398); 42 U.S.C. 7384 et seq.).
            (2) The establishment of a permanent resource 
        center in western New York would represent a 
        substantial step toward improving services under the 
        Energy Employees Occupational Illness Compensation 
        Program for energy employees in this region.
            (3) The number of claims submitted to the 
        Department under subtitle B of the Energy Employees 
        Occupational Illness Compensation Program Act of 2000 
        from the western New York region, including western 
        Pennsylvania, exceeds the number of such claims filed 
        at resource centers in Hanford, Washington, Portsmouth, 
        Ohio, Los Alamos, New Mexico, the Nevada Test Site, 
        Nevada, the Rocky Flats Environmental Technology Site, 
        Colorado, the Idaho National Engineering Laboratory, 
        Idaho, and the Amchitka Test Site, Alaska.
            (4) Energy employees in the western New York 
        region, including western Pennsylvania, deserve 
        assistance under subtitle B of the Energy Employees 
        Occupational Illness Compensation Program Act of 2000 
        commensurate with the assistance provided energy 
        employees at other locations in the United States.
    (b) Sense of Congress.--It is the sense of Congress that 
the Secretary of Labor should--
            (1) review the availability of assistance under 
        subtitle B of the Energy Employees Occupational Illness 
        Compensation Program Act of 2000 for energy employees 
        in the western New York region, including western 
        Pennsylvania; and
            (2) recommend a location in that region for a 
        resource center to provide such assistance to such 
        energy employees.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

SEC. 3201. AUTHORIZATION.

    There are authorized to be appropriated for fiscal year 
2005, $21,268,000 for the operation of the Defense Nuclear 
Facilities Safety Board under chapter 21 of the Atomic Energy 
Act of 1954 (42 U.S.C. 2286 et seq.).

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Authorized uses of National Defense Stockpile funds.
Sec. 3302. Revision of earlier authority to dispose of certain materials 
          in National Defense Stockpile.
Sec. 3303. Disposal of ferromanganese.
Sec. 3304. Prohibition on storage of mercury at certain facilities.

SEC. 3301. AUTHORIZED USES OF NATIONAL DEFENSE STOCKPILE FUNDS.

    (a) Obligation of Stockpile Funds.--During fiscal year 
2005, the National Defense Stockpile Manager may obligate up to 
$59,700,000 of the funds in the National Defense Stockpile 
Transaction Fund established under subsection (a) of section 9 
of the Strategic and Critical Materials Stock Piling Act (50 
U.S.C. 98h) for the authorized uses of such funds under 
subsection (b)(2) of such section, including the disposal of 
hazardous materials that are environmentally sensitive.
    (b) Additional Obligations.--The National Defense Stockpile 
Manager may obligate amounts in excess of the amount specified 
in subsection (a) if the National Defense Stockpile Manager 
notifies Congress that extraordinary or emergency conditions 
necessitate the additional obligations. The National Defense 
Stockpile Manager may make the additional obligations described 
in the notification after the end of the 45-day period 
beginning on the date on which Congress receives the 
notification.
    (c) Limitations.--The authorities provided by this section 
shall be subject to such limitations as may be provided in 
appropriations Acts.

SEC. 3302. REVISION OF EARLIER AUTHORITY TO DISPOSE OF CERTAIN 
                    MATERIALS IN NATIONAL DEFENSE STOCKPILE.

    Section 3303(a) of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (Public Law 105-261; 50 
U.S.C. 98d note) is amended by striking paragraphs (4) and (5) 
and inserting the following new paragraphs:
            ``(4) $785,000,000 by the end of fiscal year 2005; 
        and
            ``(5) $870,000,000 by the end of fiscal year 
        2009.''.

SEC. 3303. DISPOSAL OF FERROMANGANESE.

    (a) Disposal Authorized.--The Secretary of Defense may 
dispose of up to 50,000 tons of ferromanganese from the 
National Defense Stockpile during fiscal year 2005.
    (b) Contingent Authority for Additional Disposal.--(1) If 
the Secretary of Defense completes the disposal of the total 
quantity of ferromanganese authorized for disposal by 
subsection (a) before September 30, 2005, the Secretary of 
Defense may dispose of up to an additional 25,000 tons of 
ferromanganese from the National Defense Stockpile before that 
date.
    (2) If the Secretary completes the disposal of the total 
quantity of additional ferromanganese authorized for disposal 
by paragraph (1) before September 30, 2005, the Secretary may 
dispose of up to an additional 25,000 tons of ferromanganese 
from the National Defense Stockpile before that date.
    (c) Certification.--The Secretary of Defense may dispose of 
ferromanganese under the authority of paragraph (1) or (2) of 
subsection (b) only if the Secretary submits written 
certification to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of 
Representatives, not later than 30 days before the commencement 
of disposal under the applicable paragraph, that--
            (1) the disposal of the additional ferromanganese 
        from the National Defense Stockpile is in the interest 
        of national defense;
            (2) the disposal of the additional ferromanganese 
        will not cause undue disruption to the usual markets of 
        producers and processors of ferromanganese in the 
        United States; and
            (3) the disposal of the additional ferromanganese 
        is consistent with the requirements and purpose of the 
        National Defense Stockpile.
    (d) Delegation of Responsibility.--The Secretary of Defense 
may delegate the responsibility of the Secretary under 
subsection (c) to an appropriate official within the Department 
of Defense.
    (e) National Defense Stockpile Defined.--In this section, 
the term ``National Defense Stockpile'' means the stockpile 
provided for in section 4 of the Strategic and Critical 
Materials Stock Piling Act (50 U.S.C. 98c).

SEC. 3304. PROHIBITION ON STORAGE OF MERCURY AT CERTAIN FACILITIES.

    (a) Prohibition.--During fiscal year 2005, the Secretary of 
Defense may not store mercury from the National Defense 
Stockpile at any facility that is not owned or leased by the 
United States.
    (b) National Defense Stockpile Defined.--In this section, 
the term ``National Defense Stockpile'' means the stockpile 
provided for in section 4 of the Strategic and Critical 
Materials Stock Piling Act (50 U.S.C. 98c).

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

    (a) Authorization of Appropriations.--There are hereby 
authorized to be appropriated to the Secretary of Energy 
$20,000,000 for fiscal year 2005 for the purpose of carrying 
out activities under chapter 641 of title 10, United States 
Code, relating to the naval petroleum reserves.
    (b) Period of Availability.--Funds appropriated pursuant to 
the authorization of appropriations in subsection (a) shall 
remain available until expended.

                  TITLE XXXV--MARITIME ADMINISTRATION

Sec. 3501. Authorization of appropriations for Maritime Administration.
Sec. 3502. Extension of authority to provide war risk insurance for 
          merchant marine vessels.
Sec. 3503. Modification of priority afforded applications for national 
          defense tank vessel construction assistance.

SEC. 3501. AUTHORIZATION OF APPROPRIATIONS FOR MARITIME ADMINISTRATION.

    There are authorized to be appropriated to the Secretary of 
Transportation for the Maritime Administration for fiscal year 
2005 (in lieu of amounts authorized for the same purposes by 
section 3511 of the National Defense Authorization Act for 
Fiscal Year 2004)--
            (1) for expenses necessary for operations and 
        training activities, $109,300,000;
            (2) for administrative expenses under the loan 
        guarantee program authorized by title XI of the 
        Merchant Marine Act, 1936 (46 U.S.C. App. 1271 et 
        seq.), $4,764,000; and
            (3) for ship disposal, $35,000,000, of which 
        $2,000,000 shall be for decommissioning, removal, and 
        disposal of the nuclear reactor and hazardous materials 
        on board the vessel SAVANNAH.

SEC. 3502. EXTENSION OF AUTHORITY TO PROVIDE WAR RISK INSURANCE FOR 
                    MERCHANT MARINE VESSELS.

    (a) Extension.--Section 1214 of the Merchant Marine Act, 
1936 (46 U.S.C. App. 1294), is amended by striking ``June 30, 
2005'' and inserting ``December 31, 2010''.
    (b) Investment of Assets in Insurance Fund.--Section 
1208(a) of such Act (46 U.S.C. App. 1288), is amended by 
striking the third sentence and inserting the following: ``The 
Secretary of Transportation may request the Secretary of the 
Treasury to invest such portion of the Fund as is not, in the 
judgment of the Secretary of Transportation, required to meet 
the current needs of the fund. Such investments shall be made 
by the Secretary of the Treasury in public debt securities of 
the United States, with maturities suitable to the needs of the 
fund, and bearing interest rates determined by the Secretary of 
the Treasury, taking into consideration current market yields 
on outstanding marketable obligations of the United States of 
comparable maturity.''.

SEC. 3503. MODIFICATION OF PRIORITY AFFORDED APPLICATIONS FOR NATIONAL 
                    DEFENSE TANK VESSEL CONSTRUCTION ASSISTANCE.

    Section 3542(d)(2) of the Maritime Security Act of 2003 
(title XXXV of Public Law 108-136; 117 Stat. 1821; 46 U.S.C. 
53101 note) is amended--
            (1) in subparagraph (A), by striking ``and'' at the 
        end;
            (2) in subparagraph (B) by striking the period at 
        the end and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(C) with respect to any proposal for 
                financial assistance to be provided from 
                amounts appropriated for a fiscal year after 
                fiscal year 2005, acceptance of the vessel to 
                be constructed with the assistance for 
                participation in the Shipboard Technology 
                Evaluation Program as outlined in Navigation 
                and Vessel Inspection Circular 01-04, issued by 
                the Commandant of the United States Coast Guard 
                on January 2, 2004.''.

                TITLE XXXVI--ASSISTANCE TO FIREFIGHTERS

Sec. 3601. Short title.
Sec. 3602. Amendments to Federal Fire Prevention and Control Act of 
          1974.
Sec. 3603. Report on assistance to firefighters.

SEC. 3601. SHORT TITLE.

    This title may be cited as the ``Assistance to Firefighters 
Grant Program Reauthorization Act of 2004''.

SEC. 3602. AMENDMENTS TO FEDERAL FIRE PREVENTION AND CONTROL ACT OF 
                    1974.

    Section 33 of the Federal Fire Prevention and Control Act 
of 1974 (15 U.S.C. 2229) is amended--
            (1) in subsection (b)(1)(A)--
                    (A) by inserting ``throughout the Nation'' 
                after ``personnel''; and
                    (B) by striking ``and'' at the end;
            (2) in subsection (b)(1)(B)--
                    (A) by inserting ``and firefighter safety 
                research and development'' after ``fire 
                prevention''; and
                    (B) by striking the period and inserting 
                ``; and'';
            (3) by adding at the end of subsection (b)(1) the 
        following new subparagraph:
                    ``(C) provide assistance for nonaffiliated 
                EMS organizations for the purpose of paragraph 
                (3)(F).'';
            (4) in subsection (b)(3)(F), by inserting ``and 
        nonaffiliated EMS organizations'' after ``fire 
        departments'';
            (5) in subsection (b)(4)--
                    (A) by inserting ``and firefighter safety 
                research and development'' after ``prevention'' 
                in the paragraph heading;
                    (B) in subparagraph (A)(ii)--
                            (i) by inserting ``that are not 
                        fire departments and'' after 
                        ``community organizations'';
                            (ii) by inserting ``and firefighter 
                        research and development programs,'' 
                        after ``fire safety programs and 
                        activities,''; and
                            (iii) by inserting ``and research 
                        to improve firefighter health and life 
                        safety'' after ``fire prevention 
                        programs'';
                    (C) in subparagraph (B), by striking ``to 
                children from fire'' and inserting ``to high 
                risk groups from fire, as well as research 
                programs that demonstrate the potential to 
                improve firefighter safety''; and
                    (D) by adding at the end the following new 
                subparagraph:
                    ``(C) Grant limitation.--A grant under this 
                paragraph shall not be greater than $1,000,000 
                for a fiscal year.'';
            (6) in subsection (b)(5)(B)--
                    (A) by redesignating clause (iv) as clause 
                (v); and
                    (B) by inserting after clause (iii) the 
                following new clause:
                            ``(iv) Other federal support.--A 
                        list of other sources of Federal 
                        funding received by the applicant. The 
                        Director, in coordination with the 
                        Secretary of Homeland Security, shall 
                        use such list to prevent unnecessary 
                        duplication of grant funds.''.
            (7) in subsection (b)(6), by striking subparagraphs 
        (A) and (B) and inserting the following:
                    ``(A) In general.--Subject to subparagraphs 
                (B) and (C), the Director may provide 
                assistance under this subsection only if the 
                applicant for such assistance agrees to match 
                20 percent of such assistance for any fiscal 
                year with an equal amount of non-Federal funds.
                    ``(B) Requirement for small community 
                organizations.--In the case of an applicant 
                whose personnel--
                            ``(i) serve jurisdictions of 50,000 
                        or fewer residents, the percent applied 
                        under the matching requirement of 
                        subparagraph (A) shall be 10 percent; 
                        and
                            ``(ii) serve jurisdictions of 
                        20,000 or fewer residents, the percent 
                        applied under the matching requirement 
                        of subparagraph (A) shall be 5 percent.
                    ``(C) Fire prevention and firefighter 
                safety grants.--There shall be no matching 
                requirement for a grant described in paragraph 
                (4)(A)(ii).'';
            (8) in subsection (b)(10)--
                    (A) by amending subparagraph (A) to read as 
                follows:
                    ``(A) Recipient limitations.--A grant 
                recipient under subsection (b)(1)(A)--
                            ``(i) that serves a jurisdiction 
                        with 500,000 people or less may not 
                        receive grants in excess of $1,000,000 
                        for any fiscal year;
                            ``(ii) that serves a jurisdiction 
                        with more than 500,000 but not more 
                        than 1,000,000 people may not receive 
                        grants in excess of $1,750,000 for any 
                        fiscal year; and
                            ``(iii) that serves a jurisdiction 
                        with more than 1,000,000 people may not 
                        receive grants in excess of $2,750,000 
                        for any fiscal year.
                The Director may award grants in excess of the 
                limitations provided in clause (i) and (ii) if 
                the Director determines that extraordinary need 
                for assistance by a jurisdiction warrants a 
                waiver.'';
                    (B) by redesignating subparagraph (B) as 
                subparagraph (C);
                    (C) by inserting after subparagraph (A) the 
                following new subparagraph:
                    ``(B) Distribution.--Notwithstanding 
                subparagraph (A), no single recipient may 
                receive more than the lesser of $2,750,000 or 
                one half of one percent of the funds 
                appropriated under this section for a single 
                fiscal year.''; and
                    (D) by adding at the end the following new 
                subparagraphs:
                    ``(D) Requirements for grants for emergency 
                medical services.--Subject to the restrictions 
                in subparagraph (E), not less than 3.5 percent 
                of the funds appropriated under this section 
                for a fiscal year shall be awarded for purposes 
                described in paragraph (3)(F).
                    ``(E) Nonaffiliated ems limitation.--Not 
                more than 2 percent of the funds appropriated 
                to provide grants under this section for a 
                fiscal year shall be awarded to nonaffiliated 
                EMS organizations.
                    ``(F) Application of selection criteria to 
                grant applications from nonaffiliated ems 
                organizations.--In reviewing applications 
                submitted by nonaffiliated EMS organizations, 
                the Director shall consider the extent to which 
                other sources of Federal funding are available 
                to provide assistance requested in such grant 
                applications.'';
            (9) in subsection (b), by adding at the end the 
        following new paragraphs:
            ``(13) Annual meeting.--The Director shall convene 
        an annual meeting of individuals who are members of 
        national fire service organizations and are recognized 
        for expertise in firefighting or emergency medical 
        services provided by fire services, and who are not 
        employees of the Federal Government, for the purpose of 
        recommending criteria for awarding grants under this 
        section for the next fiscal year and recommending any 
        necessary administrative changes to the grant program.
            ``(14) Guidelines.--(A) Each year, prior to making 
        any grants under this section, the Director shall 
        publish in the Federal Register--
                    ``(i) guidelines that describe the process 
                for applying for grants and the criteria for 
                awarding grants; and
                    ``(ii) an explanation of any differences 
                between the guidelines and the recommendations 
                made pursuant to paragraph (13).
            ``(B) The criteria for awarding grants under 
        subsection (b)(1)(A) shall include the extent to which 
        the grant would enhance the daily operations of the 
        applicant and the impact of such a grant on the 
        protection of lives and property.
            ``(15) Peer review.--The Director shall, after 
        consultation with national fire service organizations, 
        appoint fire service personnel to conduct peer review 
        of applications received under paragraph (5). In making 
        grants under this section, the Director shall consider 
        the results of such peer review evaluations.
            ``(16) Applicability of federal advisory committee 
        act.--The Federal Advisory Committee Act (5 U.S.C. 
        App.) shall not apply to activities under paragraphs 
        (13) and (15).
            ``(17) Accounting determination.--Notwithstanding 
        any other provision of law, rule, regulation, or 
        guidance, for purposes of receiving assistance under 
        this section, equipment costs shall include, but not be 
        limited to, all costs attributable to any design, 
        purchase of components, assembly, manufacture, and 
        transportation of equipment not otherwise commercially 
        available.'';
            (10) by amending subsection (d) to read as follows:
    ``(d) Definitions.--In this section--
            ``(1) the term `Director' means the Director, 
        acting through the Administrator;
            ``(2) the term `nonaffiliated EMS organization' 
        means a public or private nonprofit emergency medical 
        services organization that is not affiliated with a 
        hospital and does not serve a geographic area in which 
        the Director finds that emergency medical services are 
        adequately provided by a fire department; and
            ``(3) the term `State' includes the District of 
        Columbia and the Commonwealth of Puerto Rico.''; and
            (11) in subsection (e)(1), by striking the first 
        sentence and inserting ``There are authorized to be 
        appropriated for the purposes of this section 
        $900,000,000 for fiscal year 2005, $950,000,000 for 
        fiscal year 2006, and $1,000,000,000 for each of the 
        fiscal years 2007 through 2009.''.

SEC. 3603. REPORT ON ASSISTANCE TO FIREFIGHTERS.

    (a) Study and Report on Assistance to Firefighters.--
            (1) Study.--The Administrator of the United States 
        Fire Administration, in conjunction with the National 
        Fire Protection Association, shall conduct a study to--
                    (A) define the current roles and activities 
                associated with the fire services on a 
                national, State, regional, and local level;
                    (B) identify the equipment, staffing, and 
                training required to fulfill the roles and 
                activities defined under subparagraph (A);
                    (C) conduct an assessment to identify gaps 
                between what fire departments currently possess 
                and what they require to meet the equipment, 
                staffing, and training needs identified under 
                subparagraph (B) on a national and State-by-
                State basis; and
                    (D) measure the impact of the Assistance to 
                Firefighters Grant program under section 33 of 
                the Federal Fire Prevention and Control Act of 
                1974 (15 U.S.C. 2229) in meeting the needs of 
                the fire services identified in the report 
                submitted to Congress under section 1701(b) of 
                the Floyd D. Spence National Defense 
                Authorization Act for Fiscal Year 2001 and 
                filling the gaps identified under subparagraph 
                (C).
            (2) Report.--Not later than 18 months after the 
        date of enactment of this Act, the Administrator shall 
        submit to the Committee on Commerce, Science, and 
        Transportation of the Senate and the Committee on 
        Science of the House of Representatives a report on the 
        findings of the study described in paragraph (1).
    (b) Authorization of Appropriations.--There are authorized 
to be appropriated to the United States Fire Administration 
$300,000 for fiscal year 2005 to carry out the study required 
by subsection (a).
    And the Senate agree to the same.

                From the Committee on Armed Services, for 
                consideration of the House bill and the Senate 
                amendment, and modifications committed to 
                conference:
                                   Duncan Hunter,
                                   Curt Weldon,
                                   Joel Hefley,
                                   Jim Saxton,
                                   John M. McHugh,
                                   Terry Everett,
                                   Roscoe G. Bartlett,
                                   Howard P. ``Buck'' McKeon,
                                   Mac Thornberry,
                                   John N. Hostettler,
                                   Jim Ryun,
                                   Jim Gibbons,
                                   Robin Hayes,
                                   Ken Calvert,
                                   Rob Simmons,
                                   Ike Skelton,
                                   John Spratt,
                                   Solomon P. Ortiz,
                                   Lane Evans,
                                   Neil Abercrombie,
                                   Martin T. Meehan,
                                   Silvestre Reyes,
                                   Vic Snyder,
                                   Jim Turner,
                                   Adam Smith,
                                   Loretta Sanchez,
                                   Baron Hill,
                From the Permanent Select Committee on 
                Intelligence, for consideration of matters 
                within the jurisdiction of that committee under 
                clause 11 of rule X:
                                   Pete Hoekstra,
                                   Ray LaHood,
                                   Jane Harman,
                From the Committee on Agriculture, for 
                consideration of sec. 1076 of the Senate 
                amendment, and modifications committed to 
                conference:
                                   Bob Goodlatte,
                                   Max Burns,
                                   Charles W. Stenholm,
                From the Committee on Education and the 
                Workforce, for consideration of secs. 590, 595, 
                596, 904, and 3135 of the House bill, and secs. 
                351, 352, 532, 533, 707, 868, 1079, 3143, and 
                3151-3157 of the Senate amendment, and 
                modifications committed to conference:
                                   Sam Johnson,
                                   Timothy Bishop,
                From the Committee on Government Reform, for 
                consideration of secs. 801, 806, 807, 825, 
                1061, 1101-1104, 2833, 2842, and 2843 of the 
                House bill, and secs. 801, 805, 832, 851, 852, 
                869, 870, 1034, 1059B, 1091, 1101, 1103-1107, 
                1110, 2823, 2824, 2833, and 3121 of the Senate 
                amendment, and modifications committed to 
                conference:
                                   Tom Davis,
                From the Committee on House Administration, for 
                consideration of secs. 572 and 1065 of the 
                Senate amendment, and modifications committed 
                to conference:
                                   Bob Ney,
                                   Vernon J. Ehlers,
                                   John B. Larson,
                From the Committee on International Relations, 
                for consideration of secs. 811, 1013, 1031, 
                1212, 1215, Title XIII, secs. 1401-1405, 1411, 
                1412, 1421, and 1422 of the house bill, and 
                secs. 1014, 1051-1053, 1058, 1059A, 1059B, 
                1070, Title XII, secs. 3131 and 3132 of the 
                Senate amendment, and modifications committed 
                to conference:
                                   Henry Hyde,
                                   James Leach,
                From the Committee on the Judiciary, for 
                consideration of secs. 551, 573, 616, 652, 825, 
                1075, 1078, 1105, 2833, 2842, and 2843 of the 
                House Bill, and secs. 620, 842, 1063, 1068, 
                1074, 1080-1082, 1101, 1106, 1107, 2821, 2823, 
                2824, 3143, 3146, 3151-3157, 3401-3410 of the 
                Senate amendment, and modifications committed 
                to conference:
                                   F. James Sensenbrenner, Jr.,
                                   Lamar Smith,
                From the Committee on Resources, for 
                consideration of secs. 601 and 2834 of the 
                House bill, and sec. 1076 of the Senate 
                amendment, and modifications committed to 
                conference:
                                   Greg Walden,
                                   Jay Inslee,
                From the Committee on Science, for 
                consideration of sec. 596 of the House bill and 
                secs. 1034, 1092, and Title XXXV of the Senate 
                amendment, and modifications committed to 
                conference:
                                   Sherwood Boehlert,
                                   Nick Smith,
                                   Bart Gordon,
                From the Committee on Small Business, for 
                consideration of secs. 807 and 3601 of the 
                House bill, and secs. 805, 822, 823, 912, and 
                1083 of the Senate amendment, and modifications 
                committed to conference:
                                   Donald A. Manzullo,
                                   Sue Kelly,
                From the Committee on Transportation and 
                Infrastructure, for consideration of secs. 555, 
                558, 596, 601, 905, 1051, 1063, 1072, and 3502 
                of the House bill, and sec. 321, 323, 325, 717, 
                1066, 1076, 1091, 2828, 2833-2836, and Title 
                XXXV of the Senate amendment, and modifications 
                committed to conference:
                                   Don Young,
                                   John J. Duncan, Jr.,
                                   Michael E. Capuano,
                From the Committee on Veterans' Affairs, for 
                consideration of secs. 2810 and 2831 of the 
                House bill, and secs. 642, 2821, and 2823 of 
                the Senate amendment, and modifications 
                committed to conference:
                                   Christopher H. Smith,
                From the Committee on Ways and Means, for 
                consideration of sec. 585 of the House bill, 
                and sec. 653 of the Senate amendment, and 
                modifications committed to conference:
                                   E. Clay Shaw, Jr.,
                                   Dave Camp,
                                 Managers on the Part of the House.

                                   John W. Warner,
                                   John McCain,
                                   Pat Roberts,
                                   Wayne Allard,
                                   Jeff Sessions,
                                   Susan M. Collins,
                                   John Ensign,
                                   Jim Talent,
                                   Saxby Chambliss,
                                   Lindsey Graham,
                                   Elizabeth Dole,
                                   John Cornyn,
                                   Carl Levin,
                                   Edward M. Kennedy,
                                   Robert C. Byrd,
                                   Joe Lieberman,
                                   Jack Reed,
                                   Daniel K. Akaka,
                                   Bill Nelson,
                                   E. Benjamin Nelson,
                                   Mark Dayton,
                                   Evan Bayh,
                                   Hillary Rodham Clinton,
                                   Mark Pryor,
                                Managers on the Part of the Senate.
       Joint Explanatory Statement of the Committee of Conference

      The managers on the part of the House and the Senate at 
the conference on the disagreeing votes of the two Houses on 
the amendment of the Senate to the bill (H.R. 4200), to 
authorize appropriations for fiscal year 2005 for military 
activities of the Department of Defense, for military 
construction, and for defense activities of the Department of 
Energy, to prescribe personnel strengths for such fiscal year 
for the Armed Forces, and for other purposes, submit the 
following joint statement to the House and the Senate in 
explanation of the effect of the action agreed upon by the 
managers and recommended in the accompanying conference report:
      The Senate amendment struck all of the House bill after 
the enacting clause and inserted a substitute text.
      The House recedes from its disagreement to the amendment 
of the Senate with an amendment that is a substitute for the 
House bill and the Senate amendment. The differences between 
the House bill, the Senate amendment, and the substitute agreed 
to in conference are noted below, except for clerical 
corrections, conforming changes made necessary by agreements 
reached by the conferees, and minor drafting and clarifying 
changes.

                Summary Statement of Conference Actions

      The Conferees recommend authorization of appropriations 
for fiscal year 2005 for the Department of Defense for 
procurement; research and development; test and evaluation; 
operation and maintenance; working capital funds; military 
construction and family housing; and for weapons and 
environmental restoration programs of the Department of Energy; 
that have a budget authority implication of $445.6 billion for 
the national defense function.
Summary table of authorizations
      The defense authorization act provides authorizations for 
appropriations but does not generally provide budget authority. 
Budget authority is provided in the appropriations act.
      In order to relate the conference recommendations to the 
budget resolution, matters in addition to the dollar 
authorizations contained in this bill must be taken into 
account. A number of programs in the national defense function 
are authorized in other legislation.
      The following table summarizes authorizations included in 
the bill for fiscal year 2005 and, in addition, summarizes the 
implications of the conference action for the budget authority 
totals for national defense (budget function 050).


                          TITLE I--PROCUREMENT

Procurement Overview
      The budget request for fiscal year 2005 included an 
authorization of $74,653.3 million in Procurement for the 
Department of Defense.
      The House bill would authorize $76,278.7 million.
      The Senate amendment would authorize $76,467.1 million.
      The conferees recommend an authorization of $74,183.0 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Aircraft Procurement, Army Overview
      The budget request for fiscal year 2005 included an 
authorization of $2,658.2 million in Aircraft Procurement, Army 
for the Department of Defense.
      The House bill would authorize $2,809.9 million.
      The Senate amendment would authorize $2,702.6 million.
      The conferees recommend an authorization of $2,611.5 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Missile Procurement, Army Overview
      The budget request for fiscal year 2005 included an 
authorization of $1,398.3 million in Missile Procurement, Army 
for the Department of Defense.
      The House bill would authorize $1,504.3 million.
      The Senate amendment would authorize $1,488.3 million.
      The conferees recommend an authorization of $1,307.0 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Procurement of Weapons and Tracked Combat Vehicles, Army Overview
      The budget request for fiscal year 2005 included an 
authorization of $1,639.7 million in Procurement of Weapons and 
Tracked Combat Vehicles, Army for the Department of Defense.
      The House bill would authorize $1,739.7 million.
      The Senate amendment would authorize $1,698.6 million.
      The conferees recommend an authorization of $1,702.7 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Procurement of Ammunition, Army Overview
      The budget request for fiscal year 2005 included an 
authorization of $1,556.9 million in Procurement of Ammunition, 
Army for the Department of Defense.
      The House bill would authorize $1,729.4 million.
      The Senate amendment would authorize $1,598.3 million.
      The conferees recommend an authorization of $1,545.7 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Other Procurement, Army Overview
      The budget request for fiscal year 2005 included an 
authorization of $4,240.9 million in Other Procurement, Army 
for the Department of Defense.
      The House bill would authorize $4,309.6 million.
      The Senate amendment would authorize $5,383.3 million.
      The conferees recommend an authorization of $4,345.2 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Aircraft Procurement, Navy Overview
      The budget request for fiscal year 2005 included an 
authorization of $8,767.9 million in Aircraft Procurement, Navy 
for the Department of Defense.
      The House bill would authorize $8,912.7 million.
      The Senate amendment would authorize $8,870.8 million.
      The conferees recommend an authorization of $8,814.4 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Weapons Procurement, Navy Overview
      The budget request for fiscal year 2005 included an 
authorization of $2,101.5 million in Weapons Procurement, Navy 
for the Department of Defense.
      The House bill would authorize $2,253.5 million.
      The Senate amendment would authorize $2,183.8 million.
      The conferees recommend an authorization of $2,067.5 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Procurement of Ammunition, Navy and Marine Corps Overview
      The budget request for fiscal year 2005 included an 
authorization of $858.6 million in Procurement of Ammunition, 
Navy and Marine Corps for the Department of Defense.
      The House bill would authorize $870.8 million.
      The Senate amendment would authorize $873.1 million.
      The conferees recommend an authorization of $878.1 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Shipbuilding and Conversion, Navy Overview
      The budget request for fiscal year 2005 included an 
authorization of $9,962.0 million in Shipbuilding and 
Conversion, Navy for the Department of Defense.
      The House bill would authorize $10,120.0 million.
      The Senate amendment would authorize $10,127.0 million.
      The conferees recommend an authorization of $10,116.8 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Other Procurement, Navy Overview
      The budget request for fiscal year 2005 included an 
authorization of $4,834.3 million in Other Procurement, Navy 
for the Department of Defense.
      The House bill would authorize $4,876.7 million.
      The Senate amendment would authorize $4,905.0 million.
      The conferees recommend an authorization of $4,633.9 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Procurement, Marine Corps Overview
      The budget request for fiscal year 2005 included an 
authorization of $1,190.1 million in Procurement, Marine Corps 
for the Department of Defense.
      The House bill would authorize $1,315.1 million.
      The Senate amendment would authorize $1,302.7 million.
      The conferees recommend an authorization of $1,268.5 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Aircraft Procurement, Air Force Overview
      The budget request for fiscal year 2005 included an 
authorization of $13,163.2 million in Aircraft Procurement, Air 
Force for the Department of Defense.
      The House bill would authorize $13,649.2 million.
      The Senate amendment would authorize $13,035.7 million.
      The conferees recommend an authorization of $13,228.1 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


F/A-22 aircraft
      The budget request included $4.128 billion for the 
procurement of 24 F/A-22 aircraft.
      The House bill would authorize the budget request.
      The Senate amendment would authorize $3.848 billion for 
the procurement of 22 F/A-22 aircraft, a reduction of $280.2 
million. The Senate amendment also included language that would 
allow the Air Force to procure more than 22 aircraft with the 
authorized funds if the Secretary of the Air Force certifies 
that the contractual delivery schedule is being met and that 
the program is fully funded.
      The conferees agree to authorize $4.098 billion for the 
procurement of 24 F/A-22 aircraft, a reduction of $30.0 
million. The conferees agree that the certification required in 
the Senate amendment is not required to procure more than 22 
aircraft.
Procurement of Ammunition, Air Force Overview
      The budget request for fiscal year 2005 included an 
authorization of $1,396.5 million in Procurement of Ammunition, 
Air Force for the Department of Defense.
      The House bill would authorize $1,396.5 million.
      The Senate amendment would authorize $1,396.5 million.
      The conferees recommend an authorization of $1,319.0 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Missile Procurement, Air Force Overview
      The budget request for fiscal year 2005 included an 
authorization of $4,718.3 million in Missile Procurement, Air 
Force for the Department of Defense.
      The House bill would authorize $4,611.3 million.
      The Senate amendment would authorize $4,635.6 million.
      The conferees recommend an authorization of $4,548.5 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Other Procurement, Air Force Overview
      The budget request for fiscal year 2005 included an 
authorization of $13,283.6 million in Other Procurement, Air 
Force for the Department of Defense.
      The House bill would authorize $13,229.3 million.
      The Senate amendment would authorize $13,298.3 million.
      The conferees recommend an authorization of $12,949.3 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Procurement, Defense-Wide Overview
      The budget request for fiscal year 2005 included an 
authorization of $2,883.3 million in Procurement, Defense-wide 
for the Department of Defense.
      The House bill would authorize $2,950.7 million.
      The Senate amendment would authorize $2,967.4 million.
      The conferees recommend an authorization of $2,846.6 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


                       Items of Special Interest

Joint surveillance and target attack radar system re-engining
      The conference report accompanying the National Defense 
Authorization Act for Fiscal Year 2004 (Public Law 108-136) 
included a requirement for the Secretary of Defense to submit a 
report to the congressional defense committees by February 13, 
2004, that provides an economic analysis of options for 
maintaining engines for the E-8C joint surveillance and target 
attack radar system (JSTARS) aircraft. In the Senate report 
accompanying S. 2400 (S. Rept. 108-260), the committee noted 
that although the required report had not yet been received 
from the Department of Defense, the committee encouraged the 
Air Force to take into account the recommendations of the 
report when deciding what to do with the JSTARS fleet.
      The congressional defense committees received the 
required report on July 8, 2004. The report states that there 
are both economic and operational advantages to acquiring new 
engines for the JSTARS aircraft, but the letter accompanying 
the report states that the Department's preferred solution is 
to maintain the current engines while carefully considering the 
need for JSTARS re-engining in the fiscal year 2006 budget 
request. Since the current engines have significant operational 
shortfalls and since maintaining the current engines would be 
more costly in terms of total life cycle costs than any option 
that would acquire new engines, the conferees encourage the 
Secretary to reevaluate the decision to maintain the current 
engines in the JSTARS fleet of aircraft.
Halvorsen loaders
      The conferees are aware that as a result of the global 
war on terrorism, the Air Force has been required to 
significantly expand its expeditionary logistics capability. 
The conferees note Halvorsen 25K loaders play a significant 
role in material handling and are currently in use around the 
world, including Iraq and Afghanistan.
      The Commander, U.S. Transportation Command (USTRANSCOM) 
has a stated mobility requirement for 618 Halvorsen 25K 
loaders, of which 316 have been acquired between the fiscal 
years 2000-2004. Given the high operational tempo in air 
mobility missions and heavy use of the Air Force's mobility and 
material handling equipment (MHE) fleet, the Congress increased 
funding for this program in fiscal year 2004 and fiscal year 
2005 to help meet the requirements for USTRANSCOM.
      The conferees encourage the Air Force to continue its 
effort to modernize its MHE to include planning and funding for 
the Halvorsen 25K loader program.

                     Legislative Provisions Adopted

              Subtitle A--Authorization of Appropriations

Authorization of appropriations (sec. 101-104)
      The House bill contained provisions (sec. 101-104) that 
would authorize the recommended fiscal year 2005 funding levels 
for procurement, Army, Navy, Marine Corps, Air Force, and 
Defense-wide activities.
      The Senate amendment contained similar provisions (secs. 
101-104).
      The conference agreement includes these provisions.

                       Subtitle B--Army Programs

Multiyear procurement authority for the lightweight 155-millimeter 
        howitzer program (sec. 111)
      The House bill contained a provision (sec. 111) that 
would permit the Secretary of the Army and the Secretary of the 
Navy to enter into a joint service, multiyear contract for 
procurement of the lightweight 155 millimeter howitzer.
      The Senate amendment contained a provision (sec. 122) 
that would authorize the Secretary of the Navy to enter into a 
multiyear contract for procurement of the lightweight 155 
millimeter howitzer.
      The Senate recedes.
Light utility helicopter program (sec. 112)
      The Senate amendment contained a provision (sec. 111) 
that would preclude authorization of appropriations for the 
procurement of light utility helicopters until the Secretary of 
the Army provides a report to the congressional defense 
committees. The report will include: (1) The Secretary's 
certification that all required documentation for the 
acquisition of light utility helicopters has been completed and 
approved; (2) an updated Army Aviation modernization plan that 
contains detailed justification and information which affected 
the decision to terminate the Comanche helicopter program; and 
(3) a summary and copy of the results of the analysis of 
alternatives that the Secretary considered in the determination 
to procure light utility helicopters, including the analysis of 
alternatives of using light armed reconnaissance helicopters 
and UH-60 Black Hawk helicopters instead of light utility 
helicopters.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.

                       Subtitle C--Navy Programs

DDG-51 modernization program (sec. 121)
      The House bill contained a provision (sec. 112) that 
would require the Secretary of the Navy to accelerate the 
modernization program for the DDG-51 Arleigh Burke-class of 
destroyers. The provision would also require the Secretary to 
place emphasis in this program on determining a means by which 
the crew size on this class of ships could be reduced from 
approximately 300 to about 200. The provision would also 
require the Secretary to submit a report to the congressional 
defense committees by March 31, 2005, on the steps taken in 
this program.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would modify 
the reporting requirement so that the report would include the 
elements of the modernization program, and specify those 
elements of the program that are expected to contribute to the 
goal of reducing the crew size on this class of ships by one-
third and explain the basis for those expectations.
Repeal of authority for pilot program for flexible funding of cruiser 
        conversions and overhauls (sec. 122)
      The House bill contained a provision (sec. 113) that 
would repeal section 126 of the National Defense Authorization 
Act for Fiscal Year 2004 (Public Law 108-136, 117 Stat. 1410, 
U.S.C. 7291 note).
      The Senate amendment contained no similar provision.
      The Senate recedes.
LHA(R) amphibious assault ship program (sec. 123)
      The Senate amendment contained a provision (sec. 121) 
that would authorize the Secretary of the Navy to procure the 
first amphibious ship of the LHA(R) class. It would also 
authorize $150.0 million of shipbuilding and conversion funds, 
and authorize the Secretary of the Navy to enter into a 
contract or contracts for the advance procurement and advance 
construction of components for this ship with these funds.
      The House bill contained no similar provision.
      The House recedes.

                     Subtitle D--Air Force Programs

Prohibition of retirement of KC-135E aircraft (sec. 131)
      The Senate amendment contained a provision (sec. 131) 
that would prohibit the Secretary of the Air Force from 
retiring any KC-135E aerial refueling aircraft in fiscal year 
2005.
      The House bill contained no similar provision.
      The House recedes.
Prohibition of retirement of F-117 aircraft (sec. 132)
      The Senate amendment contained a provision (sec. 132) 
that would prohibit any F-117 aircraft in use by the Air Force 
in fiscal year 2004 from being retired in fiscal year 2005.
      The House bill contained no similar provision.
      The House recedes.
Aerial refueling aircraft acquisition program (sec. 133)
      The House bill contained a provision (sec. 116) that 
would authorize the Secretary of the Air Force to enter into a 
multiyear procurement contract for 80 tanker aerial refueling 
aircraft beginning in fiscal year 2005, for a period of up to 
eight years. The provision would also repeal section subsection 
(b) of 135 of the National Defense Authorization Act for Fiscal 
Year 2004 (Public Law 108-136). The provision would prohibit 
this multiyear procurement from being executed under the 
authority of either section 135 of the National Defense 
Authorization Act for Fiscal Year 2004 (Public Law 108-36) or 
section 8159 of the Department of Defense Appropriations Act, 
2002 (division A of Public Law 107-117).
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would amend 
section 135 of the National Defense Authorization Act for 
Fiscal Year 2004 (Public Law 108-136) to: (1) provide that no 
tanker aircraft can be leased under the multiyear aircraft 
lease pilot program previously established under section 8159 
of the Department of Defense Appropriations Act for Fiscal Year 
2002; (2) authorize a multiyear procurement of up to 100 aerial 
refueling aircraft, for a period not to exceed ten program 
years; (3) prohibit the use of incremental funding for the 
multiyear contract; and (4) remove reference to leasing of 
aircraft throughout the provision.

                       Subtitle E--Other Matters

Development of deployable systems to include consideration of force 
        protection in asymmetric threat environment (sec. 141)
      The House Bill contained a provision (sec. 114) that 
would require that all manned ground systems, warfighter 
survivability systems, and certain manned airborne systems be 
assessed annually for adequacy in survivability and suitability 
against asymmetrical threats. The provision also requires the 
secretary of each military department to implement force 
protection and survivability enhancements for all assessed 
systems. Finally, the provision requires that the Secretary of 
Defense ensure that developmental military system designs 
account for survivability and suitability against asymmetrical 
threats.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary of Defense to revise defense regulations, 
directives, and guidance to account for survivability and 
suitability against asymmetric threats in developing any manned 
system and any equipment intended to enhance personnel 
survivability.
Allocation of equipment authorized by this title to units deployed, or 
        to be deployed to Operation Iraqi Freedom or Operation Enduring 
        Freedom (sec. 142)
      The House bill contained a provision (sec. 115) that 
would require the Secretary of Defense to give priority to 
those operational units that are deployed to, or preparing to 
deploy to, Operation Iraqi Freedom or Operation Enduring 
Freedom, regardless of the status of those units as Active, 
Guard, or Reserve component units, when allocating equipment 
acquired using funds authorized to be appropriated by the 
National Defense Authorization Act for Fiscal Year 2005.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary to ensure that the allocation of equipment 
acquired using funds authorized to be appropriated by this 
title to operational units deployed, or scheduled to be 
deployed, to Operation Iraqi Freedom or Operation Enduring 
Freedom is made without regard to the status of the units as 
Active, Guard, or Reserve component.
Report on options for acquisition of precision-guided munitions (sec. 
        143)
      The Senate amendment contained a provision (sec. 141) 
that would require the Secretary of Defense to provide a report 
on options for the acquisition of precision-guided weapons at 
various production rates, to include the cost for these 
options.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment that would 
require the report to identify the required costs for each 
precision-guided munition at the various production rates for 
each year in the future-years defense program.

                   Legislative Provisions Not Adopted

Up-armored high mobility multi-purpose wheeled vehicles or wheeled 
        vehicle ballistic add-on armor protection
      The Senate amendment contained a provision (sec. 112) 
that would authorize an increase of $610.0 million in Other 
Procurement, Army (OPA), for the procurement of additional up-
armored high mobility multi-purpose wheeled vehicles at a rate 
up to 450 per month or wheeled vehicle ballistic add-on armor 
protection, the amount of which to be determined and reported 
by the Secretary of the Army.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees agree to authorize an increase of $572.0 
million in OPA for the procurement of additional up-armored 
high mobility multi-purpose wheeled vehicles at a rate up to 
450 per month, and an increase of $100.0 million for wheeled 
vehicle ballistic add-on armor protection.
Command and control vehicles or field artillery ammunition support 
        vehicles
      The Senate amendment contained a provision (sec. 113) 
that would authorize an increase of $5.0 million in Weapons and 
Tracked Combat Vehicles, Army, for the procurement of new 
production command and control vehicles or field artillery 
ammunition support vehicles.
      The House bill contained no similar provision.
      The Senate recedes.
Other matters relating to KC-767 tanker aircraft acquisition program
      The House bill contained a provision (sec. 117) that 
would express a Sense of Congress about the criticality of the 
aerial refueling mission, the need to proceed with a program to 
replace the current fleet of aerial refueling aircraft, taking 
advantage of the U.S. commercial aircraft production base, and 
encouraging the investigation and prosecution of anyone 
suspected of improper or illegal activities. The provision 
would also require the Secretary of the Air Force to enter into 
one or more contracts for the multi-year tanker program no 
later than March 1, 2005. The provision would also require a 
review by an outside panel of any proposed contract for the 
multi-year tanker program, and required a report of this review 
be provided to the Secretary of the Air Force and the 
congressional defense committees.
      The Senate amendment contained no similar provision.
      The House recedes.
Additional amount for Patriot missile procurement
      The House bill contained a provision (sec. 118) that 
would increase funds available for procurement of Patriot 
missiles by $90.0 million and offset the increase with 
reductions to several other accounts.
      The Senate amendment contained no similar provision.
      The House recedes.
Transfer of certain Army procurement funds
      The House bill contained a provision (sec. 119) that 
would authorize an increase of $2.0 million for the Aircraft 
Wireless Intercom System and $2.0 million for bladefold kits 
for Apache helicopters, in Aircraft Procurement, Army, offset 
by a commensurate amount from funds for information systems in 
Other Procurement, Army.
      The Senate amendment contained no similar provision.
      The House recedes.
Pilot program for flexible funding of submarine engineered refueling 
        overhaul and conversion
      The Senate amendment contained a provision (sec. 123) 
that would authorize the Secretary of the Navy to carry out a 
pilot program of flexible funding of engineered refueling 
overhauls (EROs) and conversions of submarines. The provision 
would allow the transfer of authorization of appropriations to 
provide flexibility in the accomplishment of these EROs, and 
set certain limitations on these transfers.
      The House bill contained no similar provision.
      The Senate recedes.
Senior Scout mission bed-down initiative
      The Senate amendment contained a provision (sec. 133) 
that would authorize an increase of $2.0 million in Aircraft 
Procurement, Air Force for a bed-down initiative to enable the 
C-130 aircraft of the Idaho Air National Guard to be the 
permanent carrier of the Senior Scout mission shelters of the 
169th Intelligence Squadron of the Utah Air National Guard.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees agree to authorize an increase of $1.4 
million in Aircraft Procurement, Air Force for the bed-down 
initiative.
         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

Research, Development, Test and Evaluation Overview
      The budget request for fiscal year 2005 included an 
authorization of $67,772.3 million in Research and Development 
for the Department of Defense.
      The House bill would authorize $68,090.4 million.
      The Senate amendment would authorize $68,608.7 million.
      The conferees recommend an authorization of $66,497.8 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


                                  ARMY

Research, Development, Test and Evaluation, Army Overview
      The budget request for fiscal year 2005 included an 
authorization of $9,266.3 million in Research, Development, 
Test and Evaluation, Army for the Department of Defense.
      The House bill would authorize $9,478.2 million.
      The Senate amendment would authorize $9,690.5 million.
      The conferees recommend an authorization of $9,307.2 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Advanced battery technology initiative
      The budget request included $41.2 million in PE 62705A 
for applied research in electronics and electronic devices.
      The House bill would authorize an increase of $20.0 
million in PE 62705A for an advanced battery technology 
initiative.
      The Senate amendment contained no similar authorization.
      The conferees agree to authorize an increase of $15.6 
million in PE 62705A for an advanced battery technology 
initiative, which would fund programs selected on the basis of 
technical merit, cost effectiveness, and potential to meet 
service requirements, including the following areas: alkaline 
cylindrical cells; cylindrical zinc air batteries; high 
capacity nickel/zinc rechargeable cells; lithium battery 
technologies; lithium carbon monoflouride cells; and proton 
exchange membrane fuel cells.
      The conferees note that in a recent study, ``Meeting the 
Energy Needs of Future Warriors,'' the National Research 
Council highlighted the importance of Army research on soldier 
power technologies, and indicated that ``energy to power 
soldier systems, . . . must now be viewed on par with the other 
critical logistics commodities--ammunition, fuel, food, and 
water.''
Medical technology applied research initiative
      The budget request included $60.9 million in PE 62787A 
for medical technology.
      The House bill would authorize an increase of $25.0 
million in PE 62787A for a medical technology applied research 
initiative.
      The Senate amendment contained no similar authorization.
      The conferees agree to authorize an increase of $7.05 
million for an applied initiative in medical technologies of 
specific military application and value, including: dermal 
phase meter; gene delivery technology; fibrin bandages from 
non-mammalian sources; nano-fabricated bioartificial kidney; 
and rapid bio-pathogen detection technology. Projects are to be 
selected on the basis of technical merit, cost effectiveness, 
and potential to meet service requirements.
Lightweight Structures Initiative
      The budget request included $203.1 million in PE 63005A 
for combat vehicle and automotive technology.
      The House bill would authorize an increase of $9.0 
million in PE 63005A for the Lightweight Structures Initiative.
      The Senate amendment would authorize an increase of $7.5 
million for components of the Lightweight Structures Initiative 
including: $3.0 million for advanced titanium armor systems; 
$1.5 million for Future Combat System common chassis design; 
and $3.0 million for non-line of sight cannon structure design.
      The conferees agree to authorize an increase of $7.9 
million in PE 63005A for the Lightweight Structures Initiative.
Mobile tactical high energy laser
      The budget request included $53.5 million in PE 63305A 
for Army missile defense systems integration, of which $39.0 
million was for the mobile tactical high energy laser (MTHEL).
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $15.0 
million for MTHEL.
      The conferees agree to authorize an increase of $8.0 
million in PE 63305A for MTHEL.
      The conferees are aware of successful tests of the Army's 
heat capacity solid state laser and believe that laser weapons 
could play an important role in future missile, air, and 
counter-mortar defenses. The conferees direct that the increase 
be used to accelerate development of a 100 kilowatt solid state 
laser and to initiate a system demonstration using a solid 
state laser.
      The conferees note that the Joint Technology Office (JTO) 
plays a key role in maturing a range of laser technologies. The 
JTO was established pursuant to subtitle E, title II, of the 
National Defense Authorization Act for Fiscal Year 2001 (Public 
Law 106-398) with the intent of establishing an office that 
would accelerate progress in high energy laser technology and 
provide incentives to services to invest in such technologies. 
The conferees are concerned that the JTO may not be effective 
in accomplishing the goals defined in subtitle E or 
transitioning laser technology to the services. The conferees 
direct the Secretary of Defense to provide a report to the 
congressional defense committees by January 15, 2005 on the 
effectiveness of the JTO in achieving the objectives of 
subtitle E, the impact of shifting funding responsibility for 
JTO efforts to the Air Force, and the effectiveness of the JTO 
structure in transitioning laser technologies to the 
warfighter. The conferees further direct the Comptroller 
General to review this assessment and to report the results of 
this review to congressional defense committees no later March 
15, 2005.

                                  NAVY

Research, Development, Test and Evaluation, Navy Overview
      The budget request for fiscal year 2005 included an 
authorization of $16,346.4 million in Research, Development, 
Test and Evaluation, Navy for the Department of Defense.
      The House bill would authorize $16,052.8 million.
      The Senate amendment would authorize $16,690.4 million.
      The conferees recommend an authorization of $16,200.6 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Littoral Combat Ship
      The budget request included $352.1 million in PE 63581N 
for the Littoral Combat Ship (LCS), including $244.4 million 
for LCS development and $107.7 million for construction.
      The House bill would authorize $244.4 million in PE 
63581N for LCS development, a decrease of $107.7 million, 
delaying construction of the first LCS until fiscal year 2006.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize $350.1 million, a 
decrease of $2.0 million for phase one design of the Flight One 
LCS design.
      The conferees note the concerns expressed in the House 
report accompanying H.R. 4200 (H. Rept. 108-491) regarding 
whether the LCS program schedule provides sufficient time and 
opportunities for experimentation and evaluation of the 
operational concepts for LCS in Flight Zero before committing 
to major serial production of the ship with Flight One. The 
program plan provided with the fiscal year 2005 budget request 
had construction starting on Flight One ships before delivery 
and evaluation of Flight Zero ships. This concurrency could 
require expensive retrofit to Flight One ships after lessons 
have been learned from operating Flight Zero ships.
      The conferees are concerned with a potential industrial 
impact induced by making fiscal year 2006 a gap year in LCS 
production, which could lead to increased ship costs or 
technology insertion challenges. However, the conferees agree 
with the rationale of section 8092 of the Department of Defense 
Appropriations Act for Fiscal Year 2005 (section A of Public 
Law 108-287), which directs that no funds be obligated for 
construction of a third vessel in the fiscal year 2006 budget 
request. The conferees expect that the Navy will include a plan 
that reduces the risk of concurrency in the LCS justification 
submitted as part of the fiscal year 2006 budget request.
Land attack technology
      The budget request included $82.0 million in PE 63795N 
for land attack technology. This included $28.9 million for the 
affordable weapons system (AWS) and $11.3 million for the 
continued development of the extended range guided munition 
(ERGM).
      The House bill would authorize $105.0 million in PE 
63795N for land attack technology. This included $51.9 million 
for AWS, an increase of $23.0 million, and would authorize the 
budget request for ERGM.
      The Senate amendment would authorize $53.1 million in PE 
63795N for land attack technology. This would authorize no 
funding for AWS, and would authorize the budget request for 
ERGM.
      The conferees agree to authorize $95.2 million in PE 
63795N for land attack technology. This includes an 
authorization of $48.9 million for AWS, an increase of $20.0 
million. This also includes an authorization of $4.5 million 
for ERGM, a decrease of $6.8 million.
      The conferees are aware of past testing problems in the 
ERGM program, but have supported fielding of ERGM capability as 
soon as possible. The conferees are also aware that the Navy 
has issued a notice to industry stating that it will issue a 
solicitation for a capability to mirror that of ERGM. While 
supportive of this risk-reduction strategy, the conferees also 
expect that funds appropriated for the ERGM program be applied 
to continued developmental testing of ERGM.
Open architecture
      The budget request included $146.5 million in PE 64307N 
for surface combatant combat system engineering and $48.2 
million in PE 64755N for ship self-defense (detect and 
control).
      The House bill would authorize an increase of $21.8 
million in PE 64307N for open architecture systems and would 
also authorize an increase of $21.8 million in PE 64755N for 
open architecture warfare systems.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $4.3 
million in PE 64307N and an increase of $3.4 million in PE 
64755N for open architecture warfare systems.
      The conferees concur with the Navy's decision to move to 
open architecture (OA)-based warfare systems, and recognize OA 
as an enabling step to modernizing warfighting capabilities at 
an affordable cost. Similarly, given the rapid rate that 
commercial, off-the-shelf computing equipment and software is 
becoming obsolescent, delaying the implementation of OA will 
result in military systems falling further and further behind 
the commercial sector's capability. While an OA approach to 
development and fielding requires increased cooperation at all 
levels, it also creates interdependencies among programs as a 
result of design and development components that will be used 
in multiple systems. With this approach, the impact of a delay 
or funding cut in a program implementing OA could have impact 
on other programs.
      The Navy identified the implementation of OA into Navy 
surface forces as its highest unfunded priority in fiscal year 
2005. Under the Navy's plan, modernization of existing forces 
(cruiser modernization and DDG modernization) and 
recapitalization of the surface fleet (DD(X), CVN-21, and the 
Littoral Combat Ship) are all inextricably linked to the 
overall execution of the OA initiative. The conferees believe 
that there could be serious, cascading effects on these 
programs unless the Navy ensures that the OA initiative is 
fully funded, and urge the Navy to pursue any shortfalls 
through supplemental submissions for fiscal year 2005. The 
conferees also believe the Navy should consider grouping 
various OA efforts in a separate program element, so that: (1) 
the Navy can coordinate its efforts more efficiently; and (2) 
difficulties with individual platform programs do not 
jeopardize the entire effort.

                               AIR FORCE

Research, Development, Test and Evaluation, Air Force Overview
      The budget request for fiscal year 2005 included an 
authorization of $21,114.7 million in Research Development, 
Test and Evaluation, Air Force for the Department of Defense.
      The House bill would authorize $21,533.0 million.
      The Senate amendment would authorize $21,264.3 million.
      The conferees recommend an authorization of $20,432.9 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Transformational satellite communications
      The budget request included $674.8 million in PE 63845F 
for transformational military satellite communications (TSAT).
      The House bill would authorize a decrease of $100.0 
million in PE 63845F.
      The Senate amendment would authorize a decrease of $100.0 
million in PE 63845F.
      The conferees agree to authorize $374.8 million in PE 
63845F, a decrease of $300.0 million.
      The conferees strongly support the objectives of the TSAT 
program, including much higher communications capacity, assured 
connectivity for a much larger number of mobile and fixed 
forces, and the ability to protect these capabilities against 
emerging threats. The conferees, however, have had continuing 
concerns related to the risk of the current acquisition 
approach and potential program delays, which the conferees 
believe could elevate operational risks resulting from gaps in 
the military satellite communications (MILSATCOM) architecture.
      The conferees are aware of program options that could 
leverage both current MILSATCOM program investments and TSAT 
development efforts. The conferees believe that such an 
approach could accelerate the deployment of advanced 
communications capabilities, provide the opportunity to 
incrementally demonstrate advanced satellite communications 
technology, and provide a lower risk path to meeting TSAT 
requirements. The conferees believe that such an approach is 
potentially more consistent with spiral development and 
capabilities-based acquisition.
      The conferees direct the Secretary of Defense to evaluate 
modified TSAT acquisition strategies that streamline the 
program structure and leverage current MILSATCOM investment, 
and to provide a report to the congressional defense committees 
on that evaluation by March 1, 2005.
Space based radar
      The budget request included $327.7 million in PE 63858F 
for space based radar (SBR).
      The House bill would authorize the budget request.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize $75.0 million in PE 
63858F for SBR, a decrease of $252.7 million.
      The conferees believe that the United States must 
continue to improve its space-based and airborne intelligence, 
reconnaissance, and surveillance (ISR) systems; and believe 
that persistent surveillance will be critical to future U.S. 
military and intelligence capabilities. The conferees note that 
space based radar can make a significant contribution to 
persistent surveillance and that radars provide the only all 
weather, day/night ISR capabilities.
      While strongly supportive of radar satellites, the 
conferees are concerned that the Air Force cost estimates for 
the notional SBR architecture that served as the basis for the 
fiscal year 2005 budget request were very high. If accurate, 
these estimates could render the system unaffordable.
      The conferees believe that affordability will be 
critically dependent on the development and deployment of a 
single radar satellite system to meet both military and 
intelligence community needs and the thorough integration of 
space based radar ISR capabilities into a system of systems 
architecture that includes air assets, other national technical 
means, responsive space assets, and possibly near-space assets. 
Such an integration will have direct and significant 
implications for the capabilities needed in any one element of 
a system of systems. The conferees believe that an integrated 
architecture, that leverages and evolves existing architectures 
as well as innovative technologies, will provide greater 
capabilities earlier and at a more affordable cost.
      Consequently, the conferees believe that the number of 
satellites and technical capabilities needed in an SBR system, 
and how an SBR system might evolve over time, is critically 
dependent on a more complete understanding of an integrated ISR 
system. The conferees direct that the SBR effort be 
restructured to focus on continued technology maturation 
(including satellite integration), architectural analysis, and 
system evolution. The conferees further direct the Secretary of 
Defense to submit a report to the congressional defense 
committees no later than March 1, 2005, outlining the key 
features and programmatic implications of an ISR system of 
systems architecture that includes national technical means and 
other space, air, responsive space, near-space and terrestrial 
systems.
Space based infrared system
      The budget request included $508.4 million in PE 64441F 
for the space based infrared system (SBIRS).
      The House bill would authorize the budget request.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $35.0 
million in PEG 4441F.
      The conferees remain concerned with continued SBIRS cost 
increases, schedule delays, and technical problems. The 
conferees note that the initial 1996 cost estimate for SBIRS 
was $3.6 billion; that estimate has increased by nearly $4 
billion in the last three years and is now $10.0 billion. While 
strongly supportive of the development of next generation early 
warning capabilities, the conferees do not believe that 
continuation of this program can be justified if such increases 
continue in the future. The conferees direct the Secretary of 
Defense to provide a report in classified and unclassified form 
to the congressional defense committees no later than February 
1, 2005 on the cause of the most recent SBIRS cost increases, 
schedule delays, and technical problems; the most recent 
Defense Support Program gap analysis and any effect that 
further delays will have on U.S. early warning, technical 
intelligence, and missile defense capabilities; steps taken to 
address the most recent SBIRS technical difficulties; any 
adjustments in management and contract arrangements with the 
contractor to reflect the most recent program challenges; 
remaining risk areas; and an assessment of the confidence level 
in the SBIRS schedule and cost estimates current as of October 
1, 2004.

                              DEFENSE-WIDE

Research, Development, Test and Evaluation, Defense-wide Overview
      The budget request for fiscal year 2005 included an 
authorization of $20,739.8 million in Research, Development, 
Test and Evaluation, Defense-wide for the Department of 
Defense.
      The House bill would authorize $20,721.3 million.
      The Senate amendment would authorize $20,654.4 million.
      The conferees recommend an authorization of $20,252.9 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Chemical and biological defense basic research program
      The budget request included $36.8 million in PE 61384BP 
for chemical and biological defense program basic research.
      The House bill would authorize an increase of $15.0 
million in PE 61384BP for a chemical and biological defense 
basic research initiative.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $11.0 
million in PE 61384BP for a chemical and biological defense 
basic research initiative. The conferees note that projects and 
technologies to be considered for funding under the chemical 
and biological defense basic research initiative should be 
selected on the basis of technical merit and potential 
operational utility. The conferees recommend that the projects 
and technologies to be considered for funding under the 
chemical and biological defense basic research initiative 
should include, but not be limited to, the following: 
engineered pathogen identification and countermeasures, 
multipurpose biodefense immunoarrays and fluorescence activated 
sensing technologies.
Chemical and biological defense applied research program
      The budget request included $104.4 million in PE 62384BP 
for chemical and biological defense program applied research.
      The House bill would authorize an increase of $25.0 
million in PE 62384BP for a chemical and biological defense 
applied research initiative.
      The Senate amendment would authorize an increase of $8.9 
million in PE 62384BP, including $3.0 million for mustard gas 
antidotes; $2.0 million for bioinformatics; $2.0 million for 
neurotoxin mitigation research; and $2.9 million for chemical 
agent persistence models.
      The conferees agree to authorize an increase of $33.4 
million in PE 62384BP for chemical and biological defense 
program applied research, including $3.0 million for mustard 
gas antidote; $2.0 million for bioinformatics; $1.0 million for 
neurotoxin mitigation research; $2.9 million chemical agent 
persistence models; and $24.5 million for a chemical and 
biological applied research initiative.
      The conferees note that projects and technologies to be 
considered for funding under the chemical and biological 
defense program applied research initiative should be selected 
on the basis of technical merit and potential operational 
utility. The conferees recommend that the projects and 
technologies to be considered for funding under the chemical 
and biological defense applied research initiative should 
include, but not be limited to, the following: air 
contamination monitoring systems; hand-held detectors; heat 
shock protein vaccine creation processes; low-cost chemical-
biological protective shelters; membrane research for next 
generation chemical-biological protective suits; rapid anti-
body based biological countermeasures; and rapid 
decontamination systems for nerve agents.
Stimulated isomer energy release
      The budget request included $339.2 million in PE 62702E 
for tactical technology applied research, including $4.0 
million for the Defense Advanced Research Project Agency's 
(DARPA) stimulated isomer energy release (SIER) project.
      The House bill and the Senate amendment would reduce the 
budget request for the SIER project by $4.0 million. The House 
bill also directed the Secretary of Defense to terminate the 
project.
      The conferees agree to authorize no funds for 
continuation of the DARPA SIER project and direct that the 
DARPA project be terminated.
Combating terrorism technology support
      The budget request included $46.7 million in PE 63122D8Z 
for combating terrorism technology support programs.
      The House bill would authorize an increase of $27.5 
million in PE 63122D8Z for combating terrorism technology 
support programs, including $25.0 million for advanced 
combating terrorism technology support.
      The Senate amendment would authorize an increase of $10.0 
million in PE 63122D8Z for blast mitigation research. The 
conferees agree to authorize an increase of $13.5 million in PE 
63122D8Z for combating terrorism technology support, including 
$7.0 million for blast mitigation; $5.0 million for advanced 
combating terrorism technology support; and $1.5 million for 
combating terrorism intelligence, surveillance, and 
reconnaissance research.
Chemical and biological defense program advanced technology development
      The budget request included $117.3 million in PE 63384BP 
for the chemical and biological defense program for advanced 
technology development.
      The House bill would authorize an increase of $35.0 
million in PE 63384BP for a chemical and biological defense 
program advanced technology initiative.
      The Senate amendment would authorize an increase of $9.5 
million for chemical and biological defense program advanced 
technology development, including $6.0 million for anthrax and 
plague oral vaccine development; and $3.5 million for water 
quality sensors.
      The conferees agree to authorize an increase of 
$38.3million for chemical and biological defense program for advanced 
technology development, including $32.9 million for an advanced 
technology development initiative; $2.8 million for anthrax and plague 
oral vaccine development; and $2.6 million for water quality sensors.
      The conferees note that projects and technologies to be 
considered for funding under the chemical and biological 
defense advanced technology development initiative should be 
selected on the basis of technical merit and potential 
operational utility. The conferees recommend that the projects 
and technologies to be considered for funding under the 
chemical and biological defense basic research initiative 
should include, but not be limited to, the following: hand-held 
biological detection systems; immuno biological/chemical threat 
agent detectors; non-invasive vectored vaccine development; and 
recombinant protein vaccines.
Airborne laser
      The budget request included $474.3 million in PE 63883C 
for the airborne laser (ABL).
      The House bill would authorize the budget request.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize the budget request.
      The conferees remain convinced of the importance of boost 
phase intercept in the ballistic missile defense architecture, 
and note that ABL has potentially revolutionary capabilities. 
The conferees also note that, in response to consistent cost 
overruns and schedule delays, the program has been restructured 
to reflect these difficulties and its developmental nature. The 
conferees applaud this restructuring and are aware of progress 
in recent months toward achieving key milestones in the ABL 
program, particularly first light from conjoined laser modules. 
The conferees note that demonstrated progress in these areas 
will be critical to the continuation of the ABL effort.
      The conferees direct the Secretary of Defense to provide 
a report to the congressional defense committees by February 
15, 2005 that provides the status of ABL laser tests and the 
beam control/fire control system and recommendations on the 
future of the ABL program.
Kinetic energy interceptor
      The budget request included $511.3 million in PE 63886C 
for the kinetic energy interceptor (KEI) and associated boost 
phase intercept efforts.
      The House bill authorized a decrease of $75.0 million in 
PE 63886C.
      The Senate amendment authorized a decrease of $200.0 
million in PE 63886C.
      The conferees agree to authorize $348.3 million in PE 
63886C, a decrease of $163.0 million.
      The conferees remain convinced that the KEI could be an 
important aspect of the overall ballistic missile defense 
architecture, potentially contributing intercept capabilities 
in boost, midcourse, and terminal phases of the threat missile 
flight. The conferees are concerned, however, with the lack of 
progress in defining basing modes. The conferees note that:
            (1) Recent justifications for the KEI ground-based 
        variant suggest that it might serve as the basis for 
        midcourse intercept capability in Europe. At the same 
        time, however, the budget request included $35.0 
        million for additional ground-based interceptors (GBI) 
        for the ground-based midcourse defense element that 
        could be deployed in Europe; and
            (2) Consideration of sea-based concepts of 
        operations and platforms do not appear to be 
        progressing.
      The conferees direct the Director of the Missile Defense 
Agency to provide a report to the congressional defense 
committees by February 1, 2005 that includes planned ground- 
and sea-basing modes for KEI (including specific sea-based 
platforms) and the concept of operations for each basing mode; 
how KEI will enhance ballistic missile defense system 
capabilities; the role KEI may play in European missile defense 
and how that role relates to the fielding of additional GBIs; 
and a comparison of anticipated sea-based KEI capabilities with 
other sea-based missile defense options.
Operationally responsive space
      The budget request included $19.6 million in PE 65799D8Z 
for the force transformation directorate, but no funds for 
operationally responsive satellite payloads and busses.
      The House bill would authorize an increase of $25.0 
million in PE 65799D8Z for operationally responsive satellite 
payloads.
      The Senate amendment would authorize $25.0 million in a 
new program element for operationally responsive satellite 
payloads.
      The conferees believe that smaller, less expensive 
satellites may provide a means of achieving more rapid and 
effective deployment of space-based military capabilities than 
is now possible. The conferees are encouraged by Air Force 
efforts to develop small, low-cost space launch vehicles as an 
essential step for enabling the launch of such satellites, but 
are concerned that the effort to develop viable payloads for 
these rockets is not adequately funded. The conferees note that 
the Office of Transformation is working with the Air Force 
Research Laboratory to develop lightweight, experimental 
tactical satellites (TACSATs), but that this effort lacks 
dedicated funding. The conferees also believe that the 
development of standards, protocols, and interfaces for common 
satellite bus components will be key to producing affordable 
small satellites. The conferees agree to authorize $39.6 
million in PE 65799D8Z, an increase of $20.0 million, for 
further development of TACSATs and common small satellite bus 
components. The conferees expect, consistent with section 913 
of this Act, that future funding requests for operationally 
responsive payloads will be forwarded in a separate and 
dedicated program element.

