[United States Statutes at Large, Volume 117, 108th Congress, 1st Session]
[From the U.S. Government Publishing Office, www.gpo.gov]

117 STAT. 1392

Public Law 108-136
108th Congress

An Act


 
To authorize appropriations for fiscal year 2004 for military activities
of the Department of Defense, for military construction, and for defense
activities of the Department of Energy, to prescribe personnel strengths
for such fiscal year for the Armed Forces, and for other
purposes. [NOTE: Nov. 24, 2003 -  [H.R. 1588]]

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress [NOTE: National Defense
Authorization Act for Fiscal Year 2004.] assembled,

SECTION 1. SHORT TITLE.

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

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

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

(b) Table of Contents.--The table of contents for this Act is as
follows:

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

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

Subtitle A--Authorization of Appropriations

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

Subtitle B--Army Programs

Sec. 111. Stryker vehicle program.
Sec. 112. CH-47 helicopter program.

Subtitle C--Navy Programs

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

[[Page 1393]]
117 STAT. 1393

Subtitle D--Air Force Programs

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

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

Subtitle A--Authorization of Appropriations

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

Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Collaborative program for development of electromagnetic gun
technology.
Sec. 212. Leadership and duties of Department of Defense Test Resource
Management Center.
Sec. 213. Development of the Joint Tactical Radio System.
Sec. 214. Future Combat Systems.
Sec. 215. Extension of reporting requirement for RAH-66 Comanche
aircraft program.
Sec. 216. Studies of fleet platform architectures for the Navy.

Subtitle C--Ballistic Missile Defense

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

Subtitle D--Other Matters

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

TITLE III--OPERATION AND MAINTENANCE

Subtitle A--Authorization of Appropriations

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

Subtitle B--Environmental Provisions

Sec. 311. Reauthorization and modification of title I of Sikes Act.
Sec. 312. Clarification of Department of Defense response to
environmental emergencies.
Sec. 313. Repeal of authority to use environmental restoration account
funds for relocation of a contaminated facility.
Sec. 314. Authorization for Department of Defense participation in
wetland mitigation banks.
Sec. 315. Inclusion of environmental response equipment and services in
Navy definitions of salvage facilities and salvage services.
Sec. 316. Repeal of model program for base closure environmental
restoration.
Sec. 317. Requirements for restoration advisory boards and exemption
from Federal Advisory Committee Act.
Sec. 318. Military readiness and conservation of protected species.
Sec. 319. Military readiness and marine mammal protection.
Sec. 320. Report regarding impact of civilian community encroachment and
certain legal requirements on military installations and
ranges and plan to address encroachment.

[[Page 1394]]
117 STAT. 1394

Sec. 321. Cooperative water use management related to Fort Huachuca,
Arizona, and Sierra Vista subwatershed.
Sec. 322. Task force on resolution of conflict between military training
and endangered species protection at Barry M. Goldwater
Range, Arizona.
Sec. 323. Public health assessment of exposure to perchlorate.
Sec. 324. Comptroller General review of Arctic Military Environmental
Cooperation program.

Subtitle C--Workplace and Depot Issues

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

Subtitle D--Other Matters

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

TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent active duty end strength minimum levels.
Sec. 403. Personnel strength authorization and accounting process.

Subtitle B--Reserve Forces

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

Subtitle C--Authorizations of Appropriations

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

TITLE V--MILITARY PERSONNEL POLICY

Subtitle A--Officer Personnel Matters

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

[[Page 1395]]
117 STAT. 1395

Subtitle B--Reserve Component Matters

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

Subtitle C--ROTC and Military Service Academies

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

Subtitle D--Other Military Education and Training Matters

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

Subtitle E--Administrative Matters

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

Subtitle F--Military Justice Matters

Sec. 551. Extended limitation period for prosecution of child abuse
cases in courts-martial.

[[Page 1396]]
117 STAT. 1396

Sec. 552. Clarification of blood alcohol content limit for the offense
under the Uniform Code of Military Justice of drunken
operation of a vehicle, aircraft, or vessel.

Subtitle G--Benefits

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

Subtitle H--Domestic Violence

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

Subtitle I--Other Matters

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

TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

Subtitle A--Pay and Allowances

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

Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonus and special pay
authorities for reserve forces.
Sec. 612. One-year extension of certain bonus and special pay
authorities for certain health care professionals.
Sec. 613. One-year extension of special pay and bonus authorities for
nuclear officers.
Sec. 614. One-year extension of other bonus and special pay authorities.
Sec. 615. Hazardous duty pay for duty involving ski-equipped aircraft on
Antarctica or the Arctic icepack.
Sec. 616. Special pay for reserve officers holding positions of unusual
responsibility and of critical nature.
Sec. 617. Payment of Selected Reserve reenlistment bonus to members of
Selected Reserve who are mobilized.
Sec. 618. Availability of hostile fire and imminent danger special pay
for reserve component members on inactive duty.
Sec. 619. Temporary increase in authorized amount of hostile fire and
imminent danger special pay.
Sec. 620. Retroactive payment of hostile fire or imminent danger pay for
service in eastern Mediterranean Sea in Operation Iraqi
Freedom.

[[Page 1397]]
117 STAT. 1397

Sec. 621. Expansion of overseas tour extension incentive program to
officers.
Sec. 622. Repeal of congressional notification requirement for
designation of critical military skills for retention bonus.
Sec. 623. Eligibility of warrant officers for accession bonus for new
officers in critical skills.
Sec. 624. Special pay for service as member of Weapons of Mass
Destruction Civil Support Team.
Sec. 625. Incentive bonus for conversion to military occupational
specialty to ease personnel shortage.
Sec. 626. Bonus for reenlistment during service on active duty in
Afghanistan, Iraq, or Kuwait.

Subtitle C--Travel and Transportation Allowances

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

Subtitle D--Retired Pay and Survivor Benefits

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

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

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

Subtitle F--Other Matters

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

TITLE VII--HEALTH CARE PROVISIONS

Subtitle A--Enhanced Benefits for Reserves

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

Subtitle B--Other Benefits Improvements

Sec. 711. Acceleration of implementation of chiropractic health care for
members on active duty.

[[Page 1398]]
117 STAT. 1398

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

Subtitle C--Planning, Programming, and Management

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

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

Subtitle A--Acquisition Policy and Management

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

Subtitle B--United States Defense Industrial Base Provisions

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

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

Part II--Requirements Relating to Specific Items

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

Part III--Other Domestic Source Requirements

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

Subtitle C--Defense Acquisition and Support Workforce Flexibility

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

[[Page 1399]]
117 STAT. 1399

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

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

Subtitle E--Acquisition-Related Reports and Other Matters

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

TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

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

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

Subtitle B--Space Activities

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

Subtitle C--Department of Defense Intelligence Components

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

Subtitle D--Other Matters

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

TITLE X--GENERAL PROVISIONS

Subtitle A--Financial Matters

Sec. 1001. Transfer authority.

[[Page 1400]]
117 STAT. 1400

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

Subtitle B--Naval Vessels and Shipyards

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

Subtitle C--Counterdrug Matters

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

Subtitle D--Reports

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

Subtitle E--Codifications, Definitions, and Technical Amendments

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

Subtitle F--Other Matters

Sec. 1051. Assessment of effects of specified statutory limitations on
the granting of security clearances.
Sec. 1052. Acquisition of historical artifacts through exchange of
obsolete or surplus property.
Sec. 1053. Conveyance of surplus T-37 aircraft to Air Force Aviation
Heritage Foundation, Incorporated.
Sec. 1054. Department of Defense biennial strategic plan for management
of electromagnetic spectrum.
Sec. 1055. Revision of Department of Defense directive relating to
management and use of radio frequency spectrum.
Sec. 1056. Sense of Congress on deployment of airborne chemical agent
monitoring systems at chemical stockpile disposal sites in
the United States.

[[Page 1401]]
117 STAT. 1401

Sec. 1057. Expansion of pre-September 11, 2001, fire grant program of
United States Fire Administration.
Sec. 1058. Review and enhancement of existing authorities for using Air
Force and Air National Guard Modular Airborne Fire-Fighting
Systems and other Department of Defense assets to fight
wildfires.

TITLE XI--CIVILIAN PERSONNEL MATTERS

Subtitle A--Department of Defense National Security Personnel System

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

Subtitle B--Department of Defense Civilian Personnel Generally

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

Subtitle C--Other Federal Government Civilian Personnel Matters

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

TITLE XII--MATTERS RELATING TO OTHER NATIONS

Subtitle A--Matters Relating to Iraq

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

Subtitle B--Matters Relating to Export Protections

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

Subtitle C--Administrative Requirements and Authorities

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

Subtitle D--Other Reports and Sense of Congress Statements

Sec. 1231. Annual report on the NATO Prague Capabilities Commitment and
the NATO Response Force.

[[Page 1402]]
117 STAT. 1402

Sec. 1232. Report on actions that could be taken regarding countries
that initiate certain legal actions against United States
officials or members of the Armed Forces.
Sec. 1233. Sense of Congress on redeployment of United States forces in
Europe.
Sec. 1234. Sense of Congress concerning Navy port calls in Israel.

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

Sec. 1301. Specification of Cooperative Threat Reduction programs and
funds.
Sec. 1302. Funding allocations.
Sec. 1303. Limitation on use of funds until certain permits obtained.
Sec. 1304. Limitation on use of funds for biological research in the
former Soviet Union.
Sec. 1305. Requirement for on-site managers.
Sec. 1306. Temporary authority to waive limitation on funding for
chemical weapons destruction facility in Russia.
Sec. 1307. Annual certifications on use of facilities being constructed
for Cooperative Threat Reduction projects or activities.
Sec. 1308. Authority to use Cooperative Threat Reduction funds outside
the former Soviet Union.

TITLE XIV--SERVICES ACQUISITION REFORM

Sec. 1401. Short title.

Subtitle A--Acquisition Workforce and Training

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

Subtitle B--Adaptation of Business Acquisition Practices

Part I--Adaptation of Business Management Practices

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

Part II--Other Acquisition Improvements

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

Subtitle C--Acquisitions of Commercial Items

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

Subtitle D--Other Matters

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

TITLE XV--VETERANS' DISABILITY BENEFITS COMMISSION

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

TITLE XVI--DEFENSE BIOMEDICAL COUNTERMEASURES

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

[[Page 1403]]
117 STAT. 1403

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

Sec. 1701. Requirements for naturalization through service in the Armed
Forces of the United States.
Sec. 1702. Naturalization benefits for members of the Selected Reserve
of the Ready Reserve.
Sec. 1703. Extension of posthumous benefits to surviving spouses,
children, and parents.
Sec. 1704. Expedited process for granting posthumous citizenship to
members of the Armed Forces.
Sec. 1705. Effective date.

DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

TITLE XXI--ARMY

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

TITLE XXII--NAVY

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

TITLE XXIII--AIR FORCE

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

TITLE XXIV--DEFENSE AGENCIES

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

TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT
PROGRAM

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

TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

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

TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

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

[[Page 1404]]
117 STAT. 1404

TITLE XXVIII--GENERAL PROVISIONS

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

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

Subtitle B--Real Property and Facilities Administration

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

Subtitle C--Base Closure and Realignment

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

Subtitle D--Land Conveyances

Part I--Army Conveyances

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

Part II--Navy Conveyances

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

Part III--Air Force Conveyances

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

Part IV--Other Conveyances

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

Subtitle E--Other Matters

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

[[Page 1405]]
117 STAT. 1405

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

TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

Subtitle A--National Security Programs Authorizations

Sec. 3101. National Nuclear Security Administration.
Sec. 3102. Defense environmental management.
Sec. 3103. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.
Sec. 3105. Energy supply.

Subtitle B--Program Authorizations, Restrictions, and Limitations

Sec. 3111. Termination of requirement for annual updates of long-term
plan for nuclear weapons stockpile life extension program.
Sec. 3112. Department of Energy project review groups not subject to
Federal Advisory Committee Act by reason of inclusion of
employees of Department of Energy management and operating
contractors.
Sec. 3113. Readiness posture for resumption by the United States of
underground nuclear weapons tests.
Sec. 3114. Technical base and facilities maintenance and
recapitalization activities.
Sec. 3115. Continuation of processing, treatment, and disposition of
legacy nuclear materials.
Sec. 3116. Repeal of prohibition on research and development of low-
yield nuclear weapons.
Sec. 3
117. Requirement for specific authorization of Congress for
commencement of engineering development phase or subsequent
phase of Robust Nuclear Earth Penetrator.

Subtitle C--Proliferation Matters

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

Subtitle D--Other Matters

Sec. 3131. Performance of personnel security investigations of certain
Department of Energy and Nuclear Regulatory Commission
employees in sensitive programs.
Sec. 3132. Policy of Department of Energy regarding future defense
environmental management matters.
Sec. 3133. Inclusion in 2005 stockpile stewardship plan of certain
information relating to stockpile stewardship criteria.
Sec. 3134. Progress reports on Energy Employees Occupational Illness
Compensation Program.
Sec. 3135. Report on integration activities of Department of Defense and
Department of Energy with respect to Robust Nuclear Earth
Penetrator.

Subtitle E--Consolidation of National Security Provisions

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

TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Authorized uses of National Defense Stockpile funds.
Sec. 3302. Revisions to required receipt objectives for previously
authorized disposals from National Defense Stockpile.

TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

[[Page 1406]]
117 STAT. 1406

TITLE XXXV--MARITIME ADMINISTRATION

Sec. 3501. Short title.

Subtitle A--Maritime Administration Reauthorization

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

Subtitle B--Amendments to Title XI Loan Guarantee Program

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

Subtitle C--Maritime Security Fleet

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

Subtitle D--National Defense Tank Vessel Construction Assistance

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

TITLE XXXVI--NUCLEAR SECURITY INITIATIVE

Sec. 3601. Short title.

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

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

Subtitle B--Relations Between the United States and Russia

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

Subtitle C--Other Matters

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

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

For purposes of this Act, the term ``congressional defense
committees'' means--
(1) the Committee on Armed Services and the Committee on
Appropriations of the Senate; and

[[Page 1407]]
117 STAT. 1407

(2) the Committee on Armed Services and the Committee on
Appropriations of the House of Representatives.

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

Subtitle A--Authorization of Appropriations

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

Subtitle B--Army Programs

Sec. 111. Stryker vehicle program.
Sec. 112. CH-47 helicopter program.

Subtitle C--Navy Programs

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

Subtitle D--Air Force Programs

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

Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

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

SEC. 102. NAVY AND MARINE CORPS.

(a) Navy.--Funds are hereby authorized to be appropriated for fiscal
year 2004 for procurement for the Navy as follows:
(1) For aircraft, $9,009,948,000.
(2) For weapons, including missiles and torpedoes,
$2,233,534,000.
(3) For shipbuilding and conversion, $11,729,984,000.
(4) For other procurement, $4,739,143,000.

(b) Marine Corps.--Funds are hereby authorized to be appropriated
for fiscal year 2004 for procurement for the Marine Corps in the amount
of $1,123,499,000.

[[Page 1408]]
117 STAT. 1408

(c) Navy and Marine Corps Ammunition.--Funds are hereby authorized
to be appropriated for fiscal year 2004 for procurement of ammunition
for the Navy and the Marine Corps in the amount of $924,355,000.

SEC. 103. AIR FORCE.

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

SEC. 104. DEFENSE-WIDE ACTIVITIES.

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

Subtitle B--Army Programs

SEC. 111. STRYKER VEHICLE PROGRAM.

(a) Limitation.--Of the funds authorized to be appropriated under
section 101 for procurement for the Army for fiscal year 2004 that are
available for the Stryker vehicle program, not more than 80 percent may
be obligated until--
(1) the Secretary of the Army has submitted to the Deputy
Secretary of Defense the report specified in subsection (b);
(2) the Secretary of Defense has submitted to the
congressional defense committees the report referred to in
subsection (c); and
(3) a period of 30 days has elapsed after the date of the
receipt by those committees of the report and certification
under paragraph (2).

(b) Secretary of the Army Report.--The report referred to in
subsection (a)(1) is the report required to be submitted by the
Secretary of the Army to the Deputy Secretary of Defense not later than
July 8, 2003, that identifies options for modifications to the equipment
and configuration of the Army brigades designated as ``Stryker brigade
combat teams'' to assure that those brigades, after incorporating such
modifications, provide--
(1) a higher level of combat capability and sustainability;
(2) a capability across a broader spectrum of combat
operations; and
(3) a capability to be employed independently of higher-
level command formations and support.

(c) Secretary of Defense Report.--The Secretary of Defense shall
transmit to the congressional defense committees, not later than 30 days
after the date of the receipt by the Deputy Secretary of Defense of the
report of the Secretary of the Army referred to in subsection (b), the
modification options identified by the Secretary of the Army for
purposes of that report. The Secretary of Defense shall include any
comments that may be applicable to the analysis of the Secretary of the
Army's report.

SEC. 112. CH-47 HELICOPTER PROGRAM.

(a) Requirement for Study.--The Secretary of the Army shall conduct
a study of the feasibility and the costs and benefits of

[[Page 1409]]
117 STAT. 1409

providing for the participation of a second source in the production of
gears for the helicopter transmissions incorporated into CH-47
helicopters to be procured by the Army with funds authorized to be
appropriated by this Act.
(b) Report.--Not [NOTE: Deadline.]  later than 90 days after the
date of the enactment of this Act, the Secretary shall submit to
Congress a report on the results of the study under subsection (a).

Subtitle C--Navy Programs

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

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

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

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

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

(a) Authority.--The Secretary of the Navy may, in accordance with
section 2306b of title 10, United States Code, enter into a multiyear
contract, beginning with the fiscal year 2004 program year, for
procurement of Virginia-class submarines.
(b) Limitation.--The Secretary of the Navy may not enter into a
contract authorized by subsection (a) until--
(1) the Secretary submits to the congressional defense
committees a certification that the Secretary has made each of
the findings with respect to such contract specified in
subsection (a) of section 2306b of title 10, United States Code;
and
(2) a period of 30 days has elapsed after the date of the
transmission of such certification.

(c) Applicability of Shipbuilder Teaming Law.--Paragraphs (2)(A),
(3), and (4) of section 121(b) of the National Defense Authorization Act
for Fiscal Year 1998 (Public Law 105-85; 111

[[Page 1410]]
117 STAT. 1410

Stat. 1648) shall apply in the exercise of authority to enter into a
multiyear contract under subsection (a).

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

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

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

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

SEC. 126. [NOTE: 10 USC 7291 note.] PILOT PROGRAM FOR FLEXIBLE FUNDING
OF CRUISER CONVERSIONS AND OVERHAULS.

(a) Establishment.--The Secretary of the Navy may carry out a pilot
program of flexible funding of conversions and overhauls of cruisers of
the Navy in accordance with this section.
(b) Authority.--Under the pilot program, the Secretary may, subject
to subsection (d), transfer amounts described in subsection (c) to the
appropriation for the Navy for procurement for shipbuilding and
conversion for any fiscal year to continue to provide funds for any
conversion or overhaul of a cruiser of the Navy for which funds were
initially provided from the appropriation to which transferred.
(c) Funds Available for Transfer.--The amounts available for
transfer under this section are amounts appropriated to the Navy for any
fiscal year after fiscal year 2003 and before fiscal year 2013 for the
following purposes:
(1) For procurement, as follows:
(A) For shipbuilding and conversion.
(B) For weapons procurement.
(C) For other procurement.
(2) For operation and maintenance.

(d) Limitations.--(1) A transfer may be made with respect to a
cruiser under this section only to meet either (or both) of the
following requirements:
(A) An increase in the size of the workload for conversion
or overhaul to meet existing requirements for the cruiser.
(B) A new conversion or overhaul requirement resulting from
a revision of the original baseline conversion or overhaul
program for the cruiser.

(2) A transfer may not be made under this section before the date
that is 30 days after the date on which the Secretary

[[Page 1411]]
117 STAT. 1411

of the Navy transmits to the congressional defense committees a written
notification of the intended transfer. The notification shall include
the following matters:
(A) The purpose of the transfer.
(B) The amounts to be transferred.
(C) Each account from which the funds are to be transferred.
(D) Each program, project, or activity from which the funds
are to be transferred.
(E) Each account to which the funds are to be transferred.
(F) A discussion of the implications of the transfer for the
total cost of the cruiser conversion or overhaul program for
which the transfer is to be made.

(e) Merger of Funds.--Amounts transferred to an appropriation with
respect to the conversion or overhaul of a cruiser under this section
shall be credited to and merged with other funds in the appropriation to
which transferred and shall be available for the conversion or overhaul
of such cruiser for the same period as the appropriation to which
transferred.
(f) Relationship to Other Transfer Authority.--The authority to
transfer funds under this section is in addition to any other authority
provided by law to transfer appropriated funds and is not subject to any
restriction, limitation, or procedure that is applicable to the exercise
of any such other authority.
(g) Final Report.--Not [NOTE: Deadline.]  later than October 1,
2011, the Secretary of the Navy shall submit to the congressional
defense committees a report containing the Secretary's evaluation of the
efficacy of the authority provided under this section.

(h) Termination of Program.--No transfer may be made under this
section after September 30, 2012.

Subtitle D--Air Force Programs

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

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

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

(a) Limitation.--The Secretary of the Air Force may not proceed with
a decision to retire C-5A aircraft from the active inventory of the Air
Force in any number that would reduce the total number of such aircraft
in the active inventory below 112 until--
(1) the Air Force has modified a C-5A aircraft to the
configuration referred to as the Reliability Enhancement and
Reengining Program (RERP) configuration, as planned under the C-
5 System Development and Demonstration program as of May 1,
2003; and
(2) the Director of Operational Test and Evaluation of the
Department of Defense--
(A) conducts an operational evaluation of that
aircraft, as so modified; and

[[Page 1412]]
117 STAT. 1412

(B) provides to the Secretary of Defense and the
congressional defense committees an operational
assessment.

(b) Operational Evaluation.--An operational evaluation for purposes
of paragraph (2)(A) of subsection (a) is an evaluation, conducted during
operational testing and evaluation of the aircraft, as so modified, of
the performance of the aircraft with respect to reliability,
maintainability, and availability and with respect to critical
operational issues.
(c) Operational Assessment.--An operational assessment for purposes
of paragraph (2)(B) of subsection (a) is an operational assessment of
the program to modify C-5A aircraft to the configuration referred to in
subsection (a)(1) regarding both overall suitability and deficiencies of
the program to improve performance of the C-5A aircraft relative to
requirements and specifications for reliability, maintainability, and
availability of that aircraft as in effect on May 1, 2003.

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

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

(c) Covered Avionics Anomalies.--For purposes of subsection (a), the
term ``covered avionics anomalies'' means any of the following:
(1) A software event referred to as a Type 1 failure.
(2) A software event referred to as a Type 2 failure.
(3) A hardware event referred to as a Type 5 failure.

(c) Contingency Waiver Authority.--If the Under Secretary notifies
the Secretary of Defense that the Under Secretary is unable to make the
certification described in subsection (a), the Secretary may waive the
limitation under that subsection. Upon making such a waiver--
(1) [NOTE: Notification.] the Secretary of Defense shall
notify the congressional defense committees of the waiver and of
the reasons therefor; and
(2) the funds described in subsection (a) may then be
obligated, by reason of such waiver, after the end of the 30-day
period beginning on the date on which the Secretary's
notification is received by those committees.

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

(a) Restriction on Retirement of KC-135E Aircraft.--The Secretary of
the Air Force shall ensure that the number of KC-

[[Page 1413]]
117 STAT. 1413

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

SEC. 135. PROCUREMENT OF TANKER [NOTE: 10 USC 2401a note.]  AIRCRAFT.

(a) Leased Aircraft.--The Secretary of the Air Force may lease no
more than 20 tanker aircraft under the multiyear aircraft lease pilot
program referred to in subsection (d).
(b) Multiyear Procurement Authority.--(1) Beginning with the fiscal
year 2004 program year, the Secretary of the Air Force may, in
accordance with section 2306b of title 10, United States Code, enter
into a multiyear contract for the purchase of tanker aircraft necessary
to meet the requirements of the Air Force for which leasing of tanker
aircraft is provided for under the multiyear aircraft lease pilot
program but for which the number of tanker aircraft leased under the
authority of subsection (a) is insufficient.
(2) The total number of tanker aircraft purchased through a
multiyear contract under this subsection may not exceed 80.
(3) Notwithstanding subsection (k) of section 2306b of title 10,
United States Code, a contract under this subsection may be for any
period not in excess of 10 program years.
(4) A multiyear contract under this subsection may be initiated or
continued for any fiscal year for which sufficient funds are available
to pay the costs of such contract for that fiscal year, without regard
to whether funds are available to pay the costs of such contract for any
subsequent fiscal year. Such contract shall provide, however, that
performance under the contract during the subsequent year or years of
the contract is contingent upon the appropriation of funds and shall
also provide for a cancellation payment to be made to the contractor if
such appropriations are not made.
(c) Study of Long-Term Tanker Aircraft Maintenance and Training
Requirements.--(1) The Secretary of Defense shall carry out a study to
identify alternative means for meeting the long-term requirements of the
Air Force for--
(A) the maintenance of tanker aircraft leased under the
multiyear aircraft lease pilot program or purchased under
subsection (b); and
(B) training in the operation of tanker aircraft leased
under the multiyear aircraft lease pilot program or purchased
under subsection (b).

(2) Not [NOTE: Deadline. Reports.]  later than April 1, 2004, the
Secretary of Defense shall submit a report on the results of the study
to the congressional defense committees.

(d) Multiyear Aircraft Lease Pilot Program Defined.--In this
section, the term ``multiyear aircraft lease pilot program'' means the
aerial refueling aircraft program authorized under section 8159 of the
Department of Defense Appropriations Act, 2002 (division A of Public Law
107-
117; 115 Stat. 2284).
(e) Sense of Congress.--It is the sense of Congress that, in
budgeting for a program to acquire new tanker aircraft for

[[Page 1414]]
117 STAT. 1414

the Air Force, the President should ensure that sufficient budgetary
resources are provided to the Department of Defense to fully execute the
program and to further ensure that all other critical defense programs
are fully and properly funded.

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

Subtitle A--Authorization of Appropriations

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

Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Collaborative program for development of electromagnetic gun
technology.
Sec. 212. Leadership and duties of Department of Defense Test Resource
Management Center.
Sec. 213. Development of the Joint Tactical Radio System.
Sec. 214. Future Combat Systems.
Sec. 215. Extension of reporting requirement for RAH-66 Comanche
aircraft program.
Sec. 216. Studies of fleet platform architectures for the Navy.

Subtitle C--Ballistic Missile Defense

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

Subtitle D--Other Matters

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

Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

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

SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY.

(a) Fiscal Year 2004.--Of the amounts authorized to be appropriated
by section 201, $11,029,557,000 shall be available for the

[[Page 1415]]
117 STAT. 1415

Defense Science and Technology Program, including basic research,
applied research, and advanced technology development projects.
(b) Basic Research, Applied Research, and Advanced Technology
Development Defined.--For purposes of this section, the term ``basic
research, applied research, and advanced technology development'' means
work funded in program elements for defense research and development
under Department of Defense category 6.1, 6.2, or 6.3.

Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. COLLABORATIVE PROGRAM FOR DEVELOPMENT OF ELECTROMAGNETIC GUN
TECHNOLOGY.

(a) Program Required.--The Secretary of Defense shall establish and
carry out a collaborative program for evaluation and demonstration of
advanced technologies and concepts for advanced gun systems that use
electromagnetic propulsion for direct and indirect fire applications.
(b) Description of Program.--The program under subsection (a) shall
be carried out collaboratively pursuant to a memorandum of agreement to
be entered into among the Director of Defense Research and Engineering,
the Secretary of the Army, the Secretary of the Navy, the Director of
the Defense Advanced Research Projects Agency, and other appropriate
officials of the Department of Defense, as determined by the Secretary.
The program shall include the following activities:
(1) Identification of technical objectives, quantified
technical barriers, and enabling technologies associated with
development of the objective electromagnetic gun systems
envisioned to meet the needs of each of the Armed Forces and, in
so doing, identification of opportunities for development of
components or subsystems common to those envisioned gun systems.
(2) Preparation of a plan and schedule for development of
electromagnetic gun systems for military applications, which--
(A) includes the programs currently planned within
the Department of Defense;
(B) describes how enabling technologies common to
such programs are developed and utilized; and
(C) provides estimated dates for decision points,
prototype demonstrations, and transitions of
technologies to acquisition programs.
(3) Identification of a strategy for the participation of
industry in the program.

(c) Matters Included.--The advanced technologies and concepts
included under the program may include, but are not limited to, the
following:
(1) Advanced electrical power, energy storage, and switching
systems.
(2) Electromagnetic launcher materials and construction
techniques for long barrel life.
(3) Guidance and control systems for electromagnetically
launched projectiles.

[[Page 1416]]
117 STAT. 1416

(4) Advanced projectiles and other munitions for
electromagnetic gun systems.
(5) Hypervelocity terminal effects.

(d) Transition of Technologies.--The Secretary of Defense shall
encourage the transition of technologies developed under the program
under subsection (a) into appropriate acquisition programs of the
military departments.
(e) Report.--Not [NOTE: Deadline. Reports.]  later than March 31,
2004, the Director of Defense Research and Engineering, in collaboration
with the other officials who entered into the memorandum of agreement
under subsection (b), shall submit a report to the congressional defense
committees on the implementation of the program under subsection (a).
The report shall include the following:
(1) A description of the memorandum of agreement entered
into under subsection (b).
(2) The plan and schedule required by subsection (b)(2).
(3) A description of the goals and objectives of the
program.
(4) Identification of funding required for fiscal years 2004
and 2005 and for the future-years defense program to carry out
the program.
(5) A description of a plan for industry participation in
the program.

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

(a) Authority To Select Civilian Employee as Director.--Subsection
(b)(1) of section 196 of title 10, United States Code, is amended--
(1) by striking ``on active duty. The Director'' and
inserting ``on active duty or from among senior civilian
officers and employees of the Department of Defense. A
commissioned officer serving as the Director''; and
(2) by adding at the end the following: ``A civilian officer
or employee serving as the Director, while so serving, has a pay
level equivalent in grade to lieutenant general.''.

(b) Expansion of Duties of Director.--(1) Subsection (c)(1)(B) of
such section is amended by inserting after ``Department of Defense'' the
following: ``, other than budgets and expenditures for activities
described in section 139(i) of this title''.
(2) Subsection (e)(1) of such section is amended--
(A) by striking ``, the Director of Operational Test and
Evaluation,''; and
(B) by striking ``, Director's, or head's'' and inserting
``or Defense Agency head's''.

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

(a) Plan for Management of Development Program.--The Secretary of
Defense shall develop a plan for implementation of management of the
development program for the Joint Tactical Radio System under a single
joint program office. As part of such plan, the Secretary shall
designate an office for such purpose. The Secretary shall include in the
plan measures to ensure that--
(1) the Joint Tactical Radio Program has a program
management structure that provides strong and effective joint
management;
(2) the head of the joint program office has sufficient
control and authority to properly execute that development
program; and

[[Page 1417]]
117 STAT. 1417

(3) effective processes are established to resolve disputes
between military departments with respect to that program.

(b) Program Development.--The Secretary shall provide that, subject
to the authority, direction, and control of the Secretary, the head of
the joint program office designated under subsection (a) shall--
(1) establish and control the systems engineering and the
performance and design specifications for the Joint Tactical
Radio System;
(2) establish and control the standards for development of
software and equipment for that system; and
(3) establish and control the standards for operation of
that system.

(c) Program Requirements.--The Secretary shall ensure--
(1) that there is developed and implemented a single,
unified concept of operations for all users of the Joint
Tactical Radio System; and
(2) that the responsibility for the coordination of the
operational requirements for that system is vested in the
Chairman of the Joint Chiefs of Staff, with the participation of
the Joint Tactical Radio System program office.

(d) Report [NOTE: Deadline.]  on Plan.--The Secretary shall submit
the plan required by subsection (a) to the Committees on Armed Services
of the Senate and House of Representatives not later than February 1,
2004.

(e) Implementation Deadline.--The Secretary shall implement the plan
required by subsection (a) not later than December 1, 2004.

SEC. 214. FUTURE COMBAT SYSTEMS.

(a) Limitation.--Of [NOTE: Reports.]  the funds authorized to be
appropriated under section 201(1) for development and demonstration of
systems for the Future Combat Systems program, $170,000,000 may not be
obligated or expended until 30 days after the Secretary of the Army
submits to the congressional defense committees a report on such
program. The report shall include the following:
(1) The findings and conclusions of--
(A) the review of the Future Combat Systems program
carried out by the independent panel at the direction of
the Secretary of Defense; and
(B) the milestone B review of the Future Combat
Systems program carried out by the Defense Acquisition
Board.
(2) For each of the three projects requested under program
element 64645A, a breakdown of the costs of that project for
fiscal year 2004 at a level of detail sufficient to justify the
amount requested for that project in the budget submitted by the
President.

(b) Separate Program Elements.--For fiscal years beginning with
2004, the Secretary of Defense shall ensure that the following matters
(referred to as projects under program element 64645A in the budget
justification materials submitted in support of the President's budget
for fiscal year 2004) are each planned, programmed, and budgeted for as
a separate, dedicated program element:
(1) The Future Combat Systems project.
(2) The Networked Fires System Technology project.
(3) The Objective Force Indirect Fires project.

[[Page 1418]]
117 STAT. 1418

(c) Annual Report.--At the same time that the President submits the
budget for a fiscal year to Congress under section 1105(a) of title 31,
United States Code, the Secretary of the Army shall submit to the
congressional defense committees a report on the programs and projects
comprising the Future Combat Systems program. The report shall include--
(1) for each such program or project, a breakdown of the
costs of that program or project for that fiscal year at a level
of detail sufficient to justify the amount requested for that
program or project in that budget; and
(2) any updated analysis of alternatives for the program.

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

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

SEC. 216. [NOTE: 10 USC 113 note.] STUDIES OF FLEET PLATFORM
ARCHITECTURES FOR THE NAVY.

(a) Independent Studies.--(1) The Secretary of Defense shall provide
for the performance of two independent studies of alternative future
fleet platform architectures for the Navy.
(2) The Secretary shall forward the results of each study to the
congressional defense committees not later than January 15, 2005.
(3) Each such study shall be submitted both in unclassified, and to
the extent necessary, in classified versions.
(b) Entities to Perform Studies.--The Secretary of Defense shall
provide for the studies under subsection (a) to be performed as follows:
(1) One study shall be performed by a federally funded
research and development center.
(2) The other study shall be performed by the Office of
Force Transformation within the Office of the Secretary of
Defense and shall include participants from (A) the Office of
Net Assessment within the Office of the Secretary of Defense,
(B) the Department of the Navy, and (C) the Joint Staff.

(c) Performance of Studies.--(1) The Secretary of Defense shall
require the two studies under this section to be conducted independently
of each other.
(2) In performing a study under this section, the organization
performing the study, while being aware of the current and projected
fleet platform architectures, shall not be limited by the current or
projected fleet platform architecture and shall consider the following:
(A) The National Security Strategy of the United States.
(B) Potential future threats to the United States and to
United States naval forces.
(C) The traditional roles and missions of United States
naval forces.
(D) Alternative roles and missions for United States naval
forces.
(E) Other government and non-government analyses that would
contribute to the study through variations in study assumptions
or potential scenarios.
(F) The role of evolving technology on future naval forces.

[[Page 1419]]
117 STAT. 1419

(G) Opportunities for reduced manning and unmanned ships and
vehicles in future naval forces.

(d) Study Results.--The results of each study under this section
shall--
(1) present the alternative fleet platform architectures
considered, with assumptions and possible scenarios identified
for each;
(2) provide for presentation of minority views of study
participants; and
(3) for the recommended architecture, provide--
(A) the numbers, kinds, and sizes of vessels, the
numbers and types of associated manned and unmanned
vehicles, and the basic capabilities of each of those
platforms; and
(B) other information needed to understand that
architecture in basic form and the supporting analysis.

Subtitle C--Ballistic Missile Defense

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

(a) Flexibility for Specification of Program Elements.--Subsection
(a) of section 223 of title 10, United States Code, is amended--
(1) by inserting ``by President'' in the subsection heading
after ``Specified'';
(2) by striking ``program elements governing functional
areas as follows:'' and inserting ``such program elements as the
President may specify.''; and
(3) by striking paragraphs (1) through (6).

(b) Conforming Amendments.--(1) Subsection (c) of such section is
amended by striking ``for each program element specified in subsection
(a)'' and inserting ``for a fiscal year for any program element
specified for that fiscal year pursuant to subsection (a)''.
(2) Subsection (c)(3) of section 232 of the National Defense
Authorization Act for Fiscal Year 2002 (Public Law 107-107; 115 Stat.
1037; 10 U.S.C. 2431 note) is amended by striking ``each functional
area'' and all that follows through ``subsection (b),'' and inserting
``each then-current program element for ballistic missile defense
systems in effect pursuant to subsection (a) or (b)''.
(c) Amendments Relating to Changes in Acquisition Terminology.--(1)
Section 223(b)(2) of title 10, United States Code, is amended by
striking ``means the development phase whose'' and inserting ``means the
period in the course of an acquisition program during which the''.
(2) Subsection (d)(1) of section 232 of the National Defense
Authorization Act for Fiscal Year 2002 (Public Law 107-107; 115 Stat.
1037; 10 U.S.C. 2431 note) is amended by striking ``, as added by
subsection (b)''.

SEC. 222. FIELDING OF BALLISTIC MISSILE DEFENSE CAPABILITIES.

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

[[Page 1420]]
117 STAT. 1420

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

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

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

``(a) Budget Justification Materials.--In the budget justification
materials submitted to Congress in support of the Department of Defense
budget for any fiscal year (as submitted with the budget of the
President under section 1105(a) of title 31), the Secretary of Defense
shall specify, for each ballistic missile defense system element for
which the Missile Defense Agency is engaged in planning for production
and initial fielding, the following information:
``(1) The production rate capabilities of the production
facilities planned to be used for production of that element.
``(2) The potential date of availability of that element for
initial fielding.
``(3) The estimated date on which the administration of the
acquisition of that element is to be transferred from the
Director of the Missile Defense Agency to the Secretary of a
military department.

``(b) Future-Years Defense Program.--The Secretary of Defense shall
include in the future-years defense program submitted to Congress each
year under section 221 of this title an estimate of the amount necessary
for procurement for each ballistic missile defense system element,
together with a discussion of the underlying factors and reasoning
justifying the estimate.
``(c) Performance Criteria.--The Director of the Missile Defense
Agency shall include in the performance criteria prescribed for planned
development phases of the ballistic missile defense system and its
elements a description of the intended effectiveness of each such phase
against foreign adversary capabilities.
``(d) Testing Progress.--The Director of Operational Test and
Evaluation shall make available for review by the congressional defense
committees the developmental and operational test plans established to
assess the effectiveness of the ballistic missile defense system and its
elements with respect to the performance criteria described in
subsection (c).''.
(2) The table of sections at the beginning of such chapter is
amended by inserting after the item relating to section 223 the
following new item:

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

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

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

Section 235(b) of the National Defense Authorization Act for Fiscal
Year 2002 (Public Law 107-107; 115 Stat. 1041) is amended--

[[Page 1421]]
117 STAT. 1421

(1) in paragraph (1), by inserting ``or 2004'' after ``for
fiscal year 2002''; and
(2) by [NOTE: Deadline. Reports.]  adding at the end the
following new paragraph:

``(3) Not later than 60 days after the date of the enactment of the
National Defense Authorization Act for Fiscal Year 2004, the Secretary
of Defense shall submit to the congressional defense committees a report
on the community assistance projects under this subsection that are to
be supported using funds referred to in paragraph (1) for fiscal year
2004. The report shall include, for each such project, a description of
the project and an estimate of the total cost of the project.''.

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

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

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

(a) Requirement for Delineation of Responsibility for Follow-on
RDT&E.--Subsection (e) of section 224 of title 10, United States Code,
is amended--
(1) by striking ``for each'' and inserting ``before a'';
(2) by inserting ``is'' before ``transferred'';
(3) by striking ``responsibility'' and inserting ``roles and
responsibilities''; and
(4) by striking ``remains with the Director'' and inserting
``are clearly delineated''.

(b) Conforming Amendment.--Subsection (a) of such section is amended
by striking ``a Department of Defense missile defense program described
in subsection (b)'' and inserting ``the integration of a ballistic
missile defense element into the overall ballistic missile defense
architecture''.

Subtitle D--Other Matters

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

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

``Sec. 2365. Global Research Watch Program

``(a) Program.--The Director of Defense Research and Engineering
shall carry out a Global Research Watch program in accordance with this
section.
``(b) Program Goals.--The goals of the program are as follows:
``(1) To monitor and analyze the basic and applied research
activities and capabilities of foreign nations in areas of
military interest, including allies and competitors.
``(2) To provide standards for comparison and comparative
analysis of research capabilities of foreign nations in relation
to the research capabilities of the United States.

[[Page 1422]]
117 STAT. 1422

``(3) To assist Congress and Department of Defense officials
in making investment decisions for research in technical areas
where the United States may not be the global leader.
``(4) To identify areas where significant opportunities for
cooperative research may exist.
``(5) To coordinate and promote the international
cooperative research and analysis activities of each of the
armed forces and Defense Agencies.
``(6) To establish and maintain an electronic database on
international research capabilities, comparative assessments of
capabilities, cooperative research opportunities, and ongoing
cooperative programs.

``(c) Focus of Program.--The program shall be focused on research
and technologies at a technical maturity level equivalent to Department
of Defense basic and applied research programs.
``(d) Coordination.--(1) The Director shall coordinate the program
with the international cooperation and analysis activities of the
military departments and Defense Agencies.
``(2) The Secretaries of the military departments and the directors
of the Defense Agencies shall provide the Director of Defense Research
and Engineering such assistance as the Director may require for purposes
of the program.
``(e) Classification of Database Information.--Information in
electronic databases of the Global Research Watch program shall be
maintained in unclassified form and, as determined necessary by the
Director, in classified form in such databases.
``(f) Termination.--The requirement to carry out the program under
this section shall terminate on September 30, 2006.''.

(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after section 2364 the following
new item:

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

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

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

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

``(a) Requirement for Strategic Plan.--Every other year, and in time
for submission to Congress under subsection (c), the Director of the
Defense Advanced Research Projects Agency shall prepare a strategic plan
for the activities of that agency.
``(b) Contents.--The strategic plan required by subsection (a) shall
include the following matters:
``(1) The long-term strategic goals of that agency.
``(2) Identification of the research programs of that agency
that support--
``(A) achievement of those strategic goals; and
``(B) exploitation of opportunities that hold the
potential for yielding significant military benefits.
``(3) The connection of the activities and programs of that
agency to activities and missions of the armed forces.
``(4) A technology transition strategy for the programs of
that agency.

[[Page 1423]]
117 STAT. 1423

``(5) A description of the policies of that agency on the
management, organization, and personnel of that agency.

``(c) Submission of Plan to Congress.--The Secretary of Defense
shall submit to Congress the strategic plan most recently prepared under
subsection (a) at the same time that the President submits to Congress
the budget for an even-numbered fiscal year under section 1105(a) of
title 31.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
2351 the following new item:

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

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

Section 2192 of title 10, United States Code, is amended--
(1) by redesignating subsection (b) as subsection (c); and
(2) by inserting after subsection (a) the following new
subsection (b):

``(b)(1) In furtherance of the authority of the Secretary of Defense
under any provision of this chapter or any other provision of law to
support educational programs in science, mathematics, engineering, and
technology, the Secretary of Defense may, unless otherwise specified in
such provision--
``(A) enter into contracts and cooperative agreements with
eligible entities;
``(B) make grants of financial assistance to eligible
entities;
``(C) provide cash awards and other items to eligible
entities;
``(D) accept voluntary services from eligible entities; and
``(E) support national competition judging, other
educational event activities, and associated award ceremonies in
connection with these educational programs.

``(2) In this subsection:
``(A) The term `eligible entity' includes a department or
agency of the Federal Government, a State, a political
subdivision of a State, an individual, and a not-for-profit or
other organization in the private sector.
``(B) The term `State' means any State of the United States,
the District of Columbia, the Commonwealth of Puerto Rico, Guam,
the United States Virgin Islands, the Commonwealth of the
Northern Mariana Islands, American Samoa, and any other
territory or possession of the United States.''.

SEC. 234. [NOTE: 10 USC 2358 note.] DEPARTMENT OF DEFENSE PROGRAM TO
EXPAND HIGH-SPEED, HIGH-BANDWIDTH CAPABILITIES FOR NETWORK-
CENTRIC OPERATIONS.

(a) In General.--The Secretary of Defense shall carry out a program
of research and development to promote the development of high-speed,
high-bandwidth communications capabilities for support of network-
centric operations by the Armed Forces.
(b) Purposes.--The purposes of the program required by subsection
(a) are as follows:
(1) To accelerate the development and fielding by the Armed
Forces of network-centric operational capabilities (including
expanded use of unmanned vehicles, satellite communications, and
sensors) through the promotion of research and

[[Page 1424]]
117 STAT. 1424

development, and the focused coordination of programs, to
achieve high-speed, high-bandwidth connectivity to military
assets.
(2) To provide for the development of equipment and
technologies for military high-speed, high-bandwidth
communications capabilities for support of network-centric
operations.

(c) Description of Program.--In carrying out the program of research
and development required by subsection (a), the Secretary shall--
(1) identify areas of advanced wireless communications in
which research and development, or the use of emerging
technologies, has significant potential to improve the
performance, efficiency, cost, and flexibility of advanced
communications systems for support of network-centric
operations;
(2) develop a coordinated plan for research and development
on--
(A) improved spectrum access through spectrum-
efficient communications for support of network-centric
operations;
(B) high-speed, high-bandwidth communications;
(C) networks, including complex ad hoc adaptive
network structures;
(D) communications devices, including efficient
receivers and transmitters;
(E) computer software and wireless communication
applications, including robust security and encryption;
and
(F) any other matters that the Secretary considers
appropriate for the purposes described in subsection
(b);
(3) ensure joint research and development, and promote joint
systems acquisition and deployment, among the military
departments and defense agencies, including the development of
common cross-service technology requirements and doctrine, so as
to enhance interoperability among the military services and
defense agencies;
(4) conduct joint experimentation among the Armed Forces,
and coordinate with the Joint Forces Command, on experimentation
to support the development of network-centric warfare
capabilities from the operational to the small unit level in the
Armed Forces;
(5) consult with other Federal entities and with private
industry to develop cooperative research and development
efforts, to the extent that such efforts are practicable.

(d) Report.--(1) The Secretary shall submit to the congressional
defense committees, together with the budget justification materials
submitted to Congress in support of the Department of Defense budget for
fiscal year 2006 (as submitted with the budget of the President under
section 1105(a) of title 31, United States Code), a report on the
activities carried out under this section through the date on which the
report is submitted.
(2) The report under paragraph (1) shall include the following:
(A) A description of the research and development activities
carried out under subsection (a), including the particular
activities carried out under the plan required by subsection
(c)(2).
(B) Current and proposed funding for the particular
activities carried out under that plan, as set forth in each of
subparagraphs (A) through (F) of subsection (c)(2).

[[Page 1425]]
117 STAT. 1425

(C) A description of the joint research and development
activities required by subsection (c)(3).
(D) A description of the joint experimentation activities
required by subsection (c)(4).
(E) An analysis of the effects on recent military operations
of limitations on communications bandwidth and access to radio
frequency spectrum.
(F) An assessment of the effect of additional resources on
the ability to achieve the purposes described in subsection (b).
(G) Such recommendations for additional activities under
this section as the Secretary considers appropriate to meet the
purposes described in subsection (b).

SEC. 235. BLUE FORCES TRACKING INITIATIVE.

(a) Goal.--It shall be a goal of the Department of Defense to
coordinate fully the various efforts of the Chairman of the Joint Chiefs
of Staff, the commanders of the combatant commands, and the Secretaries
of the military departments to develop an effective system for tracking
of United States and other friendly forces (known as ``blue forces'')
during combat operations.
(b) Joint Blue Forces Tracking Experiment.--(1) The Secretary of
Defense, acting through the commander of the United States Joint Forces
Command, shall carry out a joint experiment during fiscal year 2004 to
demonstrate and evaluate available joint blue forces tracking
technologies.
(2) The objectives of the experiment under paragraph (1) are as
follows:
(A) To explore various options for tracking United States
and other friendly forces during combat operations.
(B) To determine an optimal, achievable, and upgradable
solution for the development, acquisition, and fielding of a
system for tracking all United States military forces that is
coordinated and interoperable and also accommodates the
participation of military forces of allied nations with United
States forces in combat operations.

(c) Report.--Not [NOTE: Deadline.]  later than 60 days after the
conclusion of the experiment under subsection (b), but not later than
December 1, 2004, the Secretary shall submit to the congressional
defense committees a report on the results of the experiment, together
with a comprehensive plan for the development, acquisition, and fielding
of a functional, near real-time blue forces tracking system.

TITLE III--OPERATION AND MAINTENANCE

Subtitle A--Authorization of Appropriations

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

Subtitle B--Environmental Provisions

Sec. 311. Reauthorization and modification of title I of Sikes Act.
Sec. 312. Clarification of Department of Defense response to
environmental emergencies.
Sec. 313. Repeal of authority to use environmental restoration account
funds for relocation of a contaminated facility.
Sec. 314. Authorization for Department of Defense participation in
wetland mitigation banks.

[[Page 1426]]
117 STAT. 1426

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

Subtitle C--Workplace and Depot Issues

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

Subtitle D--Other Matters

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

Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

Funds are hereby authorized to be appropriated for fiscal year 2004
for the use of the Armed Forces and other activities and agencies of the
Department of Defense for expenses, not otherwise provided for, for
operation and maintenance, in amounts as follows:
(1) For the Army, $24,627,037,000.
(2) For the Navy, $27,975,559,000.
(3) For the Marine Corps, $3,426,056,000.
(4) For the Air Force, $26,089,670,000.
(5) For Defense-wide activities, $16,243,157,000.
(6) For the Army Reserve, $1,966,009,000.
(7) For the Naval Reserve, $1,171,921,000.
(8) For the Marine Corps Reserve, $173,952,000.
(9) For the Air Force Reserve, $2,179,188,000.
(10) For the Army National Guard, $4,256,331,000.
(11) For the Air National Guard, $4,406,146,000.

[[Page 1427]]
117 STAT. 1427

(12) For the United States Court of Appeals for the Armed
Forces, $10,333,000.
(13) For Environmental Restoration, Army, $396,018,000.
(14) For Environmental Restoration, Navy, $256,153,000.
(15) For Environmental Restoration, Air Force, $384,307,000.
(16) For Environmental Restoration, Defense-wide,
$24,081,000.
(17) For Environmental Restoration, Formerly Used Defense
Sites, $252,619,000.
(18) For Overseas Humanitarian, Disaster, and Civic Aid
programs, $59,000,000.
(19) For Cooperative Threat Reduction programs,
$450,800,000.
(20) Overseas Contingencies Program, $5,000,000.

SEC. 302. WORKING CAPITAL FUNDS.

Funds are hereby authorized to be appropriated for fiscal year 2004
for the use of the Armed Forces and other activities and agencies of the
Department of Defense for providing capital for working capital and
revolving funds in amounts as follows:
(1) For the Defense Working Capital Funds, $632,261,000.
(2) For the National Defense Sealift Fund, $1,062,762,000.
(3) For the Defense Commissary Agency Working Capital Fund,
$1,089,246,000.

SEC. 303. OTHER DEPARTMENT OF DEFENSE PROGRAMS.

(a) Defense Health Program.--Funds are hereby authorized to be
appropriated for the Department of Defense for fiscal year 2004 for
expenses, not otherwise provided for, for the Defense Health Program,
$15,401,509,000, of which--
(1) $15,007,887,000 is for Operation and Maintenance;
(2) $65,796,000 is for Research, Development, Test, and
Evaluation; and
(3) $327,826,000 is for Procurement.

(b) Chemical Agents and Munitions Destruction, Defense.--(1) Funds
are hereby authorized to be appropriated for the Department of Defense
for fiscal year 2004 for expenses, not otherwise provided for, for
Chemical Agents and Munitions Destruction, Defense, $1,530,261,000, of
which--
(A) $1,199,168,000 is for Operation and Maintenance;
(B) $251,881,000 is for Research, Development, Test, and
Evaluation; and
(C) $79,212,000 is for Procurement.

(2) Amounts authorized to be appropriated under paragraph (1) are
authorized for--
(A) the destruction of lethal chemical agents and munitions
in accordance with section 1412 of the Department of Defense
Authorization Act, 1986 (50 U.S.C. 1521); and
(B) the destruction of chemical warfare materiel of the
United States that is not covered by section 1412 of such Act.

(c) Drug Interdiction and Counter-Drug Activities, Defense-wide.--
Funds are hereby authorized to be appropriated for the Department of
Defense for fiscal year 2004 for expenses, not otherwise provided for,
for Drug Interdiction and Counter-Drug Activities, Defense-wide,
$817,371,000.

[[Page 1428]]
117 STAT. 1428

(d) Defense Inspector General.--Funds are hereby authorized to be
appropriated for the Department of Defense for fiscal year 2004 for
expenses, not otherwise provided for, for the Office of the Inspector
General of the Department of Defense, $162,449,000, of which--
(1) $160,049,000 is for Operation and Maintenance;
(2) $2,100,000 is for Research, Development, Test, and
Evaluation; and
(3) $300,000 is for Procurement.

Subtitle B--Environmental Provisions

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

(a) Reauthorization.--Section 108 of the Sikes Act (16 U.S.C. 670f)
is amended by striking ``fiscal years 1998 through 2003'' each place it
appears and inserting ``fiscal years 2004 through 2008''.
(b) Sense of Congress Regarding Section 107.--(1) Congress finds the
following:
(A) The Department of Defense maintains over 25,000,000
acres of valuable fish and wildlife habitat on approximately 400
military installations nationwide.
(B) These lands contain a wealth of plant and animal life,
vital wetlands for migratory birds, and nearly 300 federally
listed threatened species and endangered species.
(C) Increasingly, land surrounding military bases are being
developed with residential and commercial infrastructure that
fragments fish and wildlife habitat and decreases its ability to
support a diversity of species.
(D) Comprehensive conservation plans, such as integrated
natural resource management plans under the Sikes Act (16 U.S.C.
670 et seq.), can ensure that these ecosystem values can be
protected and enhanced while allowing these lands to meet the
needs of military operations.
(E) Section 107 of the Sikes Act (16 U.S.C. 670e-2) requires
sufficient numbers of professionally trained natural resources
management personnel and natural resources law enforcement
personnel to be available and assigned responsibility to perform
tasks necessary to carry out title I of the Sikes Act, including
the preparation and implementation of integrated natural
resource management plans.
(F) Managerial and policymaking functions performed by
Department of Defense on-site professionally trained natural
resource management personnel on military installations are
appropriate governmental functions.
(G) Professionally trained civilian biologists in permanent
Federal Government career managerial positions are essential to
oversee fish and wildlife and natural resource conservation
programs and are essential to the conservation of wildlife
species on military land.

(2) It is the sense of Congress that the Secretary of Defense should
take whatever steps are necessary to ensure that section 107 of the
Sikes Act (16 U.S.C. 670e-2) is fully implemented consistent with the
findings made in paragraph (1).

[[Page 1429]]
117 STAT. 1429

(c) Pilot Program.--(1) Section 101 of the Sikes Act (16 U.S.C.
670a) is amended by adding at the end the following new subsection:
``(g) Pilot Program for Invasive Species Management for Military
Installations in Guam.--
``(1) Inclusion of invasive species management.--During
fiscal years 2004 through 2008, the Secretary of Defense shall,
to the extent practicable and conducive to military readiness,
incorporate in integrated natural resources management plans for
military installations in Guam the management, control, and
eradication of invasive species--
``(A) that are not native to the ecosystem of the
military installation; and
``(B) the introduction of which cause or may cause
harm to military readiness, the environment, or human
health and safety.
``(2) Consultation.--The Secretary of Defense shall carry
out this subsection in consultation with the Secretary of the
Interior.''.

(2) [NOTE: Applicability. 10 USC 670a note.] Section 101(g) of the
Sikes Act, as added by paragraph (1), shall apply--
(A) to any integrated natural resources management plan
prepared for a military installation in Guam under section
101(a)(1) of such Act on or after the date of the enactment of
this Act; and
(B) effective [NOTE: Effective date.] March 1, 2004, to
any integrated natural resources management plan prepared for a
military installation in Guam under such section before the date
of the enactment of this Act.

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

(a) Transportation of Humanitarian Relief Supplies to Respond to
Environmental Emergencies.--Section 402 of title 10, United States Code,
is amended--
(1) by redesignating subsection (d) as subsection (e); and
(2) by inserting after subsection (c) the following new
subsection (d):

``(d)(1) The Secretary of Defense may use the authority provided by
subsection (a) to transport supplies intended for use to respond to, or
mitigate the effects of, an event or condition, such as an oil spill,
that threatens serious harm to the environment, but only if other
sources to provide such transportation are not readily available.
``(2) Notwithstanding subsection (a), the Secretary of Defense may
require reimbursement for costs incurred by the Department of Defense to
transport supplies under this subsection.''.
(b) Conditions on Provision of Transportation.--Subsection (b) of
such section is amended--
(1) in paragraph (1)(C), by inserting ``or entity'' after
``people'';
(2) in paragraph (1)(E), by inserting ``or use'' after
``distribution''; and
(3) in paragraph (3), by striking ``donor to ensure that
supplies to be transported under this section'' and inserting
``entity requesting the transport of supplies under this section
to ensure that the supplies''.

[[Page 1430]]
117 STAT. 1430

(c) Provision of Disaster Assistance.--Section 404 of such title is
amended--
(1) in subsection (a), by inserting ``or serious harm to the
environment'' after ``loss of lives'';
(2) in subsection (c)(2), by inserting ``or the
environment'' after ``human lives''; and
(3) by adding at the end the following new subsection:

``(e) Limitation on Transportation Assistance.--Transportation
services authorized under subsection (b) may be provided in response to
a manmade or natural disaster to prevent serious harm to the
environment, when human lives are not at risk, only if other sources to
provide such transportation are not readily available.''.
(d) Provision of Humanitarian Assistance.--Section 2561(a) of such
title is amended--
(1) by inserting ``(1)'' before ``To the extent''; and
(2) by adding at the end the following new paragraph:

``(2) The Secretary of Defense may use the authority provided by
paragraph (1) to transport supplies intended for use to respond to, or
mitigate the effects of, an event or condition, such as an oil spill,
that threatens serious harm to the environment, but only if other
sources to provide such transportation are not readily available. The
Secretary may require reimbursement for costs incurred by the Department
of Defense to transport supplies under this paragraph.''.

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

(a) Repeal.--Effective [NOTE: Effective date. 10 USC 2703 note.]
October 1, 2003, section 2703(c) of title 10, United States Code, is
amended--
(1) in paragraph (1) by striking ``only--'' and all that
follows through the period at the end and inserting ``only to
carry out the environmental restoration functions of the
Secretary of Defense and the Secretaries of the military
departments under this chapter and under any other provision of
law.'';
(2) by striking paragraphs (2) and (3); and
(3) by redesignating paragraph (4) as paragraph (2) and
striking the second sentence of such paragraph.

(b) Effect [NOTE: 10 USC 2703 note.] of Repeal on Existing
Agreements.--An agreement in effect on September 30, 2003, under section
2703(c)(1)(B) of title 10, United States Code, as in effect on that
date, to pay for the costs of permanently relocating a facility because
of a release or threatened release of hazardous substances, pollutants,
or contaminants shall remain in effect after that date, subject to the
terms of the agreement, and costs may be paid in accordance with the
terms of the agreement, notwithstanding the amendments made by
subsection (a).

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

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

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

``(a) Authority to Participate.--The Secretary of a military
department, and the Secretary of Defense with respect to matters

[[Page 1431]]
117 STAT. 1431

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

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

(b) Mitigation [NOTE: 33 USC 1344 note.]  and Mitigation Banking
Regulations.--(1) To ensure opportunities for Federal agency
participation in mitigation banking, the Secretary of the Army, acting
through the Chief of Engineers, shall issue regulations establishing
performance standards and criteria for the use, consistent with section
404 of the Federal Water Pollution Control Act (33 U.S.C. 1344), of on-
site, off-site, and in-lieu fee mitigation and mitigation banking as
compensation for lost wetlands functions in permits issued by the
Secretary of the Army under such section. To the maximum extent
practicable, the regulatory standards and criteria shall maximize
available credits and opportunities for mitigation, provide flexibility
for regional variations in wetland conditions, functions and values, and
apply equivalent standards and criteria to each type of compensatory
mitigation.

(2) Final [NOTE: Deadline.] regulations shall be issued not later
than two years after the date of the enactment of this Act.

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

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

``(b) Salvage Services Defined.--In this section, the term `salvage
services' includes services performed in connection with

[[Page 1432]]
117 STAT. 1432

a marine salvage operation that are intended to prevent, abate, or
minimize damage to the environment.''.

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

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

SEC. 317. [NOTE: 10 USC 2705 note.] REQUIREMENTS FOR RESTORATION
ADVISORY BOARDS AND EXEMPTION FROM FEDERAL ADVISORY
COMMITTEE ACT.

(a) Membership and Meeting Requirements for Restoration Advisory
Boards.--The Secretary of Defense shall amend the regulations required
by section 2705(d)(2) of title 10, United States Code, relating to the
establishment, characteristics, composition, and funding of restoration
advisory boards to ensure that each restoration advisory board complies
with the following requirements:
(1) Each restoration advisory board shall be fairly balanced
in its membership in terms of the points of view represented and
the functions to be performed.
(2) Unless a closed or partially closed meeting is
determined to be proper in accordance with one or more of the
exceptions listed in section 552b(c) of title 5, United States
Code, each meeting of a restoration advisory board shall be--
(A) held at a reasonable time and in a manner or
place reasonably accessible to the public, including
individuals with disabilities; and
(B) open to the public.
(3) Timely [NOTE: Notice. Publication.] notice of each
meeting of a restoration advisory board shall be published in a
local newspaper of general circulation.
(4) Interested persons may appear before or file statements
with a restoration advisory board, subject to such reasonable
restrictions as the Secretary may prescribe.
(5) Subject to section 552 of title 5, United States Code,
the records, reports, minutes, appendixes, working papers,
drafts, studies, agenda, or other documents that were made
available to, prepared for, or prepared by each restoration
advisory board shall be available for public inspection and
copying at a single, publicly accessible location, such as a
public library or an appropriate office of the military
installation for which the restoration advisory board is
established, at least until the restoration advisory board is
terminated.
(6) Detailed minutes of each meeting of each restoration
advisory board shall be kept and shall contain a record of the
persons present, a complete and accurate description of matters
discussed and conclusions reached, and copies of all reports
received, issued, or approved by the restoration advisory board.
The accuracy of the minutes of a restoration advisory board
shall be certified by the chairperson of the board.

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

[[Page 1433]]
117 STAT. 1433

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

(a) Limitation on Designation of Critical Habitat.--Section 4(a)(3)
of the Endangered Species Act of 1973 (16 U.S.C. 1533(a)(3)) is
amended--
(1) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii), respectively;
(2) by inserting ``(A)'' after ``(3)''; and
(3) by adding at the end the following:

``(B)(i) The Secretary shall not designate as critical habitat any
lands or other geographical areas owned or controlled by the Department
of Defense, or designated for its use, that are subject to an integrated
natural resources management plan prepared under section 101 of the
Sikes Act (16 U.S.C. 670a), if the Secretary determines in writing that
such plan provides a benefit to the species for which critical habitat
is proposed for designation.
``(ii) Nothing in this paragraph affects the requirement to consult
under section 7(a)(2) with respect to an agency action (as that term is
defined in that section).
``(iii) Nothing in this paragraph affects the obligation of the
Department of Defense to comply with section 9, including the
prohibition preventing extinction and taking of endangered species and
threatened species.''.
(b) Consideration of Effects of Designation of Critical Habitat.--
Section 4(b)(2) of the Endangered Species Act of 1973 (16 U.S.C.
1533(b)(2)) is amended by inserting ``the impact on national security,''
after ``the economic impact,''.

SEC. 319. MILITARY READINESS AND MARINE MAMMAL PROTECTION.

(a) Definition of Harassment for Military Readiness Activities.--
Section 3(18) of the Marine Mammal Protection Act of 1972 (16 U.S.C.
1362(18)) is amended by striking subparagraphs (B) and (C) and inserting
the following new subparagraphs:
``(B) In the case of a military readiness activity (as
defined in section 315(f) of Public Law 107-314; 16 U.S.C. 703
note) or a scientific research activity conducted by or on
behalf of the Federal Government consistent with section
104(c)(3), the term `harassment' means--
``(i) any act that injures or has the significant
potential to injure a marine mammal or marine mammal
stock in the wild; or
``(ii) any act that disturbs or is likely to disturb
a marine mammal or marine mammal stock in the wild by
causing disruption of natural behavioral patterns,
including, but not limited to, migration, surfacing,
nursing, breeding, feeding, or sheltering, to a point
where such behavioral patterns are abandoned or
significantly altered.
``(C) The term `Level A harassment' means harassment
described in subparagraph (A)(i) or, in the case of a military
readiness activity or scientific research activity described in
subparagraph (B), harassment described in subparagraph (B)(i).
``(D) The term `Level B harassment' means harassment
described in subparagraph (A)(ii) or, in the case of a military
readiness activity or scientific research activity described in
subparagraph (B), harassment described in subparagraph
(B)(ii).''.

[[Page 1434]]
117 STAT. 1434

(b) Exemption of Actions Necessary for National Defense.--Section
101 of the Marine Mammal Protection Act of 1972 (16 U.S.C. 1371) is
amended by inserting after subsection (e) the following:
``(f) Exemption of Actions Necessary for National Defense.--(1) The
Secretary of Defense, after conferring with the Secretary of Commerce,
the Secretary of the Interior, or both, as appropriate, may exempt any
action or category of actions undertaken by the Department of Defense or
its components from compliance with any requirement of this Act, if the
Secretary determines that it is necessary for national defense.
``(2) An exemption granted under this subsection--
``(A) subject to subparagraph (B), shall be effective for a
period specified by the Secretary of Defense; and
``(B) [NOTE: Deadline.] shall not be effective for more
than 2 years.

``(3)(A) The Secretary of Defense may issue additional exemptions
under this subsection for the same action or category of actions,
after--
``(i) conferring with the Secretary of Commerce, the
Secretary of the Interior, or both as appropriate; and
``(ii) making a new determination that the additional
exemption is necessary for national defense.

``(B) Each [NOTE: Deadline.] additional exemption under this
paragraph shall be effective for a period specified by the Secretary of
Defense, of not more than 2 years.

``(4) Not [NOTE: Deadline.] later than 30 days after issuing an
exemption under paragraph (1) or an additional exemption under paragraph
(3), the Secretary of Defense shall submit to the Committee on Armed
Services of the House of Representatives and the Committee on Armed
Services of the Senate notice describing the exemption and the reasons
therefor. The notice may be provided in classified form if the Secretary
of Defense determines that use of the classified form is necessary for
reasons of national security.''.

(c) Incidental Takings of Marine Mammals in Military Readiness
Activities.--Section 101(a)(5) of the Marine Mammal Protection Act of
1972 (16 U.S.C. 1371(a)(5)) is amended--
(1) in subparagraph (A)--
(A) by redesignating clauses (i) and (ii) and
subclauses (I) and (II) as subclauses (I) and (II) and
items (aa) and (bb), respectively;
(B) by inserting ``(i)'' after ``(5)(A)''; and
(C) by adding at the end the following new clauses:
``(ii) For a military readiness activity (as defined in
section 315(f) of Public Law 107-314; 16 U.S.C. 703 note), a
determination of `least practicable adverse impact on such
species or stock' under clause (i)(II)(aa) shall include
consideration of personnel safety, practicality of
implementation, and impact on the effectiveness of the military
readiness activity. Before making the required determination,
the Secretary shall consult with the Department of Defense
regarding personnel safety, practicality of implementation, and
impact on the effectiveness of the military readiness activity.
``(iii) [NOTE: Federal Register,
publication.] Notwithstanding clause (i), for any authorization
affecting a military readiness activity (as defined in section
315(f) of Public Law 107-314; 16 U.S.C. 703 note), the Secretary
shall publish the notice required by such clause only in the
Federal Register.'';

[[Page 1435]]
117 STAT. 1435

(2) in subparagraph (D), by adding at the end the following
new clauses:
``(vi) For a military readiness activity (as defined in
section 315(f) of Public Law 107-314; 16 U.S.C. 703 note), a
determination of `least practicable adverse impact on such
species or stock' under clause (i)(I) shall include
consideration of personnel safety, practicality of
implementation, and impact on the effectiveness of the military
readiness activity. Before making the required determination,
the Secretary shall consult with the Department of Defense
regarding personnel safety, practicality of implementation, and
impact on the effectiveness of the military readiness activity.
``(vii) [NOTE: Federal Register,
publication.] Notwithstanding clause (iii), for any
authorization affecting a military readiness activity (as
defined in section 315(f) of Public Law 107-314; 16 U.S.C. 703
note), the Secretary shall publish the notice required by such
clause only in the Federal Register.''; and
(3) by adding at the end the following new subparagraph:
``(F) Notwithstanding the provisions of this subsection, any
authorization affecting a military readiness activity (as
defined in section 315(f) of Public Law 107-314; 16 U.S.C. 703
note) shall not be subject to the following requirements:
``(i) In subparagraph (A), `within a specified
geographical region' and `within that region of small
numbers'.
``(ii) In subparagraph (B), `within a specified
geographical region' and `within one or more regions'.
``(iii) In subparagraph (D), `within a specific
geographic region', `of small numbers', and `within that
region'.''.

SEC. 320. [NOTE: 10 USC 113 note.] REPORT REGARDING IMPACT OF CIVILIAN
COMMUNITY ENCROACHMENT AND CERTAIN LEGAL REQUIREMENTS ON
MILITARY INSTALLATIONS AND RANGES AND PLAN TO ADDRESS
ENCROACHMENT.

(a) Study Required.--The Secretary of Defense shall conduct a study
on the impact, if any, of the following types of encroachment issues
affecting military installations and operational ranges:
(1) Civilian community encroachment on those military
installations and ranges whose operational training activities,
research, development, test, and evaluation activities, or other
operational, test and evaluation, maintenance, storage,
disposal, or other support functions require, or in the future
reasonably may require, safety or operational buffer areas. The
requirement for such a buffer area may be due to a variety of
factors, including air operations, ordnance operations and
storage, or other activities that generate or might generate
noise, electro-magnetic interference, ordnance arcs, or
environmental impacts that require or may require safety or
operational buffer areas.
(2) Compliance by the Department of Defense with State
Implementation Plans for Air Quality under section 110 of the
Clean Air Act (42 U.S.C. 7410).
(3) Compliance by the Department of Defense with the Solid
Waste Disposal Act (42 U.S.C. 6901 et seq.) and the
Comprehensive Environmental Response, Compensation, and
Liability Act of 1980 (42 U.S.C. 9601 et seq.).

(b) Matters To Be Included With Respect to Civilian Community
Encroachments.--With respect to paragraph (1) of subsection (a), the
study shall include the following:

[[Page 1436]]
117 STAT. 1436

(1) A list of all military installations described in
subsection (a)(1) at which civilian community encroachment is
occurring.
(2) A description and analysis of the types and degree of
such civilian community encroachment at each military
installation included on the list.
(3) An analysis, including views and estimates of the
Secretary of Defense, of the current and potential future impact
of such civilian community encroachment on operational training
activities, research, development, test, and evaluation
activities, and other significant operational, test and
evaluation, maintenance, storage, disposal, or other support
functions performed by military installations included on the
list. The analysis shall include the following:
(A) A review of training and test ranges at military
installations, including laboratories and technical
centers of the military departments, included on the
list.
(B) A description and explanation of the trends of
such encroachment, as well as consideration of potential
future readiness problems resulting from unabated
encroachment.
(4) An estimate of the costs associated with current and
anticipated partnerships between the Department of Defense and
non-Federal entities to create buffer zones to preclude further
development around military installations included on the list,
and the costs associated with the conveyance of surplus property
around such military installations for purposes of creating
buffer zones.
(5) Options and recommendations for possible legislative or
budgetary changes necessary to mitigate current and anticipated
future civilian community encroachment problems.

(c) Matters To Be Included With Respect to Compliance With Specified
Laws.--With respect to paragraphs (2) and (3) of subsection (a), the
study shall include the following:
(1) A list of all military installations and other locations
at which the Armed Forces are encountering problems related to
compliance with the laws specified in such paragraphs.
(2) A description and analysis of the types and degree of
compliance problems encountered.
(3) An analysis, including views and estimates of the
Secretary of Defense, of the current and potential future impact
of such compliance problems on the following functions performed
at military installations:
(A) Operational training activities.
(B) Research, development, test, and evaluation
activities.
(C) Other significant operational, test and
evaluation, maintenance, storage, disposal, or other
support functions.
(4) A description and explanation of the trends of such
compliance problems, as well as consideration of potential
future readiness problems resulting from such compliance
problems.

(d) Plan to Respond to Encroachment Issues.--On the basis of the
study conducted under subsection (a), including the specific matters
required to be addressed by subsections (b) and (c), the Secretary of
Defense shall prepare a plan to respond to the encroachment issues
described in subsection (a) affecting military installations and
operational ranges.

[[Page 1437]]
117 STAT. 1437

(e) Reporting Requirements.--The Secretary of Defense shall submit
to the Committee on Armed Services of the Senate and the Committee on
Armed Services of the House of Representatives the following reports
regarding the study conducted under subsection (a), including the
specific matters required to be addressed by subsections (b) and (c):
(1) [NOTE: Deadline.] Not later than January 31, 2004, an
interim report describing the progress made in conducting the
study and containing the information collected under the study
as of that date.
(2) [NOTE: Deadline.] Not later than January 31, 2006, a
report containing the results of the study and the encroachment
response plan required by subsection (d).
(3) [NOTE: Deadlines.] Not later than January 31, 2007,
and each January 31 thereafter through January 31, 2010, a
report describing the progress made in implementing the
encroachment response plan.

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

(a) Limitation on Federal Responsibility for Civilian Water
Consumption Impacts.--
(1) Limitation.--For purposes of section 7 of the Endangered
Species Act of 1973 (16 U.S.C. 1536), concerning any present and
future Federal agency action at Fort Huachuca, Arizona, water
consumption by State, local, and private entities off of the
installation that is not a direct or indirect effect of the
agency action or an effect of other activities that are
interrelated or interdependent with that agency action, shall
not be considered in determining whether such agency action is
likely to jeopardize the continued existence of any endangered
or threatened species or result in the destruction or adverse
modification of designated critical habitat.
(2) Voluntary regional conservation efforts.--Nothing in
this subsection shall prohibit Federal agencies operating at
Fort Huachuca from voluntarily undertaking efforts to mitigate
water consumption.
(3) Definition of water consumption.--In this subsection,
the term ``water consumption'' means all water use off of the
installation from any source.
(4) Effective date.--This subsection applies only to Federal
agency actions regarding which the Federal agency involved
determines that consultation, or reinitiation of consultation,
under section 7 of the Endangered Species Act of 1973 (16 U.S.C.
1536) is required with regard to an agency action at Fort
Huachuca on or after the date of the enactment of this Act.

(b) Recognition of Upper San Pedro [NOTE: Arizona.]
Partnership.--Congress hereby recognizes the Upper San Pedro
Partnership, Arizona, a partnership of Fort Huachuca, Arizona, other
Federal, State, and local governmental and nongovernmental entities, and
its efforts to establish a collaborative water use management program in
the Sierra Vista Subwatershed, Arizona, to achieve the sustainable yield
of the regional aquifer, so as to protect the Upper San Pedro River,
Arizona, and the San Pedro Riparian National Conservation Area, Arizona.

[[Page 1438]]
117 STAT. 1438

(c) Report on Water Use Management and Conservation of Regional
Aquifer.--
(1) In general.--The Secretary of the Interior shall
prepare, in consultation with the Secretary of Agriculture and
the Secretary of Defense and in cooperation with the other
members of the Partnership, a report on the water use management
and conservation measures that have been implemented and are
needed to restore and maintain the sustainable yield of the
regional aquifer by and after September 30,
2011. [NOTE: Deadline.] The Secretary of the Interior shall
submit the report to Congress not later than December 31, 2004.
(2) Purpose.--The purpose of the report is to set forth
measurable annual goals for the reduction of the overdrafts of
the groundwater of the regional aquifer, to identify specific
water use management and conservation measures to facilitate the
achievement of such goals, and to identify impediments in
current Federal, State, and local laws that hinder efforts on
the part of the Partnership to mitigate water usage in order to
restore and maintain the sustainable yield of the regional
aquifer by and after September 30, 2011.
(3) Report elements.--The report shall use data from
existing and ongoing studies and include the following elements:
(A) The net quantity of water withdrawn from and
recharged to the regional aquifer in the one-year period
preceding the date of the submission of the report.
(B) The quantity of the overdraft of the regional
aquifer to be reduced by the end of each of fiscal years
2005 through 2011 to achieve sustainable yield.
(C) With respect to the reduction of overdraft for
each fiscal year as specified under subparagraph (B), an
allocation of responsibility for the achievement of such
reduction among the water-use controlling members of the
Partnership who have the authority to implement measures
to achieve such reduction.
(D) The water use management and conservation
measures to be undertaken by each water-use controlling
member of the Partnership to contribute to the reduction
of the overdraft for each fiscal year as specified under
subparagraph (B), and to meet the responsibility of each
such member for each such reduction as allocated under
subparagraph (C), including--
(i) a description of each measure;
(ii) the cost of each measure;
(iii) a schedule for the implementation of
each measure;
(iv) a projection by fiscal year of the amount
of the contribution of each measure to the
reduction of the overdraft; and
(v) a list of existing laws that impede full
implementation of any measure.
(E) The monitoring and verification activities to be
undertaken by the Partnership to measure the reduction
of the overdraft for each fiscal year and the
contribution of each member of the Partnership to the
reduction of the overdraft.

(d) Annual Report on Progress Toward Sustainable Yield.--

[[Page 1439]]
117 STAT. 1439

(1) In [NOTE: Deadlines.] general.--Not later than October
31, 2005, and each October 31 thereafter through 2011, the
Secretary of the Interior shall submit, on behalf of the
Partnership, to Congress a report on the progress of the
Partnership during the preceding fiscal year toward achieving
and maintaining the sustainable yield of the regional aquifer by
and after September 30, 2011.
(2) Report elements.--Each report shall include the
following:
(A) The quantity of the overdraft of the regional
aquifer reduced during the reporting period, and whether
such reduction met the goal specified for such fiscal
year under subsection (c)(3)(B).
(B) The water use management and conservation
measures undertaken by each water-use controlling member
of the Partnership in the fiscal year covered by such
report, including the extent of the contribution of such
measures to the reduction of the overdraft for such
fiscal year.
(C) The legislative accomplishments made during the
fiscal year covered by such report in removing legal
impediments that hinder the mitigation of water use by
members of the Partnership.

(e) Verification Information.--Information used to verify overdraft
reductions of the regional aquifer shall include at a minimum the
following:
(1) The annual report of the Arizona Corporation Commission
on annual groundwater pumpage of the private water companies in
the Sierra Vista Subwatershed.
(2) The San Pedro base flow monitoring record of the
Charleston flow gauge of the United States Geological Survey.
(3) Current surveys of the groundwater levels in area wells
as reported by the Arizona Department of Water Resources and by
Federal agencies.

(f) Sense of Congress.--It is the sense of Congress that any future
appropriations to the Partnership should take into account whether the
Partnership has met its annual goals for overdraft reduction.
(g) Definitions.--In this section:
(1) The term ``Partnership'' means the Upper San Pedro
Partnership, Arizona.
(2) The term ``regional aquifer'' means the Sierra Vista
Subwatershed regional aquifer, Arizona.
(3) The term ``water-use controlling member'' has the
meaning given that term by the Partnership.

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

(a) Task [NOTE: Establishment.] Force.--The Secretary of Defense
shall establish a task force to determine and assess various means of
resolving the conflict between the dual objectives at Barry M. Goldwater
Range, Arizona, of the full utilization of live ordnance delivery areas
for military training and the protection of endangered species that are
present at Barry M. Goldwater Range.

(b) Composition.--The task force shall be composed of the following
members:
(1) The Air Force range officer, who shall serve as
chairperson of the task force.

[[Page 1440]]
117 STAT. 1440

(2) The range officer at Barry M. Goldwater Range.
(3) The commander of Luke Air Force Base, Arizona.
(4) The commander of Marine Corps Air Station, Yuma,
Arizona.
(5) The Director of the United States Fish and Wildlife
Service.
(6) The manager of the Cabeza Prieta National Wildlife
Refuge, Arizona.
(7) A representative of the Department of Game and Fish of
the State of Arizona, selected by the Secretary in consultation
with the Governor of the State of Arizona.
(8) A representative of a wildlife interest group in the
State of Arizona, selected by the Secretary in consultation with
wildlife interest groups in the State of Arizona.
(9) A representative of an environmental interest group
(other than a wildlife interest group) in the State of Arizona,
as selected by the Secretary in consultation with environmental
interest groups in the State of Arizona.

(c) Duties.--The task force shall--
(1) assess the effects of the presence of endangered species
on military training activities in the live ordnance delivery
areas at Barry M. Goldwater Range and in any other areas of the
range that are adversely effected by the presence of endangered
species;
(2) determine various means of addressing any significant
adverse effects on military training activities on Barry M.
Goldwater Range that are identified pursuant to paragraph (1);
and
(3) determine the benefits and costs associated with the
implementation of each means identified under paragraph (2).

(d) Use of Experts.--The chairperson of the task force may secure
for the task force the services of such experts with respect to the
duties of the task force as the chairperson considers advisable to carry
out such duties.
(e) Report.--Not later than February 28, 2005, the task force shall
submit to Congress a report containing--
(1) a description of the assessments and determinations made
under subsection (c);
(2) such recommendations for legislative and administrative
action as the task force considers appropriate; and
(3) an evaluation of the utility of task force proceedings
as a means of resolving conflicts between military training
objectives and protection of endangered species at other
military training and testing ranges.

SEC. 323. [NOTE: 42 USC 300j-18 note.] PUBLIC HEALTH ASSESSMENT OF
EXPOSURE TO PERCHLORATE.

(a) Epidemiological Study of Exposure to Perchlorate.--The Secretary
of Defense shall provide for an independent epidemiological study of
exposure to perchlorate in drinking water. The entity conducting the
study shall--
(1) assess the incidence of thyroid disease and measurable
effects of thyroid function in relation to exposure to
perchlorate;
(2) ensure that the study is of sufficient scope and scale
to permit the making of meaningful conclusions of the measurable
public health threat associated with exposure to perchlorate,
especially the threat to sensitive subpopulations; and

[[Page 1441]]
117 STAT. 1441

(3) examine thyroid function, including measurements of
urinary iodine and thyroid hormone levels, in a sufficient
number of pregnant women, neonates, and infants exposed to
perchlorate in drinking water and match measurements of
perchlorate levels in the drinking water of each study
participant in order to permit the development of meaningful
conclusions on the public health threat to individuals exposed
to perchlorate.

(b) Review of Effects of Perchlorate on Endocrine System.--The
Secretary shall provide for an independent review of the effects of
perchlorate on the human endocrine system. The entity conducting the
review shall assess--
(1) available data on human exposure to perchlorate,
including clinical data and data on exposure of sensitive
subpopulations, and the levels at which health effects were
observed; and
(2) available data on other substances that have endocrine
effects similar to perchlorate to which the public is frequently
exposed.

(c) Performance of Study and Review.--(1) The Secretary shall
provide for the performance of the study under subsection (a) through
the Centers for Disease Control and Prevention, the National Institutes
of Health, or another Federal entity with experience in environmental
toxicology selected by the Secretary.
(2) The Secretary shall provide for the performance of the review
under subsection (b) through the Centers for Disease Control and
Prevention, the National Institutes of Health, or another appropriate
Federal research entity with experience in human endocrinology selected
by the Secretary. The Secretary shall ensure that the panel conducting
the review is composed of individuals with expertise in human
endocrinology.
(d) Reporting Requirements.--Not [NOTE: Deadline.] later than June
1, 2005, the Federal entities conducting the study and review under this
section shall submit to the Secretary reports containing the results of
the study and review.

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

(a) Requirement for Review.--The Comptroller General shall conduct a
review of the Arctic Military Environmental Cooperation program,
including--
(1) the current and proposed technology development and
demonstration role of the program in United States
nonproliferation efforts; and
(2) the relationship of the program to the Cooperative
Threat Reduction Program specified in section 1501(b) of the
National Defense Authorization Act for Fiscal Year 1997 (Public
Law 104-201; 110 Stat. 2731; 50 U.S.C. 2362 note).

(b) Elements of Review.--The review shall include an assessment of
the following:
(1) Whether the conditions in the Western Pacific region
require an expansion of the Arctic Military Environmental
Cooperation program to include that region.
(2) The extent to which foreign countries, including Russia,
make financial contributions to the program.
(3) The extent to which the Cooperative Threat Reduction
Program and the G-8 Global Partnership Against the Spread

[[Page 1442]]
117 STAT. 1442

of Weapons and Materials of Mass Destruction Initiative use the
program.
(4) Whether the program is important to the disarmament and
nonproliferation functions of the Cooperative Threat Reduction
Program.
(5) Future-year funding and program plans of the Department
of Defense for the program.

(c) Report [NOTE: Deadline.]  on Review.--Not later than May 1,
2004, the Comptroller General shall submit to Congress a report
containing the results of the review.

Subtitle C--Workplace and Depot Issues

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

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

(b) Conforming Amendments.--Such section is further amended--
(1) by striking ``apply--'' and inserting ``apply to the
following contracts:'';
(2) by striking ``to a'' at the beginning of paragraphs (1),
(2), and (3) and inserting ``A'';
(3) by striking the semicolon at the end of paragraph (1)
and inserting a period; and
(4) by striking ``; or'' at the end of paragraph (2) and
inserting a period.

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

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

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

Section 2469 of title 10, United States Code, is amended--
(1) in subsection (b), by striking ``Subsection'' and
inserting ``Except as provided in subsection (c), subsection'';
(2) by redesignating subsection (c) as subsection (d); and
(3) by inserting after subsection (b) the following new
subsection (c):

``(c) Exception for Public-Private Partnerships.--The requirements
of subsection (a) may be waived in the case of a depot-level maintenance
and repair workload that is performed at a Center of Industrial and
Technical Excellence designated under

[[Page 1443]]
117 STAT. 1443

subsection (a) of section 2474 of this title by a public-private
partnership entered into under subsection (b) of such section consisting
of a depot-level activity and a private entity.''.

SEC. 334. [NOTE: 10 USC 2304.] RESOURCES-BASED SCHEDULES FOR
COMPLETION OF PUBLIC-PRIVATE COMPETITIONS FOR PERFORMANCE OF
DEPARTMENT OF DEFENSE FUNCTIONS.

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

SEC. 335. [NOTE: 10 USC 2461 note.] DELAYED IMPLEMENTATION OF REVISED
OFFICE OF MANAGEMENT AND BUDGET CIRCULAR A-76 BY DEPARTMENT
OF DEFENSE PENDING REPORT.

(a) Limitation Pending Report.--No studies or competitions may be
conducted under the policies and procedures contained in the revised
Office of Management and Budget Circular A-76 dated May 29, 2003 (68
Fed. Reg. 32134), relating to the possible contracting out of commercial
activities being performed, as of such date, by employees of the
Department of Defense, until the end of the 45-day period beginning on
the date on which the Secretary of Defense submits to Congress a report
on the effects of the revisions.
(b) Content of Report.--The report required by subsection (a) shall
contain, at a minimum, specific information regarding the following:
(1) The extent to which the revised circular will ensure
that employees of the Department of Defense have the opportunity
to compete to retain their jobs.
(2) The extent to which the revised circular will provide
appeal and protest rights to employees of the Department of
Defense.
(3) Identify safeguards in the revised circular to ensure
that all public-private competitions are fair, appropriate, and
comply with requirements of full and open competition.
(4) The plans of the Department to ensure an appropriate
phase-in period for the revised circular, as recommended by the
Commercial Activities Panel of the Government Accounting Office
in its April 2002 report to Congress, including recommendations
for any legislative changes that may be required to ensure a
smooth and efficient phase-in period.
(5) The plans of the Department to provide training to
employees of the Department of Defense regarding the revised
circular, including how the training will be funded, how

[[Page 1444]]
117 STAT. 1444

employees will be selected to receive the training, and the
number of employees likely to receive the training.
(6) The plans of the Department to collect and analyze data
on the costs and quality of work contracted out or retained in-
house as a result of a sourcing process conducted under the
revised circular.

SEC. 336. [NOTE: 10 USC 2461 note.] PILOT PROGRAM FOR BEST-VALUE
SOURCE SELECTION FOR PERFORMANCE OF INFORMATION TECHNOLOGY
SERVICES.

(a) Authority to Use Best-Value Criterion.--The Secretary of Defense
may carry out a pilot program for the procurement of information
technology services for the Department of Defense that uses a best-value
criterion in the selection of the source for the performance of the
information technology services.
(b) Required Examination Under Pilot Project.--Under the pilot
program, the Secretary of Defense shall modify the examination otherwise
required by section 2461(b)(3)(A) of title 10, United States Code, to be
an examination of the performance of an information technology services
function by Department of Defense civilian employees and by one or more
private contractors to demonstrate whether--
(1) a change to performance by the private sector will
result in the best value to the Government over the life of the
contract, as determined in accordance with the competition
requirements of Office of Management and Budget Circular A-76;
and
(2) certain benefits exist, in addition to price, that
warrant performance of the function by a private sector source
at a cost higher than that of performance by Department of
Defense civilian employees.

(c) Exemption for Pilot Program.--Section 2462(a) of title 10,
United States Code, does not apply to the procurement of information
technology services under the pilot program.
(d) Duration of Pilot Program.--(1) The authority to carry out the
pilot program begins on the date on which the Secretary of Defense
submits to Congress the report on the effect of the recent revisions to
Office of Management and Budget Circular A-76, as required by section
335 of this Act, and expires on September 30, 2008.
(2) The expiration of the pilot program shall not affect the
selection of the source for the performance of an information technology
services function for the Department of Defense for which the analysis
required by section 2461(b)(3) of title 10, United States Code, has been
commenced before the expiration date or for which a solicitation has
been issued before the expiration date.
(e) GAO Review.--Not [NOTE: Deadline.]  later than February 1,
2008, the Comptroller General shall submit to Congress a report
containing--
(1) a review of the pilot program to assess the extent to
which the pilot program is effective and is equitable for the
potential public sources and the potential private sources of
information technology services for the Department of Defense;
and
(2) any other conclusions of the Comptroller General
resulting from the review.

(f) Information Technology Service Defined.--In this section, the
term ``information technology service'' means any service

[[Page 1445]]
117 STAT. 1445

performed in the operation or maintenance of information technology (as
defined in section 11101 of title 40, United States Code) that is
necessary for or beneficial to the accomplishment of the authorized
functions of the Department of Defense (other than functions which the
Secretary of Defense determines must be performed by military or
Government personnel).