                          TEST AND EVALUATION

Operational Test and Evaluation, Defense Overview
      The budget request for fiscal year 2005 included an 
authorization of $305.1 million in Operational Test and 
Evaluation, Defense for the Department of Defense.
      The House bill would authorize $305.1 million.
      The Senate amendment would authorize $309.1 million.
      The conferees recommend an authorization of $304.1 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


                       Items of Special Interest

Department of Defense--National Aeronautics and Space Administration 
        coordination
      The conferees note that in the areas of aeronautics and 
space research technology development, the Department of 
Defense and the National Aeronautics and Space Administration 
(NASA) must coordinate closely in order to ensure that the 
nation continues its global leadership in these technologies.
      The conferees believe that as NASA evaluates its future 
plans for aeronautics, it is essential that the Department and 
NASA provide for the continued availability of unique wind 
tunnels and other research, test, and evaluation facilities and 
services critical to the development of military systems. The 
conferees direct the Under Secretary of Defense for 
Acquisition, Technology and Logistics to identify and analyze 
aeronautics facilities currently managed by NASA that are 
considered by the Department to be critical to the 
accomplishment of defense missions and to the maintenance of 
U.S. leadership in aeronautics.
      The conferees also endorse the Secretary of Defense's 
emphasis on transformational technologies. One of the more 
promising technologies under development is hypersonic 
propulsion, which when further developed will provide 
significantly improved operational capabilities for both manned 
and unmanned flight, missile defense and a single-stage-to-
flight capability that could provide rapid access to space. 
Unfortunately, due to changing priorities within both the Air 
Force and NASA, funding for such efforts has been reduced to 
insignificant levels.
      The conferees direct the Secretary of Defense to submit a 
report to the congressional defense committees by March 15, 
2005, which details the Department's plans to provide the 
required funding to pursue a development program for transition 
of hypersonic technologies to an integrated demonstration 
system that validates their affordability and effectiveness to 
support prompt global strike and assured space access missions. 
The report should analyze the results and technological 
advances enabled by the X-43 series of programs and other 
efforts to develop a detailed technology roadmap and investment 
strategy consistent with meeting future military needs in 
hypersonics. The conferees believe the capabilities to be 
realized through a successful hypersonic development program 
justify the sustained and full support of the Department and 
NASA.
Enterprise Resource Planning for Army Combat Logistics
      The Army logistics systems arm, fuel, repair, move, and 
sustain combat forces. The Army's goals for modernization of 
its legacy logistics systems include improved sustainment of 
combat forces using fewer soldiers, increased readiness and 
operational availability, and significantly lowering cost. The 
Army plans to modernize its logistics systems using enterprise 
resource planning systems, which will provide essential 
information for timely decision making and accurate performance 
measurement. They use no custom software code and only 
commercial, off-the-shelf computer technology. They are also 
web-based with a robust telecommunications infrastructure and 
have been tested at thousands of sites outside the Army.
      The conferees encourage the Army to leverage existing 
Army information technology assets and expertise to augment 
funds within the Global Combat Support System account to 
complete the blueprinting and accelerate fielding of the 
system, wherever feasible, to replace 20-year-old systems which 
are unable to fully support combat operations.
Patriot air and missile defense system
      The conferees note that the Patriot air and missile 
defense system destroyed all nine theater ballistic missiles 
launched at coalition forces during Operation Iraqi Freedom 
(OIF) for which intercept was attempted. The conferees also 
note, however, that the Patriot was also involved in three 
``friendly fire'' incidents during that conflict and that 
electromagnetic interference (EMI) between Patriot and other 
systems contributed to these incidents. Similar interference 
problems with the Patriot occurred during the Gulf War in 1991.
      The conferees strongly support the Patriot system, note 
with approval that the Army has reprogrammed funding to fix the 
known ``friendly-fire'' problems associated with the Patriot, 
and are encouraged at the level of attention given to this 
problem since the OIF incidents. The conferees expect, however, 
that as more radars, communications systems, and other emitting 
systems are added to the battlefield in the future, EMI 
problems will continue to grow in complexity.
      The conferees direct the Secretary of Defense to submit a 
report to the congressional defense committees by March 1, 2005 
summarizing the tests, exercises, and changes to operational 
procedures and requirements that are planned or being 
implemented to prevent or reduce future EMI problems with the 
Patriot system. The conferees also direct the Director of 
Operational Test and Evaluation to include an assessment of the 
Department's plans to reduce EMI problems with the Patriot 
system in his Annual Report to Congress, required by section 
139 of title 10, United States Code.
Russian-American missile defense cooperation
      The conferees understand that the Secretary of Defense 
desires to explore opportunities for missile defense 
cooperative programs with the Russian Federation that build 
upon the experience gained in the Russian-American Observation 
Satellite (RAMOS) program that was terminated earlier this 
year. The conferees recognize the potential importance of such 
cooperative efforts, both to the technical success of the U.S. 
missile defense effort and to the establishment of a 
cooperative strategic relationship with the Russian Federation.
      The conferees urge the Secretary to engage in serious 
negotiations with the Russian Federation as soon as possible on 
joint missile defense programs. The conferees believe that 
previous efforts under the RAMOS program, including Russian 
Presidential and Government decrees and the U.S.-Russian 
Federation technical agreement, should be leveraged to help 
ensure the successful initiation of such efforts.

                     Legislative Provisions Adopted

              Subtitle A--Authorization of Appropriations

Authorization of appropriations (sec. 201)
      The House bill contained a provision (sec. 201) that 
would authorize the recommended fiscal year 2005 funding levels 
for the Research, Development, Test and Evaluation accounts for 
the Army, Navy, Marine Corps, Air Force, Defense-wide 
activities and the Director of Operational Test and Evaluation.
      The Senate amendment contained a similar provision (sec. 
201).
      The conference agreement includes this provision.
Amount for defense science and technology (sec. 202)
      The budget request included $10,550.3 million for 
Department of Defense science and technology (S&T) programs.
      The House bill would authorize $11,067.7 million for 
defense S&T programs.
      The Senate amendment would authorize $11,012.4 million 
for defense S&T programs.
      The conferees agree to authorize $11,191.6 million for 
S&T programs, an increase of $641.3 million over the request. 
The increase provided by the conferees brings the Department 
closer to 3 percent of total spending, the goal stated by the 
Department and outside experts as the desired investment for 
these programs. In recognition of the key role played by S&T in 
maintaining the best equipped, best protected fighting force in 
the world, the conferees have targeted increases to project 
areas which improve current capabilities, while focusing on 
basic research and long-term projects that ensure future 
innovation.
      The conferees note that current operations in Iraq, 
Afghanistan, and elsewhere continue to demonstrate how 
technologies transitioned from the Department's S&T programs 
are enhancing the combat effectiveness of warfighters, reducing 
casualties, and improving the efficiency and flexibility of our 
military forces. The conferees commend the Department for 
mobilizing its technical capabilities in the science and 
technology community to support these current global 
operations.
      The conferees expect to see an increased commitment by 
the Department to robustly fund S&T in the fiscal year 2006 
budget, along with an appropriate balance within the accounts 
that acknowledges the importance of long-term research in an 
era of immediate and pressing needs.
      Conferees also urge continued attention to a key 
component of ensuring the U.S. military's technological edge--
development, recruitment and retention of skilled scientists 
and engineers.

    Subtitle B--Program Requirements, Restrictions, and Limitations

Future Combat Systems program strategy (sec. 211)
      The House bill contained a provision (sec. 211) that 
would direct the Secretary of the Army to establish and 
implement a program strategy for the Future Combat Systems 
(FCS) acquisition program. The provision limits authorization 
of appropriations for FCS in fiscal year 2005 to $2.2 billion 
until the Secretary of the Army certifies that elements of the 
program strategy includes certain technical and performance 
criteria before production facilitization and long lead items 
are placed on contract. The provision also requires the Under 
Secretary of Defense for Acquisition, Technology and Logistics 
(USD(AT&L)) to submit to the Congress: (1) an independent 
program cost estimate; (2) a report, prepared by an independent 
panel, on the maturity levels of critical technologies; (3) a 
report on the status of the network and command, control, 
communications, computers, intelligence, surveillance, and 
reconnaissance components; and (4) key performance parameters, 
prior to the Milestone B update required by the FCS acquisition 
decision memorandum.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that limits the 
authorization of appropriations for FCS in fiscal year 2005 to 
$2.2 billion until the Secretary of the Army certifies that 
elements of the program strategy includes certain technical and 
performance criteria before production facilitization and long 
lead items are placed on contract. The amendment requires the 
USD(AT&L) to submit to Congress: (1) a program cost estimate; 
(2)a report, prepared by an independent panel, on the maturity 
levels of critical technologies; (3) a report on the status of the 
network and command, control, communications, computers, intelligence, 
surveillance, and reconnaissance components; and (4) key performance 
parameters, prior to the Milestone B update required by the FCS 
acquisition decision memorandum. The amendment also requires the USD 
(AT&L) submit to Congress an independent cost estimate of the FCS 
program not later than March 1, 2005.
      The conferees continue to support FCS and believe that 
the Army has made a sound decision to restructure the FCS 
program. With this restructure, the Army will reduce FCS 
program risk while providing increased capabilities for the 
current force.
Collaborative program for research and development of vacuum 
        electronics technologies (sec. 212)
      The House bill contained a provision (sec. 212) that 
would require the Secretary of Defense to establish a program 
for research and development in advanced vacuum electronics 
technology to meet Department of Defense requirements.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Director, Defense Research and Engineering to submit a 
report on establishment of a collaborative vacuum electronics 
research and development program that: identifies a department 
lead to carry out the effort; assesses the role of investing in 
vacuum electronics technologies as part of the overall strategy 
of the Department's investments to meet electronic technology 
needs; provides a management plan and schedule for the program; 
identifies required funding and a list of program capability 
goals and objectives; outlines the role of basic and applied 
research in support of the program; and assesses global 
capabilities in the technology area.
      The conferees note that vacuum electronics are utilized 
in a variety of the Department's systems, particularly many 
legacy systems. While there is a trend toward solid state 
electronics in most defense systems, the Department must ensure 
that systems which depend on the use of vacuum electronics will 
have access to the most advanced technologies available.
Annual Comptroller General report on Joint Strike Fighter program (sec. 
        213)
      The House bill contained a provision (sec. 213) that 
would require the Comptroller General to conduct an annual 
review of the Joint Strike Fighter (JSF) aircraft program, and 
submit a report of that review to Congress by March 15 of each 
year from fiscal year 2005 through fiscal year 2009.
      Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the annual report to be submitted to the congressional defense 
committees.
      The conferees are aware of the recently conducted study 
by a senior independent review team on the JSF program, and 
believe that the first report submitted by March 15, 2005 
should place emphasis on the degree to which the program office 
and contractor have incorporated the recommendations of that 
team.
Amounts for U.S. Joint Forces Command to be derived only from Defense-
        wide accounts (sec. 214)
      The House bill contained a provision (sec. 214) that 
would transfer funding for the joint warfare experimentation 
programs of U.S. Joint Forces Command (JFCOM) from Research, 
Development, Test and Evaluation (RDT&E), Navy accounts to an 
RDT&E, Defense-wide account.
      The Senate amendment contained a similar provision (sec. 
216).
      The Senate recedes with an amendment that would require, 
beginning in fiscal year 2007, all RDT&E funds for JFCOM be 
derived from Defense-wide RDT&E funds, and that this be clearly 
reflected in the budget request.
      The conferees note that this provision does not take 
effect until fiscal year 2007. The conferees direct, however, 
that the amounts requested for JFCOM joint warfare 
experimentation programs be separately identified in the fiscal 
year 2006 budget request, and distinguished within any 
executive agent account in which they are included. The 
conferees also note that JFCOM is responsible for a number of 
critical efforts directly related to increasing the joint 
warfighting capability of the military services, and that 
funding those efforts through executive agents does not provide 
Congress with clear visibility into the amounts dedicated to 
those key joint initiatives. The practice of requesting funding 
through executive agents also distorts the amount of funding 
for military service activities that carry funding for joint 
initiatives. The conferees have strong interest not only in 
joint experimentation, which is addressed by this provision, 
but in JFCOM joint training initiatives as well. Therefore the 
conferees direct the Department of Defense, when submitting its 
fiscal year 2006 budget request, to clearly identify funding 
for joint training activities in Defense-wide and executive 
agent accounts to enhance congressional visibility into funding 
dedicated to joint training in future budgets.
      The conferees further note the unique, important role 
that JFCOM plays in developing doctrine and capabilities for 
other combatant commanders, and in developing and monitoring 
joint training standards for elements of the Armed Forces and 
coalition partners. The conferees believe that the Department 
should consider the establishment of a major force program or 
similarconsolidation of related budget activities for joint 
experimentation, procurement, and training activities.
Global Positioning System III satellite (sec. 215)
      The Senate amendment contained a provision (sec. 212) 
that would prohibit the obligation or expenditure of any more 
than 80 percent of the funds authorized to be appropriated for 
the Global Positioning System III (GPS) until the Secretary of 
Defense completes an analysis of alternatives and submits a 
report on that analysis to the congressional defense 
committees.
      The House bill contained no similar provision.
      The House recedes.
      The conferees expect the analysis of alternatives to 
include an assessment of architectures that take advantage of 
smaller, lighter weight, and potentially less expensive GPS 
satellites.
Initiation of concept demonstration of Global Hawk high altitude 
        endurance unmanned aerial vehicle (sec. 216)
      The Senate amendment contained a provision (sec. 213) 
that would amend section 221(c) of the Floyd D. Spence National 
Defense Authorization Act for Fiscal Year 2001 (Public Law 106-
398) by changing the date by which the Secretary of Defense is 
to initiate the demonstration of the Global Hawk high altitude 
endurance unmanned aerial vehicle from March 1, 2001 to March 
1, 2005.
      The House bill contained no similar provision.
      The House recedes.
Joint unmanned combat air systems program (sec. 217)
      The Senate amendment contained a provision (sec. 214) 
that would require the Secretary of Defense to establish an 
executive committee, which would provide guidance and 
recommendations for the management of the joint unmanned combat 
air systems program to the Director of the Defense Advanced 
Research Projects Agency (DARPA) for as long as the program is 
managed by DARPA.
      The House bill contained no similar provision.
      The House recedes.

                  Subtitle C--Missile Defense Programs

Fielding of ballistic missile defense capabilities (sec. 231)
      The House bill contained a provision (sec. 221) that 
would authorize the Department of Defense to use Research, 
Development, Test and Evaluation funds appropriated in fiscal 
years 2005 and 2006 for the Missile Defense Agency to develop 
and field ballistic missile defense capabilities.
      The Senate amendment contained a similar provision (sec. 
231) that would authorize the use of Research, Development, 
Test and Evaluation funds appropriated in fiscal year 2005 for 
the development and fielding of an initial set of missile 
defense capabilities.
      The Senate recedes.
Integration of Patriot Advanced Capability-3 and Medium Extended Air 
        Defense System into ballistic missile defense system (sec. 232)
      The Senate amendment contained a provision (sec. 232) 
that would require the Secretary of the Army to obtain approval 
of the Director of the Missile Defense Agency (MDA) prior to 
making changes to system level specifications or establishing 
new system level specifications for the combined Patriot 
Advanced Capability-3 (PAC-3) and Medium Extended Air Defense 
System (MEADS) program. It would also require such approval 
prior to making any significant change in procurement 
quantities or the baseline schedule for the PAC-3/MEADS 
combined program.
      The House bill contained no similar provision.
      The House recedes with an amendment that would define the 
PAC-3/MEADS air and missile defense program as part of the 
integrated ballistic missile defense system (BMDS), and require 
that the Director of MDA, in consultation with the Secretary of 
the Army (acting through the Assistant Secretary of the Army 
for Acquisition, Logistics and Technology), ensure that any 
configuration change to the PAC-3/MEADS program is subject to 
MDA's configuration control processes. The amendment would also 
require that the Secretary of the Army (acting through the 
Assistant Secretary of the Army for Acquisition, Logistics and 
Technology) make significant changes to the baseline technical 
specifications and schedule for the PAC-3/MEADS program only 
with the concurrence of the Director of the Missile Defense 
Agency. The amendment would further require the Secretary of 
Defense to establish procedures to determine the effect of 
significant changes proposed by the Secretary of the Army to 
planned PAC-3/MEADS procurement quantities on BMDS 
capabilities; to provide for reviews of the proposed 
procurement changes by all relevant Department of Defense 
commands and agencies; to obtain the concurrence or 
nonconcurrence of those commands and agencies with the proposed 
procurement changes; and to submit a report to the 
congressional defense committees on the procedures the 
Secretary of Defense establishes.
Comptroller General assessments of ballistic missile defense programs 
        (sec. 233)
      The Senate amendment contained a provision (sec. 233) 
thatwould require assessments by the Comptroller General of the 
extent to which missile defense programs met their cost, schedule, 
test, and performance goals for the years 2004 through 2009. The 
provision also requires the Comptroller General to submit reports on 
those assessments to the congressional defense committees.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
assessments by the Comptroller General of the extent to which 
missile defense programs met their cost, schedule, test, and 
performance goals for the years 2004 through 2006.
Baselines and operational test and evaluation for ballistic missile 
        defense system (sec. 234)
      The Senate amendment contained a provision (sec. 234) 
that would require: (1) the Secretary of Defense, in 
consultation with the Director of Operational Test and 
Evaluation (DOT&E), to prepare appropriate criteria for 
operationally realistic testing of the ballistic missile 
defense system (BMDS); (2) the conduct of a test consistent 
with those criteria not later than October 1, 2005; (3) the 
conduct of tests consistent with those criteria for each block 
configuration of the BMDS; (4) evaluation of those tests by the 
DOT&E (5) the establishment of baselines for each block 
configuration of the BMDS; and (6) the Director of the Missile 
Defense Agency to report variances in program performance from 
those baselines to Congress and the reasons for any changes 
made to the baselines.
      The House bill contained no similar provision.
      The House recedes.

                       Subtitle D--Other Matters

Annual report on submarine technology insertion (sec. 241)
      The Senate amendment contained a provision (sec. 241) 
that would require the Secretary of Defense to submit an annual 
report on available or potentially available technologies for 
insertion into submarines for each of fiscal years 2006, 2007, 
2008, and 2009.
      The House bill contained no similar provision.
      The House recedes.
Sense of the Congress regarding funding of the Advanced Shipbuilding 
        Enterprise under the National Shipbuilding Research Program of 
        the Navy (sec. 242)
      The Senate amendment contained a provision (sec. 242) 
that would express the sense of the Senate in support of 
continued funding for the Advanced Shipbuilding Enterprise 
under the National Shipbuilding Research Program of the Navy, 
citing it as a method for exploring and collaborating on 
innovation in shipbuilding and ship repair that collectively 
benefits all components of the industry.
      The House bill contained no similar provision.
      The House recedes with an amendment that would change the 
provision to a sense of the Congress.

                   Legislative Provisions Not Adopted

Program increases
      The House bill contained a provision (sec. 203) that 
would authorize an increase of $5.0 million in PE 25633N for 
Research, Development, Test and Evaluation, Navy, for nano 
composite hard-coat for aircraft canopies, and an increase of 
$5.0 million in PE 27443F for Research, Development, Test and 
Evaluation, Air Force, for command and control service-level 
management.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees agree to authorize an increase of $2.3 
million in PE 25633N for nano composite hard-coat for aircraft 
canopies, and an increase of $3.8 million in PE 27443F for 
command and control service-level management. DD(X)-class 
destroyer program.
      The Senate amendment contained a provision (sec. 211) 
that would authorize the Secretary of the Navy to fund the 
second destroyer of the DD(X)-class with Research, Development, 
Test and Evaluation, Navy funds, and would direct that $99.4 
million be authorized for detail design of the second ship.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees agree to authorize a total of $1,471.5 
million in PE 64300N for the DD(X) destroyer, including $84.4 
million to begin detail design of the second ship of the class.
      The conferees have strongly supported both the DD(X) 
program and the Navy's acquisition strategy, which uses the 
construction and test of engineering development models (EDMs) 
to mitigate technical risk.
      The conferees are aware of the assessment by the 
Government Accountability Office (GAO) of the maturity of 12 
technologies critical to DD(X), as the program entered the 
system development and demonstration (SDD) phase, and the GAO's 
further assessment that DD(X) technology maturity and design 
stability will not be demonstrated before the Milestone B 
decision scheduled for March 2005. Many of the tests to 
demonstrate technical maturity will occur around the time of 
the critical design review (CDR) late in fiscal year 2005. 
Program officials acknowledge the risksassociated with the 
advanced technologies, but the conferees believe that taking such risks 
is warranted to ensure that the DD(X) technologies are not obsolete, 
and that the Navy has taken adequate steps to mitigate the risks before 
ship construction begins. These steps include the identification of 
fall back options if new technologies are not available.
      In particular, the conferees note the concerns expressed 
in the House report (H. Rept. 108-491) regarding the schedule 
for land-based testing of the integrated power system and 
advanced gun system EDMs. These two system EDMs are not 
scheduled to complete land-based testing until late in fiscal 
year 2005, coincident with the DD(X) CDR.
      The conferees agree that the integrated power system and 
advanced gun system are key elements which drive much of the 
DD(X) design, and that land-based testing of these systems 
should be essentially complete prior to the DD(X) CDR. The 
conferees direct the Secretary of the Navy, in coordination 
with the Under Secretary of Defense for Acquisition, Technology 
and Logistics, to report to the congressional defense 
committees following completion of the DD(X) CDR. That report 
should include the results of the CDR and an assessment of the 
readiness of the program to proceed beyond the SDD phase of the 
program.
      The conferees share the concerns raised in the Senate 
Report (S. Rept. 108-260) regarding maintaining the viability 
of a competitive industrial base for the design and 
construction of Navy surface combatants. As noted in that 
report, the Navy had originally planned to compete the 
construction phase of the DD(X), but made a decision to award 
that contract on a sole-source basis to the shipyard with lead 
design responsibility. The conferees expect the Navy to take 
all actions necessary to ensure the viability of the second 
shipyard in order to maintain a healthy and competitive 
industrial base for surface combatants.
Joint Strike Fighter aircraft program
      The Senate amendment contained a provision (sec. 215) 
that would require the Secretary of Defense to have the Defense 
Science Board (DSB) conduct a study of the Joint Strike Fighter 
(JSF) aircraft program, which would be delivered to the 
congressional defense committees with the budget request for 
fiscal year 2006. This study would focus primarily on the issue 
of excess weight in the aircraft, the potential performance 
penalties that would be incurred, and the technical approaches 
to solve these issues.
      The House bill amendment contained no similar provision.
      The Senate recedes.
      The conferees have been made aware of the results of a 
recently completed study by a senior-level independent review 
team which reviewed almost identical areas of the JSF program, 
and believe another study by the DSB would be redundant at this 
time.
Space based radar
      The House bill contained a provision (sec. 215) that 
would prohibit the Department of Defense from proceeding to 
Milestone B in the Space Based Radar program until 30 days 
after meeting a requirement to provide the congressional 
defense committees and intelligence committees a report that 
includes independent cost and technology maturity and readiness 
assessments and the system design concept for the program.
      The Senate amendment contained no similar provision.
      The House recedes.
Mark-54 torpedo product improvement program
      The House bill contained a provision (sec. 216) that 
would make available $2.0 million of the funds in PE 64610N for 
Research, Development, Test, and Evaluation, Navy for the Mark-
54 torpedo product improvement program.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees agree to authorize an increase of $1.5 
million in PE 64610N for the Mark-54 torpedo product 
improvement program.
Infrastructure system security engineering development for the Navy
      The Senate amendment contained a provision (sec. 217) 
that would authorize an increase of $3.0 million in PE 26313M 
for Research, Development, Test and Evaluation, Navy, for 
infrastructure system security engineering development.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees agree to authorize an increase of $1.5 
million in PE 26313M for infrastructure system security 
engineering at the Critical Infrastructure Protection Center.
Neurotoxin Mitigation Research
      The Senate amendment contained a provision (sec. 218) 
that would authorize an increase of $2.0 million in PE 62384BP 
for Research, Development, Test and Evaluation, Defense-wide 
activities for neurotoxin mitigation research.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees agree to authorize an increase of $1.0 
million in PE 62384BP for neurotoxin mitigation research.
Spiral development of Joint Threat Warning System maritime variants
      The Senate amendment contained a provision (sec. 219) 
that would authorize an increase of $2.0 million in PE 116405BB 
for the development of maritime variants for the Joint Threat 
Warning System (JTWS), to be offset by a decrease of $2.0 
million of the amount authorized to be appropriated for 
military personnel (sec. 421), with the amount of the reduction 
to be derived from excess amounts provided for military 
personnel of the Air Force.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees agree to authorize an increase of $2.0 
million in PE116405BB for spiral development of maritime 
variants for JTWS.
Advanced ferrite antenna
      The Senate amendment contained a provision (sec. 220) 
that would authorize an increase of $3.0 million in PE 26313M 
for Research, Development, Test, and Evaluation, Navy, for 
advanced ferrite antenna development.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees agree to authorize an increase of $2.1 
million in PE 26313M for advanced ferrite antenna development.
Prototype littoral array system for operating submarines
      The Senate amendment contained a provision (sec. 221) 
that would authorize an increase of $5.0 million in PE 64503N 
for Research, Development, Test and Evaluation, Navy for the 
design, development, and testing of a prototype littoral array 
system for operating submarines.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees agree to authorize an increase of $3.3 
million in PE 64503N for the design, development, and testing 
of a prototype littoral array system for operating submarines.
Advanced manufacturing technologies and radiation casualty research
      The Senate amendment contained a provision (sec. 222) 
that would authorize an increase of $2.0 million in PE 78011S 
for advanced manufacturing technologies and $3.0 million in PE 
63002D8Z for radiation casualty research.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees agree to authorize an increase of $4.5 
million in PE 78011S for advanced manufacturing technologies.
Research and development for improved prevention of leishmaniasis
      The Senate amendment contained a provision (sec. 328) 
that would authorize an increase of $0.5 million in the Defense 
Health Program and $4.5 million in PE 64807A for research and 
development for improved prevention of leishmaniasis.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees agree to authorize an increase of $0.5 
million in the Defense Health Program, $1.4 million in PE 
63002A, and $4.5 million in PE 64807A for research and 
development for the prevention and treatment of leishmaniasis.
                  TITLE III--OPERATION AND MAINTENANCE

Operation and Maintenance Overview
      The budget request included an authorization of 
$121,874.6 million in Operation and Maintenance, $20,109.6 
million in Other Programs, and $2,955.1 million in Working 
Capital Fund accounts for the Department for Defense.
      The House bill would authorize $119,758.9 million in 
Operation and Maintenance, $20,229.8 million in Other Programs, 
and $2,767.1 million in Working Capital Fund accounts.
      The Senate amendment would authorize $120,522.3 million 
in Operation and Maintenance, $20,529.0 million in Other 
Programs, and $2,894.9 million in Working Capital Fund 
accounts.
      The conferees recommend an authorization of $121,520.2 
million in Operation and Maintenance, $20,086.9 million in 
Other Programs, and $2,896.1 million in Working Capital Fund 
accounts. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


                       Items of Special Interest

Navy Marine Corps Intranet
      The conferees note that the Navy Marine Corps Intranet 
(NMCI) program is working to transfer legacy applications and 
networks into the NMCI environment. The conferees note that the 
scope of this process is large and the original goals relating 
to termination or migration of legacy applications have not 
been achieved. The conferees understand that there may be valid 
operational reasons for not migrating some legacy applications 
into the NMCI environment. The Secretary of the Navy should 
accelerate the migration or termination of legacy applications 
and networks, and the conferees direct the Secretary to report 
to the Congress on the progress in this area, as well as on a 
plan for the future funding of any legacy systems support by 
September 30, 2005. The conferees take no position on matters 
of NMCI contract administration and direct the Secretary to 
resolve any matters in contractual arrangements relating to 
legacy application termination, transition, and support in a 
manner consistent with established procedures and acquisition 
policies.
Transforming the Department of the Army's logistics maintenance 
        information
      The conferees support the Department of the Army's recent 
decision to allocate funds to reduce the cost, while increasing 
the speed of transforming its logistics maintenance information 
into modern and usable formats. The conferees urge the Army to 
continue these efforts as a means to improve maintenance 
support tools available to soldiers.

                     Legislative Provisions Adopted

              Subtitle A--Authorization of Appropriations

Authorization of appropriations (secs. 301-303)
      The House bill contained provisions (sec. 301-303) that 
would authorize fiscal year 2005 funding levels for all 
operation and maintenance accounts, working capital funds, and 
other Department of Defense programs, including the Defense 
Inspector General, the Chemical Demilitarization Program, Drug 
Interdiction and Counter-Drug Activities, and the Defense 
Health Program.
      The Senate amendment contained similar provisions (secs. 
301-303).
      The conference agreement includes these provisions.
Chemical Agents and Munitions Destruction, Defense (sec. 303b)
      The budget request included $1,372.0 million in Chemical 
Agents and Munitions Destruction, Army for the Department of 
Defense.
      The House bill contained a provision (sec. 303(b)) that 
would provide a total of $1,372.0 million in Chemical Agents 
and Munitions Destruction, Defense (CAMD,D) for the Department 
of Defense.
      The Senate amendment contained a provision (sec. 303(b)) 
that would provide a total of $1,519.0 million for CAMD,D, 
including an increase of $147.0 million to restore the funding 
for the chemical demilitarization research and development 
program at the Pueblo Chemical Agent Disposal Facility, Pueblo, 
Colorado, to the original estimates developed by the 
Department's Cost Analysis Improvement Group, which were 
provided in the Future Years Defense Program submitted with the 
fiscal year 2004 budget request.
      The House recedes with an amendment that would authorize 
$1,372.0 million for CAMD,D, as follows: $1,088.8 million for 
Operation and Maintenance; $204.2 million for Research and 
Development, (an increase of $50.0 million to the budget 
request to be used for the chemical demilitarization research 
and development program at Pueblo); and $79.0 million for 
Procurement.
      Elsewhere in this report the conferees recommend an 
authorization of $81.9 million for military construction for 
the Chemical Agents and Munitions Destruction program.
      The conferees note the reduction in the fiscal year 2005 
budget request from the fiscal year budget estimate for the 
chemical demilitarization program, particularly for the Pueblo 
facility, and concerns raised in the Senate report accompanying 
S. 2400 (S. Rept. 108-260) regarding the need to provide 
sufficient funding in the program for the United States to meet 
its obligations under the Chemical Weapons Convention. The 
conferees also note the views expressed in the House report 
accompanying H.R. 4200 (H. Rept. 108-491) that the United 
States proceed as rapidly as possible in destroying the 
stockpile of bulk VX nerve agent stored at Newport Chemical 
Depot, Indiana, in order to ensure maximum safety and to meet 
international treaty commitments, while proceeding objectively 
and deliberately in ensuring that the disposal of the 
hydrolysate hazardous waste, which results from neutralization 
of the VX agent, in a commercial hazardous water treatment 
facility does not compromise the public health and safety of 
the citizens or the environment near such a facility.
      Elsewhere in this report the conferees have recommended a 
provision that would require the Under Secretary of Defense for 
Acquisition, Technology and Logistics and the Secretary of the 
Army to jointly prepare and annually update a strategic 
reportfor future activities and funding of the chemical 
demilitarization program.
      Section 1421 of the Department of Defense Authorization 
Act, 1986 (section 1521 of title 50, United States Code, Public 
Law 99-145) requires that funds for the chemical 
demilitarization program, including those for military 
construction, shall be set forth in the budget of the 
Department for any fiscal year as a separate account and shall 
not be included in the budget accounts for any military 
department. Section 141 of the National Defense Authorization 
Act for fiscal year 2003 (Public Law 107-314) requires that the 
Under Secretary of Defense (Comptroller) annually certify to 
the congressional defense committees that the budget request 
for the chemical agents and munition destruction program has 
been submitted in accordance with the requirements of section 
1421. The Department submitted the fiscal year 2005 budget 
request for chemical demilitarization in an Army account, 
contrary to the law. The conferees expect the Department to 
comply with the law in future budget requests by submitting the 
budget request for chemical agents and munitions destruction in 
a Department of Defense account.

                  Subtitle B--Environmental Provisions

Satisfaction of Superfund audit requirements by the Inspector General 
        of the Department of Defense (sec. 311)
      The Senate amendment contained a provision (sec. 323) 
that would allow the Inspector General of the Department of 
Defense the discretion to audit Superfund financial 
transactions on a periodic basis.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
      The conferees expect that a periodic review would result 
in an audit at least every three years.
Reimbursement of Environmental Protection Agency for certain costs in 
        connection with Moses Lake Wellfield Superfund Site, Moses 
        Lake, Washington (sec. 312)
      The Senate amendment contained a provision (sec. 322) 
that would provide discretionary authority to the Secretary of 
Defense to transfer not more than $524,927 to the Moses Lake 
Wellfield Superfund Site (Moses Lake), 10-6J Special Account, 
formerly the home of Larson Air Force Base. This payment would 
be for reimbursement to the Environmental Protection Agency for 
costs and interest incurred to perform a remedial investigation 
and feasibility study at Moses Lake, where the groundwater is 
apparently contaminated with trichloroethylene.
      The House bill contained no similar provision.
      The House recedes.
Increase in authorized amount of environmental remediation, Front 
        Royal, Virginia (sec. 313)
      The Senate amendment contained a provision (sec. 325) 
that would amend section 591(a)(2) of the Water Resources 
Development Act of 1999 (Public Law 106-53) by increasing the 
authorized level by $10.0 million for environmental remediation 
in Front Royal, Virginia.
      The House bill contained no similar provision.
      The House recedes.
Small Boat Harbor, Unalaska, Alaska (sec. 314)
      The conferees agree to include a provision that requires 
the Secretary of the Army to carry out the small boat harbor 
project in Unalaska, Alaska. The conferees note that the total 
estimated cost is $23.2 million, with an estimated federal cost 
of $11.5 million and an estimated non-federal cost of $11.7 
million. The project shall be carried out in accordance with 
the plans and subject to the conditions recommended in a final 
report of the Chief of Engineers, if a favorable final report 
of the Chief for the project is completed not later than 
December 31, 2004.
Report regarding encroachment issues affecting Utah Test and Training 
        Range, Utah (sec. 315)
      The House bill included a provision (sec. 311) that would 
require the Secretary of the Air Force to submit a report to 
the Committees on Armed Services of the Senate and the House of 
Representatives that outlines current and anticipated 
encroachments on the use of the special use airspace of the 
Utah Test and Training Range (UTTR). The Senate amendment 
included a similar provision (sec. 329). The Senate amendment 
also confirmed a prohibition on ground military operations in 
the covered wilderness study area within UTTR. The Senate 
amendment further clarified that nothing in the provision would 
prevent required maintenance of existing communications, 
instrumentation, or electronic tracking systems necessary for 
effective testing and training to meet military requirements in 
UTTR.
      The House recedes with a technical amendment.
Comptroller General Study and report on Alternative Technologies to 
        decontaminate groundwater at Department of Defense 
        installations (sec. 316)
      The Senate amendment contained a provision (sec. 326) 
which would require the Comptroller General of the United 
States to conduct a study to determine whether or not cost-
effective technologies are available to the Department of 
Defense for the cleanup of groundwater contamination at 
Department installations in lieu of traditional methods.
      The House bill contained no similar provision.
      The House recedes with an amendment clarifying the scope 
of the study.
Comptroller General study and report on drinking water contamination 
        and related health effects at Camp Lejeune, North Carolina 
        (sec. 317)
      The Senate amendment contained a provision (sec. 324) 
that would require the Comptroller General of the U.S. to 
conduct a study of the history of drinking water contamination 
at the United States Marine Corps (USMC) base at Camp Lejeune, 
North Carolina.
      The House bill contained no similar provision.
      The House recedes with an amendment clarifying the scope 
of the study.
Sense of Congress regarding perchlorate contamination of ground and 
        surface water from Department of Defense activities (sec. 318)
      The Senate amendment contained a provision (sec. 327) 
that would express the sense of the Senate that the Department 
of Defense should develop a national plan to remediate 
perchlorate contamination specifically to: (1) ensure the 
Department is prepared to respond quickly and appropriately 
once a drinking water standard is established; (2) continue 
remediation at those sites where perchlorate contamination 
poses an imminent and substantial endangerment to public 
health; (3) develop a plan to remediate perchlorate 
contamination in cases in which such contamination from the 
Department's activities is present in ground or surface water 
at levels the Department determines pose a hazard to human 
health; and (4) continue the process of evaluating and 
prioritizing sites without waiting for the development of a 
federal standard.
      The House bill contained no similar provision.
      The House recedes with an amendment clarifying the scope 
of the sense of the Congress.

                 Subtitle C-Workplace and Depot Issues

Simplification of annual reporting requirements concerning funds 
        expended for depot maintenance and repair workloads (sec. 321)
      The House bill contained a provision (sec. 321) that 
would amend section 2466(d) of title 10, United States Code, to 
require the Secretary of Defense to submit to Congress a report 
on the percentage of funds expended or expected to be expended 
for depot maintenance and repair workloads in the public and 
private sectors.
      The Senate amendment contained a similar provision 
(section 331) that would simplify and improve the two separate 
annual reports required by section 2466(d) of title 10, United 
States Code, that the Department of Defense prepares relating 
to the percentage of funds expended or projected to be expended 
for depot maintenance and repair workloads in the public and 
private sectors.
      The House recedes with a technical amendment.
Repeal of annual reporting requirement concerning management of depot 
        employees (sec. 322)
      The House bill contained a provision (sec. 322) that 
would repeal section 2472(b) of title 10, United States Code, 
which currently requires the Secretary of Defense to report 
annually to the Committees on Armed Services of the Senate and 
the House of Representatives the number of Department of 
Defense employees employed and expected to be employed during 
that fiscal year to perform depot level maintenance and repair 
of materiel.
      The Senate amendment contained a similar provision (sec. 
332).
      The Senate recedes.
Extension of special treatment for certain expenditures incurred in the 
        operation of Centers of Industrial and Technical Excellence 
        (sec. 323)
      The Senate amendment contained a provision (sec. 333) 
that would extend for three years section 2474(f) of title 10, 
United States Code. Section 2474(f) excludes all work performed 
by non-federal personnel at designated Centers of Industrial 
and Technical Excellence from the 50 percent limitation on 
contracting for depot maintenance in section 2466(a) of title 
10, United States Code, if the personnel are performing the 
work pursuant to a public-private partnership.
      The House bill contained no similar provision.
      The House recedes.
Temporary authority for contractor performance of security-guard 
        functions (sec. 324)
      The Senate amendment contained a provision (sec. 362) 
that would extend for two years the authority granted in 
section 332 of the Bob Stump National Defense Authorization Act 
for Fiscal Year 2003 (Public Law 107-314) to hire contract 
security guards on a temporary basis to fill positions that 
would otherwise be filled by members of the Armed Forces.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary of Defense to submit a report on the use of this 
authority no later than December 1, 2005.
Pilot program for purchase of certain municipal services for Army 
        installation (sec. 325)
      The Senate amendment contained a provision (sec. 363) 
that would authorize a pilot program under which the secretary 
of a military department could provide for the purchase of 
local governmental services at a Department of Defense 
installation from the local government responsible for serving 
the area.
      The House bill contained no similar provision.
      The House recedes with an amendment that would limit the 
pilot program to two Department of Army installations located 
in the United States.
Bid protests by federal employees in actions under Office of Management 
        and Budget Circular A-76 (sec. 326)
      The House bill contained a provision (sec. 325) that 
would express the sense of Congress that Department of Defense 
civilian employees (or their representatives) and contractors 
(or their representatives) should receive comparable treatment 
regarding legal standing to challenge the way in which a 
public-private competition has been conducted before the 
Government Accountability Office (GAO) or in the U.S. Court of 
Federal Claims.
      The Senate amendment contained a provision (sec. 1107) 
that would provide such legal standing, in GAO bid protests 
only, to both: (1) the official who submits an agency tender in 
a public-private competition (the Agency Tender Official 
(ATO)); and (2) a person representing a majority of the 
employees of the federal agency who are engaged in the 
performance of the activity or function that is subject to the 
competition. The Senate amendment also authorized the ATO or a 
person representing a majority of the employees to intervene in 
protests filed in the U.S. Court of Federal Claims.
      The House recedes with an amendment providing the ATO 
legal standing in GAO bid protests of public-private 
competitions for functions performed by more than 65 full-time 
federal employees.
      Under the conference agreement, the ATO would be required 
to file a protest at the request of a majority of the employees 
of the federal agency who are engaged in the performance of the 
activity or function that is subject to the competition unless 
the ATO determines that there is no reasonable basis for the 
protest. A determination by the ATO would not be subject to 
judicial or administrative appeal, but would be reported to the 
congressional defense committees. A person representing a 
majority of the employees would not have standing to file a 
protest, but would have the right to intervene in a protest 
filed by an interested party, including the ATO. The conference 
agreement would not address protests that are filed in the 
United States Court of Federal Claims.
Limitations on conversion of work performed by Department of Defense 
        civilian employees to contractor performance (sec. 327)
      The House bill contained a provision (sec. 323) that 
would: (1) codify the prohibition on converting an activity or 
function to private sector performance unless the conversion 
would result in savings of at least 10 percent or $10.0 
million; (2) prohibit the Department from breaking up a 
function to avoid applicable thresholds for conducting a public 
competition; (3) ensure that a public competitor is not 
disadvantaged by the offer of a private competitor to reduce 
costs by reducing health care benefits for its employees; and 
(4) require the Department to conduct a competition, including 
an agency tender, a most efficient organization plan, and a 
formal cost comparison for any function performed by 10 or more 
civilian employees.
      The Senate amendment contained a similar provision (sec. 
851).
      The Senate recedes with an amendment that would: (1) 
codify the prohibition on converting an activity or function to 
private sector performance unless the conversion would result 
in savings of at least 10 percent or $10.0 million when 
conducting a public-private competition under OMB circular A-76 
dated May 29, 2003; and (2) prohibit the Department of Defense 
from breaking up a function to avoid applicable thresholds for 
conducting a public-private competition under A-76 Circular A-
76, May 29, 2003.
      The conferees agree to exclude the pilot program for 
best-value source selection authorized by section 336 of the 
National Defense Authorization Act for Fiscal Year 2004 (Public 
Law 103-136) from the requirement to apply a price differential 
of 10 percent or $10.0 million. The conferees expect the 
Secretary of Defense to utilize the price differential in the 
cost or price component of an evaluation under the pilot 
program, but understand that cost or price alone is not 
determinative in a best value competition.
      The conferees note that the Department of Defense 
Appropriations Act for Fiscal Year 2005 (Public Law 108-257) 
includes a provision that would require the Department to 
ensure, in fiscal year 2005, that a public competitor is 
notdisadvantaged by the offer of a private competitor to reduce costs 
by reducing health care benefits for its employees and that the 
Department must conduct a competition, including an agency tender, a 
most efficient organization plan, and a formal cost comparison for any 
function performed by 10 or more civilian employees.
      The conferees direct the Comptroller General to review 
the implementation and impact of the Appropriations provision 
with regard to health care costs and competition of small 
agency functions. The Comptroller General's review should also 
address the full range of benefits provided by public and 
private sector employers, the manner in which these benefits 
are considered in a public-private competition, the impact of 
any benefit changes on employees who transition to private 
sector employment as a result of a public-private competition, 
and steps that could be taken to ameliorate any adverse impact 
of such a transition.
      The conferees direct the Comptroller General to provide a 
preliminary report on this review to the congressional defense 
committees by no later than May 1, 2005, and a final report by 
no later than three months after the end of fiscal year 2005.
Competitive sourcing reporting requirement (sec. 328)
      The House bill contained a provision (sec. 326) that 
would require the Inspector General of the Department of 
Defense to submit to Congress a report addressing whether the 
Department has implemented a comprehensive and reliable system 
to track and assess the results of public-private competitions. 
The House provision would establish a number of specific 
elements to be addressed in the tracking system.
      The Senate amendment contained a compatible provision 
(sec. 853). The Senate provision would not establish the 
specific reporting elements to be addressed in the tracking 
system.
      The House recedes.
      The conferees note that section 354 of the Floyd D. 
Spence National Defense Authorization Act for Fiscal Year 2001 
(Public Law 106-398) and section 385 of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85) 
required the Department to maintain a system for tracking the 
results of public-private competitions and established the 
specific elements to be addressed in the tracking system.

                   Subtitle D--Information Technology

Preparation of Department of Defense plan for transition to Internet 
        Protocol version 6 (sec. 331)
      The House bill contained a provision (sec. 331) that 
would require the Secretary of Defense to prepare a transition 
plan to evaluate how the Department of Defense's information 
technology systems may be affected by the Department's decision 
to transition from the current protocols to Internet Protocol 
version 6 (IPv6). The provision would also direct the Secretary 
to conduct and manage tests of IPv6 and the global information 
grid to ensure the needs of the warfighter will continue to be 
met.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary to include cost estimates in the IPv6 transition 
plan.
      The conferees expect that any testing will be performed 
under the direction and review of the Director of Operational 
Test and Evaluation, who shall identify the most appropriate 
facilities and organizations to perform the testing. The 
conferees direct the Director to provide an update on the 
ongoing test program and test results no later than September 
30, 2005.
Defense business enterprise architecture, system accountability, and 
        conditions for obligation of funds for defense business system 
        modernization (sec. 332)
      The House bill contained a provision (sec. 332) that 
would require the Department of Defense to develop a 
comprehensive architecture for all business systems of the 
Department. The provision would also prohibit significant 
investments in new business systems or upgrades to existing 
business systems that would be inconsistent with the new 
architecture.
      The Senate amendment contained a similar provision (sec. 
1004).
      The Senate recedes with an amendment that would: (1) 
clarify the criteria for approving business system 
modernization expenditures; (2) provide that a covered 
expenditure for a business system that has not been approved is 
a violation of the Anti-Deficiency Act (31 U.S.C., section 
1341); (3) provide additional detail on the composition of the 
enterprise architecture and transition plan; (4) clarify that 
domain managers have responsibility for the review, approval, 
and oversight of defense business system acquisition and 
operation, but not for the execution of such requirements; (5) 
clarify the budget justification material to be provided by the 
Secretary of Defense in support of the President's budget; (6) 
require the Secretary to appoint a Vice Chairman of the Defense 
Business System Management Committee; (7) clarify the 
responsibilities of the Committee; and (8) require the 
Comptroller General to assess the Department's compliance with 
the requirements of the provision.
Report on maturity and effectiveness of the Global Information Grid 
        Bandwidth Expansion (GIG-BE) (sec. 333)
      The Senate amendment contained a provision (sec. 142) 
that would require the Secretary of Defense to submit a report 
to the congressional defense committees on a test program to 
demonstrate the maturity and effectiveness of the Global 
Information Grid-Bandwidth Expansion (GIG-BE).
      The House bill amendment contained no similar provision.
      The House recedes with a technical amendment.

             Subtitle E--Extensions of Program Authorities

Two-year extension of Department of Defense telecommunications benefit 
        (sec. 341)
      The Senate amendment contained a provision (sec. 341) 
that would extend until September 30, 2006 the Department of 
Defense telecommunications benefit authorized in section 344 of 
the National Defense Authorization Act for Fiscal Year 2004 
(Public Law 108-136).
      The House bill contained no similar provision.
      The House recedes.
      The conferees are concerned that the Department has not 
competitively awarded a contract under this section, relying 
instead on an existing contract. The conferees expect that the 
Secretary of Defense will, as soon as possible, award a 
contract to a commercial firm for the purposes of this 
provision through competitive procedures.
Extension of Arsenal Support Program Initiative (sec. 342)
      The House bill contained a provision (sec. 351) that 
would amend Section 343 of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (Public Law 106-398), to 
authorize the Secretary of the Army to extend the Arsenal 
Support Initiative Program through fiscal year 2008. This 
section would also require the Secretary to report to the 
Committees on Armed Services of the Senate and the House of 
Representatives by March 1, 2007, the benefits of the program, 
the extent to which the program met its goals, and whether the 
program should be made permanent.
      The Senate amendment contained a similar provision (sec. 
342) that would extend the Arsenal Support Program Initiative 
through the end of fiscal year 2006.
      The Senate recedes.
Two-year extension of warranty claims recovery pilot program (sec. 343)
      The Senate amendment contained a provision (sec. 343) 
that would extend, through September 30, 2006, the warranty 
claims recovery pilot program authorized in section 391 of the 
National Defense Authorization Act for Fiscal Year 1998 (Public 
Law 105-85).
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary of Defense to submit a report on the commercial 
use of warranty recovery services, and to determine whether the 
pilot should be made permanent or extended beyond 2006.

                       Subtitle F--Other Matters

Reimbursement for certain protective, safety, or health equipment 
        purchased by or for members of the Armed Forces deployed in 
        contingency operations (sec. 351)
      The House bill contained a provision (sec. 304) that 
would authorize the Secretary of Defense to reimburse service 
members who purchased protective body armor for use while 
deployed in connection with Operation Noble Eagle, Operation 
Enduring Freedom, or Operation Iraqi Freedom, if the service 
member did not receive the protective body armor before 
engaging in such operations where such body armor might be 
necessary. Reimbursement would be available to service members 
who purchased the body armor between September 1, 2003 and 
December 31, 2003.
      The Senate amendment contained a provision (sec. 1072) 
that would direct the Secretary to reimburse service members, a 
relative of the service member, a nonprofit organization, or a 
community group, who purchased any protective, safety, or 
health equipment for use by such service member while deployed 
in connection with Operation Noble Eagle, Operation Enduring 
Freedom, or Operation Iraqi Freedom, provided that the unit 
commander of the service member certifies that such equipment 
was critical to the protection, safety, or health of the 
service member. The provision also stated that the type of 
protective, safety, or health equipment would include personal 
body armor, collective armor or protective equipment (including 
armor or protective equipment for high mobility multi-purpose 
wheeled vehicles), and items provided through the Rapid 
Fielding Initiative of the Army such as the advanced (on-the-
move) hydration system, the advanced combat helmet, the close 
combat optics system, a Global Positioning System (GPS) 
receiver, and a solder intercommunication device. Non-military 
equipment would be treated as protective, safety, and health 
equipment only if such equipment provides protection, safety, 
or health benefits, as the case may be, such as would be 
provided by equipment meeting military specifications. 
Reimbursement would be available for armor or protective 
equipment purchased for high mobility multi-purpose wheeled 
vehicles between September 11, 2001 and July 31,2004, and for 
any other protective, safety, and health equipment purchased between 
September 11, 2001 and December 31, 2003 or any date thereafter as 
determined by the Secretary. The provision would further establish a 
limit on the amount of reimbursement, and provide authority for the 
Secretary to assume title or ownership of any protective, safety, or 
health equipment for which a service member was reimbursed.
      The House recedes with an amendment that would direct the 
Secretary to reimburse service members who purchased, or had 
another person purchase on their behalf, any protective, 
safety, or health equipment for use while deployed in 
connection with Operation Noble Eagle, Operation Enduring 
Freedom, or Operation Iraqi Freedom, provided that: (1) the 
Secretary certifies that the equipment was critical to the 
protection, safety, and health of the service member; (2) the 
equipment was not issued to the service member before the 
service member was on duty in an area in which the service 
member was in imminent danger of being exposed to hostile fire; 
and (3) the equipment was purchased between September 11, 2001 
and July 31, 2004. The amendment would also limit the amount of 
reimbursement to $1,100 per item, establish a one-year period 
for the submission of claims for reimbursement, and direct the 
Secretary to establish rules not later than 120 days after date 
of enactment of this Act to expedite reimbursements, to include 
addressing circumstances under which the United States will 
assume title or ownership of any protective, safety, or health 
equipment for which a service member was reimbursed.
      The conferees direct the Secretary to consult with the 
appropriate chain of command to ensure all criteria for 
reimbursement are attained. The conferees also note that the 
type of protective, safety, or health equipment for which a 
reimbursement is made may include personal body armor, 
collective armor or protective equipment (including armor or 
protective equipment for high mobility multi-purpose wheeled 
vehicles), and items provided through the Rapid Fielding 
Initiative of the Army such as the advanced (on-the-move) 
hydration system, the advanced combat helmet, the close combat 
optics system, a Global Positioning System (GPS) receiver, and 
a solder intercommunication device. Non-military equipment for 
which a reimbursement could be made should be treated as 
protective, safety, and health equipment only if such equipment 
provides protection, safety, or health benefits, as the case 
may be, such as would be provided by equipment meeting military 
specifications.
Limitation on preparation or implementation of Mid-Range Financial 
        Improvement Plan pending report (sec. 352)
      The House bill contained a provision (sec. 352) that 
would prohibit the Secretary of Defense from obligating 
operation and maintenance funds to implement the Mid-Range 
Financial Improvement Plan until the Secretary provides to the 
Committees on Armed Services of the Senate and the House of 
Representatives an explanation of how the operation and 
maintenance funds are to be utilized in fiscal year 2005 and 
the estimated cost for this plan in future years.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would also 
require the Secretary to provide a written determination that 
the Department has developed an enterprise architecture and 
transition plan for its business systems that meets the 
requirements of section 2222 of title 10, United States Code 
(as added by section 332.
Pilot program to authorize Army working-capital funded facilities to 
        engage in cooperative activities with non-Army entities (sec. 
        353)
      The Senate amendment contained a provision (sec. 364) 
that would authorize Army industrial activities that operate 
under the working capital fund to enter into public-private 
partnerships with non-Army entities, and allow the proceeds to 
be retained by the entity engaged in the partnership.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
such contracts or cooperative arrangements, but would not 
direct that the facility involved retain the proceeds.
Transfer of excess Department of Defense personal property to assist 
        firefighting agencies (sec. 354)
      The House bill contained a provision (sec. 1079) that 
would amend section 2576b of title 10, United States Code, to 
modify the recipients of the Department of Defense excess 
personal property to assist rural firefighting agencies. The 
provision would require the Secretary of Defense to enter into 
an agreement with the Secretary of Agriculture to facilitate 
the reutilization of the Department's excess personal property 
by firefighting agencies in rural areas. The agreement between 
the Secretary of Defense and Secretary of Agriculture would 
include a prohibition on the transfer of the Department's 
aircraft until the end of a one-year period beginning on the 
date that the Secretary of Agriculture submits a report to the 
House Committee on Agriculture, the Senate Committee on 
Agriculture, Nutrition and Forestry, and the Committee on Armed 
Services of the Senate and the House of Representatives on the 
measures taken by the U.S. Forest Service in response to 
National Transportation Safety Board Recommendations A-04-29 
through A-04-33. The provision would also require that personal 
property being transferred for reutilization by firefighting 
agencies in rural areas be affordeda property disposal priority 
at least equal to the priority given to the military departments and 
other entities within the United States.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would amend 
section 2576b of title 10, United States Code, to direct the 
Secretary of Defense to transfer to a firefighting agency in a 
State any personal property of the Department that the 
Secretary determines is excess to the needs of the Department 
and suitable for use in providing fire and emergency medical 
services, including personal protective equipment and equipment 
for communications and monitoring.

                   Legislative Provisions Not Adopted

Amount for One Source military counseling and referral hotline
      The Senate amendment contained a provision (sec. 304) 
that would authorize an increase of $5.0 million for the 
Department of Defense One Source counseling and referral 
hotline.
      The House bill contained no similar provision.
      The Senate recedes.
Reduction in authorization for Air Force operations and maintenance
      The House bill contained a provision (sec. 305) that 
would reduce the amount authorized to be appropriated to the 
Air Force by $10.0 million, to be derived from the 
transportation working capital fund.
      The Senate amendment contained no similar provision.
      The House recedes.
Family Readiness Program of the National Guard
      The Senate amendment contained a provision (sec. 313) 
that would increase the amount authorized to be appropriated in 
Operation and Maintenance, Army by $10.0 million for the Family 
Readiness Program of the National Guard.
      The House bill contained no similar provision.
      The Senate recedes.
Payment of certain private cleanup costs in connection with Defense 
        Environmental Restoration Program
      The Senate amendment contained a provision (sec. 321) 
that would allow the Secretary of Defense to execute 
environmental restoration agreements with owners of covenant 
properties.
      The House bill contained no similar provision.
      The Senate recedes.
Public-private competition pilot program
      The House bill contained a provision (sec. 324) that 
would require the Secretary of Defense to establish a pilot 
program to examine the use of public-private competition 
process on new requirements and functions currently being 
performed by contractors that could be performed by civilian 
employees. Under the pilot program, the Secretary would be 
required to allow civilian employees to compete through the 
standard competitive process of Office of Management and Budget 
Circular A-76 for: (1) approximately one-tenth of the new 
requirements of the Department of Defense; and (2) functions 
currently being performed by a number of contractor employees 
that is approximately one-tenth of the number of civilian 
employees subject to public-private competition during the same 
period.
      The Senate amendment contained a provision (sec. 852) 
that would require the Secretary to prescribe guidelines and 
procedures for ensuring that fair consideration is given to 
using federal government employees to perform new work and 
functions that are currently performed by contractors. The 
provision would provide that no public-private competition may 
be required before assigning government employees to perform 
new work or work that was previously performed by contractors.
      The conference report does not include either provision.
      The conferees believe that the Department's workforce of 
civilian employees is an important resource that the Department 
should fully utilize. The National Security Personnel System 
gives the Secretary broad authority to hire new civilian 
employees and to develop new competencies within the 
Department's civilian workforce. The conferees believe that 
Department of Defense managers must have flexibility not only 
to assign work to civilian employees, but also to build and 
structure the civilian workforce to perform appropriate tasks, 
free of artificial or unneeded regulatory constraints.
      The conferees direct the Secretary to work with the 
Director of the Office of Management and Budget and other 
appropriate officials to ensure that the Department has the 
flexibility that it needs to assign work to its civilian 
workforce and to build needed capabilities in that workforce.
Establishment of joint program office to improve interoperability of 
        battlefield management command and control systems
      The House bill contained a provision (sec 333) that would 
establish a joint program office to improve interoperability 
ofbattlefield management command and control systems.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees note that the Department of Defense has 
struggled for many years to develop and field command, control, 
communications, computers, and intelligence, surveillance, and 
reconnaissance systems that interoperate effectively across all 
of the military services and with coalition forces. The 
conferees note that there are a number of current efforts 
throughout the Department to develop portions of a ``Family of 
Interoperable Operating Pictures'', including the Single 
Integrated Air Picture, the Single Integrated Ground Picture, 
the Single Integrated Maritime Picture, the Special Operations 
Forces Picture, and the Single Integrated Space Picture. The 
conferees are concerned that without proper management, 
oversight, and coordination, as well as a single over-arching 
architecture that controls all systems, these efforts could 
become redundant and wasteful, and lack the interoperability 
required to effectively support joint warfighting missions.
      Therefore, the conferees direct the Secretary of Defense 
to provide to the congressional defense committees a report no 
later than March 15, 2005 that identifies all funds for 
research and procurement activities related to the development 
of joint battlefield management command and control systems in 
the Department.
      This report shall also include baselines for the Family 
of Interoperable Pictures, including a baseline for the Single 
Integrated Air Picture, the Single Integrated Ground Picture, 
the Single Integrated Maritime Picture, the Special Operations 
Forces Picture, and the Single Integrated Space Picture. The 
baselines shall be consistent with those required for major 
defense acquisition programs under Department regulations, and 
shall include a description of the overall systems 
architecture, specific milestones and performance measures for 
each developmental block, the schedule for achieving those 
performance goals, the estimated total and annual costs to meet 
that schedule, and a description of the management approach 
being used to achieve program goals.
Procurement of follow-on contracts for the operation of five Champion-
        class T-5 tank vessels
      The House bill contained a provision (sec. 353) that 
would direct the Secretary of the Navy to consider proposals 
for the follow-on Department of the Navy contracts to operate 
five Champion-class T-5 tank vessels only from an entity that 
is a citizen under section 2 of the Shipping Act, 1916 (46 App. 
U.S.C. 802).
      The Senate amendment contained no similar provision.
      The House recedes.
Expansion of Department of Defense excess personal property disposal 
        program to include health agencies
      The House bill contained a provision (sec. 1080) that 
would amend section 2576b of title 10, United States Code, to 
authorize the Secretary of Defense to expand the Department of 
Defense excess personal property program to include State 
health agencies.
      The Senate amendment contained no similar provision.
      The House recedes.
              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                     Legislative Provisions Adopted

                       Subtitle A--Active Forces

End strengths for active forces (sec. 401)
      The House bill contained a provision (sec. 401) that 
would authorize the following end strengths for active forces 
as of September 30, 2005: Army, 482,400; Navy, 365,900; Marine 
Corps, 175,000; and Air Force, 359,700.
      The Senate amendment contained a similar provision (sec. 
401) that would authorize an active-duty end strength for the 
Army of 502,400, subject to the condition that costs of active-
duty personnel of the Army in excess of 482,400 shall be paid 
out of funds authorized to be appropriated for fiscal year 2005 
for a contingent emergency reserve fund or as an emergency 
supplemental appropriation.
      The House recedes with an amendment that would authorize 
an end strength of 178,000 for the Marine Corps subject to the 
condition that costs in excess of 175,000 active-duty Marines 
shall be paid out of funds authorized to be appropriated for 
fiscal year 2005 for a contingent emergency reserve fund or as 
an emergency supplemental appropriation.
      The conferees recommend end strength levels for active 
forces for fiscal year 2005 as set forth in the following 
table:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                   FY 2005                         Change from
                                                                         FY 2004     -------------------------------------------------------------------
                              Service                                   authorized                         Conferee         FY 2005          FY 2004
                                                                                          Request       recommendation      request         authorized
--------------------------------------------------------------------------------------------------------------------------------------------------------
Army...............................................................          482,400          482,400          502,400           20,000           20,000
Navy...............................................................          373,800          365,900          365,900                0           -7,900
Marine Corps.......................................................          175,000          175,000          178,000            3,000            3,000
Air Force..........................................................          359,300          359,700          359,700                0              400
                                                                    ------------------------------------------------------------------------------------
      DoD Total....................................................        1,390,500        1,383,000        1,406,000           23,000           15,500
--------------------------------------------------------------------------------------------------------------------------------------------------------

Revision in permanent active duty end strength minimum levels (sec. 
        402)
      The House bill contained a provision (sec. 402) that 
would establish new minimum active-duty end strengths for the 
Navy of 365,900 and Air Force of 359,700 as of October 1, 2004.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would establish 
new minimum active-duty end strengths for the Army of 502,400 
and the Marine Corps of 178,000.
Additional authority for increases of Army and Marine Corps active duty 
        personnel end strengths for fiscal years 2005 through 2009 
        (sec. 403)
      The House bill contained provisions (sec. 1531 and 1532) 
that would increase the active Army and Marine Corps end 
strength authorized for fiscal year 2005 by 10,000 and 3,000 
respectively above the authorization in section 401 of the 
National Defense Authorization Act for Fiscal Year 2004. These 
provisions would also authorize corresponding active-duty Army 
and Marine Corps end strengths for fiscal years 2006 and 2007 
and prescribe corresponding minimum end strengths under section 
691(b) of title 10, United States Code.
      The Senate amendment contained a provision (sec. 402) 
that would authorize a temporary increase in the Army's active-
duty end strength of up to 30,000 during fiscal years 2005 
through 2009. The provision would require that if the Secretary 
of Defense plans to increase the Army active-duty end strength 
above the levels authorized for fiscal year 2004, then the 
budget for the Department for such fiscal years as submitted to 
Congress shall specify the amounts necessary for funding the 
active duty end strength of the Army in excess of 482,400.
      The House recedes with an amendment that would authorize 
a temporary increase in the Marine Corps' active-duty end 
strength of up to 9,000 over 175,000, the level set forth in 
section 401 of the National Defense Authorization Act for 
Fiscal Year 2004 during fiscal years 2005 through 2009. The 
amendment would also require that if the Secretary of Defense 
plans to increase the Army or Marine Corps active-duty end 
strength for a fiscal year, then the budget for the Department 
for such fiscal years as submitted to Congress shall specify 
the amounts necessary for funding the active duty end strength 
of the Army or Marine Corps in excess of 482,400 and 175,000 
respectively.
Exclusion of service academy permanent and career professors from a 
        limitation on certain officer grade strengths (sec. 404)
      The Senate amendment contained a provision (sec. 403) 
that would amend section 523(b) of title 10, United States 
Code, to exclude up to 50 permanent professors at both the U.S. 
Military Academy and U.S. Air Force Academy, and up to 50 
career military professors at the U.S. Naval Academy from the 
determination of authorized strengths in prescribed officer 
grades.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.