SEC. 337. [NOTE: 10 USC 113 note.] HIGH-PERFORMING ORGANIZATION
BUSINESS PROCESS REENGINEERING PILOT PROGRAM.

(a) Pilot Program.--The Secretary of Defense shall establish a pilot
program under which the Secretary concerned shall create, or continue
the implementation of, high-performing organizations through the conduct
of a Business Process Reengineering initiative at selected military
installations and facilities under the jurisdiction of the Secretary
concerned.
(b) Effect of Participation in Pilot Program.--(1) During the period
of an organization's participation in the pilot program, including the
periods referred to in paragraphs (2) and (3) of subsection (f), the
Secretary concerned may not require the organization to undergo any
Office of Management and Budget Circular A-76 competition or other
public-private competition involving any function of the organization
covered by the Business Process Reengineering initiative. The
organization may elect to undergo such a competition as part of the
initiative.
(2) Civilian employee or military personnel positions of the
participating organization that are part of the Business Process
Reengineering initiative shall be counted toward any numerical goals,
target, or quota that the Secretary concerned is required or requested
to meet during the term of the pilot program regarding the number of
positions to be covered by public-private competitions.
(c) Eligible Organizations.--Subject to subsection (d), the
Secretary concerned may select two types of organizations to participate
in the pilot program:
(1) Organizations that underwent a Business Process
Reengineering initiative within the preceding five years,
achieved major performance enhancements under the initiative,
and will be able to sustain previous or achieve new performance
goals through the continuation of its existing or completed
Business Process Reengineering plan.
(2) Organizations that have not undergone or have not
successfully completed a Business Process Reengineering
initiative, but which propose to achieve, and reasonably could
reach, enhanced performance goals through implementation of a
Business Process Reengineering initiative.

(d) Additional Eligibility Requirements.--(1) To be eligible for
selection to participate in the pilot program under subsection (c)(1),
an organization described in such subsection shall demonstrate, to the
satisfaction of the Secretary concerned, the completion of a total
organizational assessment that resulted in enhanced performance measures
at least comparable to those performance measures that might be achieved
through competitive sourcing.
(2) To be eligible for selection to participate in the pilot program
under subsection (c)(2), an organization described in such subsection
shall identify, to the satisfaction of the Secretary concerned--
(A) functions, processes, and measures to be studied under
the Business Process Reengineering initiative;

[[Page 1446]]
117 STAT. 1446

(B) adequate resources to carry out the Business Process
Reengineering initiative; and
(C) labor-management agreements in place to ensure effective
implementation of the Business Process Reengineering initiative.

(e) Limitation on Number of Participants.--Total participants in the
pilot program is limited to eight military installations and facilities,
with some participants to be drawn from organizations described in
subsection (c)(1) and some participants to be drawn from organizations
described in subsection (c)(2).
(f) Implementation and Duration.--(1) The implementation and
management of a Business Process Reengineering initiative under the
pilot program shall be the responsibility of the commander of the
military installation or facility at which the Business Process
Reengineering initiative is carried out.
(2) An organization selected to participate in the pilot program
shall be given a reasonable initial period, to be determined by the
Secretary concerned, in which the organization must implement the
Business Process Reengineering initiative. At the end of this period,
the Secretary concerned shall determine whether the organization has
achieved initial progress toward designation as a high-performing
organization. In the absence of such progress, the Secretary concerned
shall terminate the organization's participation in the pilot program.
(3) If an organization successfully completes implementation of the
Business Process Reengineering initiative under paragraph (2), the
Secretary concerned shall designate the organization as a high-
performing organization and grant the organization an additional five-
year period in which to achieve projected or planned efficiencies and
savings under the pilot program.
(g) Reviews and Reports.--The Secretary concerned shall conduct
annual performance reviews of the participating organizations or
functions under the jurisdiction of the Secretary concerned. Reviews and
reports shall evaluate organizational performance measures or functional
performance measures and determine whether organizations are performing
satisfactorily for purposes of continuing participation in the pilot
program.
(h) Performance Measures.--Performance measures utilized in the
pilot program should include the following, which shall be measured
against organizational baselines determined before participation in the
pilot program:
(1) Costs, savings, and overall financial performance of the
organization.
(2) Organic knowledge, skills or expertise.
(3) Efficiency and effectiveness of key functions or
processes.
(4) Efficiency and effectiveness of the overall
organization.
(5) General customer satisfaction.

(i) Definitions.--In this section
(1) The term ``Business Process Reengineering'' refers to an
organization's complete and thorough analysis and reengineering
of mission and support functions and processes to achieve
improvements in performance, including a fundamental reshaping
of the way work is done to better support an organization's
mission and reduce costs.

[[Page 1447]]
117 STAT. 1447

(2) The term ``high-performing organization'' means an
organization whose performance exceeds that of comparable
providers, whether public or private.
(3) The term ``Secretary concerned'' means the Secretary of
a military department and the Secretary of Defense, with respect
to matters concerning the Defense Agencies.

SEC. 338. [NOTE: 10 USC 5103 note.] NAVAL AVIATION DEPOTS MULTI-TRADES
DEMONSTRATION PROJECT.

(a) Demonstration Project Required.--In accordance with section 4703
of title 5, United States Code, the Secretary of the Navy shall carry
out a demonstration project under which three Naval Aviation Depots are
given the flexibility to promote by one grade level workers who are
certified at the journey level as able to perform multiple trades.
(b) Selection Requirements.--As a condition on eligibility for
selection to participate in the demonstration project, the head of a
Naval Aviation Depot shall submit to the Secretary a business case
analysis and concept plan--
(1) that, on the basis of the results of analysis of work
processes, demonstrate that process improvements would result
from the trade combinations proposed to be implemented under the
demonstration project; and
(2) that describes the improvements in cost, quality, or
schedule of work that are anticipated to result from the
participation in the demonstration project.

(c) Participating Workers.--(1) Actual worker participation in the
demonstration project shall be determined through competitive selection.
Not more than 15 percent of the wage grade journeyman at a demonstration
project location may be selected to participate.
(2) Job descriptions and competency-based training plans must be
developed for each worker while in training under the demonstration
project and once certified as a multi-trade worker. A certified multi-
trade worker who receives a pay grade promotion under the demonstration
project must use each new skill during at least 25 percent of the
worker's work year.
(d) Funding Source.--Appropriations for operation and maintenance of
the Naval Aviation Depots selected to participate in the demonstration
project shall be used as the source of funds to carry out the
demonstration project, including the source of funds for pay increases
made under the project.
(e) Duration.--The demonstration project shall be conducted during
fiscal years 2004 through 2006.
(f) Report.--Not [NOTE: Deadline.]  later than January 15, 2007,
the Secretary shall submit a report to Congress describing the results
of the demonstration project.

(g) GAO Evaluation.--The Secretary shall transmit a copy of the
report to the Comptroller General. Within 90 days after receiving the
report, the Comptroller General shall submit to Congress an evaluation
of the report.

[[Page 1448]]
117 STAT. 1448

Subtitle D--Other Matters

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

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

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

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

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

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

SEC. 344. DEPARTMENT OF DEFENSE TELECOMMUNICATIONS BENEFIT.

(a) Provision of Prepaid Phone Cards.--As soon as possible after the
date of the enactment of this Act, the Secretary of Defense shall
provide, wherever practicable, prepaid phone cards, or an equivalent
telecommunications benefit which includes access to telephone service,
to members of the Armed Forces stationed outside the United States who
(as determined by the Secretary) are eligible for combat zone tax
exclusion benefits due to their service in direct support of Operation
Enduring Freedom and Operation Iraqi Freedom to enable those members to
make telephone calls without cost to the member.
(b) Monthly Benefit.--The value of the benefit provided under
subsection (a) to any member in any month, to the extent the

[[Page 1449]]
117 STAT. 1449

benefit is provided from amounts available to the Department of Defense,
may not exceed--
(1) $40; or
(2) 120 calling minutes, if the cost to the Department of
Defense of providing such number of calling minutes is less than
the amount specified in paragraph (1).

(c) End of Program.--The program established by subsection (a) shall
terminate on September 30, 2004.
(d) Funding.--(1)(A) In carrying out the program under this section,
the Secretary shall maximize the use of existing Department of Defense
telecommunications programs and capabilities, free or reduced-cost
services of private sector entities, and programs to enhance morale and
welfare.
(B) The Secretary may not award a contract to a commercial firm for
the purposes of subparagraph (A) other than through the use of
competitive procedures.
(2) The Secretary may accept gifts and donations in order to defray
the costs of the program under this section. Such gifts and donations
may be accepted from--
(A) any foreign government;
(B) any foundation or other charitable organization,
including any that is organized or operates under the laws of a
foreign country; and
(C) any source in the private sector of the United States or
a foreign country.

(e) Deployment of Additional Telephone Equipment.--If the Secretary
of Defense determines that, in order to implement this section as
quickly as practicable, it is necessary to provide additional telephones
in any area to facilitate telephone calling for which benefits are
provided under this section, the Secretary may, consistent with the
availability of resources, award competitively bid contracts to one or
more commercial entities for the provision and installation of
telephones in that area.
(f) No Compromise of Military Mission.--The Secretary of Defense
should not take any action under this section that would compromise the
military objectives or mission of the Department of Defense.

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

Not [NOTE: Deadline.] later than May 1, 2004, the Secretary of
Defense shall submit to the congressional defense committees an
assessment, conducted by an entity outside of the Department of Defense,
of the material condition of the fleet of KC-135 aerial refueling
aircraft of the Air Force. The assessment shall include the following:
(1) Trend analysis for operational readiness for KC-135E and
KC-135R aircraft from fiscal year 1996 through fiscal year 2003.
(2) Trend analysis for the number of manhours of
organizational-level and depot-level maintenance required for
KC-135E and KC-135R aircraft from fiscal year 1996 through
fiscal year 2003, setting forth separately the manhours required
for control and treatment of corrosion.
(3) The number of KC-135E and KC-135R aircraft grounded due
to corrosion for each year, and the length of time each aircraft
was grounded pending corrosion repair, based

[[Page 1450]]
117 STAT. 1450

on maintenance conducted from fiscal year 1996 through fiscal
year 2003.
(4) An itemization of improved corrosion repair processes
for KC-135E and KC-135R aircraft used between fiscal year 1996
and fiscal year 2003 which resulted in a decrease in the number
of manhours required for control and treatment of corrosion.
(5) An analysis of the relationship between manhours for
corrosion repair as set forth under paragraph (2) and the
processes set forth under paragraph (4).
(6) An analysis of major structural repairs required due to
corrosion for KC-135E and KC-135R aircraft annually from fiscal
year 1996 through fiscal year 2003.

TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent active duty end strength minimum levels.
Sec. 403. Personnel strength authorization and accounting process.

Subtitle B--Reserve Forces

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

Subtitle C--Authorizations of Appropriations

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

Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE [NOTE: 10 USC 115 note.] FORCES.

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

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

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

SEC. 403. PERSONNEL STRENGTH AUTHORIZATION AND ACCOUNTING PROCESS.

(a) Quarterly Strength Levels.--Section 115 of title 10, United
States Code, is amended--

[[Page 1451]]
117 STAT. 1451

(1) by redesignating subsections (c), (e), and (g) as
subsections (e), (g), and (c), respectively, and by
transferring--
(A) subsection (e), as so redesignated, so as to
appear after subsection (d);
(B) subsection (g), as so redesignated, so as to
appear after subsection (f); and
(C) subsection (c), as so redesignated, so as to
appear after subsection (b);
(2) by transferring subsection (d) to the end of such
section and redesignating that subsection as subsection (h); and
(3) by inserting after subsection (c), as redesignated and
transferred by paragraph (1), the following new subsection (d):

``(d) End-of-Quarter Strength Levels.--(1) The Secretary of Defense
shall prescribe and include in the budget justification documents
submitted to Congress in support of the President's budget for the
Department of Defense for any fiscal year the Secretary's proposed end-
of-quarter strengths for each of the first three quarters of the fiscal
year for which the budget is submitted, in addition to the Secretary's
proposed fiscal-year end-strengths for that fiscal year. Such end-of-
quarter strengths shall be submitted for each category of personnel for
which end strengths are required to be authorized by law under
subsection (a) or (c). The Secretary shall ensure that resources are
provided in the budget at a level sufficient to support the end-of-
quarter and fiscal-year end-strengths as submitted.
``(2)(A) After annual end-strength levels required by subsections
(a) and (c) are authorized by law for a fiscal year, the Secretary of
Defense shall promptly prescribe end-of-quarter strength levels for the
first three quarters of that fiscal year applicable to each such end-
strength level. Such end-of-quarter strength levels shall be established
for any fiscal year as levels to be achieved in meeting each of those
annual end-strength levels authorized by law in accordance with
subsection (a) (as such levels may be adjusted pursuant to subsection
(e)) and subsection (c).
``(B) At least annually, the Secretary of Defense shall establish
for each of the armed forces (other than the Coast Guard) the maximum
permissible variance of actual strength for an armed force at the end of
any given quarter from the end-of-quarter strength established pursuant
to subparagraph (A). Such variance shall be such that it promotes the
maintaining of the strength necessary to achieve the end-strength levels
authorized in accordance with subsection (a) (as adjusted pursuant to
subsection (e)) and subsection (c).
``(3) Whenever the Secretary establishes an end-of-quarter strength
level under subparagraph (A) of paragraph (2), or modifies a strength
level under the authority provided in subparagraph (B) of paragraph (2),
the Secretary shall notify the Committee on Armed Services of the Senate
and the Committee on Armed Services of the House of Representatives of
that strength level or of that modification, as the case may be.''.
(b) Conforming and Stylistic Amendments.--Such section is further
amended--
(1) in subsection (a), by inserting ``Active-Duty and
Selected Reserve End Strengths To Be Authorized by Law.--''
after ``(a)'';
(2) in subsection (b), by inserting ``Limitation
on Appropriations for Military Personnel.--'' after ``(b)'';

[[Page 1452]]
117 STAT. 1452

(3) in subsection (c), as redesignated and transferred by
subsection (a)(1), by inserting ``Military Technician (Dual
Status) End Strengths To Be Authorized by Law.--'' after
``(c)'';
(4) in subsection (e), as redesignated and transferred by
subsection (a)(1), by inserting ``Authority for Secretary of
Defense Variances for Active-Duty and Selected Reserve End
Strengths.--'' after ``(e)'';
(5) in subsection (f)--
(A) by inserting ``Authority for Service Secretary
Variances for Active-Duty End Strengths.--'' after
``(f)''; and
(B) in paragraph (2), by striking ``subsection
(c)(1)'' and inserting ``subsection (e)(1)'';
(6) in subsection (g), as redesignated and transferred by
subsection (a)(1), by inserting ``Adjustment When Coast Guard is
Operating as a Service in the Navy.--'' after ``(g)''; and
(7) in subsection (h), as redesignated and transferred by
subsection (a)(2), by inserting ``Certain Active-Duty Personnel
Excluded From Counting for Active-Duty End Strengths.--'' after
``(h)''.

(c) Cross Reference Amendments.--Section 10216 of such title is
amended by striking ``section 115(g)'' each place it appears and
inserting ``section 115(c)''.
(d) Effective [NOTE: 10 USC 115 note.]  Date.--Subsection (d) of
section 115 of title 10, United States Code, as added by subsection
(a)(3), shall apply with respect to the budget request for fiscal year
2005 and thereafter.

Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED [NOTE: 10 USC 12001 note.]
RESERVE.

(a) In General.--The Armed Forces are authorized strengths for
Selected Reserve personnel of the reserve components as of September 30,
2004, as follows:
(1) The Army National Guard of the United States, 350,000.
(2) The Army Reserve, 205,000.
(3) The Naval Reserve, 85,900.
(4) The Marine Corps Reserve, 39,600.
(5) The Air National Guard of the United States, 107,030.
(6) The Air Force Reserve, 75,800.
(7) The Coast Guard Reserve, 10,000.

(b) Adjustments.--The end strengths prescribed by subsection (a) for
the Selected Reserve of any reserve component shall be proportionately
reduced by--
(1) the total authorized strength of units organized to
serve as units of the Selected Reserve of such component which
are on active duty (other than for training) at the end of the
fiscal year; and
(2) the total number of individual members not in units
organized to serve as units of the Selected Reserve of such
component who are on active duty (other than for training or for
unsatisfactory participation in training) without their consent
at the end of the fiscal year.

[[Page 1453]]
117 STAT. 1453

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

SEC. 412. [NOTE: 10 USC 12001 note.] END STRENGTHS FOR RESERVES ON
ACTIVE DUTY IN SUPPORT OF THE RESERVES.

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

SEC. 413. [NOTE: 10 USC 115 note.] END STRENGTHS FOR MILITARY
TECHNICIANS (DUAL STATUS).

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

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

(a) Limitations.--(1) Within the limitation provided in section
10217(c)(2) of title 10, United States Code, the number of non-dual
status technicians employed by the National Guard as of September 30,
2004, may not exceed the following:
(A) For the Army National Guard of the United States, 1,600.
(B) For the Air National Guard of the United States, 350.

(2) The number of non-dual status technicians employed by the Army
Reserve as of September 30, 2004, may not exceed 910.
(3) The number of non-dual status technicians employed by the Air
Force Reserve as of September 30, 2004, may not exceed 90.
(b) Non-Dual Status Technicians Defined.--In this section, the term
``non-dual status technician'' has the meaning given that term in
section 10217(a) of title 10, United States Code.

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

Section 10217(c) of title 10, United States Code, is amended by
striking ``and Air Force Reserve may not exceed 175'' and inserting
``may not exceed 595 and by the Air Force Reserve may not exceed 90''.

[[Page 1454]]
117 STAT. 1454

Subtitle C--Authorizations of Appropriations

SEC. 421. MILITARY PERSONNEL.

There is hereby authorized to be appropriated to the Department of
Defense for military personnel for fiscal year 2004 a total of
$98,908,400,000. The authorization in the preceding sentence supersedes
any other authorization of appropriations (definite or indefinite) for
such purpose for fiscal year 2004.

SEC. 422. ARMED FORCES RETIREMENT HOME.

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

TITLE V--MILITARY PERSONNEL POLICY

Subtitle A--Officer Personnel Matters

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

Subtitle B--Reserve Component Matters

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

Subtitle C--ROTC and Military Service Academies

Sec. 521. Expanded educational assistance authority for cadets and
midshipmen receiving ROTC scholarships.
Sec. 522. Increase in allocation of scholarships under Army Reserve ROTC
scholarship program to students at military junior colleges.
Sec. 523. Authority for nonscholarship senior ROTC sophomores to
voluntarily contract for and receive subsistence allowance.

[[Page 1455]]
117 STAT. 1455

Sec. 524. Appointments to military service academies from nominations
made by delegates from Guam, Virgin Islands, and American
Samoa.
Sec. 525. Readmission to service academies of certain former cadets and
midshipmen.
Sec. 526. Defense task force on sexual harassment and violence at the
military service academies.
Sec. 527. Actions to address sexual harassment and violence at the
service academies.
Sec. 528. Study and report related to permanent professors at the United
States Air Force Academy.
Sec. 529. Dean of the faculty of the United States Air Force Academy.

Subtitle D--Other Military Education and Training Matters

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

Subtitle E--Administrative Matters

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

Subtitle F--Military Justice Matters

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

Subtitle G--Benefits

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

Subtitle H--Domestic Violence

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

Subtitle I--Other Matters

Sec. 581. Recognition of military families.

[[Page 1456]]
117 STAT. 1456

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

Subtitle A--Officer Personnel Matters

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

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

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

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

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

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

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

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

[[Page 1457]]
117 STAT. 1457

(c) Authorized Strength for General and Flag Officers on Active
Duty.--Section 526(b) of such title is amended by striking paragraph
(3).

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

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

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

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

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

[[Page 1458]]
117 STAT. 1458

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

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

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

``(a) When none of the individuals serving in a position specified
in subsection (b) is an officer of the armed forces, an officer of the
armed forces assigned to the position of Associate Director of Central
Intelligence for Military Support, while serving in that position, shall
not be counted against the numbers and percentages of officers of the
grade of that officer authorized for that officer's armed force.
``(b) The positions referred to in subsection (a) are the following:
``(1) Director of Central Intelligence.
``(2) Deputy Director of Central Intelligence.
``(3) Deputy Director of Central Intelligence for Community
Management.''.

(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new item:

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

SEC. 508. [NOTE: 10 USC 5033 note.] REAPPOINTMENT OF INCUMBENT CHIEF
OF NAVAL OPERATIONS.

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

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

(a) OSD Approval Required.--Section 777(b) of title 10, United
States Code, is amended--
(1) by striking ``and'' at the end of paragraph (1);
(2) by striking the period at the end of paragraph (2) and
inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(3) in the case of an officer selected for promotion to a
grade above colonel or, in the case of an officer of the Navy, a
grade above captain--
``(A) authority for that officer to wear the
insignia of that grade has been approved by the
Secretary of Defense (or a civilian officer within the
Office of the Secretary of Defense whose appointment was
made with the advice and consent of the Senate and to
whom the Secretary delegates such approval authority);
and
``(B) [NOTE: Notification.] the Secretary of
Defense has submitted to Congress a written notification
of the intent to authorize the

[[Page 1459]]
117 STAT. 1459

officer to wear the insignia for that grade and a period
of 30 days has elapsed after the date of the
notification.''.

(b) Effective [NOTE: 10 USC 777 note.] Date.--Paragraph (3) of
subsection (b) of section 777 of title 10, United States Code, as added
by subsection (a), shall not apply with respect to the wearing by an
officer of insignia for a grade that was authorized under that section
before the date of the enactment of this Act.

Subtitle B--Reserve Component Matters

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

(a) Repeal of Requirement for Use of Selection Boards.--Section
14701 of title 10, United States Code, is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``by a selection
board convened under section 14101(b) of this title''
and inserting ``under regulations prescribed by the
Secretary of Defense''; and
(B) in paragraph (6), by striking ``as a result of
the convening of a selection board under section
14101(b) of this title'' and inserting ``under
regulations prescribed under paragraph (1)'';
(2) by striking subsections (b) and (c); and
(3) by redesignating subsection (d) as subsection (b).

(b) Conforming Amendments.--(1) Section 14101(b) of such title is
amended--
(A) by striking ``Continuation Boards'' and inserting
``Selective Early Separation Boards'';
(B) by striking paragraph (1);
(C) by redesignating paragraphs (2) and (3) as paragraphs
(1) and (2), respectively; and
(D) by striking the last sentence.

(2) Section 14102(a) of such title is amended by striking
``Continuation boards'' and inserting ``Selection boards convened under
section 14101(b) of this title''.
(3) Section 14705(b)(1) of such title is amended by striking
``continuation board'' and inserting ``selection board''.

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

(a) Promotion Consideration While on Active-Duty List.--(1)
Subsection (d) of section 14317 of title 10, United States Code, is
amended by striking ``If a reserve officer'' and inserting ``Except as
provided in subsection (e), if a reserve officer''.
(2) Subsection (e) of such section is amended to read as follows:
``(e) Officers Ordered to Active Duty in Time of War or National
Emergency.--(1) A reserve officer who is not on the active-duty list and
who is ordered to active duty in time of war or national emergency may,
if eligible, be considered for promotion--
``(A) by a mandatory promotion board convened under section
14101(a) of this title or a special selection board convened
under section 14502 of this title; or

[[Page 1460]]
117 STAT. 1460

``(B) in the case of an officer who has been ordered to or
is serving on active duty in support of a contingency operation,
by a vacancy promotion board convened under section 14101(a) of
this title.

``(2) An officer may not be considered for promotion under this
subsection after the end of the two-year period beginning on the date on
which the officer is ordered to active duty.
``(3) An officer may not be considered for promotion under this
subsection during a period when the operation of this section has been
suspended by the President under section 123(a) of this title.
``(4) Consideration of an officer for promotion under this
subsection shall be under regulations prescribed by the Secretary of the
military department concerned.''.
(b) Conforming Amendment.--Section 14315(a)(1) of such title is
amended by striking ``as determined by the Secretary concerned, is
available'' and inserting ``under regulations prescribed by the
Secretary concerned, has been recommended''.

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

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

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

(a) Authority.--Section 107(a)(2) of title 32, United States Code,
is amended--
(1) by striking ``officers'' and inserting ``members'';
(2) by striking ``Army General Staff'' and inserting ``Army
Staff''; and
(3) by striking ``the National Guard Association of the
United States'' and inserting ``the Enlisted Association of the
National Guard of the United States, the National Guard
Association of the United States,''.

(b) Effective [NOTE: 32 USC 107 note.] Date.--The amendments made
by subsection (a) shall not apply with respect to funds appropriated for
a fiscal year before fiscal year 2004.

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

Section 12304 of title 10, United States Code, is amended--
(1) in subsection (b)(2), by striking ``catastrophic'' and
inserting ``significant''; and
(2) by adding at the end of subsection (c) the following new
paragraph:

``(3) No unit or member of a reserve component may be ordered to
active duty under this section to provide assistance referred to in
subsection (b) unless the President determines that the

[[Page 1461]]
117 STAT. 1461

requirements for responding to an emergency referred to in that
subsection have exceeded, or will exceed, the response capabilities of
local, State, and Federal civilian agencies.''.

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

(a) Continuation in State Status.--Subsection (a) of section 325 of
title 32, United States Code, is amended--
(1) by striking ``(a) Each'' and inserting ``(a) Relief
Required.--(1) Except as provided in paragraph (2), each''; and
(2) by adding at the end the following new paragraph:

``(2) An officer of the Army National Guard of the United States or
the Air National Guard of the United States is not relieved from duty in
the National Guard of his State or Territory, or of Puerto Rico or the
District of Columbia, under paragraph (1) while serving on active duty
in command of a National Guard unit if--
``(A) the President authorizes such service in both duty
statuses; and
``(B) the Governor of his State or Territory or Puerto Rico,
or the commanding general of the District of Columbia National
Guard, as the case may be, consents to such service in both duty
statuses.''.

(b) Format Amendment.--Subsection (b) of such section is amended by
inserting ``Return to State Status.--'' after ``(b)''.

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

(a) Presidential [NOTE: Deadline.] Report.--Not later than six
months after the date of the enactment of this Act, the President shall
transmit to Congress a report on the mobilization during fiscal years
2002 and 2003 of members of the reserve components. The report shall
include, for each of those fiscal years, the following:
(1) The number of members of the reserve components who were
called or ordered to active duty under a provision of law
specified in section 101(a)(13)(B) of title 10, United States
Code.
(2) Of the members counted under paragraph (1), the number
who, under a call or order to active duty referred to in
paragraph (1), served on active duty for one year or more
(including any extension on active duty) and, for those members,
specification of their military specialties and the number of
such members in each such specialty.
(3) Of the members counted under paragraph (1), the number
who, under a provision of law referred to in paragraph (1), were
called or ordered to active duty more than once and, for those
members, specification of their military specialties and the
number of such members in each such specialty.

(b) Assessment [NOTE: Deadline. 10 USC 113 note.] by Secretary of
Defense.--Not later than one year after the date of the enactment of
this Act, the Secretary of Defense shall submit to the Committee on
Armed Services of the Senate and the Committee on Armed Services of the
House of Representatives the following:
(1) A description of the effects on reserve component
recruitment and retention that have resulted from--

[[Page 1462]]
117 STAT. 1462

(A) the calls and orders of Reserves to active duty
during fiscal years 2002 and 2003; and
(B) the tempo of the service of the Reserves on the
active duty to which called or ordered.
(2) A description of changes in the Armed Forces, including
any changes in the allocation of roles and missions, in force
structure, and in capabilities between the active components and
the reserve components of the Armed Forces, that are envisioned
by the Secretary of Defense on the basis of--
(A) the effects discussed under paragraph (1);
(B) the lessons learned from calling and ordering
the reserve components to active duty during fiscal
years 2002 and 2003; or
(C) future military force structure and capabilities
requirements.
(3) On the basis of the lessons learned as a result of
calling and ordering members of the reserve components to active
duty during fiscal years 2002 and 2003, an assessment of the
process for calling and ordering such members to active duty,
preparing such members for active duty, processing such members
into the force upon entry onto active duty, and deploying such
members, including an assessment of the adequacy of the alert
and notification process from the perspectives of individual
members, of reserve component units, and of employers of such
members.

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

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

Subtitle C--ROTC and Military Service Academies

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

(a) Financial Assistance Program for Service on Active Duty.--
Section 2107(c) of title 10, United States Code, is amended by adding at
the end the following new paragraphs:
``(3) In the case of a cadet or midshipman eligible to receive
financial assistance under paragraph (1) or (2), the Secretary of the
military department concerned may, in lieu of all or part of the
financial assistance described in paragraph (1), provide financial
assistance in the form of room and board expenses for the cadet

[[Page 1463]]
117 STAT. 1463

or midshipman and other expenses required by the educational
institution.
``(4) The total amount of financial assistance, including the
payment of room and board and other educational expenses, provided to a
cadet or midshipman in an academic year under this subsection may not
exceed an amount equal to the amount that could be provided as financial
assistance for such cadet or midshipman under paragraph (1) or (2), or
another amount determined by the Secretary concerned, without regard to
whether room and board and other educational expenses for such cadet or
midshipman are paid under paragraph (3).''.
(b) Financial Assistance Program for Service in Troop Program
Units.--Section 2107a(c) of such title is amended--
(1) by inserting ``(1)'' after ``(c)''; and
(2) by adding at the end the following new paragraphs:

``(2) In the case of a cadet eligible to receive financial
assistance under paragraph (1), the Secretary of the military department
concerned may, in lieu of all or part of the financial assistance
described in paragraph (1), provide financial assistance in the form of
room and board expenses for such cadet and other expenses required by
the educational institution.
``(3) The total amount of financial assistance, including the
payment of room and board and any other educational expenses, provided
to a cadet in an academic year under this subsection may not exceed an
amount equal to the amount that could be provided as financial
assistance for such cadet under paragraph (1), or another amount
determined by the Secretary of the Army, without regard to whether the
room and board and other educational expenses for such cadet are paid
under paragraph (2).''.
(c) Effective [NOTE: Applicability. 10 USC 2107 note.] Date.--The
amendments made by this section shall apply to payment of expenses of
cadets and midshipmen of the Senior Reserve Officers' Training Corps
program that are due after the date of the enactment of this Act.

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

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

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

(a) Authority for Allowance.--Section 209 of title 37, United States
Code, is amended--
(1) by redesignating subsections (c) and (d) as subsections
(d) and (e), respectively; and
(2) by inserting after subsection (b) the following new
subsection (c):

``(c) Nonscholarship Senior ROTC Members Not in Advanced Training.--
A member of the Selected Reserve Officers' Training Corps who has
entered into an agreement under section 2103a of title 10 is entitled to
a monthly subsistence allowance at a rate prescribed under subsection
(a). That allowance may be paid to the member by reason of such
agreement for a maximum of 20 months.''.

[[Page 1464]]
117 STAT. 1464

(b) Authority to Accept Enrollment.--(1) Chapter 103 of title 10,
United States Code, is amended by inserting after section 2103 the
following new section:

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

``(a) Authority.--A member of the program who has completed
successfully the first year of a four-year Senior Reserve Officers'
Training Corps course and who is not eligible for advanced training
under section 2104 of this title and is not a cadet or midshipman
appointed under section 2107 of this title may--
``(1) contract with the Secretary of the military department
concerned, or the Secretary's designated representative, to
serve for the period required by the program; and
``(2) agree in writing to accept an appointment, if offered,
as a commissioned officer in the Army, Navy, Air Force, or
Marine Corps, as the case may be, and to serve in the armed
forces for the period prescribed by the Secretary.

``(b) Eligibilty Requirements.--A member of the program may enter
into a contract and agreement under this section (and receive a
subsistence allowance under section 209(c) of title 37) only if the
person--
``(1) is a citizen of the United States;
``(2) enlists in an armed force under the jurisdiction of
the Secretary of the military department concerned for the
period prescribed by the Secretary; and
``(3) executes a certificate of loyalty in such form as the
Secretary of Defense prescribes or take a loyalty oath as
prescribed by the Secretary.

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

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

(c) [NOTE: 10 USC 2103a note.] Effective Date.--The amendments
made by subsections (a) and (b) shall take effect on January 1, 2004.

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

(a) United States Military Academy.--Section 4342(a) of title 10,
United States Code, is amended--
(1) in paragraphs (6) and (8), by striking ``Two'' and
inserting ``Three''; and
(2) in paragraph (9), by striking ``One'' and inserting
``Two''.

(b) United States Naval Academy.--Section 6954(a) of such title is
amended--
(1) in paragraphs (6) and (8), by striking ``Two'' and
inserting ``Three''; and
(2) in paragraph (9), by striking ``One'' and inserting
``Two''.

(c) United States Air Force Academy.--Section 9342(a) of such title
is amended--

[[Page 1465]]
117 STAT. 1465

(1) in paragraphs (6) and (8), by striking ``Two'' and
inserting ``Three''; and
(2) in paragraph (9), by striking ``One'' and inserting
``Two''.

(d) [NOTE: 10 USC 4342 note.] Effective Date.--The amendments made
by this section shall apply with respect to the nomination of candidates
for appointment to the United States Military Academy, the United States
Naval Academy, and the United States Air Force Academy for classes
entering those academies after the date of the enactment of this Act.

SEC. 525. [NOTE: 10 USC 4351 note.] READMISSION TO SERVICE ACADEMIES
OF CERTAIN FORMER CADETS AND MIDSHIPMEN.

(a) Inspector General Report as Basis for Readmission.--(1) When a
formal report by an Inspector General within the Department of Defense
concerning the circumstances of the separation of a cadet or midshipman
from one of the service academies contains a specific finding specified
in paragraph (2), the Secretary of the military department concerned may
use that report as the sole basis for readmission of the former cadet or
midshipman to the respective service academy.
(2) A finding specified in this paragraph is a finding that
substantiates that a former service academy cadet or midshipman, while
attending the service academy--
(A) received administrative or punitive action or
nonjudicial punishment as a result of reprisal;
(B) resigned in lieu of disciplinary, administrative, or
other action that the formal report concludes constituted a
threat of reprisal; or
(C) otherwise suffered an injustice that contributed to the
resignation of the cadet or midshipman.

(b) Readmission.--In the case of a formal report by an Inspector
General described in subsection (a), the Secretary concerned shall offer
the former cadet or midshipman an opportunity for readmission to the
service academy from which the former cadet or midshipman resigned, if
the former cadet or midshipman is otherwise eligible for such
readmission.
(c) Applications for Readmission.--A former cadet or midshipman
described in a report referred to in subsection (a) may apply for
readmission to the service academy on the basis of that report and shall
not be required to submit the request for readmission through a board
for the correction of military records.
(d) Regulations to Minimize Adverse Impact Upon Readmission.--The
Secretary of each military department shall prescribe regulations for
the readmission of a former cadet or midshipman described in subsection
(a), with the goal, to the maximum extent practicable, of readmitting
the former cadet or midshipman at no loss of the academic or military
status held by the former cadet at the time of resignation.
(e) Construction With Other Remedies.--This section does not preempt
or supersede any other remedy that may be available to a former cadet or
midshipman.
(f) Service Academies.--In this section, the term ``service
academy'' means the following:
(1) The United States Military Academy.
(2) The United States Naval Academy.
(3) The United States Air Force Academy.

[[Page 1466]]
117 STAT. 1466

SEC. 526. [NOTE: 10 USC 4331 note.] DEFENSE TASK FORCE ON SEXUAL
HARASSMENT AND VIOLENCE AT THE MILITARY SERVICE ACADEMIES.

(a) Establishment.--The Secretary of Defense shall establish a
Department of Defense task force to examine matters relating to sexual
harassment and violence at the United States Military Academy and the
United States Naval Academy.
(b) Recommendations.--Not [NOTE: Deadline. Reports.] later than 12
months after the date on which all members of the task force have been
appointed, the task force shall submit to the Secretary of Defense a
report recommending ways by which the Department of Defense and the
Department of the Army and the Department of the Navy may more
effectively address matters relating to sexual harassment and violence
at the United States Military Academy and the United States Naval
Academy, respectively. The report shall include an assessment of, and
recommendations (including any recommended changes in law) for measures
to improve, with respect to sexual harassment and violence at those
academies, the following:
(1) Victims' safety programs.
(2) Offender accountability.
(3) Effective prevention of sexual harassment and violence.
(4) Collaboration among military organizations with
responsibility or jurisdiction with respect to sexual harassment
and violence.
(5) Coordination between military and civilian communities,
including local support organizations, with respect to sexual
harassment and violence.
(6) Coordination between military and civilian communities,
including civilian law enforcement relating to acts of sexual
harassment and violence.
(7) Data collection and case management and tracking.
(8) Curricula and training, including standard training
programs for cadets at the United States Military Academy and
midshipmen at the United States Naval Academy and for permanent
personnel assigned to those academies.
(9) Responses to sexual harassment and violence at those
academies, including standard guidelines.
(10) Other issues identified by the task force relating to
sexual harassment and violence at those academies.

(c) Methodology.--The task force shall consider the findings and
recommendations of previous reviews and investigations of sexual
harassment and violence conducted for those academies as one of the
bases for its assessment.
(d) Report.--(1) The task force shall submit to the Secretary of
Defense and the Secretaries of the Army and the Navy a report on the
activities of the task force and on the activities of the United States
Military Academy and the United States Naval Academy to respond to
sexual harassment and violence at those academies.
(2) The report shall include the following:
(A) Any barriers to implementation of improvements as a
result of those efforts.
(B) Other areas of concern not previously addressed in prior
reports.
(C) The findings and conclusions of the task force.
(D) Any recommendations for changes to policy and law as the
task force considers appropriate, including whether cases of
sexual assault at those academies should be included in

[[Page 1467]]
117 STAT. 1467

the Department of Defense database known as the Defense
Incident-Based Reporting System.

(3) Within 90 days after receipt of the report under paragraph (1)
the Secretary of Defense shall submit the report, together with the
Secretary's evaluation of the report, to the Committees on Armed
Services of the Senate and House of Representatives.
(e) Report on Air Force Academy.--Simultaneously with the submission
of the report under subsection (d)(3), the Secretary of Defense, in
coordination with the Secretary of the Air Force, shall submit to the
committees specified in that subsection the Secretary's assessment of
the effectiveness of corrective actions being taken at the United States
Air Force Academy as a result of various investigations conducted at
that Academy into matters involving sexual assault and harassment.
(f) Composition.--(1) The task force shall consist of not more than
14 members, to be appointed by the Secretary of Defense. Members shall
be appointed from each of the Army, Navy, Air Force, and Marine Corps,
and shall include an equal number of personnel of the Department of
Defense (military and civilian) and persons from outside the Department
of Defense. Members appointed from outside the Department of Defense may
be appointed from other Federal departments and agencies, from State and
local agencies, or from the private sector.
(2) The Secretary shall ensure that the membership of the task force
appointed from the Department of Defense includes at least one judge
advocate.
(3) In appointing members to the task force, the Secretary may--
(A) consult with the Attorney General regarding a
representative from the Office of Violence Against Women of the
Department of Justice; and
(B) consult with the Secretary of Health and Human Services
regarding a representative from the Women's Health office of the
Department of Health and Human Services.

(4) Each member of the task force appointed from outside the
Department of Defense shall be an individual who has demonstrated
expertise in the area of sexual harassment and violence or shall be
appointed from one of the following:
(A) A representative from the Office of Civil Rights of the
Department of Education.
(B) A representative from the Centers for Disease Control
and Prevention of the Department of Health and Human Services.
(C) A sexual assault policy and advocacy organization.
(D) A civilian law enforcement agency.
(E) A judicial policy organization.
(F) A national crime victim policy organization.

(5) The members of [NOTE: Deadline.] the task force shall be
appointed not later than 120 days after the date of the enactment of
this Act.

(g) Co-Chairs of the Task Force.--There shall be two co-chairs of
the task force. One of the co-chairs shall be designated by the
Secretary of the Defense at the time of appointment from among the
Department of Defense personnel on the task force. The other co-chair
shall be selected from among the members appointed from outside the
Department of Defense by those members.

[[Page 1468]]
117 STAT. 1468

(h) Administrative Support.--(1) Each member of the task force who
is a member of the Armed Forces or a civilian officer or employee of the
United States shall serve without compensation (other than compensation
to which entitled as a member of the Armed Forces or an officer or
employee of the United States, as the case may be). Other members of the
task force shall be appointed in accordance with, and subject to,
section 3161 of title 5, United States Code.
(2) The Deputy Under Secretary of Defense for Personnel and
Readiness, under the direction of the Under Secretary of Defense for
Personnel and Readiness, shall provide oversight of the task force. The
Washington Headquarters Services of the Department of Defense shall
provide the task force with personnel, facilities, and other
administrative support as necessary for the performance of the task
force's duties.
(3) The Deputy Under Secretary shall coordinate with the Secretary
of the Army to provide visits of the task force to the United States
Military Academy and with the Secretary of the Navy to provide visits of
the task force to the United States Naval Academy.
(i) Termination.--The task force shall terminate 90 days after the
date on which the report of the task force is submitted to the
Committees on Armed Services of the Senate and House of Representatives
pursuant to subsection (d)(3).

SEC. 527. [NOTE: 10 USC 4331 note.] ACTIONS TO ADDRESS SEXUAL
HARASSMENT AND VIOLENCE AT THE SERVICE ACADEMIES.

(a) Policy on Sexual Harassment and Violence.--(1) Under guidance
prescribed by the Secretary of Defense--
(A) the Secretary of the Army shall direct the
Superintendent of the United States Military Academy to
prescribe a policy on sexual harassment and violence applicable
to the personnel of the United States Military Academy;
(B) the Secretary of the Navy shall direct the
Superintendent of the United States Naval Academy to prescribe a
policy on sexual harassment and violence applicable to the
personnel of the United States Naval Academy; and
(C) the Secretary of the Air Force shall direct the
Superintendent of the United States Air Force Academy to
prescribe a policy on sexual harassment and violence applicable
to the personnel of the United States Air Force Academy.

(2) The policy on sexual harassment and violence prescribed for an
academy under paragraph (1) shall specify the following:
(A) Programs to promote awareness of the incidence of rape,
acquaintance rape, and other sexual offenses of a criminal
nature that involve academy personnel.
(B) Procedures that a cadet or midshipman should follow in
the case of an occurrence of sexual harassment or violence,
including--
(i) a specification of the person or persons to whom
the alleged offense should be reported;
(ii) a specification of any other person whom the
victim should contact; and
(iii) procedures on the preservation of evidence
potentially necessary for proof of criminal sexual
assault.
(C) Procedures for disciplinary action in cases of alleged
criminal sexual assault involving academy personnel.

[[Page 1469]]
117 STAT. 1469

(D) Any other sanction authorized to be imposed in a
substantiated case of harassment or violence involving academy
personnel in rape, acquaintance rape, or any other criminal
sexual offense, whether forcible or nonforcible.
(E) Required training on the policy for all academy
personnel, including the specific training required for
personnel who process allegations of sexual harassment or
violence involving academy personnel.

(3) In prescribing the policy on sexual harassment and violence for
an academy under paragraph (1), the Superintendent of that academy shall
take into consideration--
(A) the findings, conclusions, and recommendations of the
panel established pursuant to title V of the Emergency Wartime
Supplemental Appropriations Act, 2003 (Public Law 108-11;
117
Stat. 609) to review sexual misconduct allegations at the United
States Air Force Academy; and
(B) the findings, conclusions, and recommendations of other
previous reviews and investigations of sexual harassment and
violence conducted with respect to one or more of the academies
covered by paragraph (1).

(4) The policy for each such academy required by paragraph (1) shall
be prescribed not later than June 1, 2004.
(b) Annual Assessment.--(1) The Secretary of Defense, through the
Secretaries of the military departments, shall direct each
Superintendent to conduct at the academy under the jurisdiction of that
Superintendent an assessment during each academy program year to
determine the effectiveness of the academy's policies, training, and
procedures on sexual harassment and violence to prevent criminal sexual
harassment and violence involving academy personnel.
(2) For the assessment for each of the 2004, 2005, 2006, 2007, and
2008 academy program years, the Superintendent shall conduct a survey of
all academy personnel--
(A) to measure--
(i) the incidence, during that program year, of
sexual harassment and violence events, on or off the
academy reservation, that have been reported to
officials of the academy; and
(ii) the incidence, in that program year, of sexual
harassment and violence events, on or off the academy
reservation, that have not been reported to officials of
the academy; and
(B) to assess the perceptions of academy personnel on--
(i) the policies, training, and procedures on sexual
harassment and violence involving academy personnel;
(ii) the enforcement of such policies;
(iii) the incidence of sexual harassment and
violence involving academy personnel in such program
year; and
(iv) any other issues relating to sexual harassment
and violence involving academy personnel.

(c) Annual Report.--(1) The Secretary of the Army, the Secretary of
the Navy, and the Secretary of the Air Force shall direct the
Superintendent of the United States Military Academy, the Superintendent
of the United States Naval Academy, and the Superintendent of the United
States Air Force Academy, respectively, to submit to the Secretary a
report on sexual harassment and

[[Page 1470]]
117 STAT. 1470

violence involving academy personnel for each of the 2004, 2005, 2006,
2007, and 2008 academy program years.
(2) The annual report for an academy under paragraph (1) shall
contain, for the academy program year covered by the report, the
following matters:
(A) The number of sexual assaults, rapes, and other sexual
offenses involving academy personnel that have been reported to
academy officials during the program year, and the number of the
reported cases that have been substantiated.
(B) The policies, procedures, and processes implemented by
the Secretary of the military department concerned and the
leadership of the academy in response to sexual harassment and
violence involving academy personnel during the program year.
(C) In the report for the 2004 academy program year, a
discussion of the survey conducted under subsection (b),
together with an analysis of the results of the survey and a
discussion of any initiatives undertaken on the basis of such
results and analysis.
(D) In the report for each of the subsequent academy program
years, the results of the annual survey conducted in such
program year under subsection (b).
(E) A plan for the actions that are to be taken in the
following academy program year regarding prevention of and
response to sexual harassment and violence involving academy
personnel.

(3) The Secretary of a military department shall transmit the annual
report on an academy under this subsection, together with the
Secretary's comments on the report, to the Secretary of Defense and the
Board of Visitors of the academy.
(4) The Secretary of Defense shall transmit the annual report on
each academy under this subsection, together with the Secretary's
comments on the report to, the Committees on Armed Services of the
Senate and the House of Representatives.
(5) The report for the 2004 academy program year for an academy
shall be submitted to the Secretary of the military department concerned
not later than one year after the date of the enactment of this Act.
(6) In this subsection, the term ``academy program year'' with
respect to a year, means the academy program year that ends in that
year.

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

(a) Secretary of Air Force [NOTE: Deadline.] Recommendations.--Not
later than six months after the date of the enactment of the Act, the
Secretary of the Air Force shall submit to the Secretary of Defense a
report containing recommended changes in policy and law pertaining to
the selection, tenure, utilization, responsibilities, and qualifications
of the permanent professors at the Air Force Academy.

(b) Secretary of Defense [NOTE: Deadline.] Recommendations.--Not
later than one month after receiving the report of the Secretary of the
Air Force under subsection (a), the Secretary of Defense shall submit to
the Committees on Armed Services of the Senate and House of
Representatives the report received from the Secretary

[[Page 1471]]
117 STAT. 1471

of the Air Force, together with the recommendations of the Secretary of
Defense for action and proposals for legislation.

(c) Matters To Be Considered by Secretary of Air Force.--The
Secretary of the Air Force in preparing the report required by
subsection (a), shall, at a minimum, do the following:
(1) Conduct a comprehensive review and assessment of the
existing faculty system at the Air Force Academy, including both
civilian and military permanent professorships.
(2) Take into account the findings, conclusions, and
recommendation regarding faculty and permanent professorships at
the Air Force Academy of--
(A) the report of the Panel to Review Sexual
Misconduct Allegations at the United States Air Force
Academy (referred to as the ``Fowler Panel''), dated
September 22, 2003;
(B) the report released on June 19, 2003, of the
special working group appointed by the Secretary of the
Air Force known as the Working Group Concerning the
Deterrence of and Response to Incidents of Sexual
Assault at the U.S. Air Force Academy, which was led by
the General Counsel of the Department of the Air Force;
and
(C) the Agenda for Change of the Air Force Academy
dated March 26, 2003.
(3) Solicit information regarding the faculty and permanent
professorship systems at the United States Naval Academy and the
United States Military Academy and consider that information as
part of the required assessment.
(4) Consult with experts on higher education outside the
Department of Defense.

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

(a) Authority to Appoint Dean From Persons Other Than Air Force
Academy Faculty Heads of Departments.--Subsection (a) of section 9335 of
title 10, United States Code, is amended to read as follows:
``(a) The Dean of the Faculty is responsible to the Superintendent
for developing and sustaining the curriculum and overseeing the faculty
of the Academy. The qualifications, selection procedures, training, pay
grade, and retention of the Dean shall be prescribed by the Secretary of
the Air Force. If a person appointed as the Dean is not an officer on
active duty, the person shall be appointed as a member of the Senior
Executive Service.''.
(b) Conforming Amendments.--Subsection (b) of such section is
amended--
(1) in the first sentence--
(A) by striking ``of the Air Force'' and inserting
``on active duty''; and
(B) by inserting ``(or the equivalent)'' after
``brigadier general'' both places it appears; and
(2) in the last sentence--
(A) by inserting ``applicable'' before
``limitation''; and
(C) by striking ``of the Air Force''.

(c) Statutory Status as Permanent Professor.--(1) Section 9331(b)(2)
of such title is amended by striking ``dean of the Faculty, who is a
permanent professor'' and inserting ``Dean of the Faculty''.

[[Page 1472]]
117 STAT. 1472

(2) Section 9336(a) of such title is amended by striking ``, other
than the Dean of the Faculty,''.
(d) [NOTE: 10 USC 9331 note.] Applicability.--The amendments made
by this section shall apply with respect to any Dean of the Faculty of
the United States Air Force Academy selected on or after the date of the
enactment of this Act.

Subtitle D--Other Military Education and Training Matters

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

(a) Authority.--Section 7102 of title 10, United States Code, is
amended--
(1) by redesignating subsections (c) and (d) as subsections
(d) and (e), respectively; and
(2) by inserting after subsection (b) the following new
subsection (c):

``(c) Command and Staff College of the Marine Corps University.--
Upon the recommendation of the Director and faculty of the Command and
Staff College of the Marine Corps University, the President of the
Marine Corps University may confer the degree of master of operational
studies upon graduates of the Command and Staff College's School of
Advanced Warfighting who fulfill the requirements for that degree.''.
(b) [NOTE: 10 USC 7102 note.] Effective Date.--The authority to
confer the degree of master of operational studies under section 7102(c)
of title 10, United States Code (as added by subsection (a)) may not be
exercised until the Secretary of Education determines, and certifies to
the President of the Marine Corps University, that the requirements
established by the Command and General Staff College of the Marine Corps
University for that degree are in accordance with generally applicable
requirements for a degree of master of arts.

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

(a) Expanded Eligibility for Enlisted Personnel.--Subsection (a)(2)
of section 7045 of title 10, United States Code, is amended to read as
follows:
``(2)(A) The Secretary may permit an enlisted member of the armed
forces to receive instruction at the Naval Postgraduate School through
attendance at an executive level seminar.
``(B) The Secretary may permit an eligible enlisted member of the
armed forces to receive instruction at the Postgraduate School in
connection with pursuit of a program of education in information
assurance as a participant in the Information Security Scholarship
program under chapter 112 of this title. To be eligible for instruction
under this subparagraph, the enlisted member must have been awarded a
baccalaureate degree by an institution of higher education.
``(C) In addition to instruction authorized under subparagraphs (A)
and (B), the Secretary may, on a space-available basis, permit

[[Page 1473]]
117 STAT. 1473

an enlisted member of the armed forces who is assigned permanently to
the staff of the Postgraduate School or to a nearby command to receive
instruction at the Postgraduate School.''.
(b) Reimbursement.--Subsection (b) of such section is amended--
(1) by striking ``The Department'' and inserting ``(1)
Except as provided under paragraph (3), the Department'';
(2) by striking ``officers'' in the first sentence and
inserting ``members'';
(3) by designating the second sentence as paragraph (2) and
in that sentence--
(A) by inserting ``under subsection (a)(2)(C)''
after ``permitted'';
(B) by inserting ``on a space-available basis''
after ``instruction at the Postgraduate School''; and
(C) by striking ``(taking into consideration the
admission of enlisted members on a space-available
basis)''; and
(4) by adding at the end the following new paragraph:

``(3) The requirements for payment of costs and fees under paragraph
(1) shall be subject to such exceptions as the Secretary of Defense may
prescribe for members of the armed forces who receive instruction at the
Postgraduate School in connection with pursuit of a degree or
certification as participants in the Information Security Scholarship
program under chapter 112 of this title.''.

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

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

[[Page 1474]]
117 STAT. 1474

(3) by adding at the end the following new paragraph:

``(2) The authority under this subsection to confer a degree is
effective only during a period when the United States Air Force
Institute of Technology is accredited with respect to the award of that
degree by a nationally recognized accreditation association or
authority.''.

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

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

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

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

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

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

[[Page 1475]]
117 STAT. 1475

(1) that agency's eligibility for the assistance; and
(2) the amount of the assistance for which that agency is
eligible.

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

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

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

(b) [NOTE: 20 USC 7703 note.] Effective Date.--The amendment made
by subsection (a) shall take effect beginning with basic support
payments under section 8003(b)(2) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7703(b)(2)) for fiscal year 2003.

Subtitle D--Administrative Matters

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

(a) Deployment Management.--Subsection (a) of section 991 of title
10, United States Code, is amended to read as follows:
``(a) Management Responsibilities.--(1) The deployment (or potential
deployment) of a member of the armed forces shall be managed to ensure
that the member is not deployed, or continued

[[Page 1476]]
117 STAT. 1476

in a deployment, on any day on which the total number of days on which
the member has been deployed--
``(A) out of the preceding 365 days would exceed the one-
year high-deployment threshold; or
``(B) out of the preceding 730 days would exceed the two-
year high-deployment threshold.

``(2) In this subsection:
``(A) The term `one-year high-deployment threshold' means--
``(i) 220 days; or
``(ii) a lower number of days prescribed by the
Secretary of Defense, acting through the Under Secretary
of Defense for Personnel and Readiness.
``(B) The term `two-year high-deployment threshold' means--
``(i) 400 days; or
``(ii) a lower number of days prescribed by the
Secretary of Defense, acting through the Under Secretary
of Defense for Personnel and Readiness.

``(3) A member may be deployed, or continued in a deployment,
without regard to paragraph (1) if the deployment, or continued
deployment, is approved by the Secretary of Defense. The authority of
the Secretary under the preceding sentence may only be delegated to--
``(A) a civilian officer of the Department of Defense
appointed by the President, by and with the advise and consent
of the Senate, or a member of the Senior Executive Service; or
``(B) a general or flag officer in that member's chain of
command (including an officer in the grade of colonel, or in the
case of the Navy, captain, serving in a general or flag officer
position who has been selected for promotion to the grade of
brigadier general or rear admiral (lower half) in a report of a
selection board convened under section 611(a) or 14101(a) of
this title that has been approved by the President).''.

(b) Changes From Per Diem to High-Deployment Allowance.--(1)
Subsection (a) of section 436 of title 37, United States Code, is
amended to read as follows:
``(a) Monthly Allowance.--The Secretary of the military department
concerned shall pay a high-deployment allowance to a member of the armed
forces under the Secretary's jurisdiction for each month during which
the member--
``(1) is deployed; and
``(2) at any time during that month--
``(A) has been deployed for 191 or more consecutive
days (or a lower number of consecutive days prescribed
by the Secretary of Defense, acting through the Under
Secretary of Defense for Personnel and Readiness);
``(B) has been deployed, out of the preceding 730
days, for a total of 401 or more days (or a lower number
of days prescribed by the Secretary of Defense, acting
through the Under Secretary of Defense for Personnel and
Readiness); or
``(C) in the case of a member of a reserve
component, is on active duty--
``(i) under a call or order to active duty for
a period of more than 30 days that is the second
(or

[[Page 1477]]
117 STAT. 1477

later) such call or order to active duty (whether
voluntary or involuntary) for that member in
support of the same contingency operation; or
``(ii) for a period of more than 30 days under
a provision of law referred to in section
101(a)(13)(B) of title 10, if such period begins
within one year after the date on which the member
was released from previous service on active duty
for a period of more than 30 days under a call or
order issued under such a provision of law.''.

(2) Subsection (c) of such section is amended to read as follows:
``(c) Rate.--The monthly rate of the allowance payable to a member
under this section shall be determined by the Secretary concerned, not
to exceed $1,000 per month.''.
(3) Such section is further amended by adding at the end the
following new subsections:
``(g) Authority to Exclude Certain Duty Assignments.--The Secretary
concerned may exclude members serving in specified duty assignments from
eligibility for the high-deployment allowance while serving in those
assignments. Any such specification of duty assignments may only be made
with the approval of the Secretary of Defense, acting through the Under
Secretary of Defense for Personnel and Readiness. Specification of a
particular duty assignment for purposes of this subsection may not be
implemented so as to apply to the member serving in that position at the
time of such specification.
``(h) Payment From Operation and Maintenance Funds.--The monthly
allowance payable to a member under this section shall be paid from
appropriations available for operation and maintenance for the armed
force in which the member serves.''.
(4) Such section is further amended--
(A) in subsection (d), by striking ``per diem'';
(B) in subsection (e), by striking ``per diem'' and
inserting ``allowance''; and
(C) in subsection (f)--
(i) by striking ``per diem'' and inserting
``allowance''; and
(ii) by striking ``day on which'' and inserting
``month during which''.

(5)(A) The heading of such section is amended to read as follows:

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

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

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

(c) Changes to Reporting Requirement.--Section 487(b)(5) of title
10, United States Code, is amended to read as follows:
``(5) For each of the armed forces, the description shall indicate,
for the period covered by the report--
``(A) the number of members who received the high-deployment
allowance under section 436 of title 37;

[[Page 1478]]
117 STAT. 1478

``(B) the number of members who received each rate of
allowance paid;
``(C) the number of members who received the allowance for
one month, for two months, for three months, for four months,
for five months, for six months, and for more than six months;
and
``(D) the total amount spent on the allowance.''.

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

(a) Enhanced Authority to Retain Accumulated Leave.--Paragraph (1)
of section 701(f) of title 10, United States Code, is amended to read as
follows:
``(f)(1)(A) The Secretary concerned, under uniform regulations to be
prescribed by the Secretary of Defense, may authorize a member described
in subparagraph (B) who, except for this paragraph, would lose any
accumulated leave in excess of 60 days at the end of the fiscal year, to
retain an accumulated total of 120 days leave.
``(B) This subsection applies to a member who serves on active duty
for a continuous period of at least 120 days--
``(i) in an area in which the member is entitled to special
pay under section 310(a) of title 37; or
``(ii) while assigned to a deployable ship or mobile unit or
to other duty comparable to that specified in clause (i) that is
designated for the purpose of this subsection.

``(C) Except as provided in paragraph (2), leave in excess of 60
days accumulated under this paragraph is lost unless it is used by the
member before the end of the third fiscal year after the fiscal year in
which the continuous period of service referred to in subparagraph (B)
terminated.''.
(b) [NOTE: 10 USC 701 note.] Effective Date.--The amendment made
by subsection (a) shall take effect on October 1, 2003, or the date of
the enactment of this Act, whichever is later.

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

(a) Consistency With Elementary and Secondary Education Act of
1965.--Paragraph (5) of section 503(c) of title 10, United States Code,
is amended by striking ``apply to--'' and all that follows through
``school which'' and inserting ``apply to a private secondary school
that''.
(b) Correction of Cross Reference.--Paragraph (6)(A)(i) of such
section is amended by striking ``14101'' and ``8801'' and inserting
``9101'' and ``7801'', respectively.

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

Section 521 of the National Defense Authorization Act for Fiscal
Year 1996 (Public Law 104-106; 110 Stat. 309; 10 U.S.C. 1129 note) is
amended by adding at the end the following new subsection:
``(d) Procedures for Award.--In determining whether a former
prisoner of war who submits an application for the award of the Purple
Heart under subsection (a) is eligible for that award, the Secretary
concerned shall apply the following procedures:

[[Page 1479]]
117 STAT. 1479

``(1) Failure of the applicant to provide any documentation
as required by the Secretary shall not in itself disqualify the
application from being considered.
``(2) In evaluating the application, the Secretary shall
consider (A) historical information as to the prison camp or
other circumstances in which the applicant was held captive, and
(B) the length of time that the applicant was held captive.
``(3) To the extent that information is readily available,
the Secretary shall assist the applicant in obtaining
information or identifying the sources of information referred
to in paragraph (2).
``(4) The Secretary shall review a completed application
under this section based upon the totality of the information
presented, taking into account the length of time between the
period during which the applicant was held as a prisoner of war
and the date of the application.''.

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

Section 973(b) of title 10, United States Code, is amended--
(1) by redesignating paragraph (4) as paragraph (5);
(2) in paragraph (3)--
(A) by inserting ``by reason of subparagraph (A) of
paragraph (1)'' after ``applies''; and
(B) by striking ``, the District of Columbia,'' and
all that follows through ``such government)'' and
inserting ``(or of any political subdivision of a
State)''; and
(3) by inserting after paragraph (3) the following new
paragraph (4):

``(4)(A) An officer to whom this subsection applies by reason of
subparagraph (B) or (C) of paragraph (1) may not hold, by election or
appointment, a civil office in the government of a State (or of any
political subdivision of a State) if the holding of such office while
this subsection so applies to the officer--
``(i) is prohibited under the laws of that State; or
``(ii) as determined by the Secretary of Defense or by the
Secretary of Homeland Security with respect to the Coast Guard
when it is not operating as a service in the Navy, interferes
with the performance of the officer's duties as an officer of
the armed forces.

``(B) Except as otherwise authorized by law, while an officer
referred to in subparagraph (A) is serving on active duty, the officer
may not exercise the functions of a civil office held by the officer as
described in that subparagraph.''; and
(4) by adding at the end the following:

``(6) In this subsection, the term `State' includes the District of
Columbia and a territory, possession, or commonwealth of the United
States.''.

SEC. 546. POLICY [NOTE: 10 USC 113 note.] ON PUBLIC IDENTIFICATION OF
CASUALTIES.

(a) Requirement for Policy.--Not [NOTE: Deadline.] later than 180
days after the date of the enactment of this Act, the Secretary of
Defense shall prescribe the policy of the Department of Defense on
public release of the name or other personally identifying information
of any member of the Army, Navy, Air Force, or Marine Corps who while on
active duty or performing inactive-duty training is

[[Page 1480]]
117 STAT. 1480

killed or injured, whose duty status becomes unknown, or who is
otherwise considered to be a casualty.

(b) Guidance on Timing of Release.--The policy under subsection (a)
shall include guidance for ensuring that any public release of
information on a member under the policy occurs only after the lapse of
an appropriate period following notification of the next-of-kin
regarding the casualty status of such member.

SEC. 547. SPACE PERSONNEL CAREER [NOTE: 10 USC 2271 note.] FIELDS.

(a) Strategy Required.--The Secretary of Defense shall develop a
strategy for the Department of Defense that will--
(1) promote the development of space personnel career fields
within each of the military departments; and
(2) ensure that the space personnel career fields developed
by the military departments are integrated with each other to
the maximum extent practicable.

(b) Report.--Not [NOTE: Deadline.] later than February 1, 2004,
the Secretary shall submit to the Committees on Armed Services of the
Senate and the House of Representatives a report on the strategy
developed under subsection (a). The report shall include the following:
(1) A statement of the strategy developed under subsection
(a), together with an explanation of that strategy.
(2) An assessment of the measures required for the
Department of Defense and the military departments to integrate
the space personnel career fields of the military departments.
(3) A comprehensive assessment of the adequacy of the
actions of the Secretary of Air Force pursuant to section 8084
of title 10, United States Code, to establish for Air Force
officers a career field for space.

(c) General Accounting Office Review and Reports.--(1) The
Comptroller General shall review the strategy developed under subsection
(a) and the status of efforts by the military departments in developing
space personnel career fields.
(2) The Comptroller General shall submit to the committees referred
to in subsection (b) two reports on the review under paragraph (1), as
follows:
(A) [NOTE: Deadline.] Not later than June 15, 2004, the
Comptroller General shall submit a report that assesses how
effective that Department of Defense strategy and the efforts by
the military departments, when implemented, are likely to be for
developing the personnel required by each of the military
departments who are expert in development of space doctrine and
concepts of space operations, the development of space systems,
and operation of space systems.
(B) [NOTE: Deadline.] Not later than March 15, 2005, the
Comptroller General shall submit a report that assesses, as of
the date of the report--
(i) the effectiveness of that Department of Defense
strategy and the efforts by the military departments in
developing the personnel required by each of the
military departments who are expert in development of
space doctrine and concepts of space operations, the
development of space systems, and in operation of space
systems; and
(ii) progress made in integrating the space career
fields of the military departments.

[[Page 1481]]
117 STAT. 1481

SEC. 548. [NOTE: 10 USC 503.] DEPARTMENT OF DEFENSE JOINT ADVERTISING,
MARKET RESEARCH, AND STUDIES PROGRAM.

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

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

The Secretary of the Navy may not reduce or disestablish a Naval
Reserve or Marine Corps Reserve aviation squadron before February 1,
2004.

Subtitle E--Military Justice Matters

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

Subsection (b) of section 843 of title 10, United States Code
(article 43 of the Uniform Code of Military Justice), is amended--
(1) by redesignating paragraph (2) as paragraph (3); and
(2) by inserting after paragraph (1) the following new
paragraph (2):

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

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

Section 911 of title 10, United States Code (article 111 of the
Uniform Code of Military Justice), is amended--

[[Page 1482]]
117 STAT. 1482

(1) in subsection (a)(2), by striking ``is in excess of''
and inserting ``is equal to or exceeds''; and
(2) in subsection (b)--
(A) in paragraph (1), by striking subparagraph (A)
and inserting the following:
``(A) In the case of the operation or control of a vehicle,
aircraft, or vessel in the United States, such limit is the
lesser of--
``(i) the blood alcohol content limit under the law
of the State in which the conduct occurred, except as
may be provided under paragraph (2) for conduct on a
military installation that is in more than one State; or
``(ii) the blood alcohol content limit specified in
paragraph (3).'';
(B) in paragraphs (1)(B) and (3), by striking
``maximum''; and
(C) in paragraph (4)(A), by striking ``maximum
permissible'' and all that follows through the period at
the end and inserting ``amount of alcohol concentration
in a person's blood or breath at which operation or
control of a vehicle, aircraft, or vessel is
prohibited.''.

Subtitle F--Benefits

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

(a) Certain Employees of the District of Columbia Government.--
Section 9001(1) of title 5, United States Code, is amended by striking
``2105(c),'' and all that follows and inserting ``2105(c).''.
(b) Former Federal Employees Who Would Be Eligible To Begin
Receiving an Annuity Upon Attaining the Requisite Minimum Age.--Section
9001(2) of title 5, United States Code, is amended--
(1) in subparagraph (A), by striking ``and'' at the end;
(2) in subparagraph (B), by striking the period and
inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(C) any former employee who, on the basis of his
or her service, would meet all requirements for being
considered an `annuitant' within the meaning of
subchapter III of chapter 83, chapter 84, or any other
retirement system for employees of the Government, but
for the fact that such former employee has not attained
the minimum age for title to annuity.''.

(c) Reservists Transferred to the Retired Reserve Who Are Under Age
60.--Section 9001(4) of title 5, United States Code, is amended by
striking ``including'' and all that follows through ``who has'' and
inserting ``and a member who has been transferred to the Retired Reserve
and who would be entitled to retired pay under chapter 1223 of title 10
but for not having''.
(d) Reference Amendment.--Section 9001(2)(A) of title 5, United
States Code, as amended by subsection (b), is further amended by
striking ``of this subsection''.

[[Page 1483]]
117 STAT. 1483

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

(a) Authorized Transportation.--Section 1490 of title 10, United
States Code, is amended--
(1) in subsection (a), by striking ``located in the United
States''; and
(2) in subsection (b)(1), by striking ``outside the United
States or to a place''.

(b) Conforming Amendment.--Subsection (c) of such section is amended
to read as follows:
``(c) Definition of Dependent.--In this section, the term
`dependent' has the meaning given such term in section 1072(2) of this
title.''.
(c) Effective [NOTE: Applicability. 10 USC 1490 note.] Date.--The
amendments made by this section shall apply only with respect to persons
dying on or after the date of the enactment of this Act.

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

(a) Tuition Status Parity With Dependents of Other Reservists.--
Section 1404(c) of the Defense Dependents' Education Act of 1978 (20
U.S.C. 923(c)) is amended--
(1) by inserting ``(1)'' after ``(c)''; and
(2) by adding at the end the following new paragraph:

``(2)(A) The Secretary shall include in the regulations prescribed
under this subsection a requirement that children in the class of
children described in subparagraph (B) shall be subject to the same
tuition requirements, or waiver of tuition requirements, as children in
the class of children described in subparagraph (C).
``(B) The class of children described in this subparagraph are
children of members of reserve components of the Armed Forces who--
``(i) are on active duty under an order to active duty under
section 12301 or 12302 of title 10, United States Code;
``(ii) were ordered to active duty from a location in the
United States (other than in Alaska or Hawaii); and
``(iii) are serving on active duty outside the United States
or in Alaska or Hawaii.

``(C) The class of children described in this subparagraph are
children of members of reserve components of the Armed Forces who--
``(i) are on active duty under an order to active duty under
section 12301 or 12302 of title 10, United States Code;
``(ii) were ordered to active duty from a location outside
the United States (or in Alaska or Hawaii); and
``(iii) are serving on active duty outside the United States
or in Alaska or Hawaii.''.

(b) Clerical Amendment.--The heading of such section is amended to
read as follows:

[[Page 1484]]
117 STAT. 1484

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


Subtitle G--Domestic Violence

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

Section 406(h) of title 37, United States Code, is amended by adding
at the end the following new paragraph:
``(4)(A) If a determination described in subparagraph (B) is made
with respect to a dependent of a member described in that subparagraph
and a request described in subparagraph (C) is made by or on behalf of
that dependent, the Secretary may provide a benefit authorized for a
member under paragraph (1) or (3) to that dependent in lieu of providing
such benefit to the member.
``(B) A determination described in this subparagraph is a
determination by the commanding officer of a member that--
``(i) the member has committed a dependent-abuse offense
against a dependent of the member;
``(ii) a safety plan and counseling have been provided to
that dependent;
``(iii) the safety of the dependent is at risk; and
``(iv) the relocation of the dependent is advisable.

``(C) A request described in this subparagraph is a request by the
spouse of a member, or by the parent of a dependent child in the case of
a dependent child of a member, for relocation.
``(D) Transportation may be provided under this paragraph for
household effects or a motor vehicle only if a written agreement of the
member, or an order of a court of competent jurisdiction, gives
possession of the effects or vehicle to the spouse or dependent of the
member concerned.
``(E) In this paragraph, the term `dependent-abuse offense' means an
offense described in section 1059(c) of title 10.''.

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

(a) Commencement.--Paragraph (1)(A) of section 1059(e) of title 10,
United States Code, is amended by striking ``shall commence'' and all
that follows and inserting ``shall commence--
``(i) as of the date the court-martial sentence is
adjudged if the sentence, as adjudged, includes a
dismissal, dishonorable discharge, bad conduct
discharge, or forfeiture of all pay and allowances; or
``(ii) if there is a pretrial agreement that
provides for disapproval or suspension of the dismissal,
dishonorable discharge, bad conduct discharge, or
forfeiture of all pay and allowances, as of the date of
the approval of the court-martial sentence by the person
acting under section 860(c) of this title (article 60(c)
of the Uniform Code of Military Justice) if the
sentence, as approved, includes an unsuspended
dismissal, dishonorable discharge, bad conduct
discharge, or forfeiture of all pay and allowances;
and''.

(b) Duration.--(1) Paragraph (2) of such section is amended by
striking ``a period of 36 months'' and all that follows through ``12
months'' and inserting ``a period of not less than 12 months

[[Page 1485]]
117 STAT. 1485

and not more than 36 months, as established in policies prescribed by
the Secretary concerned''.
(2) [NOTE: 10 USC 1059 note.] Policies under subsection (e)(2) of
section 1059 of title 10, United States Code, as amended by paragraph
(1), for the duration of transitional compensation payments under that
section shall be prescribed under such subsection not later than six
months after the date of the enactment of this Act.

(c) [NOTE: 10 USC 1059.] Termination.--Paragraph (3)(A) of such
section is amended by striking ``punishment applicable to the member
under the sentence is remitted, set aside, or mitigated'' and inserting
``conviction is disapproved by the person acting under section 860(c) of
this title (article 60(c) of the Uniform Code of Military Justice) or
set aside, or each such punishment applicable to the member under the
sentence is disapproved by the person acting under section 860(c) of
this title, remitted, set aside, suspended, or mitigated''.

(d) Effective [NOTE: Applicability. 10 USC 1059 note.] Date.--The
amendments made by this section shall apply only with respect to cases
in which a court-martial sentence is adjudged on or after the date of
the enactment of this Act.

SEC. 573. EXCEPTIONAL ELIGIBILITY FOR TRANSITIONAL COMPENSATION.

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

[[Page 1486]]
117 STAT. 1486

SEC. 574. TYPES OF ADMINISTRATIVE SEPARATIONS TRIGGERING COVERAGE.

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

SEC. 575. [NOTE: 10 USC 1562 note.] COMPTROLLER GENERAL REVIEW AND
REPORT.

(a) Review.--During the two-year period beginning on the date of the
enactment of this Act, the Comptroller General shall review and assess
the progress of the Department of Defense in implementing the
recommendations of the Defense Task Force on Domestic Violence. In
reviewing the status of the Department's efforts, the Comptroller
General should specifically focus on--
(1) the efforts of the Department to ensure confidentiality
for victims and accountability and education of commanding
officers and chaplains; and
(2) the resources that the Department of Defense has
provided toward such implementation, including personnel,
facilities, and other administrative support, in order to ensure
that necessary resources are provided to the organization within
the Office of the Secretary of Defense with direct
responsibility for oversight of implementation by the military
departments of recommendations of the Task Force in order for
that organization to carry out its duties and responsibilities.

(b) [NOTE: Deadline.] Report.--The Comptroller General shall
submit to the Committee on Armed Services of the Senate and the
Committee on Armed Services of the House of Representatives a report on
the results of the review and assessment under subsection (a) not later
than 30 months after the date of the enactment of this Act.

SEC. 576. FATALITY REVIEWS.

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

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

``Sec.
``4061. Fatality reviews.

``Sec. 4061. Fatality reviews

``(a) Review of Fatalities.--The Secretary of the Army shall conduct
a multidisciplinary, impartial review (referred to as a `fatality
review') in the case of each fatality known or suspected to have
resulted from domestic violence or child abuse against any of the
following:
``(1) A member of the Army on active duty.
``(2) A current or former dependent of a member of the Army
on active duty.
``(3) A current or former intimate partner who has a child
in common or has shared a common domicile with a member of the
Army on active duty.

``(b) Matters To Be Included.--The report of a fatality review under
subsection (a) shall, at a minimum, include the following:
``(1) An executive summary.
``(2) Data setting forth victim demographics, injuries,
autopsy findings, homicide or suicide methods, weapons, police

[[Page 1487]]
117 STAT. 1487

information, assailant demographics, and household and family
information.
``(3) Legal disposition.
``(4) System intervention and failures, if any, within the
Department of Defense.
``(5) A discussion of significant findings.
``(6) Recommendations for systemic changes, if any, within
the Department of the Army and the Department of Defense.

``(c) OSD Guidance.--The Secretary of Defense shall prescribe
guidance, which shall be uniform for the military departments, for the
conduct of reviews by the Secretary under subsection (a).''.
(2) The tables of chapters at the beginning of subtitle B, and at
the beginning of part II of subtitle B, of such title are each amended
by inserting after the item relating to chapter 373 the following new
item:

``375. Miscellaneous Investigation Requirements and Other Duties.4061''.

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

``Sec. 6036. Fatality reviews

``(a) Review of Fatalities.--The Secretary of the Navy shall conduct
a multidisciplinary, impartial review (referred to as a `fatality
review') in the case of each fatality known or suspected to have
resulted from domestic violence or child abuse against any of the
following.
``(1) A member of the naval service on active duty.
``(2) A current or former dependent of a member of the naval
service on active duty.
``(3) A current or former intimate partner who has a child
in common or has shared a common domicile with a member of the
naval service on active duty.

``(b) Matters To Be Included.--The report of a fatality review under
subsection (a) shall, at a minimum, include the following:
``(1) An executive summary.
``(2) Data setting forth victim demographics, injuries,
autopsy findings, homicide or suicide methods, weapons, police
information, assailant demographics, and household and family
information.
``(3) Legal disposition.
``(4) System intervention and failures, if any, within the
Department of Defense.
``(5) A discussion of significant findings.
``(6) Recommendations for systemic changes, if any, within
the Department of the Navy and the Department of Defense.

``(c) OSD Guidance.--The Secretary of Defense shall prescribe
guidance, which shall be uniform for the military departments, for the
conduct of reviews by the Secretary under subsection (a).''.
(2) The table of sections at the beginning of such chapter is
amended by adding at the end the following new item:

``6036. Fatality reviews.''.

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

[[Page 1488]]
117 STAT. 1488

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

``Sec.
``9061. Fatality reviews.

``Sec. 9061. Fatality reviews

``(a) Review of Fatalities.--The Secretary of the Air Force shall
conduct a multidisciplinary, impartial review (referred to as a
`fatality review') in the case of each fatality known or suspected to
have resulted from domestic violence or child abuse against any of the
following:
``(1) A member of the Air Force on active duty.
``(2) A current or former dependent of a member of the Air
Force on active duty.
``(3) A current or former intimate partner who has a child
in common or has shared a common domicile with a member of the
Air Force on active duty.

``(b) Matters To Be Included.--The report of a fatality review under
subsection (a) shall, at a minimum, include the following:
``(1) An executive summary.
``(2) Data setting forth victim demographics, injuries,
autopsy findings, homicide or suicide methods, weapons, police
information, assailant demographics, and household and family
information.
``(3) Legal disposition.
``(4) System intervention and failures, if any, within the
Department of Defense.
``(5) A discussion of significant findings.
``(6) Recommendations for systemic changes, if any, within
the Department of the Air Force and the Department of Defense.

``(c) OSD Guidance.--The Secretary of Defense shall prescribe
guidance, which shall be uniform for the military departments, for the
conduct of reviews by the Secretary under subsection (a).''.
(2) The tables of chapters at the beginning of subtitle D, and at
the beginning of part II of subtitle D, of such title are each amended
by inserting after the item relating to chapter 873 the following new
item:

``875. Miscellaneous Investigation Requirements and Other Duties.9061''.

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

SEC. 577. SENSE OF CONGRESS.

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

[[Page 1489]]
117 STAT. 1489

Subtitle H--Other Matters

SEC. 581. [NOTE: 10 USC 1781 note.] RECOGNITION OF MILITARY FAMILIES.

(a) Findings.--Congress makes the following findings:
(1) The families of both active and reserve component
members of the Armed Forces, through their sacrifices and their
dedication to the Nation and its values, contribute immeasurably
to the readiness of the Armed Forces.
(2) Without the continued support of military families, the
Nation's ability to sustain a high quality all-volunteer
military force would be undermined.
(3) In the perilous and challenging times of the global war
on terrorism, with hundreds of thousands of active and reserve
component military personnel deployed overseas in places of
combat and other imminent danger, military families are making
extraordinary sacrifices and will be required to do so for the
foreseeable future.
(4) Beginning in 1997, military family service and support
centers have responded to the encouragement and support of
private, non-profit organizations to recognize and honor the
American military family during the Thanksgiving period each
November.

(b) Military Family Recognition.--In view of the findings in
subsection (a), Congress determines that it is appropriate that special
measures be taken annually to recognize and honor the American military
family.
(c) Department of Defense Programs and Activities.--The Secretary of
Defense shall--
(1) implement and sustain programs, including appropriate
ceremonies and activities, to recognize and honor the
contributions and sacrifices of the American military family,
including families of both active and reserve component military
personnel;
(2) focus the celebration of the American military family
during a specific period of each year to give full and proper
recognition to those families; and
(3) seek the assistance and support of appropriate civilian
organizations, associations, and other entities (A) in carrying
out the annual celebration of the American military family, and
(B) in sustaining other, longer-term efforts to support the
American military family.

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

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

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

``(a) Authority.--The Secretary of a military department may provide
support services described in subsection (b) to support chaplain-led
programs to assist members of the armed forces on active duty and their
immediate family members, and members of reserve components in an active
status and their immediate family members, in building and maintaining a
strong family structure.

[[Page 1490]]
117 STAT. 1490

``(b) Authorized Support Services.--The support services referred to
in subsection (a) are costs of transportation, food, lodging, child
care, supplies, fees, and training materials for members of the armed
forces and their family members while participating in programs referred
to in that subsection, including participation at retreats and
conferences.
``(c) Immediate Family Members.--In this section, the term
`immediate family members', with respect to a member of the armed
forces, means--
``(1) the member's spouse; and
``(2) any child (as defined in section 1072(6) of this
title) of the member who is described in subparagraph (D) of
section 1072(2) of this title.''.

(2) The table of sections at the beginning of such subchapter is
amended by inserting after the item relating to section 1788 the
following new item:

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

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

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

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

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

``(a) Joint Executive Committee.--(1) There is established an
interagency committee to be known as the Department of Veterans Affairs-
Department of Defense Joint Executive Committee (hereinafter in this
section referred to as the `Committee').
``(2) The Committee is composed of--
``(A) the Deputy Secretary of Veterans Affairs and such
other officers and employees of the Department of Veterans
Affairs as the Secretary of Veterans Affairs may designate; and
``(B) the Under Secretary of Defense for Personnel and
Readiness and such other officers and employees of the
Department of Defense as the Secretary of Defense may designate.

``(b) Administrative Matters.--(1) The Deputy Secretary of Veterans
Affairs and the Under Secretary of Defense shall determine the size and
structure of the Committee, as well as the administrative and procedural
guidelines for the operation of the Committee.
``(2) The two Departments shall supply appropriate staff and
resources to provide administrative support and services. Support for
such purposes shall be provided at a level sufficient for the efficient
operation of the Committee, including a subordinate Health Executive
Committee, a subordinate Benefits Executive Committee, and such other
committees or working groups as considered necessary by the Deputy
Secretary and Under Secretary.
``(c) Recommendations.--(1) The Committee shall recommend to the
Secretaries strategic direction for the joint coordination and sharing
efforts between and within the two Departments under

[[Page 1491]]
117 STAT. 1491

section 8111 of this title and shall oversee implementation of those
efforts.
``(2) The Committee shall submit to the two Secretaries and to
Congress an annual report containing such recommendations as the
Committee considers appropriate.
``(d) Functions.--In order to enable the Committee to make
recommendations in its annual report under subsection (c)(2), the
Committee shall do the following:
``(1) Review existing policies, procedures, and practices
relating to the coordination and sharing of resources between
the two Departments.
``(2) Identify changes in policies, procedures, and
practices that, in the judgment of the Committee, would promote
mutually beneficial coordination, use, or exchange of use of
services and resources of the two Departments, with the goal of
improving the quality, efficiency and effectiveness of the
delivery of benefits and services to veterans, service members,
military retirees, and their families through an enhanced
Department of Veterans Affairs and Department of Defense
partnership.
``(3) Identify and assess further opportunities for the
coordination and collaboration between the Departments that, in
the judgment of the Committee, would not adversely affect the
range of services, the quality of care, or the established
priorities for benefits provided by either Department.
``(4) Review the plans of both Departments for the
acquisition of additional resources, especially new facilities
and major equipment and technology, in order to assess the
potential effect of such plans on further opportunities for the
coordination and sharing of resources.
``(5) Review the implementation of activities designed to
promote the coordination and sharing of resources between the
Departments.''.

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

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

(b) Conforming Amendments.--(1) Subsection (c) of section 8111 of
such title is repealed.
(2) Such section is further amended--
(A) in subsection (b)(2), by striking ``the interagency
committee provided for under subsection (c)'' and inserting
``the Department of Veterans Affairs-Department of Defense Joint
Executive Committee under section 320 of this title'';
(B) in subsection (d)(1), by striking ``Committee
established in subsection (c)'' and inserting ``Department of
Veterans Affairs-Department of Defense Joint Executive
Committee'';
(C) in subsection (e)(1), by striking ``Committee under
subsection (c)(2)'' and inserting ``Department of Veterans
Affairs-Department of Defense Joint Executive Committee with
respect to health care resources''; and
(D) in subsection (f)(2), by striking subparagraphs (B) and
(C) and inserting the following:
``(B) The assessment of further opportunities identified by
the Department of Veterans Affairs-Department of Defense Joint
Executive Committee under subsection (d)(3) of section

[[Page 1492]]
117 STAT. 1492

320 of this title for the sharing of health-care resources
between the two Departments.
``(C) Any recommendation made by that committee under
subsection (c)(2) of that section during that fiscal year.''.

(c) Technical Amendments.--Subsection (f) of such section is further
amended by inserting ``(Public Law 107-314)'' in paragraphs (3), (4)(A),
(4)(B), and (5) after ``for Fiscal Year 2003''.
(d) Effective Date.--(1) If this Act is enacted before October 1,
2003--
(A) section 320 of title 38, United States Code, as added by
subsection (a), shall take effect on October 1, 2003; and
(B) the amendments made by subsections (b) and (c) shall
take effect on October 1, 2003, immediately after the amendment
made by section 721(a)(1) of the Bob Stump National Defense
Authorization Act for Fiscal Year 2003 (Public Law 107-314; 116
Stat. 2589).

(2) [NOTE: 38 USC 320 note.] If this Act is enacted on or after
October 1, 2003, the amendments made by this section shall take effect
on the date of the enactment of this Act.

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

(a) Review Required.--Not [NOTE: Deadline.]  later than 60 days
after the date of the enactment of this Act, the Secretary of Defense
shall commence a review, as specified in subsection (c), of the death of
Colonel James S. Sabow, United States Marine Corps, who died on January
22, 1991, at the Marine Corps Air Station, El Toro, California.

(b) Focus of Review.--The principal focus of the review under
subsection (a) shall be to determine the cause of the death of Colonel
Sabow, given the medical and forensic factors associated with that
death.
(c) Review by Outside Experts.--The Secretary of Defense shall
provide that the evidence concerning the cause of the death of Colonel
Sabow and the medical and forensic factors associated with that death
shall be reviewed by medical and forensic experts outside the Department
of Defense.
(d) Report.--Not [NOTE: Deadline.]  later than six months after
the date of the enactment of this Act, the Secretary of Defense shall
submit to the Committee on Armed Services of the Senate and the
Committee on Armed Services of the House of Representatives a written
report on the findings of the review under subsection (a). The Secretary
shall include in the report (1) the Secretary's conclusions as a result
of the review, including the Secretary's conclusions regarding the cause
of death of Colonel Sabow, and (2) the conclusions of the experts
reviewing the matter under subsection (c).

SEC. 585. [NOTE: 10 USC 991 note.] POLICY ON CONCURRENT DEPLOYMENT TO
COMBAT ZONES OF BOTH MILITARY SPOUSES OF MILITARY FAMILIES
WITH MINOR CHILDREN.

(a) Publication of Policy.--Not [NOTE: Deadline.]  later than 180
days after the date of the enactment of this Act, the Secretary of
Defense shall--
(1) prescribe the policy of the Department of Defense on
concurrent deployment to a combat zone of both spouses of a
dual-military family with one or more minor children; and
(2) transmit the policy to the Committees on Armed Services
of the Senate and the House of Representatives.

[[Page 1493]]
117 STAT. 1493

(b) Dual-Military Family Defined.--In this section, the term ``dual-
military family'' means a family in which both spouses are members of
the Armed Forces.

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

An amendment to Department of Defense Directive 1344.7, ``Personal
Commercial Solicitation on DoD Installations'', or cancellation of that
directive, shall not take effect until the end of the 30-day period
beginning on the date on which the Secretary of Defense submits to
Congress notice of the amendment or cancellation and the reasons
therefor.

SEC. 587. STUDY OF NATIONAL GUARD CHALLENGE PROGRAM.

(a) Study Required.--The Secretary of Defense shall conduct a study
to evaluate--
(1) the adequacy and impact of the matching funds
requirement in effect under section 509(d) of title 32, United
States Code, for States to participate in the National Guard
Challenge Program; and
(2) the value of the National Guard Challenge Program to the
Department of Defense.

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

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

(a) Findings.--Congress makes the following findings:
(1) The Department of Defense estimates that there are more
than 10,000 members of the Armed Forces and others who as a
result of activities during the Korean War or the Vietnam War
were placed in a missing status or a prisoner of war status, or
who were determined to have been killed in action, although
remains of those members have not been recovered, and they
remain unaccounted for.
(2) One member of the Armed Forces, Navy Captain Michael
Scott Speicher, remains unaccounted for from the first Persian
Gulf War, and there have been credible reports of his having
been seen alive in Iraq in the years since his aircraft was shot
down on the first night of that war on January 16, 1991.
(3) The United States should pursue every lead and otherwise
maintain a relentless and thorough quest to completely

[[Page 1494]]
117 STAT. 1494

account for the fates of those members of the Armed Forces who
are missing or otherwise unaccounted for.
(4) The Secretary of Defense has the authority to disburse
funds as a reward to individuals who provide information leading
to the conclusive resolution of cases of missing members of the
Armed Forces.

(b) Sense of Congress.--It is the sense of Congress that the
Secretary of Defense should--
(1) use the authority available to the Secretary to disburse
funds rewarding individuals who provide information leading to
the conclusive resolution of the status of any missing member of
the Armed Forces; and
(2) authorize and publicize a reward of $1,000,000 for
information resolving the fate of any member of the Armed
Forces, such as Navy Captain Michael Scott Speicher, who the
Secretary has reason to believe may be alive in captivity.

TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

Subtitle A--Pay and Allowances

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

Subtitle B--Bonuses and Special and Incentive Pays

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

Subtitle C--Travel and Transportation Allowances

Sec. 631. Shipment of privately owned motor vehicle within continental
United States.

[[Page 1495]]
117 STAT. 1495

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

Subtitle D--Retired Pay and Survivor Benefits

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

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

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

Subtitle F--Other Matters

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

Subtitle A--Pay and Allowances [NOTE: 37 USC 1009 note.]

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

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


COMMISSIONED OFFICERS \1\
Years of service computed under section 205 of title 37, United States
Code
------------------------------------------------------------------------
Pay Grade     2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
O-10 \2\........      $0.00      $0.00      $0.00      $0.00       $0.00
O-9.............       0.00       0.00       0.00       0.00        0.00
O-8.............   7,751.10   8,004.90   8,173.20   8,220.60    8,430.30
O-7.............   6,440.70   6,739.80   6,878.40   6,988.50    7,187.40
O-6.............   4,773.60   5,244.30   5,588.40   5,588.40    5,609.70
O-5.............   3,979.50   4,482.90   4,793.40   4,851.60    5,044.80
O-4.............   3,433.50   3,974.70   4,239.90   4,299.00    4,545.30
O-3 \3\.........   3,018.90   3,422.40   3,693.90   4,027.20    4,220.10
O-2 \3\.........   2,608.20   2,970.60   3,421.50   3,537.00    3,609.90

[[Page 1496]]
117 STAT. 1496


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


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

[[Page 1497]]
117 STAT. 1497


O-2E............   4,180.20   4,180.20   4,180.20   4,180.20    4,180.20
O-1E............   3,537.00   3,537.00   3,537.00   3,537.00    3,537.00
------------------------------------------------------------------------


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


ENLISTED MEMBERS \1\
Years of service computed under section 205 of title 37, United States
Code
------------------------------------------------------------------------
Pay Grade      2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
E-9 \2\..........      $0.00      $0.00      $0.00      $0.00      $0.00
E-8..............       0.00       0.00       0.00       0.00       0.00
E-7..............   2,145.00   2,341.20   2,430.60   2,549.70   2,642.10
E-6..............   1,855.50   2,041.20   2,131.20   2,218.80   2,310.00
E-5..............   1,700.10   1,813.50   1,901.10   1,991.10   2,130.60
E-4..............   1,558.20   1,638.30   1,726.80   1,814.10   1,891.50
E-3..............   1,407.00   1,495.50   1,585.50   1,585.50   1,585.50
E-2..............   1,337.70   1,337.70   1,337.70   1,337.70   1,337.70
E-1 \3\..........   1,193.40   1,193.40   1,193.40   1,193.40   1,193.40
------------------------------------------------------
Over 8    Over 10    Over 12    Over 14    Over 16
------------------------------------------------------
E-9 \2\..........      $0.00  $3,769.20  $3,854.70  $3,962.40  $4,089.30
E-8..............   3,085.50   3,222.00   3,306.30   3,407.70   3,517.50
E-7..............   2,801.40   2,891.10   2,980.20   3,139.80   3,219.60
E-6..............   2,516.10   2,596.20   2,685.30   2,763.30   2,790.90
E-5..............   2,250.90   2,339.70   2,367.90   2,367.90   2,367.90
E-4..............   1,891.50   1,891.50   1,891.50   1,891.50   1,891.50

[[Page 1498]]
117 STAT. 1498


E-3..............   1,585.50   1,585.50   1,585.50   1,585.50   1,585.50
E-2..............   1,337.70   1,337.70   1,337.70   1,337.70   1,337.70
E-1 \3\..........   1,193.40   1,193.40   1,193.40   1,193.40   1,193.40
------------------------------------------------------
Over 18    Over 20    Over 22    Over 24    Over 26
------------------------------------------------------
E-9 \2\..........  $4,216.50  $4,421.10  $4,594.20  $4,776.60  $5,054.70
E-8..............   3,715.50   3,815.70   3,986.40   4,081.20   4,314.30
E-7..............   3,295.50   3,341.70   3,498.00   3,599.10   3,855.00
E-6..............   2,809.80   2,809.80   2,809.80   2,809.80   2,809.80
E-5..............   2,367.90   2,367.90   2,367.90   2,367.90   2,367.90
E-4..............   1,891.50   1,891.50   1,891.50   1,891.50   1,891.50
E-3..............   1,585.50   1,585.50   1,585.50   1,585.50   1,585.50
E-2..............   1,337.70   1,337.70   1,337.70   1,337.70   1,337.70
E-1 \3\..........   1,193.40   1,193.40   1,193.40   1,193.40   1,193.40
------------------------------------------------------------------------
\1\ Notwithstanding the basic pay rates specified in this table, the
actual rate of basic pay for enlisted members may not exceed the rate
of pay for level V of the Executive Schedule.
\2\ Subject to the preceding footnote, the rate of basic pay for an
enlisted member in this grade while serving as Sergeant Major of the
Army, Master Chief Petty Officer of the Navy, Chief Master Sergeant of
the Air Force, Sergeant Major of the Marine Corps, or Master Chief
Petty Officer of the Coast Guard, is $6,090.90, regardless of
cumulative years of service computed under section 205 of title 37,
United States Code.
\3\ In the case of members in pay grade E-1 who have served less than 4
months on active duty, the rate of basic pay is $1,104.00.

SEC. 602. REVISED ANNUAL PAY ADJUSTMENT PROCESS.

(a) Requirement for Annual Adjustment.--Subsection (a) of section
1009 of title 37, United States Code, is amended to read as follows:
``(a) Requirement for Annual Adjustment.--Effective on January 1 of
each year, the rates of basic pay for members of the uniformed services
under section 203(a) of this title shall be increased under this
section.''.
(b) Effectiveness of Adjustment.--Subsection (b) of such section is
amended by striking ``shall--'' and all that follows and inserting
``shall have the force and effect of law.''.
(c) Percentage of Adjustment; Alternative Pay Adjustment
Authority.--Such section is further amended--
(1) by striking subsections (c), (d), (e), and (g);
(2) by redesignating subsection (f) as subsection (d);
(3) by inserting after subsection (b) the following new
subsection (c):

``(c) Equal Percentage Increase for All Members.--(1) An adjustment
made under this section in a year shall provide all eligible members
with an increase in the monthly basic pay that is the percentage
(rounded to the nearest one-tenth of one percent) by which the ECI for
the base quarter of the year before the preceding year exceeds the ECI
for the base quarter of the second year before the preceding calendar
year (if at all).
``(2) Notwithstanding paragraph (1), but subject to subsection (d),
the percentage of the adjustment taking effect under this section during
each of fiscal years 2004, 2005, and 2006, shall be one-half of one
percentage point higher than the percentage that would otherwise be
applicable under such paragraph.
``(3) In this subsection:

[[Page 1499]]
117 STAT. 1499

``(A) The term `ECI' means the Employment Cost Index (wages
and salaries, private industry workers) published quarterly by
the Bureau of Labor Statistics.
``(B) The term `base quarter' for any year is the three-
month period ending on September 30 of such year.''; and
(4) by adding at the end the following new subsection:

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

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

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

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

Section 402 of title 37, United States Code, is amended--
(1) by redesignating subsections (f) and (g) as subsections
(g) and (h), respectively; and
(2) by inserting after subsection (e) the following new
subsection:

``(f) Special Rule for High-Cost Duty Locations and Other Unique and
Unusual Circumstances.--The Secretary of Defense may authorize a member
of the armed forces who is not entitled to the meals portion of the per
diem in connection with an assignment in a high-cost duty location or
under other unique and unusual circumstances, as determined by the
Secretary, to receive any or all of the following:

[[Page 1500]]
117 STAT. 1500

``(1) Meals at no cost to the member, regardless of the
entitlement of the member to a basic allowance for subsistence
under subsection (a).
``(2) A basic allowance for subsistence at the standard
rate, regardless of the entitlement of the member for all meals
or select meals during the duty day.
``(3) A supplemental subsistence allowance at a rate higher
than the basic allowance for subsistence rates in effect under
this section, regardless of the entitlement of the member for
all meals or select meals during the duty day.''.

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

(a) Entitlement.--Section 403(f)(2)(C) of title 37, United States
Code, is amended--
(1) in the first sentence, by striking ``are jointly
entitled to one basic allowance for housing'' and inserting
``are each entitled to a basic allowance for housing''; and
(2) by striking ``The amount of the allowance'' and all that
follows and inserting ``The amount of the allowance payable to a
member under the preceding sentence shall be based on the
without dependents rate for the pay grade of the member.''.

(b) [NOTE: 37 USC 403 note.] Effective Date.--The amendments made
by subsection (a) shall take effect as of October 1, 2003, and apply to
months beginning on or after that date.

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

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

Subtitle B--Bonuses and Special and Incentive Pays

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

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

[[Page 1501]]
117 STAT. 1501

(e) Ready Reserve Enlistment and Reenlistment Bonus.--Section
308h(g) of such title is amended by striking ``December 31, 2003'' and
inserting ``December 31, 2004''.
(f) Prior Service Enlistment Bonus.--Section 308i(f ) of such title
is amended by striking ``December 31, 2003'' and inserting ``December
31, 2004''.

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

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

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

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

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

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

[[Page 1502]]
117 STAT. 1502

(e) Accession Bonus for New Officers in Critical Skills.--Section
324(g) of such title is amended by striking ``December 31, 2003'' and
inserting ``December 31, 2004''.

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

(a) Additional Type of Duty Eligible for Pay.--Section 301(a) of
title 37, United States Code, is amended--
(1) in paragraph (11), by striking ``or'' at the end;
(2) by redesignating paragraph (12) as paragraph (13); and
(3) by inserting after paragraph (11) the following new
paragraph:
``(12) involving use of ski-equipped aircraft on the ground
in Antarctica or on the Arctic ice-pack; or''.

(b) Monthly Amount.--Subsection (c) of such section is amended--
(1) in paragraph (1), by striking ``(11)'' and inserting
``(12)''; and
(2) in paragraph (2)(A), by striking ``(12)'' and inserting
``(13)''.

(c) Technical Amendments.--(1) Subsections (a)(2), (b), (c), and
(f)(2)(A) of such section are amended by striking ``clause'' each place
it appears and inserting ``paragraph''.
(2) Subsection (c)(1) of such section is amended by striking
``clauses'' and inserting ``paragraphs''.
(d) [NOTE: 37 USC 301 note.] Effective Date.--Paragraph (12) of
section 301(a) of title 37, United States Code, as added by subsection
(a)(3), shall apply to duty described in such paragraph that is
performed on or after October 1, 2003.

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

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

``(2) An officer of the armed forces referred to in paragraph (1) is
an officer who is entitled to the basic pay under section 204 of this
title, or the compensation under section 206 of this title, of pay grade
O-6 or below.'';
(2) by redesignating subsections (b) through (e) as
subsections (c) through (f), respectively; and
(3) by inserting after subsection (a) the following new
subsection (b):

``(b) If an officer entitled to compensation under section 206 of
this title is paid special pay under subsection (a) for the performance
of duties in a position designated under such subsection, the special
pay shall be paid at the rate of \1/30\ of the monthly rate authorized
by such subsection for each day of the performance of duties in the
designated position.''.
(b) Limitation.--Subsection (d) of such section, as redesignated by
subsection (a)(2) of this section, is amended--

[[Page 1503]]
117 STAT. 1503

(1) by inserting ``(1)'' after ``(d)'';
(2) in paragraph (1), as so designated, by inserting ``or
mobilization in support of a contingency operation'' after
``training''; and
(3) by adding at the end the following new paragraph:

``(2) Of the number of officers in the Selected Reserve of the Ready
Reserve of an armed force who are not on active duty (other than for
training or mobilization in support of a contingency operation), not
more than 5 percent of the number of such officers in each of the pay
grades O-3 and below, and not more than 10 percent of the number of such
officers in pay grade O-4, O-5, or O-6, may be paid special pay under
subsection (b).''.

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

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

``(d) Payment to Mobilized Members.--A member entitled to a bonus
under this section who is called or ordered to active duty shall be
paid, during that period of active duty, any amount of the bonus that
becomes payable to the member during that period of active duty.''.

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

(a) Expansion and Clarification of Current Law.--Section 310 of
title 37, United States Code, is amended--
(1) by redesignating subsections (b) and (c) as subsections
(c) and (d), respectively; and
(2) by striking subsection (a) and inserting the following
new subsections:

``(a) Eligibility and Special Pay Amount.--Under regulations
prescribed by the Secretary of Defense, a member of a uniformed service
may be paid special pay at the rate of $150 for any month in which--
``(1) the member was entitled to basic pay or compensation
under section 204 or 206 of this title; and
``(2) the member--
``(A) was subject to hostile fire or explosion of
hostile mines;
``(B) was on duty in an area in which the member was
in imminent danger of being exposed to hostile fire or
explosion of hostile mines and in which, during the
period the member was on duty in the area, other members
of the uniformed services were subject to hostile fire
or explosion of hostile mines;
``(C) was killed, injured, or wounded by hostile
fire, explosion of a hostile mine, or any other hostile
action; or
``(D) was on duty in a foreign area in which the
member was subject to the threat of physical harm or
imminent

[[Page 1504]]
117 STAT. 1504

danger on the basis of civil insurrection, civil war,
terrorism, or wartime conditions.

``(b) Continuation During Hospitalization.--A member covered by
subsection (a)(2)(C) who is hospitalized for the treatment of the injury
or wound may be paid special pay under this section for not more than
three additional months during which the member is so hospitalized.''.
(b) Clerical Amendments.--Such section is further amended--
(1) in subsection (c), as redesignated by subsection (a)(1),
by inserting ``Limitations and Administration.--'' before
``(1)''; and
(2) in subsection (d), as redesignated by subsection (a)(1),
by inserting ``Determinations of Fact.--'' before ``Any''.

(c) [NOTE: 37 USC 310 note.] 4Effective Date.--Subsections (a) and
(b) of section 310 of title 37, United States Code, as added by
subsection (a)(2), shall take effect as of September 11, 2001.

(d) Relation to Temporary Increase in Authorized Amount of Hostile
Fire and Imminent Danger Special Pay.--(1) The amendment made by
subsection (a)(2) does not affect the authority to pay an increased
amount of hostile fire and imminent danger special pay under section 310
of title 37, United States Code, pursuant to--
(A) the amendment made by subsection (a) of section 1316 of
Public Law 108-11 (
117 Stat. 570) during the period specified in
subsection (c)(1) of such section, as modified by section 113 of
Public Law 108-84 (
117 Stat. 1044); or
(B) the amendment made by section 619 of this Act during the
period specified in such amendment.

(2) Effective as of April 16, 2003, section 1316(c)(2) of Public Law
108-11 (
117 Stat. 570) is amended by inserting ``the dollar amounts
specified in'' before ``sections''.

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

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

SEC. 620. [NOTE: 37 USC 310 note.] RETROACTIVE PAYMENT OF HOSTILE FIRE
OR IMMINENT DANGER PAY FOR SERVICE IN EASTERN MEDITERRANEAN
SEA IN OPERATION IRAQI FREEDOM.

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

[[Page 1505]]
117 STAT. 1505

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

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

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

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

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

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

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

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

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

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

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

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

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

``(a) Special Pay Authorized.--The Secretary of a military
department may pay special pay under this subsection to members of an
armed force under the jurisdiction of the Secretary who are entitled to
basic pay under section 204 and are assigned by orders to duty as
members of a Weapons of Mass Destruction Civil Support Team if the
Secretary determines that the payment of such special pay is needed to
address recruitment or retention concerns in that armed force.
``(b) Monthly Rate.--The monthly rate of special pay under
subsection (a) may not exceed $150.

[[Page 1506]]
117 STAT. 1506

``(c) Inclusion of Reserve Component Members Performing Inactive
Duty Training.--(1) To the extent funds are made available to carry out
this subsection, the Secretary of a military department may pay the
special pay under subsection (a) to members of a reserve component of
the armed forces who are entitled to compensation under section 206 of
this title and who perform duty under orders as members of a Weapons of
Mass Destruction Civil Support Team.
``(2) The amount of the special pay for a member referred to in
paragraph (1) shall be equal to \1/30\ of the monthly special pay rate
in effect under subsection (b) for each day on which the member performs
duty under orders as members of a Weapons of Mass Destruction Civil
Support Team.
``(d) Regulations.--Special pay under this section shall be provided
in accordance with regulations prescribed by the Secretary of Defense.
``(e) Definition.--In this section, the term `Weapons of Mass
Destruction Civil Support Team' means a team of members of the reserve
components of the armed forces that is established under section
12310(c) of title 10 in support of emergency preparedness programs to
prepare for or to respond to any emergency involving the use of a weapon
of mass destruction.''.

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

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

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

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

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

``(a) Incentive Bonus Authorized.--The Secretary concerned may pay a
bonus under this section to an eligible member of the armed forces who
executes a written agreement to convert to, and serve for a period of
not less than three years in, a military occupational specialty for
which there is a shortage of trained and qualified personnel.
``(b) Eligible Members.--A member is eligible to enter into an
agreement under subsection (a) if--
``(1) the member is entitled to basic pay; and
``(2) at the time the agreement is executed, the member is
serving in--
``(A) pay grade E-6, with not more than 10 years of
service computed under section 205 of this title; or
``(B) pay grade E-5 or below, regardless of years of
service.

``(c) Amount and Payment of Bonus.--(1) A bonus under this section
may not exceed $4,000.
``(2) A bonus payable under this section shall be disbursed in one
lump sum when the member's conversion to the military occupational
specialty is approved by the chief personnel officer of the member's
armed force.

[[Page 1507]]
117 STAT. 1507

``(d) Relationship to Other Pay and Allowances.--A bonus paid to a
member under this section is in addition to any other pay and allowances
to which the member is entitled.
``(e) Repayment of Bonus.--(1) A member who receives a bonus under
this section and who, voluntarily or because of misconduct, fails to
serve in such military occupational specialty for the period specified
in the agreement executed under subsection (a) shall refund to the
United States an amount that bears the same ratio to the bonus amount
paid to the member as the unserved part of such period bears to the
total period agreed to be served.
``(2) An obligation to reimburse the United States imposed under
paragraph (1) is, for all purposes, a debt owed to the United States.
``(3) A discharge in bankruptcy under title 11 that is entered less
than five years after the termination of the agreement for which a bonus
was paid under this section shall not discharge the person signing such
agreement from the debt arising under paragraph (1).
``(4) Under regulations prescribed pursuant to subsection (f), the
Secretary concerned may waive, in whole or in part, a refund required
under paragraph (1) if the Secretary determines that recovery would be
against equity and good conscience or would be contrary to the best
interests of the United States.
``(f) Regulations.--The Secretaries concerned shall prescribe
regulations to carry out this section. Regulations prescribed by the
Secretary of a military department shall be subject to the approval of
the Secretary of Defense.
``(g) Termination of Authority.--No agreement under this section may
be entered into after December 31, 2006.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new item:

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

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

(a) Critical Skill Reenlistment Bonus.--Section 308(a) of title 37,
United States Code, is amended by adding at the end the following new
paragraph:
``(5) The Secretary of Defense may waive the eligibility requirement
in paragraph (1)(B) in the case of a reenlistment or voluntary extension
of enlistment by a member of the armed forces that is entered into as
described in this subsection while the member is serving on active duty
in Afghanistan, Iraq, or Kuwait in support of Operation Enduring Freedom
or Operation Iraqi Freedom.''.
(b) Selected Reserve Reenlistment Bonus.--Section 308b(c) of such
title is amended by adding at the end the following new paragraph:
``(3) In the case of a reenlistment or voluntary extension of
enlistment by a member of the armed forces that is entered into as
described in subsection (a) while the member is serving on active duty
in Afghanistan, Iraq, or Kuwait in support of Operation Enduring Freedom
or Operation Iraqi Freedom, the Secretary concerned may waive so much of
paragraph (1)(B) or subsection (a)(2) as requires that the skill or unit
in which the member reenlists

[[Page 1508]]
117 STAT. 1508

or extends an enlistment be a designated skill or designated unit
determined by the Secretary concerned.''.
(c) Ready Reserve Reenlistment Bonus.--Section 308h(a) of such title
is amended by adding at the end the following new paragraph:
``(4) The Secretary concerned may waive the eligibility requirement
in paragraph (2)(B) in the case of a reenlistment or voluntary extension
of enlistment by a member of the armed forces that is entered into as
described in this subsection while the member is serving on active duty
in Afghanistan, Iraq, or Kuwait in support of Operation Enduring Freedom
and Operation Iraqi Freedom.''.
(d) Retroactive Application.--The [NOTE: Effective date. 37 USC 308
note.]  amendments made by this section shall take effect as of March
18, 2003, and apply with respect to reenlistments or the voluntary
extension of enlistments that are entered into on or after that date.

Subtitle C--Travel and Transportation Allowances

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

(a) Authority To Procure Contract for Transportation of Motor
Vehicle.--Section 2634 of title 10, United States Code, is amended--
(1) by redesignating subsection (h) as subsection (i); and
(2) by inserting after subsection (g) the following new
subsection (h):

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

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

Section 411h(a) of title 37, United States Code, is amended--
(1) in paragraph (1), by striking ``military control'' and
inserting ``control''; and
(2) in paragraph (2)(A)--
(A) by striking ``or is entitled'' and inserting ``,
is entitled''; and

[[Page 1509]]
117 STAT. 1509

(B) by inserting before the semicolon at the end the
following: ``, or is retired for the illness or injury
referred to in subparagraph (B)''.

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

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

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

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

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

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

[[Page 1510]]
117 STAT. 1510

(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
2636 the following new item:

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

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

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

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

``(a) Payment or Reimbursement Authorized.--The Secretary concerned
may pay or reimburse a member of the armed forces assigned to temporary
duty as described in subsection (b) for lodging expenses incurred by the
member at the temporary duty location while the member is in an
authorized leave status.
``(b) Covered Members.--Subsection (a) applies with respect to a
member assigned to temporary duty, for a period of more than 30 days, in
support of a contingency operation or in other specific situations
designated by the Secretary concerned if the member----
``(1) immediately before taking the authorized leave, was
performing the temporary duty at a location away from the home
or permanent duty station of the member;
``(2) was receiving a per diem allowance under section
404(a)(4) of this title to cover lodging and subsistence
expenses incurred at the temporary duty location because
quarters of the United States were not available for assignment
to the member at that location; and
``(3) immediately after completing the authorized leave,
returns to the duty location.

``(c) Payment Limitation.--The amount paid or reimbursed under
subsection (a) for a member may not exceed the lesser of--
``(1) the actual daily cost of lodging incurred by the
member at the temporary duty location while the member was in an
authorized leave status; and
``(2) the lodging portion of the applicable daily per diem
rate for the temporary duty location.''.

[[Page 1511]]
117 STAT. 1511

(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
404a the following new item:

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

Subtitle D--Retired Pay and Survivor Benefits

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

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

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

``(a) Payment of Both Retired Pay and Compensation.--
``(1) In general.--Subject to subsection (b), a member or
former member of the uniformed services who is entitled for any
month to retired pay and who is also entitled for that month to
veterans' disability compensation for a qualifying service-
connected disability (hereinafter in this section referred to as
a `qualified retiree') is entitled to be paid both for that
month without regard to sections 5304 and 5305 of title 38.
During the period beginning on January 1, 2004, and ending on
December 31, 2013, payment of retired pay to such a qualified
retiree is subject to subsection (c).
``(2) Qualifying service-connected disability.--In this
section, the term `qualifying service-connected disability'
means a service-connected disability or combination of service-
connected disabilities that is rated as not less than 50 percent
disabling by the Secretary of Veterans Affairs.

``(b) Special Rules for Chapter 61 Disability Retirees.--
``(1) Career retirees.--The retired pay of a member retired
under chapter 61 of this title with 20 years or more of service
otherwise creditable under section 1405 of this title, or at
least 20 years of service computed under section 12732 of this
title, at the time of the member's retirement is subject to
reduction under sections 5304 and 5305 of title 38, but only to
the extent that the amount of the member's retired pay under
chapter 61 of this title exceeds the amount of retired pay to
which the member would have been entitled under any other
provision of law based upon the member's service in the
uniformed services if the member had not been retired under
chapter 61 of this title.
``(2) Disability retirees with less than 20 years of
service.--Subsection (a) does not apply to a member retired
under chapter 61 of this title with less than 20 years of
service otherwise creditable under section 1405 of this title,
or with less than 20 years of service computed under section
12732 of this title, at the time of the member's retirement.

[[Page 1512]]
117 STAT. 1512

``(c) Phase-in of Full Concurrent Receipt.--During the period
beginning on January 1, 2004, and ending on December 31, 2013, retired
pay payable to a qualified retiree shall be determined as follows:
``(1) Calendar year 2004.--For a month during 2004, the
amount of retired pay payable to a qualified retiree is the
amount (if any) of retired pay in excess of the current baseline
offset plus the following:
``(A) For a month for which the retiree receives
veterans' disability compensation for a disability rated
as total, $750.
``(B) For a month for which the retiree receives
veterans' disability compensation for a disability rated
as 90 percent, $500.
``(C) For a month for which the retiree receives
veterans' disability compensation for a disability rated
as 80 percent, $350.
``(D) For a month for which the retiree receives
veterans' disability compensation for a disability rated
as 70 percent, $250.
``(E) For a month for which the retiree receives
veterans' disability compensation for a disability rated
as 60 percent, $125.
``(F) For a month for which the retiree receives
veterans' disability compensation for a disability rated
as 50 percent, $100.
``(2) Calendar year 2005.--For a month during 2005, the
amount of retired pay payable to a qualified retiree is the sum
of--
``(A) the amount specified in paragraph (1) for that
qualified retiree; and
``(B) 10 percent of the difference between (i) the
current baseline offset, and (ii) the amount specified
in paragraph (1) for that member's disability.
``(3) Calendar year 2006.--For a month during 2006, the
amount of retired pay payable to a qualified retiree is the sum
of--
``(A) the amount determined under paragraph (2) for
that qualified retiree; and
``(B) 20 percent of the difference between (i) the
current baseline offset, and (ii) the amount determined
under paragraph (2) for that qualified retiree.
``(4) Calendar year 2007.--For a month during 2007, the
amount of retired pay payable to a qualified retiree is the sum
of--
``(A) the amount determined under paragraph (3) for
that qualified retiree; and
``(B) 30 percent of the difference between (i) the
current baseline offset, and (ii) the amount determined
under paragraph (3) for that qualified retiree.
``(5) Calendar year 2008.--For a month during 2008, the
amount of retired pay payable to a qualified retiree is the sum
of--
``(A) the amount determined under paragraph (4) for
that qualified retiree; and

[[Page 1513]]
117 STAT. 1513

``(B) 40 percent of the difference between (i) the
current baseline offset, and (ii) the amount determined
under paragraph (4) for that qualified retiree.
``(6) Calendar year 2009.--For a month during 2009, the
amount of retired pay payable to a qualified retiree is the sum
of--
``(A) the amount determined under paragraph (5) for
that qualified retiree; and
``(B) 50 percent of the difference between (i) the
current baseline offset, and (ii) the amount determined
under paragraph (5) for that qualified retiree.
``(7) Calendar year 2010.--For a month during 2010, the
amount of retired pay payable to a qualified retiree is the sum
of--
``(A) the amount determined under paragraph (6) for
that qualified retiree; and
``(B) 60 percent of the difference between (i) the
current baseline offset, and (ii) the amount determined
under paragraph (6) for that qualified retiree.
``(8) Calendar year 2011.--For a month during 2011, the
amount of retired pay payable to a qualified retiree is the sum
of--
``(A) the amount determined under paragraph (7) for
that qualified retiree; and
``(B) 70 percent of the difference between (i) the
current baseline offset, and (ii) the amount determined
under paragraph (7) for that qualified retiree.
``(9) Calendar year 2012.--For a month during 2012, the
amount of retired pay payable to a qualified retiree is the sum
of--
``(A) the amount determined under paragraph (8) for
that qualified retiree; and
``(B) 80 percent of the difference between (i) the
current baseline offset, and (ii) the amount determined
under paragraph (8) for that qualified retiree.
``(10) Calendar year 2013.--For a month during 2013, the
amount of retired pay payable to a qualified retiree is the sum
of--
``(A) the amount determined under paragraph (9) for
that qualified retiree; and
``(B) 90 percent of the difference between (i) the
current baseline offset, and (ii) the amount determined
under paragraph (9) for that qualified retiree.
``(11) General limitation.--Retired pay determined under
this subsection for a qualified retiree, if greater than the
amount of retired pay otherwise applicable to that qualified
retiree, shall be reduced to the amount of retired pay otherwise
applicable to that qualified retiree.

``(d) Coordination With Combat-Related Special Compensation
Program.--
``(1) In general.--A person who is a qualified retiree under
this section and is also an eligible combat-related disabled
uniformed services retiree under section 1413a of this title may
receive special compensation in accordance with that section or
retired pay in accordance with this section, but not both.

[[Page 1514]]
117 STAT. 1514

``(2) Annual open season.--The Secretary concerned shall
provide for an annual period (referred to as an `open season')
during which a person described in paragraph (1) shall have the
right to make an election to change from receipt of special
compensation in accordance with section 1413a of this title to
receipt of retired pay in accordance with this section, or the
reverse, as the case may be. Any such election shall be made
under regulations prescribed by the Secretary concerned. Such
regulations shall provide for the form and manner for making
such an election and shall provide for the date as of when such
an election shall become effective. In the case of the Secretary
of a military department, such regulations shall be subject to
approval by the Secretary of Defense.

``(e) Definitions.--In this section:
``(1) Retired pay.--The term `retired pay' includes retainer
pay, emergency officers' retirement pay, and naval pension.
``(2) Veterans' disability compensation.--The term
`veterans' disability compensation' has the meaning given the
term `compensation' in section 101(13) of title 38.
``(3) Disability rated as total.--The term `disability rated
as total' means--
``(A) a disability, or combination of disabilities,
that is rated as total under the standard schedule of
rating disabilities in use by the Department of Veterans
Affairs; or
``(B) a disability, or combination of disabilities,
for which the scheduled rating is less than total but
for which a rating of total is assigned by reason of
inability of the disabled person concerned to secure or
follow a substantially gainful occupation as a result of
disabilities for which veterans' disability compensation
may be paid.
``(4) Current baseline offset.--
``(A) In general.--The term `current baseline
offset' for any qualified retiree means the amount for
any month that is the lesser of--
``(i) the amount of the applicable monthly
retired pay of the qualified retiree for that
month; and
``(ii) the amount of monthly veterans'
disability compensation to which the qualified
retiree is entitled for that month.
``(B) Applicable retired pay.--In subparagraph (A),
the term `applicable retired pay' for a qualified
retiree means the amount of monthly retired pay to which
the qualified retiree is entitled, determined without
regard to this section or sections 5304 and 5305 of
title 38, except that in the case of such a retiree who
was retired under chapter 61 of this title, such amount
is the amount of retired pay to which the member would
have been entitled under any other provision of law
based upon the member's service in the uniformed
services if the member had not been retired under
chapter 61 of this title.''.

(b) Repeal of Superceded Special Compensation Authority.--Section
1413 of title 10, United States Code, is repealed.

(c) Source of Funds for Special Compensation Authorities for
Department of Defense Retirees.--

[[Page 1515]]
117 STAT. 1515

(1) Sections 1413(g) and 1413a(h) of title 10, United States
Code, are each amended--
(A) by inserting before ``Payments under'' the
following new sentence: ``Payments under this section
for a member of the Army, Navy, Air Force, or Marine
Corps shall be paid from the Department of Defense
Military Retirement Fund.''; and
(B) by inserting ``for any other member'' before
``for any fiscal year''.
(2) Section 1463(a)(1) of such title is amended by inserting
before the semicolon the following: ``and payments under section
1413, 1413a, or 1414 of this title paid to such members''.
(3) Section 1465(b) of such title is amended by adding at
the end the following new paragraph:

``(3) At the same time that the Secretary of Defense makes the
determination required by paragraph (1) for any fiscal year, the
Secretary shall determine the amount of the Treasury contribution to be
made to the Fund for the next fiscal year under section 1466(b)(2)(D) of
this title. That amount shall be determined in the same manner as the
determination under paragraph (1) of the total amount of Department of
Defense contributions to be made to the Fund during that fiscal year
under section 1466(a) of this title, except that for purposes of this
paragraph the Secretary, in making the calculations required by
subparagraphs (A) and (B) of that paragraph, shall use the single level
percentages determined under subsection (c)(4), rather than those
determined under subsection (c)(1).''.
(4) Section 1465(c) of such title is amended--
(A) in paragraph (1)--
(i) in subparagraph (A), by inserting before
the semicolon at the end the following: ``, to be
determined without regard to section 1413, 1413a,
or 1414 of this title'';
(ii) in subparagraph (B), by inserting before
the period at the end the following: ``, to be
determined without regard to section 1413, 1413a,
or 1414 of this title''; and
(iii) in the sentence following subparagraph
(B), by striking ``subsection (b)'' and inserting
``subsection (b)(1)'';
(B) by redesignating paragraph (4) as paragraph (5);
and
(C) by inserting after paragraph (3) the following
new paragraph (4):

``(4) Whenever the Secretary carries out an actuarial valuation
under paragraph (1), the Secretary shall include as part of such
valuation the following:
``(A) A determination of a single level percentage
determined in the same manner as applies under subparagraph (A)
of paragraph (1), but based only upon the provisions of sections
1413, 1413a, and 1414 of this title.
``(B) A determination of a single level percentage
determined in the same manner as applies under subparagraph (B)
of paragraph (1), but based only upon the provisions of sections
1413, 1413a, and 1414 of this title.

Such single level percentages shall be used for the purposes of
subsection (b)(3).''.

[[Page 1516]]
117 STAT. 1516

(5) Section 1466(b) of such title is amended--
(A) in paragraph (1), by striking ``sections 1465(a)
and 1465(c)'' and inserting ``sections 1465(a),
1465(b)(3), 1465(c)(2), and 1465(c)(3)''; and
(B) by adding at the end of paragraph (2) the
following new subparagraph:
``(D) The amount for that year determined by the Secretary
of Defense under section 1465(b)(3) of this title for the cost
to the Fund arising from increased amounts payable from the Fund
by reason of section 1413, 1413a, or 1414 of this title.''.
(6) [NOTE: Effective date. 10 USC 1413a note.] The
amendments made by this subsection shall take effect as of
October 1, 2003. The Secretary of Defense shall provide for such
administrative adjustments as necessary to provide for payments
made for any period during fiscal year 2004 before the date of
the enactment of this Act to be treated as having been made in
accordance with such amendments and for the provisions of such
amendments to be implemented as if enacted as of September 30,
2003.

(d) Clerical Amendments.--The table of sections at the beginning of
chapter 71 of such title is amended--
(1) by striking the item relating to section 1413; and
(2) by striking the item relating to section 1414 and
inserting the following:

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

(e) [NOTE: 10 USC 1414 note.] Effective Date.--The amendments made
by subsections (a) and (b) shall take effect on January 1, 2004, and
shall apply to payments for months beginning on or after that date.

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

(a) Extension of Program to Combat-Related Disabilities Rated Below
60 Percent.--(1) Subsection (e) of section 1413a of title 10, United
States Code, is amended to read as follows:
``(e) Combat-Related Disability.--In this section, the term `combat-
related disability' means a disability that is compensable under the
laws administered by the Secretary of Veterans Affairs and that--
``(1) is attributable to an injury for which the member was
awarded the Purple Heart; or
``(2) was incurred (as determined under criteria prescribed
by the Secretary of Defense)--
``(A) as a direct result of armed conflict;
``(B) while engaged in hazardous service;
``(C) in the performance of duty under conditions
simulating war; or
``(D) through an instrumentality of war.''.

(2) Subsection (c)(2) of such section is amended by striking
``qualifying''.
(b) Clarification of Service Required for Eligibility.--Subsection
(c)(1) of such section is amended by inserting before the semicolon the
following: ``or is entitled to retired pay under section 12731 of this
title (other than by reason of section 12731b of this title)''.
(c) Clarification of Determination of Amount of Compensation.--
Subsection (b)(1) of such section is amended by

[[Page 1517]]
117 STAT. 1517

striking ``for a'' and all that follows and inserting ``under subsection
(a) for any month is the amount of compensation to which the retiree is
entitled under title 38 for that month, determined without regard to any
disability of the retiree that is not a combat-related disability.''.
(d) Revised Coordination Provision.--Subsection (f) of such section
is amended to read as follows:
``(f) Coordination With Concurrent Receipt Provision.--Subsection
(d) of section 1414 of this title provides for coordination between
benefits under that section and under this section.''.
(e) Clerical Amendments.--(1) The heading of such section is amended
to read as follows:

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

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

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

(f) Effective Date.--The [NOTE: Applicability. 10 USC 1413a
note.]  amendments made by subsections (a), (b), and (c) shall apply to
payments under section 1413a of title 10, United States Code, for months
beginning on or after January 1, 2004. The amendment made by subsection
(d) shall take effect on January 1, 2004.

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

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

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

(a) Surviving Spouse Annuity.--Paragraph (1) of section 1448(f) of
title 10, United States Code, is amended to read as follows:
``(1) Surviving spouse annuity.--The Secretary concerned
shall pay an annuity under this subchapter to the surviving
spouse of a person who--
``(A) is eligible to provide a reserve-component
annuity and dies--
``(i) before being notified under section
12731(d) of this title that he has completed the
years of service required for eligibility for
reserve-component retired pay; or

[[Page 1518]]
117 STAT. 1518

``(ii) during the 90-day period beginning on
the date he receives notification under section
12731(d) of this title that he has completed the
years of service required for eligibility for
reserve-component retired pay if he had not made
an election under subsection (a)(2)(B) to
participate in the Plan; or
``(B) is a member of a reserve component not
described in subparagraph (A) and dies from an injury or
illness incurred or aggravated in the line of duty
during inactive-duty training.''.

(b) Conforming Amendment.--The heading for subsection (f) of section
1448 of such title is amended by inserting ``or Before'' after ``Dying
When''.
(c) [NOTE: Applicability. 10 USC 1448 note.] Effective Date.--
Subparagraph (B) of section 1448(f)(1) of title 10, United States Code,
as added by subsection (a), shall take effect as of September 10, 2001,
and shall apply with respect to performance of inactive-duty training
(as defined in section 101(d) of title 10, United States Code) on or
after that date.

SEC. 645. SURVIVOR BENEFIT PLAN MODIFICATIONS.

(a) Eligibility of Dependent Children for Survivor Annuities in
Cases of Deaths of Members on Active Duty.--(1) Paragraph (2) of section
1448(d) of title 10, United States Code, is amended to read as follows:
``(2) Dependent children.--
``(A) Annuity when no eligible surviving spouse.--In
the case of a member described in paragraph (1), the
Secretary concerned shall pay an annuity under this
subchapter to the member's dependent children under
section 1450(a)(2) of this title as applicable.
``(B) Optional annuity when there is an eligible
surviving spouse.--In the case of a member described in
paragraph (1) who dies on or after the date of the
enactment of the National Defense Authorization Act for
Fiscal Year 2004 and for whom there is a surviving
spouse eligible for an annuity under paragraph (1), the
Secretary may pay an annuity under this subchapter to
the member's dependent children under section 1450(a)(3)
of this title, if applicable, instead of paying an
annuity to the surviving spouse under paragraph (1), if
the Secretary concerned, in consultation with the
surviving spouse, determines it appropriate to provide
an annuity for the dependent children under this
paragraph instead of an annuity for the surviving spouse
under paragraph (1).''.

(2) Paragraph (1) of such section is amended by striking ``The
Secretary concerned'' and inserting ``Except as provided in paragraph
(2)(B), the Secretary concerned''.
(b) Vitiation of Survivor Annuity Elections Made by Disability
Retirees Who Die of Disability-Related Causes.--(1) Section 1448(b)(1)
of such title is amended by adding at the end the following new
subparagraph:
``(F) Vitiation of election by disability retiree
who dies of disability-related cause.--If a member
retired on or after the date of the enactment of the
National Defense Authorization Act for Fiscal Year 2004
under chapter 61 of this title dies within one year
after the date on which the member is so retired and the
cause

[[Page 1519]]
117 STAT. 1519

of death is related to a disability for which the member
was retired under that chapter (as determined under
regulations prescribed by the Secretary of Defense)--
``(i) an election made by the member under
paragraph (1) to provide an annuity under the Plan
to any person other than a dependent of that
member (as defined in section 1072(2) of this
title) is vitiated; and
``(ii) the amounts by which the member's
retired pay was reduced under section 1452 of this
title shall be refunded and paid to the person to
whom the annuity under the Plan would have been
paid pursuant to such election.''.

(2) Section 1458 of such title is amended by adding at the end the
following new subsection:
``(j) Vitiation of Election by Disability Retiree Who Dies of
Disability-Related Cause.--If a member retired on or after the date of
the enactment of the National Defense Authorization Act for Fiscal Year
2004 under chapter 61 of this title dies within one year after the date
on which the member is so retired and the cause of death is related to a
disability for which the member was retired under that chapter (as
determined under regulations prescribed by the Secretary of Defense)--
``(1) an election made by the member to provide a
supplemental spouse annuity under this subchapter is vitiated;
and
``(2) the amounts by which the member's retired pay was
reduced under section 1460 of this title shall be refunded and
paid to the person to whom the supplemental spouse annuity would
have been paid pursuant to such election.''.

(c) Insurable Interest Annuity Deemed Elections.--Section 1448(d) of
such title is amended by adding at the end the following new paragraph:
``(6) Deemed election.--
``(A) Annuity for dependent.--In the case of a
member described in paragraph (1) who dies on or after
the date of the enactment of the National Defense
Authorization Act for Fiscal Year 2004, the Secretary
concerned may, if no other annuity is payable on behalf
of the member under this subchapter, pay an annuity to a
natural person who has an insurable interest in such
member as if the annuity were elected by the member
under subsection (b)(1). The Secretary concerned may pay
such an annuity under this paragraph only in the case of
a person who is a dependent of that member (as defined
in section 1072(2) of this title).
``(B) Computation of annuity.--An annuity under this
subparagraph shall be computed under section 1451(b) of
this title as if the member had retired for total
disability on the date of death with reductions as
specified under section 1452(c) of this title, as
applicable to the ages of the member and the natural
person with an insurable interest.''.

[[Page 1520]]
117 STAT. 1520

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

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

SEC. 647. DEATH BENEFITS STUDY.

(a) Sense of Congress.--It is the sense of Congress that--
(1) the sacrifices made by the members of the Armed Forces
are significant and are worthy of meaningful expressions of
gratitude by the United States, especially in cases of sacrifice
through loss of life;
(2) the tragic events of September 11, 2001, and subsequent
worldwide combat operations in the Global War on Terrorism and
in Operation Iraqi Freedom have highlighted the significant
disparity between the financial benefits for survivors of
deceased members of the Armed Forces and the financial benefits
for survivors of civilian victims of terrorism;
(3) the death benefits system composed of the death gratuity
paid by the Department of Defense to survivors of members of the
Armed Forces, the subsequently established Servicemembers' Group
Life Insurance (SGLI) program, and other benefits for survivors
of deceased members has evolved over time, but there are
increasing indications that the evolution of such benefits has
failed to keep pace with the expansion of indemnity and
compensation available to segments of United States society
outside the Armed Forces, a failure that is especially apparent
in a comparison of the benefits for survivors of deceased
members with the compensation provided to families of civilian
victims of terrorism; and
(4) while the Servicemembers' Group Life Insurance (SGLI)
program provides an assured source of life insurance for members
of the Armed Forces that benefits the survivors of such members
upon death, that program requires servicemembers to pay for that
life insurance coverage and does not provide an assured minimum
benefit.

(b) Study Required.--The Secretary of Defense shall carry out a
study of the totality of all current and projected death benefits for
survivors of deceased members of the Armed Forces to determine the
adequacy of such benefits. In carrying out the study, the Secretary
shall--
(1) compare the Federal death benefits for survivors of
deceased members of the Armed Forces with--
(A) commercial and other private sector death
benefits plans for segments of United States society
outside the Armed Forces; and
(B) the benefits available under Public Law 107-37
(115 Stat. 219) (commonly known as the ``Public Safety
Officer Benefits Bill'');
(2) assess the personnel policy effects that would result
from a revision of the death gratuity benefit to provide a
stratified schedule of entitlement amounts that places a premium
on deaths resulting from participation in combat or from acts of
terrorism;

[[Page 1521]]
117 STAT. 1521

(3) assess the adequacy of the current system of Survivor
Benefit Plan annuities under title 10, United States Code, and
dependency and indemnity compensation under title 38, United
States Code, and the anticipated effects (if any) of an
elimination of the offset of Survivor Benefit Plan annuities by
dependency and indemnity compensation payments;
(4) examine the commercial insurability of members of the
Armed Forces in high-risk military occupational specialties; and
(5) examine the extent to which private trusts and
foundations engage in fundraising or otherwise provide financial
benefits for survivors of deceased members of the Armed Forces.

(c) Report.--Not [NOTE: Deadline.]  later than March 1, 2004, the
Secretary shall submit to the Committees on Armed Services of the Senate
and the House of Representatives a report on the results of the study
under subsection (b). The report shall include the following:
(1) The assessments, analyses, and conclusions resulting
from the study.
(2) Proposed legislation to address the deficiencies in the
system of Federal death benefits for survivors of deceased
members of the Armed Forces that are identified in the course of
the study.
(3) An estimate of the costs of the system of death benefits
provided for in the proposed legislation.

(d) Comptroller General Study.--The Comptroller General shall
conduct a study to identify the death benefits that are payable under
Federal, State, and local laws for employees of the United States, State
governments, and local governments. Not later than March 1, 2004, the
Comptroller General shall submit a report containing the results of the
study to the Committees on Armed Services of the Senate and the House of
Representatives.

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

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

(a) Access to Military Commissaries.--Section 1065 of title 10,
United States Code, is amended--
(1) in subsections (a), (b), and (c), by inserting
``commissary stores and'' after ``use'' each place it appears;
and
(2) in subsection (d)--
(A) by inserting ``commissary stores and'' after
``use'' the first and third places it appears; and
(B) by inserting ``stores and'' after ``use'' the
second and fourth places it appears.

(b) Conforming Amendments; Transfer of Section.--Chapter 54 of such
title is amended--
(1) by striking sections 1063 and 1064;
(2) in section 1063a(c)(2), by striking ``section 1065(e)''
and inserting ``section 1063(e)'';
(3) by redesignating section 1063a, as amended by paragraph
(2), as section 1064;

[[Page 1522]]
117 STAT. 1522

(4) by transferring section 1065, [NOTE: 10 USC 1063.]  as
amended by subsection (a), so as to appear after section 1062;
and
(5) by striking the heading of such section, as amended by
subsection (a) and transferred by paragraph (4), and inserting
the following new heading:

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

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

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

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

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

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

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

(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting before the item relating to section
2482 the following new item:

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

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

Section 2482(a) of title 10, United States Code, is amended--
(1) by striking the first and second sentences and inserting
the following: ``(1) Under such regulations as the Secretary of
Defense may approve, private persons may operate selected
commissary store functions, except that such functions may not
include functions relating to the procurement of products to be
sold in a commissary store or functions relating to the overall
management of a commissary system or the management of a
commissary store.''; and
(2) by adding at the end the following new paragraph:

``(2) Any change to private operation of a commissary store function
that is being performed by more than 10 Department of Defense civilian
employees shall not take effect until the end

[[Page 1523]]
117 STAT. 1523

of the 75-day period beginning on the date on which the Secretary of
Defense submits to Congress written notice of the change.''.

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

(a) Requirement That Commissary Operating Expenses Be Paid From
Appropriated Funds.--Section 2484 of title 10, United States Code, is
amended--
(1) in subsection (a), by striking ``may'' and inserting
``shall''; and
(2) in subsection (b), by striking ``may'' in the first
sentence and inserting ``shall''.

(b) Supplemental Funds for Commissary Operations.--Such section is
further amended by adding at the end the following new subsection:
``(c) Supplemental Funds for Commissary Operations.--Amounts
appropriated to cover the expenses of operating the Defense Commissary
Agency and the defense commissary system may be supplemented with
additional funds from manufacturers' coupon redemption fees, handling
fees for tobacco products, and other amounts received as reimbursement
for other support activities provided by commissary activities.''.

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

(a) 1988 Law.--Section 204(b)(7)(C) of the Defense Authorization
Amendments and Base Closure and Realignment Act (Public Law 100-526; 10
U.S.C. 2687 note) is amended--
(1) in the second sentence of clause (i), by striking ``The
Secretary may use amounts in the account (in such an aggregate
amount as is provided in advance in appropriation Acts)'' and
inserting ``Subject to the limitation in clause (iii), amounts
in the reserve account are hereby made available to the
Secretary, without appropriation and until expended,'';
(2) by redesignating clause (iii) as clause (iv); and
(3) by inserting after clause (ii) the following new clause
(iii):

``(iii) The aggregate amount obligated from the reserve account
established under clause (i) may not exceed the following:
``(I) In fiscal year 2004, $31,000,000.
``(II) In fiscal year 2005, $24,000,000.
``(III) In fiscal year 2006, $15,000,000.''.

(b) 1990 Law.--Section 2906(d)(3) of the Defense Base Closure and
Realignment Act of 1990 (part A of title XXIX of Public Law 101-510; 10
U.S.C. 2687 note) is amended by striking ``The Secretary may use amounts
in the account (in such an aggregate amount as is provided in advance in
appropriation Acts)'' and inserting ``Subject to the limitation
contained in section 204(b)(7)(C)(iii) of the Defense Authorization
Amendments and Base Closure and Realignment Act, amounts in the reserve
account are hereby made available to the Secretary, without
appropriation and until expended,''.

[[Page 1524]]
117 STAT. 1524

Subtitle F--Other Matters

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

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

TITLE VII--HEALTH CARE PROVISIONS

Subtitle A--Enhanced Benefits for Reserves

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

Subtitle B--Other Benefits Improvements

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

Subtitle C--Planning, Programming, and Management

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

[[Page 1525]]
117 STAT. 1525

Subtitle A--Enhanced Benefits for Reserves

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

Subsection (f) of section 1074a of title 10, United States Code, as
amended by section 1114 of the Emergency Supplemental Appropriations Act
for Defense and for the Reconstruction of Iraq and Afghanistan, 2004, is
amended to read as follows:
``(f)(1) [NOTE: Notification.] At any time after the Secretary
concerned notifies members of the Ready Reserve that the members are to
be called or ordered to active duty for a period of more than 30 days,
the administering Secretaries may provide to each such member any
medical and dental screening and care that is necessary to ensure that
the member meets the applicable medical and dental standards for
deployment.

``(2) The notification to members of the Ready Reserve described in
paragraph (1) shall include notice that the members are eligible for
screening and care under this section.
``(3) A member provided medical or dental screening or care under
paragraph (1) may not be charged for the screening or care.''.

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

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

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

``(a) Eligibility.--Each member of the Selected Reserve of the Ready
Reserve and each member of the Individual Ready Reserve described in
section 10144(b) of this title is eligible, subject to subsection (h),
to enroll in TRICARE and receive benefits under such enrollment for any
period that the member--
``(1) is an eligible unemployment compensation recipient; or
``(2) is not eligible for health care benefits under an
employer-sponsored health benefits plan.

``(b) Types of Coverage.--(1) A member eligible under subsection (a)
may enroll for either of the following types of coverage:
``(A) Self alone coverage.
``(B) Self and family coverage.

``(2) An enrollment by a member for self and family covers the
member and the dependents of the member who are described in
subparagraph (A), (D), or (I) of section 1072(2) of this title.
``(c) Open Enrollment Periods.--The Secretary of Defense shall
provide for at least one open enrollment period each year. During an
open enrollment period, a member eligible under subsection (a) may
enroll in the TRICARE program or change or terminate an enrollment in
the TRICARE program.
``(d) Scope of Care.--(1) A member and the dependents of a member
enrolled in the TRICARE program under this section shall be entitled to
the same benefits under this chapter as a

[[Page 1526]]
117 STAT. 1526

member of the uniformed services on active duty or a dependent of such a
member, respectively.
``(2) [NOTE: Applicability.] Section 1074(c) of this title shall
apply with respect to a member enrolled in the TRICARE program under
this section.

``(e) Premiums.--(1) The Secretary of Defense shall charge premiums
for coverage pursuant to enrollments under this section. The Secretary
shall prescribe for each of the TRICARE program options a premium for
self alone coverage and a premium for self and family coverage.
``(2) The monthly amount of the premium in effect for a month for a
type of coverage under this section shall be the amount equal to 28
percent of the total amount determined by the Secretary on an
appropriate actuarial basis as being reasonable for the coverage.
``(3) The premiums payable by a member under this subsection may be
deducted and withheld from basic pay payable to the member under section
204 of title 37 or from compensation payable to the member under section
206 of such title. The Secretary shall prescribe the requirements and
procedures applicable to the payment of premiums by members not entitled
to such basic pay or compensation.
``(4) Amounts collected as premiums under this subsection shall be
credited to the appropriation available for the Defense Health Program
Account under section 1100 of this title, shall be merged with sums in
such Account that are available for the fiscal year in which collected,
and shall be available under subparagraph (B) of such section for such
fiscal year.
``(f) Other Charges.--A person who receives health care pursuant to
an enrollment in a TRICARE program option under this section, including
a member who receives such health care, shall be subject to the same
deductibles, copayments, and other nonpremium charges for health care as
apply under this chapter for health care provided under the same TRICARE
program option to dependents described in subparagraph (A), (D), or (I)
of section 1072(2) of this title.
``(g) Termination of Enrollment.--(1) A member enrolled in the
TRICARE program under this section may terminate the enrollment only
during an open enrollment period provided under subsection (c), except
as provided in subsection (h).
``(2) An enrollment of a member for self alone or for self and
family under this section shall terminate on the first day of the first
month beginning after the date on which the member ceases to be eligible
under subsection (a).
``(3) The enrollment of a member under this section may be
terminated on the basis of failure to pay the premium charged the member
under this section.
``(h) Relationship to Transition TRICARE Coverage Upon Separation
From Active Duty.--(1) A member may not enroll in the TRICARE program
under this section while entitled to transitional health care under
subsection (a) of section 1145 of this title or while authorized to
receive health care under subsection (c) of such section.
``(2) A member who enrolls in the TRICARE program under this section
within 90 days after the date of the termination of the member's
entitlement or eligibility to receive health care under subsection (a)
or (c) of section 1145 of this title may terminate

[[Page 1527]]
117 STAT. 1527

the enrollment at any time within one year after the date of the
enrollment.
``(i) Certification of Noncoverage by Other Health Benefits Plan.--
The Secretary of Defense may require a member to submit any
certification that the Secretary considers appropriate to substantiate
the member's assertion that the member is not covered for health care
benefits under any other health benefits plan.
``(j) Eligible Unemployment Compensation Recipient Defined.--In this
section, the term `eligible unemployment compensation recipient' means,
with respect to any month, any individual who is determined eligible for
any day of such month for unemployment compensation under State law (as
defined in section 205(9) of the Federal-State Extended Unemployment
Compensation Act of 1970), including Federal unemployment compensation
laws administered through the State.
``(k) Regulations.--The Secretary of Defense, in consultation with
the other administering Secretaries, shall prescribe regulations for the
administration of this section.
``(l) Termination of Authority.--An enrollment in TRICARE under this
section may not continue after December 31, 2004.''.

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

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

``(2) In this subsection, the term `delayed-effective-date active-
duty order' means an order to active duty for a period of more than 30
days in support of a contingency operation under a provision of law
referred to in section 101(a)(13)(B) of this title that provides for
active-duty service to begin under such order on a date after the date
of the issuance of the order.
``(3) [NOTE: Termination date.] This subsection shall cease to be
effective on December 31, 2004.''.

SEC. [NOTE: 10 USC 1145 note.] 704. TEMPORARY EXTENSION OF
TRANSITIONAL HEALTH CARE BENEFITS.

(a) Extension.--Subject to subsection (b), and notwithstanding
section 1
117 of the Emergency Supplemental Appropriations Act for
Defense and for the Reconstruction of Iraq and Afghanistan, 2004, during
the period beginning on the date of the enactment of this Act and ending
on December 31, 2004, section 1145(a) of title 10, United States Code,
shall be administered by substituting for paragraph (3) the following:
``(3) Transitional health care for a member under subsection
(a) shall be available for 180 days beginning on the date on
which the member is separated from active duty.''.

[[Page 1528]]
117 STAT. 1528

(b) Effective Date.--(1) Subsection (a) shall apply with respect to
separations from active duty that take effect on or after the date of
the enactment of this Act.
(2) Beginning on January 1, 2005, the period for which a member is
provided transitional health care benefits under section 1145(a) of
title 10, United States Code, shall be adjusted as necessary to comply
with the limits provided under paragraph (3) of such section.

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

(a) GAO Evaluation of Needs of Reserve Components for Health Care
Benefits.--The Comptroller General shall evaluate the needs of members
of the reserve components of the Armed Forces and their families for
obtaining and maintaining coverage for health care benefits under health
care benefits plans and programs.
(b) Special Concern.--In conducting the evaluation under this
section, the Comptroller General shall give special consideration to the
implications of the increased use of the reserve components for carrying
out and supporting operations of the Armed Forces that has been
experienced since the 1980s and is anticipated to continue, particularly
the increased frequency and magnitude of the mobilization of Reserves
and the increased length of the periods of active duty of Reserves when
mobilized.
(c) Matters Covered.--The evaluation under this section shall
include the following matters:
(1) An examination of the extent to which Reserves and the
members of their families are covered by health care benefits
plans when the Reserves are not on active duty, including--
(A) the sources of the coverage;
(B) the scope of the benefits; and
(C) the extent to which the Reserves and the members of
their families use the benefits available.
(2) An identification of options for providing health care
benefits to Reserves and the members of their families not
covered by health care benefits plans without creating an
incentive for other Reserves to terminate coverage by such
plans.
(3) A review of Department of Defense initiatives during
fiscal years 2003 and 2004 to address the problems of access of
mobilized Reserves and their families to health care and health
care benefits, including--
(A) a determination of the effectiveness of such
initiatives; and
(B) a determination of the extent to which the
problems continue.
(4) An identification of options for continuing, after a
Reserve is mobilized, any coverage of the Reserve and the
Reserve's family that exists under a health benefits plan before
the Reserve is mobilized.
(5) An assessment of the effects of--
(A) the provisions of this title that authorize or
require the Department of Defense to provide assistance
specifically to Reserves to facilitate the access to and
use of TRICARE benefits by Reserves or members of their
families; and
(B) the provisions of this title that provide
eligibility for health care under chapter 55 of title
10, United States

[[Page 1529]]
117 STAT. 1529

Code, for Reserves who are alerted by the Department of
Defense to prepare to be mobilized imminently.
(6) An examination of the existing programs under which the
Department of Defense provides health care benefits to mobilized
Reserves during a transitional period immediately following the
release of the Reserves from the active duty for which
mobilized, including an assessment of the extent to which those
programs meet the needs of such Reserves for health care
benefits on a transitional basis.

(d) Report.--Not [NOTE: Deadline.]  later than May 1, 2004, the
Comptroller General shall submit to the Committees on Armed Services of
the Senate and the House of Representatives a report on the results of
the evaluation required by this subsection, including findings and
recommendations.

(e) Definitions.--In this section:
(1) The term ``mobilized'' means called or ordered to active
duty for a period of more than 30 days (as defined in section
101(d)(2) of title 10, United States Code).
(2) The term ``Reserves'' means members of the reserve
components of the Armed Forces.

SEC. 706. [NOTE: 10 USC 1076b note.] LIMITATION ON FISCAL YEAR 2004
OUTLAYS FOR TEMPORARY RESERVE HEALTH CARE PROGRAMS.

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

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

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

[[Page 1530]]
117 STAT. 1530

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

Section 1074(a) of title 10, United States Code, is amended--
(1) by inserting ``(1)'' after ``(a)'';
(2) by striking ``who is on active duty'' and inserting
``described in paragraph (2)''; and
(3) by adding at the end the following new paragraph:

``(2) Members of the uniformed services referred to in paragraph (1)
are as follows:
``(A) A member of a uniformed service on active duty.
``(B) A member of a reserve component of a uniformed service
who has been commissioned as an officer if--
``(i) the member has requested orders to active duty
for the member's initial period of active duty following
the commissioning of the member as an officer;
``(ii) the request for orders has been approved;
``(iii) the orders are to be issued but have not
been issued; and
``(iv) the member does not have health care
insurance and is not covered by any other health
benefits plan.''.

Subtitle B--Other Benefits Improvements

SEC. 711. [NOTE: 10 USC 1092 note.] ACCELERATION OF IMPLEMENTATION OF
CHIROPRACTIC HEALTH CARE FOR MEMBERS ON ACTIVE DUTY.

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

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

Section 1074i of title 10, United States Code, is amended--
(1) by inserting ``(a) In General.--'' before ``In any
case''; and
(2) by adding at the end the following new subsection:

``(b) Definitions.--In this section:
``(1) The term `specialty care provider' includes a dental
specialist.
``(2) The term `dental specialist' means an oral surgeon,
orthodontist, prosthodontist, periodontist, endodontist, or
pediatric dentist, and includes such other providers of dental
care and services as determined appropriate by the Secretary of
Defense.''.

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

(a) Extension.--Section 1078a(b) of title 10, United States Code, is
amended in paragraphs (1), (2)(A), and (3)(A) by striking ``armed
forces'' and inserting ``uniformed services'' each place it appears.

[[Page 1531]]
117 STAT. 1531

(b) Effective Date.--The [NOTE: Applicability. 10 USC 1078a
note.]  amendments made by subsection (a) shall apply to members of the
uniformed services who are not otherwise covered by section 1078a of
title 10, United States Code, before the date of the enactment of this
Act and who, on or after such date, first meet the eligibility criteria
specified in subsection (b) of that section.

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

Subsection (d) of section 724 of the National Defense Authorization
Act for Fiscal Year 1997 (Public Law 104-201; 10 U.S.C. 1073 note) is
amended to read as follows:
``(d) Additional Enrollment Authority.--(1) Subject to paragraph
(2), other covered beneficiaries may also receive health care services
from a designated provider.
``(2)(A) The designated provider may market such services to, and
enroll, covered beneficiaries who--
``(i) subject to the limitation in subparagraph (B), have
other primary health insurance coverage (other than Medicare
coverage) covering basic primary care and inpatient and
outpatient services; or
``(ii) are enrolled in the direct care system under the
TRICARE program, regardless of whether the covered beneficiaries
were users of the health care delivery system of the uniformed
services in prior years.

``(B) For each fiscal year beginning after September 30, 2003, the
number of covered beneficiaries who are newly enrolled by a designated
provider pursuant to subparagraph (A)(i) may not exceed 10 percent of
the excess (if any) of--
``(i) the number of enrollees in managed care plans offered
by designated providers as of the first day of such fiscal year;
over
``(ii) the number of such enrollees as of the first day of
the immediately preceding fiscal year.

``(3) For purposes of this subsection, a covered beneficiary who has
other primary health insurance coverage includes any covered beneficiary
who has primary health insurance coverage--
``(A) on the date of enrollment with a designated provider
pursuant to paragraph (2)(A)(i); or
``(B) on such date of enrollment and during the period after
such date while the beneficiary is enrolled with the designated
provider.''.

Subtitle C--Planning, Programming, and Management

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

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

[[Page 1532]]
117 STAT. 1532

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

(a) Separate Periodic Actuarial Valuation for Single Uniformed
Service.--Section 1115(c) of title 10, United States Code, is amended by
adding at the end of paragraph (1) the following: ``The Secretary of
Defense may determine a separate single level dollar amount under
subparagraph (A) or (B) for any participating uniformed service, if, in
the judgment of the Secretary, such a determination would produce a more
accurate and appropriate actuarial valuation for that uniformed
service.''.
(b) Associated Calculations of Payments Into the Fund.--Section 1116
of such title is amended--
(1) in subsection (a), by striking ``the amount that'' in
the matter preceding paragraph (1) and inserting ``the amount
that, subject to subsection (b),'';
(2) by redesignating subsections (b) and (c) as subsections
(c) and (d), respectively; and
(3) by inserting after subsection (a) the following new
subsection (b):

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

SEC. 723. [NOTE: 10 USC 1073 note.] SURVEYS ON CONTINUED VIABILITY OF
TRICARE STANDARD.

(a) Requirement for Surveys.--(1) The Secretary of Defense shall
conduct surveys in the TRICARE market areas in the United States to
determine how many health care providers are accepting new patients
under TRICARE Standard in each such market area.
(2) The Secretary shall carry out the surveys in at least 20 TRICARE
market areas in the United States each fiscal year after fiscal year
2003 until all such market areas in the United States have been
surveyed. The Secretary shall complete [NOTE: Deadline.]  six of the
fiscal year 2004 surveys not later than March 31, 2004.

(3) In prioritizing the market areas for the sequence in which
market areas are to be surveyed under this subsection, the Secretary
shall consult with representatives of TRICARE beneficiaries and health
care providers to identify locations where TRICARE Standard
beneficiaries are experiencing significant levels of access-to-care
problems under TRICARE Standard and shall give a high priority to
surveying health care providers in such areas.
(b) Supervision.--(1) The Secretary shall designate a senior
official of the Department of Defense to take the actions necessary

[[Page 1533]]
117 STAT. 1533

for achieving and maintaining participation of health care providers in
TRICARE Standard in each TRICARE market area in a number that is
adequate to ensure the viability of TRICARE Standard for TRICARE
beneficiaries in that market area.
(2) The official designated under paragraph (1) shall have the
following duties:
(A) To educate health care providers about TRICARE Standard.
(B) To encourage health care providers to accept patients
under TRICARE Standard.
(C) To ensure that TRICARE beneficiaries have the
information necessary to locate TRICARE Standard providers
readily.
(D) To recommend adjustments in TRICARE Standard provider
payment rates that the official considers necessary to ensure
adequate availability of TRICARE Standard providers for TRICARE
Standard beneficiaries.

(c) GAO Review.--(1) The Comptroller General shall, on an ongoing
basis, review--
(A) the processes, procedures, and analysis used by the
Department of Defense to determine the adequacy of the number of
health care providers--
(i) that currently accept TRICARE Standard
beneficiaries as patients under TRICARE Standard in each
TRICARE market area (as of the date of completion of the
review); and
(ii) that would accept TRICARE Standard
beneficiaries as new patients under TRICARE Standard in
each TRICARE market area (within a reasonable time after
the date of completion of the review); and
(B) the actions taken by the Department of Defense to ensure
ready access of TRICARE Standard beneficiaries to health care
under TRICARE Standard in each TRICARE market area.

(2)(A) [NOTE: Reports.] The Comptroller General shall submit to
the Committees on Armed Services of the Senate and the House of
Representatives a semiannual report on the results of the review under
paragraph (1). The first semiannual report shall be submitted not later
than June 30, 2004.

(B) The semiannual report under subparagraph (A) shall include the
following:
(i) An analysis of the adequacy of the surveys under
subsection (a).
(ii) The adequacy of existing statutory authority to address
inadequate levels of participation by health care providers in
TRICARE Standard.
(iii) Identification of policy-based obstacles to achieving
adequacy of availability of TRICARE Standard health care in the
TRICARE market areas.
(iv) An assessment of the adequacy of Department of Defense
education programs to inform health care providers about TRICARE
Standard.
(v) An assessment of the adequacy of Department of Defense
initiatives to encourage health care providers to accept
patients under TRICARE Standard.

[[Page 1534]]
117 STAT. 1534

(vi) An assessment of the adequacy of information available
to TRICARE Standard beneficiaries to facilitate access by such
beneficiaries to health care under TRICARE Standard.
(vii) Any need for adjustment of health care provider
payment rates to attract participation in TRICARE Standard by
appropriate numbers of health care providers.

(d) Definitions.--In this section:
(1) The term ``TRICARE Standard'' means the option of the
TRICARE program that is also known as the Civilian Health and
Medical Program of the Uniformed Services, as defined in section
1072(4) of title 10, United States Code.
(2) The term ``United States'' means the United States (as
defined in section 101(a) of title 10, United States Code), its
possessions (as defined in such section), and the Commonwealth
of Puerto Rico.

SEC. 724. [NOTE: 10 USC 1079 note.] PLAN FOR PROVIDING HEALTH COVERAGE
INFORMATION TO MEMBERS, FORMER MEMBERS, AND DEPENDENTS
ELIGIBLE FOR CERTAIN HEALTH BENEFITS.

(a) Health Information Plan Required.--The Secretary of Defense
shall develop a plan to--
(1) ensure that each household that includes one or more
eligible persons is provided information concerning--
(A) the extent of health coverage provided by
sections 1079 or 1086 of title 10, United States Code,
for each such person;
(B) the costs, including the limits on such costs,
that each such person is required to pay for such health
coverage;
(C) sources of information for locating TRICARE-
authorized providers in the household's locality; and
(D) methods to obtain assistance in resolving
difficulties encountered with billing, payments,
eligibility, locating TRICARE-authorized providers,
collection actions, and such other issues as the
Secretary considers appropriate;
(2) provide mechanisms to ensure that each eligible person
has access to information identifying TRICARE-authorized
providers in the person's locality who have agreed to accept new
patients under section 1079 or 1086 of title 10, United States
Code, and to ensure that such information is periodically
updated;
(3) provide mechanisms to ensure that each eligible person
who requests assistance in locating a TRICARE-authorized
provider is provided such assistance;
(4) provide information and recruitment materials and
programs aimed at attracting participation of health care
providers as necessary to meet health care access requirements
for all eligible persons; and
(5) provide mechanisms to allow for the periodic
identification by the Department of Defense of the number and
locality of eligible persons who may intend to rely on TRICARE-
authorized providers for health care services.

(b) Implementation of Plan.--The Secretary of Defense shall
implement the plan required by subsection (a) with respect to any
contract entered into by the Department of Defense after May 31, 2003,
for managed health care.
(c) Definitions.--In this section:

[[Page 1535]]
117 STAT. 1535

(1) The term ``eligible person'' means a person eligible for
health benefits under section 1079 or 1086 of title 10, United
States Code.
(2) The term ``TRICARE-authorized provider'' means a
facility, doctor, or other provider of health care services--
(A) that meets the licensing and credentialing
certification requirements in the State where the
services are rendered;
(B) that meets requirements under regulations
relating to TRICARE for the type of health care services
rendered; and
(C) that has accepted reimbursement by the Secretary
of Defense as payment for services rendered during the
12-month period preceding the date of the most recently
updated provider information provided to households
under the plan required by subsection (a).

(d) [NOTE: Deadline.] Submission of Plan.--Not later than March
31, 2004, the Secretary shall submit to the Committees on Armed Services
of the Senate and House of Representatives the plan required by
subsection (a), together with a schedule for implementation of the plan.

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

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

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

(a) In General.--Section 722 of the National Defense Authorization
Act for Fiscal Year 1993 (Public Law 102-484; 10 U.S.C. 1073 note) is
amended by striking subsections (a), (b), (c), and (d) and inserting the
following new subsections:
``(a) Establishment.--Not [NOTE: Deadline.]  later than December
31, 2003, the Secretary of Defense shall establish a working group on
the provision of military health care to persons who rely for health
care on health care facilities located at military installations--
``(1) inside the United States that are selected for closure
or realignment in the 2005 round of realignments and closures

[[Page 1536]]
117 STAT. 1536

authorized by sections 2912, 2913, and 2914 of the Defense Base
Closure and Realignment Act of 1990 (part A of title XXIX of
Public Law 101-510; 10 U.S.C. 2687 note), as added by title XXX
of the National Defense Authorization Act for Fiscal Year 2002
(Public Law 107-107; 155 Stat. 1342); or
``(2) outside the United States that are selected for
closure or realignment as a result of force posture changes.

``(b) Membership.--The members of the working group shall include,
at a minimum, the following:
``(1) The Assistant Secretary of Defense for Health Affairs,
or a designee of the Assistant Secretary.
``(2) The Surgeon General of the Army, or a designee of that
Surgeon General.
``(3) The Surgeon General of the Navy, or a designee of that
Surgeon General.
``(4) The Surgeon General of the Air Force, or a designee of
that Surgeon General.
``(5) At least one independent member (appointed by the
Secretary of Defense) from each TRICARE region, but not to
exceed a total of 12 members appointed under this paragraph,
whose experience in matters within the responsibility of the
working group qualify that person to represent persons
authorized health care under chapter 55 of title 10, United
States Code.

``(c) Duties.--(1) In developing the recommendations for the 2005
round of realignments and closures required by sections 2913 and 2914 of
the Defense Base Closure and Realignment Act of 1990, the Secretary of
Defense shall consult with the working group.
``(2) The working group shall be available to provide assistance to
the Defense Base Closure and Realignment Commission.
``(3) In the case of each military installation referred to in
paragraph (1) or (2) of subsection (a) whose closure or realignment will
affect the accessibility to health care services for persons entitled to
such services under chapter 55 of title 10, United States Code, the
working group shall provide to the Secretary of Defense a plan for the
provision of the health care services to such persons.
``(d) Special Considerations.--In carrying out its duties under
subsection (c), the working group--
``(1) shall conduct meetings with persons entitled to health
care services under chapter 55 of title 10, United States Code,
or representatives of such persons;
``(2) may use reliable sampling techniques;
``(3) may visit the areas where closures or realignments of
military installations will adversely affect the accessibility
of health care for such persons and may conduct public meetings;
and
``(4) shall ensure that members of the uniformed services on
active duty, members and former members of the uniformed
services entitled to retired or retainer pay, and dependents and
survivors of such members and retired personnel are afforded the
opportunity to express their views.''.

(b) Termination.--Section 722 of such Act is further amended by
adding at the end the following new subsection:
``(f) Termination.--The working group established pursuant to
subsection (a) shall terminate on December 31, 2006.''.

[[Page 1537]]
117 STAT. 1537

(c) Conforming Amendment.--Subsection (e) of such section is amended
by striking ``joint services''.

SEC. 727. [NOTE: 38 USC 320 note.] JOINT PROGRAM FOR DEVELOPMENT AND
EVALUATION OF INTEGRATED HEALING CARE PRACTICES FOR MEMBERS
OF THE ARMED FORCES AND VETERANS.

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

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

Subtitle A--Acquisition Policy and Management

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

Subtitle B--United States Defense Industrial Base Provisions

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

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

Part II--Requirements Relating to Specific Items

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

Part III--Other Domestic Source Requirements

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

Subtitle C--Defense Acquisition and Support Workforce Flexibility

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

[[Page 1538]]
117 STAT. 1538

Sec. 836. Clerical amendments.

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

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

Subtitle E--Acquisition-Related Reports and Other Matters

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

Subtitle A--Acquisition Policy and Management

SEC. 801. CONSOLIDATION OF CONTRACT REQUIREMENTS.

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

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

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

``(2) A senior procurement executive may determine that an
acquisition strategy involving a consolidation of contract requirements
is necessary and justified for the purposes of paragraph (1) if the
benefits of the acquisition strategy substantially exceed

[[Page 1539]]
117 STAT. 1539

the benefits of each of the possible alternative contracting approaches
identified under subparagraph (B) of that paragraph. However, savings in
administrative or personnel costs alone do not constitute, for such
purposes, a sufficient justification for a consolidation of contract
requirements in a procurement unless the total amount of the cost
savings is expected to be substantial in relation to the total cost of
the procurement.
``(3) Benefits considered for the purposes of paragraphs (1) and (2)
may include cost and, regardless of whether quantifiable in dollar
amounts--
``(A) quality;
``(B) acquisition cycle;
``(C) terms and conditions; and
``(D) any other benefit.

``(c) Definitions.--In this section:
``(1) The terms `consolidation of contract requirements' and
`consolidation', with respect to contract requirements of a
military department, Defense Agency, or Department of Defense
Field Activity, mean a use of a solicitation to obtain offers
for a single contract or a multiple award contract to satisfy
two or more requirements of that department, agency, or activity
for goods or services that have previously been provided to, or
performed for, that department, agency, or activity under two or
more separate contracts smaller in cost than the total cost of
the contract for which the offers are solicited.
``(2) The term `multiple award contract' means--
``(A) a contract that is entered into by the
Administrator of General Services under the multiple
award schedule program referred to in section 2302(2)(C)
of this title;
``(B) a multiple award task order contract or
delivery order contract that is entered into under the
authority of sections 2304a through 2304d of this title
or sections 303H through 303K of the Federal Property
and Administrative Services Act of 1949 (41 U.S.C. 253h
through 253k); and
``(C) any other indeterminate delivery,
indeterminate quantity contract that is entered into by
the head of a Federal agency with two or more sources
pursuant to the same solicitation.
``(3) The term `senior procurement executive concerned'
means--
``(A) with respect to a military department, the
official designated under section 16(3) of the Office of
Federal Procurement Policy Act (41 U.S.C. 414(3)) as the
senior procurement executive for the military
department; or
``(B) with respect to a Defense Agency or a
Department of Defense Field Activity, the official so
designated for the Department of Defense.
``(4) The term `small business concern' means a business
concern that is determined by the Administrator of the Small
Business Administration to be a small-business concern by
application of the standards prescribed under section 3(a) of
the Small Business Act (15 U.S.C. 632(a)).''.

[[Page 1540]]
117 STAT. 1540

(2) The table of sections at the beginning of such chapter is
amended by inserting after the item relating to section 2381 the
following new item:

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

(b) [NOTE: 10 USC 2382 note.] Data Review.--(1) The Secretary of
Defense shall revise the data collection systems of the Department of
Defense to ensure that such systems are capable of identifying each
procurement that involves a consolidation of contract requirements
within the department with a total value in excess of $5,000,000.

(2) The Secretary shall ensure that appropriate officials of the
Department of Defense periodically review the information collected
pursuant to paragraph (1) in cooperation with the Small Business
Administration--
(A) to determine the extent of the consolidation of contract
requirements in the Department of Defense; and
(B) to assess the impact of the consolidation of contract
requirements on the availability of opportunities for small
business concerns to participate in Department of Defense
procurements, both as prime contractors and as subcontractors.

(3) In this subsection:
(A) The term ``consolidation of contract requirements'' has
the meaning given that term in section 2382(c)(1) of title 10,
United States Code, as added by subsection (a).
(B) The term ``small business concern'' means a business
concern that is determined by the Administrator of the Small
Business Administration to be a small-business concern by
application of the standards prescribed under section 3(a) of
the Small Business Act (15 U.S.C. 632(a)).

(c) [NOTE: 10 USC 2382 note.] Applicability.--This section applies
with respect to procurements for which solicitations are issued after
the date occurring 180 days after the date of the enactment of this Act.

SEC. 802. [NOTE: 10 USC 2382 note.] QUALITY CONTROL IN PROCUREMENT OF
AVIATION CRITICAL SAFETY ITEMS AND RELATED SERVICES.

(a) Quality Control Policy.--The Secretary of Defense shall
prescribe in regulations a quality control policy for the procurement of
aviation critical safety items and the procurement of modifications,
repair, and overhaul of such items.
(b) Content of Regulations.--The policy set forth in the regulations
shall include the following requirements:
(1) That the head of the design control activity for
aviation critical safety items establish processes to identify
and manage the procurement, modification, repair, and overhaul
of aviation critical safety items.
(2) That the head of the contracting activity for an
aviation critical safety item enter into a contract for the
procurement, modification, repair, or overhaul of such item only
with a source approved by the design control activity in
accordance with section 2319 of title 10, United States Code.
(3) That the aviation critical safety items delivered, and
the services performed with respect to aviation critical safety
items, meet all technical and quality requirements specified by
the design control activity.

(c) Definitions.--In this section, the terms ``aviation critical
safety item'' and ``design control activity'' have the meanings given

[[Page 1541]]
117 STAT. 1541

such terms in section 2319(g) of title 10, United States Code, as
amended by subsection (d).
(d) Conforming Amendment to Title 10.--Section 2319 of title 10,
United States Code, is amended--
(1) in subsection (c)(3), by inserting after ``the
contracting officer'' the following: ``(or, in the case of a
contract for the procurement of an aviation critical safety
item, the head of the design control activity for such item)'';
and
(2) by adding at the end the following new subsection:

``(g) Definitions.--In this section:
``(1) The term `aviation critical safety item' means a part,
an assembly, installation equipment, launch equipment, recovery
equipment, or support equipment for an aircraft or aviation
weapon system if the part, assembly, or equipment contains a
characteristic any failure, malfunction, or absence of which
could cause a catastrophic or critical failure resulting in the
loss of or serious damage to the aircraft or weapon system, an
unacceptable risk of personal injury or loss of life, or an
uncommanded engine shutdown that jeopardizes safety.
``(2) The term `design control activity', with respect to an
aviation critical safety item, means the systems command of a
military department that is specifically responsible for
ensuring the airworthiness of an aviation system or equipment in
which the item is to be used.''.

SEC. 803. [NOTE: 40 USC 405 note.] FEDERAL SUPPORT FOR ENHANCEMENT OF
STATE AND LOCAL ANTI-TERRORISM RESPONSE CAPABILITIES.

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

SEC. 804. SPECIAL TEMPORARY CONTRACT CLOSEOUT AUTHORITY.

(a) Authority.--The Secretary of Defense may settle any financial
account for a contract entered into by the Secretary or the Secretary of
a military department before October 1, 1996, that is administratively
complete if the financial account has an unreconciled balance, either
positive or negative, that is less than $100,000.
(b) Finality of Decision.--A settlement under this section shall be
final and conclusive upon the accounting officers of the United States.
(c) Regulations.--The Secretary of Defense shall prescribe
regulations for the administration of the authority under this section.

[[Page 1542]]
117 STAT. 1542

(d) Termination of Authority.--A financial account may not be
settled under this section after September 30, 2006.

SEC. 805. [NOTE: 10 USC 2302 note.] COMPETITIVE AWARD OF CONTRACTS FOR
RECONSTRUCTION ACTIVITIES IN IRAQ.

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

Subtitle B--United States Defense Industrial Base Provisions

Part I--Essential [NOTE: 10 USC 2501 note.]  Items Identification and
Domestic Production Capabilities Improvement Program

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

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

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

(a) Assessment Program.--(1) The Secretary of Defense shall
establish a program to assess--
(A) the degree to which the United States is dependent on
foreign sources of supply; and
(B) the capabilities of the United States defense industrial
base to produce military systems necessary to support the
national security objectives set forth in section 2501 of title
10, United States Code.

(2) For purposes of the assessment program, the Secretary shall use
existing data, as required under subsection (b), and submit an annual
report, as required under subsection (c).

(b) Use of Existing Data.--(1) At a minimum, with respect to each
prime contract with a value greater than $25,000 for the procurement of
defense items and components, the following information from existing
sources shall be used for purposes of the assessment program:
(A) Whether the contractor is a United States or foreign
contractor.

[[Page 1543]]
117 STAT. 1543

(B) The principal place of business of the contractor and
the principal place of performance of the contract.
(C) Whether the contract was awarded on a sole source basis
or after receipt of competitive offers.
(D) The dollar value of the contract.

(2) The Federal Procurement Data System described in section
6(d)(4)(A) of the Office of Federal Procurement Policy Act (41 U.S.C.
405(d)(4)(A)), or any successor system, shall collect from contracts
described in paragraph (1) the information specified in that paragraph.
(3) Information obtained in the implementation of this section is
subject to the same limitations on disclosure, and penalties for
violation of such limitations, as is provided under section 2507 of
title 10, United States Code. Such information also shall be exempt from
release under section 552 of title 5, United States Code.
(4) For purposes of meeting the requirements set forth in this
section, the Secretary of Defense may not require the provision of
information beyond the information that is currently provided to the
Department of Defense through existing data collection systems by non-
Federal entities with respect to contracts and subcontracts with the
Department of Defense or any military department.
(c) Annual Report.--(1) Not [NOTE: Deadline.]  later than February
1 of each year, the Secretary of Defense shall submit to the Committees
on Armed Services of the Senate and the House of Representatives a
report on the assessment program covering the preceding fiscal year. The
first report under this subsection shall cover fiscal year 2004 and
shall be submitted to the Committees no later than February 1, 2005.

(2)(A) The report shall include the following with respect to
contracts described in subsection (b):
(i) The total number and value of such contracts awarded by
the Department of Defense.
(ii) The total number and value of such contracts awarded on
a sole source basis.
(iii) The total number and value of contracts described in
clause (ii) awarded to foreign contractors, summarized by
country.
(iv) The total number and value of contracts awarded to
foreign contractors through competitive procedures, summarized
by country.

(B) The report also shall include--
(i) the status of the matters described in subparagraphs (A)
and (B) of subsection (a)(1);
(ii) the status of implementation of successor procurement
data management systems; and
(iii) such other matters as the Secretary considers
appropriate.

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

(a) Identification Process.--(1) The Secretary of Defense shall
establish a process, using the Defense Logistics Information System
existing database, to identify, with respect to each military system--

[[Page 1544]]
117 STAT. 1544

(A) the essential items, assemblies, and components of the
system that are active items, assemblies, and components;
(B) foreign and domestic sources of supply for active items,
assemblies, and components of the system;
(C) the active items, assemblies, and components of the
system that are commercial; and
(D) Federal Supply Class and North American Industry
Classification System Codes for active items, assemblies, and
components of the system.

(2) Any modification to the logistics management system or any
successor system of the Department of Defense shall maintain the
capability to identify--
(A) essential items, assemblies, and components described in
paragraph (1)(A);
(B) foreign and domestic sources of supply for active items,
assemblies, and components;
(C) the active items, assemblies, and components of the
system that are commercial; and
(D) Federal Supply Class and North American Industry
Classification System Codes for active items, assemblies, and
components.

(3) For purposes of meeting the requirements set forth in this
section, the Secretary of Defense may not require the provision of
information beyond the information that is currently provided to the
Department of Defense through existing data collection systems by non-
Federal entities with respect to contracts and subcontracts with the
Department of Defense or any military department.
(b) Military System Essential Item Breakout List.--The Secretary of
Defense shall produce a list, to be known as the ``military system
essential item breakout list'', consisting of the items, assemblies, and
components identified under subsection (a)(1)(A). In producing the list,
the Secretary of Defense shall consider the results of the report under
subsection (c).
(c) Assessment.--Not [NOTE: Deadline.]  later than 18 months after
the date of the enactment of this Act, the Secretary of Defense, acting
through a federally funded research and development center, shall
prepare a report that--
(1) assesses the criteria that should be used for
identifying whether an item, assembly, or component is essential
to a military system; and
(2) recommends which items, assemblies, and components
should be included on the military system essential item
breakout list under subsection (b).

(d) Report.--(1) Not [NOTE: Deadline.]  later than November 1 of
each year, beginning with November 1, 2005, the Secretary of Defense
shall submit to the Committees on Armed Services of the Senate and the
House of Representatives a report on the implementation of this section.
The report may be submitted in classified and unclassified form.

(2) The report shall include the following:
(A) A list of each military system covered by the process
established under subsection (a).
(B) A list of the items, assemblies, and components on the
military system essential item breakout list that are
manufactured or produced outside the United States, setting
forth military and commercial separately.

[[Page 1545]]
117 STAT. 1545

(C) The portion of the entire military system essential item
breakout list that consists of the items, assemblies, and
components listed under subparagraph (B) (stated as a
percentage).
(D) A list of each Federal Supply Class and North American
Industry Classification System Code represented on the military
system essential item breakout list, and the portion of the
entire military system essential item breakout list that
consists of items, assemblies, or components in such classes or
codes (stated as a percentage).
(E) A list of each country outside the United States where
the items, assemblies, and components listed under subparagraph
(B) are manufactured or produced, and the portion of the entire
military system essential item breakout list that consists of--
(i) the items, assemblies, or components
manufactured or produced in that country, setting forth
military and commercial separately (stated as a
percentage); and
(ii) the Federal Supply Classes and North American
Industry Classification System Codes represented by
those items, assemblies, or components (stated as a
percentage).

(3) [NOTE: Reports. Deadline.] The Secretary shall submit an
interim version of the report required by this subsection not later than
February 1, 2005, containing as much information as is practicable to be
included by such date.

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

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

[[Page 1546]]
117 STAT. 1546

Part II--Requirements Relating to Specific Items

SEC. 821. [NOTE: 10 USC 2534 note.] ELIMINATION OF UNRELIABLE SOURCES
OF DEFENSE ITEMS AND COMPONENTS.

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

(2) With [NOTE: Deadline.] respect to contracts in existence on
the date of the enactment of this Act, the Secretary of Defense shall
take such action as is necessary to ensure that such contracts are in
compliance with subsection (b) not later than 24 months after such date.

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

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

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

``(a) Establishment of Incentive Program.--The Secretary of Defense
shall plan and establish an incentive program in accordance with this
section for contractors to purchase capital assets manufactured in the
United States in part with funds available to the Department of Defense.
``(b) Defense Industrial Capabilities Fund May Be Used.--The
Secretary of Defense may use the Defense Industrial Capabilities Fund,
established under section 814 of the National Defense Authorization Act
for Fiscal Year 2004, for incentive payments under the program
established under this section.
``(c) Applicability to Major Defense Acquisition Program
Contracts.--The incentive program shall apply to contracts for the
procurement of a major defense acquisition program.
``(d) Consideration.--The Secretary of Defense shall provide
consideration in source selection in any request for proposals for

[[Page 1547]]
117 STAT. 1547

a major defense acquisition program for offerors with eligible capital
assets.''.

(2) The table of sections at the beginning of such chapter is
amended by inserting after the item relating to section 2435 the
following new item:

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

(b) [NOTE: 10 USC 2436 note.] Regulations.--(1) The Secretary of
Defense shall prescribe regulations as necessary to carry out section
2436 of title 10, United States Code, as added by this section.

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

SEC. 823. [NOTE: 10 USC 2521 note.] TECHNICAL ASSISTANCE RELATING TO
MACHINE TOOLS.

(a) Technical Assistance.--The Secretary of Defense shall publish in
the Federal Register information on Government contracting for purposes
of assisting machine tool companies in the United States and entities
that use machine tools. The information shall contain, at a minimum, the
following:
(1) An identification of resources with respect to
Government contracting regulations, including compliance
procedures and information on the availability of counseling.
(2) An identification of resources for locating
opportunities for contracting with the Department of Defense,
including information about defense contracts that are expected
to be carried out that may require the use of machine tools.

(b) Science and Technology Initiatives.--The Secretary of Defense
shall incorporate into the Department of Defense science and technology
initiatives on manufacturing technology an objective of developing
advanced machine tool capabilities. Such technologies shall be used to
improve the technological capabilities of the United States domestic
machine tool industrial base in meeting national security objectives.

SEC. 824. [NOTE: 10 USC 2505 note.] STUDY OF BERYLLIUM INDUSTRIAL
BASE.

(a) Requirement for Study.--The Secretary of Defense shall conduct a
study of the adequacy of the industrial base of the United States to
meet defense requirements of the United States for beryllium.
(b) [NOTE: Deadline.] Report.--Not later than March 31, 2005, the
Secretary shall submit a report on the results of the study to Congress.
The report shall contain, at a minimum, the following information:
(1) A discussion of the issues identified with respect to
the long-term supply of beryllium.
(2) An assessment of the need, if any, for modernization of
the primary sources of production of beryllium.

[[Page 1548]]
117 STAT. 1548

(3) A discussion of the advisability of, and concepts for,
meeting the future defense requirements of the United States for
beryllium and maintaining a stable domestic industrial base of
sources of beryllium through--
(A) cooperative arrangements commonly referred to as
public-private partnerships;
(B) the administration of the National Defense
Stockpile under the Strategic and Critical Materials
Stock Piling Act; and
(C) any other means that the Secretary identifies as
feasible.

Part III--Other Domestic Source Requirements

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

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

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

Section 2533a(f) of title 10, United States Code, is amended--
(1) by striking ``(f) Exception'' and all that follows
through ``the procurement of'' and inserting the following:

``(f) Exceptions for Certain Other Commodities and Items.--
Subsection (a) does not preclude the procurement of the following:
``(1)'';
(2) by capitalizing the initial letter of the word following
``(1)'', as added by paragraph (1); and
(3) by adding at the end the following new paragraph:
``(2) Waste and byproducts of cotton and wool fiber for use
in the production of propellants and explosives.''.