                       Subtitle B--Reserve Forces

End strengths for Selected Reserve (sec. 411)
      The House bill contained a provision (sec. 411) that 
would authorize the following end strengths for Selected 
Reserve personnel, including the end strengths for Reserves on 
active duty in support of the Reserves as of September 30, 
2005: the Army National Guard of the United States, 350,000; 
the Army Reserve, 205,000; the Naval Reserve, 83,400; the 
Marine Corps Reserve, 39,600; the Air National Guard of the 
United States, 106,800; the Air Force Reserve, 76,100; and the 
Coast Guard Reserve, 10,000.
      The Senate amendment contained an identical provision 
(sec. 411).
      The conference agreement includes this provision.
      The conferees recommend end strength levels for the 
Selected Reserve for fiscal year 2005 as set forth in the 
following table:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                   FY 2005                         Change from
                                                                         FY 2004     -------------------------------------------------------------------
                              Service                                   authorized                         Conferee         FY 2005          FY 2004
                                                                                          Request       recommendation      request         authorized
--------------------------------------------------------------------------------------------------------------------------------------------------------
Army National Guard................................................          350,000          350,000          350,000                0                0
Army Reserve.......................................................          205,000          205,000          205,000                0                0
Naval Reserve......................................................           85,900           83,400           83,400                0           -2,500
Marine Corps Reserve...............................................           39,600           39,600           39,600                0                0
Air National Guard.................................................          107,030          106,800          106,800                0             -230
Air Force Reserve..................................................           75,800           76,100           76,100                0              300
                                                                    ------------------------------------------------------------------------------------
      DoD Total....................................................          863,330          860,900          860,900                0           -2,430
Coast Guard Reserve................................................           10,000           10,000           10,000                0                0
--------------------------------------------------------------------------------------------------------------------------------------------------------

End strengths for Reserves on active duty in support of the Reserves 
        (sec. 412)
      The House bill contained a provision (sec. 412) that 
would authorize the following end strengths for Reserves on 
active duty in support of the Reserves as of September 30, 
2005: the Army National Guard of the United States, 26,476; the 
Army Reserve, 14,970; the Naval Reserve, 14,152; the Marine 
Corps Reserve, 2,261; the Air National Guard of the United 
States, 12,225; and the Air Force Reserve, 1,900.
      The Senate amendment contained a similar provision (sec. 
412) that would authorize end strengths of 26,602 for the Army 
National Guard, 12,253 for the Air National Guard, and 
identical end strengths for the other services.
      The House recedes.
      The conferees recommend end strength levels for Reserves 
on active duty in support of the Reserves as set forth in the 
following table:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                   FY 2005                         Change from
                                                                         FY 2004     -------------------------------------------------------------------
                              Service                                   authorized                         Conferee         FY 2005          FY 2004
                                                                                          Request       recommendation      request         authorized
--------------------------------------------------------------------------------------------------------------------------------------------------------
Army National Guard................................................           25,599           26,476           26,602              126             1003
Army Reserve.......................................................           14,374           14,970           14,970                0              596
Naval Reserve......................................................           14,384           14,152           14,152                0             -232
Marine Corps Reserve...............................................            2,261            2,261            2,261                0                0
Air National Guard.................................................           12,191           12,225           12,263               28               62
Air Force Reserve..................................................            1,660            1,900            1,900                0              240
                                                                    ------------------------------------------------------------------------------------
      DoD Total....................................................           70,469           71,984           72,138              154             1669
--------------------------------------------------------------------------------------------------------------------------------------------------------

End strengths for military technicians (dual status) (sec. 413)
      The House bill contained a provision (sec. 413) that 
would authorize the following end strengths for military 
technicians (dual status) as of September 30, 2005: the Army 
National Guard of the United States, 25,076; the Army Reserve, 
7,299; the Air National Guard of the United States, 22,956; and 
the Air Force Reserve, 9,954.
      The Senate amendment contained an identical provision 
(sec. 413).
      The conference agreement includes this provision.
      The conferees recommend end strength levels for military 
technicians (dual status) as set forth in the following table:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                   FY 2005                         Change from
                                                                         FY 2004     -------------------------------------------------------------------
                              Service                                   authorized                         Conferee         FY 2005          FY 2004
                                                                                          Request       recommendation      request         authorized
--------------------------------------------------------------------------------------------------------------------------------------------------------
Army National Guard................................................           24,589           25,076           25,076                0              487
Army Reserve.......................................................            6,949            7,299            7,299                0              350
Air National Guard.................................................           22,806           22,956           22,956                0              150
Air Force Reserve..................................................            9,991            9,954            9,954                0              -37
                                                                    ------------------------------------------------------------------------------------
      DoD Total....................................................           64,335           65,285           65,285                0              950
--------------------------------------------------------------------------------------------------------------------------------------------------------

Fiscal year 2005 limitation on number of non-dual status technicians 
        (sec. 414)
      The House bill contained a provision (sec. 414) that 
would establish the maximum end strengths for the Reserve 
components of the Army and Air Force for non-dual status 
technicians as ofSeptember 30, 2005.
      The Senate amendment contained an identical provision 
(sec. 414).
      The conference agreement includes this provision.
Maximum number of Reserve personnel authorized to be on active duty for 
        operational support (sec. 415)
      The House bill contained a provision (sec. 403) that 
would authorize the maximum number of Reserve component 
personnel who may be on active duty or full-time National Guard 
duty under section 115(b) of title 10, United States Code, 
during fiscal year 2005 to provide operational support.
      The Senate amendment contained no similar provision.
      The Senate recedes.
      The conferees recommend maximum levels by service for 
Reserve component personnel on full-time, active duty who are 
providing operational support as set forth in the following 
table:

------------------------------------------------------------------------
                                                             FY 2005
                        Service                             conference
                                                          recommendation
------------------------------------------------------------------------
Army National Guard....................................           10,300
Army Reserve...........................................            5,000
Naval Reserve..........................................            6,200
Marine Corps Reserve...................................            2,500
Air National Guard.....................................           10,100
Air Force Reserve......................................            3,600
                                                        ----------------
      DoD Total........................................           37,700
------------------------------------------------------------------------

Accounting and management of Reserve component personnel performing 
        active duty or full-time National Guard duty for operational 
        support (sec. 416)
      The House bill contained a provision (sec. 404) that 
would establish the requirement for an annual congressional 
authorization of the maximum number of Reserve component 
personnel to be on active duty or full-time National Guard duty 
providing operational support. This provision would eliminate 
the current 180-day strength accounting metric that requires 
all reservists on active duty beyond that limit to count 
against Active component end strengths. In its place, the 
section would authorize Reserve component members who are 
voluntarily on active duty for up to three years, or a 
cumulative three years over a four-year period, to not be 
counted against Active component end strengths. The section 
would also exempt Reserve component personnel, authorized by 
this section, from certain officer and enlisted grade limits.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.

              Subtitle C--Authorization of Appropriations

Military personnel (sec. 421)
      The House bill contained a provision (sec. 421) that 
would authorize a total of $104,647.6 million for military 
personnel for the Department of Defense in fiscal year 2005.
      The Senate amendment contained a similar provision (sec. 
421) that would authorize a total of $104,535.5 million for 
military personnel for the Department of Defense in fiscal year 
2005. The Senate amendment also contained $57.5 million in 
military personnel reductions in other titles of the amendment 
that were not reflected in the total contained in section 421. 
Therefore, the net amount authorized to be appropriated to the 
Department by the Senate amendment was $104,478.0 millions.
      The House recedes with an amendment that would authorize 
$106,543.0 million for military personnel for the Department of 
Defense in fiscal year 2005, an increase of $1,731.4 million 
above the budget request.
      The conferees note that in addition to the amounts shown 
below, $1,250.0 million was made available in title XV of this 
act for the additional costs of military personnel associated 
with ongoing operations in Iraq and Afghanistan. The conferees 
provide the following itemization of the increases from the 
budget request related to the military personnel accounts:

                         [Additions in millions]

Add AGR strength for WMD-CST teams............................    $ 14.7
Imminent Danger Pay...........................................      92.5
Family Separation Allowance...................................     135.0
Eliminate SBP--Social Security Offset (Accrual Payment).......     439.0
Enhanced Reserve Education Benefit (Accrual Payment)..........     222.0
Additional military personnel costs...........................     828.2
                    --------------------------------------------------------------
                    ____________________________________________________

      Total...................................................   1,731.4
Armed Forces Retirement Home (sec. 422)
      The House bill contained a provision (sec. 422) that 
would authorize $61.2 million to be appropriated for the 
operation of the Armed Forces Retirement Home during fiscal 
year 2005.
      The Senate amendment contained an identical provision 
(sec. 422).
      The conference agreement includes this provision.
                   TITLE V--MILITARY PERSONNEL POLICY

                       Items of Special Interest

Space cadre
      The conferees appreciate the submission by the Secretary 
of Defense of the human capital resources strategy for space 
personnel, as required in section 547 of the National Defense 
Authorization Act for Fiscal Year 2004 (Public Law 108-87). The 
conferees note, however, that the strategy lacks a detailed 
implementation plan and direct the Secretary to develop such an 
implementation plan. The conferees further direct the Secretary 
of Defense to submit this plan and the Secretary of the Air 
Force to submit the detailed career planning guidance for the 
Air Force space cadre, consistent with direction in the Senate 
report accompanying S. 2400 (S. Rept. 108-260).
      The conferees believe that a comprehensive view of the 
military space community must also consider competencies and 
skills embodied in academia and industry. These institutions 
have valuable tools, expertise, and a skill base that 
contribute to the military space community, as well as unique 
organizational cultures with which the military space cadre 
must interact. The conferees are concerned that the human 
capital resources strategy lacks breadth and depth with respect 
to the relationship of academia and industry to the 
development, education, and training of the space cadre.
      The conferees direct the Secretary of Defense to provide 
the Committees on Armed Services of the Senate and the House of 
Representatives an interim report by March 15, 2005, and a full 
report concurrent with the Department of Defense fiscal year 
2007 budget submission that: (1) assess the ability in 
academia, industry, and government to educate and train a 
community of space professionals, and (2) recommend corrective 
actions to address any shortfalls identified in these education 
and training activities. The reports should also address the 
definition and development of key competencies and skill levels 
in the areas of systems engineering, program management, 
financial management, operations and tactics, and any other 
areas deemed necessary by the Secretary of Defense as they 
relate to military space systems.
Time for holding grade of general, admiral, lieutenant general, or vice 
        admiral
      The conferees are aware of the legislative proposal 
affecting senior military officers in the grades of admiral, 
general, vice admiral, and lieutenant general. This proposal 
would give authority to the Secretary of Defense to exempt 
senior officers in these grades who are on terminal leave from 
counting against applicable grade limits and would enable 
senior military officers, after Senate confirmation and upon 
the assumption of the duties of a position of importance and 
responsibility under section 601 of title 10, United States 
Code, to be promoted. It would repeal the authority to 
``frock'' these officers, or allow them, in advance of their 
actual promotion to a higher grade, to wear the insignia of the 
higher rank of the position that they are assigned to. The 
conferees have long sought to limit the practice of frocking, 
but also have had concerns about continuing efforts by the 
Department to waive senior general and flag officer grade 
limits. The conferees believe this proposal would benefit from 
more time for consideration to better understand the 
implications of the changes in law contained in the informal 
legislative proposal. The conferees urge the Secretary of 
Defense to formally submit a legislative proposal for the 
conferees' consideration during the next defense authorization 
budget request.

                     Legislative Provisions Adopted

                  Subtitle A--Officer Personnel Policy

Transition of active-duty list officer force to a force of all regular 
        officers (sec. 501)
      The House bill contained a provision (sec. 511) that 
would authorize the Secretary of Defense to commission all new 
officer accessions as Regular officer and transition all 
officers on the active-duty list to regular status. The 
provision would implement the recommendation of the Defense 
Science Board Task Force on Human Resources Strategy that all 
new officers, regardless of their commissioning source, be 
given regular commissions in order to enhance professionalism, 
esprit de corps, and retention.
      The Senate amendment contained a similar provision (sec. 
511).
      The House recedes with an amendment that would repeal the 
requirement that a member serve the last six years in a Reserve 
component before being eligible for nonregular service 
retirement.
Repeal of requirement that Deputy Chiefs and Assistant Chiefs of Naval 
        Operations be selected from officers in the line of the Navy 
        (sec. 502)
      The House bill contained a provision (sec. 502) that 
would eliminate the requirement that officers serving in the 
positions of Deputy Chief of Naval Operations and Assistant 
Chief of Naval Operations be line officers. This provision 
would expand the pool of officers who may be considered for 
assignment in these highly responsible positions within the 
Office of the Chief of Naval Operations, to include officers of 
the Navy staff corps.
      The Senate amendment contained an identical provision 
(sec. 512).
      The conference agreement includes this provision.
Limitation on number of officers frocked to major general and rear 
        admiral (sec. 503)
      The Senate amendment contained a provision (sec. 514) 
that would provide that the total number of brigadier generals 
and rear admirals (lower half) on the active-duty list who are 
authorized to be frocked to the grade of major general or rear 
admiral (upper half) may not exceed 30.
      The House bill contained no similar provision.
      The House recedes.
Distribution in grade of Marine Corps Reserve officers in an active 
        status in grades below brigadier general (sec. 504)
      The House bill contained a provision (sec. 513) that 
would correct a technical discrepancy in the existing grade 
table for the Marine Corps Reserve that could unnecessarily 
limit the overall numbers of Marine Corps Reserve officers in 
an active status under section 12005 of title 10, United States 
Code.
      The Senate amendment contained a similar provision (sec. 
415).
      The Senate recedes.
Authority for Federal recognition of National Guard commissioned 
        officers appointed from former Coast Guard personnel (sec. 505)
      The House bill contained a provision (sec. 588) that 
would make current and former officers and enlisted members of 
the U.S. Coast Guard, as well as graduates of the U.S. Coast 
Guard Academy, eligible for federal recognition after becoming 
commissioned officers of the National Guard.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Study regarding promotion eligibility of retired officers recalled to 
        active duty (sec. 506)
      The Senate amendment contained a provision (sec. 515) 
that would require the Secretary of Defense to carry out a 
study to determine whether it would be equitable for retired 
warrant officers on active duty, but not on the active-duty 
list by reason of section 582(2) of title 10, United States 
Code, to be eligible for consideration for promotion under 
section 573 of such title. The Secretary would be required to 
submit a report on the results of the study not later than 180 
days after the date of enactment of this Act.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment that would 
extend the scope of the study to include all retired officers.
Succession for office of Chief, National Guard Bureau (sec. 507)
      The House bill contained a provision (sec. 507) that 
would establish a chain of succession when there is a vacancy 
in the Office of the Chief of the National Guard Bureau or in 
the event that the Chief is unable to perform the duties of the 
office. In such cases, the more senior officer of either the 
Army National Guard or of the Air National Guard on duty with 
the National Guard Bureau would assume responsibility as the 
Acting Chief.
      The Senate amendment contained a similar provision (sec. 
903).
      The Senate recedes with a technical amendment.
Redesignation of Vice Chief of the National Guard Bureau as Director of 
        the Joint Staff of the National Guard Bureau (sec. 508)
      The House bill contained a provision (sec. 508) that 
would change the title of the Vice Chief of the National Guard 
Bureau to the Director of the Joint Staff of the National Guard 
Bureau.
      The Senate amendment contained a similar provision (sec. 
904).
      The House recedes with a technical amendment.

              Subtitle B--Reserve Component Policy Matters

Modification of stated purpose of the Reserve components (sec. 511)
      The House bill contained a provision (sec. 521) that 
would clarify the purpose of the Reserve components. By 
eliminating statutory reference to planned mobilizations, the 
provision would more accurately reflect the operational 
mission, responsibilities, and contributions of National Guard 
and Reservemembers and the manner in which Reserve forces will 
be employed in the future.
      The Senate amendment contained a similar provision (sec. 
901).
      The Senate recedes with a technical amendment.
Homeland defense activities conducted by the National Guard under 
        authority of title 32 (sec. 512)
      The House bill contained a provision (sec. 529) that 
would amend title 32, United States Code, to authorize the 
Secretary of Defense to provide funds to the governor of a 
State to employ National Guard units and personnel to conduct 
operational activities that the Secretary determines to be in 
the national interest. This provision would also establish a 
process by which the governor of a State may request funding 
from the Secretary for the operational activities of that 
State's National Guard.
      The Senate amendment contained a similar provision (sec. 
906).
      The Senate recedes with an amendment that would authorize 
the Secretary to provide funds to a governor of a State to 
employ National Guard units or members to conduct homeland 
defense activities. Homeland defense activities include those 
undertaken for the military protection of the territory or 
domestic population of the United States, or of infrastructure 
or other assets of the United States determined by the 
Secretary as being critical to national security, from a threat 
or aggression against the United States. National Guard 
personnel could perform homeland defense activities under this 
provision for up to 180 days, which could be extended for an 
additional 90 days to meet extraordinary circumstances.
Commission on the National Guard and Reserves (sec. 513)
      The Senate amendment contained a provision (sec. 902) 
that would establish a Commission on the National Guard and 
Reserves. The commission would study the roles and missions of 
the National Guard and Reserve and the compensation and other 
benefits that are provided to members of the Reserve 
components. Among the issues the commission would be required 
to assess are the following: (1) the current and future roles 
and missions of the Reserve components; (2) the capabilities of 
the Reserve components and the manner in which the Reserve 
components may be best used to support the military operations 
of the Armed Forces and the achievement of national security 
objectives, including homeland defense; (3) the current and 
future organization and structure of the National Guard and 
Reserve; (4) the organization and funding of training for the 
Reserve; and (5) options for improving compensation and 
benefits. The provision would also require the establishment of 
an independent review board in 2006, following the termination 
of the commission, to annually review the roles and missions of 
the Reserve components and the compensation and other benefits 
provided for members of the Reserve components.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require an 
annual review by the Secretary of Defense of the roles and 
missions of the Reserve components and the compensation and 
benefits provided for members of the Reserve components 
beginning in fiscal year 2006.
Repeal of exclusion of active duty for training from authority to order 
        Reserves to active duty (sec. 514)
      The House bill contained a provision (sec. 522) that 
would authorize units and members of the Reserve components to 
be involuntarily mobilized for the purpose of training. This 
would provide the Department of Defense with improved access to 
Reserve component personnel during war or national emergency 
for the purpose of individual or collective skill training 
required to meet deployment standards and timelines for 
emergent missions or contingencies. The provision would also 
require that the time spent in such training be counted against 
the mobilization timelines that are established in law.
      The Senate amendment contained a similar provision (sec. 
521).
      The House recedes with a technical amendment.
Army program for assignment of Active component advisers to units of 
        the Selected Reserve (sec. 515)
      The House bill contained a provision (sec. 530) that 
would reduce from 5,000 to 3,500 the minimum number of Army 
Active component advisers that are required to be assigned to 
support the training and readiness of Selected Reserve units of 
the Army. This provision would prohibit the Secretary of the 
Army from making any reductions in the numbers of Active 
component advisers until the Secretary reports, as required by 
March 31, 2005, to the Committees on Armed Services of the 
Senate and the House of Representatives on the support by the 
Active component of the Army for training and readiness of the 
Army National Guard and Army Reserve.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.
Authority to accept certain voluntary services (sec. 516)
      The House bill contained a provision (sec. 1078) that 
would authorize the secretaries concerned to accept voluntary 
services to support programs of the National Committee for 
EmployerSupport of the Guard and Reserve as authorized by the 
Secretary of Defense.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Authority to redesignate the Naval Reserve as the Navy Reserve (sec. 
        517)
      The Senate amendment contained a provision (sec. 905) 
that would authorize the Secretary of the Navy, with the 
approval of the President, to redesignate the Naval Reserve as 
the ``Navy Reserve'' effective 180 days after the date on which 
the Secretary submits recommended legislation.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Comptroller General assessment of integration of Active and Reserve 
        components of the Navy (sec. 518)
      The House bill contained a provision (sec. 528) that 
would require the Comptroller General to review the Navy's 
implementation plans for the integration of the service's 
Active and Reserve components. This provision would require the 
Comptroller General to submit a report on the results of that 
assessment to the Committees on Armed Services of the Senate 
and the House of Representatives by March 31, 2005.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that eliminates the 
provision that would prohibit appropriated funds being made 
available for the decommissioning of any Naval Reserve or 
Marine Corps Reserve aviation squadrons until the report 
required by this section is completed.
Limitation on number of STARBASE academies in a State (sec. 519)
      The House bill contained a provision (sec. 527) that 
would authorize the Secretary of Defense to support the 
establishment of more than two STARBASE academies in a State 
under criteria to be established by the Secretary.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment that would 
provide that waivers granted by the Secretary for the 
establishment and operation of additional STARBASE academies in 
a State should be based on the availability of appropriated 
funds for that purpose.
      The conferees believe that limiting the number of 
STARBASE academies eligible for Department of Defense financial 
support to two per State could lead to inequities, particularly 
in states with several military installations located in 
separate communities. The conferees urge the Secretary to 
developcriteria for waivers that will appropriately balance 
increased program costs associated with establishment and operation of 
additional STARBASE academies with anticipated measurable gains in 
realizing the mission of the program.
Recognition items for certain Reserve component personnel (sec. 520)
      The conferees agree to include a provision that would 
authorize the use of official funds by the Army National Guard, 
Air National Guard, and Army Reserve in order to recognize and 
retain Guardsmen and Reservists, family members, and other 
individuals who have served and supported members of the 
National Guard and Army Reserve. The provision would permit 
procurement of recognition items of nominal or modest value 
such as coins, medals, trophies, flags, posters, or other 
similar items that are valued at less than $50 per item. The 
authorization would be effective as of November 24, 2003, and 
would expire on December 31, 2005.

            Subtitle C--Reserve Component Personnel Matters

Status under disability retirement system for Reserve members released 
        from active duty due to inability to perform within 30 days of 
        call to active duty (sec. 521)
      The House bill contained a provision (sec. 523) that 
would clarify that mobilized Reserve members who, within 30 
days of being called to active duty, are unable to serve the 
full period for which they were mobilized due to pre-existing 
medical conditions, which were not aggravated while on active 
duty, may be separated. Such members would be considered as 
serving under an order to active duty for a period of 30 days 
or less.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.
Requirement for retention of Reserves on active duty to qualify for 
        retired pay not applicable to nonregular service retirement 
        system (sec. 522)
      The House bill contained a provision (sec. 512) that 
would clarify that section 12686 of title 10, United States 
Code, does not require that reservists serving on active duty 
with over 18 years of reserve service be retained on active 
duty for the purpose of qualifying the member for reserve 
retirement.
      The Senate amendment contained a similar provision (sec. 
522).
      The Senate recedes with a technical amendment.
Federal civil service military leave for Reserve and National Guard 
        civilian technicians (sec. 523)
      The House bill contained a provision (sec. 524) that 
would eliminate the restriction on the use of military leave 
specified in section 6323 of title 5, United States Code, 
during a war or national emergency declared by the President, 
for Reserve and National Guard civilian technicians who are 
federal employees.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Expanded educational assistance authority for officers commissioned 
        through ROTC program at military junior colleges (sec. 524)
      The House bill contained a provision (sec. 525(a), (b), 
and (d)), that would allow commissioned officers who graduate 
from military junior colleges to receive additional financial 
assistance to complete their baccalaureate degree requirements. 
Individuals who participate in this program would be attached 
to a Senior Reserve Officers' Training Corps unit to ensure 
that they maintain their military training, bearing, and 
education as they complete their post-secondary education.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.
Repeal of sunset provision for financial assistance program for 
        students not eligible for advanced training (sec. 525)
      The House bill contained a provision (sec. 525(c)) that 
would repeal section 2103a(d) of title 10, United States Code. 
This section provided that after December 31, 2006 contracts by 
members of the Senior Reserve Officers' Training Corps program, 
under the authority of section 2103a, could no longer be 
entered into force.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Effect of appointment or commission as officer on eligibility for 
        selected Reserve education loan repayment program for enlisted 
        members (sec. 526)
      The House bill contained a provision (sec. 526) that 
would authorize the Secretary of Defense to continue to repay 
educational loans for enlisted members in a Reserve 
componentafter they are commissioned as officers, if the members 
continue to serve the period specified in the original loan repayment 
agreement.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.
Educational assistance for certain Reserve component members who 
        perform active service (sec. 527)
      The conferees agree to include a provision that would 
authorize a new educational assistance benefit for members of 
the reserve components who have been ordered to active service 
in support of a contingency operation or in response to a war 
or national emergency. The provision would be effective on or 
after September 11, 2001, and would authorize: (1) payment of 
40 percent of the amount of basic educational assistance 
provided under section 3015 of title 38 for a member whose 
entitlement is based on completion of an obligated period of 
active duty of three years for reservists who perform active 
service for a period of 90 days to one year; (2) payment of 60 
percent of the amount of basic educational assistance in the 
case of a member who performed active service for one 
continuous year but less than two continuous years; and (3) 
payment of 80 percent of the amount of basic educational 
assistance for those members who serve for two continuous years 
or more. The maximum number of months of educational assistance 
that would be permitted under this provision would be 36, or 
the equivalent thereof in part-time educational assistance. 
Eligible reservists would remain entitled to educational 
assistance under this provision while serving in the Selected 
Reserve, in the case of members who were ordered to active duty 
while serving in the Selected Reserve, or in the Ready Reserve, 
in the case of a member who was ordered to active duty while 
serving in the Ready Reserve other than the Selected Reserve.
Sense of Congress on guidance concerning treatment of employer-provided 
        compensation and other benefits voluntarily provided to 
        employees who are activated reservists (sec. 528)
      The Senate amendment contained a provision (sec. 1075) 
that would express the sense of the Senate that the Internal 
Revenue Service should provide guidance consistent with the 
goal of promoting and ensuring the validity of differential pay 
arrangements, benefits payments, and contributions to 
retirement savings plans made by employers of reservists who 
have been called to active duty.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
      The conferees note that employers of reservists called up 
for active duty are required under the Uniformed Services 
Employment and Reemployment Rights Act of 1994 (USERRA) to 
treat their reservist-employees as if they are on a leave of 
absence or furlough and are not required to pay their salaries. 
Many patriotic employers, however, have paid their reservist-
employees who have been mobilized the difference between their 
military pay and their civilian salaries, and have allowed 
deductions from these differential payments for contributions 
to employer-provided retirement savings plans. The conferees 
believe that insufficient guidance exists for the tax status of 
these payments for both reservist-employees and employers under 
existing Internal Revenue Service regulations and that 
additional guidance should be provided.

    Subtitle D--Joint Officer Management and Professional Military 
                               Education

Strategic plan to link joint officer development to overall missions 
        and goals of Department of Defense (sec. 531)
      The House bill contained a provision (sec. 531) that 
would require the Secretary of Defense, with the advice of the 
Chairman of the Joint Chiefs of Staff, to develop a strategic 
plan for joint officer management and joint professional 
military education. This strategic plan would link future 
requirements for Active and Reserve military personnel, who are 
trained and educated in joint matters, to the resources 
required to develop those persons in terms of manpower, formal 
education, practical experience, and other requirements. 
Additionally, the strategic plan would identify the methods the 
Secretary would use to fulfill those requirements.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that, among other 
data elements, would call for assessment of emerging issues 
related to joint officer management, including problems 
stemming from linkage of qualification as a joint specialty 
officer to eligibility for promotion, expected rates of 
promotion, and prescribed tour lengths.
Improvement to professional military education in the Department of 
        Defense (sec. 532)
      The House bill contained a provision (sec. 541) that 
would establish a new chapter 107 in title 10, United States 
Code, consisting of eight new sections that would consolidate 
sections of law related to joint professional military 
education. The provision would define the term ``joint 
professional militaryeducation,'' as well as ``intermediate'' 
and ``senior level'' schools. It would require the secretaries of the 
military departments to use a written examination as a portion of the 
evaluation criteria in selecting officers for full-time attendance at 
intermediate level service schools and would require phasing of joint 
professional military education and student to faculty ratios. The 
provision would also require that the length of the principal course of 
instruction at the Joint Forces Staff College could not be less than 10 
weeks.
      The Senate amendment contained a provision (sec. 505) 
that would repeal the minimum period requirement for phase II 
joint professional military education in section 663 of title 
10, United States Code.
      The Senate recedes with an amendment that would reduce 
and consolidate the number of subjects that joint professional 
military education must include. The amendment would specify 
that the Chairman of the Joint Chiefs of Staff will advise and 
assist the Secretary of Defense in designating and certifying 
certain courses of instruction and would delete the requirement 
for a written examination as a portion of the evaluation 
criteria in selecting officers for full-time attendance at 
intermediate level service schools.
      Although the conferees did not establish a statutory 
minimum length for the duration of the principal course of 
instruction offered at the primary resident campus of each 
intermediate level service school and each senior level service 
school, the conferees believe that such courses should consist 
of not less than 10 months of resident instruction, except in 
times of war or national emergency. The conferees will continue 
to review this matter with each of the military services as 
changes and modifications to such courses are proposed.
Joint requirements for promotion to flag or general officer grade (sec. 
        533)
      The House bill contained a provision (sec. 532) that 
would extend from September 30, 2007 to September 30, 2008, the 
date after which an officer must be selected for the joint 
specialty before promotion to the grade of brigadier general or 
rear admiral (lower half). The provision would also eliminate 
the requirement that an officer serve in a joint assignment at 
least 180 days prior to the convening of a promotion board for 
selection to the grade of brigadier general or rear admiral 
(lower half).
      The Senate amendment contained a provision (sec. 501) 
that would also eliminate the requirement for 180 days of 
service in a joint duty assignment before an officer may be 
considered for promotion to flag or general officer rank.
      The Senate recedes.
Clarification of tours of duty qualifying as a joint duty assignment 
        (sec. 534)
      The House bill contained a provision (sec. 533) that 
would modify the definition of the term ``tour of duty'' in 
section 668(c) of title 10, United States Code, to allow 
officers to continue accumulating joint credit if they serve 
consecutive joint duty assignments, even if those assignments 
are not within the same organization.
      The Senate amendment contained a similar provision (sec. 
506).
      The Senate recedes with an amendment that would insert 
the term ``joint duty assignment list'' in section 668 of title 
10, United States Code.
Two-year extension of temporary standard for promotion policy 
        objectives for joint officers (sec. 535)
      The Senate amendment contained a provision (sec. 503) 
that would require the military departments to ensure that an 
adequate number of officers are eligible for promotion to 
brigadier general and rear admiral (lower half) to meet joint 
qualification requirements under section 619a of title 10, 
United States Code. The provision would also make permanent the 
temporary authority regarding promotion comparison standards 
for joint specialty officers under section 662 of title 10, 
United States Code.
      The House bill contained no similar provision.
      The House recedes with an amendment that would extend the 
temporary authority regarding promotion comparison standards 
for officers with the joint specialty under section 662 of 
title 10, United States Code, until December 27, 2006.
Two-year extension of authority to waive requirement that Reserve 
        Chiefs and National Guard Directors have significant joint duty 
        experience (sec. 536)
      The House bill contained a provision (sec. 509) that 
would extend for two years, until December 31, 2006, the 
authority of the Secretary of Defense to waive the requirement 
that the chiefs of the Reserves and the directors of the Army 
and Air National Guard must have significant joint duty 
experience to be eligible for appointment. The provision would 
also require that the Secretary develop a plan to ensure that 
officers selected after December 31, 2006, to be the chiefs of 
the Reserves and the directors of the Army and Air National 
Guard, have significant joint duty experience in order to 
ensure a concerted effort to develop a system to eliminate the 
need for this waiver.
      The Senate amendment contained a provision (sec. 513) 
that would extend the Secretary's waiver authority for one 
year.
      The Senate recedes.

                 Subtitle E--Military Service Academies

Revision to conditions on service of officers as service academy 
        superintendents (sec. 541)
      The House bill contained a provision (sec. 557) that 
would repeal the requirement that the superintendents of the 
military service academies retire upon completion of their 
assignments. The provision would also require that an officer 
serve at least a three-year tour of duty as superintendent, and 
that if the officer is re-assigned before that period elapses, 
the secretary of the military department concerned must notify 
the Committees on Armed Services of the Senate and the House of 
Representatives of the reasons for the re-assignment.
      The Senate amendment contained a provision (sec. 535) 
that would repeal the requirement under sections 8921 and 9333a 
of title 10, U.S. Code, that the Superintendent of the U.S. Air 
Force Academy retire upon termination of his or her assignment.
      The Senate recedes with an amendment that would retain 
the requirement that the superintendents retire upon completion 
of their tours of duty. It would, however, authorize the 
Secretary of Defense to waive this requirement for good cause, 
and would require written notification to Congress of the 
President's intent to nominate a superintendent of a service 
academy for re-assignment.
Academic qualifications of the Dean of the Faculty of United States Air 
        Force Academy (sec. 542)
      The House bill contained a provision (sec. 559) that 
would require that a person selected to be the Dean of the 
Faculty at the U.S. Air Force Academy, who is not an officer on 
active duty, must be either a retired or former officer of the 
Armed Forces. Furthermore, the provision would prohibit the 
appointment or assignment of a person to be the Dean unless 
that person holds the highest academic degree in their academic 
field.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would delete 
the requirement that the Dean of the Faculty at the U.S. Air 
Force Academy must be either a retired or former officer of the 
Armed Forces.
Board of Visitors of United States Air Force Academy (sec. 543)
      The House bill contained a provision (sec. 560A) that 
would modify section 9355 of title 10, United States Code, to 
change the composition of the Board of Visitors of the U.S. Air 
Force Academy. The provision would also prescribe: (1) 
procedures for when a member of the Board dies, resigns, or is 
absent from meetings; (2) four meetings of the Board and 
reports to Congress each year; and (3) candid and complete 
disclosure by the Secretary of the Air Force and the 
Superintendent of the Air Force Academy of all institutional 
problems.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would retain 
the current criteria in section 9355 of title 10, United States 
Code, for designation of U.S. Senators to serve on the Board of 
Visitors. The amendment would also modify the conditions for 
termination of board members who are members of Congress, 
assigning discretion to designating authorities to take 
appropriate action if Board of Visitors meetings are unattended 
without good cause. The amendment would further require 
semiannual reports from the Board of Visitors to Congress.
Appropriated funds for service academy athletic and recreational 
        extracurricular programs to be treated in same manner as for 
        military morale, welfare, and recreation programs (sec. 544)
      The Senate amendment contained a provision (sec. 1005) 
that would authorize the service academies to treat funds 
appropriated for morale, welfare, and recreation athletics and 
extracurricular programs as non-appropriated funds in order to 
achieve uniform funding and management of those funds.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Codification of prohibition on imposition of certain charges and fees 
        at the service academies (sec. 545)
      The House bill contained a provision (sec. 558) that 
would codify section 553 of the National Defense Authorization 
Act for Fiscal Year 1995 (Public Law 103-337). This provision 
would prohibit the imposition of charges or fees for tuition, 
room, or board for attendance by cadets and midshipmen at the 
service academies.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.

            Subtitle F--Other Education and Training Matters

College First delayed enlistment program (sec. 551)
      The House bill contained a provision (sec. 551) that 
would permanently authorize the Army College First Pilot 
Program, andextend the authority to implement the program to 
the other service secretaries.
      The Senate amendment contained a provision (sec. 531) 
that would extend for one year the duration of the Army's 
College First Pilot Program.
      The Senate recedes with a technical amendment.
Senior Reserve Officer Training Corps and recruiter access at 
        institutions of higher education (sec. 552)
      The House bill contained a provision (sec. 596) that 
would: (1) require that military recruiters be given access to 
campuses and students at institutions of higher education that 
is at least equal in quality and scope to the access provided 
to any other employer; (2) require the Secretary of Defense to 
obtain an annual verification from colleges and universities 
which already support the Senior Reserve Officers' Training 
Corps (ROTC) program that they will continue to do so in the 
upcoming academic year; (3) specify that federal funding that 
is provided to an institution of higher education, or to an 
individual, to be available solely for student financial 
assistance is exempt from the stricture of section 983 of title 
10, United States Code; and (4) add additional defense-related 
funding sources to include: the Department of Homeland 
Security, the Central Intelligence Agency, and the National 
Nuclear Security Administration of the Department of Energy, 
and would restore the funds of the Department of Transportation 
to the list of covered funds that potentially could be 
terminated if an institution is determined to prevent recruiter 
access or maintains anti-ROTC policies.
      The Senate amendment contained two provisions (sec. 532 
and 533) that would require colleges and universities to give 
equal treatment to military recruiters, and specify that 
federal funding for student financial assistance may be used 
for the purpose for which the funding is provided.
      The Senate recedes with an amendment that would delete 
the requirement for the Secretary to obtain an annual 
verification from colleges and universities that they would 
continue to support Senior ROTC.
Tuition assistance for officers (sec. 553)
      The House bill contained a provision (sec. 514) that 
would authorize the secretaries of the military departments to 
waive for Reserve component officers the two-year Active-Duty 
service obligation required as a condition for receipt of 
tuition assistance while on active duty. The provision would 
also allow an increase in tuition assistance authorized for 
Army officers in the Selected Reserve.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Increased maximum period for leave of absence for pursuit of a program 
        of education in a health care profession (sec. 554)
      The House bill contained a provision (sec. 554) that 
extends from two to three years the educational leave of 
absence authorized for members of the Armed Forces in section 
708 of title 10, United States Code.
      The Senate amendment contained a provision (sec. 651) 
that would extend from two to three years the period of time 
that a military member may take educational leave of absence 
for a health profession education program.
      The House recedes.
Eligibility of cadets and midshipmen for medical and dental care and 
        disability benefits (sec. 555)
      The House bill contained a provision (sec. 555) that 
would provide the capability to effectively respond to injuries 
and illness sustained during accession training by cadets and 
midshipmen. The provision would authorize service academy 
cadets and midshipmen to be eligible for disability evaluation 
and retirement under chapter 61 of title 10, United States 
Code, and cadets and midshipmen participating in the Senior 
Reserve Officers' Training Corps (ROTC) to be eligible for 
medical and dental care for injuries and illness sustained in 
the line of duty and not due to gross negligence or misconduct.
      The Senate amendment contained a similar provision (sec. 
717).
      The House recedes with a technical amendment.
      The conferees were greatly assisted by the Department of 
Defense's report on health and disability benefits for pre-
accession training and education programs required by section 
546 of the National Defense Authorization Act for Fiscal Year 
2002 (Public Law 107-107). This report proved essential in 
gaining an understanding of the origins of current law and the 
steps that are needed to be taken to ensure equitable treatment 
of cadets and midshipmen and their families.
      The conferees urge the Department to continue to identify 
ways to improve the treatment of Senior ROTC cadets and 
midshipmen who have experienced illness or injury and whose 
continued participation in ROTC is jeopardized as a result. The 
conferees, for example, are aware that under current service 
regulations cadets in Army ROTC and midshipmen in Naval ROTC 
who become ill or who are injured through no fault of their own 
are involuntarily being placed on ``leave of absence'' and 
denied scholarship payments and monthly stipends, even when it 
is apparent that these cadets and midshipmen will recover fully 
and they continue to attend classes and participate fully in 
ROTC activities. The conferees urge the Department and the 
services to act expeditiously, but no later than April 1, 2005, 
to reviseDepartmental regulations to achieve uniformity among 
the services in responding to medical conditions to avoid unnecessary 
hardships on ROTC cadets, midshipmen, and their families.
Transfer of authority to confer degrees upon graduates of the Community 
        College of the Air Force (sec. 556)
      The House bill contained a provision (sec. 552) that 
would authorize the Commander of the Air University to confer 
associate level academic degrees on graduates of the Community 
College of the Air Force. This change would align the Community 
College with all other Air University programs by ensuring that 
only the Commander of the Air University is responsible for 
conferring degrees.
      The Senate amendment contained a similar provision (sec. 
534).
      The House recedes with a technical amendment.
Change in titles of leadership positions at the Naval Postgraduate 
        School (sec. 557)
      The House bill contained a provision (sec. 553) that 
would change the title of the Superintendent of the Naval 
Postgraduate School from Superintendent to President. This 
provision would also establish a new civilian position of 
Provost and Academic Dean, and revise the procedures to fill 
this position.
      The Senate amendment contained a similar provision (sec. 
913).
      The House recedes with a technical amendment.

   Subtitle G--Assistance to Local Educational Agencies for Defense 
                         Dependents' Education

Continuation of impact aid assistance on behalf of dependents of 
        certain members despite change in status of member (sec. 558)
      The House bill contained a provision (sec. 590) that 
would temporarily adjust the process for computing the amount 
of funding provided by the Department of Education to certain 
local educational agencies heavily impacted by dependents of 
military personnel. The adjustment, limited to school year 
2004-2005, would require that certain children continue to be 
counted as a child enrolled in school when computing the 
average daily attendance. Such children include those who 
attend the school but no longer live on a military base because 
both parents are deployed, or are children who temporarily 
reside in military base housing following the death of a 
military parent on active duty.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.
Assistance to local educational agencies that benefit dependents of 
        members of the Armed Forces and Department of Defense civilian 
        employees (sec. 559)
      The House bill contained a provision (sec. 595) that 
would provide $50.0 million in Operation and Maintenance, 
Defense-wide activities, for assistance to local educational 
agencies that benefit dependents of members of the Armed Forces 
and Department of Defense civilian employees.
      The Senate amendment contained a similar provision (sec. 
351) that would authorize $30.0 million for assistance to local 
educational agencies.
      The House recedes.
Impact aid for children with severe disabilities (sec. 560)
      The Senate amendment contained a provision (sec. 352) 
that would authorize $5.0 million in Operation and Maintenance, 
Defense-wide, for impact aid payments for children with 
disabilities under section 8003(d) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 7703(d)), using the 
formula set forth in section 363 of the Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001 (Public 
Law 106-398), for continuation of the Department of Defense's 
assistance program to local educational agencies that benefit 
dependents with severe disabilities.
      The House bill contained no similar provision.
      The House recedes.

     Subtitle H--Medals and Decorations and Special Promotions and 
                              Appointments

Award of medal of honor to individual interred in the Tomb of the 
        Unknowns as representative of casualties of a war (sec. 561)
      The Senate amendment contained a provision (sec. 541) 
that would clarify that the posthumous award of a medal of 
honor to the deceased member of the Armed Forces who is 
interred in the Tomb of the Unknowns at Arlington National 
Cemetery is awarded to that member as a representative of the 
unknown members of the Armed Forces who died in such war or 
other armed conflict, and not to the individual personally.
      The House bill contained no similar provision.
      The House recedes.
Plan for revised criteria and eligibility requirements for award of 
        combat infantryman badge and combat medical badge for service 
        in Korea after July 28, 1953 (sec. 562)
      The House bill contained a provision (sec. 565) that 
would revise the criteria and eligibility requirements for 
award of the combat infantry badge and combat medical badge to 
Army personnel for service in the Republic of Korea after July 
28, 1953.
      The Senate amendment contained a provision (sec. 543) 
that would require the Secretary of the Army to submit a plan 
not later than 90 days after the date of enactment of this Act 
for the revision of the criteria and eligibility requirements 
for these badges for service in Korea.
      The House recedes.
      The conferees note that the mutual purpose of the House 
and Senate provisions is to ensure modification of the 
eligibility requirements, which over time have become 
inequitable for soldiers who are serving or have served in 
Korea. The Commander, U.S. Forces Korea, has expressed his 
support for this initiative. The conferees expect the Secretary 
to promptly and equitably revise the criteria for the award of 
the combat infantryman and combat medical badges, and act upon 
applications from veterans of Korea service who qualify for 
these awards.
Authority to appoint Brigadier General Charles E. Yeager, United States 
        Air Force (retired), to the grade of major general on the 
        retired list (sec. 563)
      The House bill contained a provision (sec. 563) that 
would authorize the President, by and with the advice and 
consent of the Senate, to appoint Brigadier General Charles E. 
Yeager U.S. Air Force (retired), to the grade of major general 
on the retired list of the U.S. Air Force.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Posthumous commission of William Mitchell in the grade of major general 
        in the Army (sec. 564)
      The House bill contained a provision (sec. 564) that 
would authorize the President, by and with the advice and 
consent of the Senate, to issue a posthumous commission in the 
grade of major general in the Army to William Mitchell, 
formerly a colonel in the U.S. Army. A commission issued under 
this authority would become effective as of the date of the 
death of William Mitchell on February 19, 1936.
      The Senate amendment contained no similar provision.
      The Senate recedes.

                      Subtitle I--Military Voting

Federal write-in ballots for absentee military voters located in the 
        United States (sec. 566)
      The Senate amendment contained a provision (sec. 572) 
that would amend section 1973ff of title 42, United States 
Code, to authorize military voters and their dependents, who 
are stationed in the United States but absent from their home 
states, to use federal write-in absentee ballots. Operational 
requirements and the mobility of military personnel may prevent 
them from receiving state-provided absentee ballots in the mail 
in time for an election. Allowing absentee military voters and 
their dependents to use the federal write-in ballots, even 
while stationed in the United States, would serve to remedy 
these problems.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Repeal of requirement to conduct electronic voting demonstration 
        project for the federal election to be held in November 2004 
        (sec. 567)
      The House bill contained a provision (sec. 592) that 
would repeal the requirement in section 1604 of the National 
Defense Authorization Act for Fiscal Year 2002 (Public Law 107-
107) for the Secretary of Defense to conduct a demonstration 
project to permit absentee uniformed service voters to cast 
their ballots through an electronic voting system.
      The Senate amendment contained a provision (sec. 1065) 
that would authorize delay in carrying out an electronic voting 
demonstration project until November 2006.
      The House recedes with an amendment that would delay the 
electronic voting demonstration project until the first 
regularly scheduled general election for federal office that 
occurs after the Election Assistance Commission notifies the 
Secretary that the commission has established electronic 
absentee voting guidelines and certifies that the commission 
will assist the Secretary in carrying out the project.
      The conferees recognize the magnitude of the technical 
challenge associated with ensuring the security of electronic 
voting using the Internet. The Department of Defense's Secure 
Electronic Registration and Voting Experiment (SERVE) was an 
important prototype for electronic voting that should not be 
abandoned. The conferees encourage the Secretary to provide 
funding to the Election Assistance Commission and the National 
Institute of Standards and Technology to advance electronic 
absentee voting by U.S. voters located overseas and Uniformed 
Services voters.
Reports on operation of Federal Voting Assistance Program and military 
        postal system (sec. 568)
      The Senate amendment contained a provision (sec. 1026) 
that would require the Secretary of Defense to submit reports 
to Congress on: (1) the actions that the Secretary has taken to 
ensure that the Federal Voting Assistance Program functions 
effectively to support absentee voting; (2) the actions that 
the Secretary has taken to ensure that the military postal 
system functions effectively to support the morale of military 
members and their ability to vote by absentee ballot; and (3) 
the actions taken to implement the recommendations of the 
Military Postal Service Agency Task Force of August 28, 2000.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.

                  Subtitle J--Military Justice Matters

Review on how sexual offenses are covered by Uniform Code of Military 
        Justice (sec. 571)
      The House bill contained a provision (sec. 571) that 
would require the Secretary of Defense to review the Uniform 
Code of Military Justice and the Manual for Courts-Martial to 
determine what changes are required to improve the ability of 
the military justice system relating to sexual assault, and to 
conform the Code and the Manual more closely to other federal 
laws and regulations that address such issues. The Secretary is 
to report on the review to the Committees on Armed Services of 
the Senate and the House of Representatives by March 1, 2005. 
The report is to include the Secretary's recommendations for 
revisions to the Code.
      The Senate amendment contained no similar provision.
      The Senate recedes.
      The conferees understand that the Department of Defense 
is already undertaking such a review. The conferees expect that 
the Department's legislative proposal for fiscal year 2006 will 
include any suggestions for revisions in the Code provisions 
dealing with sexual assault that are determined to be 
desirable.
Waiver of recoupment of time lost for confinement in connection with a 
        trial (sec. 572)
      The Senate amendment contained a provision (sec. 552) 
that would amend section 972 of title 10, United States Code, 
to require the Secretary concerned to waive time lost when a 
member is confined by military or civilian authorities for more 
than one day in connection with a trial, if the charge is 
thereafter dismissed, the trial results in an acquittal, a 
conviction is thereafter set aside (other than for clemency), 
or a judgment of acquittal or dismissal is entered upon a 
reversal of the conviction of on appeal.
      The House bill contained a similar provision.
      The House recedes.
Processing of forensic evidence collection kits and acquisition of 
        sufficient stocks of such kits (sec. 573)
      The House bill contained a provision (sec. 306) that 
would require the Secretary of Defense to take steps to 
eliminate the current backlog in the processing of forensic 
evidence collection kits, to shorten the time period between 
the use of such kits and their processing, and to ensure that 
there is an adequate supply of rape kits for all domestic and 
overseas U.S. military installations.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary to ensure that the United States Army Criminal 
Investigation Laboratory has the personnel and resources to 
effectively process forensic evidence used by the Department of 
Defense within 60 days of its receipt, and that military 
personnel are properly trained in the use of forensic evidence 
collection kits and in procedures to ensure protection of the 
chain of custody of the kits once used.
Authorities of the Judge Advocates General (sec. 574)
      The Senate amendment contained a provision (sec. 915) 
that would amend the title 10, United States Code, provisions 
relating to the Judge Advocates General (TJAG) of the services 
and the General Counsels (GC) of the military departments to 
make the TJAGs the legal advisers of the service secretaries, 
the service chiefs and their staffs, and the offices and 
agencies of the military departments, provide for TJAG 
direction and supervision of judge advocates and of civilian 
attorneys outside the offices of the service general counsels, 
provide for the responsibilities of the TJAGs under the Uniform 
Code of Military Justice (UCMJ), provide for other duties as 
may be directed by the service secretaries, and provide that 
the TJAGs shall be appointed in the grade of lieutenant general 
or vice admiral, as appropriate.
      The House bill contained no similar provision.
      The House recedes with an amendment that would prohibit 
any officer or employee of the Department of Defense from 
interfering with the ability of the TJAGs to provide 
independent legal advice to their service secretaries and 
service chiefs, or of judge advocates assigned, attached, or 
performing duty with military units to provide such advice to 
commanders. The provision would also require the Secretary of 
Defense to appoint an independent panel to conduct a study of 
the relationships between the legal elements of each service 
and transmit the panel's recommendations as to statutory, 
regulatory, and policy changes which it believes to be 
desirable, together with the Secretary's comments, to 
theCommittees on Armed Services by May 1, 2005. The conferees expect 
that this panel will be truly independent, expert, and disinterested. 
They will examine the panel's findings and recommendations with care in 
the fiscal year 2006 authorization process.
      The conferees note that this is the second time in 12 
years that attempts to consolidate legal services in the 
Department of Defense have led to congressional action. In 
1992, the Deputy Secretary of Defense issued a memorandum that 
would have moved substantially in the direction of 
centralization under the General Counsel of the Department of 
Defense. In response, the Senate version of the National 
Defense Authorization Act for Fiscal Year 1993 contained a 
provision directing that the memorandum be rescinded. After the 
memorandum was rescinded, the provision was dropped in 
conference.
      In May 2003, the Secretary of the Air Force issued an 
order subordinating the Judge Advocate General to the General 
Counsel of the Department of the Air Force as her military 
deputy. The order also stated that the General Counsel had 
``full legal authority to . . . become involved in . . . any 
particular case or matter within the Department.'' Thereafter 
the General Counsel issued a draft operating instruction in 
which she asserted the right to exercise legal oversight and 
review over virtually every legal issue arising in the 
Department of the Air Force, including the field of military 
justice which is statutorily reserved to the TJAGs. The Air 
Force situation, while the most aggravated, is not unique.
      Consistent with the legislative provision included in the 
conference report, the conferees direct the Secretary of the 
Air Force to rescind his order of May 15, 2003, ``Functions and 
Duties of the General Counsel and the Judge Advocate General.'' 
The conferees further direct the General Counsel of the 
Department of the Air Force to rescind all internal operating 
instructions and memoranda issued in reliance on the 
Secretary's May 15, 2003, order.

             Subtitle K--Sexual Assault in the Armed Forces

Examination of sexual assault in the Armed Forces by the defense task 
        force established to examine sexual harassment and violence at 
        the military service academies (sec. 576)
      The House bill contained a provision (sec. 593) that 
would require the Secretary of Defense to expand the mission of 
the Task Force on Sexual Harassment and Violence at the 
Military Service Academies that was established in the National 
Defense Authorization Act for Fiscal year 2004 (Public Law 108-
136). Upon completion of its current work, the task force would 
be renamed the Defense Task Force on Sexual Assault in the 
Military Services and would be extended for at least l8 months. 
It would examine matters relating to sexual assault in the 
Armed Forces and would be required to report its findings and 
recommendations to the Secretary of Defense within 12 months of 
its initial meeting. The Secretary of Defense would be required 
to provide the report, together with an evaluation of it, to 
the Committees on Armed Services of the Senate and the House of 
Representatives, along with an assessment of the effectiveness 
of the corrective actions being taken by the Department of 
Defense and the military services as a result of various 
investigations and reviews into matters involving sexual 
assault.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment to expand the scope 
of the task force report to include: a report on the use of 
data relating to sexual assault by senior military and civilian 
leaders; development of measures of effectiveness for 
responding to victim needs by sexual assault programs; progress 
in developing means to investigate and prosecute assailants who 
are foreign nationals; the adequacy of Department resources 
supporting sexual assault prevention and victim advocacy 
programs, particularly for deployed units and personnel; 
training of military and civilian personnel responsible for 
implementation of sexual assault polices; and programs and 
policies, including those related to confidentiality, designed 
to encourage victims to seek services and report offenses.
      The Senate amendment also would authorize the Secretary 
to change the composition of the Defense Task Force on Sexual 
Assault in the Military Services as appropriate, but remaining 
consistent with the qualifications required by section 526(f) 
of Public Law 108-136, and not before the task force 
established to examine sexual harassment and violence at the 
service military academies has completed its statutorily 
mandated functions.
      The conferees intend to closely monitor the development 
and implementation of uniform policies and programs on sexual 
assault required elsewhere in this Act. Given the urgency of 
the need for effective action to prevent and resolve sexual 
assault offenses against military members, the conferees expect 
that the task force, re-designated as the Task Force on Sexual 
Assault in the Military Services, will provide an independent 
assessment of the effectiveness of policies and programs 
developed by the Department, as well as the success of the 
military services at all levels in achieving their 
implementation.
Department of Defense policy and procedures on prevention and response 
        to sexual assaults involving members of the Armed Forces (sec. 
        577)
      The House bill contained a provision (sec. 598) that 
would require the Department of Defense to promulgate a uniform 
Department of Defense policy for the prevention of and response 
to sexual assaults involving members of the Armed Forces, and 
would require service secretaries to prescribe regulations on 
policies and procedures to prevent and respond to sexual 
assaults involving members of the Armed Forces. The provision 
would also require the secretaries of the military departments 
to prescribe programs throughout each service designated for 
victim advocacy and intervention, both at home and in deployed 
locations, and provide an annual assessment of the 
implementation of sexual assault prevention policies and 
procedures during the preceeding year. Additionally, the 
provision would require the Secretary to develop a definition 
of sexual assault that is uniform for all the Armed Forces. The 
provision would require an annual report to Congress by the 
Secretary of Defense on the number of sexual assaults, rapes, 
and other sexual offenses involving military personnel; a 
synopsis of disciplinary action taken in substantiated cases; 
the policies and programs implemented by the Secretary to 
respond to sexual assault and violence against military 
members; and a plan for future actions to be taken.
      The Senate amendment contained a similar provision (sec. 
553).
      The Senate recedes with an amendment that would clarify 
reporting requirements by the Secretary and service 
secretaries, and would require a definition of sexual assault 
that is uniform for all the Armed Forces.

           Subtitle L--Management and Administrative Matters

Three-year extension of limitation on reductions of personnel of 
        agencies responsible for review and correction of military 
        records (sec. 581)
      The House bill contained a provision (sec. 581) that 
would extend through September 30, 2008 the prohibition 
precluding the secretaries of the military departments from 
reducing the number of military and civilian personnel assigned 
to duty within the boards for correction of military records 
until 90 days after the secretary of the military department 
concerned submits a report to Congress that describes the 
proposed reduction, provides the rationale for the reduction, 
and specifies the number of personnel that will be assigned to 
the board after the reduction is complete.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Staffing for Defense Prisoner of War/Missing Personnel Office (DPMO) 
        (sec. 582)
      The House bill contained a provision (sec. 582) that 
would establish specific, permanent minimum levels of military 
and civilian personnel assigned to the Defense Prisoner of War/
Missing Personnel Office (DPMO). The provision would require 
that the number of permanent positions and full-time Department 
of Defense personnel permanently assigned or detailed to the 
DPMO would not be less than 46 military members and 69 civilian 
employees of the Department.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would modify 
section 1501(a)(5) of title 10, United States Code, to provide 
that the number of military and civilian personnel, whether 
temporary or permanent, who are assigned or detailed to the 
DPMO may not be less than the number requested in the 
President's budget for fiscal year 2003. The conferees note 
that the budget request for fiscal year 2003 provided for 46 
military personnel and 69 civilian personnel and included a 
budget request for $16.0 million.
      The Senate amendment would also require a study by the 
Government Accountability Office in order to provide a 
comprehensive examination of trends in staffing and funding 
levels of the DPMO compared to mission requirements and the 
Comptroller General's assessment of the adequacy of current 
manning and funding levels of the DPMO in light of current 
mission requirements.
Permanent ID cards for retiree dependents age 75 and older (sec. 583)
      The House bill contained a provision (sec. 583) that 
would require the service secretaries to issue permanent 
identification cards to dependents of military retirees and 
survivors of military retirees eligible for benefits for 
periods after the dependent or survivor attains age 75.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would establish 
the age for issuance of permanent military identification cards 
to dependents and survivors of military retirees at 75 years of 
age.
Authority to provide civilian clothing to members traveling in 
        connection with medical evacuation (sec. 584)
      The House bill contained a provision (sec. 584) that 
would authorize the secretaries of the military departments to 
furnish members, who have been medically evacuated, civilian 
clothing at a cost not to exceed $250 or to reimburse the 
member for thepurchase of civilian clothing in an amount not to 
exceed $250.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary of Defense to provide civilian clothing to 
members traveling in connection with medical evacuation. This 
authority is a continuation of the authority provided in 
section 1319 of the Emergency Wartime Supplemental 
Appropriations Act, 2003 (Public Law 108-11) and later in 
section 1103 of the Emergency Supplemental Appropriations Act 
for Defense and for the Reconstruction of Iraq and Afghanistan, 
2004 (Public Law 108-106).
Authority to accept donation of frequent traveler miles, credits, and 
        tickets to facilitate rest and recuperation travel of deployed 
        members of the Armed Forces and their families (sec. 585)
      The House bill contained a provision (sec. 585) that 
would authorize the Secretary of Defense to accept the donation 
of frequent traveler miles, credits, and tickets for the 
purpose of facilitating the travel of members of the Armed 
Forces who are deployed away from their permanent duty station 
and are granted leave, to include rest and recuperative leave, 
emergency leave, convalescent leave, or another form of leave 
authorized for the member, and for facilitating the travel of 
family members to be reunited with such a member.
      The Senate amendment contained a similar provision (sec. 
653) that, in addition, would authorize the Secretary, in an 
exceptional case, to permit a person who is not a family member 
to use frequent traveler miles, credits, and tickets, if that 
person has a notably close relationship with the member. The 
Senate amendment also contained a provision that would 
authorize the Secretary to enter into an agreement with a 
nonprofit organization to assist in administering the 
collection, distribution, and use of donated frequent traveler 
miles, credits, and tickets.
      The House recedes with an amendment that would eliminate 
a requirement that the Secretary encourage air and surface 
carriers to participate in the donation of frequent traveler 
miles, credits, and tickets. The amendment would also amend 
section 134 of the Internal Revenue Code of l986 to exempt 
recipients of frequent traveler miles, credits, and tickets 
authorized in this Act from tax liability for receipt of such 
frequent traveler miles, credits, or tickets.
Annual report identifying reasons for discharges from the Armed Forces 
        during preceding fiscal year (sec. 586)
      The House bill contained a provision (sec. 587) that 
would require the Secretary of Defense to report annually to 
the Committees on Armed Services of the Senate and the House of 
Representatives detailed information regarding the numbers of 
persons discharged from each of the military services in the 
preceding fiscal year.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment that would 
authorize the use of generic interservice separation codes 
providing similar, consistent data across the services in this 
report, and that would terminate the authority for this report 
after 1 March 2011.
Study of blended wing concept for the Air Force (sec. 587)
      The House bill contained a provision (sec. 589) that 
would require the Secretary of the Air Force to submit by March 
1, 2005 a report on matters related to the Air Force's current 
implementation of and future plans for blended wings to the 
Committees on Armed Services of the Senate and the House of 
Representatives.
      The Senate amendment contained no similar provision.
      The Senate recedes.
      In describing the manner in which current blended wings 
are functioning, the conferees request the Secretary of the Air 
Force to comment on the efficacy of the provisions of section 
516 of the National Defense Authorization Act for Fiscal Year 
2004 (Public Law 108-136). The Secretary should include 
recommendations for legislative changes, if needed, to ensure 
the ability of officers of the Army or Air National Guard, 
called to active duty for the purpose of commanding a unit 
composed of both active and Reserve component personnel, to 
successfully perform their duties.
Sense of Congress regarding return of members to active-duty service 
        upon rehabilitation from service-related injuries (sec. 588)
      The Senate amendment contained a provision (sec. 575) 
that would find that in cases involving combat-related injuries 
or other service-related injuries, it is possible, as a result 
of advances in technology and extensive rehabilitative 
services, to restore to members of the Armed Forces sustaining 
such injuries the capability to resume active military service, 
including, in a few cases, the capability to participate 
directly in the performance of combat missions.
      The provision would express the sense of the Senate that 
members of the Armed Forces who, on their own initiative, are 
highly motivated to return to active-duty service following 
rehabilitation from injuries incurred in service of the Armed 
Forces should, after appropriate medical review and physical 
disability evaluation, be given the opportunity to present 
theircase for continuing service on active duty in varied 
military capacities. Additionally, the provision would express the 
sense of the Senate that there should be no barrier in policy or law to 
members having the option to return to military service on active duty, 
and that the Secretary of Defense should develop specific protocols 
that include options for such members to return to active-duty service 
and to be retrained to perform military missions for which they are 
fully capable.
      The House bill contained no similar provision.
      The House recedes with an amendment that would express a 
sense of Congress.

                       Subtitle M--Other Matters

Protection of Armed Forces personnel from retaliatory actions for 
        communications made through the chain of command (sec. 591)
      The Senate amendment contained a provision (sec. 1069) 
that would amend section 1034 of title 10, United States Code, 
to allow a protected communication to be made to any person in 
the chain of command of a member of the Armed Forces making 
such a communication, as well as any other person or 
organization designated by regulations or other procedures for 
such communications.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Implementation plan for accession of persons with specialized skills 
        (sec. 592)
      The Senate amendment contained a provision (sec. 571) 
that would authorize the service secretaries to establish an 
alternate minimum military service obligation for accession of 
persons into the Armed Forces who have unique skills. The 
provision would also authorize establishment of expedited basic 
training requirements for certain individuals in order to allow 
the Department of Defense to meet exigent mission requirements.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary of Defense, not later than 180 days after the 
date of enactment of this Act, to submit a plan for 
implementation of authority, if subsequently provided by law, 
to allow for accession into the Armed Forces of persons with 
specialized skills for duty involving the use of such skills. 
The Secretary would also be required to include a comparison of 
the plan submitted with an alternative plan of using civilian 
contractor personnel to meet the specialized skills required by 
the Armed Forces.
      The conferees believe that there may be a valid 
requirement for an alternate minimum military service 
obligation for certain individuals and for expedited basic 
training that would justify exceptions under sections 651 and 
671 of title 10, United States Code. The Department has not 
sufficiently explained, however, the manner in which such new 
authorities would be used and the potential effects such 
exceptional treatment of new accessions could have on other 
special or lateral entry programs. The conferees expect the 
Department to use the report to address these concerns.
      The provision would also require the Secretary to conduct 
a feasibility study of how to implement a system that would 
make civilian volunteers, with skills determined by the 
Secretary to be critical, rapidly available for use in, or in 
support of, units of the Armed Forces on a temporary basis to 
meet no-notice or short-notice operational requirements. The 
requirement to conduct this feasibility study was included in 
the House bill (sec. 597) and is appropriately submitted in the 
context of better evaluating expedited, short-term manpower 
needs of the military services.
      The conferees suggest that coordinating the foregoing 
feasibility study with the separate report required elsewhere 
in this Act on acceptance of voluntary services under section 
1588 of title 10, United States Code, could be useful.
Enhanced screening methods and process improvements for recruitment of 
        home schooled and National Guard Challenge program GED 
        recipients (sec. 593)
      The House bill contained a provision (sec. 594) that 
would reestablish the pilot program under section 571 of the 
Strom Thurmond National Defense Authorization Act for Fiscal 
Year 1999 (Public Law 105-261). This pilot program permitted 
participants in a National Guard Challenge Program who received 
a general education development (GED) certificate, and those 
who completed their high school requirements through a home 
schooling program to enlist in the Armed Forces as if they had 
received a high school diploma.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary of the Army to carry out an initiative aimed at 
developing screening methods and process improvements for 
recruiting specified GED recipients. The purpose would be to 
achieve attrition patterns among the recruited recipients of a 
GED that match those of Army recruits who are high school 
diploma graduates and, following review by the Secretary of 
Defense, to implement such screening methods and process 
improvements on a test basis.
Redesignation of National Guard Challenge Program as National Guard 
        Youth Challenge Program (sec. 594)
      The Senate amendment contained a provision (sec. 573) 
that would change the name of the National Guard Challenge 
Program to the National Guard Youth Challenge Program. 
Additionally, the provision would phase in over three years an 
increase in the matching funds ratio to increase the amount of 
federal funds that may be provided to a State program.
      The House bill contained no similar provision. The House 
recedes with an amendment that would redesignate the National 
Guard Challenge Program as the National Guard Youth Challenge 
Program.
      The conferees were disappointed that the Secretary of 
Defense, in the report required by section 587 of the National 
Defense Authorization Act for Fiscal Year 2004 (Public Law 108-
136), did not provide alternatives to the current matching 
funds structure for the National Guard Youth Challenge Program. 
The conferees believe that such alternatives would provide 
greater flexibility in the management of the program to better 
respond to temporary fiscal conditions.
      The conferees direct the Comptroller General to conduct a 
study of the National Guard Youth Challenge program to 
determine the effects of current fiscal constraints at the 
State level on the operation of individual programs. The study 
should assess the Department of Defense's oversight of the 
program, the efforts of both the Department and the States to 
secure alternative and supplemental funding support for the 
programs, and the impact of changes to the existing 60-40 DOD-
to-State matching funds ratio.
Reports on certain milestones relating to Department of Defense 
        transformation (sec. 595)
      The House bill contained a provision (sec. 597) that 
would require the Secretary of Defense to submit reports to the 
Committees on Armed Services of the Senate and the House of 
Representatives on implementation of transformational 
milestones identified by the Department of Defense.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment to remove the 
requirement for a feasibility study on a civilian skill corps.
      The conferees expect that a study on the feasibility of a 
civilian skill corps will be conducted under authority provided 
elsewhere in this Act concerning accession of persons with 
specialized skills.
      With respect to military-to-civilian conversions in Navy 
medical and dental fields that are proposed for fiscal year 
2005, the conferees are concerned that the specialties targeted 
for conversion are those most needed by military families, 
including pediatrics, family practice, and pharmacy. The 
conferees urge not only the Secretary of the Navy but also the 
secretaries of the other military departments to ensure that 
plans for military-to-civilian conversions do not adversely 
affect the quality and access of military health care required 
by military families. The conferees direct the Secretary of 
Defense to provide a report to the Committees on Armed Services 
of the Senate and the House of Representatives not later than 
90 days following enactment of this Act that describes the 
plans of each military department for military-to-civilian 
conversions of medical and dental personnel in fiscal year 
2006.
Report on issues relating to removal of remains of persons interred in 
        United States military cemeteries overseas (sec. 596)
      The House bill contained a provision (sec. 599) that 
would authorize the Secretary of Defense, upon application of a 
qualifying survivor, to authorize disinterment and removal of 
the remains of military personnel interred in overseas military 
cemeteries.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary of the Army, in consultation with the American 
Battle Monuments Commission (ABMC), to examine the history of 
the overseas cemeteries and the processes used to ensure that 
the initial disposition decision was carried out, together with 
a review and explanation of the existing policy and procedures 
regarding requests for disinterment and any exceptions that 
have been made. Additionally, the examination should include an 
analysis of potential reasons for justifying disinterment or 
remains from overseas cemeteries and the potential impact on 
the operation of U.S. overseas military cemeteries of 
permitting disinterment of remains from those cemeteries. Not 
later than September 30, 2005, the Secretary would be required 
to submit a report to the Committees on Armed Services of the 
Senate and the House of Representatives on the results of the 
examination, a description of the changes to policy that would 
be necessary to support a system for requesting and authorizing 
disinterment of remains, and the recommendations of the 
Secretary and the ABMC with respect to changes in policy and 
procedures with respect to such disinterments.
      The conferees believe that a comprehensive examination 
and report on the history of the overseas military cemeteries 
and the reasons for the policy prohibiting disinterments is 
needed. Survivors of military veterans buried in the overseas 
military cemeteries must be assisted in every way possible in 
understanding the history of the overseas cemeteries and the 
reasons justifying the policy barring disinterments. The 
conferees express no opinion about this policy, however, to the 
extent that exceptions to the policy have been made or may be 
deemed warranted by the Secretary and the ABMC, survivors 
should have a clear understanding through the report that would 
be required by this provision of what burden of proof must be 
satisfied.
Comptroller General reports on closure of Department of Defense 
        Dependent Elementary and Secondary Schools and commissary 
        stores (sec. 597)
      The Senate amendment contained a provision (sec. 2845) 
that would require the Comptroller General of the United States 
to submit a report to the appropriate committees of Congress 
which includes an assessment of the policy and criteria 
utilized by the Department of Defense regarding the closure of 
schools and commissary stores, including whether or not such 
policy and criteria are consistent with policies and procedures 
on the preservation of the quality of life of members of the 
Armed Forces.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Comptroller General report on transition assistance programs for 
        members separating from the Armed Forces (sec. 598)
      The Senate amendment contained a provision (sec. 1029A) 
that would require the Comptroller General to carry out a study 
of the programs of the Department of Defense and other 
departments and agencies of the Federal Government, including 
the Department of Veterans Affairs, under which transition 
assistance is provided to personnel who are separating from 
active-duty service in the Armed Forces. The report would 
include an analysis of the extent to which transition 
assistance programs authorized under sections 1142 and 1144 of 
title 10, United States Code, are adequate to meet the needs of 
the Reserve components, as well as recommendations by the 
Comptroller General to improve the content and uniformity of 
pre-separation counseling. The provision would also include an 
analysis of pre- and post-deployment health screening, and 
programs that are in place to identify and treat post-traumatic 
stress disorder and related health conditions.
      The House bill contained no similar provision.
      The House recedes with an amendment to clarify that the 
Comptroller General report will include an assessment of the 
quality and thoroughness of information being provided during 
the pre-separation briefings conducted by the Department of 
Veterans Affairs.
Study on coordination of job training standards with certification 
        standards for military occupational specialties (sec. 599)
      The Senate amendment contained a provision (sec. 1029B) 
that would require the Secretary of Defense and the Secretary 
of Labor to jointly carry out a study on ways to coordinate the 
standards applied by the Armed Forces for the training and 
certification of members of the Armed Forces in military 
occupational specialties with the standards that are applied to 
corresponding civilian occupations by governmental and private 
sector certification agencies.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.