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

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

[[Page 1549]]
117 STAT. 1549

Subtitle C--Defense Acquisition and Support Workforce Flexibility

SEC. 831. MANAGEMENT STRUCTURE.

(a) Repeal of Requirements for Certain Career Management Directors,
Boards, and Policies.--Sections 1703, 1705, 1706, and 1707 of title 10,
United States Code, are repealed.
(b) Conforming Amendments.--Chapter 87 of such title is amended--
(1) in section 1724(d)--
(A) in the first sentence, by striking ``The
acquisition career program board concerned'' and all
that follows through ``if the board certifies'' and
inserting ``The Secretary of Defense may waive any or
all of the requirements of subsections (a) and (b) with
respect to an employee of the Department of Defense or
member of the armed forces if the Secretary
determines'';
(B) in the second sentence, by striking ``the
board'' and inserting ``the Secretary''; and
(C) by striking the third sentence;
(2) in section 1732(b)--
(A) in paragraph (1)(C), by striking ``, as
validated by the appropriate career program management
board''; and
(B) in paragraph (2)(A)(ii), by striking ``has been
certified by the acquisition career program board of the
employing military department as possessing'' and
inserting ``possess'';
(3) in section 1732(d)--
(A) in paragraph (1)--
(i) in the first sentence, by striking ``the
acquisition career program board of a military
department'' and all that follows through ``if the
board certifies'' and inserting ``the Secretary of
Defense may waive any or all of the requirements
of subsection (b) with respect to an employee if
the Secretary determines'';
(ii) in the second sentence, by striking ``the
board'' and inserting ``the Secretary''; and
(iii) by striking the third sentence; and
(B) in paragraph (2), by striking ``The acquisition
career program board of a military department'' and
inserting ``The Secretary'';
(4) in section 1734--
(A) in subsection (d)--
(i) by striking paragraph (2); and
(ii) by redesignating paragraph (3) as
paragraph (2), and in that paragraph by striking
the second sentence; and
(B) in subsection (e)(2), by striking ``, by the
acquisition career program board of the department
concerned,''; and
(5) in section 1737(c)--
(A) by striking paragraph (2); and
(B) by striking ``(1) The Secretary'' and inserting
``The Secretary''.

[[Page 1550]]
117 STAT. 1550

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

(a) Workforce Qualification Requirements and Examinations.--Section
1725 of such title is repealed.
(b) Acquisition Corps Requirements.--Subchapter III of chapter 87 of
title 10, United States Code, is amended--
(1) in section 1731, by striking subsection (c);
(2) in section 1732(c)(2), by striking the second and third
sentences;
(3) in section 1734(g)--
(A) by striking paragraph (2); and
(B) in paragraph (1), by striking ``(1) The
Secretary'' and inserting ``The Secretary''; and
(4) in section 1737, by striking subsection (d).

(c) Appointment of Scholarship Recipient in Competitive Service.--
Section 1744(c)(3)(A)(i) of such title is amended by striking ``and such
other requirements as the Office of Personnel Management may
prescribe''.

SEC. 833. SINGLE ACQUISITION CORPS.

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

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

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

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

``The Secretary of Defense shall conduct the following education and
training programs:

[[Page 1551]]
117 STAT. 1551

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

(b) Conforming Amendments.--Sections 1743 and 1744 of such title are
repealed.

SEC. 835. GENERAL MANAGEMENT PROVISIONS.

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

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

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

``(c) Definition.--In this section, the term `contract contingency
force', with respect to an armed force, has the meaning given such term
in regulations prescribed by the Secretary concerned.''.

SEC. 836. CLERICAL AMENDMENTS.

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

[[Page 1552]]
117 STAT. 1552

(3) The table of sections at the beginning of subchapter IV
is amended by striking the items relating to sections 1742,
1743, and 1744 and inserting the following:

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

(4) The table of sections at the beginning of subchapter V
is amended by striking the item relating to section 1763 and
inserting the following:

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

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

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

(a) Additional Authority.--Section 129b of title 10, United States
Code, is amended by adding at the end the following new subsection:
``(d) Additional Authority for Personal Services Contracts.--(1) In
addition to the authority provided under subsection (a), the Secretary
of Defense may enter into personal services contracts if the personal
services--
``(A) are to be provided by individuals outside the United
States, regardless of their nationality, and are determined by
the Secretary to be necessary and appropriate for supporting the
activities and programs of the Department of Defense outside the
United States;
``(B) directly support the mission of a defense intelligence
component or counter-intelligence organization of the Department
of Defense; or
``(C) directly support the mission of the special operations
command of the Department of Defense.

``(2) The contracting officer for a personal services contract under
this subsection shall be responsible for ensuring that--
``(A) the services to be procured are urgent or unique; and
``(B) it would not be practicable for the Department to
obtain such services by other means.

``(3) The requirements of section 3109 of title 5 shall not apply to
a contract entered into under this subsection.''.
(b) Conforming Amendments.--(1) The heading for section 129b of such
title is amended to read as follows:

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

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

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

SEC. 842. ELIMINATION OF CERTAIN SUBCONTRACT NOTIFICATION REQUIREMENTS.

Subsection (e) of section 2306 of title 10, United States Code, is
amended--

[[Page 1553]]
117 STAT. 1553

(1) by striking ``(A)'' and ``(B)'' and inserting ``(i)''
and ``(ii)'', respectively;
(2) by redesignating paragraphs (1) and (2) as subparagraphs
(A) and (B), respectively;
(3) by striking ``Each'' and inserting ``(1) Except as
provided in paragraph (2), each''; and
(4) by adding at the end the following new paragraph:

``(2) Paragraph (1) shall not apply to a prime contract with a
contractor that maintains a purchasing system approved by the
contracting officer for the contract.''.

SEC. 843. MULTIYEAR TASK AND DELIVERY ORDER CONTRACTS.

(a) Repeal of Applicability of Existing Authority and Limitations.--
Section 2306c of title 10, United States Code, is amended by striking
subsection (g).
(b) Contract Period.--Section 2304a of such title is amended--
(1) by redesignating subsections (f) and (g) as subsections
(g) and (h), respectively; and
(2) by inserting after subsection (e) the following new
subsection (f):

``(f) Contract Period.--The head of an agency entering into a task
or delivery order contract under this section may provide for the
contract to cover a total period of not more than five years.''.

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

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

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

Section 806(c) of the Bob Stump National Defense Authorization Act
for Fiscal Year 2003 (Public Law 107-314; 116 Stat. 2607; 10 U.S.C. 2302
note) is amended by adding at the end the following new paragraph:
``(3) If items are deployed under the rapid acquisition and
deployment procedures prescribed pursuant to this section, or under any
other authority, before the completion of operational test and
evaluation of the items, the Director of Operational Test and Evaluation
shall have access to operational records and data relevant to such items
in accordance with section 139(e)(3) of title 10, United States Code,
for the purpose of completing operational test and evaluation of the
items. The access to the operational records and data shall be provided
in a time and manner determined by the Secretary of Defense consistent
with requirements of operational security and other relevant operational
requirements.''.

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

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

[[Page 1554]]
117 STAT. 1554

and inserting ``(as in effect on the date of the enactment of this Act),
and the corresponding provision of any successor to such Instruction,''.

SEC. 847. CERTAIN WEAPONS-RELATED PROTOTYPE PROJECTS.

(a) Extension of Authority.--Subsection (g) of section 845 of the
National Defense Authorization Act for Fiscal Year 1994 (10 U.S.C. 2371
note) is amended by striking ``September 30, 2004'' and inserting
``September 30, 2008''.
(b) Increased Scope of Authority.--Subsection (a) of such section is
amended by inserting before the period at the end the following: ``, or
to improvement of weapons or weapon systems in use by the Armed
Forces''.
(c) Pilot Program for Transition to Follow-on Contracts.--Such
section, as amended by subsection (a), is further amended--
(1) by redesignating subsections (e), (f), and (g) as
subsections (f), (g), and (h), respectively; and
(2) by inserting after subsection (d) the following new
subsection (e):

``(e) Pilot Program for Transition to Follow-on Contracts.--(1) The
Secretary of Defense is authorized to carry out a pilot program for
follow-on contracting for the production of items or processes under
prototype projects carried out under this section.
``(2) Under the pilot program--
``(A) a qualifying contract for the procurement of such an
item or process, or a qualifying subcontract under a contract
for the procurement of such an item or process, may be treated
as a contract or subcontract, respectively, for the procurement
of commercial items, as defined in section 4(12) of the Office
of Federal Procurement Policy Act (41 U.S.C. 403(12)); and
``(B) the item or process may be treated as an item or
process, respectively, that is developed in part with Federal
funds and in part at private expense for the purposes of section
2320 of title 10, United States Code.

``(3) For the purposes of the pilot program, a qualifying contract
or subcontract is a contract or subcontract, respectively, with a
nontraditional defense contractor that--
``(A) does not exceed $50,000,000; and
``(B) is either--
``(i) a firm, fixed-price contract or subcontract;
or
``(ii) a fixed-price contract or subcontract with
economic price adjustment.

``(4) The authority to conduct a pilot program under this subsection
shall terminate on September 30, 2008. The termination of the authority
shall not affect the validity of contracts or subcontracts that are
awarded or modified during the period of the pilot program, without
regard to whether the contracts or subcontracts are performed during the
period.''.

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

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

[[Page 1555]]
117 STAT. 1555

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

``(a) Limited Acquisition Authority for Commander of Certain Unified
Combatant Command.--The Secretary of Defense may delegate to the
commander of the unified combatant command referred to in subsection (b)
authority of the Secretary under chapter 137 of this title sufficient to
enable the commander to develop and acquire equipment described in
subsection (c). The exercise of authority so delegated is subject to the
authority, direction, and control of the Secretary.
``(b) Command Described.--The commander to whom authority is
delegated under subsection (a) is the commander of the unified combatant
command that has the mission for joint warfighting experimentation, as
assigned by the Secretary of Defense.
``(c) Equipment.--The equipment referred to in subsection (a) is as
follows:
``(1) Equipment for battle management command, control,
communications, and intelligence.
``(2) Any other equipment that the commander referred to in
subsection (b) determines necessary and appropriate for--
``(A) facilitating the use of joint forces in
military operations; or
``(B) enhancing the interoperability of equipment
used by the various components of joint forces.

``(d) Exceptions.--The authority delegated under subsection (a) does
not apply to the development or acquisition of a system for which--
``(1) the total expenditure for research, development, test,
and evaluation is estimated to be $10,000,000 or more; or
``(2) the total expenditure for procurement is estimated to
be $50,000,000 or more.

``(e) Internal Audits and Inspections.--The commander referred to in
subsection (b) shall require the inspector general of that command to
conduct internal audits and inspections of purchasing and contracting
administered by the commander under the authority delegated under
subsection (a).
``(f) Termination.--The Secretary may delegate the authority
referred to in subsection (a) only during fiscal years 2004 through
2006, and any authority so delegated shall not be in effect after
September 30, 2006.''.
(2) The table of sections at the beginning of such chapter is
amended by inserting after the item relating to section 167 the
following new item:

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

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

[[Page 1556]]
117 STAT. 1556

Subtitle E--Acquisition-Related Reports and Other Matters

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

(a) Report.--The Comptroller General shall prepare and submit to the
congressional defense committees a report on the timeliness of contract
payments made to small businesses during fiscal years 2001 and 2002 by
the Department of Defense. The report shall include an estimate of the
following:
(1) The total amount of contract payments made by the
Department to small businesses.
(2) The percentage of total contract payments to small
businesses that were not made in a timely manner.
(3) The reasons that contract payments to small businesses
were not made in a timely manner.
(4) The amount of interest owed and paid by the Department
to small businesses due to contract payments not made in a
timely manner.
(5) Such recommendations as the Comptroller General
considers appropriate to improve the process for making contract
payments to small businesses in a timely manner.

(b) Definitions.--For purposes of subsection (a)--
(1) a payment is considered not made in a timely manner if
it caused interest to accrue under chapter 39 of title 31,
United States Code (relating to prompt payment); and
(2) the term ``small business'' means an entity that
qualifies as a small business concern under the Small Business
Act.

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

(a) Inapplicability of Randolph-Sheppard Act.--The Randolph-Sheppard
Act does not apply to any contract described in subsection (b) for so
long as the contract is in effect, including for any period for which
the contract is extended pursuant to an option provided in the contract.
(b) Javits-Wagner-O'Day Contracts.--Subsection (a) applies to any
contract for the operation of a military mess hall, military troop
dining facility, or any similar dining facility operated for the purpose
of providing meals to members of the Armed Forces that--
(1) was entered into before the date of the enactment of
this Act with a nonprofit agency for the blind or an agency for
other severely handicapped in compliance with section 3 of the
Javits-Wagner-O'Day Act (41 U.S.C. 48); and
(2) is in effect on such date.

(c) [NOTE: 20 USC 107 note.] Enactment of Popular Name as Short
Title.--The Act entitled ``An Act to authorize the operation of stands
in Federal buildings by blind persons, to enlarge the economic
opportunities of the blind, and for other purposes'', approved June 20,
1936 (commonly known as the ``Randolph-Sheppard Act'') (20 U.S.C. 107 et
seq.), is amended by adding at the end the following new section:

``Sec. 11. This Act may be cited as the `Randolph-Sheppard Act'.''.

[[Page 1557]]
117 STAT. 1557

SEC. 853. [NOTE: 10 USC 2302 note.] DEMONSTRATION PROJECT FOR
CONTRACTORS EMPLOYING PERSONS WITH DISABILITIES.

(a) Authority.--The Secretary of Defense may carry out a
demonstration project by entering into one or more contracts with an
eligible contractor for the purpose of providing defense contracting
opportunities for severely disabled individuals.
(b) Evaluation Factor.--In evaluating an offer for a contract under
the demonstration program, the percentage of the total workforce of the
offeror consisting of severely disabled individuals employed by the
offeror shall be one of the evaluation factors.
(c) Definitions.--In this section:
(1) Eligible contractor.--The term ``eligible contractor''
means a business entity operated on a for-profit or nonprofit
basis that--
(A) employs severely disabled individuals at a rate
that averages not less than 33 percent of its total
workforce over a period prescribed by the Secretary;
(B) pays not less than the minimum wage prescribed
pursuant to section 6 of the Fair Labor Standards Act of
1938 (29 U.S.C. 206) to the employees who are severely
disabled individuals; and
(C) provides for its employees health insurance and
a retirement plan comparable to those provided for
employees by business entities of similar size in its
industrial sector or geographic region.
(2) Severely disabled individual.--The term ``severely
disabled individual'' means an individual with a disability (as
defined in section 3 of the Americans with Disabilities Act of
1990 (42 U.S.C. 12102)) who has a severe physical or mental
impairment that seriously limits one or more functional
capacities.

TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

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

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

Subtitle B--Space Activities

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

[[Page 1558]]
117 STAT. 1558

Subtitle C--Department of Defense Intelligence Components

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

Subtitle D--Other Matters

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

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

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

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

SEC. 902. COMBATANT COMMANDER INITIATIVE FUND.

(a) [NOTE: 10 USC 166a note.] Redesignation of CINC Initiative
Fund.--(1) The CINC Initiative Fund administered under section 166a of
title 10, United States Code, is redesignated as the ``Combatant
Commander Initiative Fund''.

(2) Section 166a of title 10, United States Code, is amended--
(A) by striking the heading for subsection (a) and inserting
``Combatant Commander Initiative Fund.--``; and
(B) by striking ``CINC Initiative Fund'' in subsections (a),
(c), and (d), and inserting ``Combatant Commander Initiative
Fund''.

(3) [NOTE: 10 USC 166a note.] Any reference to the CINC Initiative
Fund in any other provision of law or in any regulation, document,
record, or other paper of the United States shall be considered to be a
reference to the Combatant Commander Initiative Fund.

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

(c) Increased Maximum Amounts Authorized for Use.--Subsection (e)(1)
of such section is amended--
(1) in subparagraph (A), by striking ``$7,000,000'' and
inserting ``$10,000,000'';
(2) in subparagraph (B), by striking ``$1,000,000'' and
inserting ``$10,000,000''; and
(3) in subparagraph (C), by striking ``$2,000,000'' and
inserting ``$5,000,000''.

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

(a) Biennial Review.--Section 153 of title 10, United States Code,
by adding at the end the following new subsection:

[[Page 1559]]
117 STAT. 1559

``(d) Biennial Review of
National [NOTE: Deadline. Reports.] Military Strategy.--(1) Not later
then February 15 of each even-numbered year, the Chairman shall submit
to the Committee on Armed Services of the Senate and the Committee on
Armed Services of the House of Representatives a report containing the
results of a comprehensive examination of the national military
strategy. Each such examination shall be conducted by the Chairman in
conjunction with the other members of the Joint Chiefs of Staff and the
commanders of the unified and specified commands.

``(2) Each report on the examination of the national military
strategy under paragraph (1) shall include the following:
``(A) Delineation of a national military strategy consistent
with--
``(i) the most recent National Security Strategy
prescribed by the President pursuant to section 108 of
the National Security Act of 1947 (50 U.S.C. 404a);
``(ii) the most recent annual report of the
Secretary of Defense submitted to the President and
Congress pursuant to section 113 of this title; and
``(iii) the most recent Quadrennial Defense Review
conducted by the Secretary of Defense pursuant to
section 118 of this title.
``(B) A description of the strategic environment and the
opportunities and challenges that affect United States national
interests and United States national security.
``(C) A description of the regional threats to United States
national interests and United States national security.
``(D) A description of the international threats posed by
terrorism, weapons of mass destruction, and asymmetric
challenges to United States national security.
``(E) Identification of United States national military
objectives and the relationship of those objectives to the
strategic environment, regional, and international threats.
``(F) Identification of the strategy, underlying concepts,
and component elements that contribute to the achievement of
United States national military objectives.
``(G) Assessment of the capabilities and adequacy of United
States forces (including both active and reserve components) to
successfully execute the national military strategy.
``(H) Assessment of the capabilities, adequacy, and
interoperability of regional allies of the United States and or
other friendly nations to support United States forces in combat
operations and other operations for extended periods of time.

``(3)(A) As part of the assessment under this subsection, the
Chairman, in conjunction with the other members of the Joint Chiefs of
Staff and the commanders of the unified and specified commands, shall
undertake an assessment of the nature and magnitude of the strategic and
military risks associated with successfully executing the missions
called for under the current National Military Strategy.
``(B) In preparing the assessment of risk, the Chairman should make
assumptions pertaining to the readiness of United States forces (in both
the active and reserve components), the length of conflict and the level
of intensity of combat operations, and the levels of support from allies
and other friendly nations.

[[Page 1560]]
117 STAT. 1560

``(4) Before submitting a report under this subsection to the
Committees on Armed Services of the Senate and House of Representatives,
the Chairman shall provide the report to the Secretary of Defense. The
Secretary's assessment and comments thereon (if any) shall be included
with the report. If the Chairman's assessment in such report in any year
is that the risk associated with executing the missions called for under
the National Military Strategy is significant, the Secretary shall
include with the report as submitted to those committees the Secretary's
plan for mitigating the risk.''.
(b) Conforming Amendment.--Subsection (b)(1) of such section is
amended by striking ``each year'' and inserting ``of each odd-numbered
year''.

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

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

(2) The report shall also include, in addition to the matters
discussed pursuant to paragraph (1), a discussion of the following
matters:
(A) The military strategy to employ the United States
Special Operations Command to fight the global war on terrorism
and how that strategy contributes to the overall national
security strategy with regard to the global war on terrorism.
(B) The scope of the authority granted to the commander of
that command to act as a supported commander and to prosecute
the global war on terrorism.
(C) The operational and legal parameters within which the
commander of that command is to exercise command authority in
foreign countries when taking action against foreign and United
States citizens engaged in terrorist activities.
(D) The decisionmaking procedures for authorizing, planning,
and conducting individual missions by that command, including--
(i) the requirement in section 167(d)(2) of title
10, United States Code, that the conduct of a special
operations mission under the command of the commander of
the United States Special Operations Command be
authorized by the President or the Secretary of Defense;
and
(ii) procedures for consultation with Congress.
(E) The procedures for the commander of that command to use
to coordinate with commanders of other combatant commands,
especially geographic commands.

[[Page 1561]]
117 STAT. 1561

(F) Future organization plans and resource requirements for
that command conducting the global counterterrorism mission.
(G) The effect of the changing role of that command on other
special operations missions, including foreign internal defense,
psychological operations, civil affairs, unconventional warfare,
counterdrug activities, and humanitarian activities.

(c) Forms of Report.--The report shall be submitted in unclassified
form and, as necessary, in classified form.

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

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

SEC. 906. [NOTE: 5 USC 1101 note.] TRANSFER TO OFFICE OF PERSONNEL
MANAGEMENT OF PERSONNEL INVESTIGATIVE FUNCTIONS AND RELATED
PERSONNEL OF THE DEPARTMENT OF DEFENSE.

(a) Transfer of Functions.--(1) Subject to subsection (b), the
Secretary of Defense may transfer to the Office of Personnel Management
the personnel security investigations functions that, as of the date of
the enactment of this Act, are performed by the Defense Security Service
of the Department of Defense. Such a transfer may be made only with the
concurrence of the Director of the Office of Personnel Management.
(2) The Director of the Office of Personnel Management may accept a
transfer of functions under paragraph (1).
(3) Any transfer of a function under this subsection is a transfer
of function within the meaning of section 3503 of title 5, United States
Code.
(b) Limitation.--(1) The Secretary of Defense may not make a
transfer of functions under subsection (a) unless the Secretary
determines, and certifies in writing to the Committee on Armed Services
of the House of Representatives and the Committee on Armed Services of
the Senate, that each of the conditions specified in paragraph (2) has
been met. Such a transfer may then be made only after a period of 30
days has elapsed after the date on which the certification is received
by those committees.
(2) The conditions referred to in paragraph (1) are the following:
(A) That the Office of Personnel Management is fully capable
of carrying out high-priority investigations required by the
Secretary of Defense within a timeframe set by the Secretary of
Defense.
(B) That the Office of Personnel Management has undertaken
necessary and satisfactory steps to ensure that investigations
performed on Department of Defense contract personnel will be
conducted in an expeditious manner sufficient to ensure that
those contract personnel are available to the Department of
Defense within a timeframe set by the Secretary of Defense.
(C) That the Department of Defense will retain capabilities
in the form of Federal employees to monitor and investigate

[[Page 1562]]
117 STAT. 1562

Department of Defense and contractor personnel as necessary to
perform counterintelligence functions and polygraph activities
of the Department.
(D) That the authority to adjudicate background
investigations will remain with the Department of Defense and
that the transfer of Defense Security Service personnel to the
Office of Personnel Management will improve the speed and
efficiency of the adjudication process.
(E) That the Department of Defense will retain within the
Defense Security Service sufficient personnel and capabilities
to improve Department of Defense industrial security programs
and practices.

(c) Transfer of Personnel.--(1) If the Director of the Office of
Personnel Management accepts a transfer of functions under subsection
(a), the Secretary of Defense shall also transfer to the Office of
Personnel Management, and the Director shall accept--
(A) the Defense Security Service employees who perform those
functions immediately before the transfer of functions; and
(B) the Defense Security Service employees who, as of such
time, are first level supervisors of employees transferred under
subparagraph (A).

(2) The Secretary may also transfer to the Office of Personnel
Management any Defense Security Service employees (including higher
level supervisors) who provide support services for the performance of
the functions transferred under subsection (a) or for the personnel
(including supervisors) transferred under paragraph (1) if the
Director--
(A) determines that the transfer of such additional
employees and the positions of such employees to the Office of
Personnel Management is necessary in the interest of effective
performance of the transferred functions; and
(B) accepts the transfer of the additional employees.

(3) In the case of an employee transferred to the Office of
Personnel Management under paragraph (1) or (2), whether a full-time or
part-time employee--
(A) subsections (b) and (c) of section 5362 of title 5,
United States Code, relating to grade retention, shall apply to
the employee, except that--
(i) the grade retention period shall be the one-year
period beginning on the date of the transfer; and
(ii) paragraphs (1), (2), and (3) of such subsection
(c) shall not apply to the employee; and
(B) the employee may not be separated, other than pursuant
to chapter 75 of title 5, United States Code, during such one-
year period.

(d) Actions After Transfer.--(1) Not [NOTE: Deadline.]  later than
one year after a transfer of functions to the Office of Personnel
Management under subsection (a), the Director of the Office of Personnel
Management, in coordination with the Secretary of Defense, shall review
all functions performed by personnel of the Defense Security Service at
the time of the transfer and make a written determination regarding
whether each such function is inherently governmental or is otherwise
inappropriate for performance by contractor personnel.

(2) A function performed by Defense Security Service employees as of
the date of the enactment of this Act may not be converted

[[Page 1563]]
117 STAT. 1563

to contractor performance by the Director of the Office of Personnel
Management until--
(A) the Director reviews the function in accordance with the
requirements of paragraph (1) and makes a written determination
that the function is not inherently governmental and is not
otherwise inappropriate for contractor performance; and
(B) the Director conducts a public-private competition
regarding the performance of that function in accordance with
the requirements of the Office of Management and Budget Circular
A-76.

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

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

Subtitle B--Space Activities

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

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

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

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

[[Page 1564]]
117 STAT. 1564

Defense designated as the Department of Defense Executive Agent for
Space.
``(2) The strategy under paragraph (1) shall, at a minimum, address
the following issues:
``(A) Short-term and long-term goals of the space science
and technology programs of the Department of Defense.
``(B) The process for achieving the goals identified under
subparagraph (A), including an implementation plan for achieving
those goals.
``(C) The process for assessing progress made toward
achieving those goals.

``(3) The strategy under paragraph (1) shall be included as part of
the annual National Security Space Plan developed pursuant to Department
of Defense regulations and shall be provided to Department of Defense
components and science and technology entities of the Department of
Defense to support the planning, programming, and budgeting processes of
the Department.
``(4) The strategy under paragraph (1) shall be developed in
consultation with the directors of research laboratories of the
Department of Defense, the directors of the other Department of Defense
research components, and the heads of other organizations of the
Department of Defense as identified by the Director of Defense Research
and Engineering and the Department of Defense Executive Agent for Space.
``(5) The strategy shall be available for review by the
congressional defense committees.
``(b) Required Coordination.--In carrying out the space science and
technology strategy developed under subsection (a), the directors of the
research laboratories of the Department of Defense, the directors of the
other Department of Defense research components, and the heads of all
other appropriate organizations identified jointly by the Director of
Defense Research and Engineering and the Department of Defense Executive
Agent for Space shall each--
``(1) identify research projects in support of that strategy
that contribute directly and uniquely to the development of
space technology; and
``(2) inform the Director of Defense Research and
Engineering and the Department of Defense Executive Agent for
Space of the planned budget and planned schedule for executing
those projects.

``(c) Definitions.--In this section:
``(1) The term `research laboratory of the Department of
Defense' means any of the following:
``(A) The Air Force Research Laboratory.
``(B) The Naval Research Laboratory.
``(C) The Office of Naval Research.
``(D) The Army Research Laboratory.
``(2) The term `other Department of Defense research
component' means either of the following:
``(A) The Defense Advanced Research Projects Agency.
``(B) The National Reconnaissance Office.''.

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

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


[[Page 1565]]
117 STAT. 1565



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

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

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

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

``(a) Policy.--It is the policy of the United States for the
President to undertake actions appropriate to ensure, to the maximum
extent practicable, that the United States has the capabilities
necessary to launch and insert United States national security payloads
into space whenever such payloads are needed in space.
``(b) Included Actions.--The appropriate actions referred to in
subsection (a) shall include, at a minimum, providing resources and
policy guidance to sustain--
``(1) the availability of at least two space launch vehicles
(or families of space launch vehicles) capable of delivering
into space any payload designated by the Secretary of Defense or
the Director of Central Intelligence as a national security
payload; and
``(2) a robust space launch infrastructure and industrial
base.

``(c) Coordination.--The Secretary of Defense shall, to the maximum
extent practicable, pursue the attainment of the capabilities described
in subsection (a) in coordination with the Administrator of the National
Aeronautics and Space Administration.''.

(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding after the item relating to section
2272, as added by section 911(a)(2), the following new item:

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

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

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

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

``(a) Pilot Program.--The Secretary of Defense may carry out a pilot
program to determine the feasibility and desirability of

[[Page 1566]]
117 STAT. 1566

providing to non-United States Government entities space surveillance
data support described in subsection (b).
``(b) Space Surveillance Data Support.--Under such a pilot program,
the Secretary may provide to a non-United States Government entity,
subject to an agreement described in subsection (d), the following:
``(1) Satellite tracking services from assets owned or
controlled by the Department of Defense, but only if the
Secretary determines, in the case of any such agreement, that
providing such services to that entity is in the national
security interests of the United States.
``(2) Space surveillance data and the analysis of space
surveillance data, but only if the Secretary determines, in the
case of any such agreement, that providing such data and
analysis to that entity is in the national security interests of
the United States.

``(c) Eligible Entities.--Under the pilot program, the Secretary may
provide space surveillance data support to non-United States Government
entities including the following:
``(1) State governments.
``(2) Governments of political subdivisions of States.
``(3) United States commercial entities.
``(4) Governments of foreign countries.
``(5) Foreign commercial entities.

``(d) Required Agreement.--The Secretary may not provide space
surveillance data support to a non-United States Government entity under
the pilot program unless that entity enters into an agreement with the
Secretary under which the entity--
``(1) agrees to pay an amount that may be charged by the
Secretary under subsection (e); and
``(2) agrees not to transfer any data or technical
information received under the agreement, including the analysis
of tracking data, to any other entity without the express
approval of the Secretary.

``(e) Rule of Construction Concerning Provision of Intelligence
Assets or Data.--Nothing in this section shall be considered to
authorize the provision of services or information concerning, or
derived from, United States intelligence assets or data.
``(f) Charges.--(1) As a condition of an agreement under subsection
(d), the Secretary may (except as provided in paragraph (2)) require the
non-United States Government entity entering into the agreement to pay
to the Department of Defense such amounts as the Secretary determines to
be necessary to reimburse the Department for the costs of the Department
of providing space surveillance data support under the agreement.
``(2) The Secretary may not require the government of a State or of
a political subdivision of a State to pay any amount under paragraph
(1).
``(g) Crediting of Funds Received.--Funds received for the provision
of space surveillance data support pursuant to an agreement under this
section shall be credited to accounts of the Department of Defense that
are current when the funds are received and that are available for the
same purposes as the accounts originally charged to provide such
support. Funds so credited shall merge with and become available for
obligation for the same period as the accounts to which they are
credited.

[[Page 1567]]
117 STAT. 1567

``(h) Procedures.--The Secretary shall establish procedures for the
conduct of the pilot program. As part of those procedures, the Secretary
may allow space surveillance data and analysis of space surveillance
data to be provided through a contractor of the Department of Defense.
``(i) [NOTE: Deadline.] Duration of Pilot Program.--The pilot
program under this section shall be conducted during the three-year
period beginning on a date specified by the Secretary of Defense, which
date shall be not later than 180 days after the date of the enactment of
this section.''.

(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding after the item relating to section
2273, as added by section 912(b), the following new item:

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

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

(a) Revised Content.--Paragraph (1) of section 2281(d) of title 10,
United States Code, is amended--
(1) by striking subparagraph (C);
(2) by redesignating subparagraph (D) as subparagraph (C);
(3) by redesignating subparagraph (E) as subparagraph (D)
and in that subparagraph striking ``Any progress made toward''
and inserting ``Progress and challenges in''; and
(4) by striking subparagraph (F) and inserting the
following:
``(E) Progress and challenges in protecting GPS from
jamming, disruption, and interference.
``(F) Progress and challenges in developing the enhanced
Global Positioning System required by section 218(b) of the
Strom Thurmond National Defense Authorization Act for Fiscal
Year 1999 (Public Law 105-261; 112 Stat. 1951; 10 U.S.C. 2281
note).''.

(b) Conforming Amendment.--Paragraph (2) of such section is amended
by inserting ``(C),'' after ``under subparagraphs''.

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

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

[[Page 1568]]
117 STAT. 1568

Subtitle C--Department of Defense Intelligence Components

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

(a) [NOTE: 10 USC 441 note.] Redesignation.--The National Imagery
and Mapping Agency of the Department of Defense is hereby redesignated
as the National Geospatial-Intelligence Agency.

(b) Definition of Geospatial Intelligence.--Section 467 of title 10,
United States Code, is amended by adding at the end the following new
paragraph:
``(5) The term `geospatial intelligence' means the
exploitation and analysis of imagery and geospatial information
to describe, assess, and visually depict physical features and
geographically referenced activities on the earth. Geospatial
intelligence consists of imagery, imagery intelligence, and
geospatial information.''.

(c) Agency Missions.--(1) Section 442(a) of title 10, United States
Code, is amended--
(A) in paragraph (1), by inserting ``geospatial intelligence
consisting of'' after ``provide''; and
(B) in paragraph (2), by striking ``Imagery, intelligence,
and information'' and inserting ``Geospatial intelligence''.

(2) Section 110(a) of the National Security Act of 1947 (50 U.S.C.
404e(a)) is amended by striking ``imagery'' and inserting ``geospatial
intelligence''.
(d) Technical and Conforming Amendments to Title 10, United States
Code.--Title 10, United States Code, is amended as follows:
(1) The heading of chapter 22 is amended to read as follows:

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

(2) Chapter 22 is amended--
(A) [NOTE: 10 USC 441-444, 451-457, 461, 462.] by
striking ``National Imagery and Mapping Agency'' each
place it appears (other than in section 461(b)) and
inserting ``National Geospatial-Intelligence Agency'';
(B) in section 453(b), by striking ``NIMA'' in
paragraphs (1) and (2) and inserting ``NGA''; and
(C) in section 461(b)--
(i) by striking ``The National Imagery and
Mapping Agency'' and inserting ``The Director of
the National Geospatial-Intelligence Agency''; and
(ii) by striking ``on the day before'' and all
that follows through the period and inserting ``on
September 30, 1996.''.
(3) Section 193 is amended--
(A) by striking ``National Imagery and Mapping
Agency'' in subsections (d)(1), (d)(2), (e), and (f)(4)
and inserting ``National Geospatial-Intelligence
Agency'';
(B) in the heading for subsection (d), by striking
``National Imagery and Mapping Agency'' and inserting
``National Geospatial-Intelligence Agency''; and
(C) in the heading for subsection (e), by striking
``NIMA'' and inserting ``NGA''.

[[Page 1569]]
117 STAT. 1569

(4) Section 201 is amended by striking ``National Imagery
and Mapping Agency'' in subsections (b)(2)(C) and (c)(2)(C) and
inserting ``National Geospatial-Intelligence Agency''.
(5)(A) Section 424 is amended by striking ``National Imagery
and Mapping Agency'' in subsection (b)(3) and inserting
``National Geospatial-Intelligence Agency''.
(B)(i) The heading of such section is amended to read as
follows:

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

(ii) The item relating to that section in the table of
sections at the beginning of subchapter I of chapter 21 is
amended to read as follows:

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

(6) Section 425(a) is amended by adding at the end the
following new paragraph:
``(5) The words `National Geospatial-Intelligence Agency',
the initials `NGA,' or the seal of the National Geospatial-
Intelligence Agency.''.
(7) Section 1614(2)(C) is amended by striking ``National
Imagery and Mapping Agency'' and inserting ``National
Geospatial-Intelligence Agency''.
(8) The tables of chapters at the beginning of subtitle A,
and at the beginning of part I of subtitle A, are each amended
by striking ``Imagery and Mapping'' in the item relating to
chapter 22 and inserting ``Geospatial-Intelligence''.

(e) Conforming Amendments to National Security Act of 1947.--The
National Security Act of 1947 is amended as follows:
(1) Section 3 (50 U.S.C. 401a) is amended by striking
``National Imagery and Mapping Agency'' in paragraph (4)(E) and
inserting ``National Geospatial-Intelligence Agency''.
(2) Section 105 (50 U.S.C. 403-5) is amended by striking
``National Imagery and Mapping Agency'' in subsections (b)(2)
and (d)(3) and inserting ``National Geospatial-Intelligence
Agency''.
(3) Section 105A (50 U.S.C. 403-5a) is amended by striking
``National Imagery and Mapping Agency'' in subsection (b)(1)(C)
and inserting ``National Geospatial-Intelligence Agency''.
(4) Section 105C (50 U.S.C. 403-5c) is amended--
(A) by striking ``National Imagery and Mapping
Agency'' each place it appears and inserting ``National
Geospatial-Intelligence Agency'';
(B) by striking ``NIMA'' each place it appears and
inserting ``NGA''; and
(C) by striking ``NIMA's'' in subsection
(a)(6)(B)(iv)(II) and inserting ``NGA's''.
(5) Section 106 (50 U.S.C. 403-6) is amended by striking
``National Imagery and Mapping Agency'' in subsection (a)(2)(C)
and inserting ``National Geospatial-Intelligence Agency''.
(6) Section 110 (50 U.S.C. 404e) is amended--
(A) by striking ``National Imagery and Mapping
Agency'' in subsections (a), (b), and (c) and inserting
``National Geospatial-Intelligence Agency''; and

[[Page 1570]]
117 STAT. 1570

(B) by striking ``national imagery and mapping
agency'' in the section heading and inserting ``national
geospatial-intelligence agency''.
(7) The item relating to section 110 in the table of
contents in the first section is amended to read as follows:

``Sec. 110. National mission of National Geospatial-Intelligence
Agency.''.

(f) Cross Reference Correction.--Section 442(d) of title 10, United
States Code, is amended by striking ``section 120(a) of the National
Security Act of 1947'' and inserting ``section 110(a) of the National
Security Act of 1947 (50 U.S.C. 404e(a))''.
(g) [NOTE: 10 USC 441 note.] References.--Any reference to the
National Imagery and Mapping Agency in any law, regulation, map,
document, record, or other paper of the United States shall be
considered to be a reference to the National Geospatial-Intelligence
Agency.

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

(a) Protection of Operational Files of NSA.--Title VII of the
National Security Act of 1947 (50 U.S.C. 431 et seq.) is amended by
adding at the end the following new section:


``operational files of the national security agency


``Sec. 704. [NOTE: 50 USC 432b.] (a) Exemption of Certain
Operational Files From Search, Review, Publication, or Disclosure.--The
Director of the National Security Agency, in coordination with the
Director of Central Intelligence, may exempt operational files of the
National Security Agency from the provisions of section 552 of title 5,
United States Code, which require publication, disclosure, search, or
review in connection therewith.

``(b) Operational Files Defined.--(1) In this section, the term
`operational files' means--
``(A) files of the Signals Intelligence Directorate of the
National Security Agency (and any successor organization of that
directorate) that document the means by which foreign
intelligence or counterintelligence is collected through
technical systems; and
``(B) files of the Research Associate Directorate of the
National Security Agency (and any successor organization of that
directorate) that document the means by which foreign
intelligence or counterintelligence is collected through
scientific and technical systems.

``(2) Files that are the sole repository of disseminated
intelligence, and files that have been accessioned into the National
Security Agency Archives (or any successor organization) are not
operational files.
``(c) Search and Review for Information.--Notwithstanding subsection
(a), exempted operational files shall continue to be subject to search
and review for information concerning any of the following:
``(1) United States citizens or aliens lawfully admitted for
permanent residence who have requested information on themselves
pursuant to the provisions of section 552 or 552a of title 5,
United States Code.
``(2) Any special activity the existence of which is not
exempt from disclosure under the provisions of section 552 of
title 5, United States Code.

[[Page 1571]]
117 STAT. 1571

``(3) The specific subject matter of an investigation by any
of the following for any impropriety, or violation of law,
Executive order, or Presidential directive, in the conduct of an
intelligence activity:
``(A) The Committee on Armed Services and the
Permanent Select Committee on Intelligence of the House
of Representatives.
``(B) The Committee on Armed Services and the Select
Committee on Intelligence of the Senate.
``(C) The Intelligence Oversight Board.
``(D) The Department of Justice.
``(E) The Office of General Counsel of the National
Security Agency.
``(F) The Office of the Inspector General of the
Department of Defense.
``(G) The Office of the Director of the National
Security Agency.

``(d) Information Derived or Disseminated from Exempted Operational
Files.--(1) Files that are not exempted under subsection (a) that
contain information derived or disseminated from exempted operational
files shall be subject to search and review.
``(2) The inclusion of information from exempted operational files
in files that are not exempted under subsection (a) shall not affect the
exemption under subsection (a) of the originating operational files from
search, review, publication, or disclosure.
``(3) The declassification of some of the information contained in
exempted operational files shall not affect the status of the
operational file as being exempt from search, review, publication, or
disclosure.
``(4) Records from exempted operational files that have been
disseminated to and referenced in files that are not exempted under
subsection (a) and that have been returned to exempted operational files
for sole retention shall be subject to search and review.
``(e) Supercedure of Other Laws.--The provisions of subsection (a)
may not be superseded except by a provision of law that is enacted after
the date of the enactment of this section and that specifically cites
and repeals or modifies such provisions.
``(f) Allegation; Improper Withholding of Records; Judicial
Review.--(1) Except as provided in paragraph (2), whenever any person
who has requested agency records under section 552 of title 5, United
States Code, alleges that the National Security Agency has withheld
records improperly because of failure to comply with any provision of
this section, judicial review shall be available under the terms set
forth in section 552(a)(4)(B) of title 5, United States Code.
``(2) Judicial review shall not be available in the manner provided
for under paragraph (1) as follows:
``(A) In any case in which information specifically
authorized under criteria established by an Executive order to
be kept secret in the interests of national defense or foreign
relations is filed with, or produced for, the court by the
National Security Agency, such information shall be examined ex
parte, in camera by the court.
``(B) The court shall determine, to the fullest extent
practicable, the issues of fact based on sworn written
submissions of the parties.

[[Page 1572]]
117 STAT. 1572

``(C) When a complainant alleges that requested records are
improperly withheld because of improper placement solely in
exempted operational files, the complainant shall support such
allegation with a sworn written submission based upon personal
knowledge or otherwise admissible evidence.
``(D)(i) When a complainant alleges that requested records
were improperly withheld because of improper exemption of
operational files, the National Security Agency shall meet its
burden under section 552(a)(4)(B) of title 5, United States
Code, by demonstrating to the court by sworn written submission
that exempted operational files likely to contain responsible
records currently perform the functions set forth in subsection
(b).
``(ii) The court may not order the National Security Agency
to review the content of any exempted operational file or files
in order to make the demonstration required under clause (i),
unless the complainant disputes the National Security Agency's
showing with a sworn written submission based on personal
knowledge or otherwise admissible evidence.
``(E) In proceedings under subparagraphs (C) and (D), the
parties may not obtain discovery pursuant to rules 26 through 36
of the Federal Rules of Civil Procedure, except that requests
for admissions may be made pursuant to rules 26 and 36.
``(F) If the court finds under this subsection that the
National Security Agency has improperly withheld requested
records because of failure to comply with any provision of this
subsection, the court shall order the Agency to search and
review the appropriate exempted operational file or files for
the requested records and make such records, or portions
thereof, available in accordance with the provisions of section
552 of title 5, United States Code, and such order shall be the
exclusive remedy for failure to comply with this section (other
than subsection (g)).
``(G) If at any time following the filing of a complaint
pursuant to this paragraph the National Security Agency agrees
to search the appropriate exempted operational file or files for
the requested records, the court shall dismiss the claim based
upon such complaint.
``(H) Any information filed with, or produced for the court
pursuant to subparagraphs (A) and (D) shall be coordinated with
the Director of Central Intelligence before submission to the
court.

``(g) Decennial Review of Exempted Operational Files.--(1) Not less
than once every 10 years, the Director of the National Security Agency
and the Director of Central Intelligence shall review the exemptions in
force under subsection (a) to determine whether such exemptions may be
removed from a category of exempted files or any portion thereof. The
Director of Central Intelligence must approve any determination to
remove such exemptions.
``(2) The review required by paragraph (1) shall include
consideration of the historical value or other public interest in the
subject matter of a particular category of files or portions thereof and
the potential for declassifying a significant part of the information
contained therein.
``(3) A complainant that alleges that the National Security Agency
has improperly withheld records because of failure to comply

[[Page 1573]]
117 STAT. 1573

with this subsection may seek judicial review in the district court of
the United States of the district in which any of the parties reside, or
in the District of Columbia. In such a proceeding, the court's review
shall be limited to determining the following:
``(A) Whether the National Security Agency has conducted the
review required by paragraph (1) before the expiration of the
10-year period beginning on the date of the enactment of this
section or before the expiration of the 10-year period beginning
on the date of the most recent review.
``(B) Whether the National Security Agency, in fact,
considered the criteria set forth in paragraph (2) in conducting
the required review.''.

(b) Consolidation of Current Provisions on Protection of Operational
Files of CIA.--Title VII of such Act is further amended--
(1) in section 701(b) (50 U.S.C. 431(b)), by striking ``For
purposes of this title'' and inserting ``In this section,''; and
(2) in section 702 (50 U.S.C. 432)--
(A) by striking the section heading;
(B) by redesignating the text of that section as
subsection (g) of section 701 and redesignating
subsections (a), (b), and (c) thereof as paragraphs (1),
(2), and (3), respectively;
(C) by inserting ``Decennial Review of Exempted
Operational Files.--'' after the subsection designation
(as designated by subparagraph (B));
(D) in paragraph (1) (as redesignated by
subparagraph (B)), by striking ``of section 701 of this
Act'';
(E) in paragraph (2) (as redesignated by
subparagraph (B)), by striking ``of subsection (a) of
this section'' and inserting ``paragraph (1)''; and
(F) in paragraph (3) (as redesignated by
subparagraph (B))--
(i) by striking ``with this section'' in the
first sentence and inserting ``with this
subsection''; and
(ii) by striking ``to determining'' in the
second sentence and all that follows and inserting
``to determining the following:
``(A) Whether the Central Intelligence Agency has conducted
the review required by paragraph (1) before October 15, 1994, or
before the expiration of the 10-year period beginning on the
date of the most recent review.
``(B) Whether the Central Intelligence Agency, in fact,
considered the criteria set forth in paragraph (2) in conducting
the required review.''.

(c) Consolidation [NOTE: 50 USC 403-5c, 403-5e, 432, 432a.]  of
Current Provisions on Protection of Operational Files of Certain Other
Intelligence Agencies.--The National Security Act of 1947 (50 U.S.C. 401
et seq.) is further amended--
(1) by transferring section 105C (50 U.S.C. 403-5c), as
amended by section 921(e)(4), and section 105D (50 U.S.C. 403-
5e) to title VII of that Act and inserting them after section
701, as amended by subsection (b); and
(2) by redesignating those sections, as so transferred, as
sections 702 and 703, respectively.

(d) Clerical Amendments.--The National Security Act of 1947 is
further amended as follows:

[[Page 1574]]
117 STAT. 1574

(1)(A) The heading for title VII is amended to read as
follows:

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

(B) [NOTE: 50 USC 431.] The heading for section 701 is
amended to read as follows:


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


(C) The heading for section 702, [NOTE: 50 USC 432.] as
transferred and redesignated by subsection (c), is amended to
read as follows:


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


(D) The heading for section 703, [NOTE: 50 USC 432a.] as
transferred and redesignated by subsection (c), is amended by
striking the first two words.
(2) The table of contents in the first section of the
National Security Act of 1947 is amended--
(A) by striking the items relating to sections 105C
and 105D; and
(B) by striking the items relating to title VII and
sections 701 and 702 and inserting the following new
items:

``Title VII--Protection of Operational Files

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

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

(a) [NOTE: 10 USC 426 note.] Findings.--Congress makes the
following findings:
(1) As part of transformation efforts within the Department
of Defense, each of the Armed Forces is developing intelligence,
surveillance, and reconnaissance capabilities that best support
future war fighting as envisioned by the leadership of the
military department concerned.
(2) Concurrently, intelligence agencies of the Department of
Defense outside the military departments are developing
transformation roadmaps to best support the future
decisionmaking and war fighting needs of their principal
customers, but are not always closely coordinating those efforts
with the intelligence, surveillance, and reconnaissance
development efforts of the military departments.
(3) A senior official of each military department has been
designated as the integrator of intelligence, surveillance, and
reconnaissance for each of the Armed Forces in such military
department, but there is not currently a well-defined forum
through which the integrators of intelligence, surveillance, and
reconnaissance capabilities for each of the Armed Forces can
routinely interact with each other and with senior
representatives of Department of Defense intelligence agencies,
as well as with other members of the intelligence community, to
ensure unity of effort and to preclude unnecessary duplication
of effort.

[[Page 1575]]
117 STAT. 1575

(4) The current funding structure of a National Foreign
Intelligence Program (NFIP), Joint Military Intelligence Program
(JMIP), and Tactical Intelligence and Related Activities Program
(TIARA) may not be the best approach for supporting the
development of an intelligence, surveillance, and reconnaissance
structure that is integrated to meet the national security
requirements of the United States in the 21st century.
(5) The position of Under Secretary of Defense for
Intelligence was established in 2002 by Public Law 107-314 in
order to facilitate resolution of the challenges to achieving an
integrated intelligence, surveillance, and reconnaissance
structure in the Department of Defense to meet such 21st century
requirements.

(b) [NOTE: 10 USC 426 note.] Goal.--It shall be a goal of the
Department of Defense to fully integrate the intelligence, surveillance,
and reconnaissance capabilities and coordinate the developmental
activities of the military departments, intelligence agencies of the
Department of Defense, and relevant combatant commands as those
departments, agencies, and commands transform their intelligence,
surveillance, and reconnaissance systems to meet current and future
needs.

(c) ISR Integration Requirements.--(1) Subchapter I of chapter 21 of
title 10, United States Code, is amended by adding at the end the
following new section:

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

``(a) ISR Integration Council.--(1) The Under Secretary of Defense
for Intelligence shall establish an Intelligence, Surveillance, and
Reconnaissance Integration Council--
``(A) to assist the Under Secretary with respect to matters
relating to the integration of intelligence, surveillance, and
reconnaissance capabilities, and coordination of related
developmental activities, of the military departments,
intelligence agencies of the Department of Defense, and relevant
combatant commands; and
``(B) otherwise to provide a means to facilitate the
integration of such capabilities and the coordiation of such
developmental activities.

``(2) The Council shall be composed of--
``(A) the senior intelligence officers of the armed forces
and the United States Special Operations Command;
``(B) the Director of Operations of the Joint Staff; and
``(C) the directors of the intelligence agencies of the
Department of Defense.

``(3) The Under Secretary of Defense for Intelligence shall invite
the participation of the Director of Central Intelligence (or that
Director's representative) in the proceedings of the Council.
``(b) ISR Integration Roadmap.--(1) The Under Secretary of Defense
for Intelligence shall develop a comprehensive plan, to be known as the
`Defense Intelligence, Surveillance, and Reconnaissance Integration
Roadmap', to guide the development and integration of the Department of
Defense intelligence, surveillance, and reconnaissance capabilities for
the 15-year period of fiscal years 2004 through 2018.

[[Page 1576]]
117 STAT. 1576

``(2) The Under Secretary shall develop the Defense Intelligence,
Surveillance, and Reconnaissance Integration Roadmap in consultation
with the Intelligence, Surveillance, and Reconnaissance Integration
Council and the Director of Central Intelligence.''.
(2) The table of sections at the beginning of such subchapter is
amended by adding at the end the following new item:

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

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

(2) The committees of Congress referred to in paragraph (1) are as
follows:
(A) The Committee on Armed Services, the Committee on
Appropriations, and the Select Committee on Intelligence of the
Senate.
(B) The Committee on Armed Services, the Committee on
Appropriations, and the Permanent Select Committee on
Intelligence of the House of Representatives.

SEC. 924. [NOTE: 10 USC 2430 note.] MANAGEMENT OF NATIONAL SECURITY
AGENCY MODERNIZATION PROGRAM.

(a) Management of Acquisition Programs Through USD (AT&L).--The
Secretary of Defense shall direct that, effective as of the date of the
enactment of this Act, acquisitions under the National Security Agency
Modernization Program shall be directed and managed by the Under
Secretary of Defense for Acquisition, Technology, and Logistics.
(b) Applicability of Major Defense Acquisition Program
Authorities.--(1) Each project designated as a major defense

[[Page 1577]]
117 STAT. 1577

acquisition program under paragraph (2) shall be managed under the laws,
policies, and procedures that are applicable to major defense
acquisition programs (as defined in section 2430 of title 10, United
States Code).
(2) The Secretary of Defense (acting through the Under Secretary of
Defense for Acquisition, Technology, and Logistics) shall designate
those projects under the National Security Agency Modernization Program
that are to be managed as major defense acquisition programs.
(c) Milestone Decision Authority.--(1) The authority to make a
decision that a program is authorized to proceed from one milestone
stage into another (referred to as the milestone decision authority) may
only be exercised by the Under Secretary of Defense for Acquisition,
Technology, and Logistics for the following:
(A) Each project of the National Security Agency
Modernization Program that is to be managed as a major defense
acquisition program, as designated under subsection (b).
(B) Each major system under the National Security Agency
Modernization Program.

(2) [NOTE: Termination date.] The limitation in paragraph (1)
shall terminate on, and the Under Secretary may delegate the milestone
decision authority referred to in paragraph (1) to the Director of the
National Security Agency at any time after, the date that is the later
of--
(A) September 30, 2005, or
(B) the date on which the Under Secretary submits to the
appropriate committees of Congress a notification described in
paragraph (3).

(3) A notification described in this paragraph is a notification by
the Under Secretary of the Under Secretary's intention to delegate the
milestone decision authority referred to in paragraph (1) to the
Director of the National Security Agency, together with a detailed
discussion of the justification for that delegation. Such a notification
may not be submitted until--
(A) the Under Secretary has determined (after consultation
with the Under Secretary of Defense for Intelligence and the
Deputy Director of Central Intelligence for Community
Management) that the Director has implemented acquisition
management policies, procedures, and practices that are
sufficient to ensure that acquisitions by the National Security
Agency are conducted in a manner consistent with sound,
efficient acquisition practices;
(B) the Under Secretary has consulted with the Under
Secretary of Defense for Intelligence and the Deputy Director of
Central Intelligence for Community Management on the delegation
of such milestone decision authority to the Director; and
(C) the Secretary of Defense has approved the delegation of
such milestone decision authority to the Director.

(d) Projects Comprising Program.--The National Security Agency
Modernization Program consists of the following projects of the National
Security Agency:
(1) The Trailblazer project.
(2) The Groundbreaker project.
(3) Each cryptological mission management project.
(4) Each other project of that Agency that--

[[Page 1578]]
117 STAT. 1578

(A) meets either of the dollar thresholds in effect
under paragraph (2) of section 2430(a) of title 10,
United States Code; and
(B) is determined by the Under Secretary of Defense
for Acquisition, Technology, and Logistics as being a
major project that is within, or properly should be
within, the National Security Agency Modernization
Project.

(e) Definitions.--In this section:
(1) Major system.--The term ``major system'' has the meaning
given that term in section 2302(5) of title 10, United States
Code.
(2) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means the following:
(A) The Committee on Armed Services and the Select
Committee on Intelligence of the Senate.
(B) The Committee on Armed Services and the
Permanent Select Committee on Intelligence of the House
of Representatives.

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

(a) In General.--Section 802(b)(2) of the David L. Boren National
Security Education Act of 1991 (50 U.S.C. 1902(b)(2)) is amended by
striking subparagraphs (A) and (B) and inserting the following new
subparagraphs (A) and (B):
``(A) in the case of a recipient of a scholarship,
after the recipient's completion of the study for which
scholarship assistance was provided under the program,
work in a position in the Department of Defense or other
element of the intelligence community that is certified
by the Secretary as appropriate to utilize the unique
language and region expertise acquired by the recipient
pursuant to such study for a period specified by the
Secretary, which period shall include one year of
service for each year, or portion thereof, for which
such scholarship assistance was provided; or
``(B) in the case of a recipient of a fellowship,
after the recipient's completion of the study for which
the fellowship assistance was provided under the
program, work in a position described in subparagraph
(A) that is certified by the Secretary as appropriate to
utilize the unique language and region expertise
acquired by the recipient pursuant to such study for a
period specified by the Secretary, which period shall
(at the discretion of the Secretary) include not less
than one nor more than three years for each year, or
portion thereof, for which such fellowship assistance
was provided; and''.

(b) [NOTE: 50 USC 1902 note.] Applicability.--(1) The amendment
made by subsection (a) shall apply with respect to service agreements
entered into under the David L. Boren National Security Education Act of
1991 on or after the date of the enactment of this Act.

(2) The amendment made by subsection (a) shall not affect the force,
validity, or terms of any service agreement entered into under the David
L. Boren National Security Education Act of 1991 before the date of the
enactment of this Act that is in force as of that date.

[[Page 1579]]
117 STAT. 1579

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

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

SEC. 927. COMMERCIAL IMAGERY INDUSTRIAL BASE.

(a) Requirement.--Of the total amount authorized to be appropriated
for fiscal year 2004 for the acquisition, processing, and licensing of
imagery from commercial sources (including amounts authorized to be
appropriated under that title for experimentation related to such
imagery), not less than 90 percent shall be used for the following
purposes:
(1) Acquisition of space-based imagery from commercial
sources.
(2) Support for the development of next-generation
commercial imagery satellites.
(3) Support for infrastructure improvements that meet unique
requirements related to commercial imagery.

(b) Waiver.--(1) The Secretary of Defense may waive the requirement
in subsection (a) if the Secretary determines that the waiver is in the
national security interest of the United States. Any such waiver shall
be made in consultation with the Director of Central Intelligence.
(2) [NOTE: Reports.] If the Secretary makes the waiver authorized
by paragraph (1), the Secretary shall, within 30 days of issuing the
waiver, submit to the appropriate congressional committees a report that
includes the following:
(A) The Secretary's reasons for determining that the waiver
is in the national security interest of the United States.
(B) The Secretary's plan for use of the amount referred to
in subsection (a).

(c) Report on Department of Defense Implementation of President's
Commercial Remote [NOTE: Deadline.] Sensing Policy.--(1) Not later
than March 1, 2004, the Secretary of Defense shall submit to the
appropriate congressional committees a report on the actions taken, and
to be taken, by the Secretary to implement the President's policy issued
on May 13, 2003, with the title ``U.S. Commercial Remote Sensing Space
Policy''. The Secretary shall consult with the Director of Central
Intelligence in preparing the report.

(2) The report under paragraph (1) shall include an assessment of
the following matters:

[[Page 1580]]
117 STAT. 1580

(A) The sufficiency for the sustainment of a viable
commercial imagery industrial base in the United States of--
(i) the President's policy referred to in paragraph
(1);
(ii) the amount provided for the Department of
Defense for fiscal year 2004 for the acquisition of
imagery from commercial sources; and
(iii) the amounts scheduled in the future-years
defense program (as of the submission of the report) for
the acquisition of imagery from commercial sources.
(B) The extent to which the President's policy referred to
in paragraph (1) and Department of Defense programs relating to
the procurement of imagery from commercial sources are
sufficient to ensure that imagery is available to the Department
of Defense from United States commercial sources to meet the
needs of the Department of Defense in a timely manner.

(d) Appropriate Congressional Committees.--For the purposes of this
section, the term ``appropriate congressional committees'' means--
(1) the Committee on Armed Services, the Select Committee on
Intelligence, and the Committee on Appropriations of the Senate;
and
(2) the Committee on Armed Services, the Permanent Select
Committee on Intelligence, and the Committee on Appropriations
of the House of Representatives.

Subtitle D--Other Matters

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

(a) Authorized Sources of Gifts and Donations.--Subsection (a) of
section 2611 of title 10, United States Code, is amended--
(1) in paragraph (1), by striking ``foreign gifts and
donations'' and inserting ``gifts and donations from sources
described in paragraph (2)'';
(2) by redesignating paragraph (2) as paragraph (3); and
(3) by inserting after paragraph (1) the following new
paragraph (2):

``(2) The sources from which gifts and donations may be accepted
under paragraph (1) are the following:
``(A) The government of a State or a political subdivision
of a State.
``(B) The government of a foreign country.
``(C) A foundation or other charitable organization,
including a foundation or charitable organization that is
organized or operates under the laws of a foreign country.
``(D) Any source in the private sector of the United States
or a foreign country.''.

(b) Conforming Amendments.--(1) Section 2611 of such title is
further amended--
(A) by striking ``Foreign'' in the headings for subsections
(a) and (f);
(B) in subsection (c), by striking ``foreign''; and
(C) in subsection (f)--
(i) by striking ``foreign'' after ``section, a'';
and

[[Page 1581]]
117 STAT. 1581

(ii) by striking ``from a foreign'' and all that
follows through ``country.'' and inserting a period.

(2) Section 184(b)(4) of such title is amended by striking
``foreign''.
(c) Clerical Amendments.--The heading of section 2611 of such title,
and the item relating to such section in the table of sections at the
beginning of chapter 155 of such title, are each amended by striking the
third word after the colon.
(d) Cross Reference Correction.--Section 2612(a) of such title is
amended by striking ``2611(f)'' and inserting ``2166(f)(4)''.

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

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

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

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

TITLE X--GENERAL PROVISIONS

Subtitle A--Financial Matters

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

Subtitle B--Naval Vessels and Shipyards

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

[[Page 1582]]
117 STAT. 1582

Subtitle C--Counterdrug Matters

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

Subtitle D--Reports

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

Subtitle E--Codifications, Definitions, and Technical Amendments

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

Subtitle F--Other Matters

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

Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

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

[[Page 1583]]
117 STAT. 1583

(2) may not be used to provide authority for an item that
has been denied authorization by Congress.

(c) Effect on Authorization Amounts.--A transfer made from one
account to another under the authority of this section shall be deemed
to increase the amount authorized for the account to which the amount is
transferred by an amount equal to the amount transferred.
(d) Notice to Congress.--The Secretary shall promptly notify
Congress of each transfer made under subsection (a).

SEC. 1002. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED BUDGETS IN
FISCAL YEAR 2004.

(a) Fiscal Year 2004 Limitation.--The total amount contributed by
the Secretary of Defense in fiscal year 2004 for the common-funded
budgets of NATO may be any amount up to, but not in excess of, the
amount specified in subsection (b) (rather than the maximum amount that
would otherwise be applicable to those contributions under the fiscal
year 1998 baseline limitation).
(b) Total Amount.--The amount of the limitation applicable under
subsection (a) is the sum of the following:
(1) The amounts of unexpended balances, as of the end of
fiscal year 2003, of funds appropriated for fiscal years before
fiscal year 2004 for payments for those budgets.
(2) The amount specified in subsection (c)(1).
(3) The amount specified in subsection (c)(2).
(4) The total amount of the contributions authorized to be
made under section 2501.

(c) Authorized Amounts.--Amounts authorized to be appropriated by
titles II and III of this Act are available for contributions for the
common-funded budgets of NATO as follows:
(1) Of the amount provided in section 201(1), $853,000 for
the Civil Budget.
(2) Of the amount provided in section 301(1), $207,125,000
for the Military Budget.

(d) Definitions.--For purposes of this section:
(1) Common-funded budgets of nato.--The term ``common-funded
budgets of NATO'' means the Military Budget, the Security
Investment Program, and the Civil Budget of the North Atlantic
Treaty Organization (and any successor or additional account or
program of NATO).
(2) Fiscal year 1998 baseline limitation.--The term ``fiscal
year 1998 baseline limitation'' means the maximum annual amount
of Department of Defense contributions for common-funded budgets
of NATO that is set forth as the annual limitation in section
3(2)(C)(ii) of the resolution of the Senate giving the advice
and consent of the Senate to the ratification of the Protocols
to the North Atlantic Treaty of 1949 on the Accession of Poland,
Hungary, and the Czech Republic (as defined in section 4(7) of
that resolution), approved by the Senate on April 30, 1998.

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

(a) DOD and DOE Authorizations.--Amounts authorized to be
appropriated to the Department of Defense and the Department of Energy
for fiscal year 2003 in the Bob Stump National Defense Authorization Act
for Fiscal Year 2003 (Public Law 107-314) are hereby adjusted, with
respect to any such authorized amount, by

[[Page 1584]]
117 STAT. 1584

the amount by which appropriations pursuant to such authorization are
increased (by a supplemental appropriation) or decreased (by a
rescission), or both, or are increased by a transfer of funds, pursuant
to title I of Public Law 108-11.
(b) Report on Fiscal Year 2003 Transfers.--Not [NOTE: Deadline.]
later than 30 days after the end of each fiscal quarter for which
unexpended balances of funds appropriated under title I of Public Law
108-11 are available for the Department of Defense, the Secretary of
Defense shall submit to the congressional defense committees a report
stating, for each transfer of such funds during such fiscal quarter of
an amount provided for the Department of Defense through a so-called
``transfer account'', including the Iraqi Freedom Fund or any other
similar account--
(1) the amount of the transfer;
(2) the appropriation account to which the transfer was
made; and
(3) the specific purpose for which the transferred funds
were used or are to be used.

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

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

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

(a) Reestablishment of Authority.--Subsection (a) of section 2410a
of title 10, United States Code, is amended--
(1) by inserting ``(1)'' before ``The Secretary of
Defense'';
(2) by striking ``for procurement of severable services''
and inserting ``for a purpose described in paragraph (2)''; and
(3) by adding at the end the following new paragraph:

``(2) The purpose of a contract described in this paragraph is as
follows:
``(A) The procurement of severable services.
``(B) The lease of real or personal property, including the
maintenance of such property when contracted for as part of the
lease agreement.''.

(b) Clerical Amendments.--(1) The heading of such section is amended
to read as follows:

[[Page 1585]]
117 STAT. 1585

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

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

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

(c) [NOTE: 10 USC 2410a note.] Effective Date.--The amendments
made by this section shall not apply to funds appropriated for a fiscal
year before fiscal year 2004.

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

(a) Authority.--Subsection (a) of section 2642 of title 10, United
States Code, is amended--
(1) by striking ``(a) Authority'' and all that follows
through ``the Department of Defense'' the second place it
appears and inserting the following:

``(a) Authority.--The Secretary of Defense may authorize the use of
the Department of Defense reimbursement rate for military airlift
services provided by a component of the Department of Defense as
follows:
``(1) For military airlift services provided''; and
(2) by adding at the end the following new paragraph:
``(2) For military airlift services provided to the
Department of State for the transportation of armored motor
vehicles to a foreign country to meet requirements of the
Department of State for armored motor vehicles associated with
the overseas travel of the Secretary of State in that
country.''.

(b) Clerical Amendments.--(1) The heading for such section is
amended to read as follows:

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

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

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

SEC. 1007. [NOTE: 10 USC 2241 note.] LIMITATION ON PAYMENT OF
FACILITIES CHARGES ASSESSED BY DEPARTMENT OF STATE.

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

[[Page 1586]]
117 STAT. 1586

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

(a) Funds Available for Defense Modernization Account.--Section 2216
of title 10, United States Code, is amended--
(1) by striking subsection (c);
(2) by redesignating subsection (b) as subsection (c); and
(3) by inserting after subsection (a) the following new
subsection (b):

``(b) Funds Available for Account.--The Defense Modernization
Account shall consist of the following:
``(1) Amounts appropriated to the Defense Modernization
Account for the costs of commencing projects described in
subsection (d)(1), and amounts reimbursed to the Defense
Modernization Account under subsections (c)(1)(B)(iii) out of
savings derived from such projects.
``(2) Amounts transferred to the Defense Modernization
Account under subsection (c).''.

(b) Start-Up Funding.--Subsection (d) of such section is amended--
(1) by striking ``available from the Defense Modernization
Account pursuant to subsection (f) or (g)'' and inserting ``in
the Defense Modernization Account'';
(2) by redesignating paragraphs (1) and (2) as paragraphs
(2) and (3), respectively; and
(3) by inserting after ``purposes:'' the following new
paragraph (1):
``(1) For paying the costs of commencing any project that,
in accordance with criteria prescribed by the Secretary of
Defense, is undertaken by the Secretary of a military department
or the head of a Defense Agency or other element of the
Department of Defense to reduce the life cycle cost of a new or
existing system.''.

(c) Reimbursement of Account Out of Savings.--(1) Paragraph (1)(B)
of subsection (c) of such section, as redesignated by subsection (a)(2),
is amended by adding at the end the following new clause:
``(iii) Unexpired funds in appropriations accounts that are
available for procurement or operation and maintenance of a
system, if and to the extent that savings are achieved for such
accounts through reductions in life cycle costs of such system
that result from one or more projects undertaken with respect to
such systems with funds made available from the Defense
Modernization Account under subsection (b)(1).''.

(2) Paragraph (2) of such subsection is amended by inserting ``,
other than funds referred to in subparagraph (B)(iii) of such
paragraph,'' after ``Funds referred to in paragraph (1)''.
(d) Regulations.--Subsection (h) of such section is amended--
(1) by inserting ``(1)'' after ``Comptroller.--''; and
(2) by adding at the end the following new paragraph (2):

``(2) The regulations prescribed under paragraph (1) shall, at a
minimum, provide for--
``(A) the submission of proposals by the Secretaries
concerned or heads of Defense Agencies or other elements of the
Department of Defense to the Comptroller for the use of Defense

[[Page 1587]]
117 STAT. 1587

Modernization Account funds for purposes set forth in subsection
(d);
``(B) the use of a competitive process for the evaluation of
such proposals and the selection of programs, projects, and
activities to be funded out of the Defense Modernization Account
from among those proposed for such funding; and
``(C) the calculation of--
``(i) the savings to be derived from projects
described in subsection (d)(1) that are to be funded out
of the Defense Modernization Account; and
``(ii) the amounts to be reimbursed to the Defense
Modernization Account out of such savings pursuant to
subsection (c)(1)(B)(iii).''.

(e) Annual Report.--Subsection (i) of such section is amended--
(1) by striking ``Quarterly Reports.--(1)
Not [NOTE: Deadline.]  later than 15 days after the end of
each calendar quarter,'' and inserting ``Annual Report.--(1) Not
later than 15 days after the end of each fiscal year,''; and
(2) in paragraph (1), by striking ``quarter'' in
subparagraphs (A), (B), and (C), and inserting ``fiscal year''.

(f) Codification and Extension of Expiration of Authority.--(1) Such
section is further amended by adding at the end the following new
subsection:
``(k) Expiration of Authority and Account.--(1) The authority under
subsection (c) to transfer funds into the Defense Modernization Account
terminates at the close of September 30, 2006.
``(2) Three years after the termination date specified in paragraph
(1), the Defense Modernization Account shall be closed and any remaining
balance in the account shall be canceled and thereafter shall not be
available for any purpose.''.
(2) Subsection (c) of section 912 of the National Defense
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat.
410; 10 U.S.C. 2216 note) is repealed.

SEC. 1009. PROVISIONS RELATING TO DEFENSE TRAVEL CARDS.

(a) Mandatory Disbursement of Travel Allowances Directly to Travel
Card Creditors.--Section 2784a(a) of title 10, United States Code, is
amended--
(1) in paragraph (1), by striking ``The Secretary of Defense
may require'' and inserting ``The Secretary of Defense shall
require'';
(2) by redesignating paragraph (2) as paragraph (3); and
(3) by inserting after paragraph (1) the following new
paragraph (2):

``(2) The Secretary of Defense may waive the requirement for a
direct payment to a travel care issuer under paragraph (1) in any case
the Secretary determines appropriate.''.
(b) Determinations of Creditworthiness for Issuance of Defense
Travel Card.--Section 2784a of title 10, United States Code, is
amended--
(1) by redesignating subsections (d) and (e) as subsections
(f) and (g), respectively; and
(2) by inserting after subsection (c) the following new
subsection (d):

[[Page 1588]]
117 STAT. 1588

``(d) Determinations of Creditworthiness for Issuance of Defense
Travel Card.--(1) The Secretary of Defense shall evaluate the
creditworthiness of an employee of the Department of Defense or a member
of armed forces before issuing a Defense travel card to such an employee
or member. The evaluation may include an examination of the individual's
credit history in available credit records.
``(2) An individual may not be issued a Defense travel card if the
individual is found not creditworthy as a result of the evaluation
required under paragraph (1).''.
(c) Disciplinary actions and assessing penalties for misuse of
defense travel cards.--
(1) Requirement for regulations.--Section 2784a of title 10,
United States Code, is further amended by inserting after
subsection (d) (as added by subsection (b)) the following new
subsection (e):

``(e) Regulations on Disciplinary Action.--(1) The Secretary of
Defense shall prescribe regulations for making determinations regarding
the taking of disciplinary action, including assessment of penalties,
against Department of Defense personnel for improper, fraudulent, or
abusive use of Defense travel cards by such personnel.
``(2) The regulations prescribed under paragraph (1) shall--
``(A) provide for appropriate adverse personnel actions or
other punishment to be imposed in cases in which employees of
the Department of Defense violate such regulations or are
negligent or engage in misuse, abuse, or fraud with respect to a
Defense travel card, including removal in appropriate cases; and
``(B) provide that a violation of such regulations by a
person subject to chapter 47 of this title (the Uniform Code of
Military Justice) is punishable as a violation of section 892 of
this title (article 92 of the Uniform Code of Military
Justice).''.
(2) [NOTE: Deadline.] Report.--Not later than February 1,
2004, the Secretary of Defense shall submit to the Committees on
Armed Services of the Senate and the House of Representatives a
report on the regulations prescribed under section 2784a(e) of
title 10, United States Code, as added by paragraph (1). The
report shall include the following:
(A) The regulations.
(B) A discussion of the implementation of the
regulations.
(C) A discussion of any additional administrative
action, or any recommended legislation, that the
Secretary considers necessary to effectively take
disciplinary action against and penalize Department of
Defense personnel for improper, fraudulent, or abusive
use of Defense travel cards by such personnel.
(3) Defense Travel Card Defined.--In this subsection, the
term ``Defense travel card'' has the meaning given such term in
section 2784a(f)(1) of title 10, United States Code (as
redesignated by subsection (b)).

[[Page 1589]]
117 STAT. 1589

Subtitle B--Naval Vessels and Shipyards

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

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

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

(a) Environmental Remediation.--Paragraph (1) of subsection (b) of
section 7306a of title 10, United States Code, is amended--
(1) by inserting ``and Environmental Remediation of'' in the
subsection heading after ``Stripping''; and
(2) by inserting before the period at the end the following:
``and such environmental remediation of the vessel as is
required for the use of the vessel for experimental purposes''.

(b) Sale of Material and Equipment Stripped From Vessel.--Subsection
(b) of such section is further amended--
(1) by redesignating paragraph (2) as paragraph (3);
(2) by inserting after paragraph (1) the following new
paragraph (2):

``(2) Material and equipment stripped from a vessel under paragraph
(1) may be sold by the contractor or by a sales agent approved by the
Secretary.''; and
(3) in paragraph (3), as redesignated by paragraph (1), by
striking ``scrapping services'' and all that follows through the
end of such subsection and inserting ``services needed for such
stripping and for environmental remediation required for the use
of the vessel for experimental purposes. Amounts received in
excess of amounts needed for reimbursement of those costs shall
be deposited into the account from which the stripping and
environmental remediation expenses were incurred and shall be
available for stripping and environmental remediation of other
vessels to be used for experimental purposes.''.

(c) Clarification of Covered Experimental Purposes.--Such section is
further amended by adding at the end the following new subsection:
``(c) Use for Experimental Purposes Defined.--In this section, the
term `use for experimental purposes', with respect to a vessel, includes
use of the vessel in a Navy sink exercise or for target purposes.''.

[[Page 1590]]
117 STAT. 1590

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

(a) Authority To Make Transfer.--Chapter 633 of title 10, United
States Code, is amended by inserting after section 7306a the following
new section:

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

``(a) Authority To Make Transfer.--The Secretary of the Navy may
transfer, by gift or otherwise, any vessel stricken from the Naval
Vessel Register to any State, Commonwealth, or possession of the United
States, or any municipal corporation or political subdivision thereof,
for use as provided in subsection (b).
``(b) Vessel To Be Used as Artificial Reef.--An agreement for the
transfer of a vessel under subsection (a) shall require that--
``(1) the recipient use, site, construct, monitor, and
manage the vessel only as an artificial reef in accordance with
the requirements of the National Fishing Enhancement Act of 1984
(33 U.S.C. 2101 et seq.), except that the recipient may use the
artificial reef to enhance diving opportunities if that use does
not have an adverse effect on fishery resources (as that term is
defined in section 2(14) of the Magnuson-Stevens Fishery
Conservation and Management Act (16 U.S.C. 1802(14)); and
``(2) the recipient obtain, and bear all responsibility for
complying with, applicable Federal, State, interstate, and local
permits for using, siting, constructing, monitoring, and
managing the vessel as an artificial reef.

``(c) Preparation of Vessel for Use as Artificial Reef.--The
Secretary shall ensure that the preparation of a vessel transferred
under subsection (a) for use as an artificial reef is conducted in
accordance with--
``(1) the environmental best management practices developed
pursuant to section 3504(b) of the Bob Stump National Defense
Authorization Act for Fiscal Year 2003 (Public Law 107-314; 16
U.S.C. 1220 note); and
``(2) any applicable environmental laws.

``(d) Cost Sharing.--The Secretary may share with the recipient of a
vessel transferred under subsection (a) any costs associated with
transferring the vessel under that subsection, including costs of the
preparation of the vessel under subsection (c).
``(e) No Limitation on Number of Vessels Transferable to Particular
Recipient.--A State, Commonwealth, or possession of the United States,
or any municipal corporation or political subdivision thereof, may be
the recipient of more than one vessel transferred under subsection (a).
``(f) Additional Terms and Conditions.--The Secretary may require
such additional terms and conditions in connection with a transfer
authorized by subsection (a) as the Secretary considers appropriate.
``(g) Construction.--Nothing in this section shall be construed to
establish a preference for the use as artificial reefs of vessels
stricken from the Naval Vessel Register in lieu of other authorized uses
of such vessels, including the domestic scrapping of such

[[Page 1591]]
117 STAT. 1591

vessels, or other disposals of such vessels, under this chapter or other
applicable authority.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
7306a the following new item:

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

SEC. 1014. PRIORITY FOR TITLE XI ASSISTANCE.

(a) In General.--Section 1103 of the Merchant Marine Act, 1936 (46
U.S.C. App. 1273) is amended--
(1) in subsection (i) (as added by section 3544 of this Act)
by striking ``Priority''and inserting ``Priority for National
Defense Tank Vessels''; and
(2) by adding at the end the following:

``(j) Priority for Other Vessels Suitable for Service as a Naval
Auxiliary.--In guaranteeing and entering commitments to guarantee under
this section, the Secretary shall, after applying subsection (i), give
priority to a guarantee or commitment for a vessel that is otherwise
eligible for a guarantee under this section and that the Secretary of
Defense determines--
``(1) is suitable for service as a naval auxiliary in time
of war or national emergency; and
``(2) meets a shortfall in sealift capacity or
capability.''.

(b) Report.--Within 180 days after the date of the enactment of this
Act, the Secretary of Transportation and the Secretary of Defense shall
transmit a report to the Senate Committee on Armed Services, the Senate
Committee on Commerce, Science, and Transportation, and the House of
Representatives Committee on Armed Services that--
(1) sets forth the criteria to be used by the Secretary of
Defense in making, for purposes of section 1103(j) of the
Merchant Marine Act, 1936 (46 U.S.C. App. 1273(j)), as amended
by this section, the determinations described in paragraphs (1)
and (2) of that section; and
(2) describes the procedure that the Secretary of Defense
will follow--
(A) in reviewing applications for which priority
treatment is sought under section 1103(j) of that Act;
and
(B) in reporting to the Secretary of Transportation
with respect to such applications.

SEC. 1015. SUPPORT FOR TRANSFERS OF DECOMMISSIONED VESSELS AND SHIPBOARD
EQUIPMENT.

(a) In General.--Chapter 633 of title 10, United States Code, is
amended by adding at the end the following new section:

``Sec. 7316. Support for transfers of decommissioned vessels and
shipboard equipment

``(a) Authority To Provide Assistance.--The Secretary of the Navy
may provide an entity described in subsection (b) with assistance in
support of a transfer of a vessel or shipboard equipment described in
such subsection that is being executed under section 2572, 7306, 7307,
or 7545 of this title, or under any other authority.
``(b) Covered Vessels and Equipment.--The authority under this
section applies--

[[Page 1592]]
117 STAT. 1592

``(1) in the case of a decommissioned vessel that--
``(A) is owned and maintained by the Navy, is
located at a Navy facility, and is not in active use;
and
``(B) is being transferred to an entity designated
by the Secretary of the Navy or by law to receive
transfer of the vessel; and
``(2) in the case of any shipboard equipment that--
``(A) is on a vessel described in paragraph (1)(A);
and
``(B) is being transferred to an entity designated
by the Secretary of the Navy or by law to receive
transfer of the equipment.

``(c) Reimbursement.--The Secretary may require a recipient of
assistance under subsection (a) to reimburse the Navy for amounts
expended by the Navy in providing the assistance.
``(d) Deposit of Funds Received.--Funds received in a fiscal year
under subsection (c) shall be credited to the appropriation available
for such fiscal year for operation and maintenance for the office of the
Navy managing inactive ships, shall be merged with other sums in the
appropriation that are available for such office, and shall be available
for the same purposes and period as the sums with which merged.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new item:

``7316. Support for transfers of decommissioned vessels and shipboard
equipment.''.

SEC. 1016. ADVANCED SHIPBUILDING ENTERPRISE.

(a) Findings.--Congress makes the following findings:
(1) The President's budget for fiscal year 2004, as
submitted to Congress, includes $10,300,000 for the Advanced
Shipbuilding Enterprise of the National Shipbuilding Research
Program.
(2) The Advanced Shipbuilding Enterprise is an innovative
program to encourage greater efficiency among shipyards in the
defense industrial base.
(3) The leaders of the Nation's shipbuilding industry have
embraced the Advanced Shipbuilding Enterprise as a method of
exploring and collaborating on innovation in shipbuilding and
ship repair that collectively benefits all manufacturers in the
industry.

(b) Sense of the Congress.--It is the sense of the Congress that--
(1) the Congress strongly supports the innovative Advanced
Shipbuilding Enterprise of the National Shipbuilding Research
Program that has yielded new processes and techniques to reduce
the cost of building and repairing ships in the United States;
(2) the Congress is concerned that the future-years defense
program submitted to Congress for fiscal year 2004 does not
reflect any funding for the Advanced Shipbuilding Enterprise
after fiscal year 2004; and
(3) the Secretary of Defense and the Secretary of the Navy
should continue funding the Advanced Shipbuilding Enterprise at
a sustaining level through the future-years defense program to
support subsequent rounds of research that reduce the cost of
designing, building, and repairing ships.

[[Page 1593]]
117 STAT. 1593

SEC. 1017. REPORT ON NAVY PLANS FOR BASING AIRCRAFT CARRIERS.

(a) Findings.--Congress finds that--
(1) the Committee on Armed Services of the Senate, in its
report to accompany the bill S. 2514 of the 107th Congress
(Senate Report 107-151, filed May 15, 2002), at page 442 of that
report directed that the Chief of Naval Operations submit to the
congressional defense committees, not later than 180 days after
enactment of the defense authorization Act for fiscal year 2003,
a report on plans of the Navy for basing aircraft carriers
through 2015;
(2) the Bob Stump National Defense Authorization Act for
Fiscal Year 2003 (Public Law 107-314) was enacted on December 2,
2002; and
(3) as of October 24, 2003, the Chief of Naval Operations
has not submitted the report referred to in paragraph (1).

(b) Report on Aircraft Carrier Basing [NOTE: Deadline.] Plans.--
Not later than 120 days after the date of the enactment of this Act, the
Secretary of Defense shall submit to the congressional defense
committees a report on plans of the Navy for basing aircraft carriers
through 2020.

SEC. 1018. LIMITATION ON DISPOSAL OF OBSOLETE NAVAL VESSEL.

The Secretary of the Navy may not dispose of the decommissioned
destroyer ex-Forrest Sherman (DD-931) before October 1, 2004, to an
entity that is not a nonprofit organization unless the Secretary first
determines that there is no nonprofit organization that meets the
criteria for donation of that vessel under section 7306(a)(3) of title
10, United States Code.

Subtitle C--Counterdrug Matters

SEC. 1021. EXPANSION AND EXTENSION OF AUTHORITY TO PROVIDE ADDITIONAL
SUPPORT FOR COUNTER-DRUG ACTIVITIES.

(a) General Extension of Authority.--Subsection (a) of section 1033
of the National Defense Authorization Act for Fiscal Year 1998 (Public
Law 105-85; 111 Stat. 1881) is amended--
(1) by inserting ``(1)'' before ``Subject to'';
(2) by striking ``either or both'' and inserting ``any'';
and
(3) by inserting after the second sentence the following new
paragraph:

``(2) [NOTE: Expiration date.] The authority to provide support to
a government under this section expires September 30, 2006.''.

(b) Additional Governments Eligible To Receive Support.--Subsection
(b) of such section is amended by adding at the end the following new
paragraphs:
``(3) The Government of Afghanistan.
``(4) The Government of Bolivia.
``(5) The Government of Ecuador.
``(6) The Government of Pakistan.
``(7) The Government of Tajikistan.
``(8) The Government of Turkmenistan.
``(9) The Government of Uzbekistan.''.

(c) Types of Support.--Subsection (c) of such section is amended--
(1) in paragraph (2), by striking ``riverine''; and
(2) in paragraph (3), by inserting ``or upgrade'' after
``maintenance and repair''.

[[Page 1594]]
117 STAT. 1594

(d) Maximum Annual Amount of Support.--Subsection (e)(2) of such
section is amended by striking ``$20,000,000 during any of the fiscal
years 1999 through 2006'' and inserting ``$20,000,000 during any of the
fiscal years 1999 through 2003, or $40,000,000 during any of the fiscal
years 2004 through 2006''.
(e) Counter-Drug Plan.--(1) Subsection (h) of such section is
amended--
(A) in the subsection caption, by striking ``Riverine'';
(B) in the matter preceding paragraph (1)--
(i) by striking ``fiscal year 1998'' and inserting
``fiscal year 2004''; and
(ii) by striking ``riverine''; and
(C) by striking ``riverine'' each place it appears in
paragraphs (2), (7), (8), and (9).

(2) Subsection (f)(2)(A) of such section is amended by striking
``riverine''.
(f) Clerical and Conforming Amendments.--(1) Subsection (b) of such
section is further amended--
(A) in paragraph (1), by striking ``, for fiscal years 1998
through 2002''; and
(B) in paragraph (2), by striking ``, for fiscal years 1998
through 2006''.

(2) The heading for such section is amended by striking ``peru and
colombia'' and inserting ``other countries''.

SEC. 1022. [NOTE: 10 USC 371 note.] AUTHORITY FOR JOINT TASK FORCES TO
PROVIDE SUPPORT TO LAW ENFORCEMENT AGENCIES CONDUCTING
COUNTER-TERRORISM ACTIVITIES.

(a) Authority.--A joint task force of the Department of Defense that
provides support to law enforcement agencies conducting counter-drug
activities may also provide, subject to all applicable laws and
regulations, support to law enforcement agencies conducting counter-
terrorism activities.
(b) Conditions.--Any support provided under subsection (a) may only
be provided in the geographic area of responsibility of the joint task
force.

SEC. 1023. USE OF FUNDS FOR UNIFIED COUNTERDRUG AND COUNTERTERRORISM
CAMPAIGN IN COLOMBIA.

(a) Authority.--(1) In fiscal year 2004, funds available to the
Department of Defense to provide assistance to the Government of
Colombia may be used by the Secretary of Defense to support a unified
campaign by the Government of Colombia against narcotics trafficking and
against activities by organizations designated as terrorist
organizations, such as the Revolutionary Armed Forces of Colombia
(FARC), the National Liberation Army (ELN), and the United Self-Defense
Forces of Colombia (AUC).
(2) The authority to provide assistance for a campaign under this
subsection includes authority to take actions to protect human health
and welfare in emergency circumstances, including the undertaking of
rescue operations.
(b) Applicability of Certain Laws and Limitations.--The use of funds
pursuant to the authority in subsection (a) shall be subject to the
following:
(1) Sections 556, 567, and 568 of the Foreign Operations,
Export Financing, and Related Programs Appropriations Act, 2002
(Public Law 107-115; 115 Stat. 2160, 2165, and 2166).

[[Page 1595]]
117 STAT. 1595

(2) Section 8077 of the Department of Defense Appropriations
Act, 2004 (Public Law 108-87; 115 Stat. 2267).
(3) The numerical limitations on the number of United States
military personnel and United States individual civilian
contractors in section 3204(b)(1) of the Emergency Supplemental
Act, 2000 (division B of Public Law 106-246; 114 Stat. 575), as
amended by the Foreign Operations, Export Financing, and Related
Programs Appropriations Act, 2002 (Public Law 107-115; 115 Stat.
2131).

(c) Limitation on Participation of United States Personnel.--No
United States Armed Forces personnel, United States civilian employees,
or United States civilian contractor personnel employed by the United
States may participate in any combat operation in connection with
assistance using funds pursuant to the authority in subsection (a),
except for the purpose of acting in self defense or of rescuing any
United States citizen, including any United States Armed Forces
personnel, United States civilian employee, or civilian contractor
employed by the United States.
(d) Relation to Other Authority.--The authority provided by
subsection (a) is in addition to any other authority in law to provide
assistance to the Government of Colombia.

SEC. 1024. SENSE OF CONGRESS ON RECONSIDERATION OF DECISION TO TERMINATE
BORDER AND SEAPORT INSPECTION DUTIES OF NATIONAL GUARD UNDER
NATIONAL GUARD DRUG INTERDICTION AND COUNTER-DRUG MISSION.

(a) Findings.--Congress makes the following findings:
(1) The counter-drug inspection mission of the National
Guard is highly important in preventing the entry of illegal
narcotics into the United States.
(2) The expertise of members of the National Guard in
conducting vehicle inspections at United States borders and
seaports has contributed to the identification and seizure of
illegal narcotics being smuggled into the United States.
(3) The support provided by the National Guard to the United
States Customs Service and the Bureau of Border Security of the
Department of Homeland Security greatly enhances the capability
of these agencies to perform counter-terrorism surveillance and
other border protection duties.

(b) Sense of Congress.--It is the sense of Congress that the
Secretary of Defense should reconsider the decision of the Department of
Defense to terminate the border inspection and seaport inspection duties
of the National Guard as part of the drug interdiction and counter-drug
mission of the National Guard.

Subtitle D--Reports

SEC. 1031. REPEAL AND MODIFICATION OF VARIOUS REPORTING REQUIREMENTS
APPLICABLE TO THE DEPARTMENT OF DEFENSE.

(a) Title 10, United States Code.--Title 10, United States Code, is
amended as follows:
(1) Section
117(e) is amended by striking ``each month'' and
all that follows through ``subsection (d)'' and inserting ``each
quarter submit to the congressional defense committees a report
in writing containing the results of the most recent joint
readiness review under subsection (d)(1)(A)''.