                   Legislative Provisions Not Adopted

Length of service for service chiefs
      The House bill contained a provision (sec. 501) that 
would authorize the President to extend the term of service of 
an officer serving as the Chief of Staff of the Army, the Chief 
of Naval Operations, the Commandant of the Marine Corps, or the 
Chief of Staff of the Air Force for a period of up to two years 
beyond the initial four-year appointment.
      The Senate amendment contained no similar provision.
      The House recedes.
Modification of conditions of eligibility for waiver of joint duty 
        credit requirement for promotion to general or flag officer
      The Senate amendment contained a provision (sec. 501) 
that would allow waivers of certain tour length requirements in 
cases in which an officer's proposed selection for promotion is 
based primarily upon a career field specialty, vice scientific 
and technical qualification, for which joint requirements do 
not exist. The provision would also eliminate the requirement 
that an officer serve in a joint duty assignment at least 180 
days prior to the convening of a selection board for that 
officer to qualify for promotion to the rank of brigadier 
general or rear admiral (lower half).
      The House bill had no similar provision regarding waivers 
of tour length requirements but a provision (sec. 532) that 
also repealed the requirement for 180 days service in a joint 
duty assignment before an officer may be considered for 
promotion to flag or general officer rank.
      The Senate recedes.
Management of joint specialty officers
      The Senate amendment contained a provision (sec. 502) 
that would provide that officers shall be designated as joint 
specialty officers upon successfully completing, in any 
sequence, a program accredited by the Chairman of the Joint 
Chiefs of Staffthat is offered by a joint professional military 
education institution and a full tour of duty in a joint duty 
assignment, or after completing two full tours of duty in joint duty 
assignments. This provision would also specify that general and flag 
officer positions identified as joint duty assignments must be filled 
by officers with joint specialty unless the Secretary of Defense 
determines that the assignment of officers without the joint specialty 
is necessary and waives the requirement.
      The House bill contained no similar provision.
      The Senate recedes.
Increase in age limit for deferral of mandatory retirement for up to 10 
        senior general and flag officers
      The House bill contained a provision (sec. 503) that 
would increase from 64 to 66 the mandatory retirement age for 
senior general and flag officers whom the President had 
previously retained on active duty beyond the statutory limits 
on either time-in-grade or age.
      The Senate amendment contained no similar provision.
      The House recedes.
Increased flexibility for voluntary retirement for military officers
      The House bill contained a provision (sec. 504) that 
would require officers serving in grades above colonel or 
captain in the Navy to serve a minimum of one year time-in-
grade before being allowed to retire in that grade. 
Additionally, the provision would modify existing law to give 
the authority to the secretary of the military department 
concerned to approve retirement of officers in grades above 
major general or rear admiral in the Navy with the concurrence 
of the Secretary of Defense.
      The Senate amendment contained no similar provision.
      The House recedes.
Length of joint duty assignments
      The Senate amendment contained a provision (sec. 504) 
that would prescribe certain conditions under which officers 
would qualify to receive full credit for joint duty. The 
provision would also allow the Secretary of Defense to waive 
the applicability of section 664 of title 10, United States 
Code, if the Secretary determines that it is in the national 
security interests of the United States to do so.
      The House bill contained no similar provision.
      The Senate recedes.
Repeal of requirement that no more than 50 percent of active duty 
        general and flag officers be in grades above brigadier general 
        and rear admiral (lower half)
      The House bill contained a provision (sec. 505) that 
would repeal the limitation in section 525 of title 10, United 
States Code, that no more than 50 percent of general and flag 
officers in a military service on active duty can be in grades 
above brigadier general and rear admiral (lower half).
      The Senate amendment contained no similar provision.
      The House recedes.
Revision to terms for assistants to the Chairman of the Joint Chiefs of 
        Staff for National Guard and Reserve matters
      The House bill contained a provision (sec. 506) that 
would authorize the assistants to the Chairman of the Joint 
Chiefs of Staff for National Guard and Reserve matters to serve 
an initial term of four years.
      The Senate amendment contained no similar provision.
      The House recedes.
Repeal of distribution requirements for Naval Reserve flag officers
      The House bill contained a provision (sec. 510) that 
would amend section 12004(c) of title 10, United States Code, 
and repeal the existing distribution of flag officer billets 
for staff corps officers in the U.S. Naval Reserve.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees note that the allocations for flag officer 
billets in section 12004(c) apply to the Medical Corps, Nurse 
Corps, Dental Corps, Judge Advocate General's Corps, Civil 
Engineer Corps, Supply Corps, Chaplain Corps, and Medical 
Service Corps of the U.S. Naval Reserve. At a time when the 
Naval Reserve is engaged in an ongoing zero-based review of 
Reserve component force structure and development of 
initiatives to improve the integration of the Active and 
Reserve components of the Navy, the conferees question the 
Department of Defense's position that flag officer allocations 
for these vital Naval Reserve staff corps communities should be 
totally eliminated in order to establish additional line and 
restricted line Naval Reserve flag officer billets. The 
conferees expect the Navy to provide the Committees on Armed 
Services of the Senate and the House of Representatives with 
additional information justifying modifications to existing 
allocations in section 12004(c) based on the results of its 
zero-based review.
Authority for Reserve officers to qualify as joint specialty officers
      The House bill contained a provision (sec. 534) that 
would authorize the Secretary of Defense to award the joint 
specialty officer designation to Reserve officers who have met 
the prescribed requirements for such designation.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees strongly support the inclusion of Reserve 
officers in the Department of Defense planning and policies 
regarding designation, career development, and management of 
officers skilled in joint matters. The conferees anticipate 
that the report on the applicability of the term ``joint 
specialty officer'' to qualified reservists, required by the 
Senate report accompanying S. 2400 (S. Rept. 108-260), will be 
useful in identifying legislative and regulatory changes needed 
to accomplish this goal. Additionally, the conferees expect the 
strategic plan linking joint officer development to overall 
missions and goals of the Department to fully address Reserve 
officer matters.
Ribbons to recognize completion of joint professional military 
        education
      The House bill contained a provision (sec. 542) that 
would authorize the Secretary of Defense to award a military 
decoration to persons who have successfully completed joint 
professional military education phase I and to subsequently 
award a device to affix to the ribbon when a person has 
successfully completed joint professional military education 
phase II.
      The Senate amendment contained no similar provision.
      The House recedes.
Increase in number of private-sector civilians who may be enrolled for 
        instruction at National Defense University
      The House bill contained a provision (sec. 543) that 
would increase the maximum number of eligible private-sector 
employees who may receive instruction at the National Defense 
University from 10 to 20.
      The Senate amendment contained no similar provision.
      The House recedes.
Requirement for completion of phase I joint professional military 
        education before promotion to colonel or Navy captain
      The House bill contained a provision (sec. 544) that, 
with certain exceptions, would require that after September 30, 
2007 officers on the active-duty list must complete joint 
professional military education phase I or phase II before 
being appointed to the grade of colonel or captain in the Navy.
      The Senate amendment contained no similar provision.
      The House recedes.
Reduced blood alcohol content limit for offense of drunken operation of 
        a vehicle, aircraft, or vessel
      The Senate amendment contained a provision (sec. 551) 
that would amend Article 111 of the Uniform Code of Military 
Justice (10 U.S.C. 911) to lower the permissible blood alcohol 
concentration for the offense of drunken operation of a 
vehicle, aircraft, or vessel from the lesser of 0.10 grams or 
the limit prescribed in the State in which the offense occurred 
to the lesser of 0.08 grams or the limit prescribed in the 
State in which the offense occurred.
      The House bill contained no similar provision.
      The Senate recedes.
Prayer at military service academy activities
      The House bill contained a provision (sec. 556) that 
would authorize the superintendent of a service academy to 
establish a policy with respect to the offering of a voluntary, 
nondenominational prayer at an authorized activity of the 
academy.
      The Senate amendment contained no similar provision.
      The House recedes.
Establishment of college financial assistance program for District of 
        Columbia National Guard
      The House bill contained a provision (sec. 560B) that 
would authorize the Department of Defense to provide financial 
assistance for college expenses, not to exceed $2,500 for any 
academic year, to eligible members of the National Guard of the 
District of Columbia.
      The Senate amendment contained no similar provision.
      The House recedes.
  Separate military campaign medals to recognize service in Operation 
        Enduring Freedom and service in Operation Iraqi Freedom
The House bill contained a provision (sec. 561) that would require the 
        President to establish separate campaign medals to recognize 
        the service of members during Operation Enduring Freedom and 
        Operation Iraqi Freedom.
      The Senate amendment contained a similar provision (sec. 
542).
      This provision is not included in the conference report 
because it is unnecessary. On May 28, 2004, H.R. 3104, an Act 
to provide for the establishment of separate campaign medals to 
be awarded to members of the uniformed services who participate 
in Operation Enduring Freedom and Operation Iraqi Freedom, was 
enacted as Public Law 108-234.
Redesignation of inactive-duty training to encompass operational and 
        other duties performed by Reserves while in inactive duty 
        status
      The Senate amendment contained a provision (sec. 561) 
that would redesignate the duty status applicable to members of 
the Reserve components of the Armed Forces known as ``inactive 
duty training'' as ``inactive duty.''
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees acknowledge that the intent of the 
Department of Defense in requesting this statutory change is to 
more accurately reflect the current mission, capabilities, and 
actual utilization of the modern Reserve component. The 
conferees are concerned, however, that the full implications of 
this extensive change on the requirement for training and the 
priority to be given to training are not sufficiently defined 
or understood. The conferees urge the Department to demonstrate 
in its Reserve continuum of service and corresponding proposals 
for legislative change, its commitment to preserving periods of 
training in order to maintain readiness and core capabilities.
Eligibility of all uniformed services personnel for National Defense 
        Service Medal
      The House bill contained a provision (sec. 562) that 
would require the President to authorize the award of the 
National Defense Service Medal to members of the uniformed 
services.
      The Senate amendment contained no similar provision.
      The House recedes.
Repeal of unnecessary duty status distinction for funeral honors duty
      The Senate amendment contained a provision (sec. 562) 
that would repeal section 12503 of title 10, United States 
Code, relating to funeral honors duty. Section 12503, which 
authorizes treatment of funeral honors duty as inactive duty 
training, would have been unnecessary in conjunction with 
renaming of ``inactive duty training'' as ``inactive duty.''
      The House bill contained no similar provision.
      The Senate recedes.
Conforming amendments to other laws referring to inactive-duty training
      The Senate amendment contained a provision (sec. 563) 
that would conform certain provision in titles 5 and 38, United 
States Code, with the proposed change of the term ``inactive 
duty training'' to ``inactive duty.''
      The House bill contained no similar provision.
      The Senate recedes.
Conforming amendments to other laws referring to funeral honors duty
      The Senate amendment contained a provision (sec. 564) 
that would conform certain provisions in titles 5 and 38, 
United States Code, with the proposed change of the term 
``inactive duty training'' to ``inactive duty'' as it would 
apply to funeral honors duty.
      The House bill contained no similar provision.
      The Senate recedes.
Army combat recognition ribbon
      The House bill contained a provision (sec. 566) that 
would require the Secretary of the Army to establish a combat 
recognition ribbon to recognize participation by members of the 
Army in combat.
      The Senate amendment contained no similar provision.
      The House recedes.
Clarification of authority of military legal assistance counsel to 
        provide military legal assistance without regard to licensing 
        requirements
      The House bill contained a provision (sec. 573) that 
would amend section 1044 of title 10, United States Code, to 
provide that a judge advocate or a civilian attorney authorized 
to provide military legal assistance may provide such 
assistance in any jurisdiction, notwithstanding any law 
regarding the licensing of attorneys and subject to regulations 
to be prescribed by the Secretary concerned.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees note that differing responses were received 
from the Department of Defense and the services as to the need 
for and advisability of such a change in law. Concerns were 
expressed as to the possible effect on judge advocates and 
federal civilian attorneys practicing outside the legal 
assistance area, if such a proposal is adopted. The conferees 
urge the Department to develop a unified position with regard 
tothe need for such a statutory change, and to submit a 
legislative proposal, if necessary.
Appearance of veterans service organizations at pre-separation 
        counseling provided by the Department of Defense
      The Senate amendment contained a provision (sec. 574) 
that would authorize the service secretaries to permit a 
representative from a veterans service organization to appear 
at and participate in pre-separation counseling for military 
members, authorized in section 1142 of title 10, United States 
Code. The provision would also authorize Reserve component 
units to meet with a veterans service organization upon release 
from active duty for the purpose of obtaining information and 
assistance.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees expect that the matter of participation by 
representatives from veterans service organizations in pre-
separation counseling for members in both Active and Reserve 
components will be addressed in the Comptroller General's 
report on transition assistance programs for members separating 
from the Armed Forces required elsewhere in this Act.
Limitation on amendment or cancellation of Department of Defense 
        directive relating to reasonable access to military 
        installations for certain personal commercial solicitation
      The House bill contained a provision (sec. 586) that 
would prohibit the Secretary of Defense from cancelling or 
amending Department of Defense (DOD) Directive 1344.7, 
``Personal Commercial Solicitation on DOD Installations,'' for 
a period of one year after the Government Accountability Office 
(GAO) reports to Congress on the findings of an ongoing review 
of the financial allotment system and the treatment of 
insurance agents by military finance offices and local managers 
and commanders at Department of Defense installations.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees note that the Statement of Managers 
accompanying the Department of Defense Appropriations Act for 
Fiscal Year 2005 (Public Law 108-287) prohibits the use of 
appropriated funds to amend or cancel DOD Directive 1344.7 
until 90 days after the report of the results of the 
investigation regarding insurance premiums allotment processing 
is submitted.
      In the statement of managers accompanying the National 
Defense Authorization Act for Fiscal Year 2004 (Public Law 108-
136), the conferees stated that the Department has taken 
appropriate steps to thoroughly consider and evaluate potential 
changes to personal commercial solicitation policies. The 
conferees believe sufficient time has elapsed for the 
Department to complete its evaluation. The Secretary is 
directed to submit a report on the status of its plans to 
effect changes to personal commercial solicitation policies, 
including any recommended changes or revisions to DOD Directive 
1344.7, to the Committees on Armed Services of the Senate and 
the House of Representatives by May 1, 2005.
Employment preferences for spouses of certain Department of Defense 
        civilian employees subject to relocation agreements
      The House bill contained a provision (sec. 591) that 
would expand the employment preference for spouses of 
Department of Defense civilian employees who have been assigned 
under a mandatory mobility agreement or similar mandatory 
mobility program. The authority would place spouses of civilian 
employees in an equivalent position to spouses of military 
members who already receive employment preferences.
      The Senate amendment contained no similar provision.
      The House recedes.
Demonstration program on expanded use of Reserves to perform 
        developmental testing, new equipment training, and related 
        activities
      The Senate amendment contained a provision (sec. 862) 
that would authorize the Secretary of the Army to carry out a 
demonstration program through September 2009 on the assignment 
of members of Reserve components to perform test, evaluation, 
and related activities for acquisition programs.
      The House bill contained no similar provision.
      The Senate recedes.
Content of pre-separation counseling for personnel separating from 
        active-duty service
      The Senate amendment contained a provision (sec. 1029C) 
that would require that information on participation in Federal 
Government procurement opportunities be included in pre-
separation counseling authorized by section 1142 of title 10, 
United States Code. The provision would also authorize the 
secretary concerned to provide pre-separation counseling at 
medical centers of the Department of Veterans Affairs and the 
Department of Defense with the consent of the member.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees expect that this requirement will be 
included in the Comptroller General report on transition 
assistance programs for members separating from the Armed 
Forces required elsewhere in this Act.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Legislative Provisions Adopted

                     Subtitle A--Pay and Allowances

Increase in basic pay for fiscal year 2005 (sec. 601)
      The House bill contained a provision (sec. 601) that 
would specify the requirement for increased pay for members of 
the Armed Forces by 3.5 percent effective January 1, 2005, and 
waiver of the adjustment required by section 1009 of title 37, 
United States Code.
      The Senate amendment contained no similar provision in 
view of the requirement regarding annual pay adjustment under 
section 1009(c)(2) of title 37, United States Code.
      The Senate recedes.
Relationship between eligibility to receive supplemental subsistence 
        allowance and eligibility to receive imminent danger pay, 
        family separation allowance, and certain federal assistance 
        (sec. 602)
      The Senate amendment contained a provision (sec. 621) 
that would exclude the family separation allowance and special 
pay relating to duty subject to hostile fire or imminent danger 
from the calculation of household income for eligibility to 
receive the family supplemental subsistence allowance (FSSA). 
The provision would also exclude the amount of FSSA received by 
service members in determining the eligibility of their spouses 
and children for certain low income assistance programs, and 
require a report on the accessibility by members of the Armed 
Forces and their families to social services.
      The House bill contained no similar provision.
      The House recedes with a technical amendment that would 
eliminate the reporting requirement.
Authority to provide family separation basic allowance for housing 
        (sec. 603)
      The House bill contained a provision (sec. 602) that 
would extend permissive authority to service secretaries to 
decline to pay family separation housing allowances when, in 
the secretaries' discretion, members' circumstances do not 
justify such payments.
      The Senate amendment contained no similar provision.
      The Senate recedes.
      The conferees caution that it is not their intent that 
the service secretaries use the discretion provided in this 
provision to deny appropriate housing allowances to deserving 
service members and their families. The conferees intend that 
service members stationed worldwide should receive a family 
separation housing allowance in all cases when their families 
are prohibited from joining them at their current duty station 
and government-provided quarters are unavailable to the service 
members at their duty locations.
Geographic basis for housing allowance during short-assignment 
        permanent changes of station for education or training (sec. 
        604)
      The House bill contained a provision (sec. 603) that 
would authorize service members who attend professional 
military education or training lasting 12 months or less to 
elect to leave their families at their previous duty station 
and receive basic allowance for housing based on the area where 
their dependents reside.
      The Senate amendment contained a similar provision (sec. 
601).
      The House recedes with a technical amendment.
Immediate lump-sum reimbursement for unusual nonrecurring expenses 
        incurred for duty outside the continental United States (sec. 
        605)
      The House bill contained a provision (sec. 604) that 
would authorize the service secretary concerned to pay service 
members serving outside the continental United States for 
certain unusual nonrecurring expenses.
      The Senate amendment contained a similar provision (sec. 
602).
      The House recedes with a technical amendment.
Authority for certain members deployed in combat zones to receive 
        limited advances on future basic pay (sec. 606)
      The House bill contained a provision (sec. 606) that 
would authorize the secretary concerned to pay advances on 
future basic pay for service members assigned to locations 
where they would receive imminent danger pay and their 
assignment is pursuant to orders specifying an assignment of 
one year or more or the assignment is extended beyond one year.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment that would 
require the service member to repay the advance in equal 
monthly installments over a one-year period beginning the month 
after the advance is received.
Repeal of requirement that members entitled to basic allowance for 
        subsistence pay subsistence charges while hospitalized (sec. 
        607)
      The House bill contained a provision (sec. 661) that 
would repeal the requirement for officers and certain enlisted 
members to pay subsistence charges when they are hospitalized.
      The Senate amendment contained a similar provision (sec. 
711).
      The Senate recedes with a technical amendment.

           Subtitle B--Bonuses and Special and Incentive Pays

One-year extension of certain bonus and special pay authorities for 
        Reserve forces (sec. 611)
      The House bill contained a provision (sec. 611) that 
would extend the authority for various bonuses and special pays 
for Active and Reserve members.
      The Senate amendment contained a provision (sec. 611) 
that would extend for one year the authority to pay the 
Selected Reserve reenlistment bonus, the Selected Reserve 
enlistment bonus, the special pay for enlisted members assigned 
to certain high priority units in the Selected Reserve, the 
Selected Reserve affiliation bonus, the Ready Reserve 
enlistment and reenlistment bonus, and the prior service 
enlistment bonus.
      The House recedes.
One-year extension of certain bonus and special pay authorities for 
        certain health care professionals (sec. 612)
      The House bill contained a provision (sec. 611) that 
would extend the authority for various bonuses and special pays 
for Active and Reserve members, including certain health care 
professionals.
      The Senate amendment contained a provision (sec. 612) 
that would extend for one year the authority to pay the nurse 
officer candidate accession bonus, the accession bonus for 
registered nurses, incentive special pay for nurse 
anesthetists, special pay for Selected Reserve health 
professionals in critically short wartime specialties, the 
accession bonus for dental officers, and to repay education 
loans for certain Selected Reserve health professionals.
      The House recedes with an amendment that would also 
extend the authority to pay the accession bonus for pharmacy 
officers until December 31, 2005.
One-year extension of special pay and bonus authorities for nuclear 
        officers (sec. 613)
      The House bill contained a provision (sec. 611) that 
would extend the authority for various bonuses and special pays 
for Active and Reserve members, including nuclear officers.
      The Senate amendment contained a provision (sec. 613) 
that would extend for one year the authority to pay the special 
pay for nuclear-qualified officers extending their period of 
active service, the nuclear career accession bonus, and the 
nuclear career annual incentive bonus.
      The House recedes.
One-year extension of other bonus and special pay authorities (sec. 
        614)
      The House bill contained a provision (sec. 611) that 
would extend the authority for various bonuses and special pays 
for Active and Reserve members.
      The Senate amendment contained a provision (sec. 614) 
that would extend for one year the authority to pay the 
aviation officer retention bonus, assignment incentive pay, the 
reenlistment bonus for Active members, the enlistment bonus for 
Active members, the retention bonus for members with critical 
military skills, and the accession bonus for new officers in 
critical military skills.
      The House recedes.
Authority to provide hazardous duty incentive pay to military 
        firefighters (sec. 615)
      The House bill contained a provision (sec. 620) that 
would authorize a new hazardous duty incentive pay of $150 per 
month for members of the uniformed services who regularly 
perform duty as a member of a firefighting crew.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would modify 
section 301 of title 37, United States Code, to authorize 
incentive pay at a monthly rate not to exceed $150 per month 
for any month during which a member performs duty involving 
regular participation as a firefighting crew member, as 
determined by the secretary concerned.
Reduced service obligation for nurses receiving nurse accession bonus 
        (sec. 616)
      The House bill contained a provision (sec. 612) that 
would reduce the service commitment required for the nurse 
accession bonus from four to three years of service.
      The Senate amendment contained a similar amendment (sec. 
615).
      The House recedes with an amendment that the authority 
shall apply on or after the date of enactment of this Act.
Assignment incentive pay (sec. 617)
      The House bill contained a provision (sec. 614) that 
would require termination of assignment incentive pay when the 
member is placed on terminal leave and will not be returning to 
the assignment location.
      The Senate amendment contained a similar provision (sec. 
616) that would also delete the requirement for a written 
agreement between the secretary concerned and the member.
      The House recedes with a technical amendment.
      The conferees believe that assignment incentive pay 
should be a highly flexible means of providing an incentive to 
members to volunteer for challenging assignments. In this 
regard, the conferees approve of the actions of the Department 
of Defense and the Department of the Army in supporting the 
Commander, U.S. Forces Korea, in aggressively using assignment 
incentive pay to provide stability and enhanced readiness for 
soldiers and units in the Republic of Korea.
      The conferees also view assignment incentive pay as a 
responsive means for service secretaries, on a discretionary 
basis when mission accomplishment so requires, to appropriately 
compensate members who are called on to extend their service or 
tours of duty or otherwise serve in demanding assignments. The 
requirement for a written agreement under these circumstances 
is not required and should not be mandatory in all cases.
Modification of active and Reserve component reenlistment and 
        enlistment bonus authorities (sec. 618)
      The House bill contained a provision (sec. 615) that 
would consolidate Active and Reserve Component reenlistment and 
enlistment bonus authorities. The provision would repeal 
certain special pay provisions and also extend eligibility for 
the reenlistment bonus through 17 years of service and 
authorize the use of the reenlistment bonus during war and 
national emergency to address unit specific retention problems 
without regard to critical skill eligibility requirements.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would authorize 
payment of an active-duty or Selected Reserve reenlistment 
bonus up to 16, vice 14, years of service and increase the 
maximum amount of the Selected Reserve reenlistment bonus from 
$5,000 to $15,000 for a reenlistment or extension of six years, 
from $2500 to $7,500 for a reenlistment or extension of three 
years, and from $2,000 to $6,000 for a reenlistment or 
extension of three years when the member has received a bonus 
for a previous three year enlistment. The amendment would also 
authorize lump sum payments of the foregoing bonuses.
      The amendment would increase the maximum amount of the 
Selected Reserve enlistment bonus from $8,000 to $10,000; 
increase the Ready Reserve enlistment bonus for persons without 
prior service from $1,000 to $3,000; and increase the maximum 
amount of the prior service Ready Reserve bonus from $1,500 to 
$3,000 for a six year enlistment and from $750 to $1,500 for a 
three year enlistment. The amendment would authorize payment of 
the prior service enlistment bonus for the Selected Reserve for 
members who have not more than 16 years of total service. It 
would increase the maximum amount of the bonus from $8,000 to 
$15,000 for a six year enlistment, from $4,000 to $7,500 for a 
three year enlistment, and from $3,500 to $6,000 for a three 
year reenlistment or extension when the member has received a 
bonus for a previous three year enlistment.
Bonus for certain initial service of officers in the Selected Reserve 
        (sec. 619)
      The House bill contained a provision (sec. 618) that 
would modify section 324 of title 37, United States Code, to 
authorize Reserve component officers to be paid an accession of 
affiliation bonus using the same authority used to pay active-
duty officers.
      The Senate amendment contained a provision (sec. 620) 
that would authorize an affiliation or accession bonus of up to 
$6,000 for certain commissioned officers in the Selected 
Reserve. The provision would help to access and affiliate 
officers in the Selected Reserve who possess or would train to 
acquire designated critical skills.
      The House recedes with an amendment that would specify 
that a member entitled to a bonus under this provision who is 
called or ordered to active duty shall be paid, during that 
period of active duty, any amount of the bonus that becomes 
payable to the member during that period of active duty.
Revision of authority to provide foreign language proficiency pay (sec. 
        620)
      The House bill contained a provision (sec. 616) that 
would authorize the service secretary concerned to pay an 
annual bonusof up to $12,000 to members of the uniformed 
services who maintain proficiency in a foreign language.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would authorize 
the monthly rate for foreign language proficiency pay under 
section 316 of title 37, United States Code, to be determined 
by the secretary concerned but not to exceed $1,000. 
Additionally, the amendment would authorize payment of a bonus 
of up to $6,000 payable in a lump sum or installments for 
members of the Reserve component. The amendment would require 
that if a member of a Reserve component serving on active duty 
receives foreign language monthly special pay during any month 
for which the member receives a lump sum payment, the amount of 
the special pay paid to the member for the month shall be 
reduced by an amount equal to one-twelfth of the bonus amount.
Eligibility of enlisted members to qualify for critical skills 
        retention bonus while serving on indefinite reenlistment (sec. 
        621)
      The House bill contained a provision (sec. 617) that 
would allow Reserve component members to be paid the critical 
skills retention bonus under the authority of section 323 of 
title 37, United States Code. The provision would also extend 
eligibility for the bonus through 17 years of service and, 
clarify that enlisted members serving pursuant to an indefinite 
enlistment would be eligible under certain conditions for 
receipt of the bonus.
      The Senate amendment contained a provision (sec. 618) 
that would authorize enlisted personnel serving on indefinite 
reenlistments in designated critical military skills to receive 
a critical skills retention bonus on the condition that they 
enter into a written agreement to remain on active duty for at 
least one year under such enlistments.
      The House recedes with a technical amendment.
      The conferees believe that initiatives to consolidate or 
extend bonus authorities in the absence of Department of 
Defense legislative proposals are premature. The Department has 
indicated that a Defense Advisory Committee on Military 
Compensation will be appointed by the Secretary of Defense to 
conduct a comprehensive review of military compensation from 
the perspective of both the Active and Reserve forces. This 
Advisory Committee on Military Compensation will perform a 
comprehensive review and strategic assessment of military pay 
and benefits with a view towards simplifying and balancing pays 
to maintain a competitive edge in recruiting and retention. 
Upon completion of its work, which is anticipated in the late 
summer of 2005, the advisory committee will publish its 
conclusions and recommendations and transmit those to the 
Secretary of Defense. The conferees also expect that the 
Commission on National Guard and Reserves will contribute to a 
better informed resolution of questions about potential reform 
to title 37, United States Code.
Eligibility of Reserve component members for incentive bonus for 
        conversion to military occupational specialty to ease personnel 
        shortage (sec. 622)
      The House bill contained a provision (sec. 619) that 
would allow Reserve component members to be paid bonuses for 
converting to, and serving for a period of not less than three 
years, in military occupational specialties for which there is 
a shortage of trained and qualified personnel.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would provide 
that a bonus under this provision may not exceed $2,000.
Permanent increase in authorized amounts for imminent danger special 
        pay and family separation allowance (sec. 623)
      The House bill contained a provision (sec. 1533) that 
would make permanent the increase in the rate of imminent 
danger pay from $150 per month to $225 per month and the 
increase in the rate of family separation allowance from $100 
per month to $250 per month.
      The Senate amendment contained similar provisions (sec. 
603 and 617).
      The Senate recedes with a technical amendment.

            Subtitle C--Travel and Transportation Allowances

Travel and transportation allowances for family members to attend 
        burial ceremony or memorial service of member who dies on duty 
        (sec. 631)
      The House bill contained a provision (sec. 631) that 
would clarify that family members are authorized to travel at 
government expense to the burial site of a member who dies 
while on duty, and that the member's parents are always 
eligible to travel at government expense to attend the burial 
ceremony. The House bill included a $2.0 million ceiling on 
expenditures in fiscal year 2005 for this purpose.
      The Senate amendment included a similar provision (sec. 
631), but did not include a ceiling on expenditures in fiscal 
year 2005.
      The House recedes with a clarifying amendment.
Transportation of family members incident to serious illness or injury 
        of members of the uniformed services (sec. 632)
      The House bill contained a provision (sec. 632) that 
would expand the number and categories of family members and 
other people that would be entitled to transportation at 
government expense, and would authorize such persons to receive 
a per diem or be reimbursed for travel expenses.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would limit the 
number of family members authorized transportation and travel 
expenses to three, and would provide authority for the 
Secretary concerned to waive the limitation on the number of 
family members in circumstances determined to be appropriate.
Reimbursement for certain lodging costs incurred in connection with 
        dependent student travel (sec. 633)
      The House bill contained a provision (sec. 633) that 
would authorize the secretary concerned to reimburse a service 
member for lodging costs incurred by a dependent child 
traveling between the child's school and the member's overseas 
duty station when the lodging expenses are incurred for reasons 
beyond the control of the dependent child.
      The Senate amendment contained a similar provision (sec. 
632).
      The House recedes with a technical amendment.

             Subtitle D--Retired Pay and Survivor Benefits

Computation of high-36 month average for Reserve component members 
        retired for disability while on active duty or dying while on 
        active duty (sec. 641)
      The Senate amendment contained a provision (sec. 641) 
that would modify the rules controlling the computation of 
retirement pay and survivor annuities for Reserve component 
members who are entitled to retired pay for physical disability 
under sections 1201 and 1202 of title 10, United States Code. 
The provision would permit more equitable treatment of these 
Reserve component members by calculating the average of monthly 
basic pay for purposes of pay and annuity payments as if they 
had been entitled to basic pay for the 36 months preceding 
their retirement, regardless of whether the member served the 
entire period on active duty.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Repeal of phase-in of concurrent receipt of retired pay and veterans' 
        disability compensation for military retirees with service-
        connected disabilities rated as 100 percent (sec. 642)
      The Senate amendment contained a provision (sec. 643) 
that would modify section 1414 of title 10, United States Code, 
to repeal the requirement for phase-in of concurrent receipt of 
retired pay and veterans' disability compensation for military 
retirees with service-connected disabilities rated as 100 
percent.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Death benefits enhancement (sec. 643)
      The Senate amendment contained a provision (sec. 642) 
that would index the amount of the death gratuity payable under 
section 1478 of title 10, United States Code, to the average 
percentage of the increase in rates of basic pay taking effect 
each year. Additionally, the amendment would require the 
President to submit draft legislation to Congress that would 
increase the maximum benefit provided under Servicemembers' 
Group Life Insurance (SGLI) to $350,000 and allow a minimum 
SGLI benefit of $100,000 at no cost for members who elect the 
maximum coverage. The amendment would also establish an 
additional set of death benefits, retroactive to October 7, 
2001, for survivors of members who die in the line of duty or 
as a result of hostile action consisting of the total amount of 
basic pay, allowances, and special pays a member would have 
received for one or two years respectively. The amendment would 
also require the budget for fiscal year 2006 to include funds 
for the implementation of the foregoing enhanced benefits.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the President, at the same time he transmits to Congress the 
budget for fiscal year 2006, to submit assessments and 
recommendations on legislation, including budgetary 
implications for the legislation described in the Senate 
amendment.
Phased elimination of two-tier annuity computation for surviving 
        spouses under Survivor Benefit Plan (sec. 644)
      The House bill contained a provision (sec. 641) that 
would phase in from October 2005 to March 2008 elimination of 
the Social Security offset under the Survivor Benefit Plan 
(SBP), and increase the annuities paid to survivors of military 
retirees who are 62 or older. The provision would also make 
corresponding adjustments to the SBP supplemental annuity 
program and require SBP annuities to be recalculated during 
October 2005, April 2006, April 2007, and April 2008.
      The Senate amendment contained a similar provision (sec. 
644) that would phase in from October 2005 to October 2014 
elimination of the Social Security offset under the SBP.
      The Senate recedes with an amendment that would eliminate 
the requirement that participating retirees continue to pay 
premiums for supplemental SBP coverage effective on the date of 
enactment of this Act. Retired members who choose supplemental 
SBP coverage during the open enrollment period, which would 
begin on October 1, 2005, would have their additional premium 
phased out from 2005 through 2008.
One-year open enrollment period for Survivor Benefit Plan commencing 
        October 1, 2005 (sec. 645)
      The House bill contained a provision (sec. 642) that 
would authorize an open enrollment period for retired members 
to participate in the Survivor Benefit Plan (SBP) or to 
increase the level of their participation if they were 
previously participating below the maximum allowed level. The 
provision would authorize the Secretary of Defense to require 
retirees who enroll to pay an additional premium not to exceed 
4.5 percent of the retiree's base amount.
      The Senate amendment contained a similar provision (sec. 
645) that would authorize an open enrollment period similar to 
that authorized by section 642 of the Strom Thurmond National 
Defense Authorization Act for Fiscal Year 1999 (Public Law 105-
261). The open enrollment period under the Senate amendment 
would last for one year beginning on October 1, 2005. The 
premium would be calculated based on the total amount of the 
premiums, plus interest, by which members' retired pay would 
have been reduced if they had elected to participate in the SBP 
at the first opportunity that they had been afforded.
      The House recedes with a clarifying amendment that would 
give eligible retirees during the open enrollment period the 
option of purchasing temporary supplemental SBP coverage that 
would be phased out by 2008 when the two-tier SBP system is 
terminated.

    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

Consolidation and reorganization of legislative provisions regarding 
        defense commissary system and exchanges and other morale, 
        welfare, and recreation activities (sec. 651)
      The House bill contained a provision (sec. 651) that 
would consolidate and reorganize a wide range of sections from 
title 10, United States Code, and related laws concerning 
commissaries, exchanges and other morale, welfare, and 
recreation activities. The provision would define the 
commissary benefit; specify criteria for establishment, sizing, 
and closure of commissaries; and address other commissary 
management matters.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would define 
commissary and exchange systems, and clarify that the purpose 
of the systems is to enhance the quality of life of members of 
the uniformed services, retired members, and dependents of such 
members; and to support military readiness, recruitment, and 
retention. The amendment would require the designation of a 
senior official to oversee both systems and an executive 
governing body to ensure complimentary operations of both 
systems. The amendment would authorize the Secretary of Defense 
to consider the quality of life of the Reserve components 
whenever assessing whether to close a commissary store, and 
would clarify that the closure of a commissary store at an 
installation not closing under a base closure law would not 
take effect until 90 days after the Secretary notifies Congress 
of the reasons for such closure.
      The amendment would authorize the Secretary to conduct a 
test program on the sale of telephone cards, film, and one-time 
use cameras. Within 90 days of the completion of one year of 
testing, the Secretary would report findings and 
recommendations to the Committees on Armed Services of the 
Senate and the House of Representatives. The amendment would 
require the report to include an analysis of the actual impact 
of the sale of such items on the exchange dividend and any 
recommendations for changes in legislation that may be 
necessary. The amendment would require the Comptroller General 
to conduct a study to evaluate the impact of the expansion of 
categories of merchandise authorized for sale in commissary 
stores and its impact on the exchange dividend.
      The conferees expect that the oversight body established 
by this Act will include military members. The conferees also 
expect that for items procured from the exchange, any revenue 
above the commissary purchase price of other merchandise items, 
shall be accounted for and allocated as if it were a uniform 
sales price surcharge. Finally, the conferees expect the 
Secretary to maintain the decor, format, and product selection 
in military commissaries consistent with modern grocery store 
norms.
Consistent State treatment of Department of Defense Nonappropriated 
        Fund Health Benefits Program (sec. 652)
      The House bill contained a provision (sec. 652) that 
would clarify that the Nonappropriated Fund Uniform Health 
Benefits Program of the Department of Defense is not subject to 
State, local and territorial taxes, fees, other monetary 
payment, or health plan mandates.
      The Senate amendment contained a similar provision (sec. 
1106).
      The Senate recedes with a technical amendment.

                       Subtitle F--Other Matters

Eligibility of members for reimbursement of expenses incurred for 
        adoption placements made by foreign governments (sec. 661)
      The Senate amendment contained a provision (sec. 652) 
that would amend section 1052(g) of title 10, United States 
Code, to include within the definition of ``qualified adoption 
agency'' a foreign government or an agency authorized by a 
foreign government to place children for adoption. Section 1052 
authorizes reimbursement of expenses for certain members of the 
Armed Forces who adopt children. Although that statute includes 
intercountry adoptions, the definition of qualified adoption 
agency does not include either foreign governments or agencies 
authorized by such governments to place children. Otherwise 
eligible members who adopt children while on duty outside the 
United States have been forced to re-adopt them through a 
domestic agency upon their return to the United States in order 
to be reimbursed. The provision would authorize reimbursement 
of expenses for such intercountry adoptions, if the child is 
either eligible for automatic United States citizenship or has 
been issued a certificate of citizenship under the Immigration 
and Nationality Act.
      The House bill contained no similar provision.
      The House recedes.
      The conferees expect that the Secretary of Defense will 
make the necessary adjustments, including extending the period 
allowed under regulations for filing for reimbursement, to 
accommodate members who are outside the United States on 
military orders.
Clarification of education loans qualifying for education loan 
        repayment program for Reserve component health professions 
        officers (sec. 662)
      The House bill contained a provision (sec. 662) that 
would clarify that college loans involving both a basic 
professional degree and graduate education would qualify for 
repayment under section 16302 of title 10, United States Code.
      The Senate amendment contained a similar provision (sec. 
619).
      The Senate recedes.
Receipt of pay by reservists from civilian employers while on active 
        duty in connection with a contingency operation (sec. 663)
      The Senate amendment contained a provision (sec. 1068) 
that would modify section 209 of title 18, United States Code, 
to permit a member of the Reserves on active duty pursuant to a 
call or order to active duty to receive payment of any part of 
the salary or wages that a civilian employer would have paid if 
the reservist's employment had not been interrupted by the 
order to active duty.
      The House bill contained no similar provision.
      The House recedes.
Relief for mobilized reservists from certain federal agricultural loan 
        obligations (sec. 664)
      The Senate amendment contained a provision (sec. 655) 
that would authorize forgiveness of interest payments due under 
section 1981f of title 7, United States Code, while borrowers 
are mobilized military reservists. The provision would also 
authorize deferral of principal payments due while or after 
borrowers are mobilized reservists, and direct that borrowers 
who receive assistance under this provision would not be 
considered to be delinquent or receiving debt forgiveness for 
purpose of receiving direct or guaranteed loans under title 7, 
United States Code.
      The House bill contained no similar provision.
      The House recedes.
Survey and analysis of effect of extended and frequent mobilization of 
        reservists for active-duty service on reservist income (sec. 
        665)
      The House bill contained a provision (sec. 663) that 
would require the Secretary of Defense to conduct a detailed 
study of the loss of income by mobilized reservists who have 
served on active-duty in support of a contingency operation 
following September 11, 2001.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment to ensure that 
allsources of income are reported by the member in response to the 
survey.
      The conferees believe that accurate information regarding 
loss of income is an important prerequisite to future 
congressional action, and acknowledge the need to better 
understand the impact of any such loss of income on members 
with skills in high demand for deployments.
Study of disability benefits for veterans of service in the Armed 
        Forces with service-connected disabilities (sec. 666)
      The conferees agree to a provision that would require the 
Secretary of Defense to conduct a study of the totality of all 
current and projected disability benefits that are available to 
disabled members and former members of the Armed Forces for 
service-connected disabilities. The study would compare the 
disability benefits for members of the Armed Forces with 
commercial and other private sector disability benefits plans, 
and identify the Department of Defense personnel policy changes 
needed to enhance the financial and nonfinancial benefits that 
are provided to members and former members of the Armed Forces 
for service-connected disabilities. The Secretary's report 
would include conclusions resulting from the study and 
recommended legislation to address the deficiencies in the 
system of Federal Government disability benefits for disabled 
members and former members of the Armed Forces.
      The provision would require the Comptroller General to 
study the disability benefits that are available for employees 
of the Federal, State and local governments, especially those 
provided for disabilities incurred in the performance of jobs 
in which employees perform tasks with risks that are similar to 
the risks associated with military service.

                   Legislative Provisions Not Adopted

Income replacement payments for Reserves experiencing extended 
        mobilization for active-duty service
      The House bill contained a provision (sec. 605) that 
would require the Secretary of Defense to pay involuntarily 
mobilized Reserve members on a monthly basis the amount 
necessary to replace the difference in income between their 
regular military compensation plus special pays and allowances 
and the average monthly income received by the member during 
the 12 months preceding the month in which the member was 
mobilized. Payments would be limited to a minimum of $50 each 
month and a maximum of $3,000 each month.
      The Senate amendment contained a provision (sec. 1110) 
that would amend chapter 55 of title 5, United States Code, to 
require federal agencies to pay any difference between military 
and civilian compensation for federal employees who, as members 
of the uniformed services or National Guard, were called to 
active-duty service in support of a national emergency since 
October 11, 2002.
      These provisions were not included in the conference 
report because funding was not appropriated for Reserve income 
replacement payments to either Reserve members or federal 
government agencies.
Increase in maximum monthly rate authorized for hardship duty pay
      The House bill contained a provision (sec. 613) that 
would increase from $300 to $750 the maximum amount of special 
pay that may be paid to members performing duty designated by 
the Secretary of Defense as hardship duty under section 305 of 
title 37, United States Code.
      The Senate amendment contained no similar provision.
      The House recedes.
Source of funds for Survivor Benefit Plan annuities for Department of 
        Defense beneficiaries over age 62
      The House bill contained a provision (sec. 643) that 
would direct that the payments made into the Department of 
Defense Military Retirement Fund, which is funding the 
increases in this Act, to the cost of the Survivor Benefit Plan 
would be made directly by the Secretary of the Treasury.
      The Senate amendment contained no similar provision.
      The House recedes.
Cooperation and assistance for qualified scouting organizations serving 
        dependents of members of the Armed Forces and civilian 
        employees overseas
      The House bill contained a provision (sec. 653) that 
would require that professional staff supporting both the Boy 
Scouts of America and the Girl Scouts of the United States of 
America in overseas areas be made non-appropriated fund 
employees of the United States and would clarify that 
appropriated funds may be used to pay the costs of the 
employees.
      The Senate amendment contained no similar provision.
      The House recedes.
Child care for children of members of Armed Forces on active duty for 
        Operation Enduring Freedom or Operation Iraqi Freedom
      The Senate amendment (sec. 654) would authorize the 
Secretary of Defense to provide funds, to the extent that funds 
are available for such purpose, to secure access to child care 
at State licensed child care and development programs in the 
private sector for members serving in Operation Enduring 
Freedom and Operation Iraqi Freedom, who are geographically 
disbursed and do not have practical access to a military child 
development center.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees acknowledge that the Department of Defense 
has authority under section 1798 of title 10, United States 
Code, to subsidize the cost of child and youth services in the 
private sector, and has initiated programs to provide 
affordable, quality child care and youth service options for 
families of activated Guard and Reserve members. Such 
initiatives include partnerships with civilian child care 
referral agencies, and the Department of Defense Military One 
Source referral services available to all members.
                   TITLE VII--HEALTH CARE PROVISIONS

               Subtitle A--Enhanced Benefits for Reserves

TRICARE coverage for members of Reserve components who commit to 
        continued service in the Selected Reserve after release from 
        active duty (sec. 701)
      The Senate amendment contained a provision (sec. 706) 
that would authorize TRICARE coverage for each member of the 
Ready Reserve while in a non-active duty status. The provision 
would authorize the same benefits for members of the Reserve 
components as a member on active duty or a dependent of an 
active-duty member, based on a premium payment by the member. 
The amount of the monthly premium required of the member would 
be 28 percent of the total amount determined by the Secretary 
of Defense as being reasonable for the TRICARE coverage. 
TRICARE coverage for Reserves in a non-active duty status would 
commence following expiration of transitional health care 
benefits authorized in section 1145, title 10, United States 
Code. The amendment would not extend TRICARE eligibility to 
federal employees entitled to Federal Employee Health Benefits 
Plan coverage under chapter 89 of title 5, United States Code.
      The House bill contained no similar provision.
      The House recedes with an amendment to authorize TRICARE 
coverage for Reserves in a non-active duty status for members 
of Reserve components called or ordered to active duty on or 
after September 11, 2001 in support of a contingency operation, 
and who commit to continued service in the Selected Reserve 
after release from active duty. For each period of 90 
consecutive days of extended active-duty service, the Reserve 
member would be entitled to one year of TRICARE coverage while 
in a non-active duty status under the TRICARE Standard option. 
The amendment would authorize one year of coverage for a member 
who is otherwise eligible but does not serve continuously on 
active duty for 90 days because of an injury, illness, or 
disease incurred or aggravated while deployed. The amendment 
would also require payment of a premium by the Reserve member 
equal to 28 percent of the total amount determined by the 
Secretary as being reasonable for TRICARE coverage, and 
execution by the member of a service agreement. The amendment 
would be in effect within 180 days of enactment of this Act, 
and would require the Secretary to take all necessary actions 
to ensure that members eligible for TRICARE coverage receive 
information on the opportunity to enter into such an agreement.
Comptroller General report on the cost and feasibility of providing 
        private health insurance stipends for members of the Ready 
        Reserves (sec. 702)
      The House bill contained a provision (sec. 702) that 
would require the Comptroller General to conduct a study on the 
cost and feasibility of providing a stipend to members of the 
Ready Reserves to offset the cost of continuing private health 
insurance when the member is on active duty for more than 30 
days.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Permanent earlier eligibility date for TRICARE benefits for members of 
        Reserve components and their dependents (sec. 703)
      The House bill contained a provision (sec. 703) that 
would make permanent the temporary authority for dependents of 
Reserve component members to obtain TRICARE benefits up to 90 
days before the date on which the member's period of active 
duty is to begin.
      The Senate amendment contained a similar provision (sec. 
702).
      The House recedes with a technical amendment.
Waiver of certain deductibles under TRICARE program for members on 
        active duty for a period of more than 30 days (sec. 704)
      The House bill contained a provision (sec. 704) that 
would authorize the waiver of certain deductibles required by 
certain TRICARE programs for dependents of certain Reserve 
component members who are called or ordered to active duty for 
a period of more than 30 days.
      The Senate amendment contained a similar provision (sec. 
703).
      The House recedes with a technical amendment.
Authority for payment by United States of additional amounts billed by 
        health care providers to activated Reserves (sec. 705)
      The House bill contained a provision (sec. 705) that 
would protect a dependent of a member of a Reserve component 
who is ordered to active duty for a period of more than 30 days 
in support of a contingency operation from paying a health care 
provider any amount above the TRICARE maximum allowable charge.
      The Senate amendment contained a similar provision (sec. 
704).
      The House recedes with a technical amendment.
Permanent extension of transitional health care benefits and addition 
        of requirement for pre-separation physical examination (sec. 
        706)
      The House bill contained a provision (sec. 706) that 
would make permanent the authority to provide Transition 
Assistance Medical Program benefits to service members and 
their dependents for up to 180 days following separation from 
active duty. The provision would require that eligibility for 
transition benefits would cease prior to the 180-day limit if 
the beneficiaries acquire employer-provided insurance. The 
provision would also limit outlays provided after January 1, 
2005, to not more than $170.0 million.
      The Senate amendment included a provision (sec. 705) that 
would make permanent the authority to provide transition 
benefits for 180 days following separation from active duty for 
certain Active and Reserve members. The provision would require 
that as part of such transitional health care coverage, each 
member shall undergo a comprehensive physical examination 
before separating from active-duty service.
      The House recedes with an amendment that would authorize 
the Secretary of Defense to prescribe in regulations the 
content of the physical provided to each member immediately 
before separation. The amendment would also authorize a waiver 
of the requirement for a physical examination if a member has 
undergone a physical examination within 12 months before the 
scheduled date of separation, and would require that a waiver 
may be granted only with the consent of the member and the 
member's unit commander.

                Subtitle B--Other Benefits Improvements

Opportunity for young child dependent of deceased member to become 
        eligible for enrollment in a TRICARE dental plan (sec. 711)
      The House bill contained a provision (sec. 711) that 
would permit certain young children, who are dependents of 
service members who die while on active duty, to enroll in the 
TRICARE dental insurance program, regardless of the dependent's 
dental plan enrollment status on the date of the service 
member's death. Many young children, due to their age, are not 
enrolled in the TRICARE dental plan.
      The Senate amendment contained a similar provision (sec. 
712).
      The House recedes.
Comptroller General report on provision of health, education, and 
        support services for Exceptional Family Member Program 
        enrollees (sec. 712)
      The House bill contained a provision (sec. 712) that 
would require the Comptroller General to evaluate the effect of 
the Exceptional Family Member Program on health and support 
services in selected civilian communities near military 
installations with a high concentration of Exceptional Family 
Member Program enrollees, and to submit a report to the 
Committees on Armed Services of the Senate and the House of 
Representatives no later than March 31, 2005.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would include 
in the Comptroller General's assessment an evaluation of 
education services, including early childhood intervention and 
special education services required by Exceptional Family 
Member Program enrollees. The amendment would also require the 
report to be submitted no later than one year after the date of 
enactment of this Act. The conferees specifically request that 
the report include an assessment of the services available for 
family members with autism.
Continuation of sub-acute care for transition period (sec. 713)
      The House bill contained a provision (sec. 714) that 
would allow the Secretary of Defense to extend previous 
benefits for part-time or intermittent home health care after 
the transition to new managed care contracts that result in a 
change of benefits.
      The Senate amendment contained a similar provision (sec. 
718).
      The House recedes.
Improvements to pharmacy benefits program (sec. 714)
      The House bill contained a provision (sec. 715) that 
would prohibit the prescription drug cost-sharing requirements 
for Medicare-eligible TRICARE beneficiaries from being in 
excess of the cost-sharing requirements applicable to non-
Medicare-eligible beneficiaries.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would authorize 
the Secretary of Defense to consider additional determinations 
by the Department of Defense Pharmacy and Therapeutics 
Committee of the relative clinical and cost-effectiveness of 
the agents for a preferred formulary status at military 
treatment facilities.
Professional accreditation of military dentists (sec. 715)
      The House bill contained a provision (sec. 716) that 
would allow the secretaries of the military departments to 
authorize the treatment of no more than 2,000 children under 
the age of 13 per year at certain military facilities offering 
residency training programs in oral and maxillofacial surgery 
and orthodontics.
      The Senate amendment contained a similar provision (sec. 
713).
      The House recedes with a technical amendment.
Temporary authority for waiver of collection of payments due for 
        CHAMPUS benefits received by disabled persons unaware of loss 
        of CHAMPUS eligibility (sec. 716)
      The House bill contained a provision (sec. 718) that 
would allow the Secretary of Defense to waive the collection of 
certain payments for health care services provided during a 
period of ineligibility between July 1, 1999 and December 31, 
2004 for beneficiaries under age 65 entitled to Medicare on the 
basis of disability or end stage renal disease. The waiver 
would apply to those beneficiaries who were unaware of their 
loss of eligibility to receive health benefits at the time they 
were received. The provision also required a quarterly report 
to Congress on efforts to identify such individuals and actions 
taken when individuals are determined to be ineligible.
      The Senate amendment contained a similar provision (sec. 
719) with no reporting requirement.
      The House recedes with a technical amendment.
Services of marriage and family therapists (sec. 717)
      The Senate amendment contained a provision (sec. 714) 
that would clarify that certified marriage and family 
therapists can serve as health care professionals under 
sections 1091 and 1094 of title 10, United States Code.
      The House bill contained no similar provision.
      The House recedes.
      The conferees clarify that the term ``marriage and family 
therapist'' includes masters-level prepared psychologists who 
are licensed in marriage and family therapy.
Chiropractic health care benefits advisory committee (sec. 718)
      The Senate amendment contained a provision (sec. 715) 
that would require the Secretary of Defense to establish a 
Chiropractic Health Care Benefits Advisory Committee to provide 
advice regarding the implementation of chiropractic benefits 
for active-duty members, and would require the Committee to 
meet no fewer than three times in each fiscal year beginning in 
2005.
      The House bill contained no similar provision.
      The House recedes with an amendment that would clarify 
that not less than three committee members appointed by the 
Secretary must be practicing representatives of the 
chiropractic health care profession. The amendment would also 
require that the Secretary submit a copy of the advisory 
committee report to the Committee on Armed Services of the 
Senate and the House of Representatives, including an 
explanation of the criteria used to determine full 
implementation of the current program, and views with regard to 
future implementation of chiropractic health care benefits.

           Subtitle C--Planning, Programming, and Management

Pilot program for health care delivery (sec. 721)
      The House bill contained a provision (sec. 721) that 
would authorize the Secretary of Defense to conduct a pilot 
program for health care delivery to test a model for future 
health care delivery systems at one or more military 
installations where the military population is expected to 
expand. The model would focus on coordinating and leveraging 
the use of existing health care resources, to include federal, 
state, local, and contractor assets, to meet increased health 
care requirements.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would authorize 
the Secretary to conduct a health care delivery pilot program 
at two or more military installations for the purpose of 
testing a model of health care delivery that builds cooperative 
health care arrangements between military installations and 
local and regional civilian health care systems.
      The conferees find that with increasing requirements to 
repair or replace aging military treatment facilities and 
potential realignment of forces, the Department of Defense will 
be challenged to find new ways of providing enhanced health 
care for beneficiaries entitled to military health care.
Study of provision of travel reimbursement to hospitals for certain 
        military disability retirees (sec. 722)
      The House bill contained a provision (sec. 722) that 
would require the Secretary of Defense to conduct a study of 
the feasibility and desirability of providing retirees with 
combat-related disabilities travel and transportation benefits 
to receive medical treatment at military hospitals for two 
years after their retirement. The provision would also require 
the Secretary to report the results of the study to the 
congressional defense committees by March 1, 2005.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would include 
all military disability retirees in the study.
Study of mental health services (sec. 723)
      The House bill contained a provision (sec. 723) that 
wouldrequire the Secretary of Defense to conduct a study of 
mental health services available to members of the Armed Forces, to 
include an evaluation of the availability and effectiveness of mental 
health treatment and screening resources for members before and after 
deployment, and for the families of deployed members. The provision 
would also require an assessment of obstacles that prevent members of 
the Armed Forces and their families from obtaining mental health 
services, as well as identification of mental health problems unique to 
members of the Reserve component.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Comptroller General to conduct the study and submit a 
report to Congress by March 31, 2005. The amendment would also 
require the report to include recommendations for removing any 
obstacles to obtaining mental health services for members of 
the Reserve component.
      The conferees support the recommendations made by the 
Army's Mental Health Advisory Team and direct the Secretary of 
the Army to provide a report by March 1, 2005, on the 
implementation of recommendations for providing mental health 
assistance to soldiers wanting help and educating soldiers on 
how to obtain help from forward-deployed mental health units.
Policy for timely notification of next of kin of members seriously ill 
        or injured in combat zones (sec. 724)
      The Senate amendment contained a provision (sec. 367) 
that would require the Secretary of Defense, not later than 120 
days after the date of enactment of this Act, to prescribe the 
policy for providing timely notification to the next of kin of 
the status, including health and location of members of the 
Armed Forces who are seriously ill or injured in a combat zone. 
The provision also authorized an increase of $10.0 million in 
research, development, test and evaluation funding for medical 
equipment and combat casualty care technologies.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
      The conferees honor the sacrifice of the members of the 
Armed Forces who have been killed or wounded while bravely 
serving in ongoing military operations and the heroic efforts 
of the medical personnel of the Armed Forces in treating 
wounded military personnel and civilians under combat 
conditions. In view of modern communications capabilities, the 
conferees believe the Department of Defense's current policies 
relating to notification of next of kin about service members 
who have been seriously wounded or are gravely ill must be 
revised to include appropriate standards aimed at ensuring 
timely and ongoing communication, consistent with the desires 
of individual service members.
      The conferees agree to an increase of $5.3 million for 
combat casualty care technologies, which is reflected in the 
tables for title II of this Act.
Revised funding methodology for military retiree health care benefits 
        (sec. 725)
      The House bill contained a provision (sec. 1541) that 
would revise the process for funding the annual payments that 
are required to be paid into the Department of Defense 
Medicare-Eligible Retiree Health Care Accrual Fund. Beginning 
in fiscal year 2006, the Secretary of the Treasury would make 
the annual payments from the general fund of the Treasury.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary of Defense to transmit certifications required 
under this Act to the Committees on Armed Services of the 
Senate and the House of Representatives immediately upon 
transmission to the Secretary of the Treasury.
      The conferees expect that the transmission of funding 
certifications will include all determinations by the Secretary 
of Defense concerning the amounts required for deposit into the 
Medicare-Eligible Retiree Health Care Accrual Fund beginning in 
fiscal year 2006.
Grounds for presidential waiver of requirement for informed consent or 
        option to refuse regarding administration of drugs not approved 
        for general use (sec. 726)
      The Senate amendment contained a provision (sec. 716) 
that would limit to national security interests the grounds on 
which the President could deny a service member the right to 
refuse an investigational new drug or product not approved for 
general use.
      The House bill contained no similar provision.
      The House recedes.
TRICARE program regional directors (sec. 727)
      The conferees agree to include a provision which would 
require the Secretary of Defense to develop and report to the 
Committees on Armed Services of the Senate and the House of 
Representatives by March 1, 2005 recommendations for a formal 
TRICARE Regional Director selection process. The selection 
process would require the Secretary of each military department 
to nominate one commissioned officer in a grade above colonel 
or, for the Navy in a grade above the grade of captain, or a 
member of the Senior Executive Service. The provision would 
require that the recommendations of the Secretary include the 
qualifications for Regional Directors, the period of assignment 
of a commissioned officer as a Regional Director and other 
requirements as prescribed by the Secretary.
      The conferees expect that, among other duties as 
prescribed by the Secretary, the TRICARE Regional Director will 
be responsible for ensuring the adequacy of the number and 
types of civilian TRICARE providers, both in civilian networks 
and those who participate in the TRICARE Standard program. The 
conferees expect that the Regional Director will consider the 
requirement for the availability of TRICARE Standard providers 
to support members of the Reserve components and their families 
who are eligible to participate in TRICARE Standard, as 
authorized elsewhere in this Act.

     Subtitle D--Medical Readiness Tracking and Health Surveillance

Medical readiness plan and Joint Medical Readiness Oversight Committee 
        (sec. 731)
      The Senate amendment contained a provision (sec. 1301) 
that would require the Secretary of Defense to develop a 
comprehensive plan to improve medical readiness, and Department 
of Defense tracking of the health status of members of the 
Armed Forces; and to strengthen medical readiness tracking 
before, during, and after deployment of members of the Armed 
Forces overseas. The provision would also require the 
establishment by the Secretary of a Joint Medical Readiness 
Oversight Committee to advise the Secretary of Defense on 
medical readiness and health status of the members of the 
Active and Reserve components of the Armed Forces and to 
oversee the development of the comprehensive medical readiness 
plan required elsewhere in this Act.
      The House bill contained no similar provision.
      The House recedes with an amendment to include the Vice 
Chiefs of the military services as members of the committee, 
and a requirement that each year, before the committee submits 
its report to Congress, that the Secretary shall provide an 
opportunity for representatives of veterans and military health 
advocacy organizations, and others the Secretary of Defense 
considers appropriate, to comment on the report. The amendment 
requires that the report submitted to Congress shall include a 
summary of the comments received and the Secretary's response 
to them.
      The conferees are concerned that a report published by 
the Comptroller General in September 2004, entitled ``DoD Needs 
to Address Long-term Reserve Force Availability and Related 
Mobilization and Demobilization Issues,'' continues to identify 
problems in the management of the health status of Reserve 
forces by the Department of Defense. The report finds that, 
``DoD's ability to effectively manage the health status of its 
reserve forces is limited because its centralized database has 
missing and incomplete health records and it has not maintained 
full visibility over reserve component members with medical 
problems.'' The conferees expect the committee and the 
comprehensive plan authorized in this Act to promptly address 
the ongoing issues identified by the Comptroller General for 
the Reserve component, as well as all those matters concerning 
medical readiness, health surveillance, and force health 
protection for both active-duty and Reserve components 
delineated in this Act.
Medical readiness of Reserves (sec. 732)
      The Senate amendment contained a provision (sec. 1302) 
that would require the Comptroller General to conduct a study 
of the health of members of the Reserve components who have 
been ordered to active duty in support of Operation Enduring 
Freedom and Operation Iraqi Freedom. The study would review the 
health and medical fitness of Reserves when they were ordered 
to active duty, the effects of their health status on planning 
and deployment schedules, and compliance by military personnel 
with Department of Defense policies on medical and physical 
fitness applicable to the reserve components. The provision 
would also require health assessments not less frequently than 
once every two years, using the pre-deployment health 
assessments required under section 1074f of title 10, United 
States Code, as the minimum standard. The provision would 
require the review of pre-deployment health assessments by a 
medical professional and any follow-up care that is required by 
the member. The Senate provision would further require 
improvement to the pre-deployment assessment form currently in 
use by the Department, and development of a uniform policy on 
deferral of medical treatment pending deployment to theaters of 
operations.
      The House bill contained no similar provision.
      The House recedes with an amendment to clarify that 
follow-up care and treatment provided to Reserve members is 
care that is otherwise authorized for medical and dental 
readiness.
Baseline health data collection program (sec. 733)
      The Senate amendment contained a provision (sec. 1303) 
that would require the Secretary of Defense to collect baseline 
health data from each person entering the Armed Forces, and to 
provide for the computerized compilation and maintenance of the 
data. The provision would also establish interim standards for 
blood sampling, not less than 60 days prior to deployment and 
not later than 30 days after the date on which the deployment 
ends.
      The House bill contained no similar provision.
      The House recedes with an amendment to require that blood 
samples be drawn not earlier than 120 days before the date 
ofdeployment. The amendment would require the application of interim 
standards for blood sampling unless the Joint Medical Readiness 
Oversight Committee established elsewhere in this Act recommends, and 
the Secretary approves, a different standard.
      The conferees expect that in the development of the 
health baseline data collection program required by this title, 
the Department of Defense will work jointly with the Department 
of Veterans Affairs to examine coding and terminology for all 
computerized medical data systems to ensure compatibility with 
those computerized medical data systems of the Department of 
Veterans Affairs. The conferees acknowledge that much progress 
has been made in achieving compatibility of medical information 
systems, both in the clinical setting, such as the Federal 
Health Information Exchange, and in support of field 
operational units, such as the Special Operations Forces Medics 
system. The conferees urge the Department of Defense to 
continue such efforts with the Department of Veterans Affairs, 
which are necessary to improve continuity of care.
Medical care and tracking and health surveillance in the theater of 
        operations (sec. 734)
      The Senate amendment contained a provision (sec. 1304) 
that would require the Secretary of Defense to establish a 
policy on health record keeping in the theater of operations, 
and to evaluate and report to Congress on the strengths and 
weaknesses and recommend changes to mandatory record keeping 
systems for military personnel in the theater. The report would 
also include a summary of scientific literature on blood 
sampling, and a recommendation for changes to regulations and 
standards for blood sampling. The provision would require that 
the Secretary develop a plan for obtaining all records of 
medical treatment provided to members of the Armed Forces by 
allies of the United States in Operation Enduring Freedom and 
Operation Iraqi Freedom. The provision would also require the 
Secretary to prescribe a policy on the collection and 
dissemination of in-theater individual personnel location data.
      The House bill contained no similar provision.
      The House recedes.
Declassification of information on exposures to environmental hazards 
        (sec. 735)
      The Senate amendment contained a provision (sec. 1305) 
that would require the Secretary of Defense to review and 
revise as appropriate the classification policies of the 
Department of Defense to facilitate the declassification of 
data that is potentially useful for monitoring and assessing 
the health of members of the Armed Forces who have been exposed 
to environmental hazards during overseas deployments.
      The House bill contained no similar provision.
      The House recedes.
Report on training on environmental hazards (sec. 736)
      The Senate amendment contained a provision (sec. 1306) 
that would require a report by the Secretary of Defense to the 
Committees on Armed Services of the Senate and the House of 
Representatives on the training on environmental hazards that 
is provided by the Armed Forces to medical personnel who are 
deployed to the field in support of combat personnel. The 
provision would also require a report to congressional defense 
committees on actions taken by Department of Defense officials 
in response to health concerns expressed by members of the 
Armed Forces during post-deployment health assessments.
      The House recedes with an amendment to remove the 
reporting requirement on actions taken by Department officials 
in response to health concerns expressed by members of the 
Armed Forces during post-deployment health assessments from 
this provision.
      The conferees intend that the report required by this 
provision on actions taken by Department officials to health 
concerns expressed by members of the Armed Forces during post-
deployment health assessments will be addressed by a reporting 
requirement elsewhere in this Act.
Uniform policy for meeting mobilization-related medical care needs at 
        military installations (sec. 737)
      The Senate amendment contained a provision (sec. 1307) 
that would require the Secretary of Defense to prescribe 
through regulations a policy to ensure that anticipated health 
needs of members of the Armed Forces at mobilization 
installations can be met at those installations. The policy 
would include procedures for arrangements for health care 
provided by the Secretary of Veterans Affairs, services of 
local health care providers, and temporary employment of health 
care personnel at such installations.
      The House bill contains no similar amendment.
      The House recedes with an amendment to clarify the 
definition of the term military installation, and to require 
the Secretary of Defense to establish a uniform policy through 
the secretaries concerned and military command structure for 
meeting anticipated health needs at mobilization installations.
Full implementation of Medical Readiness Tracking and Health 
        Surveillance Program and Force Health Protection and Readiness 
        Program (sec. 738)
      The Senate amendment contained a provision (sec. 1308) 
that would require the Secretary of Defense, acting through the 
Under Secretary of Defense for Personnel and Readiness and in 
conjunction with the secretaries of the military departments, 
to fully implement at all levels the Medical Readiness Tracking 
and Health Surveillance Program under this title, and the Force 
Health Protection and Readiness Program of the Department of 
Defense.
      The House recedes.
Reports and Internet accessibility relating to health matters (sec. 
        739)
      The Senate amendment contained a provision (sec. 1309) 
that would require the Secretary of Defense to submit annually 
to the Committees on Armed Services of the Senate and the House 
of Representatives a report on the Force Health Protection 
Quality Assurance Program. The provision would require that the 
report include an audit of the extent to which the serum 
samples required to be obtained from members of the Armed 
Forces before and after deployment are stored in the serum 
repository of the Department of Defense, and an audit of the 
extent to which health assessments required before and after 
deployment are being maintained in the electronic database of 
the Defense Medical Surveillance System.
      The provision would also require that the annual report 
to the congressional defense committees include an analysis of 
actions taken by the Department to respond to health concerns 
expressed by members of the Armed Forces upon return from a 
deployment, and an analysis of actions taken by Department 
personnel to evaluate or treat members of the Armed Forces who 
are confirmed to have been exposed to occupational or 
environmental hazards deleterious to their health during a 
deployment.
      The provision would include a requirement for an annual 
report on compliance by the military departments with 
Department policy on recording of health assessment data in 
military health records. The provision would also require that 
the Chief Information Officer of each military department 
ensure that information on Department policies regarding pre-
deployment and post-deployment health policies are available 
through an online portal website of that military department.
      The House bill contains no similar amendment.
      The House recedes with an amendment to remove the 
requirement for a report on actions taken by the Department to 
evaluate or treat former members of the Armed Forces who are 
confirmed to have been exposed to occupational or environmental 
hazards during deployment. The amendment would also clarify 
that health assessment data required in section 1074(f) of 
title 10, United States Code, would be recorded in military 
health records.

                   Legislative Provisions Not Adopted

Demonstration project on health benefits for Reserves
      The House bill contained a provision (sec. 701) that 
would require the Secretary of Defense to conduct a three-year 
demonstration project to provide TRICARE coverage for Ready 
Reserve members not on active duty who are ineligible for 
employer-sponsored health benefits. The purpose of the 
demonstration would be to determine whether such coverage 
enhances medical readiness, recruiting, and retention of 
Reserve component members.
      The Senate amendment contained a provision (sec. 701) 
that would direct the Secretary to carry out a demonstration 
project under section 1092 of title 10, United States Code, to 
determine the need for, and feasibility of, providing benefits 
under TRICARE to members of the Ready Reserve who are eligible 
for unemployment compensation, continuously unemployed after 
the expiration of such compensation, or ineligible for 
employer-provided health care coverage.
      The conference agreement does not include these 
provisions.
      The conferees acknowledge the preference of the Secretary 
to conduct a demonstration project and expect the Secretary to 
proceed with a demonstration project to assess the feasibility 
and effectiveness of providing TRICARE benefits to Reserve 
members without employer-provided health insurance coverage 
using existing authority in section 1092 of title 10, United 
States Code. The conferees request that the Comptroller General 
include in the evaluation of the needs of Reserves for health 
care required by section 705 of the National Defense 
Authorization Act for Fiscal Year 2004 (Public Law 108-136) a 
report on actions taken by the Department to prepare for a 
demonstration project on the feasibility of providing TRICARE 
benefits to Reserve members without employer-provided health 
insurance.
Continuation of non-TRICARE health benefits plan coverage for certain 
        Reserves called or ordered to active duty and their dependents
      The Senate amendment contained a provision (sec. 707) 
that would direct the Secretary of Defense to pay private 
health insurance premiums for the dependents of a Reserve 
member ordered to extended active duty and who would then not 
be eligible for TRICARE.
      The House bill contained no similar provision.
      The Senate recedes.
Exceptional eligibility for TRICARE Prime Remote
      The House bill contained a provision (sec. 713) that 
would authorize the Secretary of Defense to waive all 
restrictions with regard to TRICARE Prime Remote medical 
coverage for active-duty family members that reside at a remote 
location without regard to the sponsor's current or past 
assignment. Such a waiver would occur if the Secretary 
determines that exceptional circumstances warrant such 
coverage.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees believe that there exist today situations 
of extreme hardship for beneficiaries, particularly minor 
children, caused by exceptional circumstances through no fault 
of their own and beyond their control. The conferees urge the 
Secretary to look within existing authorities for means to 
remedy these extreme circumstances. If existing authorities do 
not allow for such remedy, the Secretary shall submit to 
Congress recommendations to address such exceptional 
situations.
Addition of certain unremarried former spouses to persons eligible for 
        dental insurance plan of retirees of the uniformed services
      The House bill contained a provision (sec. 717) that 
would permit certain unremarried former spouses of a member or 
former member to participate in the TRICARE Retiree Dental 
Program, if they do not have dental coverage under an employer-
sponsored health plan.
      The Senate amendment contained no similar provision.
      The House recedes.
Vaccine Healthcare Centers Network
      The Senate amendment contained a provision (sec. 720) 
that would require the Secretary of Defense to establish the 
Vaccine Healthcare Centers Network for the purpose of 
monitoring adverse reactions of members of the Armed Forces to 
vaccines and, in addition, to improve the safety and quality of 
vaccine administration for members of the Armed Forces.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees acknowledge that the Vaccine Healthcare 
Centers in existence today have made contributions to the 
quality monitoring system for adverse reactions to anthrax and 
smallpox immunization programs conducted by the Department of 
Defense. The Secretary should examine the feasibility and 
necessity of the establishment of an expanded Vaccine 
Healthcare Centers Network in the context of a review of the 
adequacy of existing clinical immunization safety, educational, 
training and research programs for military members and 
providers involved in immunization of military service members. 
The Secretary should also make recommendations on improvements 
as necessary in submission of data to the Vaccine-related 
Events Reporting System, and access to clinical management 
services for members who experience vaccine adverse events.
      The conferees strongly encourage each of the military 
departments to continue to provide funds required by the 
existing Vaccine Healthcare Centers based on each service's 
share of the total force vaccinated.
Use of Department of Defense funds for abortion
      The Senate amendment contained a provision (sec. 721) 
that would authorize the use of Department of Defense funds for 
abortions in cases in which a pregnancy occurred as a result of 
an act of rape or incest.
      The House bill contained no similar provision.
      The Senate recedes.
United States Military Cancer Institute
      The Senate amendment contained a provision (sec. 914) 
that would establish a United States Military Cancer Institute 
within the Uniformed Services University of the Health 
Sciences. The institute would conduct research on the causes, 
prevention, and early detection of cancer, including 
epidemiological features of cancer and impact of genetic and 
environmental factors and disparities in health among 
populations of various ethnic origins. The research would also 
include research on oncologic nursing.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees acknowledge that the United States Military 
Cancer Institute continues to operate under the auspices of the 
Uniformed Services University of the Health Sciences, and has 
received appropriations since fiscal year 2002. The conferees 
commend the United States Military Cancer Institute for its 
worthy contributions to cancer research, prevention, and 
treatment.
Use of civilian experts as consultants
      The Senate amendment contained a provision (sec. 1310) 
that would clarify that nothing contained in amendments to this 
title should be construed to limit the authority of the 
Secretary of Defense to procure the services of experts outside 
the Federal Government for performing any function to comply 
with requirements for readiness tracking and health 
surveillance.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees expect that the Secretary will use existing 
authority to procure the services of outside experts as needed 
for any of the requirements of this title.
  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

                     Legislative Provisions Adopted

             Subtitle A--Acquisition Policy and Management

Software-related program costs under major defense acquisition programs 
        (sec. 801)
      The Senate amendment contained a provision (sec. 802) 
that would modify existing quarterly acquisition reports 
submitted to Congress by the Secretary of Defense to include 
information on significant changes in the cost, schedule, or 
performance of the computer software component of each major 
defense acquisition program.
      The House bill contained no similar provision.
      The House recedes with an amendment that would delay the 
effective date of the provision.
Internal controls for Department of Defense procurements through 
        General Services Administration Client Support Centers (sec. 
        802)
      The Senate amendment contained a provision (sec. 803) 
that would prohibit Department of Defense officials from 
placing orders in excess of $100,000 through a Client Support 
Center (CSC) of the Federal Technology Service of the General 
Services Administration (GSA) until the Department Inspector 
General, in consultation with the GSA Inspector General, 
determines that the CSC has in place the policies, procedures, 
and internal controls necessary to ensure compliance with 
requirements of law and regulation.
      The House bill contained no similar provision.
      The House recedes with an amendment that would: (1) 
extend the time frame for Inspector General review of the 
policies, procedures, and internal controls of the GSA Client 
Support Centers; (2) permit the Department to continue 
contracting for an additional year with any CSC that is making 
significant progress toward implementing effective policies, 
procedures, and internal controls; (3) require a second 
Inspector General review and determination at the end of the 
additional year; and (4) authorize the Under Secretary of 
Defense for Acquisition, Technology and Logistics to continue 
contracting through a CSC that has failed to implement 
appropriate policies, procedures, and internal controls, if he 
determines that it is necessary to do so in the interest of the 
Department.
Defense commercial communications satellite services procurement 
        process (sec. 803)
      The Senate amendment contained a provision (sec. 804) 
that would require the Secretary of Defense to review 
alternative mechanisms for procuring commercial satellite 
services, and provide guidance to the Director of the Defense 
Information Services Agency and the secretaries of the military 
departments on how such procurements should be conducted.
      The House bill contained no similar provision.
      The House recedes with an amendment that would modify the 
reporting requirement, and require a 30 day waiting period 
after the submission of the report during which the Secretary 
could not enter into a new contract for commercial satellite 
services unless the Secretary determines that such a contract 
is required to meet urgent national security requirements.
Contractor performance of acquisition functions closely associated with 
        inherently governmental functions (sec. 804)
      The Senate amendment contained a provision (sec. 867) 
that would limit contracting for functions closely associated 
with inherently governmental functions unless the Secretary of 
Defense determines that: (1) appropriate military or civilian 
personnel are not available to perform such function; (2) 
appropriate military or civilian personnel are able to 
supervise and perform all inherently governmental functions; 
and (3) the contractor to perform the function does not have an 
organizational conflict of interest or the appearance of an 
organizational conflict of interest.
      The House bill contained no similar provision.
      The House recedes with an amendment that would clarify 
the applicability of the provision, and require the agency to 
address any potential contractor organizational conflict of 
interest consistent with subpart 9.5 of part 9 of the Federal 
Acquisition Regulation and the best interest of the Department 
of Defense.
Sustainment plans for existing systems while replacement systems are 
        under development (sec. 805)
      The House bill contained a provision (sec. 821) that 
would require the Department of Defense to plan and budget for 
the sustainment and modernization of current military systems 
until such time that the replacement system under development 
is fielded and assumes responsibility for the mission.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would clarify 
the requirements of the provision and delete annual review and 
reporting requirements.
Applicability of competition exceptions to eligibility of National 
        Guard for financial assistance for performance of additional 
        duties (sec. 806)
      The Senate amendment contained a provision (sec. 863) 
that would clarify that exceptions to competition requirements 
provided in the Competition in Contracting Act (10 U.S.C. 
2304), apply to support activities provided by the Army 
National Guard under the authority of section 113(b) of title 
32, United States Code.
      The House bill contained no similar provision.
      The House recedes.
Inflation adjustment of acquisition-related dollar thresholds (sec. 
        807)
      The House bill contained a provision (sec. 807) that 
would authorize the Federal Acquisition Regulatory Council to 
amend the dollar threshold of procurement statutes in 
accordance with inflationary rates in order to maintain the 
constant dollar value of the threshold. This section would not 
authorize adjustments to the Davis-Bacon Act (40 U.S.C. 
276(a)), the Service Contract Act of 1965 (Public Law 89-286), 
or title III of the Trade Agreements Act of 1979 (Public Law 
96-39).
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would: (1) 
codify the provision in the Office of Federal Procurement 
Policy Act; (2) make adjustment to acquisition thresholds 
mandatory rather than discretionary to ensure that all 
thresholds are adjusted in the same way; (3) establish a 
petition process for thresholds omitted by the Federal 
Acquisition Regulatory Council; (4) supercede other inflation 
adjustment statutes to ensure there is no conflicting 
authority; and (5) address procurement thresholds enacted in 
law after October 1, 2000.

Subtitle B--Amendments to General Contracting Authorities, Procedures, 
                            and Limitations

Rapid acquisition authority to respond to combat emergencies (sec. 811)
      The House bill contained a provision (sec. 801) that 
would authorize the Secretary of Defense to establish a 
streamlined acquisition process for use when combat fatalities 
have occurred, the combatant commander has an urgent need of 
equipment, and delay would cause a continuation of combat 
fatalities. This process is to be used as a `quick start' 
bridge to the normal acquisition process.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would 
incorporate the new authority into section 806 of the Bob Stump 
National Defense Authorization Act for Fiscal Year 2003 (Public 
Law 107-314), provide for waivers to be made on a case-by-case 
basis, and clarify that a program initiated under this 
authority must transition to the traditional acquisition 
process within two years.
Defense acquisition workforce improvements (sec. 812)
      The House bill contained a provision (sec. 802) that 
would amend various sections of the Defense Acquisition 
Workforce Improvement Act, chapter 87 of title 10, United 
States Code.
      The Senate amendment contained a similar provision (sec. 
842).
      The House recedes with an amendment that would: (1) 
clarify the selection criteria for the acquisition corps and 
for critical acquisition positions; and (2) streamline the 
provision addressing scholarship program requirements.
Period for multiyear task and delivery order contracts (sec. 813)
      The House bill contained a provision (sec. 803) that 
would amend section 2304(a) of title 10, United States Code, to 
clarify time limitations for options in task and delivery order 
contracts.
      The Senate amendment contained a similar provision (sec. 
812).
      The House recedes with an amendment to limit the base 
period of a task and delivery order contract to five years, 
with options for up to an additional five years, for a total 
period of not more than ten years. Task and delivery order 
contracts may have more than five option years, if the head of 
an agency determines in writing that exceptional circumstances 
necessitate a longer contract period.
Funding for contract ceilings for certain multiyear procurement 
        contracts (sec. 814)
      The House bill contained a provision (sec. 804) that 
wouldamend section 2306b(g) and section 2306c(d) of title 10, 
United States Code, to require the head of the agency concerned to 
provide written notification to the congressional defense committees in 
those instances when cancellation costs that are above $100.0 million 
are not fully funded. The written notification would include a 
financial risk assessment for not fully funding the cancellation 
ceiling.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would not 
require the head of the agency to identify up-front funding 
sources for potential contract cancellation.
Increased threshold for senior procurement executive approval of use of 
        procedures other than competitive procedures (sec. 815)
      The Senate amendment contained a provision (sec. 811(a)) 
that would raise from $50.0 million to $75.0 million the 
threshold in section 2304(f)(1)(B)(iii) of title 10, United 
States Code, for requiring approval of the senior procurement 
executive of an agency to award contracts under other than 
competitive procedures.
      The House bill contained no similar provision.
      The House recedes.
      Section 811(b) of the Senate amendment is addressed 
elsewhere in this conference report.
Increased threshold for applicability of requirement for defense 
        contractors to provide information on subcontracting authority 
        of contractor personnel to cooperative agreement holders (sec. 
        816)
      The House bill contained a provision (sec. 805) that 
would increase from $500,000 to $1.0 million the threshold in 
section 2416(d) of title 10, United States Code, at which 
contractors must provide to cooperative agreement holders a 
listing of the names and contact information of each contractor 
employee who has authority to enter into contracts, including 
subcontracts.
      The Senate amendment contained a similar provision (sec. 
811(b)).
      The Senate recedes.
      Section 811(a) of the Senate amendment is addressed 
elsewhere in this conference report.
Extension of authority for use of simplified acquisition procedures 
        (sec. 817)
      The House bill contained a provision (sec. 806) that 
would amend section 4202(e) of the Clinger-Cohen Act of 1996 
(Public Law 104-106) by extending until October 1, 2009, the 
time frame in which the secretary of an executive agency may 
use simplified procedures to purchase commercial items that 
have a value of $5.0 million or less.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would extend 
this authority for two years.
Submission of cost or pricing data on noncommercial modifications of 
        commercial items (sec. 818)
      The Senate amendment contained a provision (sec. 813) 
that would require contractors for Department of Defense 
contracts to submit cost or pricing data on noncommercial 
modifications to commercial items, if the modifications are 
expected to cost in excess of $500,000.
      The House bill contained no similar provision.
      The House recedes with an amendment that would modify the 
requirement to apply to noncommercial modifications that are 
expected to cost in excess of $500,000 or five percent of the 
total price of the contract, whichever is greater.
Delegations of authority to make determinations relating to payment of 
        defense contractors for business restructuring costs (sec. 819)
      The Senate amendment contained a provision (sec. 814) 
that would permit the Secretary of Defense to delegate below 
the level of an Assistant Secretary of Defense the authority to 
pay defense contractors for restructuring costs associated with 
business combinations in cases where the amount of 
restructuring costs over a five year period is expected to be 
under $25.0 million. In no case could this authority be 
delegated below the Director of the Defense Contract Management 
Agency.
      The House bill contained no similar provision.
      The House recedes.
Availability of Federal supply schedule supplies and services to United 
        Service Organizations, Incorporated (sec. 820)
      The Senate amendment contained a provision (sec. 870) 
that would clarify that the Secretary of Defense may provide 
the United Service Organizations access to the Federal Supply 
Schedule of the General Services Administration.
      The House bill contained no similar provision.
      The House recedes.
Addition of landscaping and pest control services to list of designated 
        industry groups participating in the small business 
        competitiveness demonstration program (sec. 821)
      The House bill contained a provision (sec. 3601) that 
would add landscaping and pest control services to the list of 
designated industry groups participating in the small business 
competitiveness demonstration program.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Increased thresholds under special emergency procurement authority 
        (sec. 822)
      The conferees agree to include a provision that would 
increase the dollar thresholds below which the Department of 
Defense may use streamlined acquisition procedures for 
purchases outside the United States in support of a contingency 
operation or to facilitate the defense against or recovery from 
nuclear, biological, chemical, or radiological attack against 
the United States. The provision included in the conference 
report would raise the simplified acquisition threshold for 
such purchases from $500,000 to $1,000,000 and it would raise 
the micropurchase threshold for such purchases from $15,000 to 
$25,000.

      Subtitle C--United States Defense Industrial Base Provisions

Defense trade reciprocity (sec. 831)
      The House bill contained a provision (sec. 811) that 
would limit the ability of the Secretary of Defense to purchase 
defense items from countries that impose offset regulations or 
policies on purchases of defense items from the United States.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary of Defense to develop a defense acquisition trade 
policy designed to eliminate any adverse impact of offset 
agreements in defense trade.
Assessment and report on the acquisition of polyacrylonitrile (PAN) 
        carbon fiber from foreign sources (sec. 832)
      The House bill contained a provision (sec. 813) that 
would require the Secretary of Defense to delay phasing out of 
the restriction of acquisition of polyacrylonitrile (PAN) 
carbon fiber from foreign sources for three years.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would delay the 
phase out of the domestic source restriction for PAN carbon 
fibers for 30 days after the Secretary of Defense provides to 
the Committees on Armed Service of the Senate and the House of 
Representatives a report on an assessment of the domestic and 
international industrial structure that produces PAN carbon 
fibers and market trends for the product.

        Subtitle D--Extensions of Temporary Program Authorities

Extension of mentor-protege program (sec. 841)
      The Senate amendment contained a provision (sec. 822) 
that would extend for five years the pilot Mentor-Protege 
program established by section 831 of the National Defense 
Authorization Act for Fiscal Year 1991 (Public Law 101-510).
      The House amendment contained no similar provision.
      The House recedes with an amendment requiring a review of 
the implementation and effectiveness of the Mentor-Protege 
program.
Amendment to mentor-protege program (sec. 842)
      The Senate amendment contained a provision (sec. 1083) 
that would permit HUBZone small business concerns and small 
business concerns owned and controlled by service-disabled 
veterans to participate in the Department of Defense's Mentor-
Protege program.
      The House bill contained no similar provision.
      The House recedes.
Extension of test program for negotiation of comprehensive small 
        business subcontracting plans (sec. 843)
      The Senate amendment contained a provision (sec. 823) 
that would extend for five years the test program for 
negotiation of comprehensive small business subcontracting 
plans established by section 834 of the National Defense 
Authorization Act for Fiscal Years 1990 and 1991 (Public Law 
101-189). Under the test program, prime contractors may submit 
a plan designed to provide the maximum subcontracting 
opportunity for small, disadvantaged, and women-owned small 
business concerns that covers all anticipated contracts on a 
plant, division, or corporate basis, rather than for each 
Federal contract and subcontract of more than $500,000 (or $1.0 
million in the case of construction contracts) awarded as 
required under section 8(d) of the Small Business Act (Public 
Law 85-536, as amended).
      The House bill contained no similar provision.
      The House recedes.
Extension of pilot program on sales of manufactured articles and 
        services of certain Army industrial facilities (sec. 844)
      The Senate amendment contained a provision (sec. 824) 
that would extend for five years the pilot program for the sale 
of manufactured articles and services from Army industrial 
facilities enacted in the National Defense Authorization Act 
for Fiscal Year 1998 (Public Law 105-85). This program tests 
the efficiency and appropriateness of selling manufactured 
articles and services at Army facilities under the authority of 
section 4543 of title 10, United States Code, without regard to 
the availability of the articles and services from U.S. 
commercial sources.
      The House bill contained no similar provision.
      The House recedes.

                 Subtitle E--Other Acquisition Matters

Review and demonstration project relating to contractor employees (sec. 
        851)
      The House bill contained a provision (sec. 822) that 
would require the Secretary of Defense to conduct a review of 
Department of Defense policies, procedures, and practices 
relating to employees of defense contractors and their 
subcontractors. The provision also require the Secretary to 
conduct a demonstration program for the procurement of military 
construction, renovation, maintenance or repair service on 
military installations to ensure employees are properly 
authorized to be employed in the United States and properly 
qualified to perform the services required under the contract.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would give the 
Secretary of Defense general discretion over the types of 
procurement procedures used in the demonstration project.
Inapplicability of certain fiscal laws to settlements under special 
        temporary contract closeout authority (sec. 852)
      The Senate amendment contained a provision (sec. 861) 
that would clarify the authority to settle financial accounts 
for old contracts that have unreconciled balances of less than 
$100,000 under section 804 of the National Defense 
Authorization Act for Fiscal Year 2004 (Public Law 108-136).
      The House bill contained no similar provision.
      The House recedes.
Contracting with employers of persons with disabilities (sec. 853)
      The Senate amendment contained a provision (sec. 868) 
that would provide for the continuation and completion of 
existing contracts (including any options) awarded to the blind 
and severely disabled for the operation of military troop 
dining facilities, military mess halls, and other similar 
military dining facilities.
      The House bill contained no similar provision.
      The House recedes with an amendment that would cover 
contracts awarded under the Randolph-Sheppard Act (28 U.S.C. 
107).
Defense procurements made through contracts of other agencies (sec. 
        854)
      The Senate amendment contained a provision (sec. 815) 
that would prohibit the Department of Defense from paying more 
than a 1 percent service charge for using other agency 
contracts to purchase goods and services.
      The House bill contained no similar provision.
      The House recedes with an amendment that would delete the 
prohibition on paying fees in excess of 1 percent of the amount 
charged by the contractor and substitute: (1) a requirement 
that the procurement is done in accordance with military 
department or defense agency procedures for reviewing and 
approving the use of non-Department contracts; and (2) a 
reporting requirement for all service charges imposed on 
purchases in amounts greater than the simplified acquisition 
threshold in fiscal years 2005 and 2006. Approvals of inter-
agency transactions under this provision should be in writing, 
with supporting rationale, and retained in an official file.
      The conferees expect the Department's review and approval 
procedures to ensure that any fees are reasonable in relation 
to the work actually performed by the contracting agency. The 
conferees do not believe that the Department should pay fees in 
excess of 1 percent to an outside agency that merely acts as a 
conduit for Department requirements. The conferees are 
particularly concerned that in some instances, the Department's 
orders appear to have been awarded to contractors who charge 
their own fees for directing the work to preferred 
subcontractors without providing any value added.
      The conferees also expect the Department's review and 
approval procedures to ensure that the goods or services to be 
procured are within the scope of the non-Department contract 
vehicle, and that the supplies or services to be acquired 
areconsistent with the appropriated funding to be utilized. In 
addition, the Department's review and approval procedures should ensure 
that orders placed against non-Department contracts are in compliance 
with all applicable Department-unique statutes, regulations, 
directives, and other requirements prior to approval. The use of 
multiple award contracts must be consistent with the requirements of 
section 803 of the National Defense Authorization Act for Fiscal Year 
2002 (Public Law 107-107 (Competition Requirements for Purchase of 
Services Pursuant to Multiple Award Contracts)); Part 8.002 of the 
Federal Acquisition Regulation (Priorities for Use of Government Supply 
Sources); Part 17.5 of the Federal Acquisition Regulation (Interagency 
Acquisitions under the Economy Act); and the Department of Defense 
Instruction 4000.19 (Interservice and Intergovernmental Support). 
Purchases of information technology should also be consistent with 
Department information security requirements and the requirements of 
the Department business system enterprise architecture and transition 
plan. Officials should be familiar with the requirements of the basic 
contract and should provide to the assisting agency any Department-
unique requirements associated with the acquisition.
Requirements relating to source selection for integrated support of 
        aerial refueling aircraft fleet for the Air Force (sec. 855)
      The Senate amendment contained a provision (sec. 871) 
that would require the Secretary of Defense to prevent the 
Secretary of the Air Force from proceeding with the acquisition 
of aerial refueling aircraft, by lease or other contract, 
either with full and open competition or under section 135 of 
the National Defense Authorization Act for Fiscal Year 2004 
(Public Law 108-136) until 60 days after the Secretary of 
Defense has reviewed applicable documentation and submitted a 
determination to the congressional defense committees that the 
acquisition is in compliance with all currently applicable 
laws, Office of Management and Budget circulars, and 
regulations. The provision would also require an independent 
review of the acquisition by the Comptroller General and the 
Inspector General of the Department of Defense. The provision 
would also require operational testing prior to proceeding 
beyond low-rate initial production of the aircraft. The 
provision would also require a competition for the integrated 
support of the aircraft, and require pricing information with 
respect to commercial items covered by the lease or contract. 
The provision would also require the Secretary of the Air Force 
to contact the Inspector General of the Department of Defense 
to review and approve any Air Force use of non-Federal audit 
services for any lease or other contract for the acquisition of 
aerial refueling aircraft.
      The House bill contained no similar provision.
      The House recedes with an amendment to require the 
Department to review the costs and benefits of using federal 
employees or contractors for the logistics support of any new 
tanker aircraft and, if the Air Force chooses to use a 
contractor for this support, that any such contract be 
conducted under the procedures of the Competition in 
Contracting Act.
      The conferees understand that the Department is working 
on a new aerial refueling validated capabilities document in 
accordance with applicable Chairman of Joint Chiefs 
Instructions. The conferees also note that on February 24, 
2004, the Acting Undersecretary of Defense for Acquisition, 
Technology and Logistics directed the Secretary of the Air 
Force to conduct an analysis of alternatives (AOA) for 
recapitalizing the KC-135 fleet as required by section 134(b) 
of the National Defense Authorization Act for Fiscal Year 2004 
(Public Law 108-136), and that the Secretary of Defense has 
directed that this analysis, along with a completed aerial 
refueling portion of the mobility capabilities study be 
accelerated. In addition, at the direction of the Secretary, 
the National Defense University, the Defense Science Board and 
the Department of Defense Inspector General prepared 
independent evaluations on various aspects of the aerial tanker 
refueling issue. The conferees expect that the Secretary of 
Defense will fully consider all of the recommendations from 
these studies and reports prior to proceeding with the 
acquisition of aerial refueling aircraft for the Air Force.

                   Legislative Provisions Not Adopted

Responsibilities of acquisition executives and chief information 
        officers under the Clinger-Cohen Act
      The Senate amendment contained a provision (sec. 801) 
that would require that the Clinger-Cohen Act requirements as 
applied to weapons and weapon systems be administered by senior 
acquisition executives of the three military services and 
overseen by a board of senior acquisition officials.
      The House bill contained no similar provision.
      The Senate recedes.
      The Clinger-Cohen Act (40 U.S.C. 113) establishes 
requirements for capital planning, investment control, and 
performance and results-based management processes in the 
acquisition of information technology. While the Clinger-Cohen 
Act designates that the Chief Information Officer (CIO) is 
responsible for information technology in general, the Act does 
not specify who within the Department of Defense is responsible 
for administering these requirements for information technology 
embedded in major weapon systems. The Department's current 
practice is to administer the requirements of the Clinger-
CohenAct through the Department's CIO, even for information technology 
embedded in major weapon systems that are acquired by senior 
acquisition executives of the military departments. This approach 
raises the possibility of overlapping responsibilities and inefficient 
and/or duplicative procedures for the acquisition of information 
technology embedded in major weapon systems.
      Therefore, the conferees direct the Secretary of Defense 
to review the Department's current approach to implementing the 
requirements of the Clinger-Cohen Act with respect to 
information technology embedded in major weapon systems; the 
conferees also direct the Secretary to identify any overlapping 
responsibilities and inefficient and/or duplicative procedures 
arising from possible dual responsibilities of the CIO and 
senior acquisition executives for the acquisition of such 
information systems. The conferees further direct the Secretary 
to report to the congressional defense committees and the 
Committee on Governmental Affairs of the Senate and the 
Committee on Governmental Reform of the House of 
Representatives no later than June 15, 2005, on the 
Department's strategy for addressing any such overlapping 
responsibilities and inefficient and/or duplicative procedures, 
including any legislative changes that the Secretary may choose 
to recommend.
Revision and extension of authority for advisory panel on review of 
        government procurement laws and regulations
      The Senate amendment contained a provision (sec. 805) 
that would revise and extend the authority for the advisory 
panel on the review of government procurement laws and 
regulations established by section 1423 of the National Defense 
Authorization Act for Fiscal Year 2004 (Public Law 108-136).
      The House bill contained no similar provision.
      The Senate recedes.
Amendments to domestic source requirements
      The House bill contained a provision (sec. 812) that 
would amend section 2533a of title 10, United States Code, also 
known as the Berry Amendment, to require the Secretary of 
Defense to notify Congress and the public when the Secretary 
exercises a waiver and describe certain covered items as 
clothing.
      The Senate amendment contained no similar provision.
      The House recedes.
Grant program for defense contractors to implement strategies to avoid 
        outsourcing of jobs
      The House bill contained a provision (sec. 814) that 
would authorize the Secretary of Defense to award grants to 
qualified defense contractors in order to assist the contractor 
in avoiding the outsourcing of jobs.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees recognize that improving competitiveness in 
the defense industrial base is an effective method of retaining 
domestic defense jobs and reducing the pressure to outsource 
jobs.
      The conferees recommend that the Secretary of Defense 
establish a program to encourage qualified defense contractors 
to implement cost reduction strategies that would improve 
competitiveness to avoid the outsourcing of jobs. Examples of 
such strategies could include retraining employees, plant 
upgrades, technology development, and other production cost-
cutting measures.
Preference for domestic freight forwarding services
      The House bill contained a provision (sec. 815) that 
would require the Secretary of Defense to grant preferences to 
freight forwarder companies owned and controlled by U.S. 
citizens that offer fair and reasonable rates in the award of 
transportation service contracts for transportation services 
to, from, or within Iraq or Afghanistan.
      The Senate amendment contained no similar provision.
      The House recedes.
Sense of the Senate of effects of cost inflation on the value of the 
        contracts to which a small business contract reservation 
        applies
      The Senate amendment contained a provision (sec. 816) 
that would express the sense of the Senate that the thresholds 
for the requirement for the reservation of contracts for small 
businesses and the use of simplified acquisition procedures 
should be adjusted in the same amount when adjusting these 
thresholds for inflation.
      The House bill contained no similar provision.
      The Senate recedes.
Extension of contract goal for small disadvantaged businesses and 
        certain institutions of higher education
      The Senate amendment contained a provision (sec. 821) 
that would extend section 2323 of title 10, United States Code, 
for three years.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees note that section 2323, which establishes a 
5 percent goal for Department of Defense contracting with 
smalldisadvantaged businesses and certain institutions of higher 
education, would continue to be effective until September 2006, and 
that a decision on whether to extend this authority will be deferred to 
later legislation.
Defense acquisition workforce limitations
      The House bill contained a provision (sec. 823) that 
would require a 5 percent reduction in the number of defense 
acquisition and support personnel in the Department of Defense 
on or before October 1, 2005.
      The Senate amendment contained a provision (sec. 841) 
that would require a 15 percent increase in the defense 
acquisition and support workforce during fiscal years 2005 
through 2007.
      The conference report does not include either provision.
Provision of information to Congress to enhance transparency in 
        contracting
      The House bill contained a provision (sec. 824) that 
would require the Secretary of Defense to provide information 
on contracts and task or delivery orders to the chairmen or 
ranking members of the Committees on Armed Services of the 
Senate and the House of Representatives, within 14 days of the 
request.
      The Senate amendment contained no similar provision.
      The House recedes.
Requirement to treat sureties in same manner as financing institutions 
        when contractors default
      The House bill contained a provision (sec. 825) that 
would require that sureties be treated in the same manner as 
financing institutions in cases of contractor default.
      The Senate amendment contained no similar provision.
      The House recedes.
Provisions relating to creation of jobs in the United States by defense 
        contractors
      The House bill contained a provision (sec. 826) that 
would require that the creation of jobs in the United States be 
used as an evaluation factor in defense procurements.
      The Senate amendment contained no similar provision.
      The House recedes.
Commission on the future of the national technology and industrial base
      The Senate amendment contained a provision (sec. 831) 
that would require the President to establish a commission to 
assess the future of the national technology and industrial 
base as defined by section 2500 of title 10, United States 
Code.
      The House bill contained no similar provision.
      The Senate recedes.
Waiver authority for domestic source or content requirements
      The Senate amendment contained a provision (sec. 832) 
that would provide the Secretary of Defense the authority to 
waive the application of statutory domestic source requirements 
and domestic content requirements for those countries who have 
signed a Declaration of Principles on defense trade with the 
United States.
      The House bill contained no similar provision.
      The Senate recedes.
Consistency with United States obligations under trade agreements
      The Senate amendment contained a provision (sec. 833) 
that would require that no provision of this Act, or any 
amendment made by this Act, shall apply if the Secretary of 
Defense, in consultation with the Secretary of Commerce, the 
U.S. Trade Representative, and the Secretary of State 
determines that the application of the provision would be 
inconsistent with international trade agreements of the United 
States.
      The House bill contained no similar provision.
      The Senate recedes.
Repeal of certain requirements and limitations relating to the defense 
        industrial base
      The Senate amendment contained a provision (sec. 834) 
that would repeal sections 812, 813, 814, and 821 of the 
National Defense Authorization Act for Fiscal Year 2004 (Public 
Law 108-136).
      The House bill contained no similar provision.
      The Senate recedes.
Report on contractor performance of security, intelligence, law 
        enforcement, and criminal justice functions in Iraq
      The Senate amendment contained a provision (sec. 865) 
that would require the Secretary of Defense to report to the 
congressional defense committees on contractor performance of 
security, intelligence, law enforcement, and criminal justice 
functions in Iraq.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees agree to include the intent of this 
provision in a related provision in this conference report.
Accreditation study of commercial, off-the-shelf processes for 
        evaluating information technology products and services
      The Senate amendment contained a provision (sec. 866) 
that would require the Secretary of Defense to carry out a 
study of commercial, off-the-shelf processes available to 
measure the quality of information technology, and to determine 
whether to accredit such a process for use in procurement of 
information technology and related services throughout the 
Department of Defense.
      The House bill contained no similar provision.
      The Senate recedes.
Energy savings performance contracts
      The Senate amendment contained a provision (sec. 869) 
that would require the Secretary of Defense to exercise 
existing authority to introduce life-cycle, cost-effective 
upgrades to federal assets through shared, energy savings 
contracting; demand management programs; and utility incentive 
programs.
      The House bill contained no similar provision.
      The Senate recedes.
Comptroller General analysis of use of transitional benefit 
        corporations in connection with competitive sourcing of 
        performance of Department of Defense activities and functions
      The Senate amendment contained a provision (sec. 1029) 
that would require the Comptroller General to review the 
potential for use of transitional benefit corporations in 
connection with competitive sourcing of the performance of 
activities and functions of the Department of Defense.
      The House amendment contained no similar provision.
      The Senate recedes. The manner in which employee benefits 
are addressed in public-private competitions is addressed in a 
separate section of the conference report.
Study of effect on defense industrial base of elimination of United 
        States domestic firearms manufacturing base
      The House bill contained a provision (sec. 1042) that 
would require the Secretary of Defense to submit to the 
congressional defense committees, within 60 days of enactment 
of this Act, a report detailing the impact on military 
readiness and the defense industrial infrastructure of the 
elimination of the U.S. domestic firearms manufacturing base as 
a result of ongoing civil litigation.
      The Senate amendment contained no similar provision.
      The House recedes.
Determination of whether private air carriers are controlled by United 
        States citizens for purposes of eligibility for government 
        contracts for transportation of passengers or supplies
      The House bill contained a provision (sec. 1063) that 
would amend section 2710 of the Emergency Wartime Supplemental 
Appropriations Act, 2003 (Public Law 108-11), to clarify that 
the Secretary of Transportation is responsible for certifying 
whether an air carrier is effectively controlled by citizens of 
the United States.
      The Senate amendment contained no similar provision.
      The House recedes.
Report on offset requirements under certain contracts
      The Senate amendment contained a provision (sec. 1093) 
that would add additional reporting requirements to the report 
required under section 8138(b) of the Department of Defense 
Appropriations Act for Fiscal Year 2004 (Public Law 108-199).
      The House bill contained no similar provision.
      The Senate recedes.
      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                     Legislative Provisions Adopted

       Subtitle A--Duties and Functions of Department of Defense

Study of roles and authorities of the Director of Defense Research and 
        Engineering (sec. 901)
      The Senate amendment contained a provision (sec. 911) 
that would require the Secretary of Defense, through the 
Defense Science Board, to carry out a study of the roles and 
authorities of the Director, Defense Research and Engineering.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Change of membership of specified council (sec. 902)
      The House bill contained a provision (sec. 905) that 
would amend sections 171 and 179, title 10, United States Code, 
to include the Commandant of the Coast Guard as a member of the 
Armed Forces Policy Council (AFPC) and include the Under 
Secretary of Defense for Policy (USD,P) on the Nuclear Weapons 
Council (NWC).
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would include 
the USD,P on the NWC, but would leave the membership of the 
AFPC unchanged.
      The conferees believe that the addition of the USD,P 
should allow the other members of the NWC to become more 
closely involved with nuclear related policy decisions. 
Additionally, the change will make the decisions that flow from 
the NWC more responsive to policy direction. The conferees note 
that this is the first time an additional member has been added 
to the NWC since its inception in 1987. The conferees expect 
the next two annual reports of the NWC required by subparagraph 
(f) of section 179 of title 10, United States Code, will 
discuss implementation of this provision.

                      Subtitle B--Space Activities

Space posture review (sec. 911)
      The Senate amendment contained a provision (sec. 1031) 
that would require the Secretary of Defense, jointly with the 
Director of Central Intelligence, to conduct a comprehensive 
review of the space posture of the United States for the period 
of the next 10 years. The provision also would require the 
Secretary and Director to provide an interim report on that 
review to congressional defense and intelligence committees by 
March 15, 2005 and a final report by December 31, 2005.
      The House bill amendment contained no similar provision.
      The House recedes with a clarifying amendment.
Panel on the future of national security space launch (sec. 912)
      The Senate amendment contained a provision (sec. 1032) 
that would establish a panel to examine the future military 
space launch requirements of the United States and the means of 
meeting such requirements.
      The House bill contained no similar provision.
      The House recedes with an amendment that would establish 
a panel to examine the future national security space launch 
requirements of the United States and the means of meeting such 
requirements.
      The conferees expect that the panel will consider the 
full range of national security space launch requirements.
Operationally responsive national security satellites (sec. 913)
      The Senate amendment contained a provision (sec. 1033) 
that would establish a separate program element for 
operationally responsive satellite payloads managed by the 
Office of Force Transformation of the Office of the Secretary 
of Defense. The provision would also authorize $25.0 million 
for the new program element.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
      The conferees agree to authorize an increase of $20.0 
million in PE 65799D8Z for operationally responsive payloads.
Nondisclosure of certain products of commercial satellite operations 
        (sec. 914)
      The Senate amendment contained a provision (sec. 1034) 
that would exempt from disclosure under the Freedom of 
Information Act (FOIA), section 552 of title 5, United States 
Code, data that are collected by land remote sensing and are 
prohibited from sale to customers other than the United States 
and its affiliated users under the Land Remote Sensing Policy 
Act of 1992, section 5601 et seq. of title 15, United States 
Code. The exemption would also include any imagery and other 
product that is derived fromsuch data. State and local laws 
mandating disclosure would be preempted.
      The House bill contained no similar provision.
      The House recedes with an amendment that would clarify 
that the restrictions imposed on such data or imagery are 
imposed for reasons of national security pursuant to the terms 
of operating licenses issued pursuant to the Land Remote 
Sensing Policy Act, and that would extend the preemption to 
include tribal law. The amendment would also provide that 
nothing in this section shall be construed to authorize the 
withholding of information from Congress.

                Subtitle C--Intelligence-Related Matters

Two-year extension of authority of the Secretary of Defense to engage 
        in commercial activities as security for intelligence 
        collection activities abroad (sec. 921)
      The House bill contained a provision (sec. 1071) that 
would amend section 431(a) of title 10, United States Code, to 
extend by two years, to December 31, 2006, the authority of the 
Secretary of Defense to engage in commercial activities 
necessary to provide security for authorized intelligence 
collection activities abroad.
      The Senate amendment contained an identical provision 
(sec. 1062).
      The conference agreement includes this provision.
Pilot program on cryptologic service training (sec. 922)
      The Senate amendment contained a provision (sec. 1090) 
that would allow the Director of the National Security Agency 
(NSA) to establish a pilot program for cryptologic service 
training by way of scholarships for college study in order to 
increase the number of qualified language analysts and 
intelligence analysts available to work at NSA or other 
elements of the intelligence community.
      The House bill contained no similar provision.
      The House recedes.

                       Subtitle D--Other Matters

Strategic plan for destruction of lethal Chemical Agents and Munitions 
        Stockpile (sec. 931)
      The conferees agree to include a provision that would 
require the Under Secretary of Defense for Acquisition, 
Technology and Logistics and the Secretary of the Army, who is 
responsible for executing the Chemical Agents and Munitions 
Destruction program, to jointly prepare a strategic plan for 
the future activities of the Chemical Demilitarization program. 
The plan shall include, at a minimum, consideration of 
realistic budgeting for stockpile destruction and related 
support programs; contingency planning for foreseeable or 
anticipated problems; and a management approach and associated 
actions that are designed to ensure full compliance with U.S. 
obligations under the Chemical Weapons Convention, and that 
take full advantage of opportunities to accelerate destruction 
of the chemical stockpile. The plan shall be updated yearly, 
and submitted each year by the Secretary of Defense to the 
Committees on Armed Services of the Senate and the House of 
Representatives with the President's budget submission for the 
next fiscal year.
Secretary of Defense criteria for and guidance on identification and 
        internal transmission of critical information (sec. 932)
      The House bill contained a provision (sec. 908) that 
would require the Secretary of Defense to establish criteria 
for determining the types of critical information required to 
be made known expeditiously to senior decision makers in the 
Department of Defense. The Secretary should provide guidance 
for the purpose of identifying such information to the 
secretaries of the military departments, the commanders of 
deployed forces, and other elements of the Department. The 
provision would also establish minimum criteria for such 
information, and would require the Secretary to establish a 
policy for the expeditious transmission of any report or 
evaluation at any level of the Department that results in the 
identification of any such information to the Secretary and the 
Joint Chiefs of Staff. The guidance is to be issued by the 
Secretary not later than 90 days after enactment.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.

                   Legislative Provisions Not Adopted

Change in title of Secretary of the Navy to Secretary of the Navy and 
        Marine Corps
      The House bill contained a provision (sec. 901) that 
would change the title of the Secretary of the Navy to the 
Secretary of the Navy and Marine Corps.
      The Senate amendment contained no similar provision.
      The House recedes.
Transfer of Center for the Study of Chinese Military Affairs from the 
        National Defense University to United States-China Economic and 
        Security Review Commission
      The House bill contained a provision (sec. 902) that 
would transfer the Center for the Study of Chinese Military 
Affairs at the National Defense University, established in the 
National Defense Authorization Act for Fiscal Year 2000 (Public 
Law 106-65) to the United States-China Economic and Security 
Review Commission, established in the Floyd D. Spence National 
Defense Authorization Act for Fiscal Year 2001 (Public Law 106-
398).
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees note their strong support for having a 
Center for the Study of Chinese Military Affairs at the 
National Defense University, and urge the Secretary of Defense 
to provide the Institute for National Strategic Studies at the 
National Defense University with sufficient resources to 
support a fully operational China Center.
Transfer to Secretary of the Army responsibility for Assembled Chemical 
        Weapons Alternatives program.
      The House bill contained a provision (sec. 903) that 
would transfer oversight of the Assembled Chemical Weapons 
Alternatives program from the Under Secretary of Defense for 
Acquisition, Technology and Logistics to the Secretary of the 
Army, and would require the Army to fully implement the 
alternative technologies previously selected for destruction of 
lethal chemical munitions at Pueblo Chemical Depot, Colorado, 
and Blue Grass Army Depot, Kentucky.
      The Senate amendment contained no similar provision.
      The House recedes.
Modification of obligated service requirements under National Security 
        Education Program
      The House bill contained a provision (sec. 904) that 
would amend section 802 of the David L. Boren National Security 
Education Act of 1991 (50 U.S.C. 1902) to modify service 
requirements, allow service to be conducted in additional 
agencies of government, establish time frames for commencement 
of service, and clarify minimum length of service.
      The Senate Amendment contained no similar provision.
      The House recedes.
Responses to congressional inquiries
      The House bill contained a provision (sec. 907) that 
would require the Secretary of Defense and other Department of 
Defense officials to respond to questions for the record from 
hearings of the Committees on Armed Services of the Senate and 
the House of Representatives within 21 days of receiving such 
questions.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees note that Department officials frequently 
take months to respond to questions for the record.
      The two committees conduct hearings to inform Congress 
and the public on significant issues regarding the operations 
of the Department. These hearings often serve as the basis for 
legislative, budget, and policy positions of the two 
committees. Because officials of the Department are not always 
prepared to respond to the full range of questions at such 
hearings, questions for the record form an important part of 
the record of such hearings.
      Lengthy delays in responding to questions for the record 
are contrary to the public interest because they delay the 
availability of critical information to Congress and the 
public. In many cases, responses are not made available until 
after the committees have made decisions on legislative, 
budget, and policy matters to which the information relates. 
This is not in the interest of either the Congress or the 
Department.
      The conferees recognize that questions for the record for 
some hearings are extensive and that, in some instances, the 
compilation of answers and responses can and does require 
detailed research and discussion prior to their transmission to 
the Congress. For this reason, the conferees have determined 
that it would not be practical to establish a single, uniform 
deadline for all responses to questions for the record.
      Overall, however, the Department must do a far better job 
of responding to questions for the record than it has in the 
recent past. Accordingly, the conferees direct the Secretary of 
Defense and other officials of the Department to respond to 
questions for the record within 21 days of receiving such 
questions, unless the Secretary or other official has informed 
the committee concerned in writing that he or she will be 
unable to meet the 21-day deadline and stated the date by which 
the questions will be answered.
      The conferees note that the Members of the congressional 
defense committees frequently request information from the 
Department through letters, meetings, and other mechanisms. The 
conferees expect that officials of the Department will respond 
promptly to such inquiries as well.
Directors of Small Business Programs
      The Senate amendment contained a provision (sec. 912) 
that would change the title of the Department of Defense's 
Office of Small and Disadvantaged Business Utilization to the 
Office of Small Business Programs.
      The House bill contained no similar provision.
      The Senate recedes.
                      TITLE X--GENERAL PROVISIONS

                       Items of Special Interest

Coordination of Department of Defense Homeland Defense/Homeland 
        Security Initiative in Support of First Responders
      The conferees remain concerned about the level of 
planning and coordination between the Department of Defense and 
other federal departments and agencies that the Department 
might be called upon to assist in cases of natural or man-made 
disasters.
      Therefore, the conferees direct the Secretary of Defense 
to provide the Committees on Armed Services of the Senate and 
the House of Representatives a report by March 5, 2005, 
detailing the Department's strategy and plans to coordinate 
with the Department of Homeland Security (DHS), the Department 
of Justice (DoJ), and state, local and tribal governments on 
command, control and communication problems encountered during 
man-made and natural disasters. Additionally, the report shall 
address technology developments and interoperability issues 
that exist or may exist between the Department and other 
federal departments, and state, local and tribal first 
responders, as well as possible solutions to resolve such 
issues. The conferees encourage the Department to continue its 
efforts to identify technologies that may serve homeland 
security purposes, and to make such technologies available to 
DHS, DoJ and the first responder community.

                     Legislative Provisions Adopted

                     Subtitle A--Financial Matters

Transfer Authority (sec. 1001)
      The House bill contained a provision (sec. 1001) that 
would provide $3.0 billion in transfer authority among accounts 
in division A of this Act for fiscal year 2005.
      The Senate amendment contained a similar provision (sec. 
1001).
      The conferees agree to a provision that provides $3.5 
billion in transfer authority.
United States contribution to NATO common-funded budgets in fiscal year 
        2005 (sec. 1002)
      The Senate amendment contained a provision (sec. 1002) 
that would authorize the U.S. contribution to North Atlantic 
Treaty Organization (NATO) common-funded budgets for fiscal 
year 2005, including the use of unexpended balances. The 
resolution of ratification for the Protocol to the North 
Atlantic Treaty of 1949 on the Accession of Poland, Hungary, 
and the Czech Republic contained a provision (section 
3(2)(c)(ii)) requiring a specific authorization for U.S. 
payments to the common-funded budgets of NATO for each fiscal 
year, beginning in fiscal year 1999, that payments exceed the 
fiscal year 1998 total.
      The House bill contained no similar provision.
      The House recedes.
Budget justification documents for operation and maintenance (sec. 
        1003)
      The House bill contained a provision (sec. 1002) that 
would amend section 232 of title 10, United States Code, to 
require additional information be provided with the annual 
Department of Defense operation and maintenance (O&M) budget 
presentation, including: the baseline costs for programs in 
which there is an identified program increase or decrease; the 
amount of funds requested for personal service contracts and 
the number of personal service contractors expected to be 
compensated at an annual rate in excess of the annual rate of 
pay for the Vice President; identification by the Department of 
the Navy of funding requested for ship depot maintenance and 
funding requested for intermediate depot maintenance; and the 
average civilian salary cost by sub-activity group as a 
component of the personnel summary. The provision would also 
require the Secretary of Defense to submit a report to the 
Committees on Armed Services of the Senate and the House of 
Representatives by March 1, 2005 that catalogues the elements 
of ``other costs'' and ``other contracts'' which are currently 
used in the O&M justification materials of the budget request.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would amend 
section 232 of title 10, United States Code, to require 
additional information be provided with the Department of 
Defense annual O&M budget presentation, including: the baseline 
costs for programs in which there is an identified program 
increase or decrease; and identification by the Department of 
the Navy of funding requested for ship depot maintenance and 
funding requested for intermediate depot maintenance. The 
amendment would also require the Secretary of Defense to submit 
a report to the Committees on Armed Services of the Senate and 
the House of Representatives by March 1, 2005 that catalogues 
the elements of other costs and other contracts which are 
currently used in justification materials of the budget 
request.
      The conferees note that the Committees on Armed Services 
of the Senate and the House of Representatives will continue to 
work with the Department and the services to improve the 
informationincluded in the annual O&B budget submissions.
Licensing of intellectual property (sec. 1004)
      The House bill contained a provision (sec. 1003) that 
would authorize the Secretary concerned, under regulations 
prescribed by the Secretary of Defense, to license trademarks, 
service marks, certification marks, and collective marks owned 
by a military department, and to retain and expend fees 
received from such licensing. Fees received in excess of the 
costs of registration and licensing could be expended for 
recruiting and retention and morale, welfare, and recreation 
activities of the military department.
      The Senate amendment contained a provision (sec. 1064) 
that would provide similar authority, but would limit the use 
of excess fees to morale, welfare, and recreation activities of 
the military department.
      The House recedes with a technical amendment.
Repeal of funding restrictions concerning development of medical 
        countermeasures against biological warfare threats (sec. 1005)
      The House bill contained a provision (sec. 1005) which 
would repeal Section 2370a of title 10, United States Code that 
set statutory limits on funding concerning the development of 
medical countermeasures against biological warfare threats.
      The Senate amendment contained no similar provision.
      The Senate recedes.
      The conferees intend to monitor the expenditure of funds 
in this account and expect the Department of Defense to provide 
briefings to the congressional defense committees on this 
issue. Although the statutory limits are being lifted, the 
conferees remain concerned that sufficient funding is not being 
requested or expended in the various categories for medical 
countermeasures against biological warfare threats. The 
conferees urge the Department to program more robust funding 
for biological defense programs consistent with the needs and 
objectives of these programs, and expect the Department to use 
the money authorized to develop medical countermeasures against 
biological warfare threats.
Report on budgeting for exchange rates for foreign currency 
        fluctuations (sec. 1006)
      The House bill contained a provision (sec. 1006) that 
would require the Secretary of Defense to submit to the 
Committees on Armed Services of the Senate and House of 
Representatives a report on the foreign currency exchange rate 
projection used in annual Department of Defense budget 
presentations.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.
Fiscal year 2004 transfer authority (sec. 1007)
      The House bill contained a provision (sec. 1007) that 
would provide $3.0 billion in transfer authority among accounts 
in division A of this Act for fiscal year 2004.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would provide 
$2.8 billion in transfer authority.
Clarification of fiscal year 2004 funding level for a National 
        Institute of Standards and Technology account (sec. 1008)
      The Senate amendment contained a provision (sec. 1092) 
that would clarify fiscal year 2004 funding for programs under 
the National Institute of Standards and Technology Industrial 
Technology Services account.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Notification of fund transfers from working capital funds (sec. 1009)
      The Senate amendment contained a provision (sec. 312) 
that would limit the transfer of funds out of, or among, 
working capital funds. The provision requires the Secretary of 
Defense to notify the Congress when such transfers are made. 
The Department of Defense should submit prior approval 
reprogramming requests, DD Forms 1415-1, to the congressional 
defense committees in accordance with established procedures.
      The House bill contained no similar provision.
      The House recedes.
Charges for Defense Logistics Information Services materials (sec. 
        1010)
      The Senate amendment contained a provision (sec. 361) 
that would permit the Defense Logistics Information Services, a 
division of the Defense Logistics Agency, to develop a fee 
schedule for charging public and private entities for copies of 
materials from the Federal Logistics Information System (FLIS). 
The FLIS is a management system designed to collect, store, 
process, and provide item-related logistics information. This 
information often is used by private entities doing or seeking 
business with the Department of Defense.
      The House bill contained no similar provision.
      The House recedes.

                Subtitle B--Naval Vessels and Shipyards

Authority for award of contracts for ship dismantling on net-cost basis 
        (sec. 1011)
      The House bill contained a provision (sec. 1011) that 
would allow the Secretary of the Navy to award contracts for 
the dismantling of vessels stricken from the Naval Vessel 
Register on a net-cost basis.
      The Senate amendment contained a similar provision (sec. 
1013).
      The Senate recedes.
Use of proceeds from exchange and sale of obsolete Navy service craft 
        and boats (sec. 1012)
      The Senate amendment contained a provision (sec. 1011) 
that would allow the Secretary of the Navy to retain the 
proceeds of the sale, or exchange allowance from the exchange, 
of obsolete service craft and obsolete boats. The Secretary 
would be allowed to use these proceeds or exchange allowances 
for specified purposes.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment that 
restructures the items within the provision.
Transfer of Naval vessels to certain foreign recipients (sec. 1013)
      The House bill contained a provision (sec. 1013) that 
would authorize the President: (1) to transfer on a grant basis 
to the government of Chile, the Spruance-class destroyer 
O'Bannon (DD 987) and (b) to the government of Portugal, the 
Oliver Hazard Perry-class frigate George Phillip (FFG 12); and 
(2) to transfer on a sale basis to the Taipei Economic and 
Cultural Office of the United States, the Anchorage-class dock 
landing ship Anchorage (LSD-36). The provision would also 
direct that: (1) any expense incurred by the United States in 
connection with a transfer on a grant basis shall be charged to 
the recipient; and (2) to the maximum extent possible, the 
President shall require, as a condition of transfer, the repair 
and refurbishment associated with the transfer be accomplished 
in a shipyard located in the United States.
      The Senate amendment contained a similar provision (sec. 
1014) that would authorize the Secretary of the Navy: (1) to 
transfer on a grant basis to the government of Chile, the 
Spruance-class destroyer O'Bannon (DD 987) and to the 
government of Portugal, the Oliver Hazard Perry-class frigates 
George Phillip (FFG 12) and Sides (FFG 14); and (2) to transfer 
on a sale basis to the Taipei Economic and Cultural Office of 
the United States, the Anchorage-class dock landing ship 
Anchorage (LSD-36) and (b) to the government of Chile, the 
Spruance-class destroyer Fletcher (DD 992). The provision would 
also direct that any expense incurred by the United States in 
connection with a transfer authorized by this provision be 
charged to the recipient.
      The House recedes with an amendment that would authorize 
the President: (1) to transfer on a grant basis to the 
government of Chile, the Spruance-class destroyer O'Bannon (DD 
987) and to the government of Portugal, the Oliver Hazard 
Perry-class frigates George Phillip (FFG 12) and Sides (FFG 
14); and (2) to transfer on a sale basis to the Taipei Economic 
and Cultural Office of the United States, the Anchorage-class 
dock landing ship Anchorage (LSD-36) and to the government of 
Chile, the Spruance-class destroyer Fletcher (DD 992). The 
amendment would also direct that any expense incurred by the 
United States in connection with a transfer authorized by this 
provision be charged to the recipient.
Independent study to assess cost-effectiveness of the Navy ship 
        construction program (sec. 1014)
      The House bill contained a provision (sec. 1012) that 
would require the Secretary of Defense to have a study 
conducted by an entity independent of the Department of Defense 
on the cost-effectiveness of the ship construction program of 
the Navy. The study would examine various approaches for how 
the Navy ship construction program could be made more cost-
effective in the near-term, and how the United States 
shipbuilding industry might be made globally competitive 
through a nationally integrated effort over the next decade.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary of Defense to provide for a group of industrial 
experts to assess priorities for potential implementation of 
the various approaches in the near-term study, with an 
assessment of the return on investment. It would also require 
an assessment of priorities for potential implementation of the 
various approaches for the nationally, integrated effort, with 
the objective being to create a healthier and more viable U.S. 
shipbuilding industrial base.
      The conferees believe the group chosen for this study 
should be five to ten industrial experts who represent an array 
of industrial sectors, not just the shipbuilding industry. Many 
sectors of the U.S. industrial base have had to retool 
processes and equipment to become more competitive. Since the 
rate of shipbuilding is much lower, competitiveness has not 
provided thesame incentive for this sector. The conferees are 
aware of and support the work of the National Shipbuilding Research 
Program-Advanced Shipbuilding Enterprise (NSRP-ASE), including its lean 
shipbuilding initiative. The conferees would expect the group of 
industrial experts chosen for this study to become familiar with this 
work, and to consider the potential for using the NSRP-ASE to implement 
some of the various approaches.
Limitation on disposal of obsolete naval vessel (sec. 1015)
      The Senate amendment contained a provision (sec. 1012) 
that would not allow the Secretary of the Navy to dispose of 
the decommissioned destroyer ex-Edson (DD-946) to a nonprofit 
organization before October 1, 2007, unless the Secretary first 
determines that there is no nonprofit organization that meets 
the criteria for donation of that vessel under section 
7306(a)(3) of title 10, United States Code.
      The House bill contained no similar provision.
      The House recedes.

                    Subtitle C--Counterdrug Matters

Use of funds for unified counterdrug and counterterrorism campaign in 
        Colombia (sec. 1021)
      The Senate amendment contained a provision (sec. 1052) 
that would extend through fiscal year 2006, the expanded 
authority for the Department of Defense to use counterdrug 
funds to support the Government of Colombia's unified campaign 
against narcotics cultivation and trafficking, and against the 
terrorist organizations involved in such drug trafficking 
activities. The provision would also change the limitation on 
the number of U.S. military personnel assigned to Colombia in 
support of Plan Colombia to 800 personnel, and the number of 
federally funded contractor personnel employed in support of 
Plan Colombia to 600 personnel.
      The House bill contained similar provisions (sec. 1031 
and 1032) that would extend the expanded authority through 
fiscal year 2006 and would increase the number of U.S. military 
personnel in Colombia to 500.
      The House recedes.
Sense of Congress and report regarding counter-drug efforts in 
        Afghanistan (Sec. 1022)
      The Senate amendment contained a provision (sec. 1056) 
that would express the sense of the Senate that: (1) the 
President should make the substantial reduction of drug 
trafficking in Afghanistan a priority in the war on terror; (2) 
the Secretary of Defense should, in coordination with the 
Secretary of State, work to a greater extent with the 
Government of Afghanistan and international organizations 
involved in counter-drug activities to provide a secure 
environment for counter-drug personnel in Afghanistan; and (3) 
additional efforts should be made by the Armed Forces of the 
United States, with coalition forces, to significantly reduce 
narcotics trafficking in Afghanistan, with particular focus on 
those traffickers with the closest links to known terrorist 
organizations. The provision also directed the Secretary of 
Defense to submit a report to Congress on progress made towards 
substantially reducing the poppy cultivation and heroin 
production capabilities in Afghanistan, and the extent to which 
profits from illegal drug activity in Afghanistan fund 
terrorist organizations and support groups that seek to 
undermine the Government of Afghanistan.
      The House bill contained no similar provision.
      The House recedes with an amendment that would express 
the sense of the Congress that: (1) the President should make 
the substantial reduction of illegal drug trafficking in 
Afghanistan a priority in the global war on terrorism; (2) the 
Secretary of Defense, in coordination with the Secretary of 
State and the heads of other appropriate federal agencies, 
should expand cooperation with the Government of Afghanistan 
and international organizations involved in the counter-drug 
activities to assist in providing a secure environment for 
counter-drug personnel in Afghanistan; and (3) the United 
States, in conjunction with the Government of Afghanistan and 
coalition partners, should undertake additional efforts to 
reduce illegal drug trafficking and related activities that 
provide financial support for terrorist organizations in 
Afghanistan and neighboring countries. The conferees further 
agree that the Secretary of Defense and the Secretary of State 
will jointly submit the aforementioned report.
      The conferees note that there are strong, direct 
connections between terrorism and drug trafficking, and that 
the elimination of this funding source is critical to making 
significant progress in the global war on terror. It is clear 
that the military action against the Taliban in Afghanistan was 
designed, in part, to disrupt the activities of and financial 
support for terrorists. While progress in disrupting the 
financial links has been made, it is clear that some of the 
profits associated with opium harvested in Afghanistan continue 
to fund terrorists and terrorist organizations, including Al 
Qaeda, that seek to attack the United States and its interests. 
Additionally, the President of Afghanistan, Hamad Karzai, has 
stated that opium production poses a significant threat to the 
future of Afghanistan, and has established a plan of action to 
deal with this threat. It is for these and other reasons that 
the conferees believe that the United States, in conjunction 
with the Government of Afghanistan and coalition partners, 
should undertake additional efforts toreduce illegal drug 
trafficking and related activities that provide financial support for 
terrorist organizations in Afghanistan and neighboring countries. The 
conferees believe that the Department of Defense, in conjunction with 
other U.S. agencies and coalition partners, must have a comprehensive 
strategy that provides consistent funding from year to year to achieve 
significant progress in reducing drug cultivation, trafficking, and 
related activities in Afghanistan.