[[Page 1596]]
117 STAT. 1596

(2) Section 127(d) is amended to read as follows:

``(d) Annual Report.--Not later than December 1 each year, the
Secretary of Defense shall submit to the congressional defense
committees a report on expenditures during the preceding fiscal year
under subsections (a) and (b).''.
(3) Section 127a is amended by striking subsection (d).
(4) Section 128 is amended by striking subsection (d).
(5) Section 226(a) is amended--
(A) by striking ``December 15'' and inserting
``January 15''; and
(B) by striking ``in the following year'' in
paragraph (1) and inserting ``in that year''.
(6)(A) Section 228 is amended--
(i) in subsection (a)--
(I) by striking ``Monthly'' in the subsection
heading and inserting ``Quarterly'';
(II) by striking ``monthly'' and inserting
``quarterly''; and
(III) by striking ``month'' and inserting
``fiscal-year quarter''; and
(ii) in subsection (c), by striking ``month'' each
place it appears and inserting ``quarter''.
(B)(i) The heading of such section is amended to read as
follows:

``Sec. 228. Quarterly reports on allocation of funds within operation
and maintenance budget subactivities''.

(ii) The item relating to section 228 in the table of
sections at the beginning of chapter 9 is amended to read as
follows:

``228. Quarterly reports on allocation of funds within operation and
maintenance budget subactivities.''.

(7) Section 437 is amended--
(A) by striking the second sentence of subsection
(b); and
(B) in subsection (c)--
(i) by striking ``report)--'' in the matter
preceding paragraph (1) and inserting ``report)
the following:'';
(ii) by striking ``a'' in paragraphs (1), (2),
and (3) after the paragraph designation and
inserting ``A'';
(iii) by striking the semicolon at the end of
paragraph (1) and inserting a period;
(iv) by striking ``; and'' at the end of
paragraph (2) and inserting a period; and
(v) by adding at the end the following new
paragraph:
``(4) A description of each corporation, partnership, or
other legal entity that was established.''.
(8)(A) Section 520c is amended--
(i) by striking subsection (b);
(ii) by striking ``(a) Provision of Meals and
Refreshments.--''; and
(iii) by striking the heading for such section and
inserting the following:

[[Page 1597]]
117 STAT. 1597

``Sec. 520c. Recruiting functions: provision of meals and
refreshments''.

(B) The item relating to such section in the table of
sections at the beginning of chapter 31 is amended to read as
follows:

``520c. Recruiting functions: provision of meals and refreshments.''.

(9) Section 1060 is amended by striking subsection (d).
(10)(A) Section 1130 is amended--
(i) in subsection (a), by striking ``and the other
determinations necessary to comply with subsection
(b)''; and
(ii) in subsection (b), by striking ``to the
requesting'' and all that follows and inserting ``to the
requesting Member of Congress a detailed discussion of
the rationale supporting the determination.''.
(B) The heading for such section, and the item relating to
such section in the table of sections at the beginning of
chapter 57, are each amended by striking the last two words.
(11)(A) Section 1563 is amended--
(i) in subsection (a), by striking ``and the other
determinations necessary to comply with subsection
(b)''; and
(ii) in subsection (b), by striking ``notice in
writing'' and all that follows and inserting ``a
detailed discussion of the rationale supporting the
determination.''.
(B) The heading for such section, and the item relating to
such section in the table of sections at the beginning of
chapter 80, are each amended by striking the last two words.
(12) Section 2224 is amended by striking subsection (e).
(13) Section 2255(b) is amended--
(A) by striking paragraph (2);
(B) by striking ``(1)'' after ``(b) Exception.--'';
(C) by redesignating subparagraphs (A) and (B) as
paragraphs (1) and (2), respectively; and
(D) by redesignating clauses (i), (ii), and (iii) of
paragraph (1), as redesignated by subparagraph (C), as
subparagraphs (A), (B), and (C), respectively.
(14) Section 2282 is amended by inserting ``through 2008''
after ``March 1 of each year''.
(15) Section 2323(i) is amended by striking paragraph (3).
(16) Section 2327(c)(1) is amended--
(A) in subparagraph (A), by striking ``after the
date on which such head of an agency submits to Congress
a report on the contract'' and inserting ``if in the
best interests of the Government'';
(B) in subparagraph (B), by striking ``A report
under subparagraph (A)'' and inserting ``The Secretary
shall maintain records of each contract entered into by
reason of subparagraph (A). Such records''; and
(C) by striking subparagraph (C).
(17) Section 2350a is amended by striking subsection (f).
(18) Section 2350j(e)(2) is amended by inserting before the
period the following: ``or, if earlier, the end of the 14-day
period beginning on the date on which a copy of that report is
provided in an electronic medium pursuant to section 480 of this
title''.
(19) Section 2371(h) is amended by adding at the end the
following new paragraph:

``(3) No report is required under this subsection for a fiscal year
after fiscal year 2006.''.

[[Page 1598]]
117 STAT. 1598

(20) Section 2374a(e) is amended by inserting ``during which
one or more prizes are awarded under the program under
subsection (a)'' in the first sentence after ``each fiscal
year''.
(21) Section 2410m(c) is amended--
(A) by striking ``Reporting Requirement.--Each
year'' and inserting ``Annual Report.--Not later than 60
days after the end of each fiscal year'';
(B) by inserting ``at the end of such fiscal year''
in paragraph (1) before the period;
(C) by striking ``during the year preceding the year
in which the report is submitted'' in paragraph (2) and
inserting ``under this section during that fiscal
year'';
(D) by striking ``in such preceding year'' in
paragraph (3) and inserting ``under this section during
that fiscal year''; and
(E) by striking ``in such preceding year'' in
paragraph (4) and inserting ``under this section during
that fiscal year''.
(22) Section 2457 is amended by striking subsection (d).
(23) Section 2515(d) is amended--
(A) by striking ``Annual'' in the subsection heading
and inserting ``Biennial''; and
(B) in paragraph (1)--
(i) in the first sentence, by striking ``an
annual report'' and inserting ``a biennial
report'';
(ii) in the second sentence, by striking
``each year'' and inserting ``each even-numbered
year''; and
(iii) in the third sentence, by striking
``during the fiscal year'' and inserting ``during
the two fiscal years''.
(24) Section 2521 is amended by striking subsection (e).
(25) Section 2541d is amended--
(A) by striking subsection (b); and
(B) in subsection (a), by striking ``(a)'' and all
that follows through ``The Secretary of Defense'' and
inserting ``The Secretary of Defense''.
(26) Section 2645 is amended--
(A) in subsection (d)--
(i) by striking ``to Congress'' and all that
follows through ``notification of the loss'' in
paragraph (1) and inserting ``to Congress
notification of the loss'';
(ii) by striking ``loss; and'' and inserting
``loss.''; and
(iii) by striking paragraph (2); and
(B) by striking subsection (g).
(27) Section 2662 is amended--
(A) in subsection (a)--
(i) by redesignating paragraphs (1) through
(6) as subparagraphs (A) through (F),
respectively, and by designating the sentences
following subparagraph (F), as so redesignated, as
paragraph (2);
(ii) in paragraph (2), as so designated, by
striking ``clause (1) or (2)'' and inserting
``subparagraph (A) or (B) of paragraph (1)'' and
by striking ``clause (5)'' and inserting
``subparagraph (E)'';
(iii) by inserting ``(1)'' before ``The
Secretary'';

[[Page 1599]]
117 STAT. 1599

(iv) by striking ``after the expiration of 30
days'' and all that follows through ``is
submitted'' and inserting ``the Secretary submits
a report, subject to paragraph (3),'';
(v) by striking ``$500,000'' each place it
appears and inserting ``$750,000''; and
(vi) by adding at the end the following new
paragraphs:

``(3) The authority of the Secretary of a military department to
enter into a transaction described in paragraph (1) commences only
after--
``(A) the end of the 30-day period beginning on the first
day of the month with respect to which the report containing the
facts concerning such transaction, and all other such proposed
transactions for that month, is submitted under paragraph (1);
or
``(B) the end of the 14-day period beginning on the first
day of that month when a copy of the report is provided in an
electronic medium pursuant to section 480 of this title on or
before the first day of that month.

``(4) The report for a month under this subsection may not be
submitted later than the first day of that month.'';
(B) in subsection (b), by striking ``more than'' and
all that follows through ``$500,000'' and inserting
``more than $250,000, but not more than $750,000''; and
(C) in subsection (e)--
(i) by striking ``$500,000'' and inserting
``$750,000''; and
(ii) by striking ``the expiration'' and all
that follows through the period at the end and
inserting the following: ``the end of the 30-day
period beginning on the date on which a report of
the facts concerning the proposed occupancy is
submitted to the congressional committees named in
subsection (a) or, if earlier, the end of the 14-
day period beginning on the date on which a copy
of the report is provided in an electronic medium
pursuant to section 480 of this title.''.
(28) Section 2667a(c)(2) is amended--
(A) by striking ``Not later than 45 days before''
and inserting ``Before''; and
(B) by adding at the end the following new sentence:
``The Secretary may then enter into the lease only after
the end of the 30-day period beginning on the date on
which the report is submitted or, if earlier, the end of
the 14-day period beginning on the date on which a copy
of the report is provided in an electronic medium
pursuant to section 480 of this title.''.
(29) Section 2672a is amended--
(A) in subsection (a)(1), by striking ``he or his
designee'' and inserting ``the Secretary'';
(B) in subsection (b), by striking the last
sentence; and
(C) by adding at the end the following new
subsection:

``(c) Not [NOTE: Deadline.] later than 10 days after the date on
which the Secretary of a military department determines to acquire an
interest in land under the authority of this section, the Secretary
shall submit

[[Page 1600]]
117 STAT. 1600

to the Committee on Armed Services of the Senate and the Committee on
Armed Services of the House of Representatives written notice containing
a description of the property and interest to be acquired and the
reasons for the acquisition.''.
(30) Section 2676(d) is amended by inserting before the
period at the end of the last sentence the following: ``or, if
over sooner, a period of 14 days elapses from the date on which
a copy of that notification is provided in an electronic medium
pursuant to section 480 of this title''.
(31) Section 2680 is amended by striking subsection (e).
(32) Section 2688(e) is amended to read as follows:

``(e) Quarterly Report.--Not [NOTE: Deadline.] later than 30 days
after the end of each quarter of a fiscal year, the Secretary shall
submit to the congressional defense committees a report on the
conveyances made under subsection (a) during such fiscal quarter. The
report shall include, for each such conveyance, an economic analysis
(based upon accepted life-cycle costing procedures approved by the
Secretary of Defense) demonstrating that--
``(1) the long-term economic benefit of the conveyance to
the United States exceeds the long-term economic cost of the
conveyance to the United States; and
``(2) the conveyance will reduce the long-term costs of the
United States for utility services provided by the utility
system concerned.''.
(33) Section 2696 is amended--
(A) in subsection (b)--
(i) in paragraph (1), by inserting ``and
Congress'' after ``the Secretary concerned'' the
second place it appears; and
(ii) in paragraph (2), by inserting ``and
Congress'' after ``the Secretary concerned'' the
first place it appears;
(B) by striking subsection (c); and
(C) by striking subsection (d) and inserting the
following new subsection (d):

``(d) Effect of Submission of Notice.--If the Administrator of
General Services submits notice under subsection (b)(1) that further
Federal use of a parcel of real property is requested by a Federal
agency, the Secretary concerned may not proceed with the conveyance of
the real property as provided in the provision of law authorizing or
requiring the conveyance until the end of the 180-day period beginning
on the date on which the notice is submitted to Congress.''.
(34) Section 2803(b) is amended by inserting before the
period at the end of the last sentence the following: ``or, if
earlier, the end of the seven-day period beginning on the date
on which a copy of the notification is provided in an electronic
medium pursuant to section 480 of this title''.
(35) Section 2804(b) is amended by inserting before the
period at the end of the last sentence the following: ``or, if
earlier, the end of the 14-day period beginning on the date on
which a copy of the notification is provided in an electronic
medium pursuant to section 480 of this title''.
(36) Section 2805(b)(2) is amended by inserting before the
period at the end of the last sentence the following: ``or, if
earlier, the end of the 14-day period beginning on the date

[[Page 1601]]
117 STAT. 1601

on which a copy of the notification is provided in an electronic
medium pursuant to section 480 of this title''.
(37) Section 2807 is amended--
(A) in subsection (b)--
(i) by striking ``$500,000'' and inserting
``$1,000,000'';
(ii) by striking ``not less than 21 days'';
and
(iii) by adding at the end the following new
sentence: ``The Secretary may then obligate funds
for such services only after the end of the 21-day
period beginning on the date on which the
notification is received by the committees or, if
earlier, the end of the 14-day period beginning on
the date on which a copy of the report is provided
in an electronic medium pursuant to section 480 of
this title.''; and
(B) in subsection (c)(2), by inserting before the
period at the end the following: ``or, if over sooner, a
period of 14 days has elapsed from the date on which a
copy of the report is provided in an electronic medium
pursuant to section 480 of this title''.
(38) Section 2809(f)(2) is amended--
(A) by striking ``calendar''; and
(B) by inserting before the period at the end the
following: ``or, if over sooner, a period of 14 days has
expired following the date on which a copy of the
justification and economic analysis are provided in an
electronic medium pursuant to section 480 of this
title''.
(39) Section 2812(c)(1)(B) is amended by inserting before
the period at the end the following: ``or, if over sooner, a
period of 14 days has expired following the date on which a copy
of the justification and economic analysis are provided in an
electronic medium pursuant to section 480 of this title''.
(40) Section 2813(c) is amended--
(A) by striking ``the end of the 30-day period
beginning on the date''; and
(B) by adding at the end the following new sentence:
``After the notification is transmitted, the Secretary
may then enter into the contract only after the end of
the 30-day period beginning on the date on which the
notification is received by the committees or, if
earlier, the end of the 21-day period beginning on the
date on which a copy of the report is provided in an
electronic medium pursuant to section 480 of this
title.''.
(41) Section 2825 is amended--
(A) in subsection (b)(1)--
(i) by striking ``(i)'' in the last sentence;
and
(ii) by striking ``, and (ii)'' and all that
follows and inserting a period and the following
new sentence: ``If the Secretary concerned makes a
determination under the preceding sentence with
respect to an improvement, the waiver under that
sentence with respect to that improvement may take
effect only after the Secretary transmits a notice
of the proposed waiver, together with an economic
analysis demonstrating that the improvement will
be cost effective, to the appropriate committees
of Congress and a period of 21 days has elapsed
after the date on which the

[[Page 1602]]
117 STAT. 1602

notification is received by those committees or,
if over sooner, a period of 14 days has elapsed
after the date on which a copy of the notice is
provided in an electronic medium pursuant to
section 480 of this title.''; and
(B) in subsection (c)(1)(D), by inserting before the
period at the end the following: ``or, if over sooner, a
period of 14 days elapses after the date on which a copy
of the notice is provided in an electronic medium
pursuant to section 480 of this title''.
(42) Section 2827(b)(2) is amended by inserting before the
period at the end the following: ``or, if over sooner, a period
of 14 days has elapsed after the date on which a copy of the
notification is provided in an electronic medium pursuant to
section 480 of this title''.
(43) Section 2836(f)(2) is amended--
(A) by striking ``21 calendar days'' and inserting
``21 days''; and
(B) by inserting before the period at the end the
following: ``or, if over sooner, a period of 14 days has
expired following the date on which a copy of the
economic analysis is provided in an electronic medium
pursuant to section 480 of this title''.
(44) Section 2837(c)(2) is amended by inserting before the
period at the end of the last sentence the following: ``or, if
earlier, the end of the 14-day period beginning on the date on
which a copy of the report is provided in an electronic medium
pursuant to section 480 of this title''.
(45) Section 2854(b) is amended by inserting before the
period at the end of the last sentence the following: ``or, if
earlier, the end of the seven-day period beginning on the date
on which a copy of the notification is provided in an electronic
medium pursuant to section 480 of this title''.
(46) Section 2854a(c)(2) is amended--
(A) by striking ``calendar''; and
(B) by inserting before the period at the end the
following: ``or, if over sooner, a period of 14 days has
elapsed after the date on which a copy of the
justification is provided in an electronic medium
pursuant to section 480 of this title''.
(47) Section 2865(e)(2) is amended by inserting before the
period at the end of the last sentence the following: ``or, if
earlier, the end of the 14-day period beginning on the date on
which a copy of the notification is provided in an electronic
medium pursuant to section 480 of this title''.
(48) Section 2866(c)(2) is amended by inserting before the
period at the end of the last sentence the following: ``or, if
earlier, the end of the 14-day period beginning on the date on
which a copy of the notification is provided in an electronic
medium pursuant to section 480 of this title''.
(49) Section 2867(c) is amended by inserting before the
period at the end of the last sentence the following: ``or, if
earlier, the end of the 14-day period beginning on the date on
which a copy of the notification is provided in an electronic
medium pursuant to section 480 of this title''.
(50) Section 2875(e) is amended by inserting before the
period at the end the following: ``or, if earlier, the end of

[[Page 1603]]
117 STAT. 1603

the 14-day period beginning on the date on which a copy of the
notice and justification is provided in an electronic medium
pursuant to section 480 of this title''.
(51) Section 2883(f) is amended by inserting before the
period at the end the following: ``or, if earlier, the end of
the 14-day period beginning on the date on which a copy of the
notice and justification is provided in an electronic medium
pursuant to section 480 of this title''.
(52) Section 2902(g) is amended--
(A) by striking paragraph (2); and
(B) by striking ``(1)'' after ``(g)''.
(53) Section 4342(h) is amended by striking ``Secretary of
the Army'' and inserting ``Superintendent''.
(54) Section 4357(c) is amended by inserting before the
period at the end the following: ``or, if earlier, the
expiration of 14 days following the date on which a copy of the
report is provided in an electronic medium pursuant to section
480 of this title''.
(55) Section 6954(f) is amended by striking ``Secretary of
the Navy'' and inserting ``Superintendent of the Naval
Academy''.
(56) Section 6975(c) is amended by inserting before the
period at the end the following: ``or, if earlier, the
expiration of 14 days following the date on which a copy of the
report is provided in an electronic medium pursuant to section
480 of this title''.
(57) Section 7049(c) is amended--
(A) by striking ``Certification'' in the subsection
heading and inserting ``Determination''; and
(B) by striking ``, and certifies to'' and all that
follows through ``House of Representatives,''.
(58) Section 9342(h) is amended by striking ``Secretary of
the Air Force'' and inserting ``Superintendent''.
(59) Section 9356(c) is amended by inserting before the
period at the end the following: ``or, if earlier, the
expiration of 14 days following the date on which a copy of the
report is provided in an electronic medium pursuant to section
480 of this title''.
(60) Section 9514 is amended--
(A) in subsection (c)--
(i) by striking ``to Congress'' and all that
follows through ``notification of the loss'' in
paragraph (1) and inserting ``to Congress
notification of the loss'';
(ii) by striking ``loss; and'' and inserting
``loss.''; and
(iii) by striking paragraph (2); and
(B) by striking subsection (f).
(61) Section 12302 is amended by striking subsection (d).

(b) National Defense Authorization Act for Fiscal Year 1991.--
Section 2921(g) of the National Defense Authorization Act for Fiscal
Year 1991 (Public Law 101-510; 10 U.S.C. 2687 note) is amended--
(1) in paragraph (1), by striking ``Not less than 30 days
before'' and inserting ``Before'';
(2) in paragraph (2), by striking ``Not less than 30 days
before'' and inserting ``Before''; and
(3) by adding at the end the following new paragraph:

[[Page 1604]]
117 STAT. 1604

``(3) When the Secretary submits a notification of a proposed
agreement under paragraph (1) or (2), the Secretary may then enter into
the agreement described in the notification only after the end of the
30-day period beginning on the date on which the notification is
submitted or, if earlier, the end of the 14-day period beginning on the
date on which a copy of the notification is provided in an electronic
medium pursuant to section 480 of title 10, United States Code.''.
(c) National Defense Authorization Act for Fiscal Years 1992 and
1993.--The National Defense Authorization Act for Fiscal Years 1992 and
1993 (Public Law 102-190) is amended as follows:
(1) Section 734 (10 U.S.C. 1074 note) is amended by striking
subsection (c).
(2) Section 2868(a) (10 U.S.C. 2802 note) is amended by
striking ``The Secretary of Defense'' and all that follows
through ``is to be authorized'' and [NOTE: Deadline.]
inserting ``Not later than 30 days after the date on which a
decision is made selecting the site or sites for the permanent
basing of a new weapon system, the Secretary of Defense shall
submit to Congress''.

(d) National Defense Authorization Act for Fiscal Year 1993.--The
National Defense Authorization Act for Fiscal Year 1993 (Public Law 102-
484) is amended as follows:
(1) Section 324 (10 U.S.C. 2701 note) is amended--
(A) by striking ``(a) Sense of Congress.--''; and
(B) by striking subsection (b).
(2) Section 1082(b)(1) (10 U.S.C. 113 note) is amended by
striking ``the Secretary of Defense--'' and all that follows and
inserting ``the Secretary of Defense determines that it is in
the national security interests of the United States for the
military departments to do so.''.

(e) National Defense Authorization Act for Fiscal Year 1995.--
Section 721 of the National Defense Authorization Act for Fiscal Year
1995 (Public Law 103-337; 10 U.S.C. 1074 note) is amended by striking
subsection (h).
(f) National Defense Authorization Act for Fiscal Year 1997.--The
National Defense Authorization Act for Fiscal Year 1997 (Public Law 104-
201) is amended as follows:
(1) Section 324 (10 U.S.C. 2706 note) is amended by striking
subsection (c).
(2) Section 1065(b) (10 U.S.C. 113 note) is amended--
(A) by striking ``(1)'' before ``Notwithstanding'';
and
(B) by striking paragraph (2).

(g) Strom Thurmond National Defense Authorization Act for Fiscal
Year 1999.--The Strom Thurmond National Defense Authorization Act for
Fiscal Year 1999 (Public Law 105-261) is amended as follows:
(1) Section 745(e) (10 U.S.C. 1071 note) is amended--
(A) by striking ``(1)'' before ``The Secretary of
Defense''; and
(B) by striking paragraph (2).
(2) Section 1223 (22 U.S.C. 1928 note) is repealed.

(h) National Defense Authorization Act for Fiscal Year 2000.--The
National Defense Authorization Act for Fiscal Year 2000 (Public Law 106-
65) is amended as follows:
(1) Section 212 (10 U.S.C. 2501 note) is amended by striking
subsection (c).

[[Page 1605]]
117 STAT. 1605

(2) Section 724 (10 U.S.C. 1092 note) is amended by striking
subsection (e).
(3) Section 1039 (10 U.S.C. 113 note) is amended by striking
subsection (b).

(i) Military Construction Appropriations Act, 2001.--Section 125 of
the Military Construction Appropriations Act, 2001 (division A of Public
Law 106-246; 114 Stat. 517), is repealed.
(j) Department of Defense Appropriations Act, 2002.--Section 8009 of
the Department of Defense Appropriations Act, 2002 (division A of Public
Law 107-
117; 115 Stat. 2249; 10 U.S.C. 401 note), is amended by striking
``, and these obligations shall be reported to the Congress''.

SEC. 1032. [NOTE: 10 USC 113 note.] PLAN FOR PROMPT GLOBAL STRIKE
CAPABILITY.

(a) Integrated Plan for Prompt Global Strike Capability.--
The [NOTE: Establishment.]  Secretary of Defense shall establish an
integrated plan for developing, deploying, and sustaining a prompt
global strike capability in the Armed Forces. The Secretary shall update
the plan annually.

(b) Annual Reports.--(1) Not later than April 1 of each of 2004,
2005, and 2006, the Secretary shall submit to the congressional defense
committees a report on the plan established under subsection (a).
(2) Each report under paragraph (1) shall include the following:
(A) A description and assessment of the targets against
which long-range strike assets might be directed and the
conditions under which those assets might be used.
(B) The role of, and plans for ensuring, sustainment and
modernization of current long-range strike assets, including
bombers, intercontinental ballistic missiles, and submarine-
launched ballistic missiles.
(C) A description of the capabilities desired for advanced
long-range strike assets and plans to achieve those
capabilities.
(D) A description of the capabilities desired for advanced
conventional munitions and the plans to achieve those
capabilities.
(E) An assessment of advanced nuclear concepts that could
contribute to the prompt global strike mission.
(F) An assessment of the command, control, and
communications capabilities necessary to support prompt global
strike capabilities.
(G) An assessment of intelligence, surveillance, and
reconnaissance capabilities necessary to support prompt global
strike capabilities.
(H) A description of how prompt global strike capabilities
are to be integrated with theater strike capabilities.
(I) An estimated schedule for achieving the desired prompt
global strike capabilities.
(J) The estimated cost of achieving the desired prompt
global strike capabilities.
(K) A description of ongoing and future studies necessary
for updating the plan appropriately.

SEC. 1033. [NOTE: 22 USC 5959 note.] ANNUAL REPORT CONCERNING
DISMANTLING OF STRATEGIC NUCLEAR WARHEADS.

(a) Annual Report.--Concurrent with the submission of the
President's budget request to Congress each year, the Director of
Central Intelligence shall submit to the committees specified

[[Page 1606]]
117 STAT. 1606

in subsection (e) a report concerning dismantlement of Russian strategic
nuclear warheads under the Moscow Treaty. Each such report shall discuss
nuclear weapons dismantled by Russia during the prior fiscal year and
the Director's projections for nuclear weapons to be dismantled by
Russia during the current fiscal year and the fiscal year covered by the
budget.
(b) Classification.--The annual report under this section shall be
transmitted in an unclassified form when possible and classified form as
necessary.
(c) Termination of Report Requirement.--The requirement to submit an
annual report under this section terminates when the Moscow Treaty is no
longer in effect.
(d) Moscow Treaty Defined.--For purposes of this section, the term
``Moscow Treaty'' means the Treaty Between the United States of America
and the Russian Federation on Strategic Offensive Reductions, done at
Moscow on May 24, 2002.
(e) Committees Specified.--The committees to which annual reports
are to be submitted under this section are the following:
(1) The Committee on Armed Services, the Select Committee on
Intelligence, and the Committee on Foreign Relations of the
Senate.
(2) The Committee on Armed Services, the Permanent Select
Committee on Intelligence, and the Committee on International
Relations of the House of Representatives.

SEC. 1034. REPORT ON USE OF UNMANNED AERIAL VEHICLES FOR SUPPORT OF
HOMELAND SECURITY MISSIONS.

(a) Requirement for [NOTE: Deadline.]  Report.--Not later than
April 1, 2004, the President shall submit to Congress a report on the
potential uses of unmanned aerial vehicles for support of the
performance of homeland security missions.

(b) Content.--The report shall, at a minimum, include the following
matters:
(1) An assessment of the potential for using unmanned aerial
vehicles for monitoring activities in remote areas along the
northern and southern borders of the United States.
(2) An assessment of the potential for using long-endurance,
land-based unmanned aerial vehicles for supporting the Coast
Guard in the performance of its--
(A) homeland security missions;
(B) drug interdiction missions; and
(C) other maritime missions along the approximately
95,000 miles of inland waterways in the United States.
(3) An assessment of the potential for using unmanned aerial
vehicles for monitoring the safety and integrity of critical
infrastructure within the territory of the United States,
including the following:
(A) Oil and gas pipelines.
(B) Long-distance power transmission lines.
(C) Hydroelectric and nuclear power plants.
(D) Dams and drinking water utilities.
(4) An assessment of the potential for using unmanned aerial
vehicles for monitoring the transportation of hazardous cargo.
(5) A discussion of the safety issues involved in--
(A) the use of unmanned aerial vehicles by agencies
other than the Department of Defense; and

[[Page 1607]]
117 STAT. 1607

(B) the operation of unmanned aerial vehicles over
populated areas of the United States.
(6) A discussion of--
(A) the effects on privacy and civil liberties that
could result from the monitoring uses of unmanned aerial
vehicles operated over the territory of the United
States; and
(B) any restrictions on the domestic use of unmanned
aerial vehicles that should be imposed, or any other
actions that should be taken, to prevent any adverse
effect of such a use of unmanned aerial vehicles on
privacy or civil liberties.
(7) A discussion of what, if any, legislation and
organizational changes may be necessary to accommodate the use
of unmanned aerial vehicles of the Department of Defense in
support of the performance of homeland security missions,
including any amendment of section 1385 of title 18, United
States Code (popularly referred to as the ``Posse Comitatus
Act'').
(8) An evaluation of the capabilities of manufacturers of
unmanned aerial vehicles to produce such vehicles at higher
rates if necessary to meet any increased requirements for
homeland security and homeland defense missions.

(c) Referral to Committees.--The report under subsection (a) shall--
(1) upon receipt in the Senate, be referred to the Committee
on Armed Services of the Senate and other committees, as
appropriate; and
(2) upon receipt in the House of Representatives, be
referred to the Committee on Armed Services of the House of
Representatives and other committees, as appropriate.

Subtitle E--Codifications, Definitions, and Technical Amendments

SEC. 1041. CODIFICATION AND REVISION OF DEFENSE COUNTERINTELLIGENCE
POLYGRAPH PROGRAM AUTHORITY.

(a) Codification.--(1) Chapter 80 of title 10, United States Code,
is amended by inserting after section 1564 the following new section:

``Sec. 1564a. Counterintelligence polygraph program

``(a) Authority for Program.--The Secretary of Defense may carry out
a program for the administration of counterintelligence polygraph
examinations to persons described in subsection (b). The program shall
be based on Department of Defense Directive 5210.48, dated December 24,
1984.
``(b) Persons Covered.--Except as provided in subsection (c), the
following persons whose duties involve access to information that has
been classified at the level of top secret or designated as being within
a special access program under section 4.4(a) of Executive Order 12958
(or a successor Executive order) are subject to this section:
``(1) Military and civilian personnel of the Department of
Defense.
``(2) Personnel of defense contractors.

[[Page 1608]]
117 STAT. 1608

``(3) A person assigned or detailed to the Department of
Defense.
``(4) An applicant for a position in the Department of
Defense.

``(c) Exceptions From Coverage for Certain Intelligence Agencies and
Functions.--This section does not apply to the following persons:
``(1) A person assigned or detailed to the Central
Intelligence Agency or to an expert or consultant under a
contract with the Central Intelligence Agency.
``(2) A person who is--
``(A) employed by or assigned or detailed to the
National Security Agency;
``(B) an expert or consultant under contract to the
National Security Agency;
``(C) an employee of a contractor of the National
Security Agency; or
``(D) a person applying for a position in the
National Security Agency.
``(3) A person assigned to a space where sensitive
cryptographic information is produced, processed, or stored.
``(4) A person employed by, or assigned or detailed to, an
office within the Department of Defense for the collection of
specialized national foreign intelligence through reconnaissance
programs or a contractor of such an office.

``(d) Oversight.--(1) The Secretary shall establish a process to
monitor responsible and effective application of polygraph examinations
within the Department of Defense.
``(2) The Secretary shall make information on the use of polygraphs
within the Department of Defense available to the congressional defense
committees.
``(e) Polygraph Research Program.--The Secretary shall carry out a
continuing research program to support the polygraph examination
activities of the Department of Defense. The program shall include--
``(1) an on-going evaluation of the validity of polygraph
techniques used by the Department;
``(2) research on polygraph countermeasures and anti-
countermeasures; and
``(3) developmental research on polygraph techniques,
instrumentation, and analytic methods.''.

(2) The table of sections at the beginning of such chapter is
amended by inserting after the item relating to section 1564 the
following new item:

``1564a. Counterintelligence polygraph program.''.

(b) Conforming Repeal.--Section 1121 of the National Defense
Authorization Act for Fiscal Years 1988 and 1989 (10 U.S.C. 113 note),
is repealed.

SEC. 1042. GENERAL DEFINITIONS APPLICABLE TO FACILITIES AND OPERATIONS
OF DEPARTMENT OF DEFENSE.

(a) General Definitions Applicable to Facilities and Operations.--
Section 101 of title 10, United States Code, is amended--
(1) by redesignating subsections (e) and (f) as subsections
(f) and (g), respectively; and

[[Page 1609]]
117 STAT. 1609

(2) by inserting after subsection (d) the following new
subsection (e):

``(e) Facilities and Operations.--The following definitions relating
to facilities and operations apply in this title:
``(1) Range.--The term `range', when used in a geographic
sense, means a designated land or water area that is set aside,
managed, and used for range activities of the Department of
Defense. Such term includes the following:
``(A) Firing lines and positions, maneuver areas,
firing lanes, test pads, detonation pads, impact areas,
electronic scoring sites, buffer zones with restricted
access, and exclusionary areas.
``(B) Airspace areas designated for military use in
accordance with regulations and procedures prescribed by
the Administrator of the Federal Aviation
Administration.
``(2) Range activities.--The term `range activities' means--
``(A) research, development, testing, and evaluation
of military munitions, other ordnance, and weapons
systems; and
``(B) the training of members of the armed forces in
the use and handling of military munitions, other
ordnance, and weapons systems.
``(3) Operational range.--The term `operational range' means
a range that is under the jurisdiction, custody, or control of
the Secretary of Defense and--
``(A) that is used for range activities, or
``(B) although not currently being used for range
activities, that is still considered by the Secretary to
be a range and has not been put to a new use that is
incompatible with range activities.
``(4) Military munitions.--(A) The term `military munitions'
means all ammunition products and components produced for or
used by the armed forces for national defense and security,
including ammunition products or components under the control of
the Department of Defense, the Coast Guard, the Department of
Energy, and the National Guard.
``(B) Such term includes the following:
``(i) Confined gaseous, liquid, and solid
propellants.
``(ii) Explosives, pyrotechnics, chemical and riot
control agents, smokes, and incendiaries, including bulk
explosives, and chemical warfare agents.
``(iii) Chemical munitions, rockets, guided and
ballistic missiles, bombs, warheads, mortar rounds,
artillery ammunition, small arms ammunition, grenades,
mines, torpedoes, depth charges, cluster munitions and
dispensers, and demolition charges.
``(iv) Devices and components of any item specified
in clauses (i) through (iii).
``(C) Such term does not include the following:
``(i) Wholly inert items.
``(ii) Improvised explosive devices.
``(iii) Nuclear weapons, nuclear devices, and
nuclear components, other than nonnuclear components of
nuclear devices that are managed under the nuclear
weapons program of the Department of Energy after all
required

[[Page 1610]]
117 STAT. 1610

sanitization operations under the Atomic Energy Act of
1954 (42 U.S.C. 2011 et seq.) have been completed.
``(5) Unexploded ordnance.--The term `unexploded ordnance'
means military munitions that--
``(A) have been primed, fused, armed, or otherwise
prepared for action;
``(B) have been fired, dropped, launched, projected,
or placed in such a manner as to constitute a hazard to
operations, installations, personnel, or material; and
``(C) remain unexploded, whether by malfunction,
design, or any other cause.''.

(b) References to Military Munitions, Etc.--Section 2710(e) of such
title is amended--
(1) by striking paragraphs (3), (5), and (9); and
(2) by redesignating paragraphs (4), (6), (7), (8), and (10)
as paragraphs (3), (4), (5), (6), and (7), respectively.

SEC. 1043. ADDITIONAL DEFINITIONS FOR PURPOSES OF TITLE 10, UNITED
STATES CODE.

(a) General Definitions.--Section 101(a) of title 10, United States
Code, is amended by adding at the end the following new paragraphs:
``(16) The term `congressional defense committees' means--
``(A) the Committee on Armed Services and the
Committee on Appropriations of the Senate; and
``(B) the Committee on Armed Services and the
Committee on Appropriations of the House of
Representatives.
``(17) The term `base closure law' means the following:
``(A) Section 2687 of this title.
``(B) The Defense Base Closure and Realignment Act
of 1990 (part A of title XXIX of Public Law 101-510; 10
U.S.C. 2687 note).
``(C) Title II of the Defense Authorization
Amendments and Base Closure and Realignment Act (Public
Law 100-526; 10 U.S.C. 2687 note).''.

(b) References to Congressional Defense Committees.--Title 10,
United States Code, is further amended as follows:
(1) Section 135(e) is amended--
(A) by striking ``(1)'';
(B) by striking ``each congressional committee
specified in paragraph (2)'' and inserting ``each of the
congressional defense committees''; and
(C) by striking paragraph (2).
(2) Section 153(c) is amended--
(A) in paragraph (1), by striking ``committees of
Congress named in paragraph (2)'' and inserting
``congressional defense committees'';
(B) by striking paragraph (2); and
(C) by designating the second sentence of paragraph
(1) as paragraph (2) and in that paragraph (as so
designated) by striking ``The report'' and inserting
``Each report under paragraph (1)''.
(3) Section 181(d)(2) is amended--
(A) by striking ``subsection:'' and all that follows
through `` `oversight'' and inserting ``subsection, the
term `oversight''; and
(B) by striking subparagraph (B).

[[Page 1611]]
117 STAT. 1611

(4) Section 224 is amended by striking subsection (f).
(5) Section 228(e) is amended--
(A) by striking ``Definitions'' and all that follows
through ``(1) The term'' and inserting ``O&M Budget
Activity Defined.--In this section, the term''; and
(B) by striking paragraph (2).
(6) Section 229 is amended by striking subsection (f).
(7) Section 1107(f)(4) is amended by striking subparagraph
(C).
(8) Section 2216(j) is amended by striking paragraph (3).
(9) Section 2218(l) is amended--
(A) by striking paragraph (4); and
(B) by redesignating paragraph (5) as paragraph (4).
(10) Section 2306b(l) is amended--
(A) by striking paragraph (9); and
(B) by redesignating paragraph (10) as paragraph
(9).
(11) Section 2308(e)(2) is amended--
(A) by striking subparagraph (A); and
(B) by redesignating subparagraphs (B) and (C) as
subparagraphs (A) and (B), respectively.
(12) Section 2350j is amended--
(A) in subsection (e), by striking ``congressional
committees specified in subsection (g)'' in paragraphs
(1) and (3) and inserting ``congressional defense
committees''; and
(B) by striking subsection (g).
(13) Section 2366(e) is amended--
(A) by striking paragraph (7); and
(B) by redesignating paragraphs (8) and (9) as
paragraphs (7) and (8), respectively.
(14) Section 2399(h) is amended--
(A) by striking ``Definitions.--'' and all that
follows through ``(1) The term'' and inserting
``Operational Test and Evaluation Defined.--In this
section, the term'';
(B) by striking paragraph (2);
(C) by redesignating subparagraphs (A), (B), and (C)
as paragraphs (1), (2), and (3), respectively; and
(D) by realigning those paragraphs (as so
redesignated) so as to be indented two ems from the left
margin.
(15) Section 2667(h) is amended by striking paragraph (1).
(16) Section 2801(c)(4) is amended by striking ``the
Committee on'' the first place it appears and all that follows
through ``House of Representatives'' and inserting ``the
congressional defense committees''.

(c) References to Base Closure Laws.--Title 10, United States Code,
is further amended as follows:
(1) Section 2306c(h) is amended by striking ``Additional''
and all that follows through ``(2) The term'' and inserting
``Military Installation Defined.--In this section, the term''.
(2) Section 2490a(f) is amended--
(A) by striking ``Definitions.--'' and all that
follows through ``(1) The term'' and inserting
``Nonappropriated Fund Instrumentality Defined.--In this
section, the term''; and
(B) by striking paragraph (2).

[[Page 1612]]
117 STAT. 1612

(3) Section 2667(h), as amended by subsection (b)(15), is
further amended by striking ``section:'' and all that follows
through ``(3) The term'' and inserting ``section, the term''.
(4) Section 2696(e) is amended--
(A) by striking paragraphs (1), (2), (3), and (4)
and inserting the following:
``(1) A base closure law.''; and
(B) by redesignating paragraphs (5) and (6) as
paragraphs (2) and (3), respectively.
(5) Section 2705 is amended by striking subsection (h).
(6) Section 2871 is amended by striking paragraph (2).

SEC. 1044. INCLUSION OF ANNUAL MILITARY CONSTRUCTION AUTHORIZATION
REQUEST IN ANNUAL DEFENSE AUTHORIZATION REQUEST.

(a) Inclusion of Military Construction Request.--Section 113a(b) of
title 10, United States Code, is amended--
(1) by redesignating paragraph (3) as paragraph (4); and
(2) by inserting after paragraph (2) the following new
paragraph (3):
``(3) Authority to carry out military construction projects,
as required by section 2802 of this title.''.

(b) Repeal of Separate Transmission of Request.--(1) Section 2859 of
such title is repealed.
(2) The table of sections at the beginning of subchapter III of
chapter 169 of such title is amended by striking the item relating to
section 2859.

SEC. 1045. TECHNICAL AND CLERICAL AMENDMENTS.

(a) Title 10, United States Code.--Title 10, United States Code, is
amended as follows:
(1) The tables of chapters at the beginning of subtitle A,
and at the beginning of part IV of subtitle A, are amended by
striking ``2701'' in the item relating to chapter 160 and
inserting ``2700''.
(2) Section 101(a)(9)(D) is amended by striking
``Transportation'' and inserting ``Homeland Security''.
(3) Section 1115(c)(1)(B) is amended by striking ``and other
than members'' and inserting ``(other than members''.
(4) Section 2002(a)(2) is amended by striking ``Foreign
Service Institute'' and inserting ``George P. Schultz National
Foreign Affairs Training Center''.
(5)(A) Section 2248 is repealed.
(B) The table of sections at the beginning of subchapter I
of chapter 134 is amended by striking the item relating to
section 2248.
(6) Section 2432(h)(1) is amended by inserting ``program''
in the first sentence after ``for such''.
(7) Section 7305(d) is amended by inserting ``such'' before
``title III'' the second place it appears.

(b) Title 37, United States Code.--Title 37, United States Code, is
amended as follows:
(1) Section 323(a) is amended by striking ``1 year'' in
paragraphs (1) and (2) and inserting ``one year''.
(2) Section 402 is amended--
(A) in subsection (b)--
(i) by striking paragraph (1);

[[Page 1613]]
117 STAT. 1613

(ii) by redesignating paragraphs (2), (3), and
(4) as paragraphs (1), (2), and (3), respectively;
(iii) in paragraph (1) (as so redesignated),
by striking ``On and after January 1, 2002, the''
and inserting ``The''; and
(iv) in paragraph (3) (as so redesignated), by
striking ``paragraph (2)'' and inserting
``paragraph (1)''; and
(B) in subsection (d), by striking ``subsection
(b)(2)'' and inserting ``subsection (b)(1)''.

(c) Floyd D. Spence National Defense Authorization Act for Fiscal
Year 2001.--The Floyd D. Spence National Defense Authorization Act for
Fiscal Year 2001 (as enacted into law by Public Law 106-398) is amended
as follows:
(1) Section 814(g)(1) is amended by striking ``the Clinger-
Cohen Act of 1996 (divisions D and E of Public Law 104-106)''
and inserting ``subtitle III of title 40, United States Code''.
(2) Section 1308(c) (22 U.S.C. 5959) is amended--
(A) by redesignating paragraph (7) as paragraph (8);
and
(B) by redesignating the second paragraph (6) as
paragraph (7).

(d) Strom Thurmond National Defense Authorization Act for Fiscal
Year 1999.--Section 819(a) of the Strom Thurmond National Defense
Authorization Act for Fiscal Year 1999 (Public Law 105-261; 112 Stat.
2089) is amended by striking ``section 201(c) of the Federal Property
and Administrative Services Act of 1949 (40 U.S.C. 481(c)),'' and
inserting ``section 503 of title 40, United States Code,''.
(e) National Defense Authorization Act for Fiscal Year 1997.--
Section 1084(e) of the National Defense Authorization Act for Fiscal
Year 1997 [NOTE: 22 USC 1928.]  (Public Law 104-201; 110 Stat. 2675)
is amended by striking ``98-515'' and inserting ``98-525''. The
amendment made by the preceding sentence shall take effect as if
included in Public Law 104-201.

(f) Federal Acquisition Streamlining Act of 1994.--Subsection (d) of
section 1004 of the Federal Acquisition Streamlining Act of 1994 (Public
Law 103-355; 108 Stat. 3253) [NOTE: 10 USC 2304a note.]  is amended by
striking ``under--'' and all that follows through the end of paragraph
(2) and inserting ``under chapter 11 of title 40, United States Code.''.

(g) Armed Forces Retirement Home Act of 1991.--Section 1520(b)(1)(C)
of the Armed Forces Retirement Home Act of 1991 (24 U.S.C. 420(b)(1)(C))
is amended by inserting ``Armed Forces'' before ``Retirement Home Trust
Fund''.

Subtitle F--Other Matters

SEC. 1051. ASSESSMENT OF EFFECTS OF SPECIFIED STATUTORY LIMITATIONS ON
THE GRANTING OF SECURITY CLEARANCES.

Not later [NOTE: Deadline.] than 60 days after the date of the
enactment of this Act, the Secretary of Defense shall submit to the
Committee on Armed Services of the Senate and the Committee on Armed
Services of the House of Representatives an assessment of the effects of
the provisions of section 986 of title 10, United States

[[Page 1614]]
117 STAT. 1614

Code (relating to limitations on security clearances), on the granting
(or renewal) of security clearances for Department of Defense personnel
and defense contractor personnel. The assessment shall review the
effects of the disqualification factors specified in subsection (c) of
that section and shall include such recommendations for legislation or
administrative steps as the Secretary considers necessary.

SEC. 1052. [NOTE: 10 USC 2572 note.] ACQUISITION OF HISTORICAL
ARTIFACTS THROUGH EXCHANGE OF OBSOLETE OR SURPLUS PROPERTY.

(a) Acquisition Authorized.--The Secretary of a military department
may use the authority provided by section 2572 of title 10, United
States Code, to acquire an historical artifact that directly benefits
the historical collection of the Armed Forces in exchange for any
obsolete or surplus property held by that military department, without
regard to whether the property is described in subsection (c) of such
section.
(b) Duration of Authority.--The [NOTE: Applicability.] authority
provided by subsection (a) applies during fiscal years 2004 and 2005.

SEC. 1053. CONVEYANCE OF SURPLUS T-37 AIRCRAFT TO AIR FORCE AVIATION
HERITAGE FOUNDATION, INCORPORATED.

(a) Authority to Convey.--The Secretary of the Air Force may convey
to the Air Force Aviation Heritage Foundation, Incorporated, of Georgia
(in this section referred to as the ``Foundation''), all right, title,
and interest of the United States in and to one surplus T-37 ``Tweet''
aircraft for the sole purpose of permitting the Foundation to use the
aircraft in a static display. The conveyance shall be made by means of a
conditional deed of gift.
(b) Condition of Aircraft.--(1) The Secretary may not convey the
aircraft under subsection (a) until the aircraft has been demilitarized
in such manner as the Secretary determines necessary to ensure that the
aircraft is permanently unfit for flight and does not have any
capability for use as a platform for launching or releasing munitions or
any other combat capability that it was designed to have.
(2) The Foundation shall be responsible for the costs of
demilitarizing the aircraft, as required by paragraph (1).
Demilitarization shall be carried out in a manner intended to preserve
the historical and display value of the aircraft.
(c) Conditions for Conveyance.--(1) The conveyance of a T-37
aircraft under this section shall be subject to the following
conditions:
(A) That the Foundation not convey any right, title, or
interest in, or transfer possession of, the aircraft to any
other party without the prior approval of the Secretary of the
Air Force.
(B) That the Foundation not alter the aircraft to restore it
to flyable condition.
(C) That if the Secretary of the Air Force determines at any
time that the Foundation has conveyed an ownership interest in,
or transferred possession of, the aircraft to any other party
without the prior approval of the Secretary, or has failed to
comply with the condition set forth in subparagraph (B), all
right, title, and interest in and to the aircraft, including any
repair or alteration of the aircraft, shall revert to the United
States, and the United States shall have the right of immediate
possession of the aircraft.

[[Page 1615]]
117 STAT. 1615

(2) The Secretary shall include the conditions under paragraph (1)
in the instrument of conveyance of the T-37 aircraft.
(d) Conveyance at No Cost to the United States.--Any conveyance of a
T-37 aircraft under this section shall be made at no cost to the United
States. Any costs associated with such conveyance, costs of determining
compliance by the Foundation with the conditions in subsection (b), and
costs of restoration and maintenance of the aircraft conveyed shall be
borne by the Foundation.
(e) Additional Terms and Conditions.--The Secretary of the Air Force
may require such additional terms and conditions in connection with the
conveyance under this section as the Secretary considers appropriate to
protect the interests of the United States.
(f) Duration of [NOTE: Expiration date.] Conveyance Authority.--
The authority to make the conveyance to the Foundation authorized by
this section expires on September 30, 2005.

SEC. 1054. DEPARTMENT OF DEFENSE BIENNIAL STRATEGIC PLAN FOR MANAGEMENT
OF ELECTROMAGNETIC SPECTRUM.

(a) Requirement for Plan.--Chapter 23 of title 10, United States
Code, is amended by inserting after section 487 the following new
section:

``Sec. 488. Management of electromagnetic spectrum: biennial strategic
plan

``(a) Requirement for Strategic Plan.--Every other year, and in time
for submission to Congress under subsection (b), the Secretary of
Defense shall prepare a strategic plan for the management of the
electromagnetic spectrum to ensure the accessibility and efficient use
of that spectrum needed to support the mission of the Department of
Defense.
``(b) Submission of Plan to Congress.--The Secretary of Defense
shall submit to Congress the strategic plan most recently prepared under
subsection (a) at the same time that the President submits to Congress
the budget for an even-numbered fiscal year under section 1105(a) of
title 31.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
487 the following new item:

``488. Management of electromagnetic spectrum: biennial strategic
plan.''.

SEC. 1055. REVISION OF DEPARTMENT OF DEFENSE DIRECTIVE RELATING TO
MANAGEMENT AND USE OF RADIO FREQUENCY SPECTRUM.

Not [NOTE: Deadline.]  later than one year after the date of the
enactment of this Act, the Secretary of Defense shall revise and reissue
Department of Defense Directive 4650.1, relating to management and use
of the radio frequency spectrum, last issued on June 24, 1987, to update
the procedures applicable to Department of Defense management and use of
the radio frequency spectrum and to ensure the consideration of
requirements for usage of such spectrum by a system as early as
practicable in the acquisition program for such system.

[[Page 1616]]
117 STAT. 1616

SEC. 1056. SENSE OF CONGRESS ON DEPLOYMENT OF AIRBORNE CHEMICAL AGENT
MONITORING SYSTEMS AT CHEMICAL STOCKPILE DISPOSAL SITES IN
THE UNITED STATES.

(a) Findings.--The Congress makes the following findings:
(1) Over 23,700 tons of lethal chemical agents in assembled
chemical weapons and bulk storage containers are stored and
awaiting destruction at eight chemical agent disposal facilities
and stockpile storage sites in the United States. Some of these
weapons and storage containers contain GB or VX nerve agents,
while others contain blister agents such as HD (mustard agent).
(2) Approximately 960,000 persons live in the vicinity of
the eight chemical weapons disposal facilities and stockpile
storage sites.
(3) Airborne-agent chemical monitoring systems are currently
deployed at each of the chemical demilitarization facilities and
stockpile storage sites to provide continuous and near-real-time
monitoring of the presence of chemical agents.
(4) The National Research Council has determined that
monitoring levels used at the demilitarization facilities are
very conservative and highly protective of workers and public
health and safety and that the conservative monitoring levels
are a contributing factor in false positive alarms.
(5) The National Research Council has expressed repeated
concern about relatively frequent false positive alarms and the
lack of real-time monitoring for airborne agents and has noted
the poor state of agent monitoring technology for liquid waste
streams and solid materials suspected of possible agent
contamination.
(6) The National Research Council has concluded that,
although the Program Manager for Chemical Demilitarization has
made some efforts to develop better agent-monitoring technology,
results to date have been disappointing.
(7) The National Research Council has concluded that
development and deployment of airborne-agent monitors with
shorter response time and lower false alarm rates would enhance
safety and reduce the tendency to discount agent alarms, and has
recommended that the Program Manager for Chemical
Demilitarization and the relevant Department of Defense research
and development agencies should invigorate and coordinate
efforts to develop chemical agent monitors with improved
sensitivity, specificity, and response time.

(b) Sense of Congress.--It is the sense of Congress that the
Secretary of the Army--
(1) should, in coordination with relevant Department of
Defense research and development agencies, invigorate and
coordinate efforts to develop chemical agent monitors with
improved sensitivity, specificity, and response time; and
(2) should deploy improved chemical agent monitors in order
to ensure the maximum protection of the general public,
personnel involved in the chemical demilitarization program, and
the environment.

SEC. 1057. EXPANSION OF PRE-SEPTEMBER 11, 2001, FIRE GRANT PROGRAM OF
UNITED STATES FIRE ADMINISTRATION.

The Federal Fire Prevention and Control Act of 1974 (15 U.S.C. 2201
et seq.) is amended by redesignating the second section 33

[[Page 1617]]
117 STAT. 1617

and section 34 as [NOTE: 15 USC 2230, 2231.] sections 35 and 36,
respectively, and by inserting after the first section 33 the following
new section:

``SEC. 34. [NOTE: 15 USC 2229a.] EXPANSION OF PRE-SEPTEMBER 11, 2001,
FIRE GRANT PROGRAM.

``(a) Expanded Authority To Make Grants.--
``(1) Hiring grants.--(A) The Administrator shall make
grants directly to career, volunteer, and combination fire
departments, in consultation with the chief executive of the
State in which the applicant is located, for the purpose of
increasing the number of firefighters to help communities meet
industry minimum standards and attain 24-hour staffing to
provide adequate protection from fire and fire-related hazards,
and to fulfill traditional missions of fire departments that
antedate the creation of the Department of Homeland Security.
``(B)(i) Grants made under this paragraph shall be for 4
years and be used for programs to hire new, additional
firefighters.
``(ii) Grantees are required to commit to retaining for at
least 1 year beyond the termination of their grants those
firefighters hired under this paragraph.
``(C) In awarding grants under this subsection, the
Administrator may give preferential consideration to
applications that involve a non-Federal contribution exceeding
the minimums under subparagraph (E).
``(D) The Administrator may provide technical assistance to
States, units of local government, Indian tribal governments,
and to other public entities, in furtherance of the purposes of
this section.
``(E) The portion of the costs of hiring firefighters
provided by a grant under this paragraph may not exceed--
``(i) 90 percent in the first year of the grant;
``(ii) 80 percent in the second year of the grant;
``(iii) 50 percent in the third year of the grant;
and
``(iv) 30 percent in the fourth year of the grant.
``(F) Notwithstanding any other provision of law, any
firefighter hired with funds provided under this subsection
shall not be discriminated against for, or be prohibited from,
engaging in volunteer activities in another jurisdiction during
off-duty hours.
``(G) All grants made pursuant to this subsection shall be
awarded on a competitive basis through a neutral peer review
process.
``(H) At the beginning of the fiscal year, the Administrator
shall set aside 10 percent of the funds appropriated for
carrying out this paragraph for departments with majority
volunteer or all volunteer personnel. After awards have been
made, if less than 10 percent of the funds appropriated for
carrying out this paragraph are not awarded to departments with
majority volunteer or all volunteer personnel, the Administrator
shall transfer from funds appropriated for carrying out this
paragraph to funds available for carrying out paragraph (2) an
amount equal to the difference between the amount that is
provided to such fire departments and 10 percent.
``(2) Recruitment and retention grants.--In addition to any
amounts transferred under paragraph (1)(H), the Administrator
shall direct at least 10 percent of the total

[[Page 1618]]
117 STAT. 1618

amount of funds appropriated pursuant to this section annually
to a competitive grant program for the recruitment and retention
of volunteer firefighters who are involved with or trained in
the operations of firefighting and emergency response. Eligible
entities shall include volunteer or combination fire
departments, and organizations on a local or statewide basis
that represent the interests of volunteer firefighters.

``(b) Applications.--(1) No grant may be made under this section
unless an application has been submitted to, and approved by, the
Administrator.
``(2) An application for a grant under this section shall be
submitted in such form, and contain such information, as the
Administrator may prescribe.
``(3) At a minimum, each application for a grant under this section
shall--
``(A) explain the applicant's inability to address the need
without Federal assistance;
``(B) in the case of a grant under subsection (a)(1),
explain how the applicant plans to meet the requirements of
subsection (a)(1)(B)(ii) and (F);
``(C) specify long-term plans for retaining firefighters
following the conclusion of Federal support provided under this
section; and
``(D) provide assurances that the applicant will, to the
extent practicable, seek, recruit, and hire members of racial
and ethnic minority groups and women in order to increase their
ranks within firefighting.

``(c) Limitation on Use of Funds.--(1) Funds made available under
this section to fire departments for salaries and benefits to hire new,
additional firefighters shall not be used to supplant State or local
funds, or, in the case of Indian tribal governments, funds supplied by
the Bureau of Indian Affairs, but shall be used to increase the amount
of funds that would, in the absence of Federal funds received under this
section, be made available from State or local sources, or in the case
of Indian tribal governments, from funds supplied by the Bureau of
Indian Affairs.
``(2) No grant shall be awarded pursuant to this section to a
municipality or other recipient whose annual budget at the time of the
application for fire-related programs and emergency response has been
reduced below 80 percent of the average funding level in the 3 years
prior to the date of enactment of this section.
``(3) Funds appropriated by the Congress for the activities of any
agency of an Indian tribal government or the Bureau of Indian Affairs
performing firefighting functions on any Indian lands may be used to
provide the non-Federal share of the cost of programs or projects funded
under this section.
``(4)(A) Total funding provided under this section over 4 years for
hiring a firefighter may not exceed $100,000.
``(B) The $100,000 cap shall be adjusted annually for inflation
beginning in fiscal year 2005.
``(d) Performance Evaluation.--The Administrator may require a grant
recipient to submit any information the Administrator considers
reasonably necessary to evaluate the program.
``(e) Sunset and Reports.--The authority under this section to make
grants shall lapse at the conclusion of 10 years from the date of
enactment of this section. [NOTE: Deadline.] Not later than 6 years
after the date of the enactment of this section, the Administrator shall

[[Page 1619]]
117 STAT. 1619

submit a report to Congress concerning the experience with, and
effectiveness of, such grants in meeting the objectives of this section.
The report may include any recommendations the Administrator may have
for amendments to this section and related provisions of law.

``(f) Revocation or Suspension of Funding.--If the Administrator
determines that a grant recipient under this section is not in
substantial compliance with the terms and requirements of an approved
grant application submitted under this section, the Administrator may
revoke or suspend funding of that grant, in whole or in part.
``(g) Access to Documents.--(1) The Administrator shall have access
for the purpose of audit and examination to any pertinent books,
documents, papers, or records of a grant recipient under this section
and to the pertinent books, documents, papers, or records of State and
local governments, persons, businesses, and other entities that are
involved in programs, projects, or activities for which assistance is
provided under this section.
``(2) [NOTE: Applicability.] Paragraph (1) shall apply with
respect to audits and examinations conducted by the Comptroller General
of the United States or by an authorized representative of the
Comptroller General.

``(h) Definitions.--In this section, the term--
``(1) `firefighter' has the meaning given the term `employee
in fire protection activities' under section 3(y) of the Fair
Labor Standards Act (29 U.S.C. 203(y)); and
``(2) `Indian tribe' means a tribe, band, pueblo, nation, or
other organized group or community of Indians, including an
Alaska Native village (as defined in or established under the
Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.)),
that is recognized as eligible for the special programs and
services provided by the United States to Indians because of
their status as Indians.

``(i) Authorization of Appropriations.--There are authorized to be
appropriated for the purposes of carrying out this section--
``(1) $1,000,000,000 for fiscal year 2004;
``(2) $1,030,000,000 for fiscal year 2005;
``(3) $1,061,000,000 for fiscal year 2006;
``(4) $1,093,000,000 for fiscal year 2007;
``(5) $1,126,000,000 for fiscal year 2008;
``(6) $1,159,000,000 for fiscal year 2009; and
``(7) $1,194,000,000 for fiscal year 2010.''.

SEC. 1058. [NOTE: 31 USC 1535 note.] REVIEW AND ENHANCEMENT OF
EXISTING AUTHORITIES FOR USING AIR FORCE AND AIR NATIONAL
GUARD MODULAR AIRBORNE FIRE-FIGHTING SYSTEMS AND OTHER
DEPARTMENT OF DEFENSE ASSETS TO FIGHT WILDFIRES.

(a) Review Required.--The Director of the Office of Management and
Budget shall conduct a review of existing authorities regarding the use
of Air Force and Air National Guard Modular Airborne Fire-Fighting
Systems units and other Department of Defense assets to fight wildfires
to ensure that, in accordance with applicable legal requirements, such
assets are available in the most expeditious manner to fight wildfires
on Federal lands or non-Federal lands at the request of a Federal agency
or State

[[Page 1620]]
117 STAT. 1620

government. In conducting the review, the Director shall specifically
consider--
(1) any adverse impact caused by the restrictions contained
in section 1535(a)(4) of title 31, United States Code, or caused
by the interpretation of such restrictions, on the ability of
the Forest Service and other Federal agencies to procure such
firefighting services; and
(2) whether the authorities under the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et
seq.), including section 403(c) of such Act (42 U.S.C. 5170b),
are being properly utilized to facilitate an expeditious
Department of Defense response to State requests under, and
consistent with, such Act for firefighting services.

(b) Determination Required.--On the basis of the review, the
Director shall make a determination regarding whether existing
authorities are being used in a manner consistent with using the
available capabilities of Department of Defense assets to fight
wildfires in the most expeditious and efficacious way to minimize the
risk to public safety.
(c) Expedited Economy Act Review Process.--If the Director
determines under subsection (b) that existing authorities are adequate
for the deployment of Department of Defense assets to fight wildfires,
the Director shall develop and implement, subject to subsection (f),
such modifications to the process for conducting the cost comparison
required by section 1535(a)(4) of title 31, United States Code, as the
Director considers appropriate to further expedite the procurement of
such firefighting services.
(d) Development and Implementation of Revised Policies.--If the
Director determines under subsection (b) that the existing authorities
or their use is inadequate or can be improved, the Director shall
develop and implement, subject to subsection (f), such regulations,
policies, and interagency procedures as may be necessary to improve the
ability of the Department of Defense to respond to a request by a
Federal agency or State government to assist in fighting wildfires on
Federal lands or non-Federal lands under section 1535(a) of title 31,
United States Code, or the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5121 et seq.), or both.
(e) Reporting Requirement.--Not [NOTE: Deadline.]  later than 120
days after the date of the enactment of this Act, the Director shall
transmit to Congress a report--
(1) containing the results of the review conducted under
subsection (a) and the determination made under subsection (b);
and
(2) based on such determination, describing the
modifications proposed to be made to existing authorities under
subsection (c) or (d), including whether there is a need for
legislative changes to further improve the procedures for using
Department of Defense assets to fight wildfires.

(f) Delayed Implementation.--The modifications described in the
report prepared under subsection (e) to be made to existing authorities
under subsection (c) or (d) shall not take effect until the end of the
30-day period beginning on the date on which the report is transmitted
to Congress.

[[Page 1621]]
117 STAT. 1621

TITLE XI--CIVILIAN PERSONNEL MATTERS

Subtitle A--Department of Defense National Security Personnel System

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

Subtitle B--Department of Defense Civilian Personnel Generally

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

Subtitle C--Other Federal Government Civilian Personnel Matters

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

Subtitle A--Department of Defense National Security Personnel System

SEC. 1101. DEPARTMENT OF DEFENSE NATIONAL SECURITY PERSONNEL SYSTEM.

(a) In General.--(1) Subpart I of part III of title 5, United States
Code, is amended by adding at the end the following new chapter:

``CHAPTER 99--DEPARTMENT OF DEFENSE NATIONAL SECURITY PERSONNEL SYSTEM

``Sec.
``9901. Definitions.
``9902. Establishment of human resources management system.
``9903. Attracting highly qualified experts.
``9904. Special pay and benefits for certain employees outside the
United States.

``Sec. 9901. Definitions

``For purposes of this chapter--
``(1) the term `Director' means the Director of the Office
of Personnel Management; and
``(2) the term `Secretary' means the Secretary of Defense.

``Sec. 9902. Establishment of human resources management system

``(a) In General.--Notwithstanding any other provision of this part,
the Secretary may, in regulations prescribed jointly with the

[[Page 1622]]
117 STAT. 1622

Director, establish, and from time to time adjust, a human resources
management system for some or all of the organizational or functional
units of the Department of Defense. The human resources management
system established under authority of this section shall be referred to
as the `National Security Personnel System'.
``(b) System Requirements.--Any system established under subsection
(a) shall--
``(1) be flexible;
``(2) be contemporary;
``(3) not waive, modify, or otherwise affect--
``(A) the public employment principles of merit and
fitness set forth in section 2301, including the
principles of hiring based on merit, fair treatment
without regard to political affiliation or other
nonmerit considerations, equal pay for equal work, and
protection of employees against reprisal for
whistleblowing;
``(B) any provision of section 2302, relating to
prohibited personnel practices;
``(C)(i) any provision of law referred to in section
2302(b)(1), (8), and (9); or
``(ii) any provision of law implementing any
provision of law referred to in section 2302(b)(1), (8),
and (9) by--
``(I) providing for equal employment
opportunity through affirmative action; or
``(II) providing any right or remedy available
to any employee or applicant for employment in the
public service;
``(D) any other provision of this part (as described
in subsection (d)); or
``(E) any rule or regulation prescribed under any
provision of law referred to in this paragraph;
``(4) ensure that employees may organize, bargain
collectively as provided for in this chapter, and participate
through labor organizations of their own choosing in decisions
which affect them, subject to the provisions of this chapter and
any exclusion from coverage or limitation on negotiability
established pursuant to law;
``(5) not be limited by any specific law or authority under
this title, or by any rule or regulation prescribed under this
title, that is waived in regulations prescribed under this
chapter, subject to paragraph (3); and
``(6) include a performance management system that
incorporates the following elements:
``(A) Adherence to merit principles set forth in
section 2301.
``(B) A fair, credible, and transparent employee
performance appraisal system.
``(C) A link between the performance management
system and the agency's strategic plan.
``(D) A means for ensuring employee involvement in
the design and implementation of the system.
``(E) Adequate training and retraining for
supervisors, managers, and employees in the
implementation and operation of the performance
management system.
``(F) A process for ensuring ongoing performance
feedback and dialogue between supervisors, managers, and

[[Page 1623]]
117 STAT. 1623

employees throughout the appraisal period, and setting
timetables for review.
``(G) Effective safeguards to ensure that the
management of the system is fair and equitable and based
on employee performance.
``(H) A means for ensuring that adequate agency
resources are allocated for the design, implementation,
and administration of the performance management system.
``(I) A pay-for-performance evaluation system to
better link individual pay to performance, and provide
an equitable method for appraising and compensating
employees.

``(c) Personnel Management at Defense Laboratories.--(1) The
National Security Personnel System shall not apply with respect to a
laboratory under paragraph (2) before October 1, 2008, and shall apply
on or after October 1, 2008, only to the extent that the Secretary
determines that the flexibilities provided by the National Security
Personnel System are greater than the flexibilities provided to those
laboratories pursuant to section 342 of the National Defense
Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat.
2721) and section 1101 of the Strom Thurmond National Defense
Authorization Act for Fiscal Year 1999 (5 U.S.C. 3104 note),
respectively.
``(2) The laboratories to which this subsection applies are--
``(A) the Aviation and Missile Research Development and
Engineering Center;
``(B) the Army Research Laboratory;
``(C) the Medical Research and Materiel Command;
``(D) the Engineer Research and Development Command;
``(E) the Communications-Electronics Command;
``(F) the Soldier and Biological Chemical Command;
``(G) the Naval Sea Systems Command Centers;
``(H) the Naval Research Laboratory;
``(I) the Office of Naval Research; and
``(J) the Air Force Research Laboratory.

``(d) Other Nonwaivable Provisions.--The other provisions of this
part referred to in subsection (b)(3)(D) are (to the extent not
otherwise specified in this title)--
``(1) subparts A, B, E, G, and H of this part; and
``(2) chapters 41, 45, 47, 55 (except subchapter V thereof,
apart from section 5545b), 57, 59, 71, 72, 73, and 79, and this
chapter.

``(e) Limitations Relating to Pay.--(1) Nothing in this section
shall constitute authority to modify the pay of any employee who serves
in an Executive Schedule position under subchapter II of chapter 53.
``(2) Except as provided for in paragraph (1), the total amount in a
calendar year of allowances, differentials, bonuses, awards, or other
similar cash payments paid under this title to any employee who is paid
under section 5376 or 5383 or under title 10 or under other comparable
pay authority established for payment of Department of Defense senior
executive or equivalent employees may not exceed the total annual
compensation payable to the Vice President under section 104 of title 3.
``(3) To the maximum extent practicable, the rates of compensation
for civilian employees at the Department of Defense shall be adjusted at
the same rate, and in the same proportion, as are rates of compensation
for members of the uniformed services.

[[Page 1624]]
117 STAT. 1624

``(4) To the maximum extent practicable, for fiscal years 2004
through 2008, the overall amount allocated for compensation of the
civilian employees of an organizational or functional unit of the
Department of Defense that is included in the National Security
Personnel System shall not be less than the amount that would have been
allocated for compensation of such employees for such fiscal year if
they had not been converted to the National Security Personnel System,
based on, at a minimum--
``(A) the number and mix of employees in such organizational
or functional unit prior to the conversion of such employees to
the National Security Personnel System; and
``(B) adjusted for normal step increases and rates of
promotion that would have been expected, had such employees
remained in their previous pay schedule.

``(5) To the maximum extent practicable, the regulations
implementing the National Security Personnel System shall provide a
formula for calculating the overall amount to be allocated for fiscal
years after fiscal year 2008 for compensation of the civilian employees
of an organization or functional unit of the Department of Defense that
is included in the National Security Personnel System. The formula shall
ensure that in the aggregate, employees are not disadvantaged in terms
of the overall amount of pay available as a result of conversion to the
National Security Personnel System, while providing flexibility to
accommodate changes in the function of the organization, changes in the
mix of employees performing those functions, and other changed
circumstances that might impact pay levels.
``(f) Provisions To Ensure Collaboration With Employee
Representatives.--(1) In order to ensure that the authority of this
section is exercised in collaboration with, and in a manner that ensures
the participation of, employee representatives in the planning,
development, and implementation of the National Security Personnel
System, the Secretary and the Director shall provide for the following:
``(A) The Secretary and the Director shall, with respect to
any proposed system--
``(i) provide to the employee representatives
representing any employees who might be affected a
written description of the proposed system or adjustment
(including the reasons why it is considered necessary);
``(ii) give such representatives at least 30
calendar days (unless extraordinary circumstances
require earlier action) to review and make
recommendations with respect to the proposal; and
``(iii) give any recommendations received from such
representatives under clause (ii) full and fair
consideration in deciding whether or how to proceed with
the proposal.
``(B) Following receipt of recommendations, if any, from
such employee representatives with respect to a proposal
described in subparagraph (A), the Secretary and the Director
shall accept such modifications to the proposal in response to
the recommendations as they determine advisable and shall, with
respect to any parts of the proposal as to which they have not
accepted the recommendations--
``(i) [NOTE: Notification.] notify Congress of
those parts of the proposal, together with the
recommendations of the employee representatives;

[[Page 1625]]
117 STAT. 1625

``(ii) meet and confer for not less than 30 calendar
days with the employee representatives, in order to
attempt to reach agreement on whether or how to proceed
with those parts of the proposal; and
``(iii) at the Secretary's option, or if requested
by a majority of the employee representatives
participating, use the services of the Federal Mediation
and Conciliation Service during such meet and confer
period to facilitate the process of attempting to reach
agreement.
``(C)(i) Any part of the proposal as to which the
representatives do not make a recommendation, or as to which the
recommendations are accepted by the Secretary and the Director,
may be implemented immediately.
``(ii) With respect to any parts of the proposal as to which
recommendations have been made but not accepted by the Secretary
and the Director, at any time after 30 calendar days have
elapsed since the initiation of the congressional notification,
consultation, and mediation procedures set forth in subparagraph
(B), if the Secretary, in his discretion, determines that
further consultation and mediation is unlikely to produce
agreement, the Secretary may implement any or all of such parts
(including any modifications made in response to the
recommendations as the Secretary determines advisable), but only
after 30 days have elapsed after notifying Congress of the
decision to implement the part or parts involved (as so
modified, if applicable).
``(iii) [NOTE: Notification.] The Secretary shall notify
Congress promptly of the implementation of any part of the
proposal and shall furnish with such notice an explanation of
the proposal, any changes made to the proposal as a result of
recommendations from the employee representatives, and of the
reasons why implementation is appropriate under this
subparagraph.
``(D) If a proposal described in subparagraph (A) is
implemented, the Secretary and the Director shall--
``(i) develop a method for the employee
representatives to participate in any further planning
or development which might become necessary; and
``(ii) give the employee representatives adequate
access to information to make that participation
productive.

``(2) The Secretary may, at the Secretary's discretion, engage in
any and all collaboration activities described in this subsection at an
organizational level above the level of exclusive recognition.
``(3) In the case of any employees who are not within a unit with
respect to which a labor organization is accorded exclusive recognition,
the Secretary and the Director may develop procedures for representation
by any appropriate organization which represents a substantial
percentage of those employees or, if none, in such other manner as may
be appropriate, consistent with the purposes of this subsection.
``(4) The procedures under this subsection are the exclusive
procedures for the participation of employee representatives in the
planning, development, implementation, or adjustment of the National
Security Personnel System.

``(g) Provisions Regarding National Level Bargaining.--(1) The
National Security Personnel System implemented or modified under this
chapter may include employees of the Department of Defense from any
bargaining unit with respect to which a labor

[[Page 1626]]
117 STAT. 1626

organization has been accorded exclusive recognition under chapter 71.
``(2) For any bargaining unit so included under paragraph (1), the
Secretary may bargain with a labor organization at an organizational
level above the level of exclusive recognition. The decision to bargain
at a level above the level of exclusive recognition shall not be subject
to review or to statutory third-party dispute resolution procedures
outside the Department of Defense. Any such bargaining shall--
``(A) be binding on all subordinate bargaining units of the
labor organization at the level of recognition and their
exclusive representatives, and the Department of Defense and its
subcomponents, without regard to levels of recognition;
``(B) supersede all other collective bargaining agreements
of the labor organization, including collective bargaining
agreements negotiated with an exclusive representative at the
level of recognition, except as otherwise determined by the
Secretary;
``(C) not be subject to further negotiations with the labor
organizations for any purpose, including bargaining at the level
of recognition, except as provided for by the Secretary; and
``(D) be subject to review by an independent third party
only to the extent provided and pursuant to procedures
established under paragraph (6) of subsection (m).

``(3) The National Guard Bureau and the Army and Air Force National
Guard are excluded from coverage under this subsection.
``(4) Any bargaining completed pursuant to this subsection with a
labor organization not otherwise having national consultation rights
with the Department of Defense or its subcomponents shall not create any
obligation on the Department of Defense or its subcomponents to confer
national consultation rights on such a labor organization.
``(h) Provisions Relating to Appellate Procedures.--(1) The
Secretary--
``(A) may establish an appeals process that provides
employees of the Department of Defense organizational and
functional units that are included in the National Security
Personnel System fair treatment in any appeals that they bring
in decisions relating to their employment; and
``(B) shall in prescribing regulations for any such appeals
process--
``(i) ensure that employees in the National Security
Personnel System are afforded the protections of due
process; and
``(ii) toward that end, be required to consult with
the Merit Systems Protection Board before issuing any
such regulations.

``(2) Regulations implementing the appeals process may establish
legal standards and procedures for personnel actions, including
standards for applicable relief, to be taken on the basis of employee
misconduct or performance that fails to meet expectations. Such
standards shall be consistent with the public employment principles of
merit and fitness set forth in section 2301.
``(3) Legal standards and precedents applied before the effective
date of this section by the Merit Systems Protection Board and the
courts under chapters 43, 75, and 77 of this title shall apply to
employees of organizational and functional units included in the
National Security Personnel System, unless such standards

[[Page 1627]]
117 STAT. 1627

and precedents are inconsistent with legal standards established under
this subsection.
``(4) An employee who--
``(A) is removed, suspended for more than 14 days,
furloughed for 30 days or less, reduced in pay, or reduced in
pay band (or comparable reduction) by a final decision under the
appeals process established under paragraph (1);
``(B) is not serving under probationary period as defined
under regulations established under paragraph (2); and
``(C) would otherwise be eligible to appeal a performance-
based or adverse action under chapter 43 or 75, as applicable,
to the Merit Systems Protection Board,

shall have the right to petition the full Merit Systems Protection Board
for review of the record of that decision pursuant to regulations
established under paragraph (2). The Board may dismiss any petition
that, in the view of the Board, does not raise substantial questions of
fact or law. No personnel action shall be stayed and no interim relief
shall be granted during the pendency of the Board's review unless
specifically ordered by the Board.
``(5) The Board may order such corrective action as the Board
considers appropriate only if the Board determines that the decision
was--
``(A) arbitrary, capricious, an abuse of discretion, or
otherwise not in accordance with law;
``(B) obtained without procedures required by law, rule, or
regulation having been followed; or
``(C) unsupported by substantial evidence.

``(6) An employee who is adversely affected by a final order or
decision of the Board may obtain judicial review of the order or
decision as provided in section 7703. The Secretary of Defense, after
notifying the Director, may obtain judicial review of any final order or
decision of the Board under the same terms and conditions as provided an
employee.
``(7) Nothing in this subsection shall be construed to authorize the
waiver of any provision of law, including an appeals provision providing
a right or remedy under section 2302(b) (1), (8) or (9), that is not
otherwise waivable under subsection (a).
``(8) The right of an employee to petition the Merit Systems
Protection Board of the Department's final decision on an action covered
by paragraph (4) of this subsection, and the right of the Merit Systems
Protection Board to review such action or to order corrective action
pursuant to paragraph (5), is provisional for 7 years after the date of
the enactment of this chapter, and shall become permanent unless
Congress acts to revise such provisions.
``(i) Provisions Related to Separation and Retirement Incentives.--
(1) The Secretary may establish a program within the Department of
Defense under which employees may be eligible for early retirement,
offered separation incentive pay to separate from service voluntarily,
or both. This authority may be used to reduce the number of personnel
employed by the Department of Defense or to restructure the workforce to
meet mission objectives without reducing the overall number of
personnel. This authority is in addition to, and notwithstanding, any
other authorities established by law or regulation for such programs.
``(2)(A) The Secretary may not authorize the payment of voluntary
separation incentive pay under paragraph (1) to more than 25,000
employees in any fiscal year, except that employees who

[[Page 1628]]
117 STAT. 1628

receive voluntary separation incentive pay as a result of a closure or
realignment of a military installation under the Defense Base Closure
and Realignment Act of 1990 (title XXIX of Public Law 101-510; 10 U.S.C.
2687 note) shall not be included in that number.
``(B) The Secretary shall prepare a report each fiscal year setting
forth the number of employees who received such pay as a result of a
closure or realignment of a military base as described under
subparagraph (A).
``(C) The [NOTE: Reports.] Secretary shall submit the report under
subparagraph (B) to the Committee on Armed Services and the Committee on
Governmental Affairs of the Senate, and the Committee on Armed Services
and the Committee on Government Reform of the House of Representatives.

``(3) For purposes of this section, the term `employee' means an
employee of the Department of Defense, serving under an appointment
without time limitation, except that such term does not include--
``(A) a reemployed annuitant under subchapter III of chapter
83 or chapter 84, or another retirement system for employees of
the Federal Government;
``(B) an employee having a disability on the basis of which
such employee is or would be eligible for disability retirement
under any of the retirement systems referred to in subparagraph
(A); or
``(C) for purposes of eligibility for separation incentives
under this section, an employee who is in receipt of a decision
notice of involuntary separation for misconduct or unacceptable
performance.

``(4) An employee who is at least 50 years of age and has completed
20 years of service, or has at least 25 years of service, may, pursuant
to regulations promulgated under this section, apply and be retired from
the Department of Defense and receive benefits in accordance with
chapter 83 or 84 if the employee has been employed continuously within
the Department of Defense for more than 30 days before the date on which
the determination to conduct a reduction or restructuring within 1 or
more Department of Defense components is approved.
``(5)(A) Separation pay shall be paid in a lump sum or in
installments and shall be equal to the lesser of--
``(i) an amount equal to the amount the employee would be
entitled to receive under section 5595(c), if the employee were
entitled to payment under such section; or
``(ii) $25,000.

``(B) Separation pay shall not be a basis for payment, and shall not
be included in the computation, of any other type of Government benefit.
Separation pay shall not be taken into account for the purpose of
determining the amount of any severance pay to which an individual may
be entitled under section 5595, based on any other separation.
``(C) Separation pay, if paid in installments, shall cease to be
paid upon the recipient's acceptance of employment by the Federal
Government, or commencement of work under a personal services contract
as described in paragraph (6).
``(6)(A) An employee who receives separation pay under such program
may not be reemployed by the Department of Defense for a 12-month period
beginning on the effective date of the

[[Page 1629]]
117 STAT. 1629

employee's separation, unless this prohibition is waived by the
Secretary on a case-by-case basis.
``(B) An employee who receives separation pay under this section on
the basis of a separation occurring on or after the date of the
enactment of the Federal Workforce Restructuring Act of 1994 (Public Law
103-236; 108 Stat. 111) and accepts employment with the Government of
the United States, or who commences work through a personal services
contract with the United States within 5 years after the date of the
separation on which payment of the separation pay is based, shall be
required to repay the entire amount of the separation pay to the
Department of Defense. If the employment is with an Executive agency (as
defined by section 105) other than the Department of Defense, the
Director may, at the request of the head of that agency, waive the
repayment if the individual involved possesses unique abilities and is
the only qualified applicant available for the position. If the
employment is within the Department of Defense, the Secretary may waive
the repayment if the individual involved is the only qualified applicant
available for the position. If the employment is with an entity in the
legislative branch, the head of the entity or the appointing official
may waive the repayment if the individual involved possesses unique
abilities and is the only qualified applicant available for the
position. If the employment is with the judicial branch, the Director of
the Administrative Office of the United States Courts may waive the
repayment if the individual involved possesses unique abilities and is
the only qualified applicant available for the position.
``(7) Under this program, early retirement and separation pay may be
offered only pursuant to regulations established by the Secretary,
subject to such limitations or conditions as the Secretary may require.
``(j) Provisions Relating to Reemployment.--If an annuitant
receiving an annuity from the Civil Service Retirement and Disability
Fund becomes employed in a position within the Department of Defense,
his annuity shall continue. An annuitant so reemployed shall not be
considered an employee for purposes of chapter 83 or 84.
``(k) Additional Provisions Relating to Personnel Management.--(1)
Notwithstanding subsection (d), the Secretary of Defense, in
establishing and implementing the National Security Personnel System
under subsection (a), shall not be limited by any provision of this
title or any rule or regulation prescribed under this title in
establishing and implementing regulations relating to--
``(A) the methods of establishing qualification requirements
for, recruitment for, and appointments to positions;
``(B) the methods of assigning, reassigning, detailing,
transferring, or promoting employees; and
``(C) the methods of reducing overall agency staff and grade
levels, except that performance, veterans' preference, tenure of
employment, length of service, and such other factors as the
Secretary considers necessary and appropriate shall be
considered in decisions to realign or reorganize the
Department's workforce.

``(2) In implementing this subsection, the Secretary shall comply
with the provisions of section 2302(b)(11), regarding veterans'
preference requirements, as provided for in subsection (b)(3).

[[Page 1630]]
117 STAT. 1630

``(l) Phase-In.--The Secretary may apply the National Security
Personnel System--
``(1) to an organizational or functional unit that includes
up to 300,000 civilian employees of the Department of Defense,
without having to make a determination described in paragraph
(2); and
``(2) to an organizational or functional unit that includes
more than 300,000 civilian employees of the Department of
Defense, if the Secretary determines in accordance with
subsection (a) that the Department has in place a performance
management system that meets the criteria specified in
subsection (b).

``(m) Labor Management Relations in the Department of Defense.--(1)
Notwithstanding section 9902(d)(2), the Secretary, together with the
Director, may establish and from time to time adjust a labor relations
system for the Department of Defense to address the unique role that the
Department's civilian workforce plays in supporting the Department's
national security mission.
``(2) The system developed or adjusted under paragraph (1) would
allow for a collaborative issue-based approach to labor management
relations.
``(3) In order to ensure that the authority of this section is
exercised in collaboration with, and in a manner that ensures the
participation of, employee representatives in the development and
implementation of the labor management relations system or adjustments
to such system under this section, the Secretary shall provide for the
following:
``(A) The Secretary and the Director shall, with respect to
any proposed system or adjustment--
``(i) afford employee representatives and management
the opportunity to have meaningful discussions
concerning the development of the new system;
``(ii) give such representatives at least 30
calendar days (unless extraordinary circumstances
require earlier action) to review the proposal for the
system and make recommendations with respect to it; and
``(iii) give any recommendations received from such
representatives under clause (ii) full and fair
consideration.
``(B) Following receipt of recommendations, if any, from
such employee representatives with respect to a proposal
described in subparagraph (A), the Secretary and the Director
shall accept such modifications to the proposal in response to
the recommendations as are determined advisable and shall, with
respect to any parts of the proposal as to which they have not
accepted the recommendations--
``(i) meet and confer for not less than 30 calendar
days with the employee representatives, in order to
attempt to reach agreement on whether or how to proceed
with those parts of the proposal; and
``(ii) at the Secretary's option, or if requested by
a majority of the employee representatives
participating, use the services of the Federal Mediation
and Conciliation Service during such meet and confer
period to facilitate the process of attempting to reach
agreement.

[[Page 1631]]
117 STAT. 1631

``(C)(i) Any part of the proposal described in subparagraph
(A) as to which employee representatives do not make a
recommendation, or as to which the recommendations are accepted
under subparagraph (B), may be implemented immediately.
``(ii) With respect to any parts of the proposal as to which
recommendations have been made but not accepted, at any time
after 30 calendar days have elapsed since the consultation and
mediation procedures set forth in subparagraph (B), if the
Secretary, in his discretion, determines that further
consultation and mediation is unlikely to produce agreement, the
Secretary may implement any or all of such parts (including any
modifications made in response to the recommendations as the
Secretary determines advisable), but only after 30 days have
elapsed after notifying Congress of the decision to implement
the part or parts involved (as so modified, if applicable).
``(D) [NOTE: Deadline.] The process for collaborating with
employee representatives provided for under this subsection
shall begin no later than 60 calendar days after the date of
enactment of this subsection.

``(4) The Secretary may engage in any and all collaboration
activities described in this subsection at an organizational level above
the level of exclusive recognition.
``(5) The system developed or adjusted under this subsection may
incorporate the authority to bargain at a level above the level of
exclusion recognition provided for in subsection (g) of this section,
but may not abrogate or modify the authority provided for in that
subsection. Notwithstanding this subsection, the Secretary may, at his
discretion, implement the authority in subsection (g) immediately upon
enactment of this subsection.
``(6) The labor relations system developed or adjusted under this
subsection shall provide for independent third party review of
decisions, including defining what decisions are reviewable by the third
party, what third party would conduct the review, and the standard or
standards for that review.
``(7) Nothing in this section, including the authority provided to
waive, modify, or otherwise affect provisions of law not listed in
subsections (b) and (c) as nonwaivable, shall be construed to expand the
scope of bargaining under chapter 71 or this subsection with respect to
any provision of this title that may be waived, modified, or otherwise
affected under this section.
``(8) The labor relations system developed or adjusted under this
subsection shall be binding on all bargaining units within the
Department of Defense, all employee representatives of such units, and
the Department of Defense and its subcomponents, and shall supersede all
other collective bargaining agreements for bargaining units in the
Department of Defense, including collective bargaining agreements
negotiated with employee representatives at the level of recognition,
except as otherwise determined by the Secretary.
``(9) Unless it is extended or otherwise provided for in law, the
authority to establish, implement and adjust the labor relations system
developed under this subsection shall expire six years after the date of
enactment of this subsection, at which time the provisions of chapter 71
will apply.

[[Page 1632]]
117 STAT. 1632

``Sec. 9903. Attracting highly qualified experts

``(a) In General.--The Secretary may carry out a program using the
authority provided in subsection (b) in order to attract highly
qualified experts in needed occupations, as determined by the Secretary.
``(b) Authority.--Under the program, the Secretary may--
``(1) appoint personnel from outside the civil service and
uniformed services (as such terms are defined in section 2101)
to positions in the Department of Defense without regard to any
provision of this title governing the appointment of employees
to positions in the Department of Defense;
``(2) prescribe the rates of basic pay for positions to
which employees are appointed under paragraph (1) at rates not
in excess of the maximum rate of basic pay authorized for
senior-level positions under section 5376, as increased by
locality-based comparability payments under section 5304,
notwithstanding any provision of this title governing the rates
of pay or classification of employees in the executive branch;
and
``(3) pay any employee appointed under paragraph (1)
payments in addition to basic pay within the limits applicable
to the employee under subsection (d).

``(c) Limitation on Term of Appointment.--(1) Except as provided in
paragraph (2), the service of an employee under an appointment made
pursuant to this section may not exceed 5 years.
``(2) The Secretary may, in the case of a particular employee,
extend the period to which service is limited under paragraph (1) by up
to 1 additional year if the Secretary determines that such action is
necessary to promote the Department of Defense's national security
missions.
``(d) Limitations on Additional Payments.--(1) The total amount of
the additional payments paid to an employee under this section for any
12-month period may not exceed the lesser of the following amounts:
``(A) $50,000 in fiscal year 2004, which may be adjusted
annually thereafter by the Secretary, with a percentage increase
equal to one-half of 1 percentage point less than the percentage
by which the Employment Cost Index, published quarterly by the
Bureau of Labor Statistics, for the base quarter of the year
before the preceding calendar year exceeds the Employment Cost
Index for the base quarter of the second year before the
preceding calendar year.
``(B) The amount equal to 50 percent of the employee's
annual rate of basic pay.

For purposes of this paragraph, the term `base quarter' has the meaning
given such term by section 5302(3).
``(2) An employee appointed under this section is not eligible for
any bonus, monetary award, or other monetary incentive for service
except for payments authorized under this section.
``(3) Notwithstanding any other provision of this subsection or of
section 5307, no additional payments may be paid to an employee under
this section in any calendar year if, or to the extent that, the
employee's total annual compensation will exceed the maximum amount of
total annual compensation payable at the salary set in accordance with
section 104 of title 3.
``(e) Limitation on Number of Highly Qualified Experts.--The number
of highly qualified experts appointed and retained

[[Page 1633]]
117 STAT. 1633

by the Secretary under subsection (b)(1) shall not exceed 2,500 at any
time.
``(f) Savings Provisions.--In the event that the Secretary
terminates this program, in the case of an employee who, on the day
before the termination of the program, is serving in a position pursuant
to an appointment under this section--
``(1) the termination of the program does not terminate the
employee's employment in that position before the expiration of
the lesser of--
``(A) the period for which the employee was
appointed; or
``(B) the period to which the employee's service is
limited under subsection (c), including any extension
made under this section before the termination of the
program; and
``(2) the rate of basic pay prescribed for the position
under this section may not be reduced as long as the employee
continues to serve in the position without a break in service.