       Subtitle D--Matters Relating to Museums and Commemorations

Recognition of the Liberty Memorial Museum, Kansas City, Missouri, as 
        America's National World War I Museum (sec. 1031)
      The House bill contained a provision (sec. 354) that 
would express the sense of Congress that the Liberty Memorial 
Museum in Kansas City, Missouri, is recognized as ``America's 
National World War I Museum.''
      The Senate amendment contained a similar provision (sec. 
1078).
      The Senate recedes with technical amendments.
Program to Commemorate 60th Anniversary of World War II (sec. 1032)
      The Senate amendment contained a provision (sec. 365) 
that would authorize the Secretary of Defense to conduct a 
program to commemorate the 60th anniversary of World War II and 
to coordinate, support, and facilitate other such commemoration 
programs and activities of the Federal, State, and local 
governments, and other persons.
      The House bill contained no similar amendment.
      The House recedes.
Annual report on Department of Defense operation and financial support 
        for military museums (sec. 1033)
      The House bill contained a provision (sec. 341) that 
would amend chapter 23 of title 10, United States Code, to 
require the Secretary of Defense to include in the annual 
budget justification materials a complete inventory of military 
museums operated with funds appropriated to the Department of 
Defense or the military services.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would add a 
reporting requirement for the Secretary to describe the 
management structure of each museum. The amendment would also 
add a reporting requirement for the Secretary to provide 
information on the prioritization process within the Department 
and within each military department for funds allocation and 
personnel support for museums.
      While the conferees agree that military museums serve an 
important role in the preservation of the history and heritage 
of the U.S. military, the conferees are concerned that the 
proliferation of military museums nationwide may be draining 
fiscal resources needed for other requirements. The conferees 
expect that the information to be provided by the Secretary 
will be used as a database for future discussions with the 
Department about the effective management of military museums.

            Subtitle E--Reports [Not Provided for Elsewhere]

Quarterly detailed accounting for operations conducted as part of the 
        global war on terrorism (sec. 1041)
      The Senate amendment contained a provision (sec. 1029D) 
that would require the Secretary of Defense to provide to the 
congressional defense committees quarterly reports on the costs 
incurred by the Department of Defense for all operations in the 
global war on terrorism. In addition to the reports required by 
this provision, the conferees expect the Department to continue 
to provide to the legislative branch timely access to monthly 
contingency cost reports.
      The House bill amendment contained no similar provision.
      The House recedes with a technical amendment.
Report on post-major combat operations phase of Operation Iraqi Freedom 
        (sec. 1042)
      The Senate amendment contained a provision (sec. 1028) 
that would require a report on aspects of the post-major combat 
operations phase of Operation Iraqi Freedom.
      The House bill contained no similar provision.
      The House recedes with an amendment that would change the 
due date of the report to June 1, 2005, and would include an 
assessment of the organization of U.S Central Command to 
conduct post-conflict operations and related lessons learned.
Report on training provided to members of the Armed Forces to prepare 
        for post-conflict operations (sec. 1043)
      The Senate amendment contained a provision (sec. 1024) 
that would direct the Secretary of Defense to conduct a study 
todetermine the extent to which members of the Armed Forces 
assigned to duty in support of contingency operations receive training 
in preparation for post-conflict operations and to evaluate the quality 
of such training. The provision would direct the Secretary to submit a 
report to Congress on the assessment not later than May 1, 2005.
      The House bill contained a similar provision (sec. 1043).
      The House recedes with a clarifying amendment.
Report on establishing national centers of excellence for unmanned 
        aerial and ground vehicles (sec. 1044)
      The Senate amendment contained a provision (sec. 1027) 
that would require the Secretary of Defense to submit a report 
to the congressional defense committees on the need for one or 
more national centers of excellence for unmanned aerial and 
ground vehicles. The provision also defines the goals of the 
centers and other considerations to be included in the 
preparation of this report.
      The House bill contained no similar provision.
      The House recedes with a technical amendment to clarify 
certain elements of the provision.
Study of continued requirement for two-crew manning for ballistic 
        missile submarines (sec. 1045)
      The House bill contained a provision (sec. 1041) that 
would require the Secretary of Defense to submit to the 
congressional defense committees a report on whether the 
requirement for two-crew manning of fleet ballistic missile 
submarines should be continued, modified, or terminated.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Report on Department of Defense programs for prepositioning of materiel 
        and equipment (sec. 1046)
      The House bill contained a provision (sec. 342) that 
would direct the Secretary of Defense to conduct an assessment 
of the programs of the Department of Defense for the 
prepositioning of materiel and equipment. The provision would 
direct the Secretary to submit a report to Congress on the 
assessment not later than October 1, 2005.
      The Senate amendment contained no similar amendment.
      The Senate recedes with a clarifying amendment.
Report on al Qaeda activity in the Western Hemisphere (sec. 1047)
      The conferees agree to include a provision that would 
direct the Secretary of State, in consultation with the 
Secretary of Defense and the Director of Central Intelligence, 
to submit to the appropriate committees of Congress a report on 
any al Qaeda activity in the Western Hemisphere, including 
fundraising, affiliations with other groups in the region, and 
possible targets for attack; and on United States policies that 
are designed to address such activities. The provision would 
require that an unclassified report, with a classified annex as 
necessary, be submitted no later that 180 days after the date 
of the enactment of this Act. The conferees note their concern 
about potential al Qaeda activity in the Western Hemisphere, 
and the indirect and direct threat to United States national 
security that such activity represents.

  Subtitle F--Defense Against Terrorism [and Other Domestic Security 
                                Matters]

Acceptance of communications equipment provided by local public safety 
        agencies (sec. 1051)
      The Senate amendment contained a provision (sec. 1041) 
that would allow military installations that have Memoranda of 
Understanding or Memoranda of Agreement with state and local 
first responders to accept ham radios or communication 
equipment on an interim basis until interoperability of 
communications has been established.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Determination and report on full-time airlift support for homeland 
        defense operations (sec. 1052)
      The Senate amendment contained a provision (sec. 1042) 
that would instruct the Secretary of Defense to determine the 
feasibility and advisability of dedicating a full-time airlift 
capability to support homeland defense operations.
      The House bill contained no similar provision.
      The House recedes with an amendment that would instruct 
the Secretary to also consider the transportation requirements 
of the newly established National Guard Chemical, Biological, 
Radiological, Nuclear and High Explosive Enhanced Response 
Force Packages.
Survivability of critical systems exposed to chemical or biological 
        contamination (sec. 1053)
      The Senate amendment contained a provision (sec. 1043) 
that would direct the Secretary of Defense to submit a plan to 
the Committees on Armed Services of the Senate and the House of 
Representatives that describes the Department of Defense's 
systematic approach for ensuring the survivability of defense 
critical systems exposed to chemical or biological 
contamination.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

                 Subtitle G--Personnel Security Matters

Use of National Driver Register for personnel security investigations 
        and determinations (sec. 1061)
      The House bill contained a provision (sec. 1051) that 
would amend title 49, United States Code, to authorize access 
to the National Driver Register by federal departments and 
agencies for use in personnel security investigations and for 
use in personnel investigations with regard to federal 
employment.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would clarify 
that the federal employment contemplated in the provision is 
employment requiring access to national security information, 
and that the department or agency receiving such information 
may use that information only for the purpose of the authorized 
investigation, in accordance with applicable law.
Standards for disqualification from eligibility for Department of 
        Defense security clearance (sec. 1062)
      The House bill contained a provision (sec. 1052) that 
would amend section 986 of title 10, United States Code, to 
clarify a standard for disqualification and would allow 
delegation of waiver authority, in accordance with standards 
and procedures establish by Executive order or other 
Presidential guidance.
      The Senate amendment contained no similar provision.
      The Senate recedes.

               Subtitle H--Transportation-Related Matters

Use of military aircraft to transport mail to and from overseas 
        locations (sec. 1071)
      The House bill contained a provision (sec. 1061) that 
would provide the Secretary of Defense the authority to use 
military aircraft to transport mail and parcels to, from, and 
between overseas locations. This authority, however, would be 
limited to the following circumstances:
            (1) There is excess space on a scheduled military 
        flight;
            (2) There is no overall cost increase to the 
        Department of Defense or the U.S. Postal Service;
            (3) The U.S. Transportation Command would pay the 
        cost of transporting mail from U.S. Postal Service to 
        customs clearance facilities and military debarkation 
        locations at rates not to exceed Department of 
        Transportation rates for commercial airlines;
            (4) There is no degradation of mail service; and
            (5) There is no diversion of such military aircraft 
        during contingencies or other events.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Reorganization and clarification of certain provisions relating to 
        control and supervision of transportation within the Department 
        of Defense (sec. 1072)
      The House bill contained a provision (sec. 1062) that 
would amend sections 4744 through 4747 of title 10, United 
States Code, by moving these sections from chapter 47 to 
chapter 26. This section would also repeal sections 9741, 9743, 
and 9746 of title 10, United States Code. These changes reflect 
the Secretary of Defense's role in transportation versus the 
individual role of the service secretaries.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Evaluation of procurement practices relating to transportation of 
        security-sensitive cargo (sec. 1073)
      The House bill contained a provision (sec. 1064) that 
would require the Secretary of Defense to evaluate whether, and 
under what conditions, in the award of service contracts for 
domestic freight transportation for security-sensitive cargo, 
the Secretary should not consider an offer or tender from more 
than one motor carrier that is a part of a group of motor 
carriers under common financial or administrative control. The 
provision would also direct the Secretary to submit a report to 
the Committees on Armed Services of the Senate and the House of 
Representatives with the results of the evaluation not later 
than January 1, 2005.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would direct 
the Secretary to evaluate the award of service contracts for 
domestic freight transportation for security-sensitive cargo 
(such asarms, ammunition, explosive, and classified material) 
to determine whether such practices are in the best interest of the 
Department of Defense, and would direct the Secretary to submit a 
report to the Committees on Armed Services of the Senate and the House 
of Representatives with the results of the evaluation not later than 
January 1, 2005.

                       Subtitle I--Other Matters

Liability protection for Department of Defense volunteers working in 
        maritime environment (sec. 1081)
      The House bill contained a provision (sec. 1075) that 
would modify section 1588 of title 10, United States Code, to 
add the training of cadets and midshipmen at the service 
academies to the voluntary services that may be accepted, and 
include chapters 20 and 22 of title 46 to the laws covered by 
this provision.
      The Senate amendment contained a provision (sec. 1063) 
that would extend to volunteers working in the maritime 
training environment the same status and legal protections, for 
purposes of claims and loss, presently available to volunteers 
working in support of land-based programs.
      The House recedes with an amendment that would modify 
section 1588 of title 10, United States Code, to add chapters 
20 and 22 of title 46 Appendix to the provisions of law listed 
in subparagraph (d) with the intent of not limiting the 
liability protection afforded volunteers in the maritime 
environment only to the service academies.
      The conferees appreciate the importance of voluntary 
services provided by individuals for the benefit of soldiers, 
sailors, airmen, and marines and their families. As reflected 
in section 1588 of title 10, United States Code, voluntary 
services are received in connection with a wide variety of 
programs and activities. Under many circumstances, the ability 
of the services to offer protection from personal liability is 
a necessary condition for the acceptance of voluntary services. 
This is not always the case; however, and the criteria for 
identifying those functions and voluntary services appropriate 
for inclusion in section 1588 are not evident.
      The conferees direct the Secretary of Defense to submit a 
report by June 1, 2005, to the Committees on Armed Services of 
the Senate and the House of Representatives describing the 
manner in which the Department of Defense currently determines 
what voluntary services to accept, which of the accepted 
services warrant liability protection, and how the Department 
oversees their delivery under section 1588. The Secretary 
should prescribe the policy of the Department of Defense 
regarding the acceptance of voluntary services and, in 
consultation with the Department of Justice, submit proposals 
for legislative changes, if needed. The conferees urge the 
Department of Defense to develop policies and procedures that 
will enable commands and activities to appropriately accept and 
supervise voluntary services and, when called for, afford 
immunity from personal liability.
Sense of the Congress concerning media coverage of the return to the 
        United States of the remains of deceased members of the Armed 
        Forces from overseas (sec. 1082)
      The Senate amendment contained a provision (sec. 366) 
that would state the sense of the Congress that the Department 
of Defense policy regarding no media coverage of the transfer 
of the remains of deceased members of the Armed Forces 
appropriately protects the privacy of the families and friends 
of the deceased, and is consistent with constitutional 
guarantees of freedom of speech and freedom of the press.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Transfer of historic F3A-1 Brewster Corsair aircraft (sec. 1083)
      The House bill contained a provision (sec. 1076) that 
would authorize the Secretary of the Navy to convey by means of 
a gift, without consideration, to Mr. Lex Cralley, of 
Princeton, Minnesota, all right, title, and interest of the 
United States in and to a F3A-1 Brewster Corsair aircraft.
      The Senate amendment contained no similar amendment.
      The Senate recedes.
      The conferees note that this transfer should not be 
considered as a precedent for future transfers of aircraft or 
other property of the U.S. government to individuals.
Technical and clerical amendments (sec. 1084)
      The House bill contained a provision (sec. 1073) that 
would make technical and clerical amendments to various 
provisions of law. The Senate amendment contained similar 
provisions (sec. 1022 and 1061).
      The Senate recedes with an amendment that would 
incorporate the provisions of sections 1022 and 1061 of the 
Senate amendment, strike certain portions of section 1073 of 
the House bill, and make certain additional technical and 
clerical amendments.
Preservation of search and rescue capabilities of the Federal 
        Government (sec. 1085)
      The Senate amendment contained a provision (sec. 1073) 
that would prevent the Secretary of Defense for reducing or 
eliminating the search and rescue capabilities at any military 
installation in the United States until the Secretary certifies 
that equivalent services will be provided without interruption 
and consistent with the policies and objectives established in 
the United States National Search and Rescue Plan of January 1, 
1999.
      The House bill contained no similar provision.
      The House recedes.
Acquisition of aerial firefighting equipment for National Interagency 
        Fire Center (sec. 1086)
      The Senate amendment contained a provision (sec. 1076) 
that would authorize the Secretary of Agriculture to purchase 
10 aerial firefighting aircraft to be used by the National 
Interagency Fire Center.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
that the aircraft be certified by the Chief of the Forest 
Service as suited for conditions commonly carried out in the 
United States, including Alaska.
Revision to requirements for recognition of institutions of higher 
        education as Hispanic-serving institutions for purposes of 
        certain grants and contracts (sec. 1087)
      The Senate amendment contained a provision (sec. 1079) 
that would allow universities to qualify as Hispanic-serving 
institutions, as defined by the Higher Education Act (Public 
Law 89-329, as amended), by providing assurances that 50 
percent of the Hispanic student population is low-income by 
employing statistical extrapolation from Census Bureau data.
      The House bill contained no similar provision.
      The House recedes.
Military extraterritorial jurisdiction over contractors supporting 
        defense missions overseas (sec. 1088)
      The Senate amendment contained a provision (sec. 1081) 
that would amend the definitional section of the Military 
Extraterritorial Jurisdiction Act of 2000, section 3267 of 
title 18, United States Code (Public Law 106-523), to expand 
jurisdiction over civilian employees and contractor personnel 
of the United States to include personnel not employed by or 
contracting with the Department of Defense whose employment 
relates to supporting the mission of the Department of Defense 
overseas.
      The House bill contained no similar provision.
      The House recedes.
Definition of United States for purposes of Federal crime of torture 
        (sec. 1089)
      The Senate amendment contained a provision (sec. 1082) 
that would amend section 2340 of title 18, United States Code, 
to define ``United States'' for the purposes of chapter 113C of 
that title as the States, the District of Columbia, and the 
commonwealths, territories, and possessions of the United 
States.
      The House bill contained no similar provision.
      The House recedes.
Energy savings performance contracts (sec. 1090)
      The Senate amendment contained a provision (sec. 1091) 
that would reauthorize energy savings performance contract 
authority under section 802 of the National Energy Policy Act 
(42 U.S.C. 8287a) for the Department of Defense and other 
federal agencies until October 1, 2006. The provision would 
also authorize water or wastewater treatment projects to be 
conducted under an energy savings performance contract.
      The House bill contained no similar provision.
      The House recedes with an amendment to reauthorize this 
authority until October 1, 2006.
Sense of Congress and policy concerning persons detained by the United 
        States (sec. 1091-1093)
      The House bill contained a provision (sec. 906) that 
would require the Secretary of Defense to prescribe policies to 
prevent the abuse of detainees held by the United States as 
part of the Global War on Terrorism, and would require that the 
policies be transmitted, and a report on implementation be 
submitted, to the Committees on Armed Services of the Senate 
and the House of Representatives. It also contained a provision 
(sec. 1207) expressing the sense of Congress concerning the 
abuse of persons in United States custody in Iraq.
      The Senate amendment contained a provision (sec. 1029F) 
that would require detailed reports on foreign national 
detainees in the custody of the Department of Defense, and the 
detention facilities and practices of the Department. It also 
contained a provision (sec. 1057) that would make findings on 
United States adherence to international conventions on torture 
and cruel or inhuman treatment or punishment; prohibit torture 
or cruel, inhuman, or degrading treatment or punishment that is 
prohibited by the Constitution, laws, or treaties of the United 
States; require the Secretary of Defense to prescribe 
regulations to ensure compliance with the prohibition; and 
report twice a yearon investigations of possible violations of 
the prohibition. The Senate amendment also contained a provision (sec. 
1059C) that would set out the policy of the United States concerning 
torture and inhumane treatment; require reports on detainees, military 
commissions, and interrogation techniques; require the submission of 
certain reports prepared by the International Committee of the Red 
Cross; and require the Secretary to certify that federal and contractor 
personnel engaged in the handling of detainees have been trained in 
U.S. international obligations and the law of war.
      The House recedes with an amendment that would state the 
sense of Congress with regard to misconduct by certain U.S. 
personnel at the Abu Ghraib prison in Iraq; the professionalism 
and morality of the vast majority of American servicemembers 
serving there; the law governing the treatment of detainees; 
and the prohibition of torture or cruel and inhumane treatment 
contained in applicable domestic and international law. The 
amendment further sets out the policy of the United States with 
respect to the proper treatment of detainees; the need for 
thorough investigation and prosecution, as appropriate, of 
unlawful treatment of detainees; the need to ensure that all 
personnel of the United States Government understand their 
obligations to comply with the prohibitions against torture and 
inhumane treatment; the need to ensure the proper status of 
detained persons while a determination is made as to their 
prisoner of war status under the applicable Geneva Convention; 
and the need for expeditious prosecution of detainees in U.S. 
custody who are alleged to have committed terrorist acts or 
other crimes.
      The amendment would further require the Secretary of 
Defense to ensure that policies are prescribed, within 150 days 
of enactment, to ensure that detainees are treated in a humane 
manner consistent with the international obligations of the 
United States and the aforementioned policies on the treatment 
of detainees; would set out minimum criteria for these 
policies; and would require that the Secretary certify that 
federal employees and contractor personnel involved with 
handling or interrogation of detainees have fulfilled annual 
training requirements on the law of war and U.S. obligations 
under international law.
      Finally, the amendment contains several reporting 
requirements, including a requirement that the policies 
prescribed be forwarded by the Secretary to the Committees on 
Armed Services of the Senate and the House of Representatives 
within 30 days. The Secretary is to report to the committees 
within one year after prescribing the policies on further steps 
taken to implement them. Nine months after enactment and 
annually thereafter, the Secretary would be required to submit 
to the committees a report giving notice of any investigations 
into violations of international or U.S. law regarding the 
treatment of detainees; and aggregate data on foreign national 
detainees in the custody of the Department of Defense during 
the prior year. The reporting provisions of this provision 
expire on December 31, 2007.
Findings and sense of Congress concerning Army Specialist Joseph Darby 
        (sec. 1094)
      The House bill contained a provision (sec. 1206) that 
would recognize and thank U.S. Army Specialist Joseph Darby for 
his courageous actions in alerting his superiors to misconduct 
by American soldiers at Abu Ghraib prison in Iraq, and express 
the sense of Congress that Specialist Darby should be afforded 
appropriate protection and recognition by the Department of 
Defense.
      The Senate amendment contained no similar provision.
      The Senate recedes.

                   Legislative Provisions Not Adopted

Reduction in overall authorization due to inflation savings
      The Senate amendment contained a provision (sec. 1003) 
that would reduce the amount authorized to be appropriated to 
the Department of Defense by $1.7 billion to reflect the 
reduced inflation estimates in the Congressional Budget 
Office's annual review of the budget.
      The House bill contained no similar provision.
      The Senate recedes.
Authority to waive claims of the United States when amounts recoverable 
        are less than costs of collection
      The House bill contained a provision (sec. 1004) that 
would authorize the Secretary of Defense or his designee to 
waive indebtedness when the cost of processing the transaction 
exceeds the amounts recoverable. The maximum amount that may be 
waived under this statue would be the micro-purchase threshold, 
currently $2,500.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees request that the Department of Defense 
provide the following information: (1) proposed regulations for 
the purposes of this section; (2) how this authority will be 
used with the existing law related to claims or debt 
collection, including the Debt Collection Improvement Act; (3) 
the number of estimated transactions that will be used with 
this authority regarding amounts owed by members of the Armed 
Forces and Department civilian personnel; (4) the number of 
estimated transactions that will be used with this authority 
regardingamounts owed by contractors; and (5) the procedures 
that will be implemented to track debts waived for members of the Armed 
Forces and Department civilian personnel for tax implications.
Report on amounts remitted and reimbursed during fiscal year 2004 under 
        section 1007 of Public Law 108-136
      The House bill contained a provision (sec. 1008) that 
would require the Secretary of Defense to submit a report not 
later than 30 days after the end of fiscal year 2004 on amounts 
remitted and reimbursed during fiscal year 2004 under section 
1007 of the National Defense Authorization Act for Fiscal Year 
2004 (Public Law 108-136; 117 Stat. 1585; 10 U.S.C. 2241 note).
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees note that section 1007 of the National 
Defense Authorization Act for Fiscal Year 2004 permits funds 
appropriated to the Department of Defense to be transferred to 
the Department of State as payment for a fee charged by the 
Department of State for maintenance, upgrade, or construction 
of U.S. diplomatic facilities only to the extent that the 
amount charged in any given year exceeds the total amount of 
unreimbursed costs incurred by the Department of Defense during 
that year in providing goods and services to the Department of 
State. Section 8067 of the Defense Appropriations Act for 
Fiscal Year 2005 permits funds appropriated to the Department 
of Defense to be transferred to the Department of State as 
remittance for a fee charged by the Department of State for 
fiscal year 2005 for maintenance, upgrade, or construction of 
U.S. diplomatic facilities only to the extent that the amount 
of the fee so charged exceeds the total amount of the 
unreimbursed costs incurred by the Department of Defense during 
that fiscal year in providing goods and services to the 
Department of State.
      The conferees further note that the capital security cost 
sharing program has not been authorized by the Congress. While 
the conferees recognize the need to upgrade and construct new 
U.S. diplomatic facilities, the conferees oppose the use of a 
capital cost sharing program as a means of accomplishing this 
goal. As currently described by the administration, the capital 
cost sharing program does not take into account the goods and 
services that other departments and agencies provide to the 
Department of State at no cost. The conferees urge the 
administration to request sufficient funds for the Department 
of State in future year budget requests to provide for the 
costs of upgrading or constructing U.S. diplomatic facilities.
Limitation on leasing of foreign-built vessels
      The House bill contained a provision (sec. 1014) that 
would restrict the secretary of a military department from 
entering into a contract for a lease or charter of a vessel for 
a term of more than 12 months, including all options to renew 
or extend the contract, if the hull, a major component of the 
hull, or superstructure of the vessel is constructed in a 
foreign shipyard. This provision includes a clause by which the 
President could make an exception to this limitation if the 
President determines it is in the national security interest of 
the United States to do so.
      The Senate amendment contained no similar provision.
      The House recedes.
Report on availability of potential overland ballistic missile defense 
        test ranges
      The Senate amendment contained a provision (sec. 1025) 
that would require the Secretary of Defense to submit a report 
to Congress assessing the availability of potential ballistic 
missile defense test ranges for overland intercept flight tests 
of defenses against ballistic missiles with a range of 750-1500 
kilometers.
      The House bill amendment contained no similar provision.
      The Senate recedes.
      The conferees direct the Secretary of Defense to submit a 
report to the congressional defense committees by February 1, 
2005, that assesses the availability of potential ballistic 
missile defense test ranges for overland intercept flight tests 
of defenses against ballistic missiles with a range of 750-1500 
kilometers.
Sense of Congress on space launch ranges
      The Senate amendment contained a provision (sec. 1035) 
that would express the sense of Congress that the Secretary of 
Defense should provide support for and continue the development 
of range safety systems to reduce costs and enhance technical 
capabilities and operational safety at U.S. space launch 
ranges.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees continue to believe that safe, effective, 
and efficient space launch ranges are key to assured access to 
space. The conferees are aware of ongoing efforts to develop, 
test, and certify launch range technology based on Global 
PositioningSystem signals and inertial navigation that holds 
promise to improve down-range reentry support, increase launch support 
capability, lower range support costs, and improve range safety. The 
conferees encourage the Department of Air Force to support these 
efforts.
Compensation for former prisoners of war
      The Senate amendment contained a provision (sec. 1055) 
that would require that any plan of the Secretary of Defense to 
provide compensation to an individual who was injured in a 
military prison under the control of the United States in Iraq 
shall include a provision to address the injuries suffered by 
the citizens of the United States who were held as prisoners of 
war by the regime of Saddam Hussein during the First Gulf War.
      The House bill contained no similar provision.
      The Senate recedes.
Phased implementation of new program for transporting household goods 
        of members of the Armed Forces
      The House bill contained a provision (sec. 1065) that 
would prohibit the Secretary of Defense from implementing the 
new program, ``Families First'' for the transportation of 
household goods of members of the Armed Forces and their 
dependents beyond phase I of the program until the Secretary 
submits to Congress a report evaluating whether phase I met its 
objectives and whether it is in the best interest of the 
Department of Defense and members of the Armed Forces to move 
forward to phase II of the program.
      The Senate amendment contained no similar provision.
      The House recedes.
Repeal of quarterly reporting requirement concerning payments for 
        District of Columbia water and sewer services and establishment 
        of annual report by Treasury
      The Senate amendment contained a provision (sec. 1067) 
that would amend the District of Columbia Public Works Act of 
1954, as amended, to repeal the requirement that the Inspector 
General of each federal department or agency receiving water or 
sewer services from the District of Columbia submit quarterly 
reports, analyzing the promptness of payments for such 
services. These reports would be replaced by an annual report 
on payments for these services submitted by the Secretary of 
the Treasury to the Committees on Appropriations of the Senate 
and the House and Representatives, the Committee on 
Governmental Affairs of the Senate, and the Committee on 
Government Reform of the House of Representatives.
      The House bill contained no similar provision.
      The Senate recedes. The conferees anticipate that this 
issue will be addressed in other legislation.
Assistance for study of feasibility of biennial international air trade 
        show in the United States and for initial implementation
      The House bill contained a provision (sec. 1072) that 
would require the Secretary of Defense to select and provide 
assistance to a community in conducting a joint study to 
determine the feasibility of establishing an international air 
trade show in that community.
      The Senate amendment contained no similar provision.
      The House recedes.
Commission on the long-term implementation of the new strategic posture 
        of the United States
      The House bill contained a provision (sec. 1074) that 
would establish a new commission to review the long-term 
implementation of Nuclear Posture Review recommendations.
      The Senate amendment contained no similar provision.
      The House recedes.
Grant of federal charter to Korean War Veterans Association, 
        Incorporated
      The Senate amendment contained a provision (sec. 1074) 
that would modify title 36, United States Code, to grant a 
federal charter to the Korean War Veterans Association, 
Incorporated.
      The House bill contained no similar provision.
      The Senate recedes.
Assignment of members to assist Bureau of Border Security and Bureau of 
        Citizenship and Immigration Services of the Department of 
        Homeland Security
      The House bill contained a provision (sec. 1077) that 
would authorize the Secretary of Defense to assign members of 
the Army, Navy, Air Force, and Marine Corps to assist the 
Bureau of Border Security and the U.S. Customs Service of the 
Department of Homeland Security in preventing the entry of 
terrorists, drug traffickers, and illegal aliens into the 
United States; and to aid in the inspection of cargo, vehicles, 
and aircraft at points of entry into the United States to 
prevent the entry of weapons of mass destruction, prohibited 
narcotics or drugs, or other terrorist or drug trafficking 
items.
      The Senate amendment contained no similar provision.
      The House recedes.
Sense of the Senate on American Forces Radio and Television Service
      The Senate amendment contained a provision (sec. 1077) 
that would express the sense of the Senate that the mission 
statement and policies of the American Forces Radio and 
Television Service appropriately state the goal of maintaining 
equal opportunity balance with respect to political programming 
and that the Secretary of Defense should ensure that these 
policies are fully being implemented.
      The House bill contained no similar provision.
      The Senate recedes.
Extension of scope and jurisdiction for current fraud offenses
      The Senate amendment contained a provision (sec. 1080) 
that would provide for extraterritorial jurisdiction under the 
provisions of section 1001 of title 18, United States Code, 
dealing with false statements or entries and section 1031 of 
that title, dealing with major fraud against the United States.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees believe that existing law adequately 
addresses the situation.
Broadcast Decency Enforcement Act of 2004
      The Senate amendment contained several provisions (sec. 
1084-1089) that would (1) amend the Communications Act of 1934 
(47 U.S.C. 151 et seq.) to increase the penalties for 
broadcasting obscene, indecent, or profane language; (2) 
provide mitigating factors for such penalties; (3) make 
findings on media concentration and suspend the media 
concentration rules adopted by the Federal Communications 
Commission in June, 2003; and (4) prohibit the distribution of 
violent video programming not blockable by electronic means.
      The House bill contained no similar provision.
      The Senate recedes.
Local Law Enforcement Enhancement Act of 2004
      The Senate amendment contained several provisions (sec. 
3401-3410) that would constitute the ``Local Law Enforcement 
Enhancement Act of 2004.'' The Attorney General, at the request 
of a State or tribal law enforcement official, could provide 
assistance in the investigation or prosecution of certain hate 
crimes. The Attorney General could also award grants to State, 
local, and tribal law enforcement officials to assist with the 
investigation and prosecution of such crimes. Chapter 13 of 
title 18, United States Code, would be amended to establish a 
substantive federal prohibition of certain specific hate crime 
acts. No prosecution could be undertaken under this section 
without certification from the Attorney General or certain 
other officials of the Department of Justice.
      The House bill contained no similar provision.
      The Senate recedes.
                  TITLE XI--CIVILIAN PERSONNEL MATTERS

                       Items of Special Interest

Fort Meade--work related illnesses
      The conferees are concerned with continued reports of 
work related illnesses among the National Security Agency (NSA) 
employees at Fort Meade, Maryland. The conferees direct the 
Secretary of Defense to undertake an epidemiological study and 
health hazard evaluation related to NSA buildings at Fort 
Meade. The conferees believe the National Institute for 
Occupational Safety and Health of the Department of Health and 
Human Services is an appropriate federal government 
organization to perform such a study. The conferees expect the 
study to be completed by March 2006.

                     Legislative Provisions Adopted

Payment of Federal employee health benefit premiums for mobilized 
        Federal employees (sec. 1101)
      The House bill contained a provision (sec. 1101) that 
would authorize a federal government employee, who is a member 
of a Reserve component ordered to active-duty in support of a 
contingency operation and placed on leave without pay, to 
continue to receive coverage under the Federal Employee Health 
Benefit Program for 24 months. The provision would also 
authorize the agency to pay both the employee's share and the 
agency's share of the premiums for continued coverage up to 24 
months.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Foreign language proficiency pay (sec. 1102)
      The House bill contained a provision (sec. 1102) that 
would eliminate the restriction in current law that foreign 
language proficiency pay may be paid only to those civilian 
employees working in support of contingency operations.
      The Senate amendment contained a similar provision (sec. 
1102).
      The House recedes with an amendment to require that the 
authority for foreign language proficiency pay will take effect 
on the first day of the first month that begins after the date 
of enactment of this Act.
Pay and performance appraisal parity for civilian intelligence 
        personnel (sec. 1103)
      The House bill contained a provision (sec. 1103) that 
would require the Secretary of Defense to fix the rates of 
basic pay for employees within the Department's Civilian 
Intelligence Personnel System in relation to rates of pay 
provided for their counterparts elsewhere within the Department 
of Defense. The provision would repeal maximum rates of pay and 
outline the performance appraisal system for senior executive 
service personnel.
      The Senate amendment contained a similar provision (sec. 
1103) that would also require the implementation of an 
appraisal system for Defense Intelligence Senior Executive 
Service personnel comparable to that provided for other senior 
executive service personnel in the Department of Defense that 
would make meaningful distinctions based on performance.
      The House recedes with an amendment to clarify that pay 
rates for defense civilian intelligence personnel would be 
established in relation to the rates of pay provided for 
comparable positions in the Department of Defense, and subject 
to the same limitations on maximum rates of pay established for 
employees of Defense by law or regulation. The amendment would 
recede to the Senate's version of the performance appraisal 
system for senior executive service personnel in the Defense 
Intelligence Personnel System.
Pay parity for senior executives in defense nonappropriated fund 
        instrumentalities (sec. 1104)
      The House bill contained a provision (sec. 1104) that 
would authorize the Secretary of Defense to adjust the pay cap 
for Department of Defense nonappropriated fund executives to 
ensure that the compensation paid to such employees remains 
consistent with the Senior Executive Service employees.
      The Senate amendment contained a similar provision (sec. 
1105).
      The House recedes with a technical amendment.
      The conferees intend that in order to qualify for higher 
pay, the nonappropriated fund executives would meet performance 
standards established in a rigorous performance management 
system as required for federal civil service employees under 
section 5382 of title 5, United States Code.
Science, mathematics and research for transformation (SMART) defense 
        scholarship pilot program (sec. 1105)
      The Senate amendment contained a provision (sec. 1101) 
that would establish a pilot program within the Department of 
Defense to provide targeted educational assistance to 
individuals seeking a baccalaureate or an advanced degree in 
science and engineering disciplines that are critical to 
national security. This provision would allow individuals to 
acquire such education in exchange for a period of employment 
with the Department in the areas specified.
      The House bill contained no similar provision.
      The House recedes.
Report on how to recruit and retain individuals with foreign language 
        skills (sec. 1106)
      The Senate amendment contained a provision (sec. 1108) 
that would require the Secretary of Defense to submit a plan to 
the congressional defense and intelligence committees with the 
fiscal year 2006 budget request for expanding and improving the 
national security foreign language workforce of the Department 
of Defense, on both a near-term and a long-term basis.
      The House bill contained no similar provision.
      The House recedes with a technical amendment that would 
require the Secretary to submit the required plan to the 
congressional defense and intelligence committees no later than 
March 31, 2005, and incorporate the findings of the Senate's 
provision into this statement of managers.
      The conferees agree that strengthening the foreign 
language workforce of the Department is a critical step in 
winning the global war on terrorism and improving the national 
security of the United States. The conferees find that: (1) The 
Federal Government has a requirement to ensure that the 
employees of its departments and agencies with national 
security responsibilities are prepared to meet the challenges 
of the current and future international environment; (2) 
According to a 2002 General Accounting Office report, federal 
agencies have shortages in translators and interpreters and an 
overall shortfall in the language proficiency levels needed to 
carry our their missions, which has adversely affected agency 
operations and hindered U.S. military, law enforcement, 
intelligence, counterterrorism, and diplomatic efforts; (3) 
Foreign language skills and area expertise are integral to, or 
directly support, every foreign intelligence discipline and are 
essential factors in national security readiness, information 
superiority, and coalition peacekeeping or warfighting 
missions; (4) Communicating in languages other than English and 
understanding and accepting cultural and societal differences 
are vital to the success of peacetime and wartime military and 
intelligence activities; (5) Proficiency levels required for 
foreign language support to national security functions have 
been raised, and what was once considered proficiency is no 
longer the case; (6) According to the Joint Intelligence 
Committee Inquiry into the 9/11 Terrorist Attacks, the U.S. 
intelligence community had insufficient linguists prior to 
September 11, 2001, to handle the challenge it faced in 
translating the volumes of foreign language counterterrorism 
intelligence it collected, including a readiness level of only 
30 percent in the most critical languages that are used by 
terrorists; and (7) Because of this shortage, the Federal 
Government has had to enter into private contracts to procure 
linguist and translator services, including some positions that 
would be more appropriately filled by permanent federal 
employees or members of the U.S. Armed Forces.
      The conferees expect the Secretary to formulate a 
comprehensive, achievable plan for improving the foreign 
language workforce of the Department, both military and 
civilian, and to work closely with other agencies of the 
Federal Government to ensure that the foreign language 
requirements of the United States are met.
Plan on implementation and utilization of flexible personnel management 
        authorities in Department of Defense laboratories (sec. 1107)
      The Senate amendment contained a provision (sec. 1109) 
that would require the Under Secretary of Defense for 
Acquisition, Technology and Logistics and the Under Secretary 
of Defense for Personnel and Readiness to jointly develop and 
submit to the Committees on Armed Services in the Senate and 
the House of Representatives a plan for the effective 
utilization of specific personnel management authorities 
designed to increase the missionresponsiveness, efficiency, and 
effectiveness of Department of Defense laboratories.
      The House bill contained no similar provision.
      The House recedes with an amendment that would change the 
reporting requirements associated with the plan.
      The conferees note that Secretary of the Navy Gordon 
England's letter to the Committee on Government Reform of the 
House of Representatives, dated April 26, 2004, stated that the 
Department ``will not impose Best Practices in those 
laboratories that are temporarily exempt'' from the National 
Security Personnel System. The Secretary further stated that 
the Department's laboratories ``should be able to continue 
individually to refine and evolve their `successfully tailored 
systems' over the next several years if they determine that 
such adjustments are beneficial and not disruptive to their 
workforce.''

                   Legislative Provisions Not Adopted

Accumulation of annual leave by intelligence senior-level employees
      The Senate amendment contained a provision (sec. 1104) 
that would permit intelligence senior-level employees of the 
Department of Defense to accumulate annual leave in a manner 
identical to the Department's Senior Executive Service.
      The House bill contained no similar provision.
      The Senate recedes.
Prohibition of unauthorized wearing or use of civilian medals or 
        decorations
      The House bill contained a provision (sec. 1105) that 
would prohibit any person from merchandising or wearing a 
Department of Defense civilian medal or decoration without the 
written permission of the Secretary of Defense. The provision 
would also authorize the Attorney General to initiate a civil 
proceeding in a U.S. district court to enjoin the prohibited 
practice.
      The Senate amendment contained no similar provision.
      The House recedes.
              TITLE XII--MATTERS RELATING TO OTHER NATIONS

                     Legislative Provisions Adopted

 Subtitle A--Matters Relating to Iraq, Afghanistan, and Global War on 
                               Terrorism

Commanders' Emergency Response Program (sec. 1201)
      The House bill contained a provision (sec. 1203) that 
would authorize the Secretary of Defense to use, 
notwithstanding any other provision of law, up to $300.0 
million in operations and maintenance funding for additional 
costs due to Operation Iraqi Freedom and Operation Enduring 
Freedom for the Commanders' Emergency Response Program (CERP), 
under which commanders in Iraq and Afghanistan receive funds 
for use in small humanitarian and reconstruction projects in 
their areas of responsibility. The provision would require 
quarterly reports on the source and use of funds pursuant to 
this program.
      The Senate amendment contained a similar provision (sec. 
311), but did not include the phrase ``notwithstanding any 
other provision of law.''
      The Senate recedes with an amendment that would provide 
the Secretary authority to waive any provision of law that 
would prohibit, restrict, limit or otherwise constrain 
implementation of the CERP program in Iraq and Afghanistan. The 
provision would also require the Secretary to submit a report 
within 120 days to the Committees on Armed Services of the 
Senate and the House of Representatives identifying all 
provisions of law that, if not waived, would prohibit, 
restrict, limit or otherwise constrain implementation of the 
CERP program in Iraq and Afghanistan. In the event that the 
Secretary identifies additional such provisions of law after 
the report is submitted to the Committees on Armed Services of 
the Senate and the House of Representatives, the conferees 
expect the Secretary to send supplemental reports with the 
requested information to those committees.
Assistance to Iraq and Afghanistan military and security forces (sec. 
        1202)
      The Senate amendment contained a provision (sec. 1053) 
thatwould authorize the Secretary of Defense, with the 
concurrence of the Secretary of State, to use up to $250.0 million in 
operations and maintenance funding to provide assistance in fiscal year 
2005 to Iraq and Afghanistan military or security forces solely to 
enhance their ability to combat terrorism and support United States or 
coalition military operations in Iraq and Afghanistan, respectively.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
the Secretary of Defense to use up to $500.0 million in 
operations and maintenance funding for additional costs due to 
Operation Iraqi Freedom and Operation Enduring Freedom to 
provide assistance in fiscal year 2005 to Iraq and Afghanistan 
military or security forces solely to enhance their ability to 
combat terrorism and support United States or coalition 
military operations in Iraq and Afghanistan, respectively. The 
provision defines ``military and security forces'' to mean 
national armies, national guard forces, border security forces, 
civil defense forces, infrastructure protection forces, and 
police.
      The conferees note that the authority provided by this 
provision would not permit the provision of assistance to 
nongovernmental or irregular forces such as private militias. 
The conferees expect the prior notifications to the 
congressional defense committees to include detailed 
information regarding the proposed amounts of funds to be 
spent, recipients of the funds, and the specific purposes for 
which the funds would be used.
Redesignation and modification of authorities relating to Inspector 
        General of the Coalition Provisional Authority (sec. 1203)
      The Senate amendment contained a provision (sec. 1059B) 
that would amend the Emergency Supplemental Appropriations Act 
for Defense and Reconstruction of Iraq and Afghanistan, 2004 
(Public Law 108-106), to establish the Office of Special 
Inspector General for Iraq Reconstruction; to provide for the 
continuation in office of the individual presently serving as 
Inspector General of the Coalition Provisional Authority; to 
provide that the Inspector General shall be responsible to the 
Secretaries of State and Defense; to provide for support of the 
Inspector General at appropriate locations of the Department of 
State in Iraq; to provide for reporting by the Inspector 
General to the Secretaries of State and Defense; to provide for 
jurisdiction of the Inspector General over sums appropriated to 
the Iraq Relief and Reconstruction Fund; to provide for 
coordination by the Inspector General with the Inspectors 
General of the Departments of State and Defense and the Agency 
for International Development; to allow personnel of the 
Inspector General to carry firearms and make arrests in the 
line of duty with the permission of the Attorney General; and 
to provide for the termination of the Office of the Special 
Inspector General.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Presidential report on strategy for the stabilization of Iraq (sec. 
        1204)
      The House bill contained a provision (sec. 1204) that 
would require the Secretary of Defense to submit a strategic 
plan on how the United States will achieve the goal of 
establishing capable Iraqi security forces to provide for the 
long-term security of the Iraqi people.
      The Senate amendment contained a similar provision (sec. 
1029E) that would require the President to submit a report on 
the strategy of the United States and coalition partners to 
stabilize Iraq, including the training and deployment of Iraqi 
security forces, as well as the participation of other 
international police and military forces.
      The House recedes with an amendment that would 
incorporate the House provision into the Senate provision and 
require a single Presidential report, followed by quarterly 
updates from the Secretary of Defense, in conjunction with the 
Secretary of State, during calendar year 2005. Each quarterly 
report shall address the following: the number of forces 
recruited, currently serving, and that have left (along with a 
breakdown of the reasons for leaving) by service over the 
period in question; progress in meeting training goals; 
progress in achieving other metrics as identified in the 
strategic plan; and a description and analysis of any training 
incidents and deployment successes and failures, with a 
discussion of how those incidents and successes will affect 
future efforts to achieve the goals of the strategic plan.
Guidance on contractors supporting deployed forces in Iraq (sec. 1205)
      The House bill contained a provision (sec. 1205) that 
would require the Secretary of Defense to issue guidance and a 
report on contractors supporting deployed forces in Iraq.
      The Senate amendment contained a similar provision 
(sec.864). In addition, the Senate amendment contained a provision 
(sec. 865) that would require a report on contractor performance of 
security, intelligence, law enforcement, and criminal justice functions 
in Iraq.
      The Senate recedes with an amendment that would provide 
additional detail on the guidance to be issued. The amendment 
would require that the Secretary's guidance address the issue 
of contractor performance of security, intelligence, law 
enforcement, and criminal justice functions. The conferees 
expect the guidance to address the full range of security, 
intelligence, law enforcement, and criminal justice functions 
that are being performed by contractors in support of current 
military operations or are anticipated to be performed by 
contractors in support of future military operations.
      The amendment would also require that the guidance 
address: (1) investigating background and qualifications of 
contractor security personnel and organizations; and (2) 
ensuring proper training and compliance with rules of 
engagement by armed contractor security personnel. The 
conferees take no position as to whether such investigations 
and training should be conducted by Department of Defense 
personnel or by contractor personnel subject to Department 
oversight.
      The conferees expect the Secretary to coordinate, as 
appropriate, with the heads of other departments and agencies 
of the Federal Government that would be affected by the 
implementation of the guidance.
      In addition, the conferees expect the Secretary, in 
preparing the guidance required by this section, to address 
options for enhancing contractor security and reducing 
contractor security costs in current and future armed 
conflicts. The options considered should include: (1) temporary 
commissioning of contractor security personnel as Reserve 
component officers in order to subject such personnel to the 
military chain of command; (2) requiring contractor security 
personnel to obtain security clearances to facilitate the 
communication of critical threat information; (3) establishing 
a contract schedule for companies furnishing contractor 
security personnel to provide a more orderly process for the 
selection, training, and compensation of such personnel; (4) 
establishing a contract schedule for companies to provide more 
cost-effective insurance for contractor security personnel; and 
(5) providing for U.S. indemnification of contractors to reduce 
the costs of insuring contractor security personnel. The report 
required by subsection (c) should explain the rationale for the 
Secretary's decision to implement or not to implement these 
options.
Report on contractors supporting deployed forces and reconstruction 
        efforts in Iraq (sec. 1206)
      The Senate amendment contained a provision (sec. 1021) 
that would require a report on contractor security in Iraq.
      The House bill contained no similar provision.
      The House recedes with an amendment that would clarify 
the reporting requirements.
      With regard to contractor casualties and fatalities, the 
report would include: (1) a plan for establishing and 
implementing a process for collecting data on casualties and 
fatalities; and (2) a requirement for data on casualties and 
fatalities that have occurred since the conclusion of major 
combat operations in Iraq. The conferees understand that the 
Department of Defense has not yet established a comprehensive 
system for collecting data on contractor casualties and 
fatalities and do not believe that the requirement to provide 
retrospective data should be, or needs to be, implemented in a 
manner that would become burdensome on the combatant command or 
on combat units, but should be done in a manner and to an 
extent that does not undermine military operations. The 
conferees believe that the Department should be able to collect 
this information accurately and comprehensively from the 
contractors themselves. The requirement to establish a plan for 
collecting contractor casualty and fatality data in the future 
should ensure that such data is collected routinely and 
uniformly.
      With regard to the requirement to establish a plan for 
establishing and implementing a process for collecting data on 
contractors performing security functions in Iraq, the 
conferees understand that the categories of security functions 
performed by contractors are not mutually exclusive and expect 
the Department to indicate any overlap to the best of its 
ability.
United Nations Oil-for-Food Program (sec. 1207)
      The Senate amendment contained a provision (sec. 1058) 
that would: (1) require the Inspector General of the Department 
of Defense to ensure, not later than June 30, 2004, the 
security of all documents relevant to the United Nations Oil-
for-Food Program that are in the possession or control of the 
Coalition Provisional Authority; (2) require executive agencies 
to provide to the Senate committees of jurisdiction access to 
documents and information relevant to the Oil-for-Food Program; 
(3) call on the Secretary of State to urge the Secretary 
General of the United Nations to provide the United States 
copies of all audits and core documents related to the Oil-for-
Food Program; and (4) require the Comptroller General to 
conduct a review of United States oversight of the Oil-for-Food 
Program.
      The House bill contained no similar provision.
      The House recedes with an amendment that would: (1) 
express the sense of Congress that the Secretary of State 
should seek to conclude a Memorandum of Understanding with the 
Iraq Interim Government to ensure that the United States will 
have access to all documents in the possession of the Iraq 
Interim Government related to the United Nations Oil-for-Food 
Program; (2) require executive agencies to provide to 
congressional committees of jurisdiction access to documents 
and information relevant to the Oil-for-Food Program; (3) call 
on the Secretary of State to urge the Secretary General of the 
United Nations to provide the United States copies of all 
audits and core documents related to the Oil-for-Food Program; 
and (4) require the Comptroller General to conduct a review of 
the Oil-for-Food Program, including the role of the United 
States.
      The conferees note their understanding that the phrase 
``committee of jurisdiction'' includes, but is not limited to, 
the Committees on Armed Services of the Senate and House of 
Representatives, and the Permanent Subcommittee on 
Investigations of the Committee on Governmental Affairs of the 
Senate.
Support of military operations to combat terrorism (sec. 1208)
      The House bill contained a provision (sec. 1202) that 
would authorize the Secretary of Defense to expend up to $25.0 
million during fiscal years 2005 to 2007 to provide support to 
foreign forces, irregular forces, groups, or individuals 
engaged in supporting or facilitating ongoing military 
operations by the U.S. Special Operations Forces to combat 
terrorism. The provision would not, however, constitute 
authority to conduct a covert action. The Secretary would be 
required to submit a report on the support provided under this 
section within 30 days of the close of each fiscal year.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary to establish procedures for the exercise of such 
authority and to notify the congressional defense committees of 
these procedures prior to the exercise of authority contained 
in the provision. Additionally, the amendment would require the 
Secretary to notify the congressional defense committees 
expeditiously, and in any event, within 48 hours, of the use of 
such authority as part of an approved military operation, and 
would prohibit the Secretary from delegating this authority.
      The conferees intend that nothing in this provision shall 
constitute specific statutory authorization within the meaning 
of section 5(b) of the War Powers Resolution (Public Law 93-
148) or to supercede any requirement of the War Powers 
Resolution.
Report on al Qaeda activity in the Western Hemisphere (sec. 1209)
      The conferees agree to include a provision that would 
direct the Secretary of Defense, in consultation with the 
Secretary of State to submit to the committees on Armed 
Services of the Senate and House of Representatives of Congress 
a report on the activities of al Qaeda and associated groups in 
Latin America and Caribbean, including (1) an assessment of the 
extent to which such groups have established a presence in the 
area; (2) a description of activities of such groups in the 
area, including fund-raising, money laundering, 
narcotrafficking, and association with criminal groups; (3) an 
assessment of the threat posed by such groups to the peace and 
stability of nations in the area and to United States 
interests; and (4) a description of the United States policies 
intended to deal with such a threat. The provision would 
require that an unclassified report, with a classified annex as 
necessary, be submitted no later than 180 days after the date 
of enactment of this Act. The conferees note their concern 
about potential al Qaeda activity in the Western Hemisphere, 
and the indirect and direct threat to United States national 
security that such activity represents.

                Subtitle B--Counterproliferation Matters

Defense international counterproliferation programs (sec. 1211)
      The House bill contained a provision (sec. 1411) that 
would authorize the Secretary of Defense to expand existing 
programs to train foreign border and law enforcement officials 
in preventing the illicit transfer of weapons of mass 
destruction in the states of the former Soviet Union, Eastern 
Europe, and the Baltic States, by granting the Secretary 
authority to conduct those programs in any other country in 
which the Secretary determines a significant threat exists.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Policy and sense of Congress on nonproliferation of ballistic missiles 
        (sec. 1212)
      The Senate amendment contained a provision (sec. 1071) 
that would establish the policy of the United States to 
develop, support, and strengthen efforts to curtail the 
proliferation of ballistic missiles and related technology. The 
provision would also express the sense of Congress that 
ballistic missileproliferation represents a threat to the 
United States and its allies and friends which has been slowed by a 
variety of means, and that steps to prevent such proliferation should 
be vigorously pursued.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Sense of Congress on the Global Partnership against the Spread of 
        Weapons of Mass Destruction (sec. 1213)
      The Senate amendment contained a provision (sec. 1059) 
that would express the sense of Congress that the President 
should be commended for the steps taken at the G-8 summit at 
Sea Island, Georgia, on June 8-10, 2004, to demonstrate 
continued support for the Global Partnership against the Spread 
of Nuclear Weapons and Materials of Mass Destruction, and to 
expand the Global Partnership by welcoming new members and 
using the partnership to coordinate nonproliferation projects 
in Libya, Iraq, and other countries. The provision would also 
call on the President to take a number of specific steps to 
strengthen the partnership.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Report on collaboration to reduce the risks of a launch of Russian 
        nuclear weapons (sec. 1214)
      The House bill contained a provision (sec. 1423) that 
makes certain findings and would require the Secretary of 
Defense to submit a report to Congress by November 1, 2005 on 
steps that might be taken to reduce the danger of unauthorized 
or accidental ballistic missile launches.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary to submit a report to Congress by November 1, 
2005 on current and future collaborative efforts to reduce the 
risk of unauthorized or accidental launches of nuclear armed 
ballistic missiles.
      The conferees recognize that a number of factors related 
to Russian Federation nuclear forces contribute to the risk of 
unauthorized or accidental launch of Russian ballistic 
missiles. These factors include: the high state of readiness of 
the Russian Federation intercontinental ballistic missile 
force; the remote location of many of these forces; 
shortcomings in the Russian Federation's early warning system; 
the short decision time available to the Russian Federation 
President after being informed of a possible nuclear attack; 
the possibility that the Russian Federation, because of 
concerns that its nuclear forces would not survive a nuclear 
attack, may have a nuclear deterrence posture that relies on 
launching a retaliatory strike on warning of nuclear attack; 
deficiencies in the security and control of Russian Federation 
nuclear forces; and the susceptibility of nuclear strategic 
command and control systems and early warning systems to an 
intrusion or accident that could create the false impression 
that a nuclear ballistic missile attack is underway. The 
conferees believe that collaborative measures between the 
United States and the Russian Federation and continued high-
level discussions between U.S. and Russian Federation military 
leaders could be useful in reducing these risks.

                       Subtitle C--Other Matters

Authority for humanitarian assistance for the detection and clearance 
        of landmines extended to include other explosive remnants of 
        war (sec. 1221)
      The Senate amendment contained a provision (sec. 1051) 
that would add a new section to chapter 20 of title 10, United 
States Code, to authorize the Secretary of Defense to provide 
military training, education, and technical assistance to 
foreign nations for the purpose of detecting and clearing 
landmines or other explosive remnants of war. The provision 
would clarify existing law by separating authority to conduct 
humanitarian mine clearing actions from the authority to 
conduct humanitarian and civic assistance, and recognize the 
requirement to detect and clear other explosive remnants of 
war, in addition to landmines.
      The House bill contained no similar provision.
      The House recedes with an amendment that would amend 
section 401 of title 10, United States Code, to include 
explosive remnants of war, but would not establish a new 
category for humanitarian activity.
Expansion of entities of the People's Republic of China subject to 
        certain Presidential authorities when operating in the United 
        States (sec. 1222)
      The House bill contained a provision (sec. 1212) that 
would expand the definition of a ``Communist Chinese military 
company'' as defined in the Strom Thurmond National Defense 
AuthorizationAct for Fiscal Year 1999 (Public Law 105-261) to 
include Chinese firms owned or operated by a ministry of the People's 
Republic of China or an entity affiliated with the defense industrial 
base of the People's Republic of China.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
Assignment of NATO naval personnel to submarine safety programs (sec. 
        1223)
      The House bill contained a provision (sec. 1211) that 
would authorize the Secretary of Defense to assign military 
personnel from NATO countries and specified other countries to 
U.S. commands for the purpose of working on the 
standardization, development, and interoperability of submarine 
safety and rescue systems and procedures.
      The Senate amendment contained a similar provision (sec. 
1054).
      The Senate recedes with an amendment that would: (1) 
limit the authority of the Secretary of the Navy to the 
assignment of members of the naval services of NATO nations in 
connection with this program; and (2) terminate this authority 
after September 30, 2008.
Availability of Warsaw Initiative Funds for new NATO Members (sec. 
        1224)
      The conferees agree to include a provision that would 
make available up to $4.0 million of Warsaw Initiative Funds in 
fiscal year 2005 for the participation of new North Atlantic 
Treaty Organization (NATO) Members (Bulgaria, Estonia, Latvia, 
Lithuania, Romania, Slovakia, and Slovenia) in the exercises 
and programs of the Partnership for Peace program. This 
authority would be available only in fiscal year 2005.
      The conferees note that Warsaw Initiative Funds are 
authorized for the participation of Partnership for Peace 
nations in the exercises and programs of NATO's Partnership for 
Peace program.
      In a letter to the Committees on Armed Services of the 
Senate and the House of Representatives, the Deputy Secretary 
of Defense requested that $4.0 million of these funds be 
available in fiscal year 2005 to new NATO members, specifically 
to work with remaining Partnership for Peace nations as they 
seek closer cooperation with NATO. The Deputy Secretary noted 
in his letter that in 1999, when Poland, Hungary, and the Czech 
Republic became NATO Members, a limited amount of Warsaw 
Initiative Funds continued into fiscal year 2000 for exercises 
and programs that had begun in fiscal year 1999, as well as for 
funding completion of program audits by local-hire 
administrative personnel in each of these countries.
      The conferees expect that the use of Warsaw Initiative 
Funds in fiscal year 2005 for new NATO Members will similarly 
be used for the purposes of completing exercises and programs 
that began in fiscal year 2004 and, as necessary, completing 
program audits in those countries.
Bilateral exchanges and trade in defense articles and defense services 
        between the United States and the United Kingdom and Australia 
        (sec. 1225)
      The Senate amendment contained a provision (sec. 1059A) 
that would provide an exception from the certain requirements 
of subsection (j) of section 38 of the Arms Export Control Act 
related to bilateral agreement requirements for the transfers 
of defense items for the Governments of Australia and the 
United Kingdom.
      The House contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary of State, in consultation with the Secretary of 
Defense, to expeditiously process any application for the 
export of defense items to the Governments of Australia and the 
United Kingdom without referral to any other Federal department 
of agency, except where the item is classified or exceptional 
circumstances apply.
Study on Missile Defense Cooperation (sec. 1226)
      The Senate amendment contained a provision (sec. 1070) 
that would require the Secretary of State and the Secretary of 
Defense to establish procedures for streamlining the export 
licensing review process for missile defense items and examine 
the feasibility of providing major project authorizations for 
programs related to missile defense similar to those 
established under section 126.14 of the International Traffic 
in Arms Regulations.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary of Defense, in consultation with the Secretary of 
State, to study the advisability and feasibility of 
establishingprocedures for streamlining the export licensing 
review process for missile defense items and providing major project 
authorizations for programs related to missile defense.

                   Legislative Provisions Not Adopted

Documentation of conditions in Iraq under former dictatorial government 
        as part of transition to post-dictatorial government
      The House bill contained a provision (sec. 1201) that 
would require the Secretary of Defense to establish a process 
for transferring to Iraqi entities documentation on the nature 
of the Saddam Hussein regime, including any documents or 
records that have been captured by U.S. military forces in Iraq 
regarding the activities of the Saddam Hussein government and 
individuals within that government.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees note that the Secretary has already 
transferred most of the noteworthy documentation and is sharing 
relevant information with the Iraqi government.
Sense of Congress regarding limitation on use of funds for the 
        reconstruction of Iraq
      The House bill contained a provision (sec. 1208) that 
would express the sense of Congress that no U.S. funds may be 
used for reconstruction activities in Iraq until the President 
certifies that the Government of Iraq has agreed to expend a 
significant portion of its oil production revenues on 
reconstruction activities.
      The Senate amendment contained no similar provision.
      The House recedes.
Sense of Congress on destruction of Abu Ghraib prison in Iraq
      The House bill contained a provision (sec. 1209) that 
would express the sense of Congress that the Secretary of 
Defense should assist the Government of Iraq in destroying the 
Abu Ghraib prison and replacing it with a modern detention 
facility.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees note that Abu Ghraib prison was one of the 
world's most notorious prisons during the rule of Saddam 
Hussein, and that recent misconduct at that prison by members 
of the U.S. Armed Forces have further highlighted the horrible 
memories associated with Abu Ghraib. The conferees further note 
the progress made in improving conditions at Abu Ghraib prison 
in recent months, combined with the limited options available 
to the Government of Iraq for adequate detention facilities, 
suggest that continued operation of the prison may be a 
necessity in the near-term. The conferees believe that the fate 
of Abu Ghraib prison is a decision for the sovereign Government 
of Iraq.
Report on Global Peace Operations Initiative
      The House bill contained a provision (sec. 1213) that 
would require the President to report to Congress on the Global 
Peace Operations Initiative (GPOI), a new program announced by 
the administration after the submission of the budget request.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees note that, traditionally, the training of 
foreign peacekeeping forces has been conducted by the 
Department of State under title 22 of the United States Code. 
The conferees further note that the administration has the 
necessary authority under title 22 to conduct GPOI as a foreign 
assistance program.
Procurement sanctions against certain foreign persons that transfer 
        certain defense articles and services to the People's Republic 
        of China
      The House bill contained a provision (sec. 1214) that 
would make it the policy of the United States to prevent 
destabilizing arms transfers to the People's Republic of China 
by denying Department of Defense procurement contracts to 
foreign companies that sell to China items similar to those 
found on the U.S. Munitions List. The provision would also 
require the Secretary of Defense to publish a list of such 
companies in the Federal Register.
      The Senate amendment contained no similar provision.
      The House recedes.
Military educational exchanges between senior officers and officials of 
        the United States and Taiwan
      The House bill contained a provision (sec. 1215) that 
would require the Secretary of Defense to undertake a program 
of senior military officer and senior official exchanges with 
Taiwan designed to improve Taiwan's defenses against the 
People's Liberation Army of the People's Republic of China.
      The Senate amendment contained no similar provision.
      The House recedes.
Definitions under Arms Export Control Act
      The House bill contained a provision (sec. 1401) that 
would amend the Arms Export Control Act (22 U.S.C. 2794) to 
clarify the definitions of ``license,'' ``agent,'' and 
``exporting agent.''
      The Senate amendment contained no similar provision.
      The House recedes.
Exemption from licensing requirements for export of significant 
        military equipment
      The House bill contained a provision (sec. 1402) that 
would amend the Arms Export Control Act (22 U.S.C. 2778(b)(2)) 
to prohibit the President from creating regulatory exemptions 
for significant military equipment that would otherwise require 
an export license.
      The Senate amendment contained no similar provision.
      The House recedes.
Cooperative projects with friendly foreign countries
      The House bill contained a provision (sec. 1403) that 
would amend the Arms Export Control Act (22 U.S.C. 2767) to: 
(1) permit the Congress to block a cooperative project 
agreement with a friendly foreign country; and (2) require a 
license for the export of defense articles or defense services 
relating to a cooperative project.
      The Senate amendment contained no similar provision.
      The House recedes.
Control of exports of United States weapons technology to the People's 
        Republic of China
      The House bill contained a provision (sec. 1404) that 
would require the President to require exporters of militarily 
critical technologies to obtain an export license for the 
export or re-export of any item on the Militarily Critical 
Technologies List published by the Department of Defense.
      The Senate amendment contained no similar provision.
      The House recedes.
Licensing requirement for export of militarily critical technologies
      The House bill contained a provision (sec. 1405) that 
would prohibit the export of certain technologies to 
individuals or countries engaged in the sale of such items to 
the security services of the People's Republic of China unless 
certain conditions are met. Such conditions would require that: 
a license be approved for that export; the Secretary of Defense 
concurs in the export; and the foreign person or country agrees 
in writing not to transfer title, possession of, or otherwise 
provide access to that item without prior written consent by 
the President.
      The Senate amendment contained no similar provision.
      The House recedes.
Strengthening international export controls
      The House bill contained a provision (sec. 1406) that 
would make it the policy of the United States to seek continued 
negotiations to strengthen the international export control 
system for sales of arms and militarily-sensitive goods and 
technologies to countries of concern. The provision would 
require a Presidential report on progress made in strengthening 
international controls 180 days after enactment of this Act and 
every six months thereafter.
      The Senate amendment contained no similar provision.
      The House recedes.
Defense counterproliferation fellowship program
      The House bill contained a provision (sec. 1412) that 
would direct the Secretary of Defense to establish a fellowship 
program to train and educate foreign defense policymakers and 
military officers in identifying and using counterproliferation 
tools to combat the spread of weapons of mass destruction.
      The Senate amendment contained no similar provision.
      The House recedes.
  TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER 
                              SOVIET UNION

                     Legislative Provisions Adopted

Specification of Cooperative Threat Reduction programs and funds (sec. 
        1301)
      The House bill contained a provision (sec. 1301) that 
would define the programs and funds that are Cooperative Threat 
Reduction (CTR) programs and funds, define the funds as those 
authorized to be appropriated in section 301 of this Act, and 
specify that CTR funds shall remain available for obligation 
for three fiscal years.
      The Senate amendment contained an identical provision 
(sec. 1201).
      The conferees agree to include this provision.
Funding allocations (sec. 1302)
      The House bill contained a provision (sec. 1302) that 
would authorize $409.2 million for the Cooperative Threat 
Reduction (CTR) program. The provision would also authorize 
specific amounts for each CTR program element, require 
notification to Congress 30 days before the Secretary of 
Defense obligates and expends fiscal year 2005 funds for 
purposes other than those specifically authorized, and provide 
limited authority to obligate amounts for a CTR program element 
in excess of the amount specifically authorized for that 
purpose.
      The Senate amendment contained a similar provision (sec. 
1202).
      The House recedes.
Temporary authority to waive limitation on funding for chemical weapons 
        destruction facility in Russia (sec. 1303)
      The House bill contained a provision (sec. 1303) that 
would provide the President authority for fiscal year 2005 to 
waive existing certification requirements before obligating 
funds for the construction of the Shchuch'ye chemical weapons 
destruction facility in Russia.
      The Senate amendment contained a provision (sec. 1203) 
that would provide the President permanent authority to waive, 
on an annual basis for each fiscal year, existing certification 
requirements before obligating funds for the construction of 
the Shchuch'ye chemical weapons destruction facility in Russia. 
The Senate amendment would also clarify that funds obligated, 
but not expended, prior to lapse of a previously executed 
waiver could be expended.
      The Senate recedes with an amendment that would provide 
the President authority through December 31, 2006, to waive, on 
an annual basis for each calendar year, existing certification 
requirements before obligating or expending funds for the 
construction of the Shchuch'ye chemical weapons destruction 
facility in Russia. This authority would expire on December 31, 
2006, and no waiver would remain in effect after that date.
      The conferees agree that providing waiver authority on a 
calendar year basis, rather than on a fiscal year basis, will 
minimize the risk of unintended interruptions in the program 
that could occur when fiscal year waiver authority is not 
renewed before the end of a fiscal year.
Inclusion of descriptive summaries in annual Cooperative Threat 
        Reduction reports and budget justification materials (sec. 
        1304)
      The Senate amendment contained a provision (sec. 1204) 
that would clarify that the Secretary of Defense should provide 
the specified Cooperative Threat Reduction (CTR) budgetary and 
programmatic information both in the CTR annual report, and in 
the budget justification materials that the Department of 
Defense provides each year as part of the President's annual 
budget request to Congress.
      The House bill contained no similar provision.
      The House recedes.
                    TITLE XIV--SUNKEN MILITARY CRAFT

                     Legislative Provisions Adopted

Sunken military craft (sec. 1401-1408)
      The House bill contained several provisions (sec. 1021-
1028) that would protect sunken U.S. military vessels, 
aircraft, and spacecraft, as well as the remains and personal 
effects of their crews from salvage, recovery, or other 
disturbance without authorization from the secretary of the 
military department concerned.
      These provisions would clarify the circumstances under 
which such sunken craft, entitled to sovereign immunity when 
they sank, remain the property of the flag state until 
officially abandoned. They would also encourage the negotiation 
of international agreements to protect sunken military craft.
      Finally, the provisions would authorize the secretary of 
the military department concerned to issue and enforce permits 
for activities directed at sunken U.S. military craft, 
including contract salvage. This system would not invalidate 
any permitting system currently in place nor affect any prior 
lawful transfer or express abandonment of title to any sunken 
military craft.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would authorize 
the Secretary of the Navy, in consultation with the Secretary 
of State, to apply the permitting system established by these 
provisions to any foreign sunken military craft located in 
United States waters, if requested by the flag state of that 
craft. It would also authorize in rem liability against a 
vessel involved in a violation of these provisions, and would 
authorize the Secretary concerned to request the Attorney 
General to seek other relief in certain cases. It would 
establish an eight-year statute of limitations for actions to 
enforce violations of these provisions or any permit issued 
thereunder. It would also extend the prohibition on applying 
the law of finds to sunken military craft to foreign craft 
located in U.S. waters. Finally, it makes technical changes to 
the definitional section.
  TITLE XV--AUTHORIZATION FOR INCREASED COSTS DUE TO OPERATION IRAQI 
                 FREEDOM AND OPERATION ENDURING FREEDOM

Overview
      The House bill contained a title (title XV) that would 
provide new authorizations of appropriations of $25.0 billion 
for ongoing operations in Iraq and Afghanistan. The title also 
contains reporting requirements and general provisions.
      The Senate amendment contained a provision (sec. 1006) 
that would authorize $25.0 billion for ongoing operations in 
Iraq and Afghanistan. The provision also contained reporting 
requirements.
      The Senate recedes with an amendment that would create a 
title that provides new authorization of appropriations of 
$25.0 billion for ongoing operations in Iraq and Afghanistan. 
The title also contains reporting requirements and general 
provisions.
Summary table of authorizations
      The following table summarizes authorizations included in 
the bill for ongoing operations in Iraq and Afghanistan for 
fiscal year 2005.


                     Legislative Provisions Adopted

Purpose (sec. 1501)
      The House bill contained a provision (sec. 1501) that 
would establish a title as an authorization of appropriations 
for the Department of Defense for fiscal year 2005, in addition 
to amounts otherwise authorized in this Act, to provide funds 
for additional costs due to Operation Iraqi Freedom and 
Operation Enduring Freedom.
      The Senate amendment contained a similar provision (sec. 
1006) that would authorize a contingent emergency reserve fund 
for ongoing operations in Iraq and Afghanistan.
      The Senate recedes with an amendment that would establish 
this title to provide additional funds for ongoing operations 
in Iraq and Afghanistan.
Army Procurement (sec. 1502)
      The House bill contained a provision (sec. 1511) that 
would authorize an additional $2,439.2 million for fiscal year 
2005 in Procurement, Army.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would authorize 
$965.0 million for fiscal year 2005 in Procurement, Army. 
Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.
Navy and Marine Corps Procurement (sec. 1503)
      The House bill contained a provision (sec. 1512) that 
would authorize an additional $136.6 million for fiscal year 
2005 in Procurement, Navy and Marine Corps.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would authorize 
$180.0 million for fiscal year 2005 in Procurement, Navy and 
Marine Corps. Unless noted explicitly in the statement of 
managers, all changes are made without prejudice.
Defense-wide activities procurement (sec. 1504)
      The House bill contained a provision (sec. 1514) that 
would authorize an additional $720.0 million for fiscal year 
2005 in Procurement, Defense-wide.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would authorize 
$50.0 million for fiscal year 2005 in Procurement, Defense-
wide. Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.
Operation and maintenance (sec. 1505)
      The House bill contained a provision (sec. 1515) that 
would authorize an additional $16,225.2 million for fiscal year 
2005 operation and maintenance programs.
      The Senate amendment contained a similar provision (sec. 
1006) that would authorize an additional $20,500.0 million for 
operation and maintenance programs within a contingent 
emergency response fund.
      The Senate recedes with an amendment that would authorize 
$16,405.0 million for fiscal year 2005 for operation and 
maintenance programs. Unless noted explicitly in the statement 
of managers, all changes are made without prejudice.
Defense working capital funds (sec. 1506)
      The Senate amendment contained a provision (sec. 1006) 
that would authorize $2,500.0 million within a contingent 
emergency response fund transfer account to be available for 
the costs of ongoing military operations in Iraq and 
Afghanistan.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
$1,478.0 million for the Defense Working Capital Fund Program.
Iraq Freedom Fund (sec. 1507)
      The Senate amendment contained a provision (sec. 1006) 
that would authorize $2,500.0 million within a contingent 
emergency response fund transfer account to be available for 
the costs of ongoing military operations in Iraq and 
Afghanistan.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
a $3,892.0 million for the Iraq Freedom Fund to remain 
available for transfer until September 30, 2006, of which 
$1,800.0 million shall be available for classified programs.
Defense health program (sec. 1508)
      The House bill contained a provision (sec. 1516) that 
would authorize an additional $75.0 million for fiscal year 
2005 Defense Health Program activities.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would authorize 
$780.0 million for fiscal year 2005 for Defense Health Program 
activities. Unless noted explicitly in the statement of 
managers, all changes are made without prejudice.
Military personnel (sec. 1509)
      The House bill contained a provision (sec. 1517) that 
would authorize an additional $5,305.0 million for fiscal year 
2005 military personnel accounts.
      The Senate amendment contained a similar provision (sec. 
1006) that would authorize an additional $2,000.0 million for 
fiscal year 2005 military personnel accounts within a 
contingent emergency response fund.
      The Senate recedes with an amendment that would authorize 
$1,250.0 million for fiscal year 2005 military personnel 
accounts. Unless noted explicitly in statement of managers, all 
changes are made without prejudice.
Treatment as additional authorizations (sec. 1510)
      The House bill contained a provision (sec. 1518) that 
would provide that the $25.0 billion authorized for emergency 
contingency operations related to Operation Iraqi Freedom and 
Operation Enduring Freedom are in addition to the amounts 
otherwise authorized in this Act.
      The Senate amendment contained a similar provision (sec. 
1006).
      The Senate recedes.
Transfer authority (sec. 1511)
      The House bill contained a provision (sec. 1519) that 
would provide fiscal year 2005 transfer authority of $2.5 
billion to the Department of Defense for the authorizations 
contained in title XV of their bill.
      The Senate amendment contained a similar provision (sec. 
1006).
      The Senate recedes with an amendment that would provide 
fiscal year 2005 transfer authority of $1.5 billion to the 
Department for the authorizations contained in this title.

                   Legislative Provisions Not Adopted

Procurement, Air Force
      The House bill contained a provision (sec. 1513) that 
would authorize an additional $99.0 million for fiscal year 
2005 in Procurement, Air Force.
      The Senate amendment contained no similar provision.
      The House recedes.
Designation of Emergency Authorization
      The House bill contained a provision (sec. 1520) that 
would authorize $25.0 billion for fiscal year 2005 to support 
emergency contingency operations related to the global war on 
terrorism.
      The Senate amendment contained no similar provision.
      The House recedes.
Three-year increase in active Army strength levels
      The House bill contained provisions (sec. 1531 and 1532) 
that would increase the active Army and Marine Corps end 
strength authorized for fiscal year 2005 by 10,000 and 3,000 
respectively above the authorization in section 401 of the 
National Defense Authorization Act for Fiscal Year 2004. These 
provisions would also authorize corresponding active-duty Army 
and Marine Corps end strengths for fiscal years 2006 and 2007 
and prescribe corresponding minimum end strengths under section 
691(b) of title 10, United States Code.
      The Senate amendment contained a provision (sec. 402) 
that would authorize a temporary increase in the Army's active-
duty end strength of up to 30,000 during fiscal years 2005 
through 2009. The provision would require that if the Secretary 
of Defense plans to increase the Army active-duty end strength 
above the levels authorized for fiscal year 2004, then the 
budget for the Department for such fiscal years as submitted to 
Congress shall specify the amounts necessary for funding the 
active duty end strength of the Army in excess of 482,400.
      The House recedes with an amendment that would authorize 
a temporary increase in the Marine Corps' active-duty end 
strength of up to 9,000 over 175,000, the level set forth in 
section 401 of the National Defense Authorization Act for 
Fiscal Year 2004 during fiscal years 2005 through 2009. The 
amendment would also require that if the Secretary of Defense 
plans to increase the Army or Marine Corps active-duty end 
strength for a fiscal year, then the budget for the Department 
for such fiscal years as submitted to Congress shall specify 
the amounts necessary for funding the active duty end strength 
of the Army or Marine Corps in excess of 482,400 and 175,000 
respectively.
            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Overview
      The administration originally requested authorization of 
appropriations in fiscal year 2005 for military construction 
and housing programs totaling $9,450,475,000. The 
administration's amended budget for authorization of 
appropriations totaled $9,480,475,000, after adding certain 
military construction projects for the Army National Guard 
totaling $30.0 million.
      The House bill would authorize appropriations totaling 
$9,930.5 million for military construction and family housing 
programs.
      The Senate amendment would authorize appropriations 
totaling $9,822.9 million for military construction and family 
housing programs.
      The conferees recommend authorization of appropriations 
of $9,930.1 million for the military construction and family 
housing accounts of the Department of Defense for fiscal year 
2005. The authorization of appropriations includes the use of 
$130.0 million from prior-year rescissions. The conference 
agreement is consistent with a budget authority level of 
$10,003.0 million for military construction and family housing 
programs.
      The following tables provide the project-level 
authorizations for the military construction funding authorized 
in Division B of this Act and summarize that funding by 
account. The tables also note as ``Budget Amend'' the projects 
contained in a fiscal year 2005 amended budget request 
submitted by the administration on March 5, 2004.


Short title (sec. 2001)
      The House bill contained a provision (sec. 2001) that 
would cite Division B of this Act as the Military Construction 
Authorization Act for Fiscal Year 2005.
      The Senate amendment contained an identical provision 
(sec. 2001).
      The conference agreement includes this provision.
                            TITLE XXI--ARMY

Overview
      The House bill would authorize appropriations for the 
Army of $1,866.2 million for military construction and $1,562.6 
million for family housing for fiscal year 2005.
      The Senate amendment would authorize appropriations for 
the Army of $1,942.9 million for military construction and 
$1,565.0 million for family housing for fiscal year 2005.
      The conferees recommend authorization of appropriation 
for the Army of $1,969.0 million for military construction and 
$1,562.6 million for family housing for fiscal year 2005.

                     Legislative Provisions Adopted

Authorized Army construction and land acquisition projects (sec. 2101)
      The House bill contained a provision (sec. 2101) that 
would authorize Army military construction projects in fiscal 
year 2005.
      The Senate amendment contained a similar provision (sec. 
2101).
      The conference agreement includes this provision.
      The amounts authorized are listed in this provision on an 
installation-by-installation basis. A State list of projects 
contained in the table at the beginning of division B of this 
conference report entitled ``Military Construction 
Authorization for FY2005'' provides the binding list of 
specific construction projects authorized at each location.
Family housing (sec. 2102)
      The House bill contained a provision (sec. 2102) that 
would authorize new construction and planning and design of 
family housing units for the Army in fiscal year 2005.
      The Senate amendment contained an identical provision 
(sec. 2102).
      The conference agreement includes this provision.
      The amounts authorized are listed in this provision on an 
installation-by-installation basis. A State list of projects 
contained in the table at the beginning of division B of this 
conference report entitled ``Military Construction 
Authorization for FY2005'' provides the binding list of 
specific construction projects authorized at each location.
Improvements to military family housing units (sec. 2103)
      The House bill contained a provision (sec. 2103) that 
would authorize improvements to existing units of Army family 
housing in fiscal year 2005.
      The Senate amendment contained an identical provision 
(sec. 2103).
      The conference agreement includes this provision.
Authorization of appropriations, Army (sec. 2104)
      The House bill contained a provision (sec. 2104) that 
would authorize specific appropriations for each line item 
contained in the Army's military construction budget in fiscal 
year 2005. This provision would also provide an overall limit 
on the amount the Army is authorized to spend on military 
construction projects in fiscal year 2005.
      The Senate amendment contained a similar provision (sec. 
2104).
      The conference agreement includes this provision.
Modification of authority to carry out certain fiscal year 2004 project 
        (sec. 2105)
      The House bill contained a provision (sec. 2105) that 
would amend section 2101 of the Military Construction 
Authorization Act for Fiscal Year 2004 (division B of Public 
Law 108-136) to increase project authorizations for Fort 
Stewart, Georgia and Fort Drum, New York.
      The Senate amendment contained a similar provision (sec. 
2105).
      The Senate recedes.
Modification of authority to carry out certain fiscal year 2003 
        projects (sec. 2106)
      The House bill contained a provision (sec. 2106) that 
would amend section 2101 of the Military Construction 
Authorization Act for Fiscal Year 2003 (division B of Public 
Law 107-314) as further amended by section 2105(a)(2) of the 
Military Construction Authorization Act for Fiscal Year 2004 
(division B of Public Law 108-136) to adjust a project 
authorization for Fort Sill, Oklahoma.
      The Senate amendment contained a similar provision (sec. 
2106).
      The Senate recedes.
                            TITLE XXII--NAVY

Overview
      The House bill would authorize appropriations for the 
Navy of $1,077.9 million for military construction and $835.4 
million for family housing for fiscal year 2005.
      The Senate amendment would authorize appropriations for 
the Navy of $100.1 million for military construction and $843.6 
million for family housing for fiscal year 2005.
      The conferees recommend authorization of appropriations 
for the Navy of $1,056.3 million for military construction and 
$835.4 million for family housing for fiscal year 2005.

                     Legislative Provisions Adopted

Authorized Navy construction and land acquisition projects (sec. 2201)
      The House bill contained a provision (sec. 2201) that 
would authorize Navy military construction projects in fiscal 
year 2005.
      The Senate amendment contained a similar provision (sec. 
2201).
      The conference agreement includes this provision.
      The amounts authorized are listed in this provision on an 
installation-by-installation basis. A State list of projects 
contained in the table at the beginning of division B of this 
conference report entitled ``Military Construction 
Authorization for FY2005'' provides the binding list of 
specific construction projects authorized at each location.
Family housing (sec. 2202)
      The House bill contained a provision (sec. 2202) that 
would authorize new construction and planning and design of 
family housing units for the Navy in fiscal year 2005.
      The Senate amendment contained an identical provision 
(sec. 2202).
      The conference agreement includes this provision.
      The amounts authorized are listed in this provision on an 
installation-by-installation basis. A State list of projects 
contained in the table at the beginning of division B of this 
conference report entitled ``Military Construction 
Authorizations for FY2005'' provides the binding list of 
specific construction projects authorized at each location.
Improvements to military family housing units (sec. 2203)
      The House bill contained a provision (sec. 2203) that 
would authorize improvements to existing units of Navy family 
housing in fiscal year 2005.
      The Senate amendment contained an identical provision 
(sec. 2203).
      The conference agreement includes this provision.
Authorization of appropriations, Navy (sec. 2204)
      The House bill contained a provision (sec. 2204) that 
would authorize specific appropriations for each line item 
contained in the Navy's military construction budget in fiscal 
year 2005. This provision would also provide an overall limit 
on the amount the Navy is authorized to spend on military 
construction projects in fiscal year 2005.
      The Senate amendment contained a similar provision (sec. 
2204).
      The conference agreement includes this provision.

                   Legislative Provisions Not Adopted

Modification of authority to carry out a certain fiscal year 2004 
        project
      The Senate amendment contained a provision (sec. 2205) 
that would amend section 2201 of the Military Construction 
Authorization Act for Fiscal Year 2004 (division B of Public 
Law 108-136) to increase a project authorization amount at 
Various Locations, CONUS.
      The House bill contained no similar provision.
      The Senate recedes.
                         TITLE XXIII--AIR FORCE

Overview
      The House bill would authorize appropriations for the Air 
Force of $789.6 million for military construction and $1,701.9 
million for family housing for fiscal year 2005.
      The Senate amendment would authorize appropriations for 
the Air Force of $782.5 million for military construction and 
$1,703.1 million for family housing for fiscal year 2005.
      The conferees recommend authorization of appropriation 
for the Air Force of $853.9 million for military construction 
and $1,700.3 million for family housing for fiscal year 2005.

                     Legislative Provisions Adopted

Authorized Air Force construction and land acquisition projects (sec. 
        2301)
      The House bill contained a provision (sec. 2301) that 
would authorize Air Force military construction projects in 
fiscal year 2005.
      The Senate amendment contained a similar provision (sec. 
2301).
      The conference agreement includes this provision.
      The amounts authorized are listed in this provision on an 
installation-by-installation basis. A State list of projects 
contained in the table at the beginning of Division B of this 
conference report entitled ``Military Construction 
Authorization for FY2005'' provides the binding list of 
specific construction projects authorized at each location.
Family housing (sec. 2302)
      The House bill contained a provision (sec. 2302) that 
would authorize new construction and planning and design of 
family housing units for the Air Force in fiscal year 2005.
      The Senate amendment contained a similar provision (sec. 
2302).
      The conference agreement includes this provision.
      The amounts authorized are listed in this provision on an 
installation-by-installation basis. A State list of projects 
contained in the table at the beginning of division B of this 
conference report entitled ``Military Construction 
Authorization for FY2005'' provides the binding list of 
specific construction projects authorized at each location.
Improvements to military family housing units (sec. 2303)
      The House bill contained a provision (sec. 2303) that 
would authorize improvements to existing units of Air Force 
family housing in fiscal year 2005.
      The Senate amendment contained an identical provision 
(sec. 2303).
      The conference agreement includes this provision.
Authorization of appropriations, Air Force (sec. 2304)
      The House bill contained a provision (sec. 2304) that 
would authorize specific appropriations for each line item 
contained in the Air Force's military construction budget in 
fiscal year 2005. This provision would also provide an overall 
limit on the amount the Air Force is authorized to spend on 
military construction projects in fiscal year 2005.
      The Senate amendment contained a similar provision (sec. 
2304).
      The conference agreement includes this provision.
                      TITLE XXIV--DEFENSE AGENCIES

Overview
      The House bill would authorize appropriations for the 
defense agencies of $790.8 million for military construction 
and $49.6 million for family housing for fiscal year 2005.
      The Senate amendment would authorize appropriations for 
the defense agencies of $764.2 million for military 
construction and $49.6 million for family housing for fiscal 
year 2005.
      The conferees recommend authorization of appropriations 
for the defense agencies of $675.5 million for military 
construction and $49.6 million for family housing for fiscal 
year 2005.

                     Legislative Provisions Adopted

Authorized defense agencies construction and land acquisition projects 
        (sec. 2401)
      The House bill contained a provision (sec. 2401) that 
would authorize defense agencies military construction projects 
in fiscal year 2005.
      The Senate amendment contained a similar provision (sec. 
2401).
      The conference agreement includes this provision.
      The amounts authorized are listed in this provision on an 
installation-by-installation basis. A State list of projects 
contained in the table at the beginning of division B of this 
conference report entitled ``Military Construction 
Authorization for FY2005'' provides the binding list of 
specific construction projects authorized at each location.
Improvements to military family housing units (sec. 2402)
      The House bill contained a provision (sec. 2402) that 
would authorize improvements to existing units of the defense 
agencies' family housing in fiscal year 2005.
      The Senate amendment contained an identical provision 
(sec. 2402).
      The conference agreement includes this provision.
Energy conservation projects (sec. 2403)
      The House bill contained a provision (sec. 2403) that 
would authorize the Secretary of Defense to carry out energy 
conservation projects.
      The Senate amendment contained a similar provision (sec. 
2403).
      The conference agreement includes this provision.
Authorization of appropriations, defense agencies (sec. 2404)
      The House bill contained a provision (sec. 2404) that 
would authorize specific appropriations for each line item 
contained in the defense agencies' military construction budget 
in fiscal year 2005. This provision would also provide an 
overall limit on the amount the defense agencies are authorized 
to spend on military construction projects in fiscal year 2005.
      The Senate amendment contained a similar provision (sec. 
2404).
      The conference agreement includes this provision.
   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

                     Legislative Provisions Adopted

Authorized NATO construction and land acquisition projects (sec. 2501)
      The House bill contained a provision (sec. 2501) that 
would authorize the Secretary of Defense to make contributions 
to the North Atlantic Treaty Organization Security Investment 
program in an amount equal to the sum of the amount 
specifically authorized elsewhere in this conference report, 
and the amount of recoupment due to the United States for 
construction previously financed by the United States.
      The Senate amendment contained an identical provision 
(sec. 2501).
      The conference agreement includes this provision.
Authorization of appropriations, NATO (sec. 2502)
      The House bill contained a provision (sec. 2502) that 
would authorize appropriations of $165.8 million for the U.S. 
contribution to the North Atlantic Treaty Organization Security 
Investment program.
      The Senate amendment contained an identical provision 
(sec. 2502).
      The conference agreement reduces the authorization of 
appropriations by $5.0 million.
            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Overview
      The House bill would authorize appropriations of $839.8 
million for military construction and land acquisition for 
fiscal year 2005 for the Guard and Reserve components.
      The Senate amendment would authorize appropriations of 
$768.7 million for military construction and land acquisition 
for fiscal year 2005 for the Guard and Reserve components.
      The conferees recommend authorization of appropriations 
of $929.2 million for military construction and land 
acquisition for fiscal year 2005 for the Guard and Reserve 
components. This authorization would be distributed as follows:

Army National Guard...........................................    $434.4
Air National Guard............................................     233.5
Army Reserve..................................................      90.3
Naval and Marine Corps Reserve................................      48.2
Air Force Reserve.............................................     122.8
                    --------------------------------------------------------------
                    ____________________________________________________

      Total...................................................     929.2

                     Legislative Provisions Adopted

Authorized Guard and Reserve construction and land acquisition projects 
        (sec. 2601)
      The House bill contained a provision (sec. 2601) that 
would authorize appropriations for military construction for 
the Guard and Reserve by service component in fiscal year 2005.
      The Senate amendment contained a similar provision (sec. 
2601).
      The conference agreement includes this provision.
      A State list of projects contained in the table at the 
beginning of division B of this conference report entitled 
``Military Construction Authorization for FY2005'' provides the 
binding list of specific construction projects authorized at 
each location.

                        Item of Special Interest

Change in title of military construction project previously authorized
      The conferees agree to make a technical clarification to 
the table, entitled ``Military Construction Authorization for 
FY2004,'' contained within division B of the statement of 
managers accompanying the National Defense Authorization Act 
for Fiscal Year 2004 (Conf. Rept. 108-354) by changing the 
title for a project authorized for the Air National Guard at 
the Memphis International Airport, Tennessee from ``C-5 Upgrade 
Shops'' to ``C-5 Site Improvements and Utilities''.
        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

                     Legislative Provisions Adopted

Expiration of authorizations and amounts required to be specified by 
        law (sec. 2701)
      The House bill contained a provision (sec. 2701) that 
would provide that authorizations for military construction 
projects, repair of real property, land acquisition, family 
housing projects and facilities, contributions to the North 
Atlantic Treaty Organization investment program, and Guard and 
Reserve projects will expire on October 1, 2007, or the date of 
enactment of an act authorizing funds for military construction 
for fiscal year 2008, whichever is later. This requirement 
would not apply to funds obligated prior to the expiration 
date.
      The Senate amendment contained an identical provision 
(sec. 2701).
      The conference agreement includes this provision.
Extension of authorizations of certain fiscal year 2002 projects (sec. 
        2702)
      The House bill contained a provision (sec. 2702) that 
would provide for the extension of certain fiscal year 2002 
military construction project authorizations until October 1, 
2005, or the date of enactment of an act authorizing funds for 
military construction for fiscal year 2006, whichever is later.
      The Senate amendment contained a similar provision (sec. 
2702).
      The Senate recedes with an amendment that would amend the 
list of fiscal year 2002 military construction project 
authorizations to be extended.
Extension and renewal of authorizations of certain fiscal year 2001 
        projects (sec. 2703)
      The House bill contained a provision (sec. 2703) that 
would provide for the extension of certain fiscal year 2001 
military construction project authorizations until October 1, 
2005 or the date of enactment of an act authorizing funds for 
military construction for fiscal year 2006, whichever is later.
      The Senate amendment contained a similar provision (sec. 
2703).
      The conference agreement includes this provision.

                   Legislative Provisions Not Adopted

Effective date
      The House bill contained a provision (sec. 2704) that 
would provide that titles XXI, XXII, XXIII, XXIV, XXV, and XXVI 
of this Act shall take effect on October 1, 2004, or the date 
of enactment of this Act, whichever is later.
      The Senate amendment contained an identical provision 
(sec. 2704).
      Because the conference report was not adopted prior to 
October 1, 2004, this provision is no longer required and was 
not included in the conference agreement.
                    TITLE XXVIII--GENERAL PROVISIONS

                       Items of Special Interest

Acceleration of environmental clean-up activities related to public 
        lands, West Wendover, Nevada
      Section 2843 of the Military Construction Authorization 
Act for Fiscal Year 2003 (division B of Public Law 107-314) 
authorized the Secretary of the Interior and the Secretary of 
the Air Force to convey certain parcels of real property 
totaling 14,000 acres at Wendover Air Force Base Auxiliary 
Field, Nevada to the City of West Wendover, Nevada and Tooele 
County, Utah. The purpose of the conveyance is to protect and 
benefit the local community by establishing aircraft accident 
prevention zones and developing 3,000 acres for an industrial 
park.
      In order for the Secretary of the Interior to carry out 
the conveyance, the Secretary of the Air Force must identify 
the extent of environmental contamination on the lands and the 
measures to ensure the protection of the public. Currently, the 
Air Force has planned, based on a risk assessment and available 
funding, for a preliminary environmental assessment in 2006 
and, if needed, subsequent environmental actions for these 
lands in 2011.
      Establishing aircraft accident prevention zones are 
critical to mitigating the risk of loss of life for local 
residents in the vicinity of airports. The industrial park 
planned by the local community is vital to the economic 
development and the growth of commercial investment in the 
areas surrounding Wendover airport. Delays in the conveyance of 
the lands are having a detrimental impact on the safety of 
residents and the vitality of the local economy.
      Therefore, the conferees direct the Secretary of the Air 
Force to give appropriate consideration to the completion of 
environmental remediation activities for lands at Wendover Air 
Force Base Auxiliary Field, Nevada so that the lands may be 
transferred to the Bureau of Land Management as quickly as 
possible.
Consideration of proposal for leased facilities supporting 
        Headquarters, United States Southern Command, Miami, Florida
      The conferees are aware of a proposal from the State of 
Florida to construct a building for Southern Command occupancy 
once the current lease expires in 2008. The conferees urge the 
Secretary of Defense to consider the State's proposal and 
update the congressional defense committees on the status of 
this proposal by February 1, 2005.

                     Legislative Provisions Adopted

 Subtitle A--Military Construction Program and Military Family Housing 
                                Changes

Modification of approval and notice requirements for facility repair 
        projects (sec. 2801)
      The Senate amendment contained a provision (sec. 2802) 
that would amend section 2811(b) of title 10, United States 
Code, by raising the threshold of the cost of a construction 
project requiring approval in advance by a service secretary 
from $5.0 million to $7.5 million.
      The House bill contained a provision (sec. 2803) that 
would amend section 2811(d) of title 10, United States Code, to 
lower the threshold at which congressional notification is 
required for facility repairs using operation and maintenance 
funds from $10.0 million to $7.5 million.
      The House recedes with an amendment that would include in 
the conference agreement both amendments to section 2811 of 
title 10, United States Code.
Reporting requirements regarding military family housing requirements 
        for general officers and flag officers (sec. 2802)
      The House bill contained a provision (sec. 2804) that 
would require the Department of Defense to conduct an analysis 
of general and flag officer housing requirements in the 
national capital region by March 30, 2005. This section would 
also require the Department to report to Congress, by March 30, 
2005, on its inventory of general and flag officer housing, 
including annual expenditures of each house for operations, 
utilities, and maintenance and repair over the past five years. 
Finally, this section would require the Department to provide, 
as part of its annual budget justification documents, by March 
30 of each year a detailed list of each general and flag 
officer quarters for whichoperations, utilities, and 
maintenance and repair costs, in sum, are anticipated to exceed $20,000 
in the coming year.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Department to provide, as part of its annual budget 
justification documents, a list of general and flag officer 
quarters for which operations, maintenance and repair costs are 
anticipated to exceed $35,000 in the budget year. The amendment 
would also add a reporting requirement for each dwelling unit 
where operations, maintenance and repair actions would exceed 
an annual cost of $35,000, not included in the annual 
President's budget request, but required for environmental 
remediation or to protect the safety or security of the 
occupants.
      In annual cost calculations, the conferees define 
``operations activities'' to include the prorated share of 
costs for management of family housing, services, and 
furnishings. Utilities, leases, and costs related to historical 
preservation should not be included in the analysis of the 
$35,000 threshold, but should be included in all reports.
Congressional notification of deviations from authorized cost 
        variations for military construction projects and military 
        family housing projects (sec. 2803)
      The House bill contained a provision (sec. 2805) that 
would amend section 2853(c)(3) of title 10, United States Code, 
to shorten the notice and wait period for significant project 
cost increases or scope decreases from 21 days to 14 days, if 
notification is provided in an electronic format to Congress.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Assessment of vulnerability of military installations to terrorist 
        attack and annual report on military construction requirements 
        related to antiterrorism and force protection (sec. 2804)
      The House bill contained a provision (sec. 2802) that 
would require the Secretary of Defense to establish guidance on 
appropriate levels of antiterrorism and force protection 
requirements for facilities construction and perimeter 
defenses, and to certify that all major Department of Defense 
installations have been assessed for vulnerabilities to 
terrorist attack since September 11, 2001. This section also 
would require the Department to provide an annual list of 
unfunded antiterrorism and force-protection military 
construction requirements.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
Repeal of limitations on use of alternative authority for acquisition 
        and improvement of military housing (sec. 2805)
      The House bill contained a provision (sec. 2806) that 
would amend section 2883 of title 10, United States Code, to 
repeal the limitation on budget authority for contracts and 
investments in military housing privatization projects, 
effective October 1, 2005.
      The Senate amendment contained a provision (sec. 2804) 
that would amend section 2874 of title 10, United States Code, 
and would repeal sections 2876, 2877, and 2882 of title 10, 
United States Code.
      The Senate recedes with an amendment that would repeal 
the limitation on budgetary authority for contracts and 
investments for the acquisition or construction of military 
family housing and military unaccompanied housing. These 
limitations would be repealed as of the date of enactment of 
this Act. The amendment would also repeal section 2885 of title 
10, United State Code.
Additional reporting requirements relating to alternative authority for 
        acquisition and improvement of military housing (sec. 2806)
      The Senate amendment contained a provision (sec. 2803) 
that would amend section 2884 of title 10, United States Code, 
to add additional requirements for reports provided by the 
Secretary of Defense to congressional defense committees.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Temporary authority to accelerate design efforts for military 
        construction projects carried out using design-build selection 
        procedures (sec. 2807)
      The House bill contained a provision (sec. 2807) that 
would establish a demonstration program to allow the Department 
of Defense to enter into a design-build construction contract 
using design funds made available under sections 2807 and 18233 
oftitle 10, United States Code, prior to the authorization of 
the project. This section would permit the Department to enter into 36 
contracts through September 30, 2008, and would require a report to 
Congress on the value of the program by March 1, 2007.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would limit the 
demonstration program to 18 projects that are included in the 
annual President's budget request to Congress.
      The conferees intend that in the case of a design-build 
project carried out under this authority for which construction 
funds are not subsequently authorized and appropriated by 
Congress, the design completed at the time of the government's 
termination for convenience would become the property of the 
United States Government.
Notification thresholds and requirements for expenditures or 
        contributions for acquisition of facilities for Reserve 
        components (sec. 2808)
      The Senate amendment contained a provision (sec. 2812) 
that would amend sections 18231, 18232, 18233, and 18233a of 
title 10, United States Code, to modify and enhance definitions 
and authorities available to the Secretary of Defense, and to 
provide for the acquisition of facilities and land interests 
necessary for the proper development, training, operation, and 
maintenance of the Reserve components of the Armed Forces.
      The House bill contained no similar provision.
      The House recedes with an amendment that would clarify 
the modifications to notification thresholds and requirements 
contained in section 18233a of title 10, United States Code. 
The conferees note that additional modifications to section 
18233 of title 10, United States Code, contained in the Senate 
amendment have been addressed in another conference provision 
(sec. 2809).
Authority to exchange Reserve component facilities to acquire 
        replacement facilities (sec. 2809)
      The House bill contained a provision (sec. 2808) that 
would amend section 18233 of title 10, United States Code, to 
provide the Secretary of Defense the authority to receive 
facilities, cash, or a combination of facilities and cash for 
existing Reserve component facilities.
      The Senate amendment contained a provision (sec. 2813) 
that would authorize the Secretary of Defense to carry out 
projects to assess the feasibility and advisability of 
obtaining new facilities for the Reserve components through the 
exchange or sale of existing facilities of such components.
      The Senate recedes with an amendment that would amend 
chapter 1803 of title 10, United States Code, to clarify the 
authority of the secretary of a military department to acquire 
facilities through exchanges of equal value facilities with a 
State, local government, local authority, or private entity, 
and would provide temporary authority to the secretary 
concerned to include cash equalization payments in the terms of 
the exchange.
      The amendment would establish requirements for the terms 
of the agreement and would require the secretary of a military 
department to certify to the congressional defense committees, 
prior to carrying out an agreement, that certain conditions 
have been satisfied before an agreement is signed.
      The amendment would also provide temporary authority to 
the secretary of a military department to make or accept cash 
payments as a part of an exchange agreement for facilities. The 
cash payments would be deposited in a special account and 
available to the Secretary concerned to be used in agreements 
to equalize the equitable exchange of facilities, or to cover 
costs related to operations, maintenance, and improvements to 
facilities acquired using an exchange agreement. The amendment 
would limit the use of the temporary authority, establish an 
expiration date, and require the Secretary of Defense to submit 
a report to the congressional defense committees on the 
usefulness of the temporary authority.
      The conferees acknowledge that ambiguous definitions in 
chapter 1803, United States Code, have been interpreted by the 
military departments to authorize these exchange agreements. 
While the conferees recognize the benefit to the Department of 
Defense of certain transactions that would exchange sub-
optimized land or deteriorated facilities for new facilities 
for the Reserve components, these unique agreements must be 
carried out with oversight from Congress.
      It is the intent of the conferees that the use of this 
authority will satisfy, to the maximum extent possible, 
military construction requirements included in the Future Years 
Defense Plan for each Reserve component. The conferees expect 
that the exchange agreements will not result in additional 
military construction or operations and maintenance 
requirements imposed upon the Reserve component and that impact 
on current readiness and missions will be minimized during the 
exchange. The conferees expect that the Reserve components will 
consider the feasibility of addressing joint facility and land 
requirements within the land exchange agreements. The conferees 
expect the interests of the government will be protected by the 
use of competitive procedures, to the maximum extent 
practicable, inorder to obtain a realistic value for the 
facilities to be exchanged.
      The conferees expect that the military departments will 
use the temporary authority to use equalizing cash payments as 
a condition to facilitate the exchange of facilities in order 
to expedite agreements to replace or improve deficient Reserve 
facilities, and not as an opportunity to maximize the 
accumulation of cash proceeds. The conferees expect the 
military departments to be able to provide Congress with audit 
information to account for cash receipts and expenditures in 
order to retain oversight on the use of funds.
One-year extension of temporary, limited authority to use operation and 
        maintenance funds for construction projects outside the United 
        States (sec. 2810)
      The House bill contained a provision (sec. 2809) that 
would extend for one year the authority provided by section 
2808 of the National Defense Authorization Act for Fiscal Year 
2004 (Public Law 108-136), to permit the Secretary of Defense 
to utilize operation and maintenance funds to construct 
facilities necessary for temporary operational requirements 
related to a declaration of war, national emergency, or 
contingency.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would make the 
extension of the authority contingent upon receipt by Congress 
of all required reports contained in the original provision.
      The conferees direct the Department of Defense to 
determine whether they require permanent authority to utilize 
operation and maintenance funds to construct facilities in lieu 
of continuing a temporary extension.
Consideration of combination of military medical treatment facilities 
        and health care facilities of Department of Veterans Affairs 
        (sec. 2811)
      The House bill contained a provision (sec. 2810) that 
would direct the Secretary of Defense and the Secretary of 
Veterans Affairs to certify that each project to construct 
medical treatment facilities, included in the annual 
President's budget request to Congress, had been evaluated for 
the feasibility of carrying out a project for a combined 
medical facility.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would eliminate 
the certification requirement, but continue to require the 
Secretary of Defense and the Secretary of Veterans Affairs, 
when proposing construction of a medical facility, to consult 
on the feasibility of accomplishing a joint project.

        Subtitle B--Real Property and Facilities Administration

Reorganization of existing administrative provisions relating to real 
        property transactions (sec. 2821)
      The Senate amendment contained a provision (sec. 2811) 
that would amend sections 2661 and 2679 of title 10, United 
States Code, to consolidate and clarify authorities available 
for real property administration. This provision would also 
repeal sections 2666, 2670, and 2673 of title 10, United States 
Code, that would be superceded as a result of the 
consolidations.
      The House bill contained a similar provision (sec. 2812).
      The House recedes with an amendment that would also 
repeal section 2664 of title 10, United States Code.
Development of Heritage Center for the National Museum of the United 
        States Army (sec. 2822)
      The Senate amendment contained a provision (sec. 2843) 
that would authorize the Secretary of the Army to enter into an 
agreement with the Army Historical Foundation for the design, 
construction, and operation of a facility, or group of 
facilities, at Fort Belvoir, Virginia for the National Museum 
of the United States Army.
      The House bill contained no similar provision.
      The House recedes with an amendment that would clarify 
the extent of lease payments to be received by the Secretary.
Elimination of reversionary interests clouding United States title to 
        property used as Navy homeports (sec. 2823)
      The House bill contained a provision (sec. 2817) that 
would authorize the Secretary of the Navy to enter into 
agreements with holders of reversionary interests at Navy 
homeports to secure permanent title to the properties for the 
Navy. In exchange, theNavy may provide in-kind consideration, 
including modification of existing agreements that require payment to 
the Navy for real property improvements.
      The Senate amendment contained no similar provision.
      The Senate recedes.

                Subtitle C--Base Closure and Realignment

Establishment of specific deadline for submission of revisions to 
        force-structure plan and infrastructure inventory (sec. 2831)
      The House bill contained a provision (sec. 2822) that 
would amend section 2912(a)(4) of the Defense Base Closure and 
Realignment Act of 1990 (part A of title XXIX of Public Law 
101-510, as amended) to establish March 15 of the base closure 
round year as the final deadline for revision of the force 
structure plan or infrastructure inventory.
      The Senate amendment contained no similar amendment.
      The Senate recedes.
Specification of final selection criteria for 2005 base closure round 
        (sec. 2832)
      The House bill contained a provision (sec. 2823) that 
would amend and codify the criteria that will be used by the 
Secretary of Defense in making recommendations for the closure 
or realignment of military installations inside the United 
States during the next base closure round.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would codify, 
with an amendment, the final selection criteria published by 
the Secretary in the Federal Register (Volume 69, Number 29) on 
February 12, 2004. The conferees expect that the Secretary 
shall adhere, to the maximum extent possible, to responses in 
the analysis of comments to the draft selection criteria, as 
published in the Federal Register on February 12, 2004, 
including the incorporation of elements of military value, such 
as research, development, test, evaluation, maintenance, and 
repair facilities for weapon systems; and the interaction with 
a highly skilled local work force and local industrial and 
academic institutions.
Repeal of authority of Secretary of Defense to recommend that 
        installations be placed in inactive status (sec. 2833)
      The Senate amendment contained a provision (sec. 2814) 
that would repeal subsection (c) of section 2914 of the Defense 
Base Closure and Realignment Act of 1990 (part A of title XXIX 
of Public Law 101-510, as amended).
      The House bill contained no similar amendment.
      The House recedes.
Voting requirements for Defense Base Closure and Realignment Commission 
        to add to or otherwise expand closure and realignment 
        recommendations made by Secretary of Defense (sec. 2834)
      The House bill contained a provision (sec. 2824) that 
would amend section 2914(d) of the Defense Base Closure and 
Realignment Act of 1990 (part A of title XXIX of Public Law 
101-510, as amended) to require a unanimous vote of the base 
closure commission to recommend closure, realignment, or 
expanded realignment of an installation not recommended for 
closure or realignment by the Secretary of Defense.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would amend 
section 2914(d) of the Defense Base Closure and Realignment Act 
of 1990 (part A of title XXIX of Public Law 101-510, as 
amended) to require the consent of at least seven commissioners 
to recommend closure, realignment, or expanded realignment of 
an installation not recommended for closure or realignment by 
the Secretary.

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

Land conveyance, Sunflower Army Ammunition Plant, Kansas (sec. 2841)
      The Senate amendment contained a provision (sec. 2833) 
that would authorize the Secretary of the Army, in consultation 
with the Administrator of General Services, to convey, with 
consideration, to an entity selected by the Board 
ofCommissioners of Johnson County, Kansas a parcel of property 
consisting of approximately 9,065 acres for the purpose of facilitating 
economic development and revitalization of the property.
      The House bill contained no similar provision.
      The House recedes with an amendment that would clarify 
the authorization for consideration to be received by the 
Secretary.
      The conferees expect the Secretary of the Army to work 
with local, state, and federal environmental agencies to 
develop an agreement in accordance with the Comprehensive 
Environmental Response, Compensation, and Liability Act 
(CERCLA) of 1980 (42 U.S.C. 9601 et seq.), that will lead to an 
accelerated cleanup and enhanced early transfer of the 
property. Nothing in this section shall waive any obligation of 
the Secretary under section 120(h) of CERCLA.
Land exchange, Fort Campbell, Kentucky and Tennessee (sec. 2842)
      The conferees agree to a provision that would authorize 
the Secretary of the Army to convey to Bi-County Solid Waste 
Management System, a local government agency, a parcel of real 
property consisting of approximately 358 acres located at Fort 
Campbell in Montgomery County, Tennessee for the purpose of 
permitting Bi-County to expand a landfill. In exchange, the 
Secretary would receive a parcel of property consisting of 
approximately 670 acres located adjacent to Fort Campbell in 
Trigg County, Kentucky and Stewart County, Tennessee.
Land conveyance, Louisiana Army Ammunition Plant, Doyline, Louisiana 
        (sec. 2843)
      The Senate amendment contained a provision (sec. 2835) 
that would authorize the Secretary of the Army to convey, with 
consideration, to the State of Louisiana a parcel of property 
including any improvements thereon, consisting of approximately 
14,949 acres located at the Louisiana Army Ammunition Plant, 
Doyline, Louisiana.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
      The conferees encourage the Secretary to work with local, 
state, and federal environmental agencies to develop a 
condition of the land conveyance agreement that eventually 
transfers to the State the responsibility for monitoring, 
sampling, or reporting requirements that are associated with 
the environmental restoration activities of the Louisiana Army 
Ammunition Plant, while maintaining the government's compliance 
with the Comprehensive Environmental Response, Compensation, 
and Liability Act of 1980 (42 U.S.C. 9601 et seq.).
Land conveyance, Fort Leonard Wood, Missouri (sec. 2844)
      The conferees agree to a provision that would authorize 
the Secretary of the Army to convey, without consideration, to 
the State of Missouri a parcel of real property consisting of 
approximately 227.7 acres located at Fort Leonard Wood, 
Missouri for the purpose of permitting the State to establish a 
cemetery for veterans of the Armed Forces.
Transfer of administrative jurisdiction, Defense Supply Center, 
        Columbus, Ohio (sec. 2845)
      The Senate amendment contained a provision (sec. 2821) 
that would authorize the Secretary of the Army to transfer, 
without reimbursement, to the administrative jurisdiction of 
the Secretary of Veterans Affairs a parcel of real property 
consisting of approximately 20 acres at the Defense Supply 
Center, Columbus, Ohio, for the sole purpose of constructing a 
new outpatient clinic for veterans' medical services.
      The House bill contained a similar provision (sec. 2831)
      The House recedes with a technical amendment.
Jurisdiction and utilization of former public domain lands, Umatilla 
        Chemical Depot, Oregon (sec. 2846)
      The Senate amendment contained a provision (sec. 2842) 
that would transfer jurisdiction to the Secretary of the Army 
of various parcels of property, consisting of approximately 
8,300 acres located at Umatilla Army Depot, Oregon, that are 
withdrawn from the public domain. The Secretary would combine 
the transferred real property with other land interests at the 
Depot for purposes of management and disposal under title II of 
the Defense Authorization Amendment and Base Closure and 
Realignment Act of 1988 (Public Law 100-526) and other 
applicable law.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Modification of authority for land conveyance, equipment and storage 
        yard, Charleston, South Carolina (sec. 2847)
      The Senate amendment contained a provision (sec. 2836) 
that would amend section 563(h) of the Water Resources 
Development Act of 1999 (Public Law 106-53) to amend the 
authorized use of proceeds received as consideration by the 
Secretary of the Army for a parcel of property conveyed to the 
City of Charleston, South Carolina.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Land conveyance, Fort Hood, Texas (sec. 2848)
      The House bill contained a provision (sec. 2832) that 
would authorize the Secretary of the Army to convey 
approximately 662 acres at Fort Hood, Texas, to the Texas A&M 
University system of the State of Texas for the purpose of 
establishing the Texas A&M University, Central Texas. In 
exchange, the Army would receive fair market value in cash or 
in-kind consideration for the property.
      The Senate amendment contained no similar amendment.
      The Senate recedes.
      The conferees anticipate that the terms and conditions 
for any consideration other than cash provided by the Texas A&M 
University system for the land received will directly enhance 
the educational opportunities for military personnel and their 
families at Fort Hood, Texas. The conferees encourage the 
parties to explore the possibility of providing consideration 
in the form of reduced tuition rates for military personnel.
Land conveyance, local training area for Browning Army Reserve Center, 
        Utah (sec. 2849)
      The Senate amendment contained a provision (sec. 2822) 
that would authorize the Secretary of the Army to convey, 
without consideration, to the State of Utah a parcel of real 
property consisting of approximately 10 acres located at the 
Browning Army Reserve Center, Utah for the purpose of 
constructing a nursing care facility for veterans.
      The House bill contained no similar provision.
      The House recedes with an amendment that would add a 
reversionary interest, if the Secretary of the Army determines 
that the property is not being used for the purpose expressed 
in the legislation.
Land conveyance, Army Reserve Center, Hampton, Virginia (sec. 2850)
      The Senate amendment contained a provision (sec. 2824) 
that would authorize the Secretary of the Army to convey, 
without consideration, to the Hampton City School Board, 
Hampton, Virginia, a parcel of real property consisting of 
approximately 29.8 acres, known as the Butler Farm United 
States Army Reserve Center, for public education purposes.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Land conveyance, Army National Guard Facility, Seattle, Washington 
        (sec. 2851)
      The Senate amendment contained a provision (sec. 2825) 
that would authorize the Secretary of the Army to convey, 
without consideration, to the State of Washington a parcel of 
real property consisting of approximately 9.8 acres in Seattle, 
Washington and comprising a portion of a National Guard 
Facility, Pier 91, for the purpose of permitting the State to 
convey the facility unencumbered for economic redevelopment 
purposes.
      The House bill contained a similar provision (sec. 2833).
      The House recedes with a technical amendment.
Modification of land exchange and consolidation, Fort Lewis, Washington 
        (sec. 2852)
      The House bill contained a provision (sec. 2834) that 
would amend the section 2837 of the Military Construction 
Authorization Act for Fiscal Year 2002 (division B of Public 
Law 107-107) to increase the acreage authorized to be conveyed 
and to clarify the treatment of easements.
      The Senate amendment contained no similar provision.
      The Senate recedes.

                       Part II--Navy Conveyances

Land exchange, former Richmond Naval Air Station, Florida (sec. 2861)
      The conferees agree to a provision that would authorize 
the Secretary of the Army to convey to the University of Miami, 
Miami, Florida, a parcel of real property and easements 
consisting of approximately 14 acres at the former Richmond 
Naval Air Station, Miami, Florida for the purpose of expansion 
of university facilities. In exchange, the Secretary would be 
authorized to receive a parcel of real property consisting of 
approximately 12 acres, and related easements and construction 
to provide security and access to the parcel.
Land conveyance, Honolulu, Hawaii (sec. 2862)
      The Senate amendment included a provision (sec. 2827) 
that would authorize the Secretary of the Navy to convey to the 
City and County of Honolulu, Hawaii, a parcel of real property 
consisting of approximately 5.16 acres for the purpose of 
continuing fire protection and training for civilian and 
military personnel.
      The House bill contained no similar provision.
      The House recedes.
Land conveyance, Navy property, former Fort Sheridan, Illinois (sec. 
        2863)
      The House bill contained a provision (sec. 2842) that 
would authorize the Secretary of the Navy to convey, without 
consideration, a parcel of environmentally-sensitive property 
to a nonprofit land conservation organization, for the purpose 
of ensuring permanent protection of the lands.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.
Land exchange, Naval Air Station, Patuxent River, Maryland (sec. 2864)
      The House bill contained a provision (sec. 2843) that 
would authorize the Secretary of the Navy to convey 
approximately 5 acres of real property at Naval Air Station, 
Patuxent River, Maryland, to the state of Maryland. In 
exchange, the Navy shall receive approximately 5 acres of 
property of an equal value to the conveyance.
      The Senate amendment contained a similar provision (sec. 
2831).
      The House recedes with a technical amendment.
Modification of land acquisition authority, Perquimans County, North 
        Carolina (sec. 2865)
      The conferees agree to a provision that would amend 
section 2846 of the Military Construction Authorization Act for 
Fiscal Year 2002 (division B of Public Law 107-107) to increase 
the amount of acreage that the Secretary of the Navy is 
authorized to acquire.
Land conveyance, Naval Weapons Station, Charleston, South Carolina 
        (sec. 2866)
      The Senate amendment contained a provision (sec. 2834) 
that would authorize the Secretary of the Navy to convey, with 
fair market value consideration, to the Berkeley County 
Sanitation Authority, South Carolina, a parcel of property 
consisting of not more than 38 acres at the Naval Weapons 
Station, Charleston, South Carolina, for the purpose of 
allowing the Authority to expand an existing sewage treatment 
plant.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Land conveyance, Navy YMCA building, Portsmouth, Virginia (sec. 2867)
      The Senate amendment contained a provision (sec. 2828) 
that would authorize the Secretary of the Navy to convey, 
without consideration, to the City of Portsmouth, Virginia, a 
parcel of real property consisting of approximately \1/2\ acre, 
known as the Navy YMCA building, for economic revitalization 
purposes.
      The House bill contained no similar provision.
      The House recedes with a technical amendment that would 
require the city to provide consideration equal to the costs 
related to the environmental remediation in exchange for the 
property. s

                    Part III--Air Force Conveyances

Land exchange, Maxwell Air Force Base, Alabama (sec. 2871)
      The House bill contained a provision (sec. 2851) that 
would authorize the Secretary of the Air Force to convey 
approximately 28 acres comprising the Maxwell Heights Housing 
site at Maxwell Air Force Base, Alabama, to the city of 
Montgomery, Alabama. In exchange, the Air Force shall receive 
approximately 35 acres of land contiguous to Maxwell Air Force 
Base.
      The Senate amendment contained a similar provision (sec. 
2830).
      The Senate recedes with an amendment that would state the 
use of the land to be received by the Air Force, and would 
permit the Air Force to seek reimbursement for the costs of the 
exchange.
Land conveyance, March Air Force Base, California (sec. 2872)
      The Senate amendment contained a provision (sec. 2832) 
that would authorize the Secretary of the Air Force to convey, 
with consideration, to the March Joint Powers Authority a 
parcel of property consisting of approximately 15 acres located 
in Riverside County, California and containing the former 
Defense Reutilization and Marketing Office facility for March 
Air Force Base. The purpose of the conveyance would be for 
economic development and revitalization.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Land conveyance, former Griffiss Air Force Base, New York (sec. 2873)
      The Senate amendment contained a provision (sec. 2829) 
that would authorize the Secretary of the Air Force to convey, 
at fair market value, to the Oneida County Industrial 
Development Agency, New York, a parcel of property at the 
former Griffiss Air Force Base, New York, consisting of 9.369 
acres, including four buildings, for economic development 
purposes.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

                       Part IV--Other Conveyances

Land exchange, Arlington County, Virginia (sec. 2881)
      The Senate amendment contained provision (sec. 2823) that 
would authorize the Secretary of Defense to exchange a parcel 
of real property consisting of not more than 4.5 acres at the 
Navy Annex property, Virginia to Arlington County, Virginia for 
a parcel of approximately equal acreage known as the Southgate 
Road right-of-way between Arlington National Cemetery and the 
Navy Annex property.
      The House bill contained no similar provision.
      The House recedes with an amendment that would clarify 
the location of the land to be conveyed and would provide 
conditions to the Secretary for the land conveyance.

                       Subtitle E--Other Matters

One-year resumption of Department of Defense Laboratory Revitalization 
        Demonstration Program (sec. 2891)
      The Senate amendment contained a provision (sec. 2841) 
that would authorize the Secretary of Defense to carry out a 
follow-on program for the revitalization of laboratories 
operated by the Department of Defense.
      The House bill contained no similar provision.
      The House recedes with an amendment that establishes an 
authorization expiration date of September 30, 2005.
Designation of Airmen Leadership School at Luke Air Force Base, 
        Arizona, in honor of John J. Rhodes, a former minority leader 
        of the House of Representatives (sec. 2892)
      The House bill contained a provision (sec. 2816) that 
would designate the Airmen Leadership School at Luke Air Force 
Base, Arizona, as the John J. Rhodes Airmen Leadership School 
in honor of the former minority leader of the House of 
Representatives, Congressman John J. Rhodes.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Settlement of claim of Oakland Base Reuse Authority and Redevelopment 
        Agency (sec. 2893)
      The Senate amendment contained a provision (sec. 2844) 
that would authorize the Secretary of the Navy to pay $2.1 
million to the Oakland Base Reuse Authority and Redevelopment 
Agency of the City of Oakland, California, as settlement from a 
court case.
      The House bill contained no similar amendment.
      The House recedes with amendment that would clarify the 
release of claims against the United States.
Report on establishment of mobilization station at Camp Ripley National 
        Guard Training Center, Little Falls, Minnesota (sec. 2894)
      The Senate amendment contained a provision (sec. 1023) 
that would direct the Secretary of Defense to carry out a study 
on the feasibility of the use of Camp Ripley National Guard 
Training Center, Little Falls, Minnesota, as a mobilization 
center for Reserve components ordered to active duty.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Report on feasibility of establishment of veterans memorial at Marine 
        Corps Air Station, El Toro, California (sec. 2895)
      The House bill contained a provision (sec. 2818) that 
would require the Secretary of the Navy, within 30 days of 
enactment of this Act, to report to Congress on whether the 
anticipated future uses of the former Marine Corps Air Station, 
El Toro, California, by the City of Irvine, California, would 
permit the establishment of a veterans memorial at the former 
installation.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.
Sense of Congress regarding effect of military housing policies and 
        force structure basing changes on local education agencies 
        (sec. 2896)
      The Senate amendment contained a provision (sec. 353) 
that would express the sense of the Senate that the Department 
of Defense should support the construction of schools in 
housing privatization agreements that severely impact school 
populations.
      The House bill contained no similar provision.
      The conferees agree to express the sense of Congress that 
the Department of Defense should consider the effects that the 
analyses used to determine military housing requirements, 
changes in force structure due to transformation, and overseas 
basing realignments will have on the number of school-aged 
military dependents and the need for additional educational 
facilities to serve such dependents. In many cases, local 
school districts do not have the resources or flexibility to 
respond quickly to changes in requirements, resulting in budget 
shortfalls and the use of inadequate, temporary facilities 
affecting the quality of education. The Department should 
address such effects by closely coordinating changes in 
requirements with local education agencies. The Department 
should also consider using existing authority under subchapter 
IV of chapter 169 of title 10, United States Code, to include 
the construction of educational facilities in military housing 
privatization initiatives.
Sense of Congress and study regarding memorial honoring non-United 
        States citizens killed in the line of duty while serving in the 
        United States Armed Forces (sec. 2897)
      The House bill contained a provision (sec. 1081) that 
would require the Secretary of the Army to place in Arlington 
National Cemetery a memorial marker honoring the service and 
sacrifice of noncitizens killed in the line of duty while 
serving in the Armed Forces of the United States.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would express 
the sense of the Congress that a memorial marker or monument 
honoring the service and sacrifice of noncitizen service 
members killed in the line of duty should be designed and 
placed in an appropriate location. The amendment would require 
the Secretary of the Army, in consultation with the Secretary 
of Veterans Affairs and the American Battle Monuments 
Commission, to conduct a study examining the feasibility of 
placing such a memorial marker in the Arlington National 
Cemetery, or some other suitable location. It would require the 
Secretary of the Army to submit a report on this study and any 
recommendations by April 1, 2005.

                   Legislative Provisions Not Adopted

Increase in thresholds for unspecified minor military construction 
        projects
      The Senate amendment contained a provision (sec. 2801) 
that would amend section 2805(a)(1) of title 10, United States 
Code, by raising the threshold of the cost of a construction 
project authorized by this section from $1.5 million to $2.5 
million. This provision would also raise the threshold of the 
cost of a construction project intended solely to correct a 
deficiency that is life-threatening, health-threatening, or 
safety-threatening from $3.0 million to $4.0 million.
      The House bill contained no similar provision.
      The Senate recedes.
Increase in certain thresholds for carrying out unspecified minor 
        military construction projects
      The House bill contained a provision (sec. 2801) that 
would amend section 2805(b) of title 10, United States Code, to 
increase from $750,000 to $1.0 million the threshold at which 
service secretaries must approve the use of operation and 
maintenance funds for unspecified minor construction projects. 
This section would also amend section 2805(c) to establish a 
single limit of $1.5 million at which operation and maintenance 
funds may be used for unspecified minor construction projects.
      The Senate amendment contained no similar amendment.
      The House recedes.
Increase in certain thresholds for reporting real property transactions
      The House bill contained a provision (sec. 2811) that 
would amend section 2662 of title 10, United States Code, to 
increase from $750,000 to $1.5 million the thresholds at which 
the military services must report to Congress real property 
transactions. This section would also change the threshold 
amounts in annual reporting requirements for minor real 
property transactions.
      The Senate amendment contained no similar provision.
      The House recedes.
Treatment of money rentals from golf course at Rock Island Arsenal, 
        Illinois
      The House bill contained a provision (sec. 2813) that 
would amend section 2667 of title 10, United States Code, to 
allow 50 percent of lease receipts from the Rock Island Arsenal 
Golf Club, a community club that leases and operates the 
arsenal's golf course for the general public and local military 
personnel, to be placed into the Rock Island Arsenal morale, 
welfare, and recreation fund.
      The Senate amendment contained no similar position.
      The House recedes.
Number of contracts authorized department-wide under demonstration 
        program on reduction in long-term facility maintenance costs
      The House bill contained a provision (sec. 2814) that 
would amend section 2814 of the National Defense Authorization 
Act for Fiscal Year 2002 (Public Law 107-107), to adjust the 
number of contracts permitted under the building commissioning 
program.
      The Senate amendment contained no similar provision.
      The House recedes.
Repeal of Commission on Review of Overseas Military Facility Structure 
        of the United States
      The House bill contained a provision (sec. 2815) that 
would repeal section 128 of the Military Construction 
Appropriations Act, 2004 (Public Law 108-132), which 
established the Commission on the Review of Overseas Military 
Facility Structure of the United States.
      The Senate amendment contained no similar provision.
      The House recedes.
Two-year postponement of 2005 base closure and realignment round and 
        submission of reports regarding future infrastructure 
        requirements for the Armed Forces
      The House bill contained a provision (sec. 2821) that 
would amend current base realignment and closure law to 
postpone the2005 base closure and realignment round until 2007, 
pending receipt of several reports on significant infrastructure 
issues.
      The Senate amendment contained no similar amendment.
      The House recedes.
Adherence to certain authorities on preservation of military depot 
        capabilities during any subsequent round of base closures and 
        realignments
      The House bill contained a provision (sec. 2825) that 
would amend the Defense Base Closure and Realignment Act of 
1990 (part A of title XXIX of Public Law 101-510, as amended) 
to require that base closure and realignment actions comply 
with provisions of title 10, United States Code, that address 
government-owned, government-operated depot-level maintenance, 
repair, and logistics capabilities within the Department of 
Defense.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees acknowledge that section 2464 of title 10, 
United States Code, requires the Department of Defense to 
maintain government-owned and operated logistics capabilities 
to include work force and facilities, to ensure a ready and 
controlled source of technical competence and resources 
necessary to support an effective and timely response to a 
mobilization, a national defense contingency situation, and 
other emergency requirements. Section 2466 of the same title 
requires that no more than 50 percent of each military 
department's annual funding for depot level maintenance and 
repair activities be performed in the private sector. While 
these sections are intended to preserve a certain level of 
depot and logistics capabilities in the Department, these 
sections also authorize the Secretary of Defense to waive these 
provisions for reasons of national security.
      The conferees believe that military base realignment and 
closure actions undertaken by the Department under authority 
provided in the Defense Base Closure and Realignment Act of 
1990 (Public Law 101-510), as amended by the National Defense 
Authorization Act for 2002 (division B of Public Law 107-107), 
must be consistent with the provisions in title 10, United 
States Code, pertaining to the preservation of depot logistics 
capabilities.
      Therefore, the conferees direct the Secretary of Defense 
to ensure that the recommendations submitted to the Commission, 
pursuant to the Base Closure and Realignment Act, adhere to 
sections 2464 and 2466 of title 10, United States Code. The 
conferees further direct the Secretary to ensure that the same 
recommendations will not result in the requirement to 
perpetually waive the provisions of sections 2464 and 2466 of 
title 10, United States Code.
Transfer of jurisdiction, Nebraska Avenue Naval Complex, District of 
        Columbia
      The House bill contained a provision (sec. 2841) that 
would transfer jurisdiction of the Nebraska Avenue Naval 
Complex in Washington, D.C., from the Navy to the Administrator 
of General Services for the purpose of accommodating the 
Department of Homeland Security.
      The Senate amendment contained a similar provision (sec. 
2826).
      The authority for the Secretary of the Navy to transfer 
jurisdiction of the Nebraska Avenue Naval Complex to the 
Administrator of General Services for use by the Department of 
Homeland Security was provided by Congress in Public Law 108-
268, signed on July 2, 2004. Therefore, this provision is not 
adopted by the conferees.