``Sec. 9904. Special pay and benefits for certain employees outside the
United States

``The Secretary may provide to certain civilian employees of the
Department of Defense assigned to activities outside the United States
as determined by the Secretary to be in support of Department of Defense
activities abroad hazardous to life or health or so specialized because
of security requirements as to be clearly distinguishable from normal
Government employment--
``(1) allowances and benefits--
``(A) comparable to those provided by the Secretary
of State to members of the Foreign Service under chapter
9 of title I of the Foreign Service Act of 1980 (Public
Law 96-465, 22 U.S.C. 4081 et seq.) or any other
provision of law; or
``(B) comparable to those provided by the Director
of Central Intelligence to personnel of the Central
Intelligence Agency; and
``(2) special retirement accrual benefits and disability in
the same manner provided for by the Central Intelligence Agency
Retirement Act (50 U.S.C. 2001 et seq.) and in section 18 of the
Central Intelligence Agency Act of 1949 (50 U.S.C. 403r).''.

(2) The table of chapters for part III of such title is amended by
adding at the end of subpart I the following new item:

``99. Department of Defense National Security Personnel System...9901''.

(b) [NOTE: 5 USC 9901 note.] Impact on Department of Defense
Civilian Personnel.--(1) Any exercise of authority under chapter 99 of
such title (as added by subsection (a)), including under any system
established under such chapter, shall be in conformance with the
requirements of this subsection.

(2) No other provision of this Act or of any amendment made by this
Act may be construed or applied in a manner so as to limit, supersede,
or otherwise affect the provisions of this section, except to the extent
that it does so by specific reference to this section.

[[Page 1634]]
117 STAT. 1634

Subtitle B--Department of Defense Civilian Personnel Generally

SEC. 1111. [NOTE: 5 USC 9902 note.] PILOT PROGRAM FOR IMPROVED
CIVILIAN PERSONNEL MANAGEMENT.

(a) Pilot Program.--The Secretary of Defense may carry out a pilot
program using an automated workforce management system to demonstrate
improved efficiency in the performance of civilian personnel management.
The automated workforce management system used for the pilot program
shall be capable of automating the following workforce management
functions:
(1) Job definition.
(2) Position management.
(3) Recruitment.
(4) Staffing.
(5) Performance management.

(b) Authorities Under Pilot Program.--Under the pilot program, the
Secretary of Defense shall provide the Secretary of each military
department with the authority for the following:
(1) To use an automated workforce management system for the
civilian workforce of that military department to assess the
potential of such a system to do the following:
(A) Substantially reduce hiring cycle times.
(B) Lower labor costs.
(C) Increase efficiency.
(D) Improve performance management.
(E) Provide better management reporting.
(F) Enable that system to make operational new
personnel management flexibilities granted under the
civilian personnel transformation program.
(2) Identify at least one regional civilian personnel center
(or equivalent) in that military department for participation in
the pilot program.

(c) Duration of Pilot Program.--The [NOTE: Deadline.]  Secretary
of Defense may carry out the pilot program under this section at each
selected regional civilian personnel center for a period of two years
beginning not later than March 1, 2004.

SEC. 1112. CLARIFICATION AND REVISION OF AUTHORITY FOR DEMONSTRATION
PROJECT RELATING TO CERTAIN ACQUISITION PERSONNEL MANAGEMENT
POLICIES AND PROCEDURES.

Section 4308 of the National Defense Authorization Act for Fiscal
Year 1996 (10 U.S.C. 1701 note) is amended--
(1) in subsection (b), by striking paragraph (3) and
inserting the following:
``(3) Conditions.--Paragraph (2) shall not apply with
respect to a demonstration project unless--
``(A) for each organization or team participating in
the demonstration project--
``(i) at least one-third of the workforce
participating in the demonstration project
consists of members of the acquisition workforce;
and

[[Page 1635]]
117 STAT. 1635

``(ii) at least two-thirds of the workforce
participating in the demonstration project
consists of members of the acquisition workforce
and supporting personnel assigned to work directly
with the acquisition workforce; and
``(B) the demonstration project commences before
October 1, 2007.'';
(2) in subsection (d), by striking ``95,000'' and inserting
``120,000'';
(3) by redesignating subsection (e) as subsection (f); and
(4) by inserting after subsection (d) the following:

``(e) Effect of Reorganizations.--The applicability of paragraph (2)
of subsection (b) to an organization or team shall not terminate by
reason that the organization or team, after having satisfied the
conditions in paragraph (3) of such subsection when it began to
participate in a demonstration project under this section, ceases to
meet one or both of the conditions set forth in subparagraph (A) of such
paragraph (3) as a result of a reorganization, restructuring,
realignment, consolidation, or other organizational change.''.

SEC. 1113. MILITARY LEAVE FOR MOBILIZED FEDERAL CIVILIAN EMPLOYEES.

(a) In General.--Subsection (b) of section 6323 of title 5, United
States Code, is amended--
(1) in paragraph (2)--
(A) by redesignating subparagraphs (A) and (B) as
clauses (i) and (ii), respectively, and at the end of
clause (ii), as so redesignated, by inserting ``or'';
and
(B) by inserting ``(A)'' after ``(2)''; and
(2) by inserting the following before the text beginning
with ``is entitled'':
``(B) performs full-time military service as a result of a
call or order to active duty in support of a contingency
operation as defined in section 101(a)(13) of title 10;''.

(b) [NOTE: 5 USC 6323 note.] Effective Date.--The amendments made
by subsection (a) shall apply to military service performed on or after
the date of the enactment of this Act.

SEC. 1114. [NOTE: 5 USC 6304 note.] RESTORATION OF ANNUAL LEAVE FOR
CERTAIN DEPARTMENT OF DEFENSE EMPLOYEES.

(a) Restoration of Annual Leave.--During the period October 1, 1992,
through December 31, 1997, all employees transferring from a closing or
realigning Department of Defense installation or activity as defined
under section 6304(d)(3) of title 5, United States Code, to another
Department of Defense installation or activity--
(1) may be deemed eligible by the Secretary of Defense for
automatic restoration of forfeited annual leave under section
6304(d)(3) of title 5, United States Code, during the year of
transfer; and
(2) may be deemed by the Secretary of Defense to have used
all forfeited annual leave properly restored under section
6304(d)(3) of title 5, United States Code, within the
appropriate time limits, only if such restored annual leave was
used by the employee or paid to the employee in the form of a
lump sum payment under section 5551(a) of title 5, United States
Code, by the last day of the 2001 leave year.

[[Page 1636]]
117 STAT. 1636

(b) Payment of Restored Annual Leave.--(1) On or after September 23,
1996, all employees transferring from a closing or realigning Department
of Defense installation or activity as defined under section
6304(d)(3)(A) of title 5, United States Code, to another Department of
Defense installation or activity who, upon transfer, were entitled to
payment of a lump sum payment under section 5551(c) of title 5, United
States Code, for forfeited annual leave properly restored under section
6304(d)(3) of title 5, United States Code--
(A) may be paid only for any such restored annual leave
currently remaining to their credit at the hourly rate payable
on the date of transfer with appropriate back pay interest; and
(B) shall be deemed paid for all such restored annual leave
to which that employee was entitled to payment upon transfer,
but subsequently used or was otherwise paid for upon separation.

(2) This subsection shall take effect on the date of the enactment
of this Act.

SEC. 1115. AUTHORITY TO EMPLOY CIVILIAN FACULTY MEMBERS AT THE WESTERN
HEMISPHERE INSTITUTE FOR SECURITY COOPERATION.

Section 1595(c) of title 10, United States Code, is amended by
adding at the end the following new paragraph:
``(6) The Western Hemisphere Institute for Security
Cooperation.''.

SEC. 1116. [NOTE: 5 USC 3104 note.] EXTENSION OF AUTHORITY FOR
EXPERIMENTAL PERSONNEL PROGRAM FOR SCIENTIFIC AND TECHNICAL
PERSONNEL.

(a) Extension of Program.--Subsection (e)(1) of section 1101 of the
Strom Thurmond National Defense Authorization Act for Fiscal Year 1999
(Public Law 105-261; 112 Stat. 2139; 5 U.S.C. 3104 note) is amended by
striking ``October 16, 2005'' and inserting ``September 30, 2008''.
(b) Commensurate Extension of Requirement for Annual Report.--
Subsection (g) of such section is amended by striking ``2006'' and
inserting ``2009''.

Subtitle C--Other Federal Government Civilian Personnel Matters

SEC. 1121. MODIFICATION OF THE OVERTIME PAY CAP.

Section 5542(a)(2) of title 5, United States Code, is amended--
(1) by inserting ``the greater of'' before ``one and one-
half''; and
(2) by inserting ``or the hourly rate of basic pay of the
employee'' after ``law)'' the second place it appears.

SEC. 1122. COMMON OCCUPATIONAL AND HEALTH STANDARDS FOR DIFFERENTIAL
PAYMENTS AS A CONSEQUENCE OF EXPOSURE TO ASBESTOS.

(a) Prevailing Rate Systems.--Section 5343(c)(4) of title 5, United
States Code, is amended by inserting before the semicolon at the end the
following: ``, and for any hardship or hazard related

[[Page 1637]]
117 STAT. 1637

to asbestos, such differentials shall be determined by applying
occupational safety and health standards consistent with the permissible
exposure limit promulgated by the Secretary of Labor under the
Occupational Safety and Health Act of 1970''.
(b) General Schedule Pay Rates.--Section 5545(d) of such title is
amended by inserting before the period at the end of the first sentence
the following: ``, and for any hardship or hazard related to asbestos,
such differentials shall be determined by applying occupational safety
and health standards consistent with the permissible exposure limit
promulgated by the Secretary of Labor under the Occupational Safety and
Health Act of 1970''.
(c) [NOTE: 5 USC 5343 note.] Applicability.--Subject to any vested
constitutional property rights, any administrative or judicial
determination after the date of the enactment of this Act concerning
backpay for a differential established under sections 5343(c)(4) or
5545(d) of such title shall be based on occupational safety and health
standards described in the amendments made by subsections (a) and (b).

SEC. 1123. INCREASE IN ANNUAL STUDENT LOAN REPAYMENT AUTHORITY.

(a) Increase.--Section 5379(b)(2)(A) of title 5, United States Code,
is amended by striking ``$6,000'' and inserting ``$10,000''.
(b) Effective Date.--The amendment made by subsection (a) shall take
effect on January 1, 2004.

SEC. 1124. AUTHORIZATION FOR CABINET SECRETARIES, SECRETARIES OF
MILITARY DEPARTMENTS, AND HEADS OF EXECUTIVE AGENCIES TO BE
PAID ON A BIWEEKLY BASIS.

(a) Authorization.--Section 5504 of title 5, United States Code, is
amended--
(1) by redesignating subsection (c) as subsection (d);
(2) by striking the last sentence of both subsection (a) and
subsection (b); and
(3) by inserting after subsection (b) the following:

``(c) For the purposes of this section:
``(1) The term `employee' means--
``(A) an employee in or under an Executive agency;
``(B) an employee in or under the Office of the
Architect of the Capitol, the Botanic Garden, and the
Library of Congress, for whom a basic administrative
workweek is established under section 6101(a)(5) of this
title; and
``(C) an individual employed by the government of
the District of Columbia.
``(2) The term `employee' does not include--
``(A) an employee on the Isthmus of Panama in the
service of the Panama Canal Commission; or
``(B) an employee or individual excluded from the
definition of employee in section 5541(2) of this title
other than an employee or individual excluded by clauses
(ii), (iii), and (xiv) through (xvii) of such section.
``(3) Notwithstanding paragraph (2), an individual who
otherwise would be excluded from the definition of employee
shall be deemed to be an employee for purposes of this section
if the individual's employing agency so elects, under guidelines
in regulations promulgated by the Office of Personnel Management
under subsection (d)(2).''.

[[Page 1638]]
117 STAT. 1638

(b) Guidelines.--Subsection (d) of section 5504 of such title, as
redesignated by subsection (a), is amended--
(1) by inserting ``(1)'' after ``(d)''; and
(2) by adding at the end the following new paragraph:

``(2) The Office of Personnel Management shall provide guidelines by
regulation for exemptions to be made by the heads of agencies under
subsection (c)(3). Such guidelines shall provide for such exemptions
only under exceptional circumstances.''.

SEC. 1125. SENIOR EXECUTIVE SERVICE AND PERFORMANCE.

(a) Senior Executive Pay.--Chapter 53 of title 5, United States
Code, is amended--
(1) in section 5304--
(A) in subsection (g)(2)--
(i) in subparagraph (A) by striking
``subparagraphs (A)-(E)'' and inserting
``subparagraphs (A)-(D)''; and
(ii) in subparagraph (B) by striking
``subsection (h)(1)(F)'' and inserting
``subsection (h)(1)(D)'';
(B) in subsection (h)(1)--
(i) by striking subparagraphs (B) and (C);
(ii) by redesignating subparagraphs (D), (E),
and (F) as subparagraphs (B), (C), and (D),
respectively;
(iii) in clause (ii) by striking ``or'' at the
end;
(iv) in clause (iii) by striking the period
and inserting a semicolon; and
(v) by adding at the end the following new
clauses:
``(iv) a Senior Executive Service position under section
3132;
``(v) a position in the Federal Bureau of Investigation and
Drug Enforcement Administration Senior Executive Service under
section 3151; or
``(vi) a position in a system equivalent to the system in
clause (iv), as determined by the President's Pay Agent
designated under subsection (d).''; and
(C) in subsection (h)(2)(B)--
(i) in clause (i)--
(I) by striking ``subparagraphs (A)
through (E)'' and inserting
``subparagraphs (A) through (C)''; and
(II) by striking ``clause (i) or
(ii)'' and inserting ``clause (i), (ii),
(iii), (iv), (v), or (vii)''; and
(ii) in clause (ii)--
(I) by striking ``paragraph (1)(F)''
and inserting ``paragraph (1)(D)''; and
(II) by striking ``clause (i) or
(ii)'' and inserting ``clause (i), (ii),
(iii), (iv), (v), or (vi)'';
(2) by amending section 5382 to read as follows:

``Sec. 5382. Establishment of rates of pay for the Senior Executive
Service

``(a) Subject to regulations prescribed by the Office of Personnel
Management, there shall be established a range of rates of basic pay for
the Senior Executive Service, and each senior executive shall be paid at
one of the rates within the range, based on individual performance,
contribution to the agency's performance, or both, as determined under a
rigorous performance management system. The lowest rate of the range
shall not be less than the minimum rate of basic pay payable under
section 5376, and the

[[Page 1639]]
117 STAT. 1639

highest rate, for any position under this system or an equivalent system
as determined by the President's Pay Agent designated under section
5304(d), shall not exceed the rate for level III of the Executive
Schedule. The payment of the rates shall not be subject to the pay
limitation of section 5306(e) or 5373.
``(b) Notwithstanding the provisions of subsection (a), the
applicable maximum shall be level II of the Executive Schedule for any
agency that is certified under section 5307 as having a performance
appraisal system which, as designed and applied, makes meaningful
distinctions based on relative performance.
``(c) No employee may suffer a reduction in pay by reason of
transfer from an agency with an applicable maximum rate of pay
prescribed under subsection (b) to an agency with an applicable maximum
rate of pay prescribed under subsection (a).''; and
(3) in section 5383--
(A) in subsection (a) by striking ``which of the
rates established under section 5382 of this title'' and
inserting ``which of the rates within a range
established under section 5382''; and
(B) in subsection (c) by striking ``for any pay
adjustment under section 5382 of this title'' and
inserting ``as provided in regulations prescribed by the
Office under section 5385''.

(b) Post-Employment Restrictions.--(1) Clause (ii) of section
207(c)(2)(A) of title 18, United States Code, is amended to read as
follows:
``(ii) employed in a position which is not referred
to in clause (i) and for which that person is paid at a
rate of basic pay which is equal to or greater than 86.5
percent of the rate of basic pay for level II of the
Executive Schedule, or, for a period of 2 years
following the enactment of the National Defense
Authorization Act for Fiscal Year 2004, a person who, on
the day prior to the enactment of that Act, was employed
in a position which is not referred to in clause (i) and
for which the rate of basic pay, exclusive of any
locality-based pay adjustment under section 5304 or
section 5304a of title 5, was equal to or greater than
the rate of basic pay payable for level 5 of the Senior
Executive Service on the day prior to the enactment of
that Act,''.

(2) Subchapter I of chapter 73 of title 5, United States Code, is
amended by inserting at the end the following new section:

``Sec. 7302. Post-employment notification

``(a) [NOTE: Deadline.] Not later than the effective date of the
amendments made by section 1106 of the National Defense Authorization
Act for Fiscal Year 2004, or 180 days after the date of the enactment of
that Act, whichever is later, the Office of Personnel Management shall,
in consultation with the Attorney General and the Office of Government
Ethics, promulgate regulations requiring that each Executive branch
agency notify any employee of that agency who is subject to the
provisions of section 207(c)(1) of title 18, as a result of the
amendment to section 207(c)(2)(A)(ii) of that title by that Act.

``(b) The regulations shall require that notice be given before, or
as part of, the action that affects the employee's coverage under
section 207(c)(1) of title 18, by virtue of the provisions of section

[[Page 1640]]
117 STAT. 1640

207(c)(2)(A)(ii) of that title, and again when employment or service in
the covered position is terminated.''.
(3) The table of sections for chapter 73 of title 5, United States
Code, is amended by adding after the item relating to section 7301 the
following:

``7302. Post-employment notification.''.

(c) [NOTE: 5 USC 5304 note.] Effective Date and Applicability.--
(1) The amendments made by this section shall take effect on the first
day of the first pay period beginning on or after the first January 1
following the date of the enactment of this section.

(2) The amendments made by subsection (a) may not result in a
reduction in the rate of basic pay for any senior executive during the
first year after the effective date of those amendments.
(3) For the purposes of paragraph (2), the rate of basic pay for a
senior executive shall be deemed to be the rate of basic pay set for the
senior executive under section 5383 of title 5, United States Code, plus
applicable locality pay paid to that senior executive, as of the date of
the enactment of this Act.
(4) Until otherwise provided by law, or except as otherwise provided
by this section, any reference in a provision of law to a rate of basic
pay that is above the minimum payable and below the maximum payable to a
member of the Senior Executive Service shall be considered a reference
to the rate of basic pay payable for level IV of the Executive Schedule.

SEC. 1126. [NOTE: 5 USC 4701 note.] DESIGN ELEMENTS OF PAY-FOR-
PERFORMANCE SYSTEMS IN DEMONSTRATION PROJECTS.

A pay-for-performance system may not be initiated under chapter 47
of title 5, United States Code, after the date of the enactment of this
Act, unless it incorporates the following elements:
(1) Adherence to merit principles set forth in section 2301
of such title.
(2) A fair, credible, and transparent employee performance
appraisal system.
(3) A link between elements of the pay-for-performance
system, the employee performance appraisal system, and the
agency's strategic plan.
(4) A means for ensuring employee involvement in the design
and implementation of the system.
(5) Adequate training and retraining for supervisors,
managers, and employees in the implementation and operation of
the pay-for-performance system.
(6) A process for ensuring ongoing performance feedback and
dialogue between supervisors, managers, and employees throughout
the appraisal period, and setting timetables for review.
(7) Effective safeguards to ensure that the management of
the system is fair and equitable and based on employee
performance.
(8) A means for ensuring that adequate agency resources are
allocated for the design, implementation, and administration of
the pay-for-performance system.

SEC. 1127. [NOTE: 5 USC 1101 note.] FEDERAL FLEXIBLE BENEFITS PLAN
ADMINISTRATIVE COSTS.

(a) In General.--Notwithstanding any other provision of law, an
agency or other employing entity of the Government which

[[Page 1641]]
117 STAT. 1641

provides or plans to provide a flexible spending account option for its
employees shall not impose any fee with respect to any of its employees
in order to defray the administrative costs associated therewith.
(b) Offset of Administrative Costs.--Each such agency or employing
entity that offers a flexible spending account option under a program
established or administered by the Office of Personnel Management shall
periodically forward to such Office, or entity designated by such
Office, the amount necessary to offset the administrative costs of such
program which are attributable to such agency.
(c) [NOTE: Deadline.] Reports.--(1) The Office shall submit a
report to the Committee on Government Reform of the House of
Representatives and the Committee on Governmental Affairs of the Senate
no later than March 31, 2004, specifying the administrative costs
associated with the Governmentwide program (referred to in subsection
(b)) for fiscal year 2003, as well as the projected administrative costs
of such program for each of the 5 fiscal years thereafter.

(2) At the end of each of the first 3 calendar years in which an
agency or other employing entity offers a flexible spending account
option under this section, such agency or entity shall submit a report
to the Office of Management and Budget showing the amount of its
employment tax savings in such year which are attributable to such
option, net of administrative fees paid under subsection (b).

SEC. 1128. [NOTE: 5 USC 7101 note.] EMPLOYEE SURVEYS.

(a) In General.--Each agency shall conduct an annual survey of its
employees (including survey questions unique to the agency and questions
prescribed under subsection (b)) to assess--
(1) leadership and management practices that contribute to
agency performance; and
(2) employee satisfaction with--
(A) leadership policies and practices;
(B) work environment;
(C) rewards and recognition for professional
accomplishment and personal contributions to achieving
organizational mission;
(D) opportunity for professional development and
growth; and
(E) opportunity to contribute to achieving
organizational mission.

(b) Regulations.--The Office of Personnel Management shall issue
regulations prescribing survey questions that should appear on all
agency surveys under subsection (a) in order to allow a comparison
across agencies.
(c) Availability of Results.--The results of the agency surveys
under subsection (a) shall be made available to the public and posted on
the website of the agency involved, unless the head of such agency
determines that doing so would jeopardize or negatively impact national
security.
(d) Agency defined.--For purposes of this section, the term
``agency'' means an Executive agency (as defined by section 105 of title
5, United States Code).

SEC. 1129. HUMAN CAPITAL PERFORMANCE FUND.

(a) In General.--Subpart D of part III of title 5, United States
Code, is amended by inserting after chapter 53 the following:

[[Page 1642]]
117 STAT. 1642

``CHAPTER 54--HUMAN CAPITAL PERFORMANCE FUND

``Sec.
``5401. Purpose.
``5402. Definitions.
``5403. Human Capital Performance Fund.
``5404. Human capital performance payments.
``5405. Regulations.
``5406. Agency plan.
``5407. Nature of payment.
``5408. Appropriations.

``Sec. 5401. Purpose

``The purpose of this chapter is to promote, through the creation of
a Human Capital Performance Fund, greater performance in the Federal
Government. Monies from the Fund will be used to reward agencies'
highest performing and most valuable employees. This Fund will offer
Federal managers a new tool to recognize employee performance that is
critical to the achievement of agency missions.

``Sec. 5402. Definitions

``For the purpose of this chapter--
``(1) `agency' means an Executive agency under section 105,
but does not include the General Accounting Office;
``(2) `employee' includes--
``(A) an individual paid under a statutory pay
system defined in section 5302(1);
``(B) a prevailing rate employee, as defined in
section 5342(a)(2); and
``(C) a category of employees included by the Office
of Personnel Management following the review of an
agency plan under section 5403(b)(1);
but does not include--
``(i) an individual paid at an annual rate of basic
pay for a level of the Executive Schedule, under
subchapter II of chapter 53, or at a rate provided for
one of those levels under another provision of law;
``(ii) a member of the Senior Executive Service paid
under subchapter VIII of chapter 53, or an equivalent
system;
``(iii) an administrative law judge paid under
section 5372;
``(iv) a contract appeals board member paid under
section 5372a;
``(v) an administrative appeals judge paid under
section 5372b; and
``(vi) an individual in a position which is excepted
from the competitive service because of its
confidential, policy-determining, policy-making, or
policy-advocating character; and
``(3) `Office' means the Office of Personnel Management.

``Sec. 5403. Human Capital Performance Fund

``(a) [NOTE: Establishment.] There is hereby established the Human
Capital Performance Fund, to be administered by the Office for the
purpose of this chapter.

``(b)(1)(A) An agency shall submit a plan as described in section
5406 to be eligible for consideration by the Office for an allocation

[[Page 1643]]
117 STAT. 1643

under this section. An allocation shall be made only upon approval by
the Office of an agency's plan.
``(B)(i) After the reduction for training required under section
5408, ninety percent of the remaining amount appropriated to the Fund
may be allocated by the Office to the agencies. Of the amount to be
allocated, an agency's pro rata distribution may not exceed its pro rata
share of Executive branch payroll.
``(ii) If the Office does not allocate an agency's full pro rata
share, the undistributed amount remaining from that share will become
available for distribution to other agencies, as provided in
subparagraph (C).
``(C)(i) After the reduction for training under section 5408, ten
percent of the remaining amount appropriated to the Fund, as well as the
amount of the pro rata share not distributed because of an agency's
failure to submit a satisfactory plan, shall be allocated among agencies
with exceptionally high-quality plans.
``(ii) An agency with an exceptionally high-quality plan is eligible
to receive an additional distribution in addition to its full pro rata
distribution.
``(2) Each agency is required to provide to the Office such payroll
information as the Office specifies necessary to determine the Executive
branch payroll.

``Sec. 5404. Human capital performance payments

``(a)(1) Notwithstanding any other provision of law, the Office may
authorize an agency to provide human capital performance payments to
individual employees based on exceptional performance contributing to
the achievement of the agency mission.
``(2) The number of employees in an agency receiving payments from
the Fund, in any year, shall not be more than the number equal to 15
percent of the agency's average total civilian full- and part-time
permanent employment for the previous fiscal year.
``(b)(1) A human capital performance payment provided to an
individual employee from the Fund, in any year, shall not exceed 10
percent of the employee's rate of basic pay.
``(2) The aggregate of an employee's rate of basic pay, adjusted by
any locality-based comparability payments, and human capital performance
pay, as defined by regulation, may not exceed the rate of basic pay for
Executive Level IV in any year.
``(3) Any human capital performance payment provided to an employee
from the Fund is in addition to any annual pay adjustment (under section
5303 or any similar provision of law) and any locality-based
comparability payment that may apply.
``(c) No monies from the Human Capital Performance Fund may be used
to pay for a new position, for other performance-related payments, or
for recruitment or retention incentives paid under sections 5753 and
5754.
``(d)(1) An agency may finance initial human capital performance
payments using monies from the Human Capital Performance Fund, as
available.
``(2) In subsequent years, continuation of previously awarded human
capital performance payments shall be financed from other agency funds
available for salaries and expenses.

``Sec. 5405. Regulations

``The Office shall issue such regulations as it determines to be
necessary for the administration of this chapter, including the

[[Page 1644]]
117 STAT. 1644

administration of the Fund. The Office's regulations shall include
criteria governing--
``(1) an agency plan under section 5406;
``(2) the allocation of monies from the Fund to agencies;
``(3) the nature, extent, duration, and adjustment of, and
approval processes for, payments to individual employees under
this chapter;
``(4) the relationship to this chapter of agency performance
management systems;
``(5) training of supervisors, managers, and other
individuals involved in the process of making performance
distinctions; and
``(6) the circumstances under which funds may be allocated
by the Office to an agency in amounts below or in excess of the
agency's pro rata share.

``Sec. 5406. Agency plan

``(a) To be eligible for consideration by the Office for an
allocation under this section, an agency shall--
``(1) develop a plan that incorporates the following
elements:
``(A) adherence to merit principles set forth in
section 2301;
``(B) a fair, credible, and transparent employee
performance appraisal system;
``(C) a link between the pay-for-performance system,
the employee performance appraisal system, and the
agency's strategic plan;
``(D) a means for ensuring employee involvement in
the design and implementation of the system;
``(E) adequate training and retraining for
supervisors, managers, and employees in the
implementation and operation of the pay-for-performance
system;
``(F) a process for ensuring ongoing performance
feedback and dialogue between supervisors, managers, and
employees throughout the appraisal period, and setting
timetables for review;
``(G) effective safeguards to ensure that the
management of the system is fair and equitable and based
on employee performance; and
``(H) a means for ensuring that adequate agency
resources are allocated for the design, implementation,
and administration of the pay-for-performance system;
``(2) upon approval, receive an allocation of funding from
the Office;
``(3) make payments to individual employees in accordance
with the agency's approved plan; and
``(4) provide such information to the Office regarding
payments made and use of funds received under this section as
the Office may specify.

``(b) The Office, in consultation with the Chief Human Capital
Officers Council, shall review and approve an agency's plan before the
agency is eligible to receive an allocation of funding from the Office.
``(c) The Chief Human Capital Officers Council shall include in its
annual report to Congress under section 1303(d) of the Homeland Security
Act of 2002 an evaluation of the formulation and implementation of
agency performance management systems.

[[Page 1645]]
117 STAT. 1645

``Sec. 5407. Nature of payment

``Any payment to an employee under this section shall be part of the
employee's basic pay for the purposes of subchapter III of chapter 83,
and chapters 84 and 87, and for such other purposes (other than chapter
75) as the Office shall determine by regulation.

``Sec. 5408. Appropriations

``There is authorized to be appropriated $500,000,000 for fiscal
year 2004, and, for each subsequent fiscal year, such sums as may be
necessary to carry out the provisions of this chapter. In the first year
of implementation, up to 10 percent of the amount appropriated to the
Fund shall be available to participating agencies to train supervisors,
managers, and other individuals involved in the appraisal process on
using performance management systems to make meaningful distinctions in
employee performance and on the use of the Fund.''.
(b) Clerical Amendment.--The table of chapters for part III of title
5, United States Code, is amended by inserting after the item relating
to chapter 53 the following:

Human Capital Performance Fund                       5401''.

TITLE XII--MATTERS RELATING TO OTHER NATIONS

Subtitle A--Matters Relating to Iraq

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

Subtitle B--Matters Relating to Export Protections

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

Subtitle C--Administrative Requirements and Authorities

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

Subtitle D--Other Reports and Sense of Congress Statements

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

[[Page 1646]]
117 STAT. 1646

Subtitle A--Matters Relating to Iraq

SEC. 1201. MEDICAL ASSISTANCE TO IRAQI CHILDREN INJURED DURING OPERATION
IRAQI FREEDOM.

(a) Assistance.--Subject to subsections (c) and (d), the Secretary
of Defense shall, to the maximum extent practicable, provide all
necessary health care and related support to provide needed medical
assistance to Iraqi children who, as determined by the Secretary of
Defense, were injured during and as a result of Operation Iraqi Freedom.
Such assistance shall be provided in an expeditious manner.
(b) Related Support.--Related support under subsection (a) includes
transportation on aeromedical evacuation aircraft of the Department of
Defense on a space-available basis.
(c) Limitations Relating to Medical Care.--Assistance may be
provided to a child under subsection (a)--
(1) only if adequate treatment from other sources in Iraq or
neighboring countries is not available; and
(2) only after completion of an evaluation by a physician or
other appropriate medical personnel of the United States Armed
Forces.

(d) Limitation Relating to United States Military Operations.--
Assistance may be provided to a child under subsection (a) only if the
provision of such assistance would not adversely affect military
operations of the United States.

SEC. 1202. REPORT ON THE CONDUCT OF OPERATION IRAQI FREEDOM.

(a) Report Required.--(1) [NOTE: Deadline.] Not later than March
31, 2004, the Secretary of Defense shall submit to the congressional
defense committees and the Permanent Select Committee on Intelligence of
the House of Representatives and the Select Committee on Intelligence of
the Senate a report on the preparation for and conduct of military
operations under Operation Iraqi Freedom from March 19, 2003, to May 1,
2003.

(2) The report shall be prepared in consultation with the Chairman
of the Joint Chiefs of Staff, the commander of the United States Central
Command, and such other officers and officials as the Secretary
considers appropriate.
(b) Content.--The report shall include a discussion, with a
particular emphasis on accomplishments and shortcomings and on near-term
and long-term corrective actions to address those shortcomings, of the
following:
(1) The military objectives of the international coalition
conducting Operation Iraqi Freedom, the military strategy
selected to achieve the objectives, and an assessment of the
execution of the military strategy.
(2) The deployment process, including the adaptability of
the process to unforeseen contingencies and changing
requirements.
(3) The effectiveness of the reserve component forces used
in Operation Iraqi Freedom, including the reserve component
mobilization process, the timeliness of mobilization
notification, training, operational effectiveness in theater,
and subsequent demobilization.
(4) The use and performance of major items of United States
military equipment, weapon systems, and munitions

[[Page 1647]]
117 STAT. 1647

(including items classified under special access procedures and
items drawn from prepositioned stocks) and any expected effects
of the experience with the use and performance of those items on
the doctrinal and tactical employment of such items and on plans
for continuing the acquisition of such items.
(5) The effectiveness of joint air operations, including the
doctrine for the employment of close air support in the varied
environments of Operation Iraqi Freedom, and the effectiveness
of attack helicopter operations.
(6) The use of special operations forces, including
operational and intelligence uses classified under special
access procedures.
(7) The scope of logistics support, including support from
other nations.
(8) The incidence of accidental fratricide, together with a
discussion of the effectiveness of the tracking of friendly
forces and of the combat identification systems in mitigating
friendly fire incidents.
(9) The adequacy of spectrum and bandwidth to transmit all
necessary information to operational forces and assets,
including unmanned aerial vehicles, ground vehicles, and
individual soldiers.
(10) The effectiveness of information operations, including
the effectiveness of Commando Solo and other psychological
operations assets, in achieving established objectives, together
with a description of technological and other restrictions on
the use of psychological operations capabilities.
(11) The adequacy of United States and coalition
intelligence and counterintelligence systems and personnel,
including contributions regarding bomb damage assessments and
particularly including United States tactical intelligence and
related activities (TIARA) programs and the Joint Military
Intelligence Program (JMIP), as well as the adequacy of such
support to facilitate searches for weapons of mass destruction.
(12) The rapid insertion and integration, if any, of
developmental but mission-essential equipment during all phases
of the operation.
(13) The most critical lessons learned that could lead to
long-term doctrinal, organizational, and technological changes
(including new equipment, weapons systems, and munitions) and
the probable effects that an implementation of those changes
would have on current visions, goals, and plans for
transformation of the Armed Forces and for joint and combined
operations.
(14) The role of the law of armed conflict in the planning
and execution of military operations by United States forces and
the other coalition forces and the effects on operations of
Iraqi compliance or noncompliance with the law of armed
conflict.
(15) The policies and procedures relating to the media,
including the use of embedded media.
(16) The results of a study, carried out by the Secretary of
Defense, regarding the availability of family support services
provided for the dependents of members of the National Guard and
other reserve components of the Armed Forces who are called or
ordered to active duty.

[[Page 1648]]
117 STAT. 1648

(17) The direct and indirect cost of military operations,
including an assessment of the total incremental expenditures
made by the Department of Defense as a result of Operation Iraqi
Freedom.

(c) Forms of Report.--The report shall be submitted in unclassified
form with a classified annex, if necessary.

SEC. 1203. REPORT ON DEPARTMENT OF DEFENSE SECURITY AND RECONSTRUCTION
ACTIVITIES IN IRAQ.

(a) Report Required.--Not [NOTE: Deadline.]  later than 90 days
after the date of the enactment of this Act, the Secretary of Defense
shall submit to Congress a report on the security and reconstruction
activities of the Department of Defense in Iraq.

(b) Report Elements.--The report shall discuss the range of
infrastructure reconstruction, civil administration, humanitarian
assistance, interim governance, and political development activities
undertaken in Iraq by officials of the Department and by those civilians
reporting to the Secretary of Defense and the missions undertaken in
Iraq by United States military forces. In particular, the report shall
include a discussion of the following:
(1) The evolution of the organizational structure of the
civilian groups reporting to the Secretary, including the Office
of Reconstruction and Humanitarian Assistance and the Office of
the Coalition Provisional Authority, on issues of Iraqi
administration and reconstruction and the factors influencing
that evolution.
(2) The relationship of the Department of Defense with other
United States departments and agencies involved in
administration and reconstruction planning and execution in
Iraq.
(3) The relationship of Department of Defense entities,
including the Office of Reconstruction and Humanitarian
Assistance and the Office of the Coalition Provisional
Authority, with intergovernmental and nongovernmental
organizations contributing to the reconstruction and governance
efforts.
(4) Progress made to the date of the report in--
(A) rebuilding Iraqi infrastructure;
(B) providing for the humanitarian needs of the
Iraqi people;
(C) reconstituting the Iraqi governmental
bureaucracy and its provision of services;
(D) developing mechanisms of fully transitioning
Iraq to representative self-government; and
(E) recruiting, training, and fielding Iraqi police
and military forces.
(5) Progress made to the date of the report by Department of
Defense civilians and military personnel in accounting for any
Iraqi weapons of mass destruction and associated weapons
capabilities.
(6) Progress made to the date of the report by United States
military personnel in providing security in Iraq and in
transferring security functions to a reconstituted Iraqi police
force and military.
(7) The Secretary's assessment of the scope of the ongoing
needed commitment of United States military forces and of the
remaining tasks to be completed by Department of Defense
civilian personnel in the governance and reconstruction areas,

[[Page 1649]]
117 STAT. 1649

including an estimate of the total expenditures the Department
of Defense expects to make for security and reconstruction
activities in Iraq.
(8) The Secretary's assessment of the effect that the United
States military presence in Iraq will have on replacement and
unit rotation policies, including the overall effect on global
United States military deployments.

SEC. 1204. [NOTE: 10 USC 113 note.] REPORT ON ACQUISITION BY IRAQ OF
ADVANCED WEAPONS.

(a) Report.--Not [NOTE: Deadline.]  later than one year after the
date of the enactment of this Act, the Secretary of Defense shall submit
to the Committees on Armed Services and Foreign Relations of the Senate
and the Committees on Armed Services and International Relations of the
House of Representatives a report on the acquisition by Iraq of weapons
of mass destruction and associated delivery systems and the acquisition
by Iraq of advanced conventional weapons.

(b) Matters To Be Included.--The report shall include the following:
(1) A description of any materials, technology, and know-how
that Iraq was able to obtain for its nuclear, chemical,
biological, ballistic missile, and unmanned aerial vehicle
programs, and advanced conventional weapons programs, from 1979
through April 2003 from entities (including Iraqi citizens)
outside of Iraq, as well as a description of how Iraq obtained
these capabilities from those entities.
(2) An assessment of the degree to which United States,
foreign, and multilateral export control regimes prevented
acquisition by Iraq of weapons of mass destruction-related
technology and materials and advanced conventional weapons and
delivery systems since the commencement of international
inspections in Iraq.
(3) An assessment of the effectiveness of United Nations
sanctions at halting the flow of militarily-useful contraband to
Iraq from 1991 until the end of Operation Iraqi Freedom.
(4) An assessment of how Iraq was able to evade
International Atomic Energy Agency and United Nations
inspections regarding chemical, nuclear, biological, and missile
weapons and related capabilities.
(5) Identification and a catalog of the entities and
countries that transferred militarily useful contraband and
items described pursuant to paragraph (1) to Iraq between 1991
and the end of major combat operations of Operation Iraqi
Freedom on May 1, 2003, and the nature of that contraband and of
those items.

(c) Form of Report.--The report shall be submitted in unclassified
form with a classified annex, if necessary.

SEC. 1205. SENSE OF CONGRESS ON USE OF SMALL BUSINESSES, MINORITY-OWNED
BUSINESSES, AND WOMEN-OWNED BUSINESSES IN EFFORTS TO REBUILD
IRAQ.

It is the sense of Congress that the Secretary of Defense should
ensure that outreach procedures are in place to provide information to
small businesses, minority-owned businesses, and women-owned businesses
regarding Department of Defense requirements and contract opportunities
for the rebuilding of Iraq.

[[Page 1650]]
117 STAT. 1650

Subtitle B--Matters Relating to Export Protections

SEC. 1211. [NOTE: 50 USC app. 2404 note.] REVIEW OF EXPORT PROTECTIONS
FOR MILITARY SUPERIORITY RESOURCES.

(a) Review Required.--The Secretary of Defense shall carry out a
review--
(1) to identify goods or technology (as defined in section
16 of the Export Administration Act of 1979 (50 U.S.C. App.
2415)) that, if obtained by a potential adversary, could
significantly undermine the military superiority or qualitative
military advantage of the United States over potential
adversaries or otherwise contribute to the acquisition of
weapons of mass destruction and their delivery systems; and
(2) to determine whether any of the items or technologies
identified under paragraph (1) are not currently controlled for
export purposes on either the Commerce Control List or the
United States Munitions List.

(b) Annual Reports.--(1) [NOTE: Deadlines.] Not later than March
1, 2004, the Secretary of Defense shall submit to the Committee on Armed
Services of the Senate and the Committee on Armed Services of the House
of Representatives an unclassified report, with a classified annex as
necessary, on the results of the review under subsection (a).

(2) For each of the next two years after the submission of the
report under paragraph (1), the Secretary shall submit to those
committees an update on that report. Such updates shall be submitted not
later than March 1, 2005, and not later than March 1, 2006.

SEC. 1212. REPORT ON DEPARTMENT OF DEFENSE COSTS RELATING TO NATIONAL
SECURITY CONTROLS ON SATELLITE EXPORTS.

(a) Study.--The Inspector General of the Department of Defense shall
conduct a study of the costs incurred by the Department of Defense for
each fiscal year from fiscal year 1999 through fiscal year 2003 relating
to national security controls on satellite exports. As part of such
study, the Inspector General shall identify for each such fiscal year
the amounts expended by the Department of Defense (1) for the monitoring
of launches of satellites and related items in a foreign country
pursuant to section 1514 of the Strom Thurmond National Defense
Authorization Act for Fiscal Year 1999 (Public Law 105-261; 22 U.S.C.
2778 note), and (2) in connection with applications for licenses for the
export of satellites and related items (as that term is defined in
section 1516 of that Act).
(b) [NOTE: Deadline.] Report.--Not later than April 1, 2004, the
Inspector General shall submit to the Committees on Armed Services of
the Senate and the House of Representatives a report on the study under
subsection (a). The report shall include the following:
(1) An identification and assessment of the costs referred
to in subsection (a), shown in the aggregate and separately, by
fiscal year and by clauses (1) and (2) of that subsection.
(2) A review of the costs referred to in clause (1) of
subsection (a) for which the Department of Defense has been
reimbursed by the person or entity receiving the satellite
launch

[[Page 1651]]
117 STAT. 1651

monitoring services involved, including the extent to which
indirect costs were included in such reimbursement.

Subtitle C--Administrative Requirements and Authorities

SEC. 1221. AUTHORITY TO USE FUNDS FOR PAYMENT OF COSTS OF ATTENDANCE OF
FOREIGN VISITORS UNDER REGIONAL DEFENSE COUNTERTERRORISM
FELLOWSHIP PROGRAM.

(a) Authority To Use Funds.--(1) Subchapter I of chapter 134 of
title 10, United States Code, is amended by adding at the end the
following new section:

``Sec. 2249c. Authority to use appropriated funds for costs of
attendance of foreign visitors under Regional
Defense Counterterrorism Fellowship Program

``(a) Authority To Use Funds.--Under regulations prescribed by the
Secretary of Defense, funds appropriated to the Department of Defense
may be used to pay any costs associated with the attendance of foreign
military officers, ministry of defense officials, or security officials
at United States military educational institutions, regional centers,
conferences, seminars, or other training programs conducted under the
Regional Defense Counterterrorism Fellowship Program, including costs of
transportation and travel and subsistence costs.
``(b) Limitation.--The total amount of funds used under the
authority in subsection (a) in any fiscal year may not exceed
$20,000,000.
``(c) Annual [NOTE: Deadline.] Report.--Not later than December 1
of each year, the Secretary of Defense shall submit to Congress a report
on the administration of this section during the fiscal year ended in
such year. The report shall include the following matters:
``(1) A complete accounting of the expenditure of
appropriated funds for purposes authorized under subsection (a),
including--
``(A) the countries of the foreign officers and
officials for whom costs were paid; and
``(B) for each such country, the total amount of the
costs paid.
``(2) The training courses attended by the foreign officers
and officials, including a specification of which, if any,
courses were conducted in foreign countries.
``(3) An assessment of the effectiveness of the Regional
Defense Counterterrorism Fellowship Program in increasing the
cooperation of the governments of foreign countries with the
United States in the global war on terrorism.
``(4) A discussion of any actions being taken to improve the
program.''.

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

``2249c. Authority to use appropriated funds for costs of attendance of
foreign visitors under Regional Defense Counterterrorism
Fellowship Program.''.

(b) Notification of [NOTE: Deadline. 10 USC 2249c
note.] Congress.--Not later than December 1, 2003, the Secretary of
Defense shall--

[[Page 1652]]
117 STAT. 1652

(1) prescribe the final regulations for carrying out section
2249c of title 10, United States Code, as added by subsection
(a); and
(2) notify the congressional defense committees of the
prescription of such regulations.

SEC. 1222. RECOGNITION OF SUPERIOR NONCOMBAT ACHIEVEMENTS OR PERFORMANCE
BY MEMBERS OF FRIENDLY FOREIGN FORCES AND OTHER FOREIGN
NATIONALS.

(a) Authority.--Chapter 53 of title 10, United States Code, is
amended by inserting after section 1051a the following new section:

``Sec. 1051b. Bilateral or regional cooperation programs: awards and
mementos to recognize superior noncombat
achievements or performance

``(a) General Authority.--The Secretary of Defense may present
awards and mementos purchased with funds appropriated for operation and
maintenance of the armed forces to recognize superior noncombat
achievements or performance by members of friendly foreign forces and
other foreign nationals that significantly enhance or support the
National Security Strategy of the United States.
``(b) Activities That May Be Recognized.--Activities that may be
recognized under subsection (a) include superior achievement or
performance that--
``(1) plays a crucial role in shaping the international
security environment in ways that protect and promote United
States interests;
``(2) supports or enhances United States overseas presence
and peacetime engagement activities, including defense
cooperation initiatives, security assistance training and
programs, and training and exercises with the armed forces;
``(3) helps to deter aggression and coercion, build
coalitions, and promote regional stability; or
``(4) serves as a role model for appropriate conduct by
military forces in emerging democracies.

``(c) Limitation.--Expenditures for the purchase or production of
mementos for award under this section may not exceed the minimal value
in effect under section 7342(a)(5) of title 5.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
1051a the following new item:

``1051b. Bilateral or regional cooperation programs: awards and mementos
to recognize superior noncombat achievements or
performance.''.

SEC. 1223. [NOTE: 10 USC 113 note.] EXPANSION OF AUTHORITY TO WAIVE
CHARGES FOR COSTS OF ATTENDANCE AT GEORGE C. MARSHALL
EUROPEAN CENTER FOR SECURITY STUDIES.

Section 1306(b)(1) of the National Defense Authorization Act for
Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2892) is amended by
striking ``of cooperation partner states of the North Atlantic Council
or the Partnership for Peace'' and inserting ``from states located in
Europe or the territory of the former Soviet Union''.

[[Page 1653]]
117 STAT. 1653

SEC. 1224. AUTHORITY FOR CHECK CASHING AND CURRENCY EXCHANGE SERVICES TO
BE PROVIDED TO FOREIGN MILITARY MEMBERS PARTICIPATING IN
CERTAIN ACTIVITIES WITH UNITED STATES FORCES.

(a) Authority.--Subsection (b) of section 3342 of title 31, United
States Code, is amended by adding at the end the following new
paragraph:
``(8) A member of the military forces of an allied or
coalition nation who is participating in a combined operation,
combined exercise, or combined humanitarian or peacekeeping
mission with the Armed Forces of the United States, but--
``(A) only if--
``(i) such disbursing official action for
members of the military forces of that nation is
approved by the senior United States military
commander assigned to that operation, exercise, or
mission; and
``(ii) that nation has guaranteed payment for
any deficiency resulting from such disbursing
official action; and
``(B) in the case of negotiable instruments, only
for a negotiable instrument drawn on a financial
institution located in the United States or on a foreign
branch of such an institution.''.

(b) Technical Amendments.--That subsection is further amended--
(1) by striking ``only for--'' in the matter preceding
paragraph (1) and inserting ``only for the following:'';
(2) by striking ``an'' at the beginning of paragraph (1) and
inserting ``An'';
(3) by striking ``personnel'' in paragraphs (2) and (6) and
inserting ``Personnel'';
(4) by striking ``a'' at the beginning of paragraphs (3),
(4), (5), and (7) and inserting ``A'';
(5) by striking the semicolon at the end of paragraphs (1)
through (5) and inserting a period;
(6) by striking ``; or'' at the end of paragraph (6) and
inserting a period; and
(7) by striking ``1752(1))'' in paragraph (7) and inserting
``1752(1)))''.

SEC. 1225. DEPOT MAINTENANCE AND REPAIR WORK ON CERTAIN TYPES OF TRAINER
AIRCRAFT TO BE TRANSFERRED TO FOREIGN COUNTRIES AS EXCESS
AIRCRAFT.

(a) Depot Maintenance and Repair Work Before Transfer.--Before an
excess trainer aircraft of a type specified in subsection (b) is
transferred to a foreign country for the purpose of flight operations by
that country, the Secretary of Defense shall make all reasonable efforts
to ensure that the aircraft receives necessary depot maintenance and
repair work and that such work is performed in the United States.
(b) Covered Types of Aircraft.--Subsection (a) applies to the
following types of trainer aircraft:
(1) T-2 Buckeye aircraft.
(2) T-37 Tweet aircraft.

(c) Work To Be Performed at no Cost to DOD.--Any work referred to in
subsection (a) shall be performed at no cost to the Department of
Defense.

[[Page 1654]]
117 STAT. 1654

Subtitle D--Other Reports and Sense of Congress Statements

SEC. 1231. [NOTE: 22 USC 1928 note.] ANNUAL REPORT ON THE NATO PRAGUE
CAPABILITIES COMMITMENT AND THE NATO RESPONSE FORCE.

(a) Findings.--Congress makes the following findings:
(1) At the meeting of the North Atlantic Council held in
Prague in November 2002, the heads of states and governments of
the North Atlantic Treaty Organization (NATO) launched a Prague
Capabilities Commitment and decided to create a NATO Response
Force.
(2) The Prague Capabilities Commitment is part of the
continuing NATO effort to improve and develop new military
capabilities for modern warfare in a high-threat environment. As
part of this commitment, individual NATO allies have made firm
and specific political commitments to improve their capabilities
in the areas of--
(A) chemical, biological, radiological, and nuclear
defense;
(B) intelligence, surveillance, and target
acquisition;
(C) air-to-ground surveillance;
(D) command, control, and communications;
(E) combat effectiveness, including precision guided
munitions and suppression of enemy air defenses;
(F) strategic air and sea lift;
(G) air-to-air refueling; and
(H) deployable combat support and combat service
support units.
(3) The NATO Response Force is envisioned to be a
technologically advanced, flexible, deployable, interoperable,
and sustainable force that includes land, sea, and air elements
ready to move quickly to wherever needed, as determined by the
North Atlantic Council. The NATO Response Force is also intended
to be a catalyst for focusing and promoting improvements in
NATO's military capabilities. It is expected to have initial
operational capability by October 2004, and full operational
capability by October 2006.

(b) Annual Report.--(1) Not [NOTE: Deadline.]  later than January
31 of each year through 2008, the Secretary of Defense shall submit to
the congressional committees specified in paragraph (5) a report, to be
prepared in consultation with the Secretary of State, on implementation
of the Prague Capabilities Commitment and development of the NATO
Response Force by the member nations of the North Atlantic Treaty
Organization (NATO).

(2) The annual report under this subsection shall include the
following matters:
(A) A description of the actions taken by NATO as a whole
and by each member nation of NATO other than the United States
to further the Prague Capabilities Commitment, including any
actions taken to improve capability shortfalls in the areas
identified for improvement.
(B) A description of the actions taken by NATO as a whole
and by each member nation of NATO, including the United States,
to create the NATO Response Force.
(C) A discussion of the relationship between NATO's efforts
to improve capabilities through the Prague Capabilities

[[Page 1655]]
117 STAT. 1655

Commitment and those of the European Union to enhance European
capabilities through the European Capabilities Action Plan,
including the extent to which they are mutually reinforcing.
(D) A discussion of NATO decisionmaking on the
implementation of the Prague Capabilities Commitment and the
development of the NATO Response Force, including--
(i) an assessment of whether the Prague Capabilities
Commitment and the NATO Response Force are the sole
jurisdiction of the Defense Planning Committee, the
North Atlantic Council, or the Military Committee;
(ii) a description of the circumstances which led to
the defense, military, security, and nuclear decisions
of NATO on matters such as the Prague Capabilities
Commitment and the NATO Response Force being made in
bodies other than the Defense Planning Committee;
(iii) a description of the extent to which any
member that does not participate in the integrated
military structure of NATO contributes to each of the
component committees of NATO, including any and all
committees relevant to the Prague Capabilities
Commitment and the NATO Response Force;
(iv) a description of the extent to which any member
that does not participate in the integrated military
structure of NATO participates in deliberations and
decisions of NATO on resource policy, contribution
ceilings, infrastructure, force structure,
modernization, threat assessments, training, exercises,
deployments, and other issues related to the Prague
Capabilities Commitment or the NATO Response Force;
(v) a description and assessment of the impediments,
if any, that would preclude or limit NATO from
conducting deliberations and making decisions on matters
such as the Prague Capabilities Commitment or the NATO
Response Force solely in the Defense Planning Committee;
and
(vi) the recommendations of the Secretary of Defense
on streamlining defense, military, and security
decisionmaking within NATO relating to the Prague
Capabilities Commitment, the NATO Response Force, and
other matters, including an assessment of the
feasibility and advisability of the greater utilization
of the Defense Planning Committee for such purposes.

(3) In the case of a report under this subsection after the first
such report, the information submitted in such report under any of
clauses (i) through (vi) of subparagraph (D) of paragraph (2) may
consist solely of an update of any information previously submitted
under that clause in a preceding report under this subsection.
(4) Each report under this subsection shall be submitted in
unclassified form, but may also be submitted in classified form if
necessary.
(5) The committees specified in this paragraph are--
(A) the Committee on Armed Services and the Committee on
Foreign Relations of the Senate; and
(B) the Committee on Armed Services and the Committee on
International Relations of the House of Representatives.

[[Page 1656]]
117 STAT. 1656

SEC. 1232. REPORT ON ACTIONS THAT COULD BE TAKEN REGARDING COUNTRIES
THAT INITIATE CERTAIN LEGAL ACTIONS AGAINST UNITED STATES
OFFICIALS OR MEMBERS OF THE ARMED FORCES.

(a) Finding.--Congress finds that actions for or on behalf of a
foreign government that constitute attempts to commence legal
proceedings against, or attempts to compel the appearance of or
production of documents from, any current or former official or employee
of the United States or member of the Armed Forces of the United States
relating to the performance of official duties, other than pursuant to a
status of forces agreement or other international agreement to which the
United States is a party, may have a negative effect on the ability of
the United States to take necessary and timely military action.
(b) Report.--Not [NOTE: Deadline.]  later than 60 days after the
date of the enactment of this Act, the Secretary of Defense shall submit
to Congress a report on appropriate steps that could be taken by the
Department of Defense (such as restrictions on military travel,
limitations on military support and exchange programs, and consideration
of relocating, or limiting funding for, United States or allied military
commands, headquarters, or organizations) to respond to an action by a
foreign government described in subsection (a).

SEC. 1233. SENSE OF CONGRESS ON REDEPLOYMENT OF UNITED STATES FORCES IN
EUROPE.

(a) Findings.--Congress makes the following findings:
(1) In March 1999, in its initial round of expansion, the
North Atlantic Treaty Organization (NATO) admitted Poland, the
Czech Republic, and Hungary to the Alliance.
(2) At the Prague Summit on November 21-22, 2002, the NATO
heads of state and government invited the countries of Bulgaria,
Estonia, Latvia, Lithuania, Romania, Slovakia, and Slovenia to
join the Alliance.
(3) The countries admitted in the initial round of expansion
referred to in paragraph (1) and the seven new invitee nations
referred to in paragraph (2) will in combination significantly
alter the nature of the Alliance.
(4) During the first 50 years of the Alliance, NATO
materially contributed to the security and stability of Western
Europe, bringing peace and prosperity to the member nations.
(5) The expansion of NATO is an opportunity to assist the
invitee nations in gaining the capabilities to ensure peace,
prosperity, and democracy for themselves during the next 50
years of the Alliance.
(6) The military structure and mission of NATO has changed,
no longer being focused on the threat of a Soviet invasion, but
evolving to handle new threats and new missions in the area of
crisis management, peacekeeping, and peace-support in and beyond
the Euro-Atlantic area of operations.

(b) Sense of Congress.--In light of the findings in subsection (a),
it is the sense of Congress that--
(1) the expansion of the North Atlantic Treaty Organization
Alliance and the evolution of the military mission of that
Alliance requires a fundamental reevaluation of the current
posture of United States forces stationed in Europe; and

[[Page 1657]]
117 STAT. 1657

(2) the Secretary of Defense, in consultation with the
Secretary of State, should--
(A) initiate a reevaluation referred to in paragraph
(1); and
(B) in carrying out such a reevaluation, consider a
military posture that takes maximum advantage of basing
and training opportunities in the newly admitted and
invitee states referred to in paragraphs (1) and (2),
respectively, of subsection (a).

SEC. 1234. SENSE OF CONGRESS CONCERNING NAVY PORT CALLS IN ISRAEL.

It is the sense of Congress that--
(1) the United States has invested significant amounts of
funds in expanding the capacity and security of the port of
Haifa, Israel, and the United States Navy should be able to
implement the necessary force protection measures that would
enable it to take advantage of the repair, replenishment, and
communications links available at that port;
(2) the Secretary of Defense and the Secretary of the Navy
should conclude discussions with the Government of Israel and
the Israel Defense Forces to establish appropriate and effective
arrangements to ensure the safety of United States Navy vessels
and personnel during port visits to Haifa, Israel; and
(3) upon such arrangements being made, the United States
Navy should consider resumption of regular port visits to Haifa,
Israel.

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

Sec. 1301. Specification of Cooperative Threat Reduction programs and
funds.
Sec. 1302. Funding allocations.
Sec. 1303. Limitation on use of funds until certain permits obtained.
Sec. 1304. Limitation on use of funds for biological research in the
former Soviet Union.
Sec. 1305. Requirement for on-site managers.
Sec. 1306. Temporary authority to waive limitation on funding for
chemical weapons destruction facility in Russia.
Sec. 1307. Annual certifications on use of facilities being constructed
for Cooperative Threat Reduction projects or activities.
Sec. 1308. Authority to use Cooperative Threat Reduction funds outside
the former Soviet Union.

SEC. 1301. SPECIFICATION OF COOPERATIVE THREAT REDUCTION PROGRAMS AND
FUNDS.

(a) [NOTE: 22 USC 5960 note.] Specification of CTR Programs.--For
purposes of section 301 and other provisions of this Act, Cooperative
Threat Reduction programs are the programs specified in section 1501(b)
of the National Defense Authorization Act for Fiscal Year 1997 (Public
Law 104-201; 110 Stat. 2731; 50 U.S.C. 2362 note).

(b) Fiscal Year 2004 Cooperative Threat Reduction Funds Defined.--As
used in this title, the term ``fiscal year 2004 Cooperative Threat
Reduction funds'' means the funds appropriated pursuant to the
authorization of appropriations in section 301 for Cooperative Threat
Reduction programs.
(c) Availability of Funds.--Funds appropriated pursuant to the
authorization of appropriations in section 301 for Cooperative

[[Page 1658]]
117 STAT. 1658

Threat Reduction programs shall be available for obligation for three
fiscal years.

SEC. 1302. FUNDING ALLOCATIONS.

(a) Funding for Specific Purposes.--Of the $450,800,000 authorized
to be appropriated to the Department of Defense for fiscal year 2004 in
section 301(19) for Cooperative Threat Reduction programs, the following
amounts may be obligated for the purposes specified:
(1) For strategic offensive arms elimination in Russia,
$57,600,000.
(2) For strategic nuclear arms elimination in Ukraine,
$3,900,000.
(3) For nuclear weapons transportation security in Russia,
$23,200,000.
(4) For nuclear weapons storage security in Russia,
$48,000,000.
(5) For activities designated as Other Assessments/
Administrative Support, $13,100,000.
(6) For defense and military contacts, $11,100,000.
(7) For chemical weapons destruction in Russia,
$200,300,000.
(8) For biological weapons proliferation prevention in the
former Soviet Union, $54,200,000.
(9) For weapons of mass destruction proliferation prevention
in the states of the former Soviet Union, $39,400,000.

(b) Report on Obligation or Expenditure of Funds for Other
Purposes.--No fiscal year 2004 Cooperative Threat Reduction funds may be
obligated or expended for a purpose other than a purpose listed in
paragraphs (1) through (9) of subsection (a) until 30 days after the
date that the Secretary of Defense submits to Congress a report on the
purpose for which the funds will be obligated or expended and the amount
of funds to be obligated or expended. Nothing in the preceding sentence
shall be construed as authorizing the obligation or expenditure of
fiscal year 2004 Cooperative Threat Reduction funds for a purpose for
which the obligation or expenditure of such funds is specifically
prohibited under this title or any other provision of law.
(c) Limited Authority To Vary Individual Amounts.--(1) Subject to
paragraphs (2) and (3), in any case in which the Secretary of Defense
determines that it is necessary to do so in the national interest, the
Secretary may obligate amounts appropriated for fiscal year 2004 for a
purpose listed in any of the paragraphs in subsection (a) in excess of
the specific amount authorized for that purpose.
(2) An obligation of funds for a purpose stated in any of the
paragraphs in subsection (a) in excess of the specific amount authorized
for such purpose may be made using the authority provided in paragraph
(1) only after--
(A) [NOTE: Notification.] 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.

[[Page 1659]]
117 STAT. 1659

SEC. 1303. [NOTE: 22 USC 5960.] LIMITATION ON USE OF FUNDS UNTIL
CERTAIN PERMITS OBTAINED.

(a) In General.--The Secretary of Defense shall seek to obtain all
the permits required to complete each phase of construction of a project
under Cooperative Threat Reduction programs before obligating
significant amounts of funding for that phase of the project.
(b) Use of Funds for New Construction Projects.--Except as provided
in subsection (e), with respect to a new construction project to be
carried out by the Department of Defense under Cooperative Threat
Reduction programs, not more than 40 percent of the total costs of the
project may be obligated from Cooperative Threat Reduction funds for any
fiscal year until the Secretary of Defense--
(1) determines the number and type of permits that may be
required for the lifetime of the project in the proposed
location or locations of the project; and
(2) obtains from the State in which the project is to be
located any permits that may be required to begin construction.

(c) Identification of Required Permits for Ongoing Incomplete
Construction [NOTE: Deadline.] Projects.--With respect to an
incomplete construction project carried out by the Department of Defense
under Cooperative Threat Reduction programs, the Secretary shall
identify all the permits that are required for the lifetime of the
project not later than 120 days after the date of the enactment of this
Act.

(d) Use of Funds for Certain Incomplete Construction Projects.--
Except as provided in subsection (e), with respect to an incomplete
construction project carried out by the Department of Defense under
Cooperative Threat Reduction programs for which construction has not yet
commenced as of the date of the enactment of this Act, not more than 40
percent of the total costs of the project may be obligated from
Cooperative Threat Reduction funds for any fiscal year until the
Secretary obtains from the State in which the project is located the
permits required to commence construction on the project.
(e) Exception to Limitations on Use of Funds.--The limitation in
subsection (b) or (d) on the obligation of funds for a construction
project otherwise covered by such subsection shall not apply with
respect to the obligation of funds for a particular project if the
Secretary--
(1) determines that it is necessary in the national interest
to obligate funds for such project; and
(2) submits to the congressional defense committees a
notification of the intent to obligate funds for such project,
together with a complete discussion of the justification for
doing so.

(f) Definitions.--In this section, with respect to a project under
Cooperative Threat Reduction programs:
(1) Incomplete construction project.--The term ``incomplete
construction project'' means a construction project for which
funds have been obligated or expended before the date of the
enactment of this Act and which is not completed as of such
date.
(2) New construction project.--The term ``new construction
project'' means a construction project for which no funds

[[Page 1660]]
117 STAT. 1660

have been obligated or expended as of the date of the enactment
of this Act.
(3) Permit.--The term ``permit'' means any local or national
permit for development, general construction, environmental,
land use, or other purposes that is required for purposes of
major construction in a state of the former Soviet Union in
which the construction project is being or is proposed to be
carried out.

SEC. 1304. LIMITATION ON USE OF FUNDS FOR BIOLOGICAL RESEARCH IN THE
FORMER SOVIET UNION.

(a) Limitation on Use of Funds.--Except as provided in subsection
(b), none of the funds authorized to be appropriated pursuant to section
1302 for biological weapons proliferation prevention may be obligated to
begin any collaborative biodefense research or bioattack early warning
and preparedness project under a Cooperative Threat Reduction program at
a facility in a state of the former Soviet Union until the Secretary of
Defense notifies Congress that the Secretary--
(1) has determined, through access to the facility, that no
offensive biological weapons research prohibited by
international law is being conducted at the facility; and
(2) has determined that appropriate security measures have
begun to be, or will be, put in place at the facility to prevent
theft of dangerous pathogens from the facility.

(b) Availability of Funds for Determinations.--Of the funds referred
to in subsection (a) that are available for projects referred to in that
subsection, up to 25 percent of such funds may be obligated and expended
for purposes of making determinations referred to in that subsection.
(c) Facility Defined.--In this section, the term ``facility'' means
the buildings and areas at a location in which Cooperative Threat
Reduction program work is actually being conducted.

SEC. 1305. [NOTE: 22 USC 5961.] REQUIREMENT FOR ON-SITE MANAGERS.

(a) On-Site Manager Requirement.--Before obligating any Cooperative
Threat Reduction funds for a project described in subsection (b), the
Secretary of Defense shall appoint one on-site manager for that project.
The manager shall be appointed from among employees of the Federal
Government.
(b) Projects Covered.--Subsection (a) applies to a project--
(1) to be located in a state of the former Soviet Union;
(2) which involves dismantlement, destruction, or storage
facilities, or construction of a facility; and
(3) with respect to which the total contribution by the
Department of Defense is expected to exceed $50,000,000.

(c) Duties of On-Site Manager.--The on-site manager appointed under
subsection (a) shall--
(1) develop, in cooperation with representatives from
governments of countries participating in the project, a list of
those steps or activities critical to achieving the project's
disarmament or nonproliferation goals;
(2) establish a schedule for completing those steps or
activities;
(3) meet with all participants to seek assurances that those
steps or activities are being completed on schedule; and
(4) suspend United States participation in a project when a
non-United States participant fails to complete a scheduled

[[Page 1661]]
117 STAT. 1661

step or activity on time, unless directed by the Secretary of
Defense to resume United States participation.

(d) Authority to Manage More Than One Project.--(1) Subject to
paragraph (2), an employee of the Federal Government may serve as on-
site manager for more than one project, including projects at different
locations.
(2) If such an employee serves as on-site manager for more than one
project in a fiscal year, the total cost of the projects for that fiscal
year may not exceed $150,000,000.
(e) Steps or Activities.--Steps or activities referred to in
subsection (c)(1) are those activities that, if not completed, will
prevent a project from achieving its disarmament or nonproliferation
goals, including, at a minimum, the following:
(1) Identification and acquisition of permits (as defined in
section 1303).
(2) Verification that the items, substances, or capabilities
to be dismantled, secured, or otherwise modified are available
for dismantlement, securing, or modification.
(3) Timely provision of financial, personnel, management,
transportation, and other resources.

(f) Notification to Congress.--In any case in which the Secretary of
Defense directs an on-site manager to resume United States participation
in a project under subsection (c)(4), the Secretary shall concurrently
notify Congress of such direction.
(g) Effective Date.--This section shall take effect six months after
the date of the enactment of this Act.

SEC. 1306. TEMPORARY AUTHORITY TO WAIVE LIMITATION ON FUNDING FOR
CHEMICAL WEAPONS DESTRUCTION FACILITY IN RUSSIA.

(a) Temporary Authority.--The conditions described in section 1305
of the National Defense Authorization Act for Fiscal Year 2000 (Public
Law 106-65; 22 U.S.C. 5952 note) shall not apply to the obligation and
expenditure of funds available for obligation during fiscal year 2004
for the planning, design, or construction of a chemical weapons
destruction facility in Russia if the President submits to Congress a
written certification that includes--
(1) a statement as to why the waiver of the conditions is
important to the national security interests of the United
States;
(2) a full and complete justification for the waiver of the
conditions; and
(3) a plan to promote a full and accurate disclosure by
Russia regarding the size, content, status, and location of its
chemical weapons stockpile.

(b) Expiration.--The authority in subsection (a) shall expire on
September 30, 2004.

SEC. 1307. [NOTE: 22 USC 5962.] ANNUAL CERTIFICATIONS ON USE OF
FACILITIES BEING CONSTRUCTED FOR COOPERATIVE THREAT
REDUCTION PROJECTS OR ACTIVITIES.

(a) Certification on Use of Facilities Being Constructed.--Not later
than the first Monday of February each year, the Secretary of Defense
shall submit to the congressional defense committees a certification for
each facility for a Cooperative Threat Reduction project or activity for
which construction occurred during the preceding fiscal year on matters
as follows:

[[Page 1662]]
117 STAT. 1662

(1) Whether or not such facility will be used for its
intended purpose by the government of the state of the former
Soviet Union in which the facility is constructed.
(2) Whether or not the government of such state remains
committed to the use of such facility for its intended purpose.
(3) Whether those actions needed to ensure security at the
facility, including secure transportation of any materials,
substances, or weapons to, from, or within the facility, have
been taken.

(b) Applicability.--Subsection (a) shall apply to--
(1) any facility the construction of which commences on or
after the date of the enactment of this Act; and
(2) any facility the construction of which is ongoing as of
that date.

SEC. 1308. [NOTE: 22 USC 5963.] AUTHORITY TO USE COOPERATIVE THREAT
REDUCTION FUNDS OUTSIDE THE FORMER SOVIET UNION.

(a) Authority.--Subject to the provisions of this section, the
President may obligate and expend Cooperative Threat Reduction funds for
a fiscal year, and any Cooperative Threat Reduction funds for a fiscal
year before such fiscal year that remain available for obligation, for a
proliferation threat reduction project or activity outside the states of
the former Soviet Union if the President determines each of the
following:
(1) That such project or activity will--
(A)(i) assist the United States in the resolution of
a critical emerging proliferation threat; or
(ii) permit the United States to take advantage of
opportunities to achieve long-standing nonproliferation
goals; and
(B) be completed in a short period of time.
(2) That the Department of Defense is the entity of the
Federal Government that is most capable of carrying out such
project or activity.

(b) Scope of Authority.--The authority in subsection (a) to obligate
and expend funds for a project or activity includes authority to provide
equipment, goods, and services for such project or activity utilizing
such funds, but does not include authority to provide cash directly to
such project or activity.
(c) Limitation on Total Amount of Obligation.--The amount that may
be obligated in a fiscal year under the authority in subsection (a) may
not exceed $50,000,000.
(d) Limitation on Availability of Funds.--(1) The President may not
obligate funds for a project or activity under the authority in
subsection (a) until the President makes each determination specified in
that subsection with respect to such project or activity.
(2) Not later than 10 days after obligating funds under the
authority in subsection (a) for a project or activity, the President
shall notify Congress in writing of the determinations made under
paragraph (1) with respect to such project or activity, together with--
(A) a justification for such determinations; and
(B) a description of the scope and duration of such project
or activity.

(e) Additional Limitations and Requirements.--Except as otherwise
provided in subsections (a) and (b), the exercise of the

[[Page 1663]]
117 STAT. 1663

authority in subsection (a) shall be subject to any requirement or
limitation under another provision of law as follows:
(1) Any requirement for prior notice or other reports to
Congress on the use of Cooperative Threat Reduction funds or on
Cooperative Threat Reduction projects or activities.
(2) Any limitation on the obligation or expenditure of
Cooperative Threat Reduction funds.
(3) Any limitation on Cooperative Threat Reduction projects
or activities.

TITLE XIV--SERVICES [NOTE: Services Acquisition Reform Act of 2003.]
ACQUISITION REFORM

Sec. 1401. Short title.

Subtitle A--Acquisition Workforce and Training

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

Subtitle B--Adaptation of Business Acquisition Practices

Part I--Adaptation of Business Management Practices

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

Part II--Other Acquisition Improvements

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

Subtitle C--Acquisitions of Commercial Items

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

Subtitle D--Other Matters

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

SEC. 1401. [NOTE: 41 USC 401 note.] SHORT TITLE.

This title may be cited as the ``Services Acquisition Reform Act of
2003''.

Subtitle A--Acquisition Workforce and Training

SEC. 1411. DEFINITION OF ACQUISITION.

Section 4 of the Office of Federal Procurement Policy Act (41 U.S.C.
403) is amended by adding at the end the following:
``(16) The term `acquisition'--
``(A) means the process of acquiring, with
appropriated funds, by contract for purchase or lease,
property or services (including construction) that
support the missions and

[[Page 1664]]
117 STAT. 1664

goals of an executive agency, from the point at which
the requirements of the executive agency are established
in consultation with the chief acquisition officer of
the executive agency; and
``(B) includes--
``(i) the process of acquiring property or
services that are already in existence, or that
must be created, developed, demonstrated, and
evaluated;
``(ii) the description of requirements to
satisfy agency needs;
``(iii) solicitation and selection of sources;
``(iv) award of contracts;
``(v) contract performance;
``(vi) contract financing;
``(vii) management and measurement of contract
performance through final delivery and payment;
and
``(viii) technical and management functions
directly related to the process of fulfilling
agency requirements by contract.''.

SEC. 1412. ACQUISITION WORKFORCE TRAINING FUND.

(a) [NOTE: 41 USC 433 note.] Purposes.--The purposes of this
section are to ensure that the Federal acquisition workforce--
(1) adapts to fundamental changes in the nature of Federal
Government acquisition of property and services associated with
the changing roles of the Federal Government; and
(2) acquires new skills and a new perspective to enable it
to contribute effectively in the changing environment of the
21st century.

(b) Establishment of Fund.--Section 37 of the Office of Federal
Procurement Policy Act (41 U.S.C. 433) is amended by adding at the end
of subsection (h) the following new paragraph:
``(3) Acquisition workforce training fund.--(A) The
Administrator of General Services shall establish an acquisition
workforce training fund. The Administrator shall manage the fund
through the Federal Acquisition Institute to support the
training of the acquisition workforce of the executive agencies
other than the Department of Defense. The Administrator shall
consult with the Administrator for Federal Procurement Policy in
managing the fund.
``(B) There shall be credited to the acquisition workforce
training fund 5 percent of the fees collected by executive
agencies (other than the Department of Defense) under the
following contracts:
``(i) Governmentwide task and delivery-order
contracts entered into under sections 303H and 303I of
the Federal Property and Administrative Services Act of
1949 (41 U.S.C. 253h and 253i).
``(ii) Governmentwide contracts for the acquisition
of information technology as defined in section 11101 of
title 40, United States Code, and multiagency
acquisition contracts for such technology authorized by
section 11314 of such title.
``(iii) Multiple-award schedule contracts entered
into by the Administrator of General Services.
``(C) The head of an executive agency that administers a
contract described in subparagraph (B) shall remit to the

[[Page 1665]]
117 STAT. 1665

General Services Administration the amount required to be
credited to the fund with respect to such contract at the end of
each quarter of the fiscal year.
``(D) The Administrator of General Services, through the
Office of Federal Acquisition Policy, shall ensure that funds
collected for training under this section are not used for any
purpose other than the purpose specified in subparagraph (A).
``(E) Amounts credited to the fund shall be in addition to
funds requested and appropriated for education and training
referred to in paragraph (1).
``(F) Amounts credited to the fund shall remain available to
be expended only in the fiscal year for which credited and the
two succeeding fiscal years.
``(G) This paragraph shall cease to be effective five years
after the date of the enactment of the National Defense
Authorization Act for Fiscal Year 2004.''.

(c) [NOTE: 41 USC 433 note.] Exception.--This section and the
amendments made by this section shall not apply to the acquisition
workforce of the Department of Defense. Fees charged to the Department
of Defense under contracts covered by section 37(h)(3) of the Office of
Federal Procurement Policy Act, as added by subsection (b), shall be
reduced by 5 percent to reflect the Department's nonparticipation in the
acquisition workforce training fund established by such section.

SEC. 1413. [NOTE: 41 USC 433 note.] ACQUISITION WORKFORCE RECRUITMENT
PROGRAM.

(a) Determination of Shortage Category Positions.--For purposes of
sections 3304, 5333, and 5753 of title 5, United States Code, the head
of a department or agency of the United States (other than the Secretary
of Defense) may determine, under regulations prescribed by the Office of
Personnel Management, that certain Federal acquisition positions (as
described in section 37(g)(1)(A) of the Office of Federal Procurement
Policy Act (41 U.S.C. 433(g)(1)(A)) are shortage category positions in
order to use the authorities in those sections to recruit and appoint
highly qualified persons directly to such positions in the department or
agency.
(b) Termination of Authority.--The head of a department or agency
may not appoint a person to a position of employment under this section
after September 30, 2007.
(c) Report.--Not later than March 31, 2007, the Director of the
Office of Personnel Management, in consultation with the Administrator
for Federal Procurement Policy, shall submit to Congress a report on the
implementation of this section. The report shall include--
(1) a list of the departments and agencies that exercised
the authority provided in this section, and whether the exercise
of the authority was carried out in accordance with the
regulations prescribed by the Office of Personnel Management;
(2) the Director's assessment of the efficacy of the
exercise of the authority provided in this section in attracting
employees with unusually high qualifications to the acquisition
workforce; and
(3) any recommendations considered appropriate by the
Director on whether the authority to carry out the program
should be extended.

[[Page 1666]]
117 STAT. 1666

SEC. 1414. [NOTE: 41 USC 433 note.] ARCHITECTURAL AND ENGINEERING
ACQUISITION WORKFORCE.

The Administrator for Federal Procurement Policy, in consultation
with the Secretary of Defense, the Administrator of General Services,
and the Director of the Office of Personnel Management, shall develop
and implement a plan to ensure that the Federal Government maintains the
necessary capability with respect to the acquisition of architectural
and engineering services to--
(1) ensure that Federal Government employees have the
expertise to determine agency requirements for such services;
(2) establish priorities and programs (including acquisition
plans);
(3) establish professional standards;
(4) develop scopes of work; and
(5) award and administer contracts for such services.

Subtitle B--Adaptation of Business Acquisition Practices

PART I--ADAPTATION OF BUSINESS MANAGEMENT PRACTICES

SEC. 1421. CHIEF ACQUISITION OFFICERS.

(a) Appointment of Chief Acquisition Officers.--(1) Section 16 of
the Office of Federal Procurement Policy Act (41 U.S.C. 414) is amended
to read as follows:

``SEC. 16. CHIEF ACQUISITION OFFICERS AND SENIOR PROCUREMENT EXECUTIVES.

``(a) Establishment of Agency Chief Acquisition Officers.--(1) The
head of each executive agency described in section 901(b)(1) (other than
the Department of Defense) or section 901(b)(2)(C) of title 31, United
States Code, with a Chief Financial Officer appointed or designated
under section 901(a) of such title shall appoint or designate a non-
career employee as Chief Acquisition Officer for the agency, who shall--
``(A) have acquisition management as that official's primary
duty; and
``(B) advise and assist the head of the executive agency and
other agency officials to ensure that the mission of the
executive agency is achieved through the management of the
agency's acquisition activities.

``(b) Authority and Functions of Agency Chief Acquisition
Officers.--The functions of each Chief Acquisition Officer shall
include--
``(1) monitoring the performance of acquisition activities
and acquisition programs of the executive agency, evaluating the
performance of those programs on the basis of applicable
performance measurements, and advising the head of the executive
agency regarding the appropriate business strategy to achieve
the mission of the executive agency;
``(2) increasing the use of full and open competition in the
acquisition of property and services by the executive agency by
establishing policies, procedures, and practices that ensure
that the executive agency receives a sufficient number of sealed

[[Page 1667]]
117 STAT. 1667

bids or competitive proposals from responsible sources to
fulfill the Government's requirements (including performance and
delivery schedules) at the lowest cost or best value considering
the nature of the property or service procured;
``(3) increasing appropriate use of performance-based
contracting and performance specifications;
``(4) making acquisition decisions consistent with all
applicable laws and establishing clear lines of authority,
accountability, and responsibility for acquisition
decisionmaking within the executive agency;
``(5) managing the direction of acquisition policy for the
executive agency, including implementation of the unique
acquisition policies, regulations, and standards of the
executive agency;
``(6) developing and maintaining an acquisition career
management program in the executive agency to ensure that there
is an adequate professional workforce; and
``(7) as part of the strategic planning and performance
evaluation process required under section 306 of title 5, United
States Code, and sections 1105(a)(28), 1115, 1116, and 9703 of
title 31, United States Code--
``(A) assessing the requirements established for
agency personnel regarding knowledge and skill in
acquisition resources management and the adequacy of
such requirements for facilitating the achievement of
the performance goals established for acquisition
management;
``(B) in order to rectify any deficiency in meeting
such requirements, developing strategies and specific
plans for hiring, training, and professional
development; and
``(C) reporting to the head of the executive agency
on the progress made in improving acquisition management
capability.

``(c) Senior Procurement Executive.--(1) The head of each executive
agency shall designate a senior procurement executive who shall be
responsible for management direction of the procurement system of the
executive agency, including implementation of the unique procurement
policies, regulations, and standards of the executive agency.
``(2) In the case of an executive agency for which a Chief
Acquisition Officer has been appointed or designated under subsection
(a), the head of such executive agency shall either--
``(A) designate the Chief Acquisition Officer as the senior
procurement executive for the executive agency; or
``(B) ensure that the senior procurement executive
designated for the executive agency under paragraph (1) reports
directly to the Chief Acquisition Officer without intervening
authority.''.

(2) The item relating to section 16 in the table of contents in
section 1(b) of such Act is amended to read as follows:

``Sec. 16. Chief Acquisition Officers and senior procurement
executives.''.

(b) Technical Correction.--Section 1115(a) of title 31, United
States Code, is amended by striking ``section 1105(a)(29)'' and
inserting ``section 1105(a)(28)''.

[[Page 1668]]
117 STAT. 1668

SEC. 1422. CHIEF ACQUISITION OFFICERS COUNCIL.

(a) Establishment of Council.--The Office of Federal Procurement
Policy Act (41 U.S.C. 403 et seq.) is amended by inserting after section
16 the following new section:

``SEC. 16A. [NOTE: 41 USC 414b.] CHIEF ACQUISITION OFFICERS COUNCIL.

``(a) Establishment.--There is established in the executive branch a
Chief Acquisition Officers Council.
``(b) Membership.--The members of the Council shall be as follows:
``(1) The Deputy Director for Management of the Office of
Management and Budget, who shall act as Chairman of the Council.
``(2) The Administrator for Federal Procurement Policy.
``(3) The Under Secretary of Defense for Acquisition,
Technology, and Logistics.
``(4) The chief acquisition officer of each executive agency
that is required to have a chief acquisition officer under
section 16 and the senior procurement executive of each military
department.
``(5) Any other senior agency officer of each executive
agency, appointed by the head of the agency in consultation with
the Chairman, who can effectively assist the Council in
performing the functions set forth in subsection (e) and
supporting the associated range of acquisition activities.

``(c) Leadership; Support.--(1) The Administrator for Federal
Procurement Policy shall lead the activities of the Council on behalf of
the Deputy Director for Management.
``(2)(A) The Vice Chairman of the Council shall be selected by the
Council from among its members.
``(B) The Vice Chairman shall serve a 1-year term, and may serve
multiple terms.
``(3) The Administrator of General Services shall provide
administrative and other support for the Council.
``(d) Principal Forum.--The Council is designated the principal
interagency forum for monitoring and improving the Federal acquisition
system.
``(e) Functions.--The Council shall perform functions that include
the following:
``(1) Develop recommendations for the Director of the Office
of Management and Budget on Federal acquisition policies and
requirements.
``(2) Share experiences, ideas, best practices, and
innovative approaches related to Federal acquisition.
``(3) Assist the Administrator in the identification,
development, and coordination of multiagency projects and other
innovative initiatives to improve Federal acquisition.
``(4) Promote effective business practices that ensure the
timely delivery of best value products to the Federal Government
and achieve appropriate public policy objectives.
``(5) Further integrity, fairness, competition, openness,
and efficiency in the Federal acquisition system.
``(6) Work with the Office of Personnel Management to assess
and address the hiring, training, and professional development
needs of the Federal Government related to acquisition.

[[Page 1669]]
117 STAT. 1669

``(7) Work with the Administrator and the Federal
Acquisition Regulatory Council to promote the business practices
referred to in paragraph (4) and other results of the functions
carried out under this subsection.''.

(b) Clerical Amendment.--The table of contents in section 1(b) of
such Act is amended by inserting after the item relating to section 16
the following new item:

``Sec. 16A. Chief Acquisition Officers Council.''.

SEC. 1423. [NOTE: 41 USC 405 note.] STATUTORY AND REGULATORY REVIEW.

(a) Establishment.--Not [NOTE: Deadline.]  later than 90 days
after the date of the enactment of this Act, the Administrator for
Federal Procurement Policy shall establish an advisory panel to review
laws and regulations regarding the use of commercial practices,
performance-based contracting, the performance of acquisition functions
across agency lines of responsibility, and the use of Governmentwide
contracts.

(b) Membership.--The panel shall be composed of at least nine
individuals who are recognized experts in acquisition law and Government
acquisition policy. In making appointments to the panel, the
Administrator shall--
(1) consult with the Secretary of Defense, the Administrator
of General Services, the Committees on Armed Services and
Government Reform of the House of Representatives, and the
Committees on Armed Services and Governmental Affairs of the
Senate; and
(2) ensure that the members of the panel reflect the diverse
experiences in both the public and private sectors, including
academia.

(c) Duties.--The panel shall--
(1) review all Federal acquisition laws and regulations,
and, to the extent practicable, government-wide acquisition
policies, with a view toward ensuring effective and appropriate
use of commercial practices and performance-based contracting;
and
(2) make any recommendations for the modification of such
laws, regulations, or policies that are considered necessary as
a result of such review--
(A) to protect the best interests of the Federal
Government;
(B) to ensure the continuing financial and ethical
integrity of acquisitions by the Federal Government; and
(C) to amend or eliminate any provisions in such
laws, regulations, or policies that are unnecessary for
the effective, efficient, and fair award and
administration of contracts for the acquisition by the
Federal Government of goods and services.

(d) Report.--Not [NOTE: Deadline.]  later than one year after the
establishment of the panel, the panel shall submit to the Administrator
and to the Committees on Armed Services and Government Reform of the
House of Representatives and the Committees on Armed Services and
Governmental Affairs of the Senate a report containing a detailed
statement of the findings, conclusions, and recommendations of the
panel.

[[Page 1670]]
117 STAT. 1670

PART II--OTHER ACQUISITION IMPROVEMENTS

SEC. 1426. EXTENSION OF AUTHORITY TO CARRY OUT FRANCHISE FUND PROGRAMS.

Section 403(f) of the Federal Financial Management Act of 1994
(Public Law 103-356; 31 U.S.C. 501 note) is amended by striking
``October 1, 2003'' and inserting ``December 31, 2004''.

SEC. 1427. IMPROVEMENTS IN CONTRACTING FOR ARCHITECTURAL AND ENGINEERING
SERVICES.

(a) Title 10.--Section 2855(b) of title 10, United States Code, is
amended in paragraph (2), by striking ``$85,000'' and inserting
``$300,000''.
(b) [NOTE: 40 USC 1103 note.] Architectural and Engineering
Services.--Architectural and engineering services (as defined in section
1102 of title 40, United States Code) shall not be offered under
multiple-award schedule contracts entered into by the Administrator of
General Services or under Governmentwide task and delivery order
contracts entered into under sections 2304a and 2304b of title 10,
United States Code, or sections 303H and 303I of the Federal Property
and Administrative Services Act of 1949 (41 U.S.C. 253h and 253i) unless
such services--
(1) are performed under the direct supervision of a
professional architect or engineer licensed, registered, or
certified in the State, territory (including the Commonwealth of
Puerto Rico), possession, or Federal District in which the
services are to be performed; and
(2) are awarded in accordance with the selection procedures
set forth in chapter 11 of title 40, United States Code.

SEC. 1428. [NOTE: 41 USC 253a note.] AUTHORIZATION OF TELECOMMUTING
FOR FEDERAL CONTRACTORS.

(a) Amendment to the Federal Acquisition Regulation.--Not later than
180 days after [NOTE: Deadline.]  the date of the enactment of this
Act, the Federal Acquisition Regulatory Council shall amend the Federal
Acquisition Regulation issued in accordance with sections 6 and 25 of
the Office of Federal Procurement Policy Act (41 U.S.C. 405 and 421) to
permit telecommuting by employees of Federal Government contractors in
the performance of contracts entered into with executive agencies.

(b) Content of Amendment.--The regulation issued pursuant to
subsection (a) shall, at a minimum, provide that solicitations for the
acquisition of property or services may not set forth any requirement or
evaluation criteria that would--
(1) render an offeror ineligible to enter into a contract on
the basis of the inclusion of a plan of the offeror to permit
the offeror's employees to telecommute, unless the contracting
officer concerned first determines that the requirements of the
agency, including security requirements, cannot be met if the
telecommuting is permitted and documents in writing the basis
for that determination; or
(2) reduce the scoring of an offer on the basis of the
inclusion in the offer of a plan of the offeror to permit the
offeror's employees to telecommute, unless the contracting
officer concerned first determines that the requirements of the
agency, including security requirements, would be adversely
impacted

[[Page 1671]]
117 STAT. 1671

if telecommuting is permitted and documents in writing the basis
for that determination.

(c) Definition.--In this section, the term ``executive agency'' has
the meaning given that term in section 4(1) of the Office of Federal
Procurement Policy Act (41 U.S.C. 403(1)).

Subtitle C--Acquisitions of Commercial Items

SEC. 1431. ADDITIONAL INCENTIVE FOR USE OF PERFORMANCE-BASED CONTRACTING
FOR SERVICES.

(a) In General.--The Office of Federal Procurement Policy Act (41
U.S.C. 403 et seq.) is amended by adding at the end the following new
section:

``SEC. 41. [NOTE: 41 USC 437.] INCENTIVES FOR EFFICIENT PERFORMANCE OF
SERVICES CONTRACTS.

``(a) Incentive for Use of Performance-Based Services Contracts.--A
performance-based contract for the procurement of services entered into
by an executive agency or a performance-based task order for services
issued by an executive agency may be treated as a contract for the
procurement of commercial items if--
``(1) the value of the contract or task order is estimated
not to exceed $25,000,000;
``(2) the contract or task order sets forth specifically
each task to be performed and, for each task--
``(A) defines the task in measurable, mission-
related terms;
``(B) identifies the specific end products or output
to be achieved; and
``(C) contains firm, fixed prices for specific tasks
to be performed or outcomes to be achieved; and
``(3) the source of the services provides similar services
to the general public under terms and conditions similar to
those offered to the Federal Government.