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

Overview
      Title XXXI authorizes appropriations for atomic energy 
defense activities of the Department of Energy (DOE) for fiscal 
year 2005, including: the purchase, construction, and 
acquisition of plant and capital equipment; research and 
development; nuclear weapons activities; defense nuclear 
nonproliferation; naval nuclear propulsion; environmental 
restoration and waste management; operating expenses; and other 
expenses necessary to carry out the purposes of the Department 
of Energy Organization Act (Public Law 95-91). The title would 
authorize appropriations in four categories: National Nuclear 
Security Administration (NNSA); defense environmental 
management; other defense activities; and defense nuclear waste 
disposal.
      The budget request for atomic energy defense activities 
at DOE totaled $16.8 billion, a $483.2 million increase above 
the fiscal year 2004 level. Of the total amount requested, $9.0 
billion would be for NNSA, of which $6.6 billion would be for 
weapons activities; $1.3 billion would be for defense nuclear 
nonproliferation activities; $797.9 million would be for naval 
reactors; $333.7 million would be for the Office of the 
Administrator; $7.0 billion would be for defense environmental 
management, of which $6.0 billion would be for defense site 
acceleration completion and $982.5 million would be for defense 
environmental services; $663.6 million would be for other 
defense activities; and $131.0 million would be for defense 
nuclear waste disposal.
      The conferees agree to authorize $16.8 billion for atomic 
energy defense activities at DOE, an increase of $483.2 million 
above the fiscal year 2004 level. The conferees agree to 
authorize $9.1 billion for the NNSA, an increase of $33.6 
million above the budget

request. Of the amounts authorized for the NNSA, $6.6 billion 
would be for weapons activities, an increase of $23.6 million; 
$1.3 billion would be for defense nuclear nonproliferation 
activities; $797.9 million would be for naval reactors; and 
$343.7 million would be for the Office of the Administrator, an 
increase of $10.0 million above the budget request. The 
conferees agree to authorize $7.0 billion for defense 
environmental management, an increase of $4.0 million above the 
budget request. Of the amounts authorized for defense 
environmental management, $6.0 billion would be for defense 
site acceleration completion and $986.5 million for defense 
environmental services. The conferees agree to authorize $636.0 
million for other defense activities, a decrease of $27.6 
million below the budget request. The conferees agree to 
authorize $120.0 million for defense nuclear waste disposal, a 
decrease of $11.0 million below the budget request.
      The following table summarizes the budget request and the 
authorizations:


                     Legislative Provisions Adopted

         Subtitle A--National Security Programs Authorizations

National Nuclear Security Administration (sec. 3101)
      The House bill contained a provision (sec. 3101) that 
would authorize $9.0 billion for the National Nuclear Security 
Administration (NNSA), including funds for weapons activities, 
defense nuclear nonproliferation programs, naval reactor 
programs, and the Office of the Administrator.
      The Senate amendment contained a similar provision that 
would authorize $9.2 billion (sec. 3101).
      The conferees agree to include a provision that would 
authorize $9.1 billion for NNSA.
      The budget request included $1.4 billion for directed 
stockpile work. The conferees agree to authorize $1.4 billion 
for directed stockpile work, a decrease of $21.5 million to be 
taken out of individual warhead life extension programs. The 
conferees note that this is a $44.6 million increase over the 
amount appropriated for directed stockpile work in fiscal year 
2004.
      The budget request included $301.0 million in science 
campaigns. The conferees agree to authorize $281.5 million for 
science campaigns, a decrease of $19.5 million. The conferees 
note that the reduction is without prejudice and should be 
taken from carry over due to the shutdown at the national 
laboratories in July and August.
      The budget request included $243.0 million for the 
engineering campaign. The conferees agree to authorize $253.0 
million for the engineering campaign, an increase of $10.0 
million, to support the microsystems and engineering sciences 
applications (MESA) construction project.
      The budget request included $741.3 million for the 
advanced simulation and computing (ASC) campaign. The conferees 
agree to authorize $731.3 million for the advanced simulation 
and computing campaign, a decrease of $10.0 million. The 
conferees note that the ASC campaign has experienced cost 
growth and schedule slippage.
      The budget request included $1.5 billion for readiness in 
technical base and facilities. The conferees agree to 
authorize$1.5 billion, an increase of $55.6 million for readiness in 
technical base and facilities for replacement of aging equipment, 
correction of deferred maintenance, and disposition of legacy materials 
consistent with the National Nuclear Security Administration approved 
10 year comprehensive plan as follows: $12.6 million at the Kansas City 
Plant in Missouri, $6.0 million for the Lawrence Livermore National 
Laboratory in California, $19.0 million for the Pantex Plant in Texas, 
$9.0 million for Sandia National Laboratory in New Mexico, and $9.0 
million for the Y-12 National Security Complex in Tennessee.
      The budget request included $707.0 for safeguards and 
security. The conferees agree to authorize $716.0 million for 
safeguards and security, a $9.0 million increase for security 
upgrades at the Y-12 National Security Complex in Tennessee.
      The budget request included $1.3 billion for defense 
nuclear nonproliferation. The conferees agree to authorize $1.3 
billion for defense nuclear nonproliferation, the amount of the 
budget request. The conferees further agree to a $25.0 million 
increase for nonproliferation and verification research and 
development, and a $25.0 million reduction for fissile 
materials disposition. The conferees note that continued delays 
in the commencement of construction activities under the 
fissile materials disposition program make it unlikely that the 
Department will be able to fully obligate the budget request 
for that program in fiscal year 2005. The conferees believe 
that the nonproliferation and verification research and 
development program is doing valuable work on proliferation 
detection and other technologies that would benefit from 
additional resources.
      The budget request included $333.7 million for the Office 
of the Administrator. The conferees agree to authorize $343.7 
million, an increase of $10.0 million to settle claims of 
Pajarito homesteaders. This account includes program direction 
funding for all elements of NNSA, with the exception of the 
Naval Reactors Program and the Secure Transportation Asset.
      The conferees note that security lapses at the Los Alamos 
National Laboratory (LANL) concerning classified removable 
electronic media (CREM) this past year have been very 
disruptive to the nuclear weapons program. The conferees 
encourage the Administrator to become more involved in making 
sure these types of incidents are avoided in the future. The 
contractor has the primary day-to-day accountability for 
maintaining security of the laboratory, including the security 
of classified information. The contractor must ensure that a 
culture exists across the laboratory which maintains classified 
information in a very secure manner. However, the National 
Nuclear Security Administration also must be held accountable, 
and the Administrator must ensure the federal workforce is 
applying an appropriate level of oversight to avoid security 
lapses to the maximum extent possible.
Defense environmental management (sec. 3102)
      The House bill contained a provision (sec. 3102) that 
would authorize $6.9 billion for the Department of Energy for 
defense environmental management (EM) activities for fiscal 
year 2005, including funds for defense site acceleration 
completion and defense environmental services.
      The Senate amendment contained a similar provision (sec. 
3102) that would authorize $7.0 billion for defense 
environmental activities.
      The conferees agree to authorize $7.0 billion for defense 
environmental management, the amounts of the budget request, 
including $6.0 billion for defense site acceleration completion 
and $986.5 million for defense environmental services, an 
increase of $4.0 million. The conferees agree to authorize this 
$4.0 million increase in defense environmental services for 
newly generated waste requirements and ground water cleanup 
activities at the Lawrence Livermore National Laboratory in 
California (Project HQ-SW-0013Y).
      Of the amounts authorized to be appropriated in the 
defense site acceleration completion program, $6.0 million may 
be available for the Hazardous Materials Management and 
Emergency Response (HAMMER) Training Center. While the 
conferees recognize that HAMMER is an important facility for 
the training of emergency response personnel, the conferees 
note that HAMMER may be more appropriately funded and managed 
by the Department of Homeland Security.
Other defense activities (sec. 3103)
      The House bill contained a provision (sec. 3103) that 
would authorize $657.6 million for the Department of Energy 
(DOE) for other defense activities for fiscal year 2005.
      The Senate amendment contained a similar provision (sec. 
3103) that would authorize $568.1 million for DOE for other 
defense activities.
      The conferees agree to include a provision that would 
authorize $636.0 million, a reduction of $27.6 million below 
the budget request.
      The budget request included $10.6 million for energy 
security and assurance. The conferees recommend no funds 
forthese activities. The operational component for this office was 
transferred to the Department of Homeland Security in fiscal year 2003. 
The conferees do not support using Atomic Energy Act funds for 
nondefense activities.
      The budget request included $255.1 million for the Office 
of Security. The conferees agree to authorize $256.6 million 
for the Office of Security, an increase of $1.5 million above 
the budget request for International Nuclear Analysis.
      The budget request included $34.9 million for the Office 
of Legacy Management. The conferees agree to authorize $35.9 
million for the Office of Legacy Management, an increase of 
$1.0 million above the budget request. The conferees direct 
$500,000 of this increase be added to the $2.5 million provided 
for worker and community transition, for a total authorization 
of $3.0 million. The remaining $500,000 shall be used for Local 
Stakeholder Organizations.
      The budget request included $112.9 million for nuclear 
energy. The conferees agree to authorize $114.3 million for 
nuclear energy, an increase of $1.5 million over the budget 
request for the Lynchburg Technology Center in Virginia to 
inspect and repackage the spent nuclear fuel stored in aluminum 
canisters. The Senate amendment would authorize $1.1 million 
for these activities within defense site acceleration 
completion. The conferees note that these activities should be 
addressed by the Office of Nuclear Energy, the office with 
primary responsibility for these materials.
      The budget request included $92.4 million for defense 
related administrative support (DRAS). The conferees recommend 
$71.4 million for DRAS, a reduction of $21.0 million below the 
budget request. The conferees are concerned that the activities 
conducted by DRAS are not defense activities, but instead 
support the general administrative responsibilities of the 
Department of Energy. There are many activities conducted by 
the defense funded programs at DOE which are paid for entirely 
by the defense programs that support the Department of Energy 
broadly. The conferees prefer not to use Atomic Energy Defense 
funds for nondefense activities. The conferees encourage the 
Department of Energy to restrict future budget requests for 
Atomic Energy Defense funds to defense activities.
      The budget request included $5.0 million for the Office 
of Future Liabilities (FL). The conferees recommend no funds 
for these activities. The conferees are concerned that DOE is 
creating this new office to conduct essentially the same type 
of work being conducted by the Office of Environmental 
Management (EM). The conferees strongly encourage DOE to 
include this function in the EM program to avoid the cost and 
inefficiency of creating a new office.
Defense nuclear waste disposal (sec. 3104)
      The House bill contained a provision (sec. 3104) that 
would authorize $131.0 million for defense nuclear waste 
disposal (DNWD).
      The Senate amendment contained a similar provision (sec. 
3104) that would authorize $108.0 million for DNWD.
      The conferees agree to include a provision that would 
authorize $120.0 million, a reduction of $11.0 million below 
the budget request.

   Subtitle B--Program Authorizations, Restrictions, and Limitations

Report on requirements for Modern Pit Facility (sec. 3111)
      The Senate amendment contained a provision (sec. 3111) 
that would prohibit the Secretary of Energy from obligating or 
expending more than half of the funds available for the Modern 
Pit Facility (MPF) until 30 days after the Administrator of the 
National Nuclear Security Administrator (NNSA) submits a report 
to congressional defense committees setting forth the validated 
pit production requirements for the MPF, and one additional 
report on the stockpile required by the Energy and Water 
Development Appropriations Act, 2004 (Public Law 108-137). The 
requirement shall be developed in consultation with the 
Department of Defense.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Administrator of the NNSA to submit a report to 
congressional defense committees setting forth the validated 
pit production requirements for the MPF not later than January 
31, 2005 based on certain assumptions for pit lifetimes. In 
addition, the provision does not restrict the Secretary's 
authority to obligate and expend the funds available for the 
MPF pursuant to section 3101.
Two-year extension of authority for appointment of certain scientific, 
        engineering, and technical personnel (sec. 3112)
      The House bill contained a provision (sec. 3111) that 
would extend the authority of the Secretary of Energy to 
appoint certain scientific, engineering, and technical 
personnel until September 30, 2006.
      The Senate amendment contained an identical provision 
(sec. 3142).
      The conference agreement includes this provision.
Limited authority to carry out new projects under Facilities and 
        Infrastructure Recapitalization Program after project selection 
        deadline (sec. 3113)
      The House bill contained a provision (sec. 3112) that 
would amend section 3114 of the National Defense Authorization 
Act for Fiscal Year 2004 (Public Law 108-136) to give the 
Administrator of the National Nuclear Security Administration 
(NNSA) greater flexibility in adding projects or updating 
priorities to projects within the Facilities and Infrastructure 
Recapitalization Program (FIRP).
      The Senate amendment contained a similar provision (sec. 
3113) that would amend section 3114 of the National Defense 
Authorization Act for Fiscal Year 2004 (Public Law 108-136) to 
permit the Administrator of the NNSA to make no more than five 
modifications per fiscal year, and would limit each 
modification to a specific building, facility, or other 
improvement at an NNSA site. The provision would also prohibit 
any modifications until 60 days after the congressional defense 
committees receive both the report required in section 3114(c), 
setting forth the guidelines on the conduct of the readiness in 
technical base and facilities (RTBF) program, and a list of 
projects selected for inclusion in the FIRP program as required 
by section 3114(a). Nothing should delay the completion of the 
section 3114(c) report or the completion of the section 3114(a) 
project section required by the Act.
      The House recedes.
Modification of milestone and report requirements for National Ignition 
        Facility (sec. 3114)
      The Senate amendment contained a provision (sec. 3114) 
that would modify and extend current reporting requirements for 
the National Ignition Facility (NIF), section 3137 of the 
National Defense Authorization Act for Fiscal Year 2002 (Public 
Law 107-107), to review all program elements necessary for both 
achieving ignition and enabling NIF to be a fully functioning 
facility.
      The House bill contained no similar provision.
      The House recedes.
      The conferees strongly support NIF and are encouraged by 
the recent progress in constructing NIF, and the initiation of 
experiments on NIF in support of the science-based stockpile 
stewardship program. The purpose of this provision is to ensure 
there is better internal and external oversight of the project 
by requiring milestones on construction, ignition, and the 
scientific experiments.
Modification of submittal date of annual plan for stewardship, 
        management, and certification of warheads in the nuclear 
        weapons stockpile (sec. 3115)
      The Senate amendment contained a provision (sec. 3115) 
that would change the due date of the annual reporting 
requirement for the stockpile stewardship program from March 15 
to May 1.
      The House bill contained no similar provision.
      The House recedes.
      The conferees believe that changing the due date for the 
report will allow the Department of Energy to submit a complete 
and timely report.
Defense site acceleration completion (sec. 3116)
      The Senate amendment contained a provision (sec. 3116) 
that would authorize the Secretary of Energy to determine that, 
notwithstanding any other provision of law, high-level 
radioactive waste does not include radioactive material 
resulting from the reprocessing of spent nuclear fuel if (a) 
the radioactive material does not require permanent isolation 
in a deep geologic repository for spent fuel or highly 
radioactive waste pursuant to criteria promulgated by the 
Secretary inconsultation with the Nuclear Regulatory Commission 
(NRC); (b) to the maximum extent practical, that the highly radioactive 
radionuclides were removed in accordance with NRC approved criteria; 
and (c) that materials from storage tanks are disposed of in a facility 
pursuant to a State-approved closure plan, or a State issued permit, 
authority for the approval or issuance of which is conferred on the 
State outside of this Act. This provision would apply to the material 
stored at the Savannah River Site in South Carolina.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
the Secretary of Energy to determine, in consultation with the 
Nuclear Regulatory Commission (NRC), that notwithstanding the 
provisions of the Nuclear Waste Policy Act of 1982, the 
requirements of section 202 of the Energy Reorganization Act of 
1974 and other laws that define classes of radioactive waste, 
the term ``high-level radioactive waste'' does not include 
radioactive waste resulting from the reprocessing of spent 
nuclear fuel if: (1) the waste does not require permanent 
isolation in a deep geologic repository for spent fuel or high-
level radioactive waste, (2) the waste has had highly 
radioactive radionuclides removed to the maximum extent 
practical and (3) the waste either does not exceed 
concentration limits for Class C low-level waste as set out in 
section 61.55 of title 10, Code of Federal Regulations (CFR), 
and will be disposed of in compliance with the performance 
objectives set out in subpart C of part 61 of title 10, CFR, 
pursuant to a State-approved closure plan or State-issued 
permit, authority for the approval or issuance of which is 
conferred on the State outside of this section or, if the waste 
does exceed concentration limits for Class C low-level waste, 
the waste will be disposed of in compliance with the 
performance objectives set out in subpart C of part 61 of title 
10, CFR, pursuant to a State-approved closure plan or State-
issued permit, authority for the approval or issuance of which 
is conferred on the State outside of this section, and pursuant 
to plans developed by the Secretary in consultation with the 
NRC. Any modification to the performance objectives in subpart 
C of part 61 of title 10, CFR, shall apply to actions under 
this section.
      Section 3116 applies to material stored at a Department 
of Energy site at which activities are regulated by a covered 
State pursuant to approved closure plans or permits issued by 
the State. For purposes of this section, covered states are the 
States of South Carolina and the State of Idaho.
      The NRC shall, in coordination with the covered State, 
monitor the disposal actions taken by the Department of Energy 
(DOE). If the NRC considers any disposal actions by DOE to not 
be in compliance with the requirements set out in this section, 
the NRC shall inform DOE, the covered State, and the 
appropriate congressional committees. The Secretary of Energy 
shall reimburse the NRC for all expenses that the NRC incurs 
for performance under this section during fiscal year 2005. In 
subsequent fiscal years, the NRC shall include in the budget 
justification materials submitted to Congress the amounts 
required, not offset by revenues, for performance under 
subsections (a) and (b).
      Section 3116, as passed by the Senate, applied 
``notwithstanding any other provision of law.'' The conferees 
substitute this broad application with specific laws that are 
within the ambit of the ``notwithstanding'' clause; those laws 
that define classes of radioactive waste, including, but not 
limited to, the Nuclear Waste Policy Act, section 202 of the 
Energy Reorganization Act of 1974, section 2(10) of the Waste 
Isolation Pilot Plant Land Withdrawal Act and section 11dd. of 
the Atomic Energy Act of 1954, which cross-reference section 
2(12) of the NWPA's definition of ``high-level waste,'' section 
2(9) of the Low-Level Waste Policy Act which defines low-level 
radioactive waste with reference to high-level radioactive 
waste, and the authorities stemming from the Atomic Energy Act 
for establishing radiation protection standards for disposal of 
radioactive waste that were transferred to the EPA by 
Reorganization Plan No. 3 of 1970. Laws like the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980 
(Public Law 96-510) and the Resource Conservation and Recover 
Act of 1976 (Public Law 94-580) which do not specify or 
establish disposal standards based on these kinds of 
classifications of radioactive waste, would be unaffected, as 
would general environmental laws such as National Environmental 
Policy Act, and laws regulating radioactive waste for purposes 
other than disposal.
      The conferees note that nothing in section 3116 shall 
impair, alter, or modify the full implementation of any Federal 
Facility Agreement and Consent Order or other applicable 
consent decree for a Department of Energy site. In that 
connection, the conferees understand that pursuant to the 
settlement agreement entered into by the United States with the 
State of Idaho in the actions captioned Public Service Co. of 
Colorado v. Batt, Civil No. 91-0035-S-EJL, and United States v. 
Batt, Civil No. 91-0054-S-EJL, in the United States District 
Court for the District of Idaho, and the consent order of the 
United States District Court for the District of Idaho dated 
October 17, 1995 that effectuates this settlement agreement, 
the Department of Energy has committed to complete 
solidification of the sodium-bearing waste retrieved from tanks 
in the Tank Farm Facility at the Idaho Nuclear Engineering and 
Technology Center at the Idaho National Engineering and 
Environmental Laboratory (INEEL) by December 31, 2012 and to 
treat this material so that it is ready to be moved out of 
Idaho for disposal by a target date of 2035, regardless ofany 
ultimate decision on the classification of this waste. The conferees 
urge the Department to accelerate the final out-of-state disposal of 
this waste. Furthermore, the conferees direct the Secretary of Energy 
to submit a report to the congressional defense committees by March 1, 
2005 describing the Department's plans for the final disposal of the 
sodium bearing waste at INEEL. Section 3116 does not establish any 
precedent for and is not binding on the States of Washington, Oregon or 
any other state that is not a covered state for the management, 
storage, treatment, and disposition of radioactive and hazardous 
material.
      The conferees note that the Defense Nuclear Facilities 
Safety Board (DNFSB) has statutory responsibilities associated 
with the Department's defense site acceleration completion 
activities. Although this provision establishes new 
responsibilities for the NRC, nothing in this section is 
intended to alter the existing statutory authority of the DNFSB 
in any area.
      The conferees note that subsection (c) of this provision 
states that subsection (a) does not apply to any material 
transported from the state and subsection (e)(3) states that 
nothing in this section amends the definition of ``transuranic 
waste''. The conferees' intent is that nothing in this statute 
changes the disposal requirements for waste that will 
ultimately be disposed of at the Waste Isolation Pilot Plant. 
In addition, subsection (e)(5) states that nothing in this 
provision amends the West Valley Demonstration Project Act.
      The conferees note that subsection (f) provides for 
judicial review of any determination or agency action by the 
Secretary of Energy under this section consistent with the 
Administrative Procedure Act's provisions for judicial review 
as set out in chapter 7 of title 5 of the United States Code. 
Failure by the Nuclear Regulatory Commission to perform its 
monitoring responsibilities under subsection (b) is also 
subject to judicial review in accordance with those provisions. 
The conferees intend that the Secretary of Energy's actions 
under section 3116 are fully subject to judicial review 
notwithstanding any action by the Nuclear Regulatory 
Commission.
      The conferees note that section 3155 of the National 
Defense Authorization for Fiscal Year 2002 sets forth the 
obligations of the Department to manage and dispose of surplus 
plutonium shipped to the Savannah River Site. The authority 
granted to the Department under section 3116 to reclassify 
radioactive material does not extend to this plutonium nor does 
it relieve the Department of its obligations under Section 3155 
of the 2002 Act. Subsection (e)(4) was included to clarify this 
limitation.
Treatment of waste material (sec. 3117)
      The Senate amendment contained a provision (sec. 3120) 
that would authorize $350.0 million out of defense site 
acceleration completion and defense environmental services to 
be expended for activities at the Hanford Site in Washington, 
the Idaho National Engineering and Environmental Laboratory in 
Idaho, and the Savannah River Site in South Carolina for the 
safe management, treatment, storage, consolidation, and 
emptying and cleaning of tanks or tank farms used to store 
waste from reprocessing activities.
      The House bill would authorize $300.0 million for defense 
site acceleration completion to address waste incidental to 
reprocessing.
      The House recedes with an amendment that would authorize 
$350.0 million for defense site acceleration completion 
activities at the Idaho National Engineering and Environmental 
Laboratory in Idaho, the Savannah River Site in South Carolina, 
and the Hanford Site in Washington.
Local stakeholder organizations for 2006 closure sites (sec. 3118)
      The Senate amendment contained a provision (sec. 3121) 
that would direct the Secretary of Energy to establish local 
stakeholder organizations (LSOs) to operate in consultation 
with local elected officials at Department of Energy 
Environmental Management 2006 closure sites. This would include 
the Rocky Flats Environmental Technology Site, the Fernald 
Environmental Management Project, and the Miamisburg 
Environmental Management Project Mound Site.
      The House bill contained no similar provision.
      The House recedes with an amendment that would strike the 
portion of the provision which stated that the Federal Advisory 
Committee Act (FACA) (5 U.S.C. App.) does not apply to LSOs.
      The conferees note that as the community reuse 
organizations comply with FACA, LSOs will also have to comply 
with FACA. The conferees also encourage the LSOs to work with 
other community organizations and groups to allow a broad view 
to be considered.
Report to Congress on Advanced Nuclear Weapons Concepts Initiative 
        (sec. 3119)
      The Senate amendment contained a provision (sec. 3112) 
that would prohibit the Secretary of Energy from obligating or 
expending the funds available for advanced nuclear 
conceptsinitiative (ACI) until 30 days after the Administrator of the 
National Nuclear Security Administration submits a report on the 
planned activities for fiscal year 2005 under this initiative.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Administrator of the NNSA to submit a report setting forth 
the planned ACI activities in fiscal year 2005 by March 1, 
2005. The Secretary may fully obligate or expend the funds 
available for ACI.

                   Subtitle C--Proliferation Matters

Modification of authority to use International Nuclear Materials 
        Protection and Cooperation Program funds outside the former 
        Soviet Union (sec. 3131)
      The Senate amendment contained a provision (sec. 3131) 
that would amend section 3124 of the National Defense 
Authorization Act for Fiscal Year 2004, to remove the $50.0 
million limitation on the authority to use International 
Nuclear Materials Protection and Cooperation Program funds for 
projects and activities outside of the former Soviet Union to 
meet emerging proliferation threats. The provision would also 
clarify that this authority applies only to projects or 
activities that have not previously been authorized by 
Congress.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Acceleration of removal or security of fissile materials, radiological 
        materials, and related equipment at vulnerable sites worldwide 
        (sec. 3132)
      The Senate amendment contained a provision (sec. 3132) 
that would express the sense of Congress that the security of 
high-risk, proliferation-attractive fissile materials, 
radiological materials, and related equipment at vulnerable 
sites worldwide should be a top U.S. national security 
priority. The provision would also express the sense of 
Congress that the President may establish a Department of 
Energy Task Force on Nuclear Materials to carry out a program 
to undertake an accelerated, comprehensive worldwide effort to 
mitigate threats posed by high-risk, proliferation-attractive 
fissile materials, radiological materials, and related 
equipment located at sites potentially vulnerable to theft or 
diversion. The provision would include a list of specific 
activities that would be authorized under such a program.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Silk Road Initiative (sec. 3133)
      The House bill contained a provision (sec. 1421) that 
would authorize the Secretary of Energy to carry out a program 
known as the Silk Road Initiative to promote non-weapons-
related employment opportunities for scientists, engineers, and 
technicians formerly engaged in activities to develop and 
produce weapons of mass destruction in nations of the former 
Soviet Union in the Caucasus and Central Asia. The provision 
would encourage the Secretary to begin a pilot program in the 
Republic of Georgia, and would authorize the Secretary to spend 
up to $10.0 million on the program from funds available for 
nonproliferation and international security for fiscal year 
2005.
      The Senate amendment contained no similar provision.
      The Senate recedes with technical amendments.
      The conferees note that a number of independent states of 
the former Soviet Union have been helpful to the United States 
in the war on terrorism. Such states are new and struggling 
democracies and would benefit considerably from assistance to 
create sustainable jobs for their underemployed or unemployed 
scientists, engineers, and technicians who were formerly 
engaged in activities to develop and produce weapons of mass 
destruction. The conferees further note that it is the policy 
of the United States to seek to establish and promote programs 
to prevent the proliferation of scientific and technical 
expertise to develop and produce weapons of mass destruction 
from states of the former Soviet Union to countries of 
proliferation concern; and to assist independent states of the 
former Soviet Union that have been helpful to the United States 
in the war on terrorism so as to promote the creation of jobs 
that foster economic stability and democracy.
Nuclear Nonproliferation Fellowships for scientists employed by United 
        States and Russian Federation (sec. 3134)
      The House bill contained a provision (sec. 1422) that 
would authorize the Administrator for Nuclear Security to carry 
out aprogram under which the Administrator would award 
international exchange fellowships in the nuclear nonproliferation 
sciences to scientists employed at the Kurchatov Institute of the 
Russian Federation and the Lawrence Livermore National Laboratory of 
the United States. The fellowships would be known as Teller-Kurchatov 
Nonproliferation Fellowships. The provision would authorize the 
Administrator to spend up to $10.0 million on the program from funds 
available for nonproliferation and international security in fiscal 
year 2005.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would authorize 
the Administrator for Nuclear Security to carry out a program 
under which the Administrator would award international 
exchange fellowships in the nuclear nonproliferation sciences 
to scientists employed at nonproliferation research 
laboratories of the Russian Federation and the United States. 
The fellowships would be known as Nuclear Nonproliferation 
Fellowships. The provision would authorize the Administrator to 
use funds available for nonproliferation and international 
security in fiscal year 2005 for this fellowship program.
Utilization of international contributions to the Elimination of 
        Weapons Grade Plutonium Production Program (sec. 3135)
      The conferees agree to include a provision that would 
provide the Secretary of Energy authority to accept 
international contributions to the Elimination of Weapons Grade 
Plutonium Production Program. The provision would permit the 
Secretary of Energy to: (1) enter into agreements, in 
consultation with the Secretary of State, with a person, 
foreign government, or international organization for this 
purpose; and (2) use such contributions without further 
authorization or appropriation. The provision would require the 
Secretary to notify the congressional defense committees: (1) 
of the receipt of any international contributions for this 
program within 30 days of their receipt; and (2) of the 
intended use of any funds received 30 days before they may be 
utilized. The provision would also require the Secretary to 
submit an annual report to the congressional defense committees 
on the receipt and utilization of amounts received pursuant to 
this authority for each fiscal year. The provision would 
require that any funds not used within five years be returned 
to the contributor. The authority provided by this provision 
would expire on December 31, 2011.

                       Subtitle D--Other Matters

Indemnification of Department of Energy contractors (sec. 3141)
      The Senate amendment contained a provision (sec. 3141) 
that would amend section 170d(1)(A) of the Atomic Energy Act of 
1954 to allow the Department of Energy to continue to enter 
into contracts for indemnification for an additional two years, 
through December 31, 2006.
      The House bill contained no similar provision.
      The House recedes.
Report on maintenance of retirement benefits for certain workers at 
        2006 closure sites after closure of sites (sec. 3142)
      The Senate amendment contained a provision (sec. 3122) 
that would require the Assistant Secretary of Energy for 
Environmental Management to submit a report to the Secretary of 
Energy on maintenance of retirement benefits for workers at 
2006 closure sites shortly before closure of those sites. The 
report would include the number of workers at the closure sites 
which would not receive retirement benefits if the site where 
they work is closed early; the cost to provide benefits to 
these workers; and the impact on collective bargaining 
agreements due to the workers' loss of benefits. The Secretary 
of Energy would be required to send the report to the 
congressional defense committees.
      The House bill contained no similar provision.
      The House recedes with an amendment that would clarify 
the scope of the report.
      The conferees direct the Department of Energy to use the 
contracts that were in effect on September 30, 2003 as the 
contracts for determining the target completion date.
Report on efforts of National Nuclear Security Administration to 
        understand plutonium aging (sec. 3143)
      The Senate amendment contained a provision (sec. 3123) 
that would require the Administrator of the National Nuclear 
Security Administration (NNSA) to enter into a contract with a 
Federally Funded Research and Development Center for a study to 
assess the efforts of the NNSA to understand the aging of 
plutonium used in nuclear weapons.
      The House bill contained no similar provision.
      The House recedes.
Support for public education in the vicinity of Los Alamos National 
        Laboratory, New Mexico (sec. 3144)
      The Senate amendment contained a provision (sec. 3144) 
that would require the Secretary of Energy (DOE) to include in 
all the management and operating contracts for the Los Alamos 
National Laboratory (LANL), entered into after September 30, 
2005, a provision that would require the contractor to provide 
$8.0 million per year for support for public secondary and 
elementary education to the Los Alamos Public School District. 
The House bill contained no similar provision.
      The House recedes.
Review of Waste Isolation Pilot Plant, New Mexico, pursuant to 
        competitive contract (sec. 3145)
      The House bill contains a provision (sec. 3133) that 
would direct the Secretary of Energy to enter into a new 
contract for independent reviews of the design, construction, 
and operations of the Waste Isolation Pilot Plant in New Mexico 
(WIPP).
      The Senate amendment contained a similar provision (sec. 
3145) that would direct the Secretary of Energy to use 
competitive procedures in future contracts for independent 
reviews of the design, construction, and operations of WIPP.
      The House recedes.
National Academy of Sciences study on management by Department of 
        Energy of certain radioactive waste streams (sec. 3146)
      The House bill contains a provision (sec. 3132) that 
would require the Secretary of Energy to enter into an 
agreement with the National Research Council of the National 
Academy of Sciences to complete a study of the plans of the 
Department of Energy (DOE) to manage certain waste streams that 
are not planned for disposal in a high-level repository. These 
streams are located at the Savannah River site, South Carolina, 
the Idaho National Engineering and Environmental Laboratory, 
Idaho, and the Hanford Reservation, Washington.
      The provision would require the National Research Council 
to submit an interim report no later than six months after 
entering into the agreement with the Secretary and a final 
report no later than one year after entering such agreement.
      The Senate amendment contained a similar provision (sec. 
3117) that would authorize $750,000 for a similar study.
      The Senate recedes with an amendment which would require 
the Secretary of Energy to enter into an arrangement with the 
National Research Council of the National Academy of Sciences 
(NAS) to carry out a study of the plans of the Department of 
Energy to manage waste, from reprocessed spent nuclear fuel, 
which exceeds the concentration limits for Class C low-level 
waste set out in section 61.55 of title 10, Code of Federal 
Regulations (CFR). The waste that is the subject of the study 
is stored in tanks at the Savannah River Site, in South 
Carolina, the Idaho National Engineering and Environmental 
Laboratory (INEEL), in Idaho, and the Hanford Reservation, in 
Washington, and it is waste which DOE does not plan to dispose 
of in a repository for spent nuclear fuel and high-level waste.
      The conferees note that the study shall evaluate the 
state of the Department's understanding of the physical, 
chemical, and radiological characteristics of the waste. 
Additionally, the study should evaluate any actions, in 
addition to those contained in the Department's current plans, 
which should be considered to ensure the plan's compliance with 
the performance objectives of part 61 of title 10, Code of 
Federal Regulations. In addition, the study shall evaluate the 
adequacy of the Department's plans for monitoring disposal 
sites to verify compliance with the performance objectives in 
part 61 of title 10, Code of Federal Regulations, any existing 
technology alternatives to these plans, and any existing 
technology gaps.
      The National Research Council may develop recommendations 
it considers appropriate and directly related to the subject 
matter of the study. The National Research Council shall submit 
the reports to the Secretary of Energy and the appropriate 
congressional committees. Of the amounts authorized for the 
Department of Energy, $1.5 million shall be available for 
carrying out this study.
Compensation of Pajarito Plateau, New Mexico, homesteaders for 
        acquisition of lands for Manhattan Project in World War II 
        (sec. 3147)
      The Senate amendment contained a provision (sec. 3146) 
that would establish a fund to settle outstanding claims 
derived from the acquisition of land used in the Manhattan 
Project. Theprovision would authorize $10.0 million to settle 
claims for compensation by Pajarito Plateau homesteaders.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the United States District Court for the District of New Mexico 
to appoint a special master to identify class members, receive 
claims, resolve contests, and address such other matters the 
Court may order. The claims to be settled from the fund are the 
claims pending before the court as Civil Number 00-60. In 
addition, the provision would establish guidelines for settling 
claims using the fund. Following all determinations, the 
Special Master would be directed to award the allocated amounts 
from the fund after approval by the Court. The conferees intend 
this fund and the payments made from it constitute full and 
complete settlement of these claims.
Modification of requirements relating to conveyances and transfer of 
        certain land at Los Alamos National Laboratory, New Mexico 
        (sec. 3148)
      The conferees agree to include a provision that would 
authorize the Department of Energy to transfer certain parcels 
of land at the Los Alamos National Laboratory in New Mexico to 
the Los Alamos County Public Schools in New Mexico. The 
conferees note the financial benefits realized through this 
land transfer will be used to facilitate economic development 
for the Los Alamos County Public Schools.

 Subtitle E--Energy Employees Occupational Illness Compensation Program

Improvements to the Energy Employees Occupational Illness Compensation 
        Program Act (sec. 3161-3170)
      The Senate amendment contained a series of provisions 
(sec. 3151-3157) that would amend section 3621 of the Energy 
Employees Occupational Illness Compensation Program Act 
(EEOICPA) of 2000 (Public Law 106-398). The primary changes 
that the provisions would make to the EEOICPA program would 
transfer claims processing under Part D of EEOICPA from the 
Department of Energy (DOE) to the Department of Labor (DOL), 
direct DOL to compute compensation payments and require DOL to 
make such compensation payments to the employees.
      The Senate amendment would allow covered DOE contractor 
employees to elect to proceed under State workers' compensation 
systems or choose to receive compensation under EEOICPA Part D.
      The Senate amendment allowed covered DOE contractor 
employees who have been determined to be entitled to 
compensation and benefits for an occupational illness 
contracted in the performance of duty at a DOE facility under 
subtitle B of EEOICPA, to be treated as having contracted the 
occupational illness through exposure at DOE facilities for 
purposes of subtitle D. Employees not previously covered under 
subtitle B of EEOICPA would be determined to have contracted an 
illness through exposure at a DOE facility for purposes of 
subtitle D if (1) it is at least as likely as not that exposure 
to a toxic substance was a significant factor in aggravating, 
contributing to, or causing the illnesses; and (2) it is at 
least as likely as not that the exposure to such toxic 
substance was related to employment at a DOE facility. The 
Secretary of Labor would make such determinations. In making 
these determinations, the Secretary of Labor would be allowed 
to use physicians to assist in making such determinations.
      The amount of workers' compensation to which covered DOE 
contractor employees or eligible survivors would be entitled 
would be determined under the appropriate State workers' 
compensation system. Covered DOE contractor employees 
determined to be eligible for compensation for an occupational 
illness or covered illness under these provisions would also be 
furnished medical benefits. Covered DOE contractor employees 
would also be able to seek review by the Secretary of Labor of 
determinations concerning eligibility and levels of 
compensation decided against the employees.
      Attorney fees for assistance on a claim under this 
subtitle would be available for covered DOE contractor 
employees to the same extent that they are currently available 
under Subtitle B.
      The Senate amendment would transfer administration of 
subtitle D of EEOICPA to the Secretary of Labor, and direct the 
Secretary to work with the Secretary of Energy to transfer all 
applicable records, files and other data from DOE to DOL.
      The Senate amendment would also expand the coverage of 
individuals employed by atomic weapons employers (AWE) who were 
exposed to residual radiation after DOE related work at the AWE 
facility stopped. Additionally, the Director of the National 
Institute of Occupational Safety and Health (NIOSH) would 
update the 2000 report on residual contamination of AWE 
facilities.
      The Senate amendment would establish in DOL a new Office 
of the Ombudsman to assist individuals in making claims under 
subtitle D of EEOICPA and direct the Secretary of Labor to 
prescribe regulations necessary to carry out these provisions. 
The provisions would also set forth a Sense of Congress that 
theSecretary of Energy should adopt a policy not to oppose any 
final positive determinations with respect to injured workers at DOE 
facilities and AWE facilities under a State workers' compensation 
adjudication system unless such determinations are frivolous. The 
Senate amendment would also set forth findings that DOL establish a 
resource center in western New York to provide assistance to energy 
employees making claims under subtitle B of EEOICPA, and set forth the 
sense of the Senate that the Ombudsman should evaluate current 
assistance and recommend a site for a resource center.
      The Senate amendment also included provisions that would 
designate under specified circumstances certain former nuclear 
weapons program workers as members of the Special Exposure 
Cohort (SEC) under section 3621 of EEOICPA. Funding for all 
programs created, modified or expanded under these provisions 
would be subject to appropriations.
      The House bill contained no similar provision.
      The House recedes with an amendment.
      The conferees agree to repeal subtitle D of EEOICPA, 
establish a new compensation scheme and direct the Department 
of Labor (DOL) to administer the program. The new program would 
be established as subtitle E of EEOICPA.
      Under the new subtitle E of EEOICPA, covered DOE 
contractor employees would be compensated based on any 
impairment from a covered illness resulting from exposure to a 
toxic substance at a DOE facility. The employee would receive 
additional compensation if the impairment resulted in 
significant wage losses. The primary goal of the conferees was 
to create a simple, fair and uniform workers compensation 
system and avoid chronic delays and inefficiencies that workers 
currently encounter.
      Specifically, employees would receive $2,500 for every 
degree of impairment, resulting from a covered illness 
contracted by that employee through exposure to a toxic 
substance at a DOE facility. Additionally, the covered employee 
would be compensated for annual wage loss, defined as the 
average salary for the 36 months preceding the month the wage 
loss began, as follows: (1) $10,000 for each calendar year 
where the employee's annual wage exceeded 50 percent of the 
employee's average annual wage at the DOE facility but did not 
exceed 75 percent of their average annual wage; or $15,000 for 
each calendar year where the employee's annual wage did not 
exceed 50 percent of the employee's average annual wage at the 
DOE facility. The wage losses must result from the covered 
illness as determined by DOL.
      The American Medical Association's Guides to the 
Evaluation of Permanent Impairment should be used in making 
these determinations. On the other hand, as the Guides state 
``Impairment assessment is a necessary first step for 
determining disability.'' [Emphasis in original] The new 
compensation regime that would be established in subtitle E of 
EEOICPA establishes a two part award--one for impairment and 
one for work loss as a result of disability. As structured in 
subtitle E the two part award is a unique way to compensate 
employees for impairments as well as compensation based upon 
past and present earnings losses from disability. In some 
cases, particularly in cases involving illnesses to long 
exposure to toxic substances, there may be an illness for which 
the AMA Guides do not provide an impairment rating. As a 
result, each individual employee should be evaluated 
individually and the determination of impairment and work 
disability should be through a combination of the Guides and by 
physicians suitably trained and qualified. Because of the 
unique nature of the compensation under subtitle E, the 
conferees do not intend the use of the Guides in this context 
to establish a precedent for other federal compensation 
programs.
      The conferees also include a provision that would provide 
three categories of compensation for survivors of a covered DOE 
contractor employee. Under category one, the survivor would 
receive $125,000, if the Secretary of Labor determines that the 
employee would have been entitled to compensation under part E 
of EEOICPA and it is at least as likely as not that exposure to 
a toxic substance at a DOE facility was a significant factor in 
aggravating, contributing to, or causing death. Under category 
two, the survivor would receive $150,000, if he or she meets 
the criteria under category one, and the Secretary of Labor 
also determines that there was an aggregate period of not less 
than 10 years, before the employee attained normal retirement 
age, during which, as a result of any covered illness 
contracted by the employee through exposure of a toxic 
substance at a DOE facility, the employee's annual wage did not 
exceed 50 percent of the average annual wage of the employee. 
Under category three, the survivor would receive $175,000, if 
he or she meets the criteria under category one, plus the 
Secretary of Labor also determines that there was an aggregate 
period of not less than 20 years, before the employee attained 
normal retirement age, during which, as a result of any covered 
illness contracted by the employee through exposure of a toxic 
substance at a DOE facility, the employee's annual wage did not 
exceed 50 percent of the average annual wage of the employee. 
The survivor would be entitled to receive the highest category 
for which the survivor qualifies. The maximum aggregate benefit 
available under subtitle E of EEOICPA is $250,000.
            Radiation Exposure Compensation Act
      The conferees also agree to make compensation under 
subtitle E applicable to certain uranium employees under 
section 5 of the Radiation Exposure Compensation Act (RECA) (42 
U.S.C. 2210 note).Compensation for these employees would be 
determined on the same basis as it applies to a DOE contractor employee 
under section 3675 of subtitle E of EEOICPA.
            Office of the Ombudsman
      The conferees agree to include a provision similar to the 
Senate amendment to create an Office of the Ombudsman. The 
authority for the Office of the Ombudsman would expire three 
years after enactment. The conferees expect the Ombudsman to 
work with the Secretary of Labor to ensure the Ombudsman is 
technically proficient on subtitle E of EEOICPA to the maximum 
extent practicable before they begin conducting covered DOE 
contractor employee outreach. The conferees also expect the 
Ombudsman to make recommendations the Ombudsman considers 
appropriate for the improvement of the practices of DOL in 
administering subtitle E of EEOICPA. The conferees urge the 
Secretary to hire a director of the Office of the Ombudsman 
within 120 days of enactment.
            Administrative Provisions
      The conferees have included a series of provisions that 
deal with administrative and judicial review, physician 
services, medical benefits, attorneys fees, offsets, 
subrogation, exclusivity of remedy, treatment of payments, and 
administrative matters between DOL and DOE concerning records, 
files and other data.
      Compensation under subtitle E would be offset by any 
benefits an individual receives for the same covered illness 
through a State workers' compensation system. The aggregate 
amount of compensation received on behalf of a covered employee 
under subtitle E, other than medical benefits, shall not exceed 
$250,000.
      The conferees believe the benefits available under 
subtitle E of EEOICPA are a fair and equitable alternative to 
the complexities and uncertainties that employees and their 
survivors may face in State workers' compensation programs. If 
an election is made to proceed under subtitle E of EEOICPA, the 
covered DOE contractor employer and survivor will not be able 
to bring additional actions against the United States or the 
DOE contractor for covered illnesses. A covered DOE contractor 
employee or their survivor may choose to forego benefits under 
subtitle E of EEOICPA and instead seek compensation through a 
state workers compensation system, litigation or any other 
available compensation mechanisms.
      The benefits paid under subtitle E and the administrative 
costs of subtitle E will be treated for budget and accounting 
purposes as mandatory spending.
      The Secretary is required to establish a process for 
administrative appeals. In developing this process, the 
conferees urge the Secretary to consider other administrative 
appeals processes for similar programs. Determining whether an 
illness was caused by exposure to toxic substances can be 
complex. Therefore, the conferees urge the Secretary to 
consider an appeal process whereby claimants have an 
opportunity to have an adverse determination reviewed by an 
independent physician or physician panel. The conferees note 
that the Secretary has the authority to hire physician panels, 
and urge the Secretary to hire physicians with experience and 
competency in diagnosing illnesses caused by exposure to toxic 
substances in exercising this authority.
      The conferees note that included in the administrative 
provisions is a provision that would direct the Social Security 
Administration to make available to the Secretary of Labor 
earnings information necessary to carry out the requirements of 
subtitle E. The conferees expect that protections will be in 
place at DOL that will protect this information from 
unauthorized disclosure to the same extent the information was 
protected before being transferred to DOL.
      The conferees urge the Secretary, in consultation and 
coordination with the Secretary of Energy, to notify all 
applicants of the changes in the management of this program. 
The conferees recommend that the Secretary, through or in 
coordination with the Office of the Ombudsman, explain program 
changes, provide guidance on changes in the processing of 
claims, and provide a toll free ``hotline'' which claimants can 
call for assistance.
            Special Exposure Cohort
      The conferees are concerned that the administrative 
process for designating additional special exposure cohorts 
(SEC) is too slow and should be accelerated. Covered DOE 
contractor employees from the 1940s, 50s, 60s, and 70s whose 
occupational illness was caused through exposure to toxic 
substances while working in DOE contractor facilities should 
receive compensation under subtitle B of EEOICPA. Unfortunately 
many of the records or other data has been lost or destroyed. 
As a result of these delays, the conferees have included 
several provisions that would make improvements to subtitle B 
of EEOICPA in an effort to accelerate the process for 
designating additional SECs. First, the Secretary of Energy is 
directed to ensure that members and staffof the NIOSH Advisory 
Board have an opportunity to apply for necessary security clearances. 
The Secretary of Energy should process these applications within 180 
days after receiving a completed application. In addition, the 
Secretary of Energy is directed, in accordance with law, to provide the 
Advisory Board access to any information that the Board considers 
relevant to carry out its responsibilities under EEOICPA, including 
Restricted Data.
      To ensure that applications to be a SEC member are 
processed promptly, new timelines have been included. Within 
180 days of receipt of a petition for designation as members of 
a SEC, the Director of NIOSH must submit to the Advisory Board 
a recommendation on that petition, including all supporting 
documentation. During the 180 period when NIOSH is preparing 
the petition for review by the Advisory Board, NIOSH should 
identify all deficiencies in the petition within the first 30 
days. When the President receives an affirmative recommendation 
from the Advisory Board to designate a class to the SEC, the 
President shall have a period of 30 days in which to accept or 
reject the recommendation and notify Congress. If the President 
does not send a determination notice within 30 days, and if 
there is an affirmative Board recommendation, the class 
recommended to be a SEC will automatically become a SEC, 
subject to a 30 day notification period in Congress.
      In an effort to prevent further delays for petitions 
already filed, the Board would be directed to convene an 
emergency meeting if NIOSH completes the evaluation of a 
petition more than ten days before a regularly scheduled Board 
Meeting. This emergency authority shall expire on March 1, 
2005. In addition, the President is directed to submit a report 
to Congress by March 15, 2005 providing a status update on all 
petitioners who filed by October 1, 2004. The report should 
include, for each petition, the estimated time to complete 
consideration of the petition and any anticipated actions or 
circumstances that could preclude the Board from acting upon 
that petition before the end of fiscal year 2005. The conferees 
expect NIOSH to respond promptly throughout the process to 
ensure the petition and all supporting documentation is filed 
and processed correctly.
      The conferees are concerned that auditors hired to 
conduct an audit of NIOSH and the Advisory Board are having a 
difficult time getting information and maintaining an 
appropriate degree of independence. The conferees expect NIOSH 
to work to ensure these issues are addressed in future audits.
      Pursuant to a recommendation of the Comptroller General, 
in the September, 2004 Report (GAO-04958), to the extent the 
Secretary of Labor determines it useful and practicable, the 
Secretary of Labor shall direct the Director of NIOSH to 
prepare site profiles for a DOE facility based on records, 
files and other data provided by the Secretary of Energy.
      The conferees urge the Director of NIOSH to consult with 
DOE contract workers and their representatives in developing 
these site profiles, and to update site profiles as information 
becomes available. The conferees have also included a provision 
that would direct the Secretary of Health and Human Services to 
submit to Congress a report setting forth the time frames for 
completing the site profiles.
            Residual Radiation Exposure
      The conferees include the provisions from the Senate 
amendment that expand coverage under subtitle B to include 
workers exposed to residual radiation contamination. In 
addition, the provision would add a definition of the term 
radiation dose applicable to employees exposed to residual 
radiation.
      The conferees have also agreed to include a provision 
that would direct the director of NIOSH to update the 2003 
residual radiation report.

                   Legislative Provisions Not Adopted

Annual report on expenditures for safeguards and security
      The Senate amendment contained a provision (sec. 3118) 
that would require the Secretary of Energy to submit an annual 
report describing the activities and costs of the safeguards 
and security program at the defense nuclear facilities across 
the Department of Energy (DOE). The Senate was concerned that 
the DOE was considering a change in budgeting for safeguards 
and security that would include these costs as part of the cost 
of each DOE program. The Senate was concerned that such an 
approach to budgeting, particularly during the two-year effort 
to comply with the new design basis threat, would mask the cost 
of these important requirements.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees are satisfied that the DOE will continue to 
include sufficient transparency in their budget request for 
safeguards and security in fiscal year 2006.
Authority to consolidate counterintelligence offices of Department of 
        Energy and National Nuclear Security Administration within the 
        National Nuclear Security Administration
      The Senate amendment contained a provision (sec. 3119) 
that would authorize the Secretary of Energy to consolidate the 
counterintelligence offices of the Department of Energy (DOE) 
and the National Nuclear Security Administration (NNSA) within 
NNSA.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees note that the NNSA was originally set up as 
a semi-autonomous agency, in large part, to ensure that there 
would be adequate focus and priority placed on 
counterintelligence activities. The conferees urge the 
counterintelligence offices at DOE and NNSA to work together to 
ensure security of both DOE and NNSA programs and facilities.
Transfers and reprogrammings of National Nuclear Security 
        Administration funds
      The House bill contains a provision (sec. 3131) that 
would direct the Administrator of the National Nuclear Security 
Administration (NNSA) to specifically submit notifications and 
requests for reprogramming directly to the congressional 
defense committees, with the only role of the Department of 
Energy (DOE) being for the Chief Financial Officer (CFO) to 
certify whether funds covered by the notice or request are 
available.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees believe that there is a present need for 
better coordination between the Administrator of the NNSA and 
the CFO of DOE regarding budgetary actions.
      The National Defense Authorization Act for Fiscal Year 
2000 established the National Nuclear Security Administration 
(50 U.S.C. 2401, otherwise known as the ``NNSA Act''). In 
passing this Act, Congress created the National Nuclear 
Security Administration as a semi-autonomous agency within the 
DOE. The mission of the NNSA is to enhance the national 
security through the military application of nuclear energy, to 
reduce global danger from weapons of mass destruction, and to 
promote international nuclear safety. The cornerstone of this 
Act is to provide significant autonomy to the NNSA.
      Among the various functions assigned in the Act, the NNSA 
Administrator has authority over, and is responsible for, all 
programs and activities of the NNSA, including budget 
formulation, guidance and execution, and other financial 
matters (50 U.S.C. 2402). The NNSA Act also provides for 
separate treatment of NNSA's budget request in the President's 
budget (50 U.S.C. 2451) and for the Administrator to establish 
procedures for planning, programming, budgeting, and financial 
activities (50 U.S.C. 2452). Congress' intent was to provide 
autonomy for the NNSA in numerous functions, including all 
those functions associated with budget formulation and 
execution.
      The conferees are deeply concerned that the overall 
management of the NNSA budget process may not be carried out in 
accordance with the full intent of the NNSA Act and that 
current processes have caused unnecessary delays in budget 
actions. Accordingly, the Secretary of Energy and the 
Administrator are directed, within 60 days of enactment of this 
Act, to develop a process that streamlines all NNSA-related 
budgetary actions including, but not limited to reprogramming 
requests to Congress, and that is in full compliance with the 
NNSA Act. This process should establish realistic deadlines for 
DOE and NNSA to complete budget-related actions, such as 
reprogrammings. The Secretary and the Administrator shall 
submit a report to the congressional defense committees by 
March 1, 2005 outlining the deadlines for budget-related 
actions that were established. Commencing on March 1, 2006, and 
annually thereafter on March 1, the Secretary and the 
Administrator shall submit a report to the congressional 
defense committees assessing the Department's and National 
Nuclear Security Administration's performance in meeting these 
deadlines, and if applicable, the reasons for failing to meet 
the established deadlines.
Additional amount for defense site acceleration completion
      The House bill contained a provision (sec. 3134) that 
would authorize $50.0 million for defense site acceleration 
completion.
      The Senate amendment contained no similar provision.
      The House recedes.
Improvements to Energy Employees Occupational Illness Compensation 
        Program
      The House bill contained a provision (sec. 3135) that 
would amend section 3661 of the Energy Employees Occupational 
Illness Compensation Program Act of 2000 (42 U.S.C. 785) by 
requiring theSecretary of Health and Human Services to select 
individuals to serve as panel members based on experience and 
competency in diagnosing occupational illness.
      The Senate amendment contained a similar provision (sec. 
3143) that would amend section 3661 of the National Defense 
Authorization Act for Fiscal Year 2001 (Public Law 106-398), 
part D of the Energy Employees Occupational Illness Program Act 
(EEOICPA). The provision would eliminate the following three 
restrictions: (1) the pay cap on physicians serving on part D 
physicians panels; (2) the requirement that the part D 
physicians work only on a temporary or intermittent basis; and 
(3) the requirement for agreements between DOE and States.
      The conferees agree not to adopt either provision.
          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

                     Legislative Provisions Adopted

Defense Nuclear Facilities Safety Board (sec. 3201)
      The House bill contained a provision (sec. 3201) that 
would authorize $21.3 million for the Defense Nuclear 
Facilities Safety Board for fiscal year 2005, an increase of 
$1.0 million to fund cost-of-living pay increases for permanent 
staff and to hire outside consultants as needed for technical 
oversight of new Department of Energy projects.
      The Senate amendment contained an identical provision 
(sec. 3201).
      The conference agreement includes this provision.
                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

                     Legislative Provisions Adopted

Authorized Uses of National Defense Stockpile Funds (sec. 3301)
      The House bill contained a provision (sec. 3301) that 
would authorize $59.7 million from the National Defense 
Stockpile Transaction Fund for the operation and maintenance of 
the National Defense Stockpile for fiscal year 2005. The 
provision would also permit the use of additional funds for 
extraordinary or emergency conditions 45 days after a 
notification to the Congress.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Revision of earlier authority to dispose of certain materials in 
        National Defense Stockpile (sec. 3302)
      The Senate amendment included a provision (sec. 3302) 
relative to revenue requirements for certain previously 
authorized disposals from the National Defense Stockpile to 
establish a new requirement of $870.0 million by the end of 
fiscal year 2014.
      The House bill included a similar provision (sec. 3303) 
that would set revenue requirements for those same disposals of 
at least $785.0 million by the end of fiscal year 2005 and 
$870.0 million by the end of fiscal year 2009.
      The Senate recedes.
Disposal of ferromanganese (sec. 3303)
      The House bill contained a provision (sec. 3302) that 
would amend section 3306 of the National Defense Authorization 
Act for Fiscal Year 2002 (Public Law 107-107), to authorize the 
Secretary of Defense to dispose of 100,000 short tons of high 
carbon ferromanganese of the highest grade during fiscal year 
2005.
      The Senate amendment contained a similar provision (sec. 
3301) that would authorize the Secretary to dispose of up to 
50,000 tons of high carbon ferromanganese during fiscal year 
2005. The provision would also authorize the disposal of an 
additional 50,000 tons of high carbon ferromanganese during 
fiscal year 2005, at 25,000 ton increments, subject to the 
Secretary, in consultation with the Secretary of Commerce, 
providing certifications to the congressional defense 
committees 30 days before the release of each increment.
      The House recedes with an amendment that would authorize 
the Secretary of Defense to dispose of up to 50,000 tons of 
high carbon ferromanganese during fiscal year 2005. The 
provision would also authorize the disposal of an additional 
50,000 tons of high carbon ferromanganese during fiscal year 
2005, at 25,000 ton increments, subject to the Secretary of 
Defense certifying to the Committees on Armed Services of the 
Senate and the House of Representatives not later than 30 days 
before commencement of disposal of a 25,000 ton increment the 
following: the disposal of ferromanganese is in the interest of 
national defense; the disposal of ferromanganese under such 
paragraph will not cause undue disruption to the usual markets 
of ferromanganese producers or processors of the United States; 
and the disposal of ferromanganese is consistent with the 
requirements of the National Defense Stockpile under the 
Strategic and Critical Material Stock Piling Act (50 U.S.C. et 
seq.).
Prohibition on storage of mercury at certain facilities (sec. 3304)
      The Senate amendment contained a provision (sec. 3303) 
that would prohibit the Secretary of Defense from storing 
mercury from the National Defense Stockpile at any facility 
that is not owned or leased by the United States.
      The House bill contained no similar provision.
      The House recedes with an amendment that would prohibit 
the Secretary from storing mercury from the National Defense 
Stockpile at any facility that is not owned or leased by the 
United States in fiscal year 2005.
                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

                     Legislative Provisions Adopted

Authorization of appropriations (sec. 3401)
      The House bill contained a provision (sec. 3401) that 
would authorize $20.0 million for the operation and maintenance 
of the Naval Petroleum and Oil Shale Reserves.
      The Senate amendment contained no similar provision.
      The Senate recedes.
                  TITLE XXXV--MARITIME ADMINISTRATION

                     Legislative Provisions Adopted

Authorization of appropriations for Maritime Administration (sec. 3501)
      The House bill contained a provision (sec. 3501) that 
would authorize funds to be appropriated for the Maritime 
Administration for expenses necessary for operations and 
training activities, for administrative activities under the 
loan guarantee program, and for ship disposal.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Extension of authority to provide war risk insurance for Merchant 
        Marine vessels (sec. 3502)
      The House bill contained a provision (sec. 3502) that 
would amend section 1214 of the Merchant Marine Act, 1936 (46 
U.S.C. App. 1294) to extend the authority to provide war risk 
insurance for Merchant Marine vessels from June 30, 2005 to 
December 31, 2010. The provision would also amend section 
1208(a) of the same Act (46 U.S.C. App. 1288), allowing the 
Secretary of Transportation to request the Secretary of the 
Treasury to invest such portion of the fund that is not, in the 
judgement of the Secretary of Transportation, required to meet 
the current needs of the fund.
      The Senate amendment contained a similar provision (sec. 
1066), which would have extended the authority to provide war 
risk insurance to December 31, 2008, and would have allowed 
similar investments of a portion of the fund.
      The Senate recedes.
Modification of priority afforded applications for national defense 
        tank vessel construction assistance (sec. 3503)
      The Senate amendment contained a provision (sec. 2901) 
that would amend section 3542(d)(2) of the Maritime Security 
Act of 2003 (title XXXV of Public Law 108-136). The amendment 
would require the Secretary of Transportation to give priority 
consideration to a proposal for national defense tank vessels 
if they had been accepted for participation in the Shipboard 
Technology Evaluation Program (STEP) as outlined in Navigation 
and Vessel Inspection Circular 01-04, issued by the Commandant 
of the U.S. Coast Guard on January 2, 2004.
      The House bill contained no similar provision.
      The House recedes with an amendment that would allow the 
Secretary of Transportation to give priority to subsidy 
proposals received after fiscal year 2005 if the vessels, which 
are to be constructed, have been selected to participate in the 
STEP.
                TITLE XXXVI--ASSISTANCE TO FIREFIGHTERS

                     Legislative Provisions Adopted

Assistance to Firefighters (secs. 3601-3603)
      The Senate amendment contained several provisions (sec. 
3501-3513) that would reauthorize the Department of Homeland 
Security's Assistance to Firefighters Grant Program for fiscal 
years 2005 through 2010. The provision would also authorize the 
Secretary of Homeland Security, in consultation with the U.S. 
Fire Administrator, to administer the grant program; expand 
eligibility for the Assistance to Firefighters Grant Program to 
volunteer emergency medical service (EMS) organizations; reduce 
the matching requirements for jurisdictions with populations 
less than 20,000; set caps on assistance to jurisdictions based 
on population; and authorize $900.0 million for the program in 
fiscal year 2005; $950.0 million for fiscal year 2006; and $1.0 
billion for each of fiscal years 2007 through 2010.
      The House bill contained no similar provision.
      The House recedes with an amendment that would place the 
Director of the Federal Emergency Management Agency, acting 
through the U.S. Fire Administrator, in charge of 
administration of the program. Further, the amendment would 
create a funding floor for grants to EMS organizations, but set 
a funding ceiling for EMS organizations that are not affiliated 
with fire departments. The amendment would include reduced 
matching requirements for jurisdictions with populations less 
than 50,000, and modify the caps on assistance to jurisdictions 
based on population. The amendment would authorize $900.0 
million for fiscal year 2005; $950.0 million for fiscal year 
2006; and $1.0 billion for each of fiscal years 2007 through 
2009.
      The conferees are concerned about the number of 
firefighters suffering fatal heart attacks each year while on 
duty. The conferees direct the director to work to reduce the 
number of on-duty firefighter fatalities by promoting life-
saving policies, training, and equipment, including Automated 
External Defibrillator devices. As a part of this effort, the 
director is encouraged to examine the feasibility of 
prioritizing life-saving training and equipment in grant 
evaluation criteria.

                From the Committee on Armed Services, for 
                consideration of the House bill and the Senate 
                amendment, and modifications committed to 
                conference:
                                   Duncan Hunter,
                                   Curt Weldon,
                                   Joel Hefley,
                                   Jim Saxton,
                                   John M. McHugh,
                                   Terry Everett,
                                   Roscoe G. Bartlett,
                                   Howard P. ``Buck'' McKeon,
                                   Mac Thornberry,
                                   John N. Hostettler,
                                   Jim Ryun,
                                   Jim Gibbons,
                                   Robin Hayes,
                                   Ken Calvert,
                                   Rob Simmons,
                                   Ike Skelton,
                                   John M. Spratt, Jr.
                                   Solomon P. Ortiz,
                                   Lane Evans,
                                   Neil Abercrombie,
                                   Martin T. Meehan,
                                   Silvestre Reyes,
                                   Vic Snyder,
                                   Jim Turner,
                                   Adam Smith,
                                   Loretta Sanchez,
                                   Baron P. Hill,
                From the Permanent Select Committee on 
                Intelligence, for consideration of matters 
                within the jurisdiction of that committee under 
                clause 11 of rule X:
                                   Pete Hoekstra,
                                   Ray LaHood,
                                   Jane Harman,
                From the Committee on Agriculture, for 
                consideration of sec. 1076 of the Senate 
                amendment, and modifications committed to 
                conference:
                                   Bob Goodlatte,
                                   Max Burns,
                                   Charles W. Stenholm,
                From the Committee on Education and the 
                Workforce, for consideration of secs. 590, 595, 
                596, 904, and 3135 of the House bill, and secs. 
                351, 352, 532, 533, 707, 868, 1079, 3143, and 
                3151-3157 of the Senate amendment, and 
                modifications committed to conference:
                                   Sam Johnson,
                                   Timothy H. Bishop,
                From the Committee on Government Reform, for 
                consideration of secs. 801, 806, 807, 825, 
                1061, 1101-1104, 2833, 2842, and 2843 of the 
                House bill, and secs. 801, 805, 832, 851, 852, 
                869, 870, 1034, 1059B, 1091, 1101, 1103-1107, 
                1110, 2823, 2824, 2833, and 3121 of the Senate 
                amendment, and modifications committed to 
                conference:
                                   Tom Davis,
                From the Committee on House Administration, for 
                consideration of secs. 572 and 1065 of the 
                Senate amendment, and modifications committed 
                to conference:
                                   Robert W. Ney,
                                   Vernon J. Ehlers,
                                   John B. Larson,
                From the Committee on International Relations, 
                for consideration of secs. 811, 1013, 1031, 
                1212, 1215, Title XIII, secs. 1401-1405, 1411, 
                1412, 1421, and 1422 of the House bill, and 
                secs. 1014, 1051-1053, 1058, 1059A, 1059B, 
                1070, Title XII, secs. 3131 and 3132 of the 
                Senate amendment, and modifications committed 
                to conference:
                                   Henry J. Hyde,
                                   James A. Leach,
                From the Committee on the Judiciary, for 
                consideration of secs. 551, 573, 616, 652, 825, 
                1075, 1078, 1105, 2833, 2842, and 2843 of the 
                House bill, and secs. 620, 842, 1063, 1068, 
                1074, 1080-1082, 1101, 1106, 1107, 2821, 2823, 
                2824, 3143, 3146, 3151-3157, 3401-3410 of the 
                Senate amendment, and modifications committed 
                to conference:
                                   F. James Sensenbrenner, Jr.,
                                   Lamar S. Smith,
                From the Committee on Resources, for 
                consideration of secs. 601 and 2834 of the 
                House bill, and sec. 1076 of the Senate 
                amendment, and modifications committed to 
                conference:
                                   Greg Walden,
                                   Jay Inslee,
                From the Committee on Science, for 
                consideration of sec. 596 of the House bill and 
                secs. 1034, 1092, and Title XXXV of the Senate 
                amendment, and modifications committed to 
                conference:
                                   Sherwood Boehlert,
                                   Nick Smith,
                                   Bart Gordon,
                From the Committee on Small Business, for 
                consideration of secs. 807 and 3601 of the 
                House bill, and secs. 805, 822, 823, 912, and 
                1083 of the Senate amendment, and modifications 
                committed to conference:
                                   Donald A. Manzullo,
                                   Sue W. Kelly,
                From the Committee on Transportation and 
                Infrastructure, for consideration of secs. 555, 
                558, 596, 601, 905, 1051, 1063, 1072, and 3502 
                of the House bill, and sec. 321, 323, 325, 717, 
                1066, 1076, 1091, 2828, 2833-2836, and Title 
                XXXV of the Senate amendment, and modifications 
                committed to conference:
                                   Don Young,
                                   John J. Duncan, Jr.,
                                   Michael E. Capuano,
                From the Committee on Veterans' Affairs, for 
                consideration of secs. 2810 and 2831 of the 
                House bill, and secs. 642, 2821, and 2823 of 
                the Senate amendment, and modifications 
                committed to conference:
                                   Christopher H. Smith,
                From the Committee on Ways and Means, for 
                consideration of sec. 585 of the House bill, 
                and sec. 653 of the Senate amendment, and 
                modifications committed to conference:
                                   E. Clay Shaw, Jr.,
                                   Dave Camp,
                                 Managers on the Part of the House.

                                   John W. Warner,
                                   John McCain,
                                   Pat Roberts,
                                   Wayne Allard,
                                   Jeff Sessions,
                                   Susan M. Collins,
                                   John Ensign,
                                   James M. Talent,
                                   Saxby Chambliss,
                                   Lindsey O. Graham,
                                   Elizabeth Dole,
                                   John Cornyn,
                                   Carl Levin,
                                   Edward M. Kennedy,
                                   Robert C. Byrd,
                                   Joseph Lieberman,
                                   Jack Reed,
                                   Daniel K. Akaka,
                                   Bill Nelson,
                                   Ben Nelson,
                                   Mark Dayton,
                                   Evan Bayh,
                                   Hillary Rodham Clinton,
                                   Mark Pryor,
                                Managers on the Part of the Senate.

                                  