``(b) Regulations.--The regulations implementing this section shall
require agencies to collect and maintain reliable data sufficient to
identify the contracts or task orders treated as contracts for
commercial items using the authority of this section. The data may be
collected using the Federal Procurement Data System or other reporting
mechanism.
``(c) Report.--Not [NOTE: Deadline.] later than two years after
the date of the enactment of this section, the Director of the Office of
Management and Budget shall prepare and submit to the Committees on
Governmental Affairs and on Armed Services of the Senate and the
Committees on Government Reform and on Armed Services of the House of
Representatives a report on the contracts or task orders treated as
contracts for commercial items using the authority of this section. The
report shall include data on the use of such authority both government-
wide and for each department and agency.

``(d) Expiration.--The authority under this section shall expire 10
years after the date of the enactment of this section.''.
(b) Center [NOTE: Deadline. 41 USC 405 note.]  of Excellence in
Service Contracting.--Not later than 180 days after the date of the
enactment of this Act,

[[Page 1672]]
117 STAT. 1672

the Administrator for Federal Procurement Policy shall establish a
center of excellence in contracting for services. The center of
excellence shall assist the acquisition community by identifying, and
serving as a clearinghouse for, best practices in contracting for
services in the public and private sectors.
(c) Repeal of Superseded Provision.--Subsection (b) of section 821
of the Floyd D. Spence National Defense Authorization Act for Fiscal
Year 2001 (as enacted into law by Public Law 106-398; 114 Stat. 1654A-
218; 10 U.S.C. 2302 note) is repealed.

(d) Clerical and Technical Amendments.--(1) The table of contents in
section 1(b) of such Act is amended by striking the last item and
inserting the following:

``Sec. 40. Protection of constitutional rights of contractors.
``Sec. 41. Incentives for efficient performance of services
contracts.''.

(2) The section before section 41 of such [NOTE: 41 USC 436.] Act
(as added by subsection (a)) is redesignated as section 40.

SEC. 1432. AUTHORIZATION OF ADDITIONAL COMMERCIAL CONTRACT TYPES.

Section 8002(d) of the Federal Acquisition Streamlining Act of 1994
(Public Law 103-355; 108 Stat. 3387; 41 U.S.C. 264 note) is amended--
(1) by redesignating paragraph (1) as subparagraph (A) and
in that subparagraph by striking ``and'';
(2) by redesignating paragraph (2) as subparagraph (B) and
in that subparagraph by striking the period at the end and
inserting ``; and'';
(3) by adding after subparagraph (B) (as so redesignated)
the following new subparagraph:
``(C) subject to paragraph (2), authority for use of a time-
and-materials contract or a labor-hour contract for the
procurement of commercial services that are commonly sold to the
general public through such contracts and are purchased by the
procuring agency on a competitive basis.'';
(4) by striking ``Use of Firm, Fixed Price Contracts.--The''
and inserting ``Provisions Relating to Types of Contracts for
Commercial Items.--(1)''; and
(5) by adding at the end the following new paragraphs:

``(2) A time-and-materials contract or a labor-hour contract may be
used pursuant to the authority referred to in paragraph (1)(C)--
``(A) only for a procurement of commercial services in a
category of commercial services described in paragraph (3);
and--
``(B) only if the contracting officer for such procurement--
``(i) executes a determination and findings that no
other contract type is suitable;
``(ii) includes in the contract a ceiling price that
the contractor exceeds at its own risk; and
``(iii) authorizes any subsequent change in the
ceiling price only upon a determination, documented in
the contract file, that it is in the best interest of
the procuring agency to change such ceiling price.

``(3) The categories of commercial services referred to in paragraph
(2) are as follows:
``(A) Commercial services procured for support of a
commercial item, as described in section 4(12)(E) of the

[[Page 1673]]
117 STAT. 1673

Office of Federal Procurement Policy Act (41 U.S.C.
403(12)(E)).
``(B) Any other category of commercial services that
is designated by the Administrator for Federal
Procurement Policy in the Federal Acquisition Regulation
for the purposes of this paragraph on the basis that--
``(i) the commercial services in such category
are of a type of commercial services that are
commonly sold to the general public through use of
time-and-materials or labor-hour contracts; and
``(ii) it would be in the best interests of
the Federal Government to authorize use of time-
and-materials or labor-hour contracts for
purchases of the commercial services in such
category.''.

SEC. 1433. CLARIFICATION OF COMMERCIAL SERVICES DEFINITION.

Section 4 of the Office of Federal Procurement Policy Act (41 U.S.C.
403) is amended in paragraph (12)(F) by inserting ``or specific outcomes
to be achieved'' after ``performed''.

Subtitle D--Other Matters

SEC. 1441. [NOTE: 41 USC 428a note.] AUTHORITY TO ENTER INTO CERTAIN
TRANSACTIONS FOR DEFENSE AGAINST OR RECOVERY FROM TERRORISM
OR NUCLEAR, BIOLOGICAL, CHEMICAL, OR RADIOLOGICAL ATTACK.

(a) Authority.--
(1) In general.--The head of an executive agency who engages
in basic research, applied research, advanced research, and
development projects that--
(A) are necessary to the responsibilities of such
official's executive agency in the field of research and
development, and
(B) have the potential to facilitate defense against
or recovery from terrorism or nuclear, biological,
chemical, or radiological attack,
may exercise the same authority (subject to the same
restrictions and conditions) with respect to such research and
projects as the Secretary of Defense may exercise under section
2371 of title 10, United States Code, except for subsections (b)
and (f) of such section 2371.
(2) Prototype projects.--The head of an executive agency
may, under the authority of paragraph (1), carry out prototype
projects that meet the requirements of subparagraphs (A) and (B)
of paragraph (1) in accordance with the requirements and
conditions provided for carrying out prototype projects under
section 845 of the National Defense Authorization Act for Fiscal
Year 1994 (Public Law 103-160; 10 U.S.C. 2371 note), including
that, to the maximum extent practicable, competitive procedures
shall be used when entering into agreements to carry out
projects under subsection (a) of that section and that the
period of authority to carry out projects under such subsection
(a) terminates as provided in subsection (g) of that section.
(3) Application of requirements and conditions.--In applying
the requirements and conditions of section 845 of

[[Page 1674]]
117 STAT. 1674

the National Defense Authorization Act for Fiscal Year 1994
under this subsection--
(A) subsection (c) of that section shall apply with
respect to prototype projects carried out under this
paragraph; and
(B) the Director of the Office of Management and
Budget shall perform the functions of the Secretary of
Defense under subsection (d) of that section.
(4) Applicability to selected executive agencies.--
(A) OMB authorization required.--The head of an
executive agency may exercise authority under this
subsection for a project only if authorized by the
Director of the Office of Management and Budget to use
the authority for such project.
(B) Relationship to authority of department of
homeland security.--The authority under this subsection
shall not apply to the Secretary of Homeland Security
while section 831 of the Homeland Security Act of 2002
(Public Law 107-296; 116 Stat. 2224) is in effect.

(b) Annual Report.--The annual report of the head of an executive
agency that is required under subsection (h) of section 2371 of title
10, United States Code, as applied to the head of the executive agency
by subsection (a), shall be submitted to the Committee on Governmental
Affairs of the Senate and the Committee on Government Reform of the
House of Representatives.
(c) Regulations.--The Director of the Office of Management and
Budget shall prescribe regulations to carry out this section. No
transaction may be conducted under the authority of this section before
the date on which such regulations take effect.
(d) Termination of Authority.--The authority to carry out
transactions under subsection (a) shall terminate on September 30, 2008.

SEC. 1442. [NOTE: 41 USC 253 note.] PUBLIC DISCLOSURE OF
NONCOMPETITIVE CONTRACTING FOR THE RECONSTRUCTION OF
INFRASTRUCTURE IN IRAQ.

(a) Disclosure Required.--
(1) Publication [NOTE: Federal Register,
publication. Deadline.] and public availability.--The head of
an executive agency of the United States that enters into a
contract for the repair, maintenance, or construction of
infrastructure in Iraq without full and open competition shall
publish in the Federal Register or Commerce Business Daily and
otherwise make available to the public, not later than 30 days
after the date on which the contract is entered into, the
following information:
(A) The amount of the contract.
(B) A brief description of the scope of the
contract.
(C) A discussion of how the executive agency
identified, and solicited offers from, potential
contractors to perform the contract, together with a
list of the potential contractors that were issued
solicitations for the offers.
(D) The justification and approval documents on
which was based the determination to use procedures
other than procedures that provide for full and open
competition.
(2) Inapplicability to contracts after fiscal year 2005.--
Paragraph (1) does not apply to a contract entered into after
September 30, 2005.

[[Page 1675]]
117 STAT. 1675

(b) Classified Information.--
(1) Authority to withhold.--The head of an executive agency
may--
(A) withhold from publication and disclosure under
subsection (a) any document that is classified for
restricted access in accordance with an Executive order
in the interest of national defense or foreign policy;
and
(B) redact any part so classified that is in a
document not so classified before publication and
disclosure of the document under subsection (a).
(2) Availability to congress.--In any case in which the head
of an executive agency withholds information under paragraph
(1), the head of such executive agency shall make available an
unredacted version of the document containing that information
to the chairman and ranking member of each of the following
committees of Congress:
(A) The Committee on Governmental Affairs of the
Senate and the Committee on Government Reform of the
House of Representatives.
(B) The Committees on Appropriations of the Senate
and House of Representatives.
(C) Each committee that the head of the executive
agency determines has legislative jurisdiction for the
operations of such department or agency to which the
information relates.

(c) Fiscal Year 2003 Contracts.--
This [NOTE: Applicability.] section shall apply to contracts entered
into on or after October 1, 2002, except that, in the case of a contract
entered into before the date of the enactment of this Act, subsection
(a) shall be applied as if the contract had been entered into on the
date of the enactment of this Act.

(d) Relationship to Other Disclosure Laws.--Nothing in this section
shall be construed as affecting obligations to disclose United States
Government information under any other provision of law.
(e) Definitions.--In this section, the terms ``executive agency''
and ``full and open competition'' have the meanings given such terms in
section 4 of the Office of Federal Procurement Policy Act (41 U.S.C.
403).

SEC. 1443. SPECIAL EMERGENCY PROCUREMENT AUTHORITY.

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

``SEC. 32A. [NOTE: 41 USC 428a.] SPECIAL EMERGENCY PROCUREMENT
AUTHORITY.

``(a) Applicability.--The authorities provided in this section apply
with respect to any procurement of property or services by or for an
executive agency that, as determined by the head of such executive
agency, are to be used--
``(1) in support of a contingency operation; or
``(2) to facilitate the defense against or recovery from
nuclear, biological, chemical, or radiological attack against
the United States.

``(b) Increased Thresholds.--For a procurement to which this section
applies under subsection (a)--
``(1) the amount specified in subsections (c), (d), and (f)
of section 32 shall be deemed to be $15,000; and
``(2) the term `simplified acquisition threshold' means--

[[Page 1676]]
117 STAT. 1676

``(A) $250,000 in the case of any contract to be
awarded and performed, or purchase to be made, inside
the United States; and
``(B) $500,000 in the case of any contract to be
awarded and performed, or purchase to be made, outside
the United States.

``(c) Increased Limitation on Use of Simplified Acquisition
Procedures.--For a procurement to which this section applies under
subsection (a), the $5,000,000 limitation in the following provisions of
law shall be deemed to be $10,000,000:
``(1) Section 31(a)(2) of this Act.
``(2) Section 2304(g)(1)(B) of title 10, United States Code.
``(3) Section 303(g)(1)(B) of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 253(g)(1)(B)).

``(d) Commercial Items Authority.--(1) The head of an executive
agency carrying out a procurement of property or a service to which this
section applies under subsection (a)(2) may treat such property or
service as a commercial item for the purpose of carrying out such
procurement.
``(2) A contract in an amount greater than $15,000,000 that is
awarded on a sole source basis for an item or service treated as a
commercial item under paragraph (1) shall not be exempt from--
``(A) cost accounting standards promulgated pursuant to
section 26 of this Act; or
``(B) cost or pricing data requirements (commonly referred
to as truth in negotiating) under section 2306a of title 10,
United States Code, and section 304A of title III of the Federal
Property and Administrative Services Act of 1949 (41 U.S.C.
254b).

``(e) Contingency Operation Defined.--In this section, the term
`contingency operation' has the meaning given such term in section
101(a)(13) of title 10, United States Code.''.
(2) The table of contents in section 1(b) of such Act is amended by
inserting after the item relating to section 32 the following new item:

``Sec. 32A. Special emergency procurement authority.''.

(b) Continuation of Authority for Use of Simplified Acquisition
Procedures.--Section 4202(e) of the Clinger-Cohen Act (division D of
Public Law 104-106; 110 Stat. 652; 10 U.S.C. 2304 note) is amended by
striking ``January 1, 2004'' and inserting ``January 1, 2006''.

TITLE [NOTE: 38 USC 1101 note.] XV--VETERANS' DISABILITY BENEFITS
COMMISSION

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

SEC. 1501. ESTABLISHMENT OF COMMISSION.

(a) Establishment of Commission.--There is hereby established a
commission to be known as the Veterans' Disability Benefits

[[Page 1677]]
117 STAT. 1677

Commission (hereinafter in this title referred to as the
``commission'').
(b) Membership.--(1) The commission shall be composed of 13 members,
appointed as follows:
(A) Two members appointed by the Speaker of the House of
Representatives, at least one of whom shall be a veteran who was
awarded a decoration specified in paragraph (2).
(B) Two members appointed by the minority leader of the
House of Representatives, at least one of whom shall be a
veteran who was awarded a decoration specified in paragraph (2).
(C) Two members appointed by the majority leader of the
Senate, at least one of whom shall be a veteran who was awarded
a decoration specified in paragraph (2).
(D) Two members appointed by the minority leader of the
Senate, at least one of whom shall be a veteran who was awarded
a decoration specified in paragraph (2).
(E) Five members appointed by the President, at least three
of whom shall be veterans who were awarded a decoration
specified in paragraph (2).

(2) A decoration specified in this paragraph is any of the
following:
(A) The Medal of Honor.
(B) The Distinguished Service Cross, the Navy Cross, or the
Air Force Cross.
(C) The Silver Star.

(3) A vacancy in the Commission shall be filled in the manner in
which the original appointment was made.
(4) The appointment of members of the commission under this
subsection shall be made not later than 60 days after the date of the
enactment of this Act.
(c) Period of Appointment.--Members of the commission shall be
appointed for the life of the commission. A vacancy in the commission
shall not affect its powers.
(d) Initial Meeting.--The commission shall hold its first meeting
not later than 30 days after the date on which a majority of the members
of the commission have been appointed.
(e) Meetings.--The commission shall meet at the call of the
chairman.
(f) Quorum.--A majority of the members of the commission shall
constitute a quorum, but a lesser number may hold hearings.
(g) Chairman.--The President shall designate a member of the
commission to be chairman of the commission.

SEC. 1502. DUTIES OF THE COMMISSION.

(a) Study.--The commission shall carry out a study of the benefits
under the laws of the United States that are provided to compensate and
assist veterans and their survivors for disabilities and deaths
attributable to military service.
(b) Scope of Study.--In carrying out the study, the commission shall
examine and make recommendations concerning the following:
(1) The appropriateness of such benefits under the laws in
effect on the date of the enactment of this Act.
(2) The appropriateness of the level of such benefits.
(3) The appropriate standard or standards for determining
whether a disability or death of a veteran should be
compensated.

[[Page 1678]]
117 STAT. 1678

(c) Contents of Study.--The study to be carried out by the
commission under this section shall be a comprehensive evaluation and
assessment of the benefits provided under the laws of the United States
to compensate veterans and their survivors for disability or death
attributable to military service, together with any related issues that
the commission determines are relevant to the purposes of the study. The
study shall include an evaluation and assessment of the following:
(1) The laws and regulations which determine eligibility for
disability and death benefits, and other assistance for veterans
and their survivors.
(2) The rates of such compensation, including the
appropriateness of a schedule for rating disabilities based on
average impairment of earning capacity.
(3) Comparable disability benefits provided to individuals
by the Federal Government, State governments, and the private
sector.

(d) Consultation With Institute of Medicine.--In carrying out the
study under this section, the commission shall consult with the
Institute of Medicine of the National Academy of Sciences with respect
to the medical aspects of contemporary disability compensation policies.

SEC. 1503. REPORT.

Not [NOTE: Deadline.] later than 15 months after the date on which
the commission first meets, the commission shall submit to the President
and Congress a report on the study. The report shall include the
following:
(1) The findings and conclusions of the commission,
including its findings and conclusions with respect to the
matters referred to in section 1502(c).
(2) The recommendations of the commission for revising the
benefits provided by the United States to veterans and their
survivors for disability and death attributable to military
service.
(3) Other information and recommendations with respect to
such benefits as the commission considers appropriate.

SEC. 1504. POWERS OF THE COMMISSION.

(a) Hearings.--The commission may hold such hearings, sit and act at
such times and places, take such testimony, and receive such evidence as
the commission considers advisable to carry out the purposes of this
title.
(b) Information From Federal Agencies.--In addition to the
information referred to in section 1502(c), the commission may secure
directly from any Federal department or agency such information as the
commission considers necessary to carry out the provisions of this
title. Upon request of the chairman of the commission, the head of such
department or agency shall furnish such information to the commission.
(c) Postal Services.--The commission may use the United States mails
in the same manner and under the same conditions as other departments
and agencies of the Federal Government.
(d) Gifts.--The commission may accept, use, and dispose of gifts or
donations of services or property.

[[Page 1679]]
117 STAT. 1679

SEC. 1505. PERSONNEL MATTERS.

(a) Compensation of Members.--Each member of the commission who is
not an officer or employee of the United States shall be compensated at
a rate equal to the daily equivalent of the annual rate of basic pay
prescribed for level IV of the Executive Schedule under section 5315 of
title 5, United States Code, for each day (including travel time) during
which the member is engaged in the performance of the duties of the
commission. All members of the commission who are officers or employees
of the United States shall serve without compensation in addition to
that received for their services as officers or employees of the United
States.
(b) Travel Expenses.--The members of the commission shall be allowed
travel expenses, including per diem in lieu of subsistence, at rates
authorized for employees of agencies under subchapter I of chapter 57 of
title 5, United States Code, while away from their homes or regular
places of business in the performance of services for the commission.
(c) Staff.--(1) The chairman of the commission may, without regard
to the civil service laws and regulations, appoint an executive director
and such other personnel as may be necessary to enable the commission to
perform its duties. The appointment of an executive director shall be
subject to approval by the commission.
(2) The chairman of the commission may fix the compensation of the
executive director and other personnel without regard to the provisions
of chapter 51 and subchapter III of chapter 53 of title 5, United States
Code, relating to classification of positions and General Schedule pay
rates, except that the rate of pay for the executive director and other
personnel may not exceed the rate payable for level V of the Executive
Schedule under section 5316 of such title.
(d) Detail of Government Employees.--Upon request of the chairman of
the commission, the head of any Federal department or agency may detail,
on a nonreimbursable basis, any personnel of that department or agency
to the commission to assist it in carrying out its duties.
(e) Procurement of Temporary and Intermittent Services.--The
chairman of the commission may procure temporary and intermittent
services under section 3109(b) of title 5, United States Code, at rates
for individuals which do not exceed the daily equivalent of the annual
rate of basic pay prescribed for level V of the Executive Schedule under
section 5316 of such title.

SEC. 1506. TERMINATION OF COMMISSION.

The commission shall terminate 60 days after the date on which the
commission submits its report under section 1503.

SEC. 1507. FUNDING.

(a) In General.--The Secretary of Veterans Affairs shall, upon the
request of the chairman of the commission, make available to the
commission such amounts as the commission may require to carry out its
duties under this title.
(b) Availability.--Any sums made available to the commission under
subsection (a) shall remain available, without fiscal year limitation,
until the termination of the commission.

[[Page 1680]]
117 STAT. 1680

TITLE XVI--DEFENSE BIOMEDICAL COUNTERMEASURES

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

SEC. 1601. [NOTE: 10 USC 2370a note.] RESEARCH AND DEVELOPMENT OF
DEFENSE BIOMEDICAL COUNTERMEASURES.

(a) In General.--The Secretary of Defense (in this section referred
to as the ``Secretary'') shall carry out a program to accelerate the
research, development and procurement of biomedical countermeasures,
including but not limited to therapeutics and vaccines, for the
protection of the Armed Forces from attack by one or more biological,
chemical, radiological, or nuclear agents.
(b) Interagency Cooperation.--(1) In carrying out the program under
subsection (a), the Secretary may enter into interagency agreements and
other collaborative undertakings with other Federal agencies.
(2) The Secretary, through regular, structured, and close
consultation with the Secretary of Health and Human Services and the
Secretary of Homeland Security, shall ensure that the activities of the
Department of Defense in carrying out the program are coordinated with,
complement, and do not unnecessarily duplicate activities of the
Department of Health and Human Services or the Department of Homeland
Security.
(c) Expedited Procurement Authority.--(1) For any procurement of
property or services for use (as determined by the Secretary) in
performing, administering, or supporting biomedical countermeasures
research and development, the Secretary may, when appropriate, use
streamlined acquisition procedures and other expedited procurement
procedures authorized in--
(A) section 32A of the Office of Federal Procurement Policy
Act, as added by section 1443 of this Act; and
(B) section 2371 of title 10, United States Code, and
section 845 of the National Defense Authorization Act for Fiscal
Year 1994 (Public Law 103-160; 10 U.S.C. 2371 note).

(2) Notwithstanding paragraph (1) and the provisions of law referred
to in such paragraph, each of the following provisions shall apply to
the procurements described in this subsection to the same extent that
such provisions would apply to such procurements in the absence of
paragraph (1):
(A) Chapter 37 of title 40, United States Code (relating to
contract work hours and safety standards).
(B) Subsections (a) and (b) of section 7 of the Anti-
Kickback Act of 1986 (41 U.S.C. 57(a) and (b)).
(C) Section 2313 of title 10, United States Code (relating
to the examination of contractor records).

(3) The Secretary shall institute appropriate internal controls for
use of the authority under paragraph (1), including requirements for
documenting the justification for each use of such authority.
(d) Department of Defense Facilities Authority.--(1) If the
Secretary determines that it is necessary to acquire, lease, construct,
or improve laboratories, research facilities, and other real property of
the Department of Defense in order to carry out the program under this
section, the Secretary may do so using the procedures set forth in
paragraphs (2), (3), (4), and (5).

[[Page 1681]]
117 STAT. 1681

(2) The Secretary shall use existing construction authorities
provided by subchapter I of chapter 169 of title 10, United States Code,
to the maximum extent possible.
(3)(A) If the Secretary determines that use of authorities in
paragraph (2) would prevent the Department from meeting a specific
facility requirement for the program, the Secretary shall submit to the
congressional defense committees advance notification, which shall
include the following:
(i) Certification by the Secretary that use of existing
construction authorities would prevent the Department from
meeting the specific facility requirement.
(ii) A detailed explanation of the reasons why existing
authorities cannot be used.
(iii) A justification of the facility requirement.
(iv) Construction project data and estimated cost.
(v) Identification of the source or sources of the funds
proposed to be expended.

(B) The facility project may be carried out only after the end of
the 21-day period beginning on the date the notification is received by
the congressional defense committees.
(4) If the Secretary determines: (A) that the facility is vital to
national security or to the protection of health, safety, or the quality
of the environment; and (B) the requirement for the facility is so
urgent that the advance notification in paragraph (3) and the subsequent
21-day deferral of the facility project would threaten the life, health,
or safety of personnel, or would otherwise jeopardize national security,
the Secretary may obligate funds for the facility and notify the
congressional defense committees within seven days after the date on
which appropriated funds are obligated with the information required in
paragraph (3).
(5) The Secretary shall submit to the congressional defense
committees a quarterly report detailing any use of the authority
provided by paragraph (4), including costs incurred or to be incurred by
the United States as a result of the use of the authority.
(6) Nothing in this section shall be construed to authorize the
Secretary to acquire, construct, lease, or improve a facility having
general utility beyond the specific purposes of the program.
(7) In this subsection, the term ``facility'' has the meaning given
the term in section 2801(c) of title 10, United States Code.
(e) Authority for Personal Services Contracts.--(1) Subject to
paragraph (2), the authority provided by section 1091 of title 10,
United States Code, for personal services contracts to carry out health
care responsibilities in medical treatment facilities of the Department
of Defense shall also be available, subject to the same terms and
conditions, for personal services contracts to carry out research and
development activities under this section. The number of individuals
whose personal services are obtained under this subsection may not
exceed 30 at any time.
(2) The authority provided by such section 1091 may not be used for
a personal services contract unless the contracting officer for the
contract ensures that--
(A) the services to be procured are urgent or unique; and
(B) it would not be practicable for the Department of
Defense to obtain such services by other measures.

(f) Streamlined Personnel Authority.--(1) The Secretary may appoint
highly qualified experts, including scientific and technical personnel,
to carry out research and development under this

[[Page 1682]]
117 STAT. 1682

section in accordance with the authorities provided in section 342 of
the National Defense Authorization Act for Fiscal Year 1995 (Public Law
103-337; 108 Stat. 2721), section 1101 of the Strom Thurmond National
Defense Authorization Act for Fiscal Year 1999 (Public Law 105-261), and
section 1101 of this Act.
(2) The Secretary may use the authority under paragraph (1) only
upon a determination by the Secretary that use of such authority is
necessary to accelerate the research and development under the program.
(3) The Secretary shall institute appropriate internal controls for
each use of the authority under paragraph (1).

SEC. 1602. [NOTE: 10 USC 2302 note.] PROCUREMENT OF DEFENSE BIOMEDICAL
COUNTERMEASURES.

(a) Determination of Material Threats.--(1) The Secretary of Defense
(in this section referred to as the ``Secretary'') shall on an ongoing
basis--
(A) assess current and emerging threats of use of
biological, chemical, radiological, and nuclear agents; and
(B) identify, on the basis of such assessment, those agents
that present a material risk of use against the Armed Forces.

(2) The Secretary shall on an ongoing basis--
(A) assess the potential consequences to the health of
members of the Armed Forces of use against the Armed Forces of
the agents identified under paragraph (1)(B); and
(B) identify, on the basis of such assessment, those agents
for which countermeasures are necessary to protect the health of
members of the Armed Forces.

(b) Assessment of Availability and Appropriateness of
Countermeasures.--The Secretary shall on an ongoing basis assess the
availability and appropriateness of specific countermeasures to address
specific threats identified under subsection (a).
(c) Secretary's Determination of Countermeasures Appropriate for
Procurement.--(1) The Secretary, in accordance with paragraph (2), shall
on an ongoing basis identify specific countermeasures that the Secretary
determines to be appropriate for procurement for the Department of
Defense stockpile of biomedical countermeasures.
(2) The Secretary may not identify a specific countermeasure under
paragraph (1) unless the Secretary determines that--
(A) the countermeasure is a qualified countermeasure; and
(B) it is reasonable to expect that producing and
delivering, within 5 years, the quantity of that countermeasure
required to meet the needs of the Department (as determined by
the Secretary) is feasible.

(d) Interagency Cooperation.--(1) Activities of the Secretary under
this section shall be carried out in regular, structured, and close
consultation and coordination with the Secretaries of Homeland Security
and Health and Human Services, including the activities described in
subsections (a), (b), and (c) and those activities with respect to
interagency agreements described in paragraph (2).
(2) The Secretary may enter into an interagency agreement with the
Secretaries of Homeland Security and Health and Human Services to
provide for acquisition by the Secretary of Defense

[[Page 1683]]
117 STAT. 1683

for use by the Armed Forces of biomedical countermeasures procured for
the Strategic National Stockpile by the Secretary of Health and Human
Services. The Secretary may transfer such funds to the Secretary of
Health and Human Services as are necessary to carry out such agreements
(including administrative costs of the Secretary of Health and Human
Services), and the Secretary of Health and Human Services may expend any
such transferred funds to procure such countermeasures for use by the
Armed Forces, or to replenish the stockpile. The Secretaries are
authorized to establish such terms and conditions for such agreements as
the Secretaries determine to be in the public interest. The transfer
authority provided under this paragraph is in addition to any other
transfer authority available to the Secretary.
(e) Definitions.--In this section:
(1) The term ``qualified countermeasure'' means a biomedical
countermeasure--
(A) that is approved under section 505(a) of the
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355) or
licensed under section 351 of the Public Health Service
Act (42 U.S.C. 262), or that is approved under section
515 or cleared under section 510(k) of the Federal Food,
Drug, and Cosmetic Act (21 U.S.C. 360e and 360) for use
as such a countermeasure to a biological, chemical,
radiological, or nuclear agent identified as a material
threat under subsection (a); or
(B) with respect to which the Secretary of Health
and Human Services makes a determination that sufficient
and satisfactory clinical experience or research data
(including data, if available, from preclinical and
clinical trials) exists to support a reasonable
conclusion that the product will qualify for such
approval or licensing for use as such a countermeasure.
(2) The term ``biomedical countermeasure'' means a drug (as
defined in section 201(g)(1) of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 321(g)(1))), device (as defined in
section 201(h) of the Federal Food, Drug, and Cosmetic Act (21
U.S.C. 321(h))), or biological product (as defined in section
351(i) of the Public Health Service Act (42 U.S.C. 262(i))) that
is--
(A) used to treat, identify, or prevent harm from
any biological, chemical, radiological, or nuclear agent
that may cause a military health emergency affecting the
Armed Forces; or
(B) used to treat, identify, or prevent harm from a
condition that may result in adverse health consequences
or death and may be caused by administering a drug or
biological product that is used as described in
subparagraph (A).
(3) The term ``Strategic National Stockpile'' means the
stockpile established under section 121(a) of the Public Health
and Bioterrorism Preparedness and Response Act of 2002 (42
U.S.C. 300hh-12(a)).

(f) Funding.--Of the amount authorized to be appropriated for the
Department of Defense and available within the transfer authority
established under section 1001 of this Act for fiscal year 2004 and for
each fiscal year thereafter, such sums are authorized

[[Page 1684]]
117 STAT. 1684

as may be necessary for the costs incurred by the Secretary in the
procurement of countermeasures under this section.

SEC. 1603. AUTHORIZATION FOR MEDICAL PRODUCTS FOR USE IN EMERGENCIES.

(a) In General.--Subchapter E of chapter V of the Federal Food,
Drug, and Cosmetic Act (21 U.S.C. 360bbb et seq.) is amended by adding
at the end the following section:

``SEC. 564. [NOTE: 21 USC 360bbb-3.] AUTHORIZATION FOR MEDICAL
PRODUCTS FOR USE IN EMERGENCIES.

``(a) In General.--
``(1) Emergency uses.--Notwithstanding sections 505, 510(k),
and 515 of this Act and section 351 of the Public Health Service
Act, and subject to the provisions of this section, the
Secretary may authorize the introduction into interstate
commerce, during the effective period of a declaration under
subsection (b), of a drug, device, or biological product
intended for use in an actual or potential emergency (referred
to in this section as an `emergency use').
``(2) Approval status of product.--An authorization under
paragraph (1) may authorize an emergency use of a product that--
``(A) is not approved, licensed, or cleared for
commercial distribution under a provision of law
referred to in such paragraph (referred to in this
section as an `unapproved product'); or
``(B) is approved, licensed, or cleared under such a
provision, but which use is not under such provision an
approved, licensed, or cleared use of the product
(referred to in this section as an `unapproved use of an
approved product').
``(3) Relation to other uses.--An emergency use authorized
under paragraph (1) for a product is in addition to any other
use that is authorized for the product under a provision of law
referred to in such paragraph.
``(4) Definitions.--For purposes of this section:
``(A) The term `biological product' has the meaning
given such term in section 351 of the Public Health
Service Act.
``(B) The term `emergency use' has the meaning
indicated for such term in paragraph (1).
``(C) The term `product' means a drug, device, or
biological product.
``(D) The term `unapproved product' has the meaning
indicated for such term in paragraph (2)(A).
``(E) The term `unapproved use of an approved
product' has the meaning indicated for such term in
paragraph (2)(B).

``(b) Declaration of Emergency.--
``(1) In general.--The Secretary may declare an emergency
justifying the authorization under this subsection for a product
on the basis of a determination by the Secretary of Defense that
there is a military emergency, or a significant potential for a
military emergency, involving a heightened risk to United States
military forces of attack with a specified biological, chemical,
radiological, or nuclear agent or agents.
``(2) Termination of declaration.--

[[Page 1685]]
117 STAT. 1685

``(A) In general.--A declaration under this
subsection shall terminate upon the earlier of--
``(i) a determination by the Secretary, in
consultation with the Secretary of Defense, that
the circumstances described in paragraph (1) have
ceased to exist; or
``(ii) the expiration of the one-year period
beginning on the date on which the declaration is
made.
``(B) Renewal.--Notwithstanding subparagraph (A),
the Secretary may renew a declaration under this
subsection, and this paragraph shall apply to any such
renewal.
``(C) Disposition of product.--If an authorization
under this section with respect to an unapproved product
ceases to be effective as a result of a termination
under subparagraph (A) of this paragraph, the Secretary
shall consult with the manufacturer of such product with
respect to the appropriate disposition of the product.
``(3) Advance notice of termination.--The Secretary shall
provide advance notice that a declaration under this subsection
will be terminated. The period of advance notice shall be a
period reasonably determined to provide--
``(A) in the case of an unapproved product, a
sufficient period for disposition of the product,
including the return of such product (except such
quantities of product as are necessary to provide for
continued use consistent with subsection (f)(2)) to the
manufacturer (in the case of a manufacturer that chooses
to have such product returned); and
``(B) in the case of an unapproved use of an
approved product, a sufficient period for the
disposition of any labeling, or any information under
subsection (e)(2)(B)(ii), as the case may be, that was
provided with respect to the emergency use involved.
``(4) [NOTE: Federal Register,
publication.] Publication.--The Secretary shall promptly
publish in the Federal Register each declaration, determination,
advance notice of termination, and renewal under this
subsection.

``(c) Criteria for Issuance of Authorization.--The Secretary may
issue an authorization under this section with respect to the emergency
use of a product only if, after consultation with the Director of the
National Institutes of Health and the Director of the Centers for
Disease Control and Prevention (to the extent feasible and appropriate
given the circumstances of the emergency involved), the Secretary
concludes--
``(1) that an agent specified in a declaration under
subsection (b) can cause a serious or life-threatening disease
or condition;
``(2) that, based on the totality of scientific evidence
available to the Secretary, including data from adequate and
well-controlled clinical trials, if available, it is reasonable
to believe that--
``(A) the product may be effective in diagnosing,
treating, or preventing--
``(i) such disease or condition; or
``(ii) a serious or life-threatening disease
or condition caused by a product authorized under
this section, approved or cleared under this Act,
or licensed under

[[Page 1686]]
117 STAT. 1686

section 351 of the Public Health Service Act, for
diagnosing, treating, or preventing such a disease
or condition caused by such an agent; and
``(B) the known and potential benefits of the
product, when used to diagnose, prevent, or treat such
disease or condition, outweigh the known and potential
risks of the product;
``(3) that there is no adequate, approved, and available
alternative to the product for diagnosing, preventing, or
treating such disease or condition; and
``(4) that such other criteria as the Secretary may by
regulation prescribe are satisfied.

``(d) Scope of Authorization.--An authorization of a product under
this section shall state--
``(1) each disease or condition that the product may be used
to diagnose, prevent, or treat within the scope of the
authorization;
``(2) the Secretary's conclusions, made under subsection
(c)(2)(B), that the known and potential benefits of the product,
when used to diagnose, prevent, or treat such disease or
condition, outweigh the known and potential risks of the
product; and
``(3) the Secretary's conclusions, made under subsection
(c), concerning the safety and potential effectiveness of the
product in diagnosing, preventing, or treating such diseases or
conditions, including an assessment of the available scientific
evidence.

``(e) Conditions of Authorization.--
``(1) Unapproved product.--
``(A) Required conditions.--With respect to the
emergency use of an unapproved product, the Secretary,
to the extent practicable given the circumstances of the
emergency, shall, for a person who carries out any
activity for which the authorization is issued,
establish such conditions on an authorization under this
section as the Secretary finds necessary or appropriate
to protect the public health, including the following:
``(i) Appropriate conditions designed to
ensure that health care professionals
administering the product are informed--
``(I) that the Secretary has
authorized the emergency use of the
product;
``(II) of the significant known and
potential benefits and risks of the
emergency use of the product, and of the
extent to which such benefits and risks
are unknown; and
``(III) of the alternatives to the
product that are available, and of their
benefits and risks.
``(ii) Appropriate conditions designed to
ensure that individuals to whom the product is
administered are informed--
``(I) that the Secretary has
authorized the emergency use of the
product;
``(II) of the significant known and
potential benefits and risks of such
use, and of the extent to which such
benefits and risks are unknown; and

[[Page 1687]]
117 STAT. 1687

``(III) of the option to accept or
refuse administration of the product, of
the consequences, if any, of refusing
administration of the product, and of
the alternatives to the product that are
available and of their benefits and
risks.
``(iii) Appropriate conditions for the
monitoring and reporting of adverse events
associated with the emergency use of the product.
``(iv) For manufacturers of the product,
appropriate conditions concerning recordkeeping
and reporting, including records access by the
Secretary, with respect to the emergency use of
the product.
``(B) Authority for additional conditions.--With
respect to the emergency use of an unapproved product,
the Secretary may, for a person who carries out any
activity for which the authorization is issued,
establish such conditions on an authorization under this
section as the Secretary finds necessary or appropriate
to protect the public health, including the following:
``(i) Appropriate conditions on which entities
may distribute the product with respect to the
emergency use of the product (including limitation
to distribution by government entities), and on
how distribution is to be performed.
``(ii) Appropriate conditions on who may
administer the product with respect to the
emergency use of the product, and on the
categories of individuals to whom, and the
circumstances under which, the product may be
administered with respect to such use.
``(iii) Appropriate conditions with respect to
the collection and analysis of information, during
the period when the authorization is in effect,
concerning the safety and effectiveness of the
product with respect to the emergency use of such
product.
``(iv) For persons other than manufacturers of
the product, appropriate conditions concerning
recordkeeping and reporting, including records
access by the Secretary, with respect to the
emergency use of the product.
``(2) Unapproved use.--With respect to the emergency use of
a product that is an unapproved use of an approved product:
``(A) For a manufacturer of the product who carries
out any activity for which the authorization is issued,
the Secretary shall, to the extent practicable given the
circumstances of the emergency, establish conditions
described in clauses (i) and (ii) of paragraph (1)(A),
and may establish conditions described in clauses (iii)
and (iv) of such paragraph.
``(B)(i) If the authorization under this section
regarding the emergency use authorizes a change in the
labeling of the product, but the manufacturer of the
product chooses not to make such change, such
authorization may not authorize distributors of the
product or any other person to alter or obscure the
labeling provided by the manufacturer.
``(ii) In the circumstances described in clause (i),
for a person who does not manufacture the product and
who

[[Page 1688]]
117 STAT. 1688

chooses to act under this clause, an authorization under
this section regarding the emergency use shall, to the
extent practicable given the circumstances of the
emergency, authorize such person to provide appropriate
information with respect to such product in addition to
the labeling provided by the manufacturer, subject to
compliance with clause (i). While the authorization
under this section is effective, such additional
information shall not be considered labeling for
purposes of section 502.
``(C) The Secretary may establish with respect to
the distribution and administration of the product for
the unapproved use conditions no more restrictive than
those established by the Secretary with respect to the
distribution and administration of the product for the
approved use.
``(3) Good manufacturing practice.--With respect to the
emergency use of a product for which an authorization under this
section is issued (whether an unapproved product or an
unapproved use of an approved product), the Secretary may waive
or limit, to the extent appropriate given the circumstances of
the emergency, requirements regarding current good manufacturing
practice otherwise applicable to the manufacture, processing,
packing, or holding of products subject to regulation under this
Act, including such requirements established under section 501.
``(4) Advertising.--The Secretary may establish conditions
on advertisements and other promotional descriptive printed
matter that relate to the emergency use of a product for which
an authorization under this section is issued (whether an
unapproved product or an unapproved use of an approved product),
including, as appropriate--
``(A) with respect to drugs and biological products,
requirements applicable to prescription drugs pursuant
to section 502(n); or
``(B) with respect to devices, requirements
applicable to restricted devices pursuant to section
502(r).

``(f) Duration of Authorization.--
``(1) In general.--Except as provided in paragraph (2), an
authorization under this section shall be effective until the
earlier of the termination of the declaration under subsection
(b) or a revocation under subsection (g).
``(2) Continued use after end of effective period.--
Notwithstanding the termination of the declaration under
subsection (b) or a revocation under subsection (g), an
authorization shall continue to be effective to provide for
continued use of an unapproved product with respect to a patient
to whom it was administered during the period described by
paragraph (1), to the extent found necessary by such patient's
attending physician.

``(g) Revocation of Authorization.--
``(1) Review.--The Secretary shall periodically review the
circumstances and the appropriateness of an authorization under
this section.
``(2) Revocation.--The Secretary may revoke an authorization
under this section if the criteria under subsection (c) for
issuance of such authorization are no longer met or other
circumstances make such revocation appropriate to protect the
public health or safety.

[[Page 1689]]
117 STAT. 1689

``(h) Publication; Confidential Information.--
``(1) Publication.--The Secretary [NOTE: Federal Register,
publication.] shall promptly publish in the Federal Register a
notice of each authorization, and each termination or revocation
of an authorization under this section, and an explanation of
the reasons therefor (which may include a summary of data or
information that has been submitted to the Secretary in an
application under section 505(i) or section 520(g), even if such
summary may indirectly reveal the existence of such
application).
``(2) Confidential information.--Nothing in this section
alters or amends section 1905 of title 18, United States Code,
or section 552(b)(4) of title 5 of such Code.

``(i) Actions Committed to Agency Discretion.--Actions under the
authority of this section by the Secretary or by the Secretary of
Defense are committed to agency discretion.
``(j) Rules of Construction.--The following applies with respect to
this section:
``(1) Nothing in this section impairs the authority of the
President as Commander in Chief of the Armed Forces of the
United States under article II, section 2 of the United States
Constitution.
``(2) Nothing in this section impairs the authority of the
Secretary of Defense with respect to the Department of Defense,
including the armed forces, under other provisions of Federal
law.
``(3) Nothing in this section (including any exercise of
authority by a manufacturer under subsection (e)(2)) impairs the
authority of the United States to use or manage quantities of a
product that are owned or controlled by the United States
(including quantities in the stockpile maintained under section
319F-2 of the Public Health Service Act).

``(k) Relation to Other Provisions.--If a product is the subject of
an authorization under this section, the use of such product within the
scope of the authorization shall not be considered to constitute a
clinical investigation for purposes of section 505(i), section 520(g),
or any other provision of this Act or section 351 of the Public Health
Service Act.
``(l) Option to Carry Out Authorized Activities.--Nothing in this
section provides the Secretary any authority to require any person to
carry out any activity that becomes lawful pursuant to an authorization
under this section, and no person is required to inform the Secretary
that the person will not be carrying out such activity, except that a
manufacturer of a sole-source unapproved product authorized for
emergency use shall report to the Secretary within a reasonable period
of time after the issuance by the Secretary of such authorization if
such manufacturer does not intend to carry out any activity under the
authorization. This section only has legal effect on a person who
carries out an activity for which an authorization under this section is
issued. This section does not modify or affect activities carried out
pursuant to other provisions of this Act or section 351 of the Public
Health Service Act. Nothing in this subsection may be construed as
restricting the Secretary from imposing conditions on persons who carry
out any activity pursuant to an authorization under this section.''.
(b) Emergency Use Products.--(1) Chapter 55 of title 10, United
States Code, is amended by inserting after section 1107 the following
new section:

[[Page 1690]]
117 STAT. 1690

``Sec. 1107a. Emergency use products

``(a) Waiver by the President.--In the case of the administration of
a product authorized for emergency use under section 564 of the Federal
Food, Drug, and Cosmetic Act to members of the armed forces, the
condition described in section 564(e)(1)(A)(ii)(III) of such Act and
required under paragraph (1)(A) or (2)(A) of such section 564(e),
designed to ensure that individuals are informed of an option to accept
or refuse administration of a product, may be waived only by the
President only if the President determines, in writing, that complying
with such requirement is not feasible, is contrary to the best interests
of the members affected, or is not in the interests of national
security.
``(b) Provision of Information.--If the President, under subsection
(a), waives the condition described in section 564(e)(1)(A)(ii)(III) of
the Federal Food, Drug, and Cosmetic Act, and if the Secretary of
Defense, in consultation with the Secretary of Health and Human
Services, makes a determination that it is not feasible based on time
limitations for the information described in section 564(e)(1)(A)(ii)(I)
or (II) of such Act and required under paragraph (1)(A) or (2)(A) of
such section 564(e), to be provided to a member of the armed forces
prior to the administration of the product, such information shall be
provided to such member of the armed forces (or next-of-kin in the case
of the death of a member) to whom the product was administered as soon
as possible, but not later than 30 days, after such administration. The
authority provided for in this subsection may not be delegated.
Information concerning the administration of the product shall be
recorded in the medical record of the member.
``(c) Applicability of Other Provisions.--In the case of an
authorization by the Secretary of Health and Human Services under
section 564(a)(1) of the Federal Food, Drug, and Cosmetic Act based on a
determination by the Secretary of Defense under section 564(b)(1)(B) of
such Act, subsections (a) through (f) of section 1107 shall not apply to
the use of a product that is the subject of such authorization, within
the scope of such authorization and while such authorization is
effective.''.

(2) The table of sections at the beginning of such chapter is
amended by inserting after the item relating to section 1107 the
following new item:

``1107a. Emergency use products.''.

(c) Enforcement.--Section 301(d) of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 331(d)) is amended by striking ``section 404 or
505'' and inserting ``section 404, 505, or 564''. Section 301(e) of such
Act is amended by inserting ``564,'' after ``504,'' the first place such
term appears, and by striking ``or 519'' and inserting ``519, or 564''.
(d) [NOTE: 10 USC 1107a note.] Termination.--This section shall
not be in effect (and the law shall read as if this section were never
enacted) as of the date on which, following enactment of the Project
Bioshield Act of 2003, the President submits to Congress a notification
that the Project Bioshield Act of 2003 provides an effective emergency
use authority with respect to members of the Armed Forces.

[[Page 1691]]
117 STAT. 1691

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

Sec. 1701. Requirements for naturalization through service in the Armed
Forces of the United States.
Sec. 1702. Naturalization benefits for members of the Selected Reserve
of the Ready Reserve.
Sec. 1703. Extension of posthumous benefits to surviving spouses,
children, and parents.
Sec. 1704. Expedited process for granting posthumous citizenship to
members of the Armed Forces.
Sec. 1705. Effective date.

SEC. 1701. REQUIREMENTS FOR NATURALIZATION THROUGH SERVICE IN THE ARMED
FORCES OF THE UNITED STATES.

(a) Reduction of Period for Required Service.--Section 328(a) of the
Immigration and Nationality Act (8 U.S.C. 1439(a)) is amended by
striking ``three years,'' and inserting ``one year,''.
(b) Prohibition on Imposition of Fees Relating to Naturalization.--
Title III of the Immigration and Nationality Act (8 U.S.C. 1401 et seq.)
is amended--
(1) in section [NOTE: 8 USC 1439.] 328(b)--
(A) in paragraph (3)--
(i) by striking ``honorable. The'' and
inserting ``honorable (the''; and
(ii) by striking ``discharge.'' and inserting
``discharge); and''; and
(B) by adding at the end the following:
``(4) notwithstanding any other provision of law, no fee
shall be charged or collected from the applicant for filing the
application, or for the issuance of a certificate of
naturalization upon being granted citizenship, and no clerk of
any State court shall charge or collect any fee for such
services unless the laws of the State require such charge to be
made, in which case nothing more than the portion of the fee
required to be paid to the State shall be charged or
collected.''; and
(2) in section [NOTE: 8 USC 1440.] 329(b)--
(A) in paragraph (2), by striking ``and'' at the
end;
(B) in paragraph (3), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(4) notwithstanding any other provision of law, no fee
shall be charged or collected from the applicant for filing a
petition for naturalization or for the issuance of a certificate
of naturalization upon citizenship being granted to the
applicant, and no clerk of any State court shall charge or
collect any fee for such services unless the laws of the State
require such charge to be made, in which case nothing more than
the portion of the fee required to be paid to the State shall be
charged or collected.''.

(c) Revocation of Citizenship for Separation From Military Service
Under Other Than Honorable Conditions.--
(1) In general.--Title III of the Immigration and
Nationality Act (8 U.S.C. 1401 et seq.) is amended--
(A) by adding at the end of section 328 the
following:

[[Page 1692]]
117 STAT. 1692

``(f) Citizenship granted pursuant to this section may be revoked in
accordance with section 340 if the person is separated from the Armed
Forces under other than honorable conditions before the person has
served honorably for a period or periods aggregating five years. Such
ground for revocation shall be in addition to any other provided by law,
including the grounds described in section 340. The fact that the
naturalized person was separated from the service under other than
honorable conditions shall be proved by a duly authenticated
certification from the executive department under which the person was
serving at the time of separation. Any period or periods of service
shall be proved by duly authenticated copies of the records of the
executive departments having custody of the records of such service.'';
and
(B) by amending section 329(c) [NOTE: 8 USC
1440.]  to read as follows:

``(c) Citizenship granted pursuant to this section may be revoked in
accordance with section 340 if the person is separated from the Armed
Forces under other than honorable conditions before the person has
served honorably for a period or periods aggregating five years. Such
ground for revocation shall be in addition to any other provided by law,
including the grounds described in section 340. The fact that the
naturalized person was separated from the service under other than
honorable conditions shall be proved by a duly authenticated
certification from the executive department under which the person was
serving at the time of separation. Any period or periods of service
shall be proved by duly authenticated copies of the records of the
executive departments having custody of the records of such service.''.
(2) Effective date.--The [NOTE: 8 USC 1439 note.]
amendments made by paragraph (1) shall apply to citizenship
granted on or after the date of the enactment of this Act.

(d) Naturalization [NOTE: Availability. 8 USC 1443a.] Proceedings
Overseas for Members of the Armed Forces.--Notwithstanding any other
provision of law, the Secretary of Homeland Security, the Secretary of
State, and the Secretary of Defense shall ensure that any applications,
interviews, filings, oaths, ceremonies, or other proceedings under title
III of the Immigration and Nationality Act (8 U.S.C. 1401 et seq.)
relating to naturalization of members of the Armed Forces are available
through United States embassies, consulates, and as practicable, United
States military installations overseas.

(e) Finalization [NOTE: 8 USC 1443a note.] of Naturalization
Proceedings for Members of the Armed Forces.--Not later than 90 days
after the date of the enactment of this Act, the Secretary of Defense
shall prescribe a policy that facilitates the opportunity for a member
of the Armed Forces to finalize naturalization for which the member has
applied. The policy shall include, for such purpose, the following:
(1) A high priority for grant of emergency leave.
(2) A high priority for transportation on aircraft of, or
chartered by, the Armed Forces.

(f) Technical and Conforming Amendment.--Section 328(b)(3) of the
Immigration and Nationality Act (8 U.S.C. 1439(b)(3)) is amended by
striking ``Attorney General'' and inserting ``Secretary of Homeland
Security''.

[[Page 1693]]
117 STAT. 1693

SEC. 1702. NATURALIZATION BENEFITS FOR MEMBERS OF THE SELECTED RESERVE
OF THE READY RESERVE.

Section 329(a) of the Immigration and Nationality Act (8 U.S.C.
1440(a)) is amended by inserting ``as a member of the Selected Reserve
of the Ready Reserve or'' after ``has served honorably''.

SEC. 1703. EXTENSION OF POSTHUMOUS BENEFITS TO SURVIVING SPOUSES,
CHILDREN, AND PARENTS.

(a) Treatment [NOTE: 8 USC 1151 note.] as Immediate Relatives.--
(1) Spouses.--Notwithstanding the second sentence of section
201(b)(2)(A)(i) of the Immigration and Nationality Act (8 U.S.C.
1151(b)(2)(A)(i)), in the case of an alien who was the spouse of
a citizen of the United States at the time of the citizen's
death and was not legally separated from the citizen at the time
of the citizen's death, if the citizen served honorably in an
active duty status in the military, air, or naval forces of the
United States and died as a result of injury or disease incurred
in or aggravated by combat, the alien (and each child of the
alien) shall be considered, for purposes of section 201(b) of
such Act, to remain an immediate relative after the date of the
citizen's death, but only if the alien files a petition under
section 204(a)(1)(A)(ii) of such Act within 2 years after such
date and only until the date the alien remarries. For purposes
of such section 204(a)(1)(A)(ii), an alien granted relief under
the preceding sentence shall be considered an alien spouse
described in the second sentence of section 201(b)(2)(A)(i) of
such Act.
(2) Children.--
(A) In general.--In the case of an alien who was the
child of a citizen of the United States at the time of
the citizen's death, if the citizen served honorably in
an active duty status in the military, air, or naval
forces of the United States and died as a result of
injury or disease incurred in or aggravated by combat,
the alien shall be considered, for purposes of section
201(b) of the Immigration and Nationality Act (8 U.S.C.
1151(b)), to remain an immediate relative after the date
of the citizen's death (regardless of changes in age or
marital status thereafter), but only if the alien files
a petition under subparagraph (B) within 2 years after
such date.
(B) Petitions.--An alien described in subparagraph
(A) may file a petition with the Secretary of Homeland
Security for classification of the alien under section
201(b)(2)(A)(i) of the Immigration and Nationality Act
(8 U.S.C. 1151(b)(2)(A)(i)). For purposes of such Act,
such a petition shall be considered a petition filed
under section 204(a)(1)(A) of such Act (8 U.S.C.
1154(a)(1)(A)).
(3) Parents.--
(A) In general.--In the case of an alien who was the
parent of a citizen of the United States at the time of
the citizen's death, if the citizen served honorably in
an active duty status in the military, air, or naval
forces of the United States and died as a result of
injury or disease incurred in or aggravated by combat,
the alien shall be considered, for purposes of section
201(b) of the Immigration and Nationality Act (8 U.S.C.
1151(b)), to remain an immediate relative after the date
of the citizen's

[[Page 1694]]
117 STAT. 1694

death (regardless of changes in age or marital status
thereafter), but only if the alien files a petition
under subparagraph (B) within 2 years after such date.
(B) Petitions.--An alien described in subparagraph
(A) may file a petition with the Secretary of Homeland
Security for classification of the alien under section
201(b)(2)(A)(i) of the Immigration and Nationality Act
(8 U.S.C. 1151(b)(2)(A)(i)). For purposes of such Act,
such a petition shall be considered a petition filed
under section 204(a)(1)(A) of such Act (8 U.S.C.
1154(a)(1)(A)).
(C) Exception.--Notwithstanding section
201(b)(2)(A)(i) of the Immigration and Nationality Act
(8 U.S.C. 1151(b)(2)(A)(i)), for purposes of this
paragraph, a citizen described in subparagraph (A) does
not have to be 21 years of age for a parent to benefit
under this paragraph.

(b) Applications [NOTE: 8 USC 1151 note.]  for Adjustment of
Status by Surviving Spouses, Children, and Parents.--
(1) In general.--Notwithstanding subsections (a) and (c) of
section 245 of the Immigration and Nationality Act (8 U.S.C.
1255), any alien who was the spouse, child, or parent of an
alien described in paragraph (2), and who applied for adjustment
of status prior to the death described in paragraph (2)(B), may
have such application adjudicated as if such death had not
occurred.
(2) Alien described.--An alien is described in this
paragraph if the alien--
(A) served honorably in an active duty status in the
military, air, or naval forces of the United States;
(B) died as a result of injury or disease incurred
in or aggravated by combat; and
(C) was granted posthumous citizenship under section
329A of the Immigration and Nationality Act (8 U.S.C.
1440-1).

(c) Spouses [NOTE: 8 USC 1151 note.]  and Children of Lawful
Permanent Resident Aliens.--
(1) Treatment as immediate relatives.--
(A) In general.--A spouse or child of an alien
described in paragraph (3) who is included in a petition
for classification as a family-sponsored immigrant under
section 203(a)(2) of the Immigration and Nationality Act
(8 U.S.C. 1153(a)(2)) that was filed by such alien,
shall be considered (if the spouse or child has not been
admitted or approved for lawful permanent residence by
such date) a valid petitioner for immediate relative
status under section 201(b)(2)(A)(i) of the Immigration
and Nationality Act (8 U.S.C. 1151(b)(2)(A)(i)). Such
spouse or child shall be eligible for deferred action,
advance parole, and work authorization.
(B) Petitions.--An alien spouse or child described
in subparagraph (A) may file a petition with the
Secretary of Homeland Security for classification of the
alien under section 201(b)(2)(A)(i) of the Immigration
and Nationality Act (8 U.S.C. 1151(b)(2)(A)(i)). For
purposes of such Act, such a petition shall be
considered a petition filed under section 204(a)(1)(A)
of such Act (8 U.S.C. 1154(a)(1)(A)).

[[Page 1695]]
117 STAT. 1695

(2) Self-petitions.--Any [NOTE: Deadline.]  spouse or
child of an alien described in paragraph (3) who is not a
beneficiary of a petition for classification as a family-
sponsored immigrant may file a petition for such classification
under section 201(b)(2)(A)(i) of the Immigration and Nationality
Act (8 U.S.C. 1151(b)(2)(A)(i)) with the Secretary of Homeland
Security, but only if the spouse or child files a petition
within 2 years after such date. Such spouse or child shall be
eligible for deferred action, advance parole, and work
authorization.
(3) Alien described.--An alien is described in this
paragraph if the alien--
(A) served honorably in an active duty status in the
military, air, or naval forces of the United States;
(B) died as a result of injury or disease incurred
in or aggravated by combat; and
(C) was granted posthumous citizenship under section
329A of the Immigration and Nationality Act (8 U.S.C.
1440-1).

(d) Parents [NOTE: 8 USC 1151 note.]  of Lawful Permanent Resident
Aliens.--
(1) Self-petitions.--Any [NOTE: Deadline.]  parent of an
alien described in paragraph (2) may file a petition for
classification under section 201(b)(2)(A)(i) of the Immigration
and Nationality Act (8 U.S.C. 1151(b)(2)(A)(i)), but only if the
parent files a petition within 2 years after such date. For
purposes of such Act, such petition shall be considered a
petition filed under section 204(a)(1)(A) of such Act (8 U.S.C.
1154(a)(1)(A)). Such parent shall be eligible for deferred
action, advance parole, and work authorization.
(2) Alien described.--An alien is described in this
paragraph if the alien--
(A) served honorably in an active duty status in the
military, air, or naval forces of the United States;
(B) died as a result of injury or disease incurred
in or aggravated by combat; and
(C) was granted posthumous citizenship under section
329A of the Immigration and Nationality Act (8 U.S.C.
1440-1).

(e) Waiver of [NOTE: 8 USC 1151 note.]  Ground for
Inadmissibility.--In determining the admissibility of any alien accorded
an immigration benefit under this section for purposes of the
Immigration and Nationality Act, the ground for inadmissibility
specified in section 212(a)(4) of such Act (8 U.S.C. 1182(a)(4)) shall
not apply.

(f) Naturalization for Surviving Spouses.--
(1) In general.--Section 319(d) of the Immigration and
Nationality Act (8 U.S.C. 1430(d)) is amended by adding at the
end the following: ``For purposes of this subsection, the terms
`United States citizen' and `citizen spouse' include a person
granted posthumous citizenship under section 329A.''.
(2) Effective [NOTE: 8 USC 1430 note.] date.--The
amendment made by paragraph (1) shall apply with respect to
persons granted posthumous citizenship under section 329A of the
Immigration and Nationality Act (8 U.S.C. 1440-1) due to death
on or after September 11, 2001.

(g) Benefits to Survivors; Technical Amendment.--Section 329A of the
Immigration and Nationality Act (8 U.S.C. 1440-1) is amended--
(1) by striking subsection (e); and

[[Page 1696]]
117 STAT. 1696

(2) by striking ``Attorney General'' each place that term
appears and inserting ``Secretary of Homeland Security''.

(h) Technical and Conforming Amendments.--Section 319(d) of the
Immigration and Nationality Act (8 U.S.C. 1430(d)) is amended--
(1) by inserting ``, child, or parent'' after ``surviving
spouse'';
(2) by inserting ``, parent, or child'' after ``whose
citizen spouse''; and
(3) by striking ``who was living'' and inserting ``who, in
the case of a surviving spouse, was living''.

SEC. 1704. EXPEDITED PROCESS FOR GRANTING POSTHUMOUS CITIZENSHIP TO
MEMBERS OF THE ARMED FORCES.

Section 329A of the Immigration and Nationality Act (8 U.S.C. 1440-
1) is amended--
(1) by striking subsection (c) and inserting the following:

``(c) Requests for Posthumous Citizenship.--
``(1) In general.--A request for the granting of posthumous
citizenship to a person described in subsection (b) may be filed
on behalf of that person--
``(A) upon locating the next-of-kin, and if so
requested by the next-of-kin, by the Secretary of
Defense or the Secretary's designee with the Bureau of
Citizenship and Immigration Services in the Department
of Homeland Security immediately upon the death of that
person; or
``(B) by the next-of-kin.
``(2) Approval.--The Director of the Bureau of Citizenship
and Immigration Services shall approve a request for posthumous
citizenship filed by the next-of-kin in accordance with
paragraph (1)(B) if--
``(A) [NOTE: Deadline.] the request is filed not
later than 2 years after--
``(i) the date of enactment of this section;
or
``(ii) the date of the person's death;
whichever date is later;
``(B) the request is accompanied by a duly
authenticated certificate from the executive department
under which the person served which states that the
person satisfied the requirements of paragraphs (1) and
(2) of subsection (b); and
``(C) the Director finds that the person satisfied
the requirement of subsection (b)(3).''; and
(2) by striking subsection (d) and inserting the following:

``(d) Documentation of Posthumous Citizenship.--If the Director of
the Bureau of Citizenship and Immigration Services approves the request
referred to in subsection (c), the Director shall send to the next-of-
kin of the person who is granted citizenship, a suitable document which
states that the United States considers the person to have been a
citizen of the United States at the time of the person's death.''.

SEC. 1705. EFFECTIVE DATE.

(a) In General.--Except [NOTE: 8 USC 1439 note.]  as provided in
subsection (b), this title and the amendments made by this title shall
take effect as if enacted on September 11, 2001.

(b) Exception.--The [NOTE: 8 USC 1439 note.]  amendments made by
sections 1701(b) (relating to naturalization fees) and 1701(d) (relating
to naturalization proceedings overseas) shall take effect on October 1,
2004.

[[Page 1697]]
117 STAT. 1697

DIVISION B--MILITARY [NOTE: Military Construction Authorization Act for
Fiscal Year 2004.] CONSTRUCTION AUTHORIZATIONS

SEC. 2001. SHORT TITLE.

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

TITLE XXI--ARMY

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

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

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



Army: Inside the United States
------------------------------------------------------------------------
Installation or
State                      location             Amount
------------------------------------------------------------------------
Alabama........................  Redstone Arsenal.....        $5,500,000
Alaska.........................  Fort Richardson......        $2,500,000
Fort Wainwright......      $138,800,000
Colorado.......................  Fort Carson..........        $2,150,000
Georgia........................  Fort Benning.........       $34,500,000
Fort Gordon..........        $4,350,000
Fort Stewart/Hunter        $113,500,000
Army Air Field......
Hawaii.........................  Helemano Military            $1,400,000
Reservation.........
Schofield Barracks...      $128,100,000
Kansas.........................  Fort Leavenworth.....      $115,000,000
Fort Riley...........       $40,000,000
Kentucky.......................  Fort Knox............       $13,500,000
Louisiana......................  Fort Polk............       $72,000,000
Maryland.......................  Fort Meade...........        $9,600,000
Massachusetts..................  Soldier Systems              $5,500,000
Center, Natick......
New Jersey.....................  Naval Air Engineering        $2,250,000
Center, Lakehurst...
Picatinny Arsenal....        $8,000,000
New York.......................  Fort Drum............      $130,700,000
North Carolina.................  Fort Bragg...........      $125,400,000
Oklahoma.......................  Fort Sill............        $5,500,000
Texas..........................  Fort Bliss...........        $5,400,000
Fort Hood............       $49,800,000
Virginia.......................  Fort Belvoir.........        $7,000,000
Fort Lee.............        $3,850,000
Fort Myer............        $9,000,000

[[Page 1698]]
117 STAT. 1698


Washington.....................  Fort Lewis...........        $3,900,000
-----------------
Total............    $1,037,200,000
------------------------------------------------------------------------



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



Army: Outside the United States
------------------------------------------------------------------------
Installation or
Country                      location             Amount
------------------------------------------------------------------------
Germany........................  Grafenwoehr............     $76,000,000
Vilseck................     $31,000,000
Italy..........................  Aviano Air Base........     $28,500,000
Livorno................     $22,000,000
Korea..........................  Camp Humphreys.........     $65,000,000
Kwajalein......................  Kwajalein..............      $9,400,000
---------------
Total..................    $231,900,000
------------------------------------------------------------------------

SEC. 2102. FAMILY HOUSING.

(a) Construction and Acquisition.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2104(a)(5)(A), the Secretary of the Army may construct or acquire family
housing units (including land acquisition and supporting facilities) at
the installations, for the purposes, and in the amounts set forth in the
following table:



Army: Family Housing
----------------------------------------------------------------------------------------------------------------
State or Country                Installation or location             Purpose               Amount
----------------------------------------------------------------------------------------------------------------
Alaska..................................  Fort Wainwright............  140 Units..................   $64,000,000
Arizona.................................  Fort Huachuca..............  220 Units..................   $41,000,000
Kansas..................................  Fort Riley.................   62 Units..................   $16,700,000
Kentucky................................  Fort Knox..................  178 Units..................   $41,000,000
New Mexico..............................  White Sands Missile Range..   58 Units..................   $14,600,000
Oklahoma................................  Fort Sill..................  120 Units..................   $25,373,000
Virginia................................  Fort Lee...................   90 Units..................   $18,000,000
-------------
Total:.................  $220,673,000
----------------------------------------------------------------------------------------------------------------

(b) Planning and Design.--Using amounts appropriated pursuant to the
authorization of appropriations in section 2104(a)(5)(A), the Secretary
of the Army may carry out architectural and engineering services and
construction design activities with respect to the construction or
improvement of family housing units in an amount not to exceed
$34,488,000.

[[Page 1699]]
117 STAT. 1699

SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

Subject to section 2825 of title 10, United States Code, and using
amounts appropriated pursuant to the authorization of appropriations in
section 2104(a)(5)(A), the Secretary of the Army may improve existing
military family housing units in an amount not to exceed $130,430,000.

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

(a) In General.--Funds are hereby authorized to be appropriated for
fiscal years beginning after September 30, 2003, for military
construction, land acquisition, and military family housing functions of
the Department of the Army in the total amount of $2,874,856,000, as
follows:
(1) For military construction projects inside the United
States authorized by section 2101(a), $825,200,000.
(2) For military construction projects outside the United
States authorized by section 2101(b), $213,000,000.
(3) For unspecified minor construction projects authorized
by section 2805 of title 10, United States Code, $32,606,000.
(4) For architectural and engineering services and
construction design under section 2807 of title 10, United
States Code, $126,833,000.
(5) For military family housing functions:
(A) For construction and acquisition, planning and
design, and improvement of military family housing and
facilities, $383,591,000.
(B) For support of military family housing
(including the functions described in section 2833 of
title 10, United States Code), $1,043,026,000.
(6) For the construction of phase 3 of Saddle Access Road,
Pohakoula Training Facility, Hawaii, authorized by section
2101(a) of the Military Construction Authorization Act for
Fiscal Year 2001 (division B of the Floyd D. Spence National
Defense Authorization Act for Fiscal Year 2001 (as enacted into
law by Public Law 106-398; 114 Stat. 1654A-389)), as amended by
section 2107 of this Act, $17,000,000.
(7) For the construction of phase 4 of a barracks complex,
Butner Road, at Fort Bragg, North Carolina, authorized by
section 2101(a) of the Military Construction Authorization Act
for Fiscal Year 2001 (division B of the Floyd D. Spence National
Defense Authorization Act for Fiscal Year 2001, as enacted into
law by Public Law 106-398; 114 Stat. 1654A-389), as amended by
section 2107 of this Act, $38,000,000.
(8) For the construction of phase 3 of a barracks complex, D
Street, at Fort Richardson, Alaska, authorized by section
2101(a) of the Military Construction Authorization Act for
Fiscal Year 2002 (division B of Public Law 107-107; 115 Stat.
1280), as amended by section 2106 of this Act, $33,000,000.
(9) For the construction of phase 3 of a barracks complex,
17th and B Streets, at Fort Lewis, Washington, authorized by
section 2101(a) of the Military Construction Authorization Act
for Fiscal Year 2002 (division B of Public Law 107-107; 115
Stat. 1280), $48,000,000.
(10) For the construction of phase 2 of a barracks complex,
Capron Road, at Schofield Barracks, Hawaii, authorized by
section 2101(a) of the Military Construction Authorization Act

[[Page 1700]]
117 STAT. 1700

for Fiscal Year 2003 (division B of Public Law 107-314; 116
Stat. 2681), $49,000,000.
(11) For the construction of phase 2 of a combined arms
collective training facility at Fort Riley, Kansas, authorized
by section 2101(a) of the Military Construction Authorization
Act for Fiscal Year 2003 (division B of Public Law 107-314; 116
Stat. 2681), as amended by section 2105 of this Act,
$13,600,000.
(12) For the construction of phase 2 of a barracks complex,
Range Road, at Fort Campbell, Kentucky, authorized by section
2101(a) of the Military Construction Authorization Act for
Fiscal Year 2003 (division B of Public Law 107-314; 116 Stat.
2681), $49,000,000.
(13) For the construction of phase 2 of a consolidated
maintenance complex at Fort Sill, Oklahoma, authorized by
section 2101(a) of the Military Construction Authorization Act
for Fiscal Year 2003 (division B of Public Law 107-314; 116
Stat. 2681), $13,000,000.

(b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title
10, United States Code, and any other cost variation authorized by law,
the total cost of all projects carried out under section 2101 of this
Act may not exceed the sum of the following:
(1) The total amount authorized to be appropriated under
paragraphs (1) and (2) of subsection (a).
(2) $32,000,000 (the balance of the amount authorized under
section 2101(a) for construction of a barracks, Fort Stewart/
Hunter Army Airfield, Georgia).
(3) $87,000,000 (the balance of the amount authorized under
section 2101(a) for construction of the Lewis and Clark
Instructional Facility, Fort Leavenworth, Kansas).
(4) $43,000,000 (the balance of the amount authorized under
section 2101(a) for construction of a barracks complex, Wheeler
Army Airfield, Fort Drum, New York).
(5) $50,000,000 (the balance of the amount authorized under
section 2101(a) for construction of a barracks complex, Bastogne
Drive, Fort Bragg, North Carolina).
(6) $18,900,000 (the balance of the amount authorized under
section 2101(b) for construction of a barracks complex, Vilseck,
Germany).

(c) Adjustment.--The total amount authorized to be appropriated
pursuant to paragraphs (1) through (13) of subsection (a) is the sum of
the amounts authorized to be appropriated in such paragraphs, reduced by
$10,000,000, which represents corrections to Department of the Army
estimates for military family housing support.

SEC. 2105. TERMINATION OR MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN
FISCAL YEAR 2003 PROJECTS.

(a) Modification of Inside the United States Project.--The table in
subsection (a) of section 2101 of the Military Construction
Authorization Act for Fiscal Year 2003 (division B of Public Law 107-
314; 116 Stat. 2681) is amended--
(1) in the item relating to Fort Riley, Kansas, by striking
``$81,095,000'' in the amount column and inserting
``$81,495,000''; and

[[Page 1701]]
117 STAT. 1701

(2) by striking the amount identified as the total in the
amount column and inserting ``$1,156,167,000''.

(b) Termination of Outside the United States Projects.--(1) The
table in subsection (b) of such section is amended--
(A) by striking the item relating to Area Support Group,
Bamberg, Germany;
(B) by striking the item relating to Coleman Barracks,
Germany;
(C) by striking the item relating to Darmstadt, Germany;
(D) by striking the item relating to Mannheim, Germany;
(E) by striking the item relating to Schweinfurt, Germany;
(F) by striking the item relating to Camp Castle, Korea;
(G) by striking the item relating to Camp Hovey, Korea;
(H) by striking the item relating to K16 Airfield, Korea;
and
(I) by striking the amount identified as the total in the
amount column and inserting ``$216,266,000''.

(2) The authorization to carry out a military construction project
at Camp Bonifas, Korea, provided by section 130 of the Military
Construction Appropriation Act, 2003 (Public Law 107-249; 116 Stat.
1586), using funds originally appropriated for a military construction
project at Camp Kyle, Korea, is hereby rescinded.
(c) Termination of Family Housing Project Outside the United
States.--The table in section 2102(a) of the Military Construction
Authorization Act for Fiscal Year 2003 (116 Stat. 2683) is amended--
(1) by striking the item relating to Yongsan, Korea; and
(2) by striking the amount identified as the total in the
amount column and inserting ``$23,852,000''.

(d) Improvements to Military Family Housing Units.--Section 2103 of
that Act (116 Stat. 2683) is amended by striking ``$239,751,000'' and
inserting ``$178,400,000''.
(e) Conforming Amendments.--Section 2104 of that Act (116 Stat.
2683) is amended--
(1) subsection (a)--
(A) in the matter preceding paragraph (1), by
striking ``$3,104,176,000'' and inserting
``$2,901,875,000'';
(B) in paragraph (2), by striking ``$354,116,000''
and inserting ``$216,266,000''; and
(C) in paragraph (6)(A), by striking
``$282,356,000'' and inserting ``$217,905,000''; and
(2) in subsection (b)(4), by striking ``$13,200,000'' and
inserting ``$13,600,000''.

SEC. 2106. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
2002 PROJECTS.

(a) Modification of Inside the United States Project.--The table in
section 2101(a) of the Military Construction Authorization Act for
Fiscal Year 2002 (division B of Public Law 107-107; 115 Stat. 1281), as
amended by section 2105 of the Military Construction Authorization Act
for Fiscal Year 2003 (division B of Public Law 107-314; 116 Stat. 2685),
is further amended--
(1) in the item relating to Fort Richardson, Alaska, by
striking ``$115,000,000'' in the amount column and inserting
``$
117,000,000''; and
(2) by striking the amount identified as the total in the
amount column and inserting ``$1,364,750,000''.

[[Page 1702]]
117 STAT. 1702

(b) Modification of Outside the United States Projects.--The table
in section 2101(b) of the Military Construction Authorization Act for
Fiscal Year 2002 (115 Stat. 1282) is amended--
(1) in the item relating to Camp Hovey, Korea, by striking
``$35,750,000'' in the amount column and inserting
``$24,980,000'';
(2) in the item relating to Camp Stanley, Korea, by striking
``$28,000,000'' in the amount column and inserting
``$14,770,000''; and
(3) by striking the amount identified as the total in the
amount column and inserting ``$236,343,000''.

(c) Conforming Amendments.--Section 2104 of that Act (115 Stat.
1283) is amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1), by
striking ``$3,155,594,000'' and inserting
``$3,131,594,000''; and
(B) in paragraph (2), by striking ``$260,343,000''
and inserting ``$236,343,000''; and
(2) in subsection (b)(2), by striking ``$52,000,000'' and
inserting ``$54,000,000''.

SEC. 2107. TERMINATION OR MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN
FISCAL YEAR 2001 PROJECTS.

(a) Modification of Inside the United States Projects.--The table in
section 2101(a) of the Military Construction Authorization Act for
Fiscal Year 2001 (division B of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into law by Public
Law 106-398; 114 Stat. 1654A-389)), as amended by section 2105(a) of the
Military Construction Authorization Act for Fiscal Year 2002 (division B
of Public Law 107-107; 115 Stat. 1285), is further amended--
(1) in the item relating to Pohakoula Training Facility,
Hawaii, by striking ``$32,000,000'' in the amount column and
inserting ``$42,000,000'';
(2) in the item relating to Fort Bragg, North Carolina, by
striking ``$222,200,000'' in the amount column and inserting
``$255,200,000''; and
(3) by striking the amount identified as the total in the
amount column and inserting ``$669,374,000''.

(b) Termination of Outside the United States Project.--The table in
section 2101(b) of the Military Construction Authorization Act for
Fiscal Year 2001 (114 Stat. 1654A-390), as amended by section 2106 of
the Military Construction Authorization Act for Fiscal Year 2003
(division B of Public Law 107-314; 116 Stat. 2685), is further amended--
(1) by striking the item relating to Camp Stanley, Korea;
and
(2) by striking the amount identified as the total in the
amount column and inserting ``$100,350,000''.

(c) Conforming Amendments.--Section 2104 of the Military
Construction Authorization Act for Fiscal Year 2001 (114 Stat. 1654A-
391), as amended by section 2105(b) of the Military Construction
Authorization Act for Fiscal Year 2002 (division B of Public Law 107-
107; 115 Stat. 1285), is further amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1), by
striking ``$1,935,744,000'' and inserting
``$1,916,244,000''; and

[[Page 1703]]
117 STAT. 1703

(B) in paragraph (2), by striking ``$119,850,000''
and inserting ``$100,350,000''; and
(2) in subsection (b)--
(A) in paragraph (5), by striking ``$104,000,000''
and inserting ``$137,000,000''; and
(B) in paragraph (7), by striking ``$20,000,000''
and inserting ``$30,000,000''.

TITLE XXII--NAVY

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

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

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



Navy: Inside the United States
------------------------------------------------------------------------
Installation or
State                      location              Amount
------------------------------------------------------------------------
Arizona........................  Marine Corps Air            $22,230,000
Station, Yuma.
California.....................  Marine Corps Air-           $42,090,000
Ground Task Force
Training Center,
Twentynine  Palms....
Marine Corps Air             $7,640,000
Station, Miramar.....
Marine Corps Base,          $73,580,000
Camp Pendleton.......
Naval Air Facility,         $18,940,000
San Clemente Island..
Naval Air Station,          $34,510,000
Lemoore..............
Naval Air Station,          $49,240,000
North Island.........
Naval Air Warfare            $6,150,000
Center, Point Mugu,
San Nicholas Island..
Naval Postgraduate          $42,560,000
School, Monterey.....
Naval Station, San          $49,710,000
Diego.
Connecticut....................  Naval Submarine Base,        $3,120,000
New London...........
District of Columbia...........  Marine Corps Barracks.       $1,550,000
Florida........................  Blount Island              $115,711,000
(Jacksonville).
Naval Air Station,           $9,190,000
Jacksonville.........
Naval Air Station,           $4,830,000
Whiting Field, Milton
Naval Surface Warfare        $9,550,000
Center, Coastal
Systems Station,
Panama City..........
Georgia........................  Strategic Weapons           $11,510,000
Facility Atlantic,
Kings Bay............
Hawaii.........................  Fleet and Industrial        $32,180,000
Supply Center, Pearl
Harbor...............
Naval Magazine,              $6,320,000
Lualualei.
Naval Shipyard, Pearl        $7,010,000
Harbor.
Illinois.......................  Naval Training Center,     $137,120,000
Great Lakes..........

[[Page 1704]]
117 STAT. 1704


Indiana........................  Naval Surface Warfare       $11,400,000
Center, Crane........
Maryland.......................  Naval Air Warfare           $28,270,000
Center, Patuxent
River................
Naval Surface Warfare       $14,850,000
Center, Indian Head..
Mississippi....................  Naval Air Station,           $4,570,000
Meridian.
New Jersey.....................  Naval Air Warfare           $20,681,000
Center, Lakehurst....
Naval Weapons Station,     $123,720,000
Earle.
North Carolina.................  Marine Corps Air             $6,240,000
Station, New River...
Marine Corps Base,          $29,450,000
Camp Lejeune.........
Rhode Island...................  Naval Station, Newport      $18,690,000
Naval Undersea Warfare      $10,890,000
Center, Newport......
South Carolina.................  Naval Weapons Station,       $2,350,000
Charleston...........
Texas..........................  Naval Air Station,           $5,400,000
Corpus Christi.
Naval Station,               $7,070,000
Ingleside.
Virginia.......................  Henderson Hall,              $1,970,000
Arlington.
Marine Corps Combat         $18,120,000
Development Command,
Quantico.............
Naval Air Station,          $10,000,000
Oceana.
Naval Amphibious Base,       $3,810,000
Little Creek.........
Naval Space Command         $24,020,000
Center, Dahlgren.....
Naval Station, Norfolk     $182,240,000
Norfolk Naval               $17,770,000
Shipyard, Portsmouth.
Washington.....................  Naval Air Station,           $4,650,000
Whidbey Island.......
Naval Magazine, Indian       $2,240,000
Island.
Naval Shipyard, Puget        $6,020,000
Sound.
Naval Submarine Base,       $33,820,000
Bangor.
Strategic Weapons            $6,530,000
Facility Pacific,
Bangor...............
Various Locations..............  Various Locations,          $56,360,000
CONUS.
----------------
Total.............   $1,335,872,000
------------------------------------------------------------------------

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



Navy: Outside the United States
------------------------------------------------------------------------
Installation or
Country                      location             Amount
------------------------------------------------------------------------
Bahrain........................  Naval Support Activity,     $18,030,000
Bahrain...............
Guam...........................  Commander, United            $1,700,000
States Naval Forces,
Marianas..............
Italy..........................  Naval Air Station,          $34,070,000
Sigonella.............
Naval Support Activity,     $39,020,000
La Maddalena..........
---------------
Total..............     $92,820,000
------------------------------------------------------------------------

SEC. 2202. FAMILY HOUSING.

(a) Construction and Acquisition.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2204(a)(5)(A), the Secretary of the Navy may construct or acquire

[[Page 1705]]
117 STAT. 1705

family housing units (including land acquisition and supporting
facilities) at the installations, for the purposes, and in the amounts
set forth in the following table:



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

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

SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

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

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

(a) In General.--Funds are hereby authorized to be appropriated for
fiscal years beginning after September 30, 2003, for military
construction, land acquisition, and military family housing functions of
the Department of the Navy in the total amount of $2,267,729,000, as
follows:
(1) For military construction projects inside the United
States authorized by section 2201(a), $1,001,092,000.
(2) For military construction projects outside the United
States authorized by section 2201(b), $92,820,000.
(3) For unspecified minor construction projects authorized
by section 2805 of title 10, United States Code, $14,585,000.
(4) For architectural and engineering services and
construction design under section 2807 of title 10, United
States Code, $71,001,000.
(5) For military family housing functions:
(A) For construction and acquisition, planning and
design, and improvement of military family housing and
facilities, $184,193,000.
(B) For support of military family housing
(including functions described in section 2833 of title
10, United States Code), $845,078,000.
(6) For construction of a bachelors enlisted quarters
shipboard ashore at Naval Shipyard Norfolk, Virginia, authorized
by section 2201(a) of the Military Construction Authorization

[[Page 1706]]
117 STAT. 1706

Act for Fiscal Year 2003 (division B of Public Law 107-314; 116
Stat. 2687), $46,730,000.
(7) For construction of phase III of a combined propulsion
and explosives lab at Naval Air Warfare Center, China Lake,
California, authorized by section 2201(a) of the Military
Construction Authorization Act for Fiscal Year 2002 (division B
of Public Law 107-107; 115 Stat. 1289), as amended by section
2206 of this Act, $12,230,000.

(b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title
10, United States Code, and any other cost variation authorized by law,
the total cost of all projects carried out under section 2201 of this
Act may not exceed the sum of the following:
(1) The total amount authorized to be appropriated under
paragraphs (1) and (2) of subsection (a).
(2) $25,690,000 (the balance of the amount authorized under
section 2101(a) for construction of a tertiary sewage treatment
facility, Marine Corp Base, Camp Pendleton, California).
(3) $58,190,000 (the balance of the amount authorized under
section 2101(a) for construction of a battle station training
facility, Naval Training Center, Great Lakes, Illinois).
(4) $96,980,000 (the balance of the amount authorized under
section 2101(a) for construction of a general purpose berthing
pier, Naval Weapons Station Earle, New Jersey).
(5) $118,170,000 (the balance of the amount authorized under
section 2101(a) for construction of the Pier 11 replacement,
Naval Station, Norfolk, Virginia).
(6) $28,750,000 (the balance of the amount authorized under
section 2101(a) for construction of outlying landing field
facilities, various locations in the continental United States).

(c) Adjustment.--The total amount authorized to be appropriated
pursuant to paragraphs (1) through (7) of subsection (a) is the sum of
the amounts authorized to be appropriated in such paragraphs, reduced by
$10,000,000, which represents corrections to Department of the Navy
estimates for military family housing support.

SEC. 2205. TERMINATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
2003 PROJECTS.

(a) Termination of Inside the United States Projects.--The table in
subsection (a) of section 2201 of the Military Construction
Authorization Act for Fiscal Year 2003 (division B of Public Law 107-
314; 116 Stat. 2686) is amended--
(1) by striking the item relating to Naval Air Warfare
Center, China Lake, California;
(2) by striking the item relating to Marine Corps Air
Station, Cherry Point, North Carolina; and
(3) by striking the amount identified as the total in the
amount column and inserting ``$1,068,223,000''.

(b) Termination of Outside the United States Projects.--The table in
subsection (b) of such section is amended--
(1) by striking the item relating to Naval Support Activity,
Joint Headquarters Command, Larissa, Greece;
(2) by striking the item relating to Naval Air Station,
Keflavik, Iceland; and

[[Page 1707]]
117 STAT. 1707

(3) by striking the amount identified as the total in the
amount column and inserting ``$129,100,000''.

(c) Termination of Military Family Housing Project.--The table in
section 2202(a) of that Act (116 Stat. 2688) is amended--
(1) by striking the item relating to the Joint Maritime
Facility, St. Mawgan, United Kingdom; and
(2) by striking the amount identified as the total in the
amount column and inserting ``$210,195,000''.

(d) Conforming Amendments.--Section 2204 of that Act (116 Stat.
2688) is amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1), by
striking ``$2,576,381,000'' and inserting
``$2,530,097,000'';
(B) in paragraph (1), by striking ``$1,025,598,000''
and inserting ``$1,009,458,000'';
(C) in paragraph (2), by striking ``$148,250,000''
and inserting ``$126,530,000'';
(D) in paragraph (5)(A), by striking
``$379,468,000'' and inserting ``$360,944,000''; and
(E) by adding at the end the following new
paragraph:
``(7) For construction of phase II of a combined propulsion
and explosives lab at Naval Air Warfare Center, China Lake,
California, authorized by section 2201(a) of the Military
Construction Authorization Act for Fiscal Year 2002 (division B
of Public Law 107-107; 115 Stat. 1289), as amended by section
2206 of the Military Construction Authorization Act for Fiscal
Year 2004, $10,100,000.''; and
(2) in subsection (c), by striking ``through (6)'' and
inserting ``through (7)''.

SEC. 2206. TERMINATION OR MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN
FISCAL YEAR 2002 PROJECTS.

(a) Modification of Inside the United States Project.--The table in
section 2201(a) of the Military Construction Authorization Act for
Fiscal Year 2002 (division B of Public Law 107-107; 115 Stat. 1286), as
amended by section 2205 of the Bob Stump National Defense Authorization
Act for Fiscal Year 2003 (Public Law 108-314; 116 Stat. 2689), is
amended--
(1) in the item relating to Naval Air Warfare Center, China
Lake, California, by striking ``$30,200,000'' in the amount
column and inserting ``$32,391,000''; and
(2) by striking the amount identified as the total in the
amount column and inserting ``$1,061,221,000''.

(b) Termination of Outside the United States Project.--The table in
section 2201(b) of the Military Construction Authorization Act for
Fiscal Year 2002 (division B of Public Law 107-107; 115 Stat. 1287) is
amended--
(1) by striking the item relating to Naval Support Activity,
Joint Headquarters Command, Larissa, Greece; and
(2) by striking the amount identified as the total in the
amount column and inserting ``$35,430,000''.

(c) Conforming Amendments.--Section 2204 of that Act (115 Stat.
1288) is amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1), by
striking ``$2,366,742,000'' and inserting
``$2,354,502,000''; and

[[Page 1708]]
117 STAT. 1708

(B) in paragraph (2), by striking ``$47,670,000''
and inserting ``$35,430,000''; and
(2) in subsection (b)(3), by striking ``$20,100,000'' and
inserting ``$22,291,000''.

TITLE XXIII--AIR FORCE

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

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

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



Air Force: Inside the United States
------------------------------------------------------------------------
Installation or
State                       location             Amount
------------------------------------------------------------------------
Alabama........................  Maxwell Air Force Base.     $26,000,000
Alaska.........................  Eielson Air Force Base.     $49,061,000
Elmendorf Air Force          $2,000,000
Base.
Arizona........................  Davis-Monthan Air Force     $10,062,000
Base..................
Luke Air Force Base....     $14,300,000
Arkansas.......................  Little Rock Air Force        $3,695,000
Base.
California.....................  Beale Air Force Base...     $22,750,000
Edwards Air Force Base.     $26,744,000
Los Angeles Air Force        $5,000,000
Base.
Colorado.......................  Buckley Air Force Base.      $7,019,000
Peterson Air Force Base     $10,200,000
Florida........................  Hurlburt Field.........     $27,200,000
Tyndall Air Force Base.     $15,820,000
Georgia........................  Robins Air Force Base..     $37,164,000
Hawaii.........................  Hickam Air Force Base..     $80,096,000
Idaho..........................  Mountain Home Air Force     $15,245,000
Base..................
Illinois.......................  Scott Air Force Base...      $1,900,000
Mississippi....................  Columbus Air Force Base      $7,700,000
Keesler Air Force Base.      $2,900,000
Missouri.......................  Whiteman Air Force Base     $11,600,000
Nevada.........................  Nellis Air Force Base..     $11,800,000
New Jersey.....................  McGuire Air Force Base.     $11,861,000
New Mexico.....................  Cannon Air Force Base..      $9,000,000
Kirtland Air Force Base     $11,247,000
Tularosa Radar Test          $3,600,000
Site.
North Carolina.................  Pope Air Force Base....     $24,499,000
Seymour Johnson Air         $22,622,000
Force Base............
North Dakota...................  Minot Air Force Base...     $12,690,000
Ohio...........................  Wright-Patterson Air        $21,100,000
Force Base............
Oklahoma.......................  Altus Air Force Base...      $1,167,000
Tinker Air Force Base..     $19,444,000
Vance Air Force Base...     $15,000,000
South Carolina.................  Charleston Air Force         $9,042,000
Base.
Shaw Air Force Base....      $8,500,000

[[Page 1709]]
117 STAT. 1709


South Dakota...................  Ellsworth Air Force          $9,300,000
Base.
Texas..........................  Goodfellow Air Force        $20,335,000
Base.
Lackland Air Force Base     $57,360,000
Laughlin Air Force Base     $12,400,000
Randolph Air Force Base     $13,600,000
Sheppard Air Force Base     $38,167,000
Utah...........................  Hill Air Force Base....     $21,748,000
Virginia.......................  Langley Air Force Base.     $25,474,000
Washington.....................  McChord Air Force Base.     $19,000,000
---------------
Total..................    $775,412,000
------------------------------------------------------------------------

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



Air Force: Outside the United States
------------------------------------------------------------------------
Installation or
Country                      location             Amount
------------------------------------------------------------------------
Germany........................  Ramstein Air Base......     $35,616,000
Spangdahlem Air Base...      $5,411,000
Italy..........................  Aviano Air Base........     $14,025,000
Korea..........................  Kunsan Air Base........      $7,059,000
Osan Air Base..........     $16,638,000
Portugal.......................  Lajes Field, Azores....      $4,086,000
United Kingdom.................  Royal Air Force,            $42,487,000
Lakenheath.
Royal Air Force,            $10,558,000
Mildenhall.
Wake Island....................  Wake Island............     $24,000,000
---------------
Total..............    $159,880,000
------------------------------------------------------------------------

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



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

SEC. 2302. FAMILY HOUSING.

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



[[Page 1710]]
117 STAT. 1710



Air Force: Family Housing
----------------------------------------------------------------------------------------------------------------
State or Country                Installation or location             Purpose               Amount
----------------------------------------------------------------------------------------------------------------
Arizona.................................  Davis-Monthan Air Force       93 Units..................   $19,357,000
Base......................
California..............................  Travis Air Force Base......   56 Units..................   $12,723,000
Delaware................................  Dover Air Force Base.......  112 Units..................   $19,601,000
Florida.................................  Eglin Air Force Base.......  279 Units..................   $32,166,000
Idaho...................................  Mountain Home Air Force      186 Units..................   $37,126,000
Base......................
Maryland................................  Andrews Air Force Base.....   50 Units..................   $20,233,000
Missouri................................  Whiteman Air Force Base....  100 Units..................   $18,221,000
Montana.................................  Malmstrom Air Force Base...   94 Units..................   $19,368,000
North Carolina..........................  Seymour Johnson Air Force    138 Units..................   $18,336,000
Base......................
North Dakota............................  Grand Forks Air Force Base.  144 Units..................   $29,550,000
Minot Air Force Base.......  200 Units..................   $41,
117,000
South Dakota............................  Ellsworth Air Force Base...   75 Units..................   $16,240,000
Texas...................................  Dyess Air Force Base.......  116 Units..................   $19,973,000
Randolph Air Force Base....   96 Units..................   $13,754,000
Korea...................................  Osan Air Base..............  111 Units..................   $44,765,000
Portugal................................  Lajes Field, Azores........   42 Units..................   $13,428,000
United Kingdom..........................  Royal Air Force, Lakenheath   89 Units..................   $23,640,000
-------------
Total..................  $399,598,000
----------------------------------------------------------------------------------------------------------------

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

SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

Subject to section 2825 of title 10, United States Code, and using
amounts appropriated pursuant to the authorization of appropriations in
section 2304(a)(6)(A), the Secretary of the Air Force may improve
existing military family housing units in an amount not to exceed
$227,979,000.

SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

(a) In General.--Funds are hereby authorized to be appropriated for
fiscal years beginning after September 30, 2003, for military
construction, land acquisition, and military family housing functions of
the Department of the Air Force in the total amount of $2,550,890,000,
as follows:
(1) For military construction projects inside the United
States authorized by section 2301(a), $766,932,000.
(2) For military construction projects outside the United
States authorized by section 2301(b), $159,880,000.
(3) For military construction projects at unspecified
worldwide locations authorized by section 2301(c), $28,981,000.
(4) For unspecified minor construction projects authorized
by section 2805 of title 10, United States Code, $16,180,000.

[[Page 1711]]
117 STAT. 1711

(5) For architectural and engineering services and
construction design under section 2807 of title 10, United
States Code, $95,778,000.
(6) For military housing functions:
(A) For construction and acquisition, planning and
design, and improvement of military family housing and
facilities, $657,065,000.
(B) For support of military family housing
(including functions described in section 2833 of title
10, United States Code), $826,074,000.

(b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title
10, United States Code, and any other cost variation authorized by law,
the total cost of all projects carried out under section 2301 of this
Act may not exceed the total amount authorized to be appropriated under
paragraphs (1), (2), and (3) of subsection (a).
(c) Adjustment.--The total amount authorized to be appropriated
pursuant to paragraphs (1) through (6) of subsection (a) is the sum of
the amounts authorized to be appropriated in such paragraphs, reduced by
$10,000,000, which represents corrections to Department of the Air Force
estimates for military family housing support.

SEC. 2305. TERMINATION OR MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN
FISCAL YEAR 2003 PROJECTS.

(a) Termination of Classified Location Project.--Section 2301(c) of
the Military Construction Authorization Act for Fiscal Year 2003
(division B of Public Law 107-314; 116 Stat. 2691) is amended by
striking ``$24,993,000'' both places it appears and inserting
``$1,993,000''.
(b) Improvements to Military Family Housing Units.--Section 2303 of
that Act (116 Stat. 2693) is amended by striking ``$226,068,000'' and
inserting ``$206,721,000''.
(c) Conforming Amendments.--Section 2304(a) of that Act (116 Stat.
2693) is amended--
(1) in the matter preceding paragraph (1), by striking
``$2,633,738,000'' and inserting ``$2,591,391,000'';
(2) in paragraph (3), by striking ``$24,993,000'' and
inserting ``$1,993,000''; and
(3) in paragraph (6)(A), by striking ``$689,824,000'' and
inserting ``$670,477,000''.

TITLE XXIV--DEFENSE AGENCIES

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

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

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

[[Page 1712]]
117 STAT. 1712

and locations inside the United States, and in the amounts, set forth in
the following table:



Defense Agencies: Inside the United States
------------------------------------------------------------------------
Installation or
Agency                      location             Amount
------------------------------------------------------------------------
Defense Education Activity.....  Marine Corps Base, Camp     $15,259,000
Lejeune, North
Carolina..............
Defense Logistics Agency.......  Defense Distribution        $27,700,000
Depot, New Cumberland,
Pennsylvania..........
Eglin Air Force Base,        $4,800,000
Florida...............
Eielson Air Force Base,     $17,000,000
Alaska................
Hickam Air Force Base,      $14,100,000
Hawaii................
Hurlburt Field, Florida      $4,100,000
Offutt Air Force Base,      $13,400,000
Nebraska..............
Langley Air Force Base,     $13,000,000
Virginia..............
Laughlin Air Force           $4,688,000
Base, Texas...........
McChord Air Force Base,      $8,100,000
Washington............
Naval Air Station,           $9,200,000
Kingsville, Texas.....
Nellis Air Force Base,      $12,800,000
Nevada................
Missile Defense Agency.........  Redstone Arsenal,           $20,000,000
Alabama...............
National Security Agency.......  Fort Meade, Maryland...      $1,842,000
Special Operations Command.....  Dam Neck, Virginia.....     $15,281,000
Fort Bragg, North           $36,300,000
Carolina.
Fort Campbell, Kentucky      $7,800,000
Harrisburg                   $3,000,000
International Airport,
Pennsylvania..........
Hurlburt Field, Florida      $6,000,000
MacDill Air Force Base,     $25,500,000
Florida...............
Naval Amphibious Base,       $2,800,000
Coronado, California..
TRICARE Management Activity....  Fort Hood, Texas.......      $9,400,000
Naval Station,              $15,714,000
Anacostia, District of
Columbia..............
Naval Submarine Base,        $6,700,000
New London,
Connecticut...........
United States Air Force     $22,100,000
Academy, Colorado.....
Walter Reed Medical          $9,000,000
Center, District of
Columbia..............
Washington Headquarters          Arlington, Virginia....     $38,086,000
Services......................
---------------
Total..............    $363,670,000
------------------------------------------------------------------------

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



Defense Agencies: Outside the United States
------------------------------------------------------------------------
Installation or
Agency                      location             Amount
------------------------------------------------------------------------
Defense Education Activity.....  Sigonella, Italy.......     $30,234,000

[[Page 1713]]
117 STAT. 1713


Vicenza, Italy.........     $16,374,000
TRICARE Management Activity....  Anderson Air Force          $26,000,000
Base, Guam............
---------------
Total..............     $72,608,000
------------------------------------------------------------------------

SEC. 2402. FAMILY HOUSING.

Using amounts appropriated pursuant to the authorization of
appropriations in section 2405(a)(8)(A), the Secretary of Defense may
carry out architectural and engineering services and construction design
activities with respect to the construction or improvement of military
family housing units in an amount not to exceed $300,000.

SEC. 2403. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

Subject to section 2825 of title 10, United States Code, and using
amounts appropriated pursuant to the authorization of appropriations in
section 2405(a)(8)(A), the Secretary of Defense may improve existing
military family housing units in an amount not to exceed $50,000.

SEC. 2404. ENERGY CONSERVATION PROJECTS.

Using amounts appropriated pursuant to the authorization of
appropriations in section 2405(a)(6), the Secretary of Defense may carry
out energy conservation projects under section 2865 of title 10, United
States Code, in the amount of $50,000,000.

SEC. 2405. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

(a) In General.--Funds are hereby authorized to be appropriated for
fiscal years beginning after September 30, 2003, for military
construction, land acquisition, and military family housing functions of
the Department of Defense (other than the military departments) in the
total amount of $1,222,388,000, as follows:
(1) For military construction projects inside the United
States authorized by section 2401(a), $361,470,000.
(2) For military construction projects outside the United
States authorized by section 2401(b), $55,243,000.
(3) For unspecified minor construction projects under
section 2805 of title 10, United States Code, $15,553,000.
(4) For contingency construction projects of the Secretary
of Defense under section 2804 of title 10, United States Code,
$8,960,000.
(5) For architectural and engineering services and
construction design under section 2807 of title 10, United
States Code, $65,130,000.
(6) For energy conservation projects authorized by section
2404, $50,000,000.
(7) For base closure and realignment activities as
authorized by the Defense Base Closure and Realignment Act of
1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687
note), $370,427,000.
(8) For military family housing functions:
(A) For planning, design, and improvement of
military family housing and facilities, $350,000.

[[Page 1714]]
117 STAT. 1714

(B) For support of military family housing
(including functions described in section 2833 of title
10, United States Code), $49,440,000.
(C) For credit to the Department of Defense Family
Housing Improvement Fund established by section
2883(a)(1) of title 10, United States Code, $300,000.
(9) For construction of the Defense Threat Reduction Center
at Fort Belvoir, Virginia, authorized by section 2401(a) of the
Military Construction Authorization Act for Fiscal Year 2003
(division B of Public Law 107-314; 116 Stat. 2695), $25,700,000.
(10) For the construction of phase 5 of an ammunition
demilitarization facility at Pueblo Depot Activity, Colorado,
authorized by section 2401(a) of the Military Construction
Authorization Act for Fiscal Year 1997 (division B of Public Law
104-201; 110 Stat. 2775), as amended by section 2406 of the
Military Construction Authorization Act for Fiscal Year 2000
(division B of Public Law 106-65; 113 Stat. 839) and section
2407 of the Military Construction Authorization Act for Fiscal
Year 2003 (division B of Public Law 107-314; 116 Stat. 2698),
$88,388,000.
(11) For the construction of phase 6 of an ammunition
demilitarization facility at Newport Army Ammunition Plant,
Indiana, authorized by section 2401(a) of the Military
Construction Authorization Act for Fiscal Year 1999 (division B
of Public Law 105-261; 112 Stat. 2193), as amended by section
2406 of the Military Construction Authorization Act for Fiscal
Year 2003 (division B of Public Law 107-314; 116 Stat. 2698),
$15,207,000.
(12) For the construction of phase 4 of an ammunition
demilitarization facility at Blue Grass Army Depot, Kentucky,
authorized by section 2401(a) of the Military Construction
Authorization Act for Fiscal Year 2000 (division B of Public Law
106-65; 113 Stat. 835), as amended by section 2405 of the
Military Construction Authorization Act for Fiscal Year 2002
(division B of Public Law 107-107; 115 Stat. 1298) and section
2405 of the Military Construction Authorization Act for Fiscal
Year 2003 (division B of Public Law 107-314; 116 Stat. 2698),
$16,220,000.

(b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title
10, United States Code, and any other cost variation authorized by law,
the total cost of all projects carried out under section 2401 of this
Act may not exceed the total amount authorized to be appropriated under
paragraphs (1) and (2) of subsection (a).

SEC. 2406. TERMINATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
2003 PROJECTS.

(a) Termination.--The table in section 2401(b) of the Military
Construction Authorization Act for Fiscal Year 2003 (division B of
Public Law 107-314; 116 Stat. 2695) is amended--
(1) in the matter relating to Department of Defense
Dependents Schools--
(A) by striking the item relating to Seoul, Korea;
and
(B) by striking the item relating to Spangdahlem Air
Base, Germany;

[[Page 1715]]
117 STAT. 1715

(2) in the matter relating to TRICARE Management Activity,
by striking the item relating to Spangdahlem Air Base, Germany;
and
(3) by striking the amount identified as the total in the
amount column and inserting ``$134,274,000''.

(b) Conforming Amendments.--Section 2404(a) of that Act (116 Stat.
2696) is amended--
(1) in the matter preceding paragraph (1), by striking
``$1,434,795,000'' and inserting ``$1,362,486,000''; and
(2) in paragraph (2), by striking ``$206,583,000'' and
inserting ``$134,274,000''.

TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT
PROGRAM

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

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

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

SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

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

TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

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

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

There are authorized to be appropriated for fiscal years beginning
after September 30, 2003, for the costs of acquisition, architectural
and engineering services, and construction of facilities for the Guard
and Reserve Forces, and for contributions therefor, under chapter 1803
of title 10, United States Code (including the cost of acquisition of
land for those facilities), the following amounts:
(1) For the Department of the Army--
(A) for the Army National Guard of the United
States, $311,592,000; and
(B) for the Army Reserve, $88,451,000.

[[Page 1716]]
117 STAT. 1716

(2) For the Department of the Navy, for the Naval and Marine
Corps Reserve, $45,498,000.
(3) For the Department of the Air Force--
(A) for the Air National Guard of the United States,
$222,908,000; and
(B) for the Air Force Reserve, $62,032,000.

TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

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

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

(a) Expiration of Authorizations After Three Years.--Except as
provided in subsection (b), all authorizations contained in titles XXI
through XXVI for military construction projects, land acquisition,
family housing projects and facilities, and contributions to the North
Atlantic Treaty Organization Security Investment program (and
authorizations of appropriations therefor) shall expire on the later
of--
(1) October 1, 2006; or
(2) the date of the enactment of an Act authorizing funds
for military construction for fiscal year 2007.

(b) Exception.--Subsection (a) shall not apply to authorizations for
military construction projects, land acquisition, family housing
projects, and facilities, and contributions to the North Atlantic Treaty
Organization Security Investment program (and authorizations of
appropriations therefor) for which appropriated funds have been
obligated before the later of--
(1) October 1, 2006; or
(2) the date of the enactment of an Act authorizing funds
for fiscal year 2007 for military construction projects, land
acquisition, family housing projects and facilities, and
contributions to the North Atlantic Treaty Organization Security
Investment program.

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

(a) Extension [NOTE: Termination date.]  of Certain Projects.--
Notwithstanding section 2701 of the Military Construction Authorization
Act for Fiscal Year 2001 (division B of the Floyd D. Spence National
Defense Authorization Act for Fiscal Year 2001 (as enacted into law by
Public Law 106-398; 114 Stat. 1654A-407)), authorizations set forth in
the tables in subsection (b), as provided in section 2102 or 2601 of
that Act, shall remain in effect until October 1, 2004, or the date of
the enactment of an Act authorizing funds for military construction for
fiscal year 2005, whichever is later.

(b) Tables.--The tables referred to in subsection (a) are as
follows:



[[Page 1717]]
117 STAT. 1717



Army: Extension of 2001 Project Authorization
----------------------------------------------------------------------------------------------------------------
State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
South Carolina........................  Fort Jackson.............  New Construction--Family             $250,000
Housing (1 Unit)............
----------------------------------------------------------------------------------------------------------------




Army National Guard: Extension of 2001 Project Authorizations
----------------------------------------------------------------------------------------------------------------
State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Arizona...............................  Papago Park..............  Add/Alter Readiness Center...      $2,265,000
Pennsylvania..........................  Mansfield................  Readiness Center.............      $3,100,000
----------------------------------------------------------------------------------------------------------------

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

(a) Extension.--Notwithstanding [NOTE: Termination date.]  section
2701 of the Military Construction Authorization Act for Fiscal Year 2000
(division B of Public Law 106-65; 113 Stat. 841), the authorizations set
forth in the tables in subsection (b), as provided in section 2302 or
2601 of that Act and extended by section 2702 of the Military
Construction Authorization Act for Fiscal Year 2003 (division B of
Public Law 107-314; 116 Stat. 2700), shall remain in effect until
October 1, 2004, or the date of the enactment of an Act authorizing
funds for military construction for fiscal year 2005, whichever is
later.

(b) Tables.--The tables referred to in subsection (a) are as
follows:



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




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

TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Modification of general definitions relating to military
construction.

[[Page 1718]]
117 STAT. 1718

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

Subtitle B--Real Property and Facilities Administration

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

Subtitle C--Base Closure and Realignment

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

Subtitle D--Land Conveyances

Part I--Army Conveyances

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

Part II--Navy Conveyances

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

Part III--Air Force Conveyances

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

Part IV--Other Conveyances

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

Subtitle E--Other Matters

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

[[Page 1719]]
117 STAT. 1719

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

SEC. 2801. MODIFICATION OF GENERAL DEFINITIONS RELATING TO MILITARY
CONSTRUCTION.

(a) Military Construction.--Subsection (a) of section 2801 of title
10, United States Code, is amended by inserting before the period the
following: ``, whether to satisfy temporary or permanent requirements''.
(b) Military Installation.--Subsection (c)(2) of such section is
amended by inserting before the period the following: ``, without regard
to the duration of operational control''.

SEC. 2802. INCREASE IN MAXIMUM AMOUNT OF AUTHORIZED ANNUAL EMERGENCY
CONSTRUCTION.

Section 2803(c)(1) of title 10, United States Code, is amended by
striking ``$30,000,000'' and inserting ``$45,000,000''.

SEC. 2803. INCREASE IN NUMBER OF FAMILY HOUSING UNITS IN ITALY
AUTHORIZED FOR LEASE BY THE NAVY.

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

SEC. 2804. INCREASE IN AUTHORIZED MAXIMUM LEASE TERM FOR FAMILY HOUSING
AND OTHER FACILITIES IN CERTAIN FOREIGN COUNTRIES.

(a) Lease of Military Family Housing.--Section 2828(d)(1) of title
10, United States Code, is amended by striking ``ten years,'' and
inserting ``10 years, or 15 years in the case of leases in Korea,''.
(b) Lease of Other Facilities.--Section 2675 of such title is
amended by inserting after ``five years,'' the following: ``or 15 years
in the case of a lease in Korea,''.

SEC. 2805. CONVEYANCE OF PROPERTY AT MILITARY INSTALLATIONS CLOSED OR
REALIGNED TO SUPPORT MILITARY CONSTRUCTION.

(a) In General.--(1) Subchapter III of chapter 169 of title 10,
United States Code, is amended by adding at the end the following new
section:

``Sec. 2869. Conveyance of property at military installations closed or
realigned to support military construction

``(a) Conveyance Authorized; Consideration.--The Secretary concerned
may enter into an agreement to convey real property, including any
improvements thereon, located on a military installation that is closed
or realigned under a base closure law to any person who agrees, in
exchange for the real property--
``(1) to carry out a military construction project or land
acquisition; or
``(2) to transfer to the Secretary concerned housing that is
constructed or provided by the person and located at or near a
military installation at which there is a shortage of suitable
military family housing, military unaccompanied housing, or
both.

[[Page 1720]]
117 STAT. 1720

``(b) Conditions on Conveyance Authority.--The fair market value of
the military construction, military family housing, or military
unaccompanied housing to be obtained by the Secretary concerned under
subsection (a) in exchange for the conveyance of real property by the
Secretary under such subsection shall be at least equal to the fair
market value of the conveyed real property, as determined by the
Secretary. If the fair market value of the military construction,
military family housing, or military unaccompanied housing is less than
the fair market value of the real property to be conveyed, the recipient
of the property shall pay to the United States an amount equal to the
difference in the fair market values.
``(c) Pilot Program for Use of Authority.--(1) To the maximum extent
practicable, the Secretary of each military department shall use the
conveyance authority provided by subsection (a) at least once before
December 31, 2004, for the purposes specified in such subsection.
``(2) The value of the consideration received by the Secretary
concerned in a conveyance carried out under this subsection shall not be
less than $1,000,000.
``(3) In the case [NOTE: Reports.]  of the report required under
subsection (f) to be submitted in 2005, the Secretary of Defense shall
include the following:
``(A) A description of the conveyances carried out or
proposed under this subsection.
``(B) A description of the procedures utilized to enter into
any agreements for the conveyance of property under this
subsection.
``(C) An assessment of the utility of such procedures for
the disposal of property at military installations closed or
realigned under the base closure laws, and for securing services
described in subsection (a), including an assessment of any time
saved and cost-savings achieved as a result of the use of the
conveyance authority provided by this section.
``(D) An assessment of private sector interest in the use of
the conveyance authority provided by this section.
``(E) A description of the projects for which the Secretary
concerned considered using the conveyance authority provided by
this section, but did not do so, and an explanation of the
decision.

``(d) Advance [NOTE: Federal Register, publication.]  Notice of
Use of Authority.--(1) Notice of the proposed use of the conveyance
authority provided by subsection (a) shall be provided in such manner as
the Secretary of Defense may prescribe, including publication in the
Federal Register and otherwise. When real property located at a military
installation closed or realigned under the base closure laws is to be
conveyed by means of a public sale, the Secretary concerned may notify
prospective purchasers that consideration for the property may be
provided in the manner authorized by such subsection.

``(2) The Secretary concerned may not enter into an agreement under
subsection (a) for the conveyance of real property until--
``(A) the Secretary submits to Congress notice of the
conveyance, including the military construction activities,
military family housing, or military unaccompanied housing to be
obtained in exchange for the conveyance; and
``(B) a period of 14 days expires beginning on the date on
which the notice is submitted.

[[Page 1721]]
117 STAT. 1721

``(e) Deposit of Funds.--The Secretary concerned may deposit funds
received under subsection (b) in the Department of Defense housing funds
established under section 2883(a) of this title.
``(f) Annual Report.--In the budget materials submitted to Congress
in connection with the submission of the budget for a fiscal year
pursuant to section 1105 of title 31, the Secretary of Defense shall
include a report detailing the following:
``(1) The extent to which the Secretaries concerned used the
authority provided by subsection (a) during the preceding fiscal
year to convey real property in exchange for military
construction and military housing, including the total value of
the real property that was actually conveyed during such fiscal
year using such authority and the total value of the military
construction and military housing services obtained in exchange.
``(2) The plans for the use of such authority for the
current fiscal year, the fiscal year covered by the budget, and
the period covered by the current future-years defense program
under section 221 of this title.
``(3) The current inventory of unconveyed lands at military
installations closed or realigned under a base closure law.

``(g) Description of Property.--The exact acreage and legal
description of real property conveyed under subsection (a) shall be
determined by surveys satisfactory to the Secretary concerned.
``(h) Additional Terms and Conditions.--The Secretary concerned may
require such additional terms and conditions in connection with a
conveyance under subsection (a) as the Secretary considers appropriate
to protect the interests of the United States.''.
(2) The table of sections at the beginning of such subchapter is
amended by adding at the end the following new item:

``2869. Conveyance of property at military installations closed or
realigned to support military construction.''.

(b) Exception to Requirement for Authorization of Number of Housing
Units.--Section 2822(b) [NOTE: 10 USC 2822.]  of such title is amended
by adding at the end the following new paragraph:
``(6) Housing units constructed or provided under section
2869 of this title.''.

(c) Conforming Amendment to Department of Defense Housing Funds.--
Section 2883(c) [NOTE: 10 USC 2883.]  of such title is amended--
(1) in paragraph (1), by adding at the end the following new
subparagraph:
``(F) Any amounts that the Secretary concerned transfers to
that Fund pursuant to section 2869 of this title.''; and
(2) in paragraph (2), by adding at the end the following new
subparagraph:
``(F) Any amounts that the Secretary concerned transfers to
that Fund pursuant to section 2869 of this title.''.

(d) Conforming Repeals to Base Closure Laws.--(1) Section 204(e) of
the Defense Authorization Amendments and Base Closure and Realignment
Act (Public Law 100-526; 10 U.S.C. 2687 note) is repealed.
(2) Section 2905(f) of the Defense Base Closure and Realignment Act
of 1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687
note) is repealed.

[[Page 1722]]
117 STAT. 1722

SEC. 2806. INAPPLICABILITY OF SPACE LIMITATIONS TO MILITARY
UNACCOMPANIED HOUSING UNITS ACQUIRED OR CONSTRUCTED UNDER
ALTERNATIVE AUTHORITY.

Section 2880(b)(2) of title 10, United States Code, is amended by
striking ``unless the unit is located on a military installation''.

SEC. 2807. ADDITIONAL MATERIAL FOR REPORTS ON HOUSING PRIVATIZATION
PROGRAM.

(a) Reports on Specific Projects.--Subsection (a) of section 2884 of
title 10, United States Code, is amended--
(1) by designating the second sentence of paragraph (2) as
paragraph (4); and
(2) by inserting after the first sentence in paragraph (2)
the following new paragraph:

``(3)(A) In the case of a contract described in paragraph (1)
proposed to be entered into with a private party, the report shall
specify whether the contract will or may include a guarantee (including
the making of mortgage or rental payments) by the Secretary to the
private party in the event of--
``(i) the closure or realignment of the installation for
which housing will be provided under the contract;
``(ii) a reduction in force of units stationed at such
installation; or
``(iii) the extended deployment of units stationed at such
installation.

``(B) If the contract will or may include such a guarantee, the
report shall also--
``(i) describe the nature of the guarantee; and
``(ii) assess the extent and likelihood, if any, of the
liability of the United States with respect to the guarantee.''.

(b) Annual Reports.--Subsection (b) of such section is amended--
(1) in paragraph (2), by inserting before the period at the
end the following: ``, and such recommendations as the Secretary
considers necessary for improving the extent and effectiveness
of the use of such authorities in the future''; and
(2) by striking paragraph (3) and inserting the following
new paragraphs:
``(3) A review of activities of the Secretary under this
subchapter during such preceding fiscal year, shown for military
family housing, military unaccompanied housing, dual military
family housing and military unaccompanied housing, and ancillary
supporting facilities.
``(4) If a contract for the acquisition or construction of
military family housing, military unaccompanied housing, or dual
military family housing and military unaccompanied housing
entered into during the preceding fiscal year did not include
the acquisition or construction of the types of ancillary
supporting facilities specifically referred to in section
2871(1) of this title, a explanation of the reasons why such
ancillary supporting facilities were not included.
``(5) A description of the Secretary's plans for housing
privatization activities under this subchapter: (A) during the
fiscal year for which the budget is submitted; and (B) during
the period covered by the then-current future-years defense plan
under section 221 of this title.''.

[[Page 1723]]
117 STAT. 1723

SEC. 2808. TEMPORARY, LIMITED AUTHORITY TO USE OPERATION AND MAINTENANCE
FUNDS FOR CONSTRUCTION PROJECTS OUTSIDE THE UNITED STATES.

(a) Temporary Authority.--During fiscal year 2004, the Secretary of
Defense may use this section as authority to obligate appropriated funds
available for operation and maintenance to carry out a construction
project outside the United States that the Secretary determines meets
each of the following conditions:
(1) The construction is necessary to meet urgent military
operational requirements of a temporary nature involving the use
of the Armed Forces in support of a declaration of war, the
declaration by the President of a national emergency under
section 201 of the National Emergencies Act (50 U.S.C. 1621), or
a contingency operation.
(2) The construction is not carried out at a military
installation where the United States is reasonably expected to
have a long-term presence.
(3) The United States has no intention of using the
construction after the operational requirements have been
satisfied.
(4) The level of construction is the minimum necessary to
meet the temporary operational requirements.

(b) Notification [NOTE: Deadline.]  of Obligation of Funds.--
Within seven days after the date on which appropriated funds available
for operation and maintenance are first obligated for a construction
project under subsection (a), the Secretary of Defense shall submit to
the congressional committees specified in subsection (f) notice of the
obligation of the funds and the construction project. The notice shall
include the following:
(1) Certification that the conditions specified in
subsection (a) are satisfied with regard to the construction
project.
(2) A description of the purpose for which appropriated
funds available for operation and maintenance are being
obligated.
(3) All relevant documentation detailing the construction
project.
(4) An estimate of the total amount obligated for the
construction.

(c) Limitation on Use of Authority.--(1) The total cost of the
construction projects carried out under the authority of this section
using, in whole or in part, appropriated funds available for operation
and maintenance shall not exceed $200,000,000 in fiscal year 2004.
(2) The Secretary of Defense may waive the limitation imposed by
paragraph (1) if the Secretary determines that the obligation of
operation and maintenance funds for construction projects in excess of
the amount specified in such subsection is vital to the national
security.
(3) Not [NOTE: Deadline.] later than five days after the date on
which a waiver is granted under paragraph (2), the Secretary of Defense
shall submit to the congressional committees specified in subsection (f)
notice containing the reasons for the waiver.

(d) Quarterly Report.--Not later than 30 days after the end of each
fiscal-year quarter of fiscal year 2004, the Secretary of Defense shall
submit to the congressional committees specified in subsection (f) a
report on the worldwide obligation and expenditure

[[Page 1724]]
117 STAT. 1724

during that quarter of appropriated funds available for operation and
maintenance for construction projects.
(e) Relation [NOTE: 10 USC 2805 note.]  to Other Authorities.--The
temporary authority provided by this section, and the limited authority
provided by section 2805(c) of title 10, United States Code, to use
appropriated funds available for operation and maintenance to carry out
a construction project are the only authorities available to the
Secretary of Defense and the Secretaries of the military departments to
use appropriated funds available for operation and maintenance to carry
out construction projects.

(f) Congressional Committees.--The congressional committees referred
to in this section are the following:
(1) The Committee on Armed Services and the Subcommittees on
Defense and Military Construction of the Committee on
Appropriations of the Senate.
(2) The Committee on Armed Services and the Subcommittees on
Defense and Military Construction of the Committee on
Appropriations of the House of Representatives.

SEC. 2809. REPORT ON MILITARY CONSTRUCTION REQUIREMENTS TO SUPPORT NEW
HOMELAND DEFENSE MISSIONS OF THE ARMED FORCES.

Not [NOTE: Deadline.]  later than February 15, 2004, the Secretary
of Defense shall submit to Congress a report describing all military
construction projects carried out to support new homeland defense
missions of the Armed Forces undertaken since September 11, 2001, and
containing an assessment of the military construction requirements
anticipated to be necessary during fiscal years 2005, 2006, and 2007 to
support such missions.

Subtitle B--Real Property and Facilities Administration

SEC. 2811. ENHANCEMENT OF AUTHORITY TO ACQUIRE LOW-COST INTERESTS IN
LAND.

(a) Increase in Acquisition Threshold.--Section 2672 of title 10,
United States Code, is amended--
(1) by redesignating subsections (a)(2) and (b) as
subsections (b) and (c), respectively;
(2) in subsection (a)--
(A) in paragraph (1)(B), by striking ``$500,000''
and inserting ``$750,000''; and
(B) by inserting after paragraph (1) the following
new paragraph (2):

``(2) The Secretary of a military department may acquire any
interest in land that--
``(A) the Secretary determines is needed solely to correct a
deficiency that is life-threatening, health-threatening, or
safety-threatening; and
``(B) does not cost more than $1,500,000, exclusive of
administrative costs and the amounts of any deficiency
judgments.''; and
(3) in subsection (b), as so redesignated, by striking
``$500,000'' and inserting ``$750,000, in the case of an
acquisition under subsection (a)(1), or $1,500,000, in the case
of an acquisition under subsection (a)(2)''.

[[Page 1725]]
117 STAT. 1725

(b) Clerical Amendments.--(1) Such section is further amended--
(A) in subsection (a), by inserting ``Acquisition
Authority.--'' before ``(1)'';
(B) in subsection (b), as redesignated by subsection (a)(1),
by inserting ``Acquisition of Multiple Parcels.--'' before
``This section''; and
(C) in subsection (c), as redesignated by subsection (a)(1),
by inserting ``Survey and Acquisition Methods.--'' before ``The
authority''.

(2) The heading of such section is amended to read as follows:

``Sec. 2672. Authority to acquire low-cost interests in land''.

(3) The item relating to section 2672 in the table of sections at
the beginning of chapter 159 of such title is amended to read as
follows:

``2672. Authority to acquire low-cost interests in land.''.

SEC. 2812. RETENTION AND AVAILABILITY OF AMOUNTS REALIZED FROM ENERGY
COST SAVINGS.

(a) In General.--Section 2865(b) of title 10, United States Code, is
amended--
(1) in paragraph (1), by striking ``Two-thirds of the
portion of the funds appropriated'' and inserting ``An amount of
the funds appropriated'';
(2) in paragraph (2), by striking ``The Secretary'' and
inserting ``The Secretary of Defense''; and
(3) by adding at the end the following new paragraph:

``(4) The Secretary of Defense shall include in the budget material
submitted to Congress in connection with the submission of the budget
for a fiscal year pursuant to section 1105 of title 31 a separate
statement of the amounts available for obligation under this subsection
in such fiscal year.''.
(b) [NOTE: 10 USC 2865 note.] Effective Date.--The amendment made
by subsection (a)(1) shall not apply to funds appropriated for a fiscal
year before fiscal year 2004.

SEC. 2813. ACCEPTANCE OF IN-KIND CONSIDERATION FOR EASEMENTS.

(a) Easements for Rights-of-Way.--Section 2668(e) of title 10,
United States Code, is amended--
(1) by striking ``Subsection (d)'' and inserting
``Subsections (c) and (d)'';
(2) by inserting ``in-kind consideration and'' before
``proceeds''; and
(3) by striking ``subsection applies to'' and inserting
``subsections apply to in-kind consideration and''.

(b) Easements for Utility Lines.--Section 2669(e) of such title is
amended--
(1) by striking ``Subsection (d)'' and inserting
``Subsections (c) and (d)'';
(2) by inserting ``in-kind consideration and'' before
``proceeds''; and
(3) by striking ``subsection applies to'' and inserting
``subsections apply to in-kind consideration and''.

[[Page 1726]]
117 STAT. 1726

Subtitle C--Base Closure and Realignment

SEC. 2821. CONSIDERATION OF PUBLIC-ACCESS-ROAD ISSUES RELATED TO BASE
CLOSURE, REALIGNMENT, OR PLACEMENT IN INACTIVE STATUS.

Section 2905(b)(2) of the Defense Base Closure and Realignment Act
of 1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687
note) is amended by adding at the end the following new subparagraph:
``(E) If a military installation to be closed, realigned, or placed
in an inactive status under this part includes a road used for public
access through, into, or around the installation, the Secretary of
Defense shall consult with the Governor of the State and the heads of
the local governments concerned for the purpose of considering the
continued availability of the road for public use after the installation
is closed, realigned, or placed in an inactive status.''.

SEC. 2822. [NOTE: 10 USC 2687 note.] CONSIDERATION OF SURGE
REQUIREMENTS IN 2005 ROUND OF BASE REALIGNMENTS AND
CLOSURES.

(a) Determination of Surge Requirements.--The Secretary of Defense
shall assess the probable threats to national security and, as part of
such assessment, determine the potential, prudent, surge requirements to
meet those threats.
(b) Use of Determination.--The Secretary shall use the surge
requirements determination made under subsection (a) in the base
realignment and closure process under the Defense Base Closure and
Realignment Act of 1990 (part A of title XXIX of Public Law 101-510; 10
U.S.C. 2687 note), as amended by title XXX of the National Defense
Authorization Act for Fiscal Year 2002 (Public Law 107-107; 115 Stat.
1342).

Subtitle D--Land Conveyances

PART I--ARMY CONVEYANCES

SEC. 2831. TERMINATION OF LEASE AND CONVEYANCE OF ARMY RESERVE FACILITY,
CONWAY, ARKANSAS.

(a) Termination of Lease.--Upon the completion of the replacement
facility authorized for the Army Reserve facility located in Conway,
Arkansas, the Secretary of the Army may terminate the 99-year lease
between the Secretary and the University of Central Arkansas for the
property on which the old facility is located.
(b) Conveyance of Facility.--As part of the termination of the lease
under subsection (a), the Secretary may convey, without consideration,
to the University of Central Arkansas all right, title, and interest of
the United States in and to the Army Reserve facility located on the
leased property.
(c) Assumption of Liability.--The University of Central Arkansas
shall expressly accept any and all liability pertaining to the physical
condition of the Army Reserve facility conveyed under subsection (b) and
shall hold the United States harmless from any and all liability arising
from the facility's physical condition.

[[Page 1727]]
117 STAT. 1727

SEC. 2832. [NOTE: Highways.] LAND CONVEYANCE, FORT CAMPBELL, KENTUCKY
AND TENNESSEE.

(a) Conveyance Authorized.--The Secretary of the Army may convey to
the department of transportation of the State of Tennessee all right,
title, and interest of the United States in and to a parcel of real
property (right-of-way), including any improvements thereon, located at
Fort Campbell, Kentucky and Tennessee, for the purpose of realigning and
upgrading United States Highway 79 from a two-lane highway to a four-
lane highway.
(b) Consideration.--(1) As consideration for the conveyance under
subsection (a), the department of transportation of the State of
Tennessee shall pay from any source (including Federal funds made
available to the State from the Highway Trust Fund) all of the costs of
the Secretary incurred--
(A) to convey the property, including costs related to the
preparation of documents under the National Environmental Policy
Act of 1969 (42 U.S.C. 4321 et seq.), surveys (including all
surveys required under subsection (c)), cultural reviews, and
administrative oversight;
(B) to relocate a cemetery to permit the highway realignment
and upgrading;
(C) to acquire approximately 200 acres of mission-essential
replacement property required to support the training mission at
Fort Campbell; and
(D) to dispose of residual Federal property located south of
the realigned highway.

(2) The Secretary of the Army may accept funds under this subsection
from the State of Tennessee or transferred by the Secretary of
Transportation at the request of the State from Federal-aid highway
funds made available to the State to pay costs described in paragraph
(1) and credit them to the appropriate Department of the Army accounts
for the purpose of paying such costs.
(3) All funds made available from the Highway Trust Fund to pay
costs described in paragraph (1) shall be provided subject to the
requirements of section 120(b) of title 23, United States Code, relating
to the Federal share payable on account of a project or activity.
(4) All funds accepted by the Secretary under this subsection shall
remain available until expended.
(c) Description of Property.--The exact acreage and legal
description of the property to be conveyed under subsection (a) or
acquired and disposed of under subsection (b) shall be determined by
surveys satisfactory to the Secretary.
(d) Additional Terms and Conditions.--The Secretary may require such
additional terms and conditions in connection with the conveyance under
subsection (a) as the Secretary considers appropriate to protect the
interests of the United States.

SEC. 2833. LAND CONVEYANCE, FORT KNOX, KENTUCKY.

(a) Conveyance Authorized.--The Secretary of the Army may convey,
without consideration, to the Department of Veterans Affairs of the
Commonwealth of Kentucky (in this section referred to as the
``Department'') all right, title, and interest of the United States in
and to a parcel of real property, including any improvements thereon,
consisting of approximately 93 acres at Fort Knox, Kentucky, for the
purpose of permitting the Department to establish and operate a State-
run cemetery for veterans of the Armed Forces.

[[Page 1728]]
117 STAT. 1728

(b) Reimbursement for Costs of Conveyance.--(1) The Department shall
reimburse the Secretary for any costs incurred by the Secretary in
making the conveyance under subsection (a), including costs related to
environmental documentation and other administrative costs. This
paragraph does not apply to costs associated with the environmental
remediation of the property to be conveyed.
(2) Amounts received as reimbursement under paragraph (1) shall be
credited to the fund or account that was used to cover the costs
incurred by the Secretary in carrying out the conveyance. Amounts so
credited shall be merged with amounts in such fund or account, and shall
be available for the same purposes, and subject to the same conditions
and limitations, as amounts in such fund or account.
(c) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under subsection (a)
shall be determined by a survey satisfactory to the Secretary.
(d) Additional Terms and Conditions.--The Secretary may require such
additional terms and conditions in connection with the conveyance under
subsection (a) as the Secretary considers appropriate to protect the
interests of the United States.

SEC. 2834. ARMY NATIONAL GUARD ARMORY, PIERCE CITY, MISSOURI.

(a) Contribution Authorized.--The Secretary of the Army may make a
contribution under section 18233(a) of title 10, United States Code, for
a facility for a new Army National Guard armory in Pierce City,
Missouri, in excess of the contribution otherwise authorized by section
18236(b)(2) of such title, if the Secretary determines that--
(1) there is a compelling and immediate need for the
construction of the facility;
(2) the requirement for the facility was unanticipated and
results from a natural disaster;
(3) failure to construct the facility immediately would have
an adverse impact on the mission of the unit assigned to the
facility; and
(4) the real property for the facility will be provided by
the State of Missouri.

(b) Limitation.--The amount of the additional contribution provided
pursuant to subsection (a), which would otherwise be required by section
18236(b)(2) of title 10, United States Code, from the State of Missouri
for the construction of the facility, may not exceed the amount
specified in section 18233a(a)(1) of such title.
(c) Authority to Accept Real Property From State.--The Secretary may
accept from the State of Missouri the donation of real property, in
addition to the real property required to be contributed by the State
under subsection (a)(4), that is acceptable to the Secretary and has a
market value not in excess of the amount of the additional contribution
provided pursuant to subsection (a).

SEC. 2835. LAND EXCHANGE, FORT BELVOIR, VIRGINIA.

(a) Land Exchange Authorized.--Upon receipt of the consideration
referred to in subsection (b), the Secretary of the Army may convey to
the Fairfax County Park Authority of Fairfax County, Virginia (in this
section referred to as the ``Authority''), all right, title, and
interest of the United States in and to a parcel of real

[[Page 1729]]
117 STAT. 1729

property, including any improvements thereon, consisting of
approximately 12 acres at Fort Belvoir, Virginia.
(b) Consideration.--As consideration for the conveyance of the
property under subsection (a), the Authority shall convey to the United
States all right, title, and interest of the Authority in and to a
parcel of real property acceptable to the Secretary. The Secretary shall
have administrative jurisdiction over the real property received under
this subsection.
(c) Costs of Conveyance.--(1) The Secretary may collect funds from
the Authority to cover costs incurred or to be incurred by the Secretary
to carry out a conveyance under this section, including survey costs,
costs related to environmental documentation, and other administrative
costs related to the conveyance. If amounts are collected from the
Authority in advance of the Secretary incurring the actual costs, and
the amount collected exceeds the costs actually incurred by the
Secretary to carry out the conveyance, the Secretary shall refund the
excess amount to the Authority.
(2) Amounts collected under paragraph (1) to cover costs previously
incurred by the Secretary shall be credited to the fund or account that
was used to cover the costs. Amounts so credited shall be merged with
amounts in such fund or account, and shall be available for the same
purposes, and subject to the same conditions and limitations, as amounts
in such fund or account.
(d) Description of Property.--The exact acreage and legal
description of the parcels of real property to be conveyed under this
section shall be determined by surveys satisfactory to the Secretary.
(e) Additional Terms and Conditions.--The Secretary may require such
additional terms and conditions in connection with the conveyances under
this section as the Secretary considers appropriate to protect the
interests of the United States.

PART II--NAVY CONVEYANCES

SEC. 2841. [NOTE: Housing. Aliens.] LAND CONVEYANCE, NAVY PROPERTY,
DIXON, CALIFORNIA.

(a) Conveyance Authorized.--The Secretary of the Navy may convey,
without consideration, to the Housing Authority of the City of Dixon,
California, (in this section referred to as the ``Housing Authority''),
all right, title, and interest of the United States in and to a parcel
of real property, including improvements thereon, that consists of
approximately 40.41 acres located at 7290 Radio Station Road in Dixon,
California, and is currently used by the Housing Authority as the site
for the Fred H. Rehman Dixon Migrant Center for the purpose of
permitting the Housing Authority to continue to provide suitable housing
and support services to migrant workers.
(b) Payment of Costs of Conveyance.--(1) The Secretary shall require
the Housing Authority to cover costs to be incurred by the Secretary
after the date of the enactment of this Act, or to reimburse the
Secretary for costs incurred by the Secretary after such date, to carry
out the conveyance under subsection (a), including any survey costs,
costs related to environmental documentation, and other administrative
costs related to the conveyance. If amounts are collected from the
Housing Authority in advance of the Secretary incurring the actual
costs, and the amount collected exceeds the costs actually incurred by
the Secretary to carry out

[[Page 1730]]
117 STAT. 1730

the conveyance, the Secretary shall refund the excess amount to the
Housing Authority.
(2) Amounts received as reimbursement under paragraph (1) shall be
credited to the fund or account that was used to cover the costs
incurred by the Secretary in carrying out the conveyance. Amounts so
credited shall be merged with amounts in such fund or account, and shall
be available for the same purposes, and subject to the same conditions
and limitations, as amounts in such fund or account.
(c) Exemption From Federal Screening.--The conveyance authorized by
subsection (a) is exempt from the requirement to screen the property for
other Federal use pursuant to sections 2693 and 2696 of title 10, United
States Code.
(d) Description of Property.--The exact acreage and legal
description of the property to be conveyed under subsection (a) shall be
determined by a survey satisfactory to the Secretary.
(e) Additional Terms and Conditions.--The Secretary may require such
additional terms and conditions in connection with the conveyance under
subsection (a) as the Secretary considers appropriate to protect the
interests of the United States.

SEC. 2842. LAND CONVEYANCE, MARINE CORPS LOGISTICS BASE, ALBANY,
GEORGIA.

(a) Conveyance Authorized.--The Secretary of the Navy may convey
through negotiated sale to the Preferred Development Group Corporation,
a corporation incorporated in the State of Georgia and authorized to do
business in the State of Georgia (in this section referred to as the
``Corporation''), all right, title, and interest of the United States in
and to a parcel of real property, including any improvements thereon,
consisting of approximately 10.44 acres located at Turner Field Road and
McAdams Road in Albany, Georgia, for the purpose of permitting the
Corporation to use the property for economic development.
(b) Conditions of Conveyance.--The conveyance under subsection (a)
shall be subject to the following conditions:
(1) That the Corporation accept the real property in its
condition at the time of the conveyance, commonly known as
conveyance ``as is''.
(2) That the Corporation bear all costs related to the use
and redevelopment of the real property.

(c) Consideration.--(1) As consideration for the conveyance under
subsection (a), the Corporation shall pay to the United States an
amount, determined pursuant to negotiations between the Secretary and
the Corporation and based upon the fair market value of the property (as
determined pursuant to an appraisal acceptable to the Secretary), that
is appropriate for the property.
(2) The consideration received under this subsection shall be
deposited in the Department of Defense Base Closure Account 1990
established by section 2906 of the Defense Base Closure and Realignment
Act of 1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687
note).
(d) Payment of Costs of Conveyance.--(1) The Secretary may require
the Corporation to cover costs to be incurred by the Secretary, or to
reimburse the Secretary for costs incurred by the Secretary, to carry
out the conveyance under subsection (a), including survey costs, costs
related to environmental documentation, and other administrative costs
related to the conveyance.

[[Page 1731]]
117 STAT. 1731

If amounts are collected from the Corporation in advance of the
Secretary incurring the actual costs, and the amount collected exceeds
the costs actually incurred by the Secretary to carry out the
conveyance, the Secretary shall refund the excess amount to the
Corporation.
(2) Amounts received as reimbursement under paragraph (1) shall be
credited to the fund or account that was used to cover the costs
incurred by the Secretary in carrying out the conveyance. Amounts so
credited shall be merged with amounts in such fund or account, and shall
be available for the same purposes, and subject to the same conditions
and limitations, as amounts in such fund or account.
(e) Exemption From Federal Screening.--The conveyance under
subsection (a) is exempt from the requirement to screen the property for
other Federal use pursuant to sections 2693 and 2696 of title 10, United
States Code.
(f) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under subsection (a)
shall be determined by a survey satisfactory to the Secretary.
(g) Additional Terms and Conditions.--The Secretary may require such
additional terms and conditions in connection with the conveyance under
subsection (a) as the Secretary considers appropriate to protect the
interests of the United States.

SEC. 2843. LAND EXCHANGE, NAVAL AND MARINE CORPS RESERVE CENTER,
PORTLAND, OREGON.

(a) Conveyance Authorized.--The Secretary of the Navy may convey to
the United Parcel Service, Inc. (in this section referred to as
``UPS''), all right, title, and interest of the United States in and to
a parcel of real property, including improvements thereon, consisting of
approximately 14 acres in Portland, Oregon, and comprising the Naval and
Marine Corps Reserve Center for the purpose of facilitating the
expansion of the UPS main distribution complex in Portland.
(b) Property Received in Exchange.--(1) As consideration for the
conveyance under subsection (a), UPS shall--
(A) convey to the United States a parcel of real property
determined to be suitable by the Secretary; and
(B) design, construct, and convey to the United States such
replacement facilities on that property as the Secretary
considers appropriate.

(2) The value of the real property and replacement facilities
received by the Secretary under this subsection shall be at least equal
to the fair market value of the real property conveyed under subsection
(a), as determined by the Secretary.
(c) Payment of Costs of Conveyance.--(1) The Secretary may require
UPS to cover costs to be incurred by the Secretary, or to reimburse the
Secretary for costs incurred by the Secretary, to carry out the
conveyance under subsection (a), including survey costs, costs related
to environmental documentation, relocation expenses incurred under
subsection (b), and other administrative costs related to the
conveyance. If amounts are collected from UPS in advance of the
Secretary incurring the actual costs, and the amount collected exceeds
the costs actually incurred by the Secretary to carry out the
conveyance, the Secretary shall refund the excess amount to UPS.

[[Page 1732]]
117 STAT. 1732

(2) Amounts received as reimbursement under paragraph (1) shall be
credited to the fund or account that was used to cover the costs
incurred by the Secretary in carrying out the conveyance. Amounts so
credited shall be merged with amounts in such fund or account, and shall
be available for the same purposes, and subject to the same conditions
and limitations, as amounts in such fund or account.
(d) Condition of Conveyance.--The Secretary may not make the
conveyance authorized by subsection (a) until the Secretary determines
that the replacement facilities required by subsection (b) are suitable
and available for the relocation of the operations of the Naval and
Marine Corps Reserve Center.
(e) Exemption From Federal Screening.--The conveyance authorized by
subsection (a) is exempt from the requirement to screen the property for
other Federal use pursuant to sections 2693 and 2696 of title 10, United
States Code.
(f) Description of Property.--The exact acreage and legal
description of the property to be conveyed under this section shall be
determined by surveys satisfactory to the Secretary.
(g) Additional Terms and Conditions.--The Secretary may require such
additional terms and conditions in connection with the conveyances under
this section as the Secretary considers appropriate to protect the
interests of the United States.

SEC. 2844. LAND CONVEYANCE, NAVAL RESERVE CENTER, ORANGE, TEXAS.

(a) Conveyance Authorized.--The Secretary of the Navy may convey to
the City of Orange, Texas (in this section referred to as the ``City''),
all right, title, and interest of the United States in and to a parcel
of unimproved real property consisting of approximately 2.5 acres at
Naval Reserve Center, Orange, Texas, for the purpose of permitting the
City to use the property for road construction, economic development,
and other public purposes.
(b) Consideration.--As consideration for the conveyance under
subsection (a), the City shall provide the United States, whether by
cash payment, in-kind contribution, or a combination thereof, an amount
that is not less than the fair market value, as determined by the
Secretary, of the property conveyed under such subsection.
(c) Payment of Costs of Conveyance.--(1) The Secretary may require
the City to cover costs to be incurred by the Secretary, or to reimburse
the Secretary for costs incurred by the Secretary, to carry out the
conveyance under subsection (a), including survey costs, costs related
to environmental documentation, and other administrative costs related
to the conveyance. If amounts are collected from the City in advance of
the Secretary incurring the actual costs, and the amount collected
exceeds the costs actually incurred by the Secretary to carry out the
conveyance, the Secretary shall refund the excess amount to the City.
(2) Amounts received as reimbursement under paragraph (1) shall be
credited to the fund or account that was used to cover the costs
incurred by the Secretary in carrying out the conveyance. Amounts so
credited shall be merged with amounts in such fund or account, and shall
be available for the same purposes, and subject to the same conditions
and limitations, as amounts in such fund or account.
(d) Exemption From Federal Screening.--The conveyance authorized by
subsection (a) is exempt from the requirement to

[[Page 1733]]
117 STAT. 1733

screen the property for other Federal use pursuant to sections 2693 and
2696 of title 10, United States Code.
(e) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under subsection (a)
shall be determined by a survey satisfactory to the Secretary.
(f) Additional Terms and Conditions.--The Secretary may require such
additional terms and conditions in connection with the conveyance under
subsection (a) as the Secretary considers appropriate to protect the
interests of the United States.

SEC. 2845. LAND CONVEYANCE, PUGET SOUND NAVAL SHIPYARD, BREMERTON,
WASHINGTON.

(a) Conveyance Authorized.--The Secretary of the Navy may convey to
the City of Bremerton, Washington (in this section referred to as the
``City''), all right, title, and interest of the United States in and to
a parcel of real property, including any improvements thereon,
consisting of approximately 2.8 acres at the eastern end of the Puget
Sound Naval Shipyard, Bremerton, Washington, immediately adjacent to the
Bremerton Transportation Center.
(b) Consideration.--As consideration for the conveyance under
subsection (a), the City, directly or through an agreement with another
entity, shall replace administrative space on the parcel to be conveyed
by renovating for new occupancy approximately 7,500 square feet of
existing space in Building 433 at Naval Station, Bremerton, Washington,
at no cost to the United States, in accordance with plans and
specifications acceptable to the Secretary. In lieu of any portion of
such renovation, the Secretary may accept other facility alteration or
repair of not less than equal value.
(c) Payment of Costs of Conveyance.--(1) The Secretary shall require
the City to cover costs to be incurred by the Secretary, or to reimburse
the Secretary for costs incurred by the Secretary, to carry out the
conveyance under subsection (a), including survey costs, costs related
to environmental documentation, and other administrative costs related
to the conveyance. If amounts are collected from the City in advance of
the Secretary incurring the actual costs, and the amount collected
exceeds the costs actually incurred by the Secretary to carry out the
conveyance, the Secretary shall refund the excess amount to the City.
(2) Amounts received as reimbursement under paragraph (1) shall be
credited to the fund or account that was used to cover the costs
incurred by the Secretary in carrying out the conveyance. Amounts so
credited shall be merged with amounts in such fund or account, and shall
be available for the same purposes, and subject to the same conditions
and limitations, as amounts in such fund or account.
(d) Environmental Conditions.--The Secretary may use funds available
in the Environmental Restoration Account, Navy to carry out the
environmental remediation of the real property to be conveyed under
subsection (a). Such environmental remediation shall be conducted in a
manner consistent with section 120 of the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9620),
including the requirement to consider the anticipated future land use of
the parcel.
(e) Exemption From Federal Screening.--The conveyance authorized by
subsection (a) is exempt from the requirement to screen the property for
other Federal use pursuant to sections 2693 and 2696 of title 10, United
States Code.

[[Page 1734]]
117 STAT. 1734

(f) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under subsection (a)
shall be determined by a survey satisfactory to the Secretary.
(g) Additional Terms and Conditions.--The Secretary may require such
additional terms and conditions in connection with the conveyance under
subsection (a) as the Secretary considers appropriate to protect the
interests of the United States.

PART III--AIR FORCE CONVEYANCES

SEC. 2851. LAND EXCHANGE, MARCH AIR RESERVE BASE, CALIFORNIA.

(a) Exchange Authorized.--(1) The Secretary of the Army may convey
to the March Joint Powers Authority of Moreno Valley, California (in
this section referred to as the ``JPA''), all right, title, and interest
of the United States in and to five parcels of real property, including
any improvements thereon, located at March Air Reserve Base, California
(former March Air Force Base), and consisting of approximately 36.74
total acres.
(2) The Secretary of the Navy may convey to JPA all right, title,
and interest of the United States in and to two parcels of real
property, including any improvements thereon, located at March Air
Reserve Base and consisting of approximately 10.181 total acres.
(b) Consideration.--As consideration for the conveyances under
subsection (a), JPA shall release any interest it may have in two
contiguous parcels of real property located at March Air Reserve Base
and consisting of approximately 20 acres and 28 acres, respectively.
(c) Transfer of Jurisdiction.--The Secretary of the Air Force shall
transfer, without reimbursement, to the administrative jurisdiction of
the Secretary of the Army the parcels of real property described in
subsection (b).
(d) Description of Property.--The exact acreage and legal
description of the parcels of real property to be conveyed under this
section shall be determined by surveys satisfactory to the Secretaries
concerned.
(e) Additional Terms and Conditions.--The Secretaries concerned may
require such additional terms and conditions in connection with the
conveyances under this section as the Secretaries consider appropriate
to protect the interests of the United States.

SEC. 2852. ACTIONS TO QUIET TITLE, FALLIN WATERS SUBDIVISION, EGLIN AIR
FORCE BASE, FLORIDA.

(a) Authority to Quiet Title.--(1) Notwithstanding the restoration
provisions under the heading ``quartermaster corps'' in the Second
Deficiency Appropriation Act, 1940 (Act of June 27, 1940; chapter 437;
54 Stat. 655), the Secretary of the Air Force may take appropriate
action to quiet title to tracts of land referred to in paragraph (2) on,
at, adjacent to, adjoining, or near Eglin Air Force Base, Florida. The
Secretary may take such action in order to resolve encroachments upon
private property by the United States and upon property of the United
States by private parties, which resulted from reliance on inaccurate
surveys.
(2) The tracts of land referred to in paragraph (1) are generally
described as south of United States Highway 98 and bisecting the north/
south section line of sections 13 and 14, township 2 south, range 25
west, located in the platted subdivision of Fallin

[[Page 1735]]
117 STAT. 1735

Waters, Okaloosa County, Florida. The exact acreage and legal
description of such tracts of land shall be determined by a survey
satisfactory to the Secretary.
(b) Authorized Actions.--In carrying out subsection (a), appropriate
action by the Secretary may include any of the following:
(1) Disclaiming, on behalf of the United States, any intent
by the United States to acquire by prescription any property at
or in the vicinity of Eglin Air Force Base.
(2) Disposing of tracts of land owned by the United States.
(3) Acquiring tracts of land by purchase, by donation, or by
exchange for tracts of land owned by the United States at or
adjacent to Eglin Air Force Base.

(c) Acreage Limitations.--Individual tracts of land acquired or
conveyed by the Secretary under paragraph (2) or (3) of subsection (b)
may not exceed .10 acres. The total acreage so acquired may not exceed
two acres.
(d) Consideration.--Any conveyance by the Secretary under this
section may be made, at the discretion of the Secretary, without
consideration, or by exchange for tracts of land adjoining Eglin Air
Force Base in possession of private parties who mistakenly believed that
they had acquired title to such tracts.

SEC. 2853. MODIFICATION OF LAND CONVEYANCE, EGLIN AIR FORCE BASE,
FLORIDA.

(a) Modification.--Public Law 91-347 (84 Stat. 447) is amended--
(1) in the first section, by inserting ``or for other public
purposes'' before the period at the end; and
(2) in section 3(1)--
(A) by inserting ``or for other public purposes''
after ``schools''; and
(B) by striking ``such purpose'' and inserting
``such a purpose''.

(b) [NOTE: Records.] Alteration of Legal Instrument.--The
Secretary of the Air Force shall execute and file in the appropriate
office an amended deed or other appropriate instrument effectuating the
modification of the reversionary interest retained by the United States
in connection with the conveyance made pursuant to Public Law 91-347.

PART IV--OTHER CONVEYANCES

SEC. 2861. LAND CONVEYANCE, AIR FORCE AND ARMY EXCHANGE SERVICE
PROPERTY, DALLAS, TEXAS.

(a) Conveyance Authorized.--The Secretary of Defense may authorize
the Army and Air Force Exchange Service, a nonappropriated fund
instrumentality of the United States, to convey, by sale, all right,
title, and interest of the United States in and to a parcel of real
property, including any improvements thereon, consisting of
approximately 7.5 acres located at 1515 Roundtable Drive in Dallas,
Texas.
(b) Consideration.--As consideration for the conveyance under
subsection (a), the purchaser shall pay the United States, in a single
lump sum payment, an amount equal to the fair market value of the real
property, determined pursuant to an appraisal acceptable to the
Secretary.

[[Page 1736]]
117 STAT. 1736

(c) Treatment of Consideration.--Section 574(a) of title 40, United
States Code, shall apply to the consideration received under subsection
(b), except that in the application of such section, all of the proceeds
shall be credited to the Army and Air Force Exchange Service.
(d) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under subsection (a)
shall be determined by a survey satisfactory to the Secretary. The cost
of the survey shall be borne by the purchaser.
(e) Additional Terms and Conditions.--The Secretary may require such
additional terms and conditions in connection with the conveyance under
subsection (a) as the Secretary considers appropriate to protect the
interests of the United States.

SEC. 2862. LAND CONVEYANCE, UMNAK ISLAND, ALASKA.

(a) Definitions.--In this section--
(1) The term ``Aleut Corporation'' means the regional
corporation established under the Alaska Native Claims
Settlement Act (43 U.S.C. 1601 et seq.) for the region in which
the Native Village of Nikolski, Alaska, is located.
(2) The term ``Chaluka Corporation'' means the village
corporation established under the Alaska Native Claims
Settlement Act (43 U.S.C. 1601 et seq.) for the Native Village
of Nikolski, Alaska.
(3) The term ``former Nikolski Radio Relay Site'' means the
portions of Tracts A, B, and C of Public Land Order 2374 that
are surveyed as Tracts 37, 37A, 38, 39, 39A, and 40 of township
83 south, range 136 west, Seward meridian, Alaska, and Tract B
of United States Survey 4904, Alaska, except--
(A) lots 1, 2, 5, 6, and 9 of Tract B of Amended
United States Survey 4904; and
(B) the Nikolski powerhouse land.
(4) The term ``Nikolski powerhouse land'' means the parcel
of land upon which is located the power generation building for
supplying power to the Native Village of Nikolski, the
boundaries of which are described generally as follows:
(A) Beginning at the point at which the southerly
boundary of Tract 39 of township 83 south, range 136
west, Seward meridian, Alaska, intersects the easterly
boundary of the road that connects the Native Village of
Nikolski and the airfield at Nikolski.
(B) Then meandering in a northeasterly direction
along the easterly boundary of that road until the road
intersects the westerly boundary of the road that
connects Umnak Lake and the airfield.
(C) Then meandering in a southerly direction along
the western boundary of that Umnak Lake road until that
western boundary intersects the southern boundary of
such Tract 39.
(D) Then proceeding eastward along the southern
boundary of such Tract 39 to the beginning point.
(5) The term ``Phase I lands'' means Tract 39 of township 83
south, range 136 west, Seward meridian, excluding the Nikolski
powerhouse land.
(6) The term ``Phase II lands'' means the portion of the
former Nikolski Radio Relay Site not conveyed as Phase I lands.

[[Page 1737]]
117 STAT. 1737

(7) The term ``Public Land Order 2374'' refers to the Public
Land Order issued in 1961 under which the Department of the
Interior withdrew public domain lands in the vicinity of the
Native Village of Nikolski on Umnak Island, Alaska, for use by
the Department of the Air Force as a radio relay site.

(b) Offer of Conveyance.--Subject to the requirements of this
section, the Chaluka Corporation is hereby offered ownership of the
surface estate in the former Nikolski Radio Relay Site on Umnak Island,
Alaska, and the Aleut Corporation is hereby offered the subsurface
estate of the former Nikolski Radio Relay Site, in exchange for
relinquishment by the Chaluka Corporation and the Aleut Corporation of
lot 1, section 14, township 81 south, range 133 west, Seward meridian,
Alaska.
(c) Acceptance and Relinquishment.--(1) The Secretary of the
Interior shall convey the former Nikolski Radio Relay Site as provided
in subsection (d), if the Chaluka Corporation takes the actions
specified in paragraph (2) and the Aleut Corporation takes the actions
specified in paragraph (3).
(2) As a condition for conveyance under subsection (d), the Chaluka
Corporation shall notify the Secretary of the Interior, within 180 days
after the date of the enactment of this Act, that, by means of a legally
binding resolution of its board of directors (accompanied by the written
legal opinion of counsel as to the legal sufficiency of the board of
directors' action), the Chaluka Corporation--
(A) accepts the offer under subsection (b);
(B) confirms that the area surveyed by the Bureau of Land
Management for the purpose of fulfilling the Chaluka
Corporation's final entitlements under section 12(a) and (b) of
the Alaska Native Claims Settlement Act (43 U.S.C. 1611(a) and
(b)), identified as Group Survey Number 773, accurately
represents the Chaluka Corporation's final, irrevocable Alaska
Native Claims Settlement Act priorities and entitlements, unless
any tract in Group Survey Number 773 is ultimately not conveyed
as the result of an appeal; and
(C) relinquishes lot 1, section 14, township 81 south, range
133 west, Seward meridian, Alaska, which will be charged against
the Chaluka Corporation's final entitlement under section 12(b)
of the Alaska Native Claims Settlement Act (43 U.S.C. 1611(b)).

(3) As a condition for the conveyance under subsection (d), the
Aleut Corporation shall notify the Secretary of the Interior, within 180
days after the date of the enactment of this Act, that, by means of a
legally binding resolution of its board of directors (accompanied by the
written legal opinion of counsel as to the legal sufficiency of the
board of directors' action), the Aleut Corporation--
(A) accepts the offer under subsection (b); and
(B) relinquishes all rights to lot 1, section 14, township
81 south, range 133 west, Seward meridian, Alaska.

(d) Conveyance.--(1) Upon receipt from the Chaluka Corporation and
from the Aleut Corporation of their acceptances and relinquishments
under subsection (c), the Secretary of the Interior shall convey to the
Chaluka Corporation the surface estate, and to the Aleut Corporation the
subsurface estate, of--
(A) Phase I lands as soon as practicable; and

[[Page 1738]]
117 STAT. 1738

(B) each parcel of Phase II lands upon completion by the
Department of the Air Force of environmental restoration of
Phase II lands in accordance with applicable law.

(2) Upon conveyance of a parcel of [NOTE: Termination dates.]
land under this section, the Secretary of the Interior shall terminate
the corresponding portion of Public Land Order 2374 relating to that
parcel. Upon conveyance of all Phase I and Phase II lands under this
section, the Secretary of the Interior shall terminate all remaining
portions of Public Land Order 2374 as it pertains to Umnak Island,
Alaska.

(e) Environmental Restoration.--Nothing in this section affects the
requirements and responsibilities of the United States under section
120(h) of the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980 (42 U.S.C. 9620(h)) or other applicable law. If a
hazardous substance, as that term is defined in section 101 of such Act
(42 U.S.C. 9601), is discovered on the Phase I lands subsequent to
transfer, but the hazardous substance was present on the lands before
transfer and the presence of the hazardous substance on the lands was
not the result of actions by the Chaluka Corporation or the Aleut
Corporation, the United States shall perform such response action as is
required by such Act with regard to that hazardous substance.
(f) Treatment as ANCSA Lands.--The conveyances made under subsection
(d) shall be considered to be conveyances under the Alaska Native Claims
Settlement Act (43 U.S.C. 1601 et seq.), and are subject to the
provisions of that Act, except paragraphs (3) and (4) of section 14(c)
and section 17(b)(3) (43 U.S.C. 1613(c) and 1616(b)(3)).
(g) Conveyance of Excluded Tract B Lots.--The Secretary of the
Interior shall convey, without consideration, an estate in fee simple
in--
(1) each of lots 1, 2, 5, 6, and 9 of Tract B of Amended
United States Survey 4904 that is the subject of an Aleutian
Housing Authority mutual help occupancy agreement, to the
Aleutian Housing Authority; and
(2) the remainder of such lots to the occupants of such lots
as of the date of the enactment of this Act.

(h) Conveyance of Nikolski Powerhouse Land.--The Secretary of the
Interior shall convey, without consideration, an estate in fee simple in
the Nikolski powerhouse land--
(1) to the Indian Reorganization Act Tribal Government for
the Native Village of Nikolski, upon completion of the
environmental restoration referred to in subsection (k)(2), if
after the restoration the powerhouse continues to be located on
the Nikolski powerhouse land; or
(2) the surface estate to the Chaluka Corporation and the
subsurface estate to the Aleut Corporation, if after the
restoration, the Nikolski powerhouse is no longer located on the
Nikolski powerhouse land. -

(i) Access.--(1) As a condition of the conveyance of land under
subsection (d), the Chaluka Corporation shall permit the United States,
and its agents, employees, and contractors, to have unrestricted access
to the airfield at Nikolski in perpetuity for site investigation,
restoration, remediation, and environmental monitoring of the former
Nikolski Radio Relay Site and reasonable access to that airfield, and to
other land conveyed under this section, for any activity associated with
management of lands owned by

[[Page 1739]]
117 STAT. 1739

the United States and for other governmental purposes without cost to
the United States.
(2) The surface estate conveyed under subsection (d) shall be
subject to the public's right of access over Hill and Beach Streets,
located on Tract B of United States Survey 4904.
(j) Survey Requirements.--The Bureau of Land Management is not
required to conduct additional on-the-ground surveys as a result of
conveyances under this section. The patent to the Chaluka Corporation
may be based on protracted section lines and lotting where
relinquishment under subsection (c)(2)(C) results in a change to the
Chaluka Corporation's final boundaries. No additional monumentation is
required to complete those final boundaries.
(k) Authorization of Appropriations; Transfer of Funds.--(1) There
are authorized to be appropriated to the Department of the Interior and
other appropriate agencies such sums as are necessary to carry out this
section.
(2) Using the funds identified for Nikolski Power House Clean-up
under Budget Activity 4 on page 116 of the Conference Report to
accompany H.R. 2658 of the 108th Congress (House Report 108-283), the
Secretary of the Air Force shall make a direct lump sum payment, in an
amount equal to $1,700,000, to the fund for pollution cleanup managed by
the Alaska Energy Authority for the purpose of assisting the Authority
to perform environmental restoration of the Nikolski powerhouse land.
(l) Termination.--This section (other than subsection (g)) shall
cease to be effective if--
(1) either the Chaluka Corporation or the Aleut Corporation
affirmatively rejects the offer under subsection (b); or
(2) the legally binding resolutions required by paragraphs
(2) and (3) of subsection (c) are not submitted to the Secretary
of the Interior before the end of the 180-day period specified
in such paragraphs.

Subtitle E--Other Matters

SEC. 2871. AUTHORITY TO ACCEPT GUARANTEES WITH GIFTS IN DEVELOPMENT OF
MARINE CORPS HERITAGE CENTER, MARINE CORPS BASE, QUANTICO,
VIRGINIA.

Section 2884 of the Military Construction Authorization Act for
Fiscal Year 2001 (division B of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into law by Public
Law 106-398; 114 Stat. 1654A-440)) is amended--
(1) by redesignating subsection (f) as subsection (g); and
(2) by inserting after subsection (e) the following new
subsection (f):

``(f) Acceptance of Guarantees With Gifts.--(1) The authority
available to the Secretary under section 6975 of title 10, United States
Code, to accept a qualified guarantee for purposes of projects at the
Naval Academy shall be available to the Secretary for the project to
develop the Marine Corps Heritage Center.
``(2) The [NOTE: Expiration date.]  authority available to the
Secretary under this subsection shall expire on December 31, 2006.''.

[[Page 1740]]
117 STAT. 1740

SEC. 2872. REDESIGNATION OF YUMA TRAINING RANGE COMPLEX AS BOB STUMP
TRAINING RANGE COMPLEX.

The military aviation training facility located in southwestern
Arizona and southeastern California and known as the Yuma Training Range
Complex shall be known and designated as the ``Bob Stump Training Range
Complex''. Any reference to such training range complex in any law,
regulation, map, document, record, or other paper of the United States
shall be considered to be a reference to the Bob Stump Training Range
Complex.

SEC. 2873. FEASIBILITY STUDY REGARDING CONVEYANCE OF LOUISIANA ARMY
AMMUNITION PLANT, DOYLINE, LOUISIANA.

(a) Study Required.--The Secretary of the Army shall conduct a study
of--
(1) the feasibility of using the conveyance of the Louisiana
Army Ammunition Plant in Doyline, Louisiana, as a model for a
public-private partnership for the utilization and development
of the Plant and similar parcels of real property; and
(2) the costs and benefits to the United States of such a
conveyance.

(b) Elements of Study.--In conducting the study, the Secretary shall
consider the following:
(1) The feasibility and advisability of entering into
negotiations with the State of Louisiana or the Louisiana
National Guard for the conveyance of the Louisiana Army
Ammunition Plant.
(2) The means by which the conveyance of the Plant could--
(A) facilitate the execution by the Department of
Defense of its national security mission; and
(B) facilitate the continued use of the Plant by the
Louisiana National Guard and the execution by the
Louisiana National Guard of its national security
mission.
(3) The evidence presented by the State of Louisiana of the
means by which the conveyance of the Plant could benefit current
and potential private sector and governmental tenants of the
Plant and facilitate the contribution of such tenants to
economic development in Northwestern Louisiana.
(4) The amount and type of consideration that is appropriate
for the conveyance of the Plant.
(5) The evidence presented by the State of Louisiana of the
extent to which the conveyance of the Plant to a public-private
partnership will contribute to economic growth in the State of
Louisiana, and in Northwestern Louisiana in particular.
(6) The value of any mineral rights in the lands of the
Plant.
(7) The costs and benefits to the United States of sharing
revenues and rents paid by current and potential tenants of the
Plant as a result of the Armament Retooling and Manufacturing
Support Program.

(c) Report.--Not [NOTE: Deadline.]  later than 180 days after the
date of the enactment of this Act, the Secretary shall submit to the
Committee on Armed Services of the Senate and the Committee on Armed
Services of the House of Representatives a report containing the results
of the study and any other matters in light of the study that the
Secretary considers appropriate.

[[Page 1741]]
117 STAT. 1741

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

TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

Subtitle A--National Security Programs Authorizations

Sec. 3101. National Nuclear Security Administration.
Sec. 3102. Defense environmental management.
Sec. 3103. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.
Sec. 3105. Energy supply.

Subtitle B--Program Authorizations, Restrictions, and Limitations

Sec. 3111. Termination of requirement for annual updates of long-term
plan for nuclear weapons stockpile life extension program.
Sec. 3112. Department of Energy project review groups not subject to
Federal Advisory Committee Act by reason of inclusion of
employees of Department of Energy management and operating
contractors.
Sec. 3113. Readiness posture for resumption by the United States of
underground nuclear weapons tests.
Sec. 3114. Technical base and facilities maintenance and
recapitalization activities.
Sec. 3115. Continuation of processing, treatment, and disposition of
legacy nuclear materials.
Sec. 3116. Repeal of prohibition on research and development of low-
yield nuclear weapons.
Sec. 3
117. Requirement for specific authorization of Congress for
commencement of engineering development phase or subsequent
phase of Robust Nuclear Earth Penetrator.

Subtitle C--Proliferation Matters

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

Subtitle D--Other Matters

Sec. 3131. Performance of personnel security investigations of certain
Department of Energy and Nuclear Regulatory Commission
employees in sensitive programs.
Sec. 3132. Policy of Department of Energy regarding future defense
environmental management matters.
Sec. 3133. Inclusion in 2005 stockpile stewardship plan of certain
information relating to stockpile stewardship criteria.
Sec. 3134. Progress reports on Energy Employees Occupational Illness
Compensation Program.
Sec. 3135. Report on integration activities of Department of Defense and
Department of Energy with respect to Robust Nuclear Earth
Penetrator.

Subtitle E--Consolidation of National Security Provisions

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

[[Page 1742]]
117 STAT. 1742

Subtitle A--National Security Programs Authorizations

SEC. 3101. NATIONAL NUCLEAR SECURITY ADMINISTRATION.

(a) Authorization of Appropriations.--Funds are hereby authorized to
be appropriated to the Department of Energy for fiscal year 2004 for the
activities of the National Nuclear Security Administration in carrying
out programs necessary for national security in the amount of
$8,877,347,000, to be allocated as follows:
(1) For weapons activities, $6,434,772,000.
(2) For defense nuclear nonproliferation activities,
$1,332,195,000.
(3) For naval reactors, $768,400,000.
(4) For the Office of the Administrator for Nuclear
Security, $341,980,000.

(b) Authorization of New Plant Projects.--From funds referred to in
subsection (a) that are available for carrying out plant projects, the
Secretary of Energy may carry out, for weapons activities, the following
new plant projects:
Project 04-D-101, test capabilities revitalization, Sandia
National Laboratories, Albuquerque, New Mexico, $36,450,000.
Project 04-D-102, exterior communications infrastructure
modernization, Sandia National Laboratories, Albuquerque, New
Mexico, $20,000,000.
Project 04-D-103, project engineering and design, various
locations, $2,000,000.
Project 04-D-125, chemistry and metallurgy facility
replacement project, Los Alamos National Laboratory, Los Alamos,
New Mexico, $20,500,000.
Project 04-D-126, Building 12-44 production cells upgrade,
Pantex plant, Amarillo, Texas, $8,780,000.
Project 04-D-127, cleaning and loading modifications,
Savannah River Site, Aiken, South Carolina, $2,750,000.
Project 04-D-128, TA-18 Mission relocation project, Los
Alamos National Laboratory, Los Alamos, New Mexico, $8,820,000.
Project 04-D-203, facilities and infrastructure
recapitalization program, project engineering and design,
various locations, $3,719,000.
Project 03-D-102, SM-43 replacement, Los Alamos National
Laboratory, Los Alamos, New Mexico, $38,000,000.

SEC. 3102. DEFENSE ENVIRONMENTAL MANAGEMENT.

(a) Authorization of Appropriations.--Funds are hereby authorized to
be appropriated to the Department of Energy for fiscal year 2004 for
environmental management activities in carrying out programs necessary
for national security in the amount of $6,809,814,000, to be allocated
as follows:
(1) For defense site acceleration completion,
$5,814,635,000.
(2) For defense environmental services, $995,179,000.

(b) Authorization of New Plant Projects.--From funds referred to in
subsection (a) that are available for carrying out plant projects, the
Secretary of Energy may carry out, for defense site acceleration
completion, the following new plant projects:
Project 04-D-408, glass waste storage building #2, Savannah
River Site, Aiken, South Carolina, $20,259,000.

[[Page 1743]]
117 STAT. 1743

Project 04-D-414, project engineering and design, various
locations, $23,500,000.
Project 04-D-423, 3013 container surveillance capability in
235-F, Savannah River Site, Aiken, South Carolina, $1,134,000.

SEC. 3103. OTHER DEFENSE ACTIVITIES.

Funds are hereby authorized to be appropriated to the Department of
Energy for fiscal year 2004 for other defense activities in carrying out
programs necessary for national security in the amount of $489,059,000.

SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

Funds are hereby authorized to be appropriated to the Department of
Energy for fiscal year 2004 for defense nuclear waste disposal for
payment to the Nuclear Waste Fund established in section 302(c) of the
Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222(c)) in the amount of
$392,500,000.

SEC. 3105. ENERGY SUPPLY.

Funds are hereby authorized to be appropriated to the Department of
Energy for fiscal year 2004 for energy supply activities in carrying out
programs necessary for national security in the amount of $110,473,000.

Subtitle B--Program Authorizations, Restrictions, and Limitations

SEC. 3111. [NOTE: 50 USC 2524.] TERMINATION OF REQUIREMENT FOR ANNUAL
UPDATES OF LONG-TERM PLAN FOR NUCLEAR WEAPONS STOCKPILE LIFE
EXTENSION PROGRAM.

Effective [NOTE: Effective date.] December 31, 2004, section 3133
of the National Defense Authorization Act for Fiscal Year 2000 (Public
Law 106-65; 113 Stat. 926; 42 U.S.C. 2121 note), as transferred and
redesignated as section 4204 of the Atomic Energy Defense Act by section
3141(e)(5) of this Act, is [NOTE: Post, p. 1758.] further amended by
striking subsections (c) through (f).

SEC. 3112. [NOTE: 42 USC 7234 note.] DEPARTMENT OF ENERGY PROJECT
REVIEW GROUPS NOT SUBJECT TO FEDERAL ADVISORY COMMITTEE ACT
BY REASON OF INCLUSION OF EMPLOYEES OF DEPARTMENT OF ENERGY
MANAGEMENT AND OPERATING CONTRACTORS.

An officer or employee of a management and operating contractor of
the Department of Energy, when serving as a member of a group reviewing
or advising on matters related to any one or more management and
operating contracts of the Department, shall be treated as an officer or
employee of the Department for purposes of determining whether the group
is an advisory committee within the meaning of section 3 of the Federal
Advisory Committee Act (5 U.S.C. App.).

SEC. 3113. [NOTE: 50 USC 2528a.] READINESS POSTURE FOR RESUMPTION BY
THE UNITED STATES OF UNDERGROUND NUCLEAR WEAPONS TESTS.

(a) Readiness Posture Required.--Commencing not later than October
1, 2006, the Secretary of Energy shall achieve, and thereafter maintain,
a readiness posture of not more than 18 months

[[Page 1744]]
117 STAT. 1744

for resumption by the United States of underground tests of nuclear
weapons.
(b) Description of Requirement.--For purposes of this section, a
readiness posture of not more than 18 months for resumption by the
United States of underground tests of nuclear weapons is achieved when
the Department of Energy has the capability to resume such tests, if
directed by the President to resume such tests, not later than 18 months
after the date on which the President so directs.

SEC. 3114. [NOTE: 50 USC 2453 note.] TECHNICAL BASE AND FACILITIES
MAINTENANCE AND RECAPITALIZATION ACTIVITIES.

(a) Deadline for Inclusion of Projects in Facilities and
Infrastructure Recapitalization Program.--(1) The Administrator for
Nuclear Security shall complete the selection of projects for inclusion
in the Facilities and Infrastructure Recapitalization Program of the
National Nuclear Security Administration not later than December 31,
2004.
(2) No project may be included in the Facilities and Infrastructure
Recapitalization Program after December 31, 2004, unless such project
has been selected for inclusion in that program as of that date.
(b) Termination of Facilities and Infrastructure Recapitalization
Program.--The Administrator shall terminate the Facilities and
Infrastructure Recapitalization Program not later than September 30,
2011.
(c) Readiness [NOTE: Reports.] in Technical Base and Facilities
Program.--(1) Not later than September 30, 2004, the Administrator shall
submit to the congressional defense committees a report setting forth
guidelines on the conduct of the Readiness in Technical Base and
Facilities program of the National Nuclear Security Administration.

(2) Such guidelines shall include the following:
(A) Criteria for the inclusion of projects in the program,
and for establishing priorities among projects included in the
program.
(B) Mechanisms for the management of facilities under the
program, including maintenance activities referred to in
subparagraph (C).
(C) A description of the scope of maintenance activities
under the program, including recurring maintenance, construction
of facilities, recapitalization of facilities, and
decontamination and decommissioning of facilities.

(3) Such guidelines shall ensure that the maintenance activities
referred to in paragraph (2)(C) are carried out in a timely and
efficient manner designed to avoid maintenance backlogs.
(d) Operations of Facilities Program.--(1) The Administrator shall
continue the Operations of Facilities program of the National Nuclear
Security Administration as a subprogram within the Readiness in
Technical Base and Facilities program.
(2) The Deputy Administrator for Defense Programs shall designate a
single manager to be responsible for overseeing the operations of the
Operations of Facilities subprogram within the Readiness in Technical
Base and Facilities program.
(3) For [NOTE: Reports.]  fiscal year 2005, and for each fiscal
year thereafter, the Secretary of Energy shall submit to the
congressional defense

[[Page 1745]]
117 STAT. 1745

committees, together with the budget justification materials submitted
to Congress in support of the National Nuclear Security Administration
budget for that fiscal year (as submitted with the budget of the
President under section 1105(a) of title 31, United States Code), a
separate statement of the amounts requested for such fiscal year for
each element of the Operations of Facilities subprogram, as follows:
(A) Maintenance.
(B) Facilities management and support.
(C) Utilities.
(D) Environment, safety, and health.
(E) Each other element of the subprogram.

SEC. 3115. CONTINUATION OF PROCESSING, TREATMENT, AND DISPOSITION OF
LEGACY NUCLEAR MATERIALS.

(a) Continuation of H-Canyon Facility.--Subsection (a) of section
3137 of the Floyd D. Spence National Defense Authorization Act for
Fiscal Year 2001 (as enacted into law by Public Law 106-398; 114 Stat.
1654A-460) [NOTE: 50 USC 2633.] is amended--
(1) by striking ``F-canyon and H-canyon facilities'' and
inserting ``H-canyon facility''; and
(2) by striking ``such facilities'' and inserting ``such
facility''.

(b) Modification of Limitation on Use of Funds for
Decommissioning [NOTE: 50 USC 2638.] F-Canyon Facility.--Subsection
(b) of such section is amended--
(1) by striking ``and the Defense Nuclear Facilities Safety
Board'' and all that follows through ``House of
Representatives'' and inserting ``submits to the Committee on
Armed Services of the Senate and the Committee on Armed Services
of the House of Representatives, and the Defense Nuclear
Facilities Safety Board,''; and
(2) by striking ``the following:'' and all that follows and
inserting ``a report setting forth--
``(1) an assessment whether or not all materials present in
the F-canyon facility as of the date of the report that required
stabilization have been safely stabilized as of that date;
``(2) an assessment whether or not the requirements
applicable to the F-canyon facility to meet the future needs of
the United States for fissile materials disposition can be met
through full use of the H-canyon facility at the Savannah River
Site; and
``(3) if it appears that one or more of the requirements
described in paragraph (2) cannot be met through full use of the
H-canyon facility--
``(A) an identification by the Secretary of each
such requirement that cannot be met through full use of
the H-canyon facility; and
``(B) for each requirement so identified, the
reasons why such requirement cannot be met through full
use of the H-canyon facility and a description of the
alternative capability for fissile materials disposition
that is needed to meet such requirement.''.

(c) Repeal of Superseded Plan Requirement.--Subsection (c) of such
section is repealed.

[[Page 1746]]
117 STAT. 1746

SEC. 3116. REPEAL OF PROHIBITION ON RESEARCH AND DEVELOPMENT OF LOW-
YIELD NUCLEAR WEAPONS.

(a) Repeal.--Section 3136 of the National Defense Authorization Act
for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1946; 42 U.S.C. 2121
note) is repealed.
(b) [NOTE: 42 USC 2121 note.] Construction.--Nothing in the repeal
made by subsection (a) shall be construed as authorizing the testing,
acquisition, or deployment of a low-yield nuclear weapon.

(c) [NOTE: 50 USC 2529 note.] Limitation.--The Secretary of Energy
may not commence the engineering development phase, or any subsequent
phase, of a low-yield nuclear weapon unless specifically authorized by
Congress.

(d) Report.--(1) Not later than March 1, 2004, the Secretary of
State, the Secretary of Defense and the Secretary of Energy shall
jointly submit to Congress a report assessing whether or not the repeal
of section 3136 of the National Defense Authorization Act for Fiscal
Year 1994 will affect the ability of the United States to achieve its
nonproliferation objectives and whether or not any changes in programs
and activities would be required to achieve those objectives.
(2) The report shall be submitted in unclassified form, but may
include a classified annex if necessary.

SEC. 3
117. REQUIREMENT FOR SPECIFIC AUTHORIZATION OF CONGRESS FOR
COMMENCEMENT OF ENGINEERING DEVELOPMENT PHASE OR SUBSEQUENT
PHASE OF ROBUST NUCLEAR EARTH PENETRATOR.

The Secretary of Energy may not commence the engineering development
phase (phase 6.3) of the nuclear weapons development process, or any
subsequent phase, of a Robust Nuclear Earth Penetrator weapon unless
specifically authorized by Congress.

Subtitle C--Proliferation Matters

SEC. 3121. SEMIANNUAL FINANCIAL REPORTS ON DEFENSE NUCLEAR
NONPROLIFERATION PROGRAMS.

(a) In General.--Subtitle D of the National Nuclear Security
Administration Act is amended by inserting after section 3253 (50 U.S.C.
2453) the following new section:

``SEC. 3254. [NOTE: 50 USC 2454.] SEMIANNUAL FINANCIAL REPORTS ON
DEFENSE NUCLEAR NONPROLIFERATION PROGRAMS.

``(a) Semiannual Reports Required.--The Administrator shall submit
to the Committees on Armed Services of the Senate and the House of
Representatives a semiannual report on the amounts available for the
defense nuclear nonproliferation programs of the Administration. Each
such report [NOTE: Deadline.] shall cover a half of a fiscal year (in
this section referred to as a `fiscal half') and shall be submitted not
later than 30 days after the end of that fiscal half.

``(b) Contents.--Each report for a fiscal half shall, for each such
defense nuclear nonproliferation program for which amounts are available
for the fiscal year that includes that fiscal half, set forth the
following:
``(1) The aggregate amount available for such program as of
the beginning of such fiscal half and, within such amount, the
uncommitted balances, the unobligated balances, and the
unexpended balances.

[[Page 1747]]
117 STAT. 1747

``(2) The aggregate amount newly made available for such
program during such fiscal half and, within such amount, the
amount made available by appropriations, by transfers, by
reprogrammings, and by other means.
``(3) The aggregate amount available for such program as of
the end of such fiscal half and, within such amount, the
uncommitted balances, the unobligated balances, and the
unexpended balances.''.

(b) [NOTE: 50 USC 2454 note.] First Report.--The first report
required to be submitted by section 3254 of the National Nuclear
Security Administration Act (as added by subsection (a)) shall be the
report covering the first half of fiscal year 2004.

SEC. 3122. REPORT ON REDUCTION OF EXCESSIVE UNOBLIGATED OR UNEXPENDED
BALANCES FOR DEFENSE NUCLEAR NONPROLIFERATION ACTIVITIES.

(a) Contingent Requirement for Report.--If as of September 30, 2004,
the aggregate amount unobligated, or obligated but not expended, for
defense nuclear nonproliferation activities from amounts appropriated
for such activities in fiscal year 2004 exceeds an amount equal to 20
percent of the aggregate amount appropriated for such activities in
fiscal year 2004, the Administrator for Nuclear Security shall submit to
the Committees on Armed Services of the Senate and the House of
Representatives a report containing an aggressive plan to provide for
the timely expenditure of amounts remaining unobligated, or obligated
but not expended.
(b) Submittal Date.--If required to be submitted under subsection
(a), the submittal date for the report under that subsection shall be
November 30, 2004.

SEC. 3123. [NOTE: 22 USC 5952 note.] STUDY AND REPORT RELATING TO
WEAPONS-GRADE URANIUM AND PLUTONIUM OF THE INDEPENDENT
STATES OF THE FORMER SOVIET UNION.

(a) Study Required.--The Secretary of Energy shall carry out a study
on the feasibility, costs, and benefits of--
(1) purchasing, from the independent states of the former
Soviet Union, weapons-grade uranium and plutonium excess to the
defense needs of those states; and
(2) safeguarding the uranium and plutonium so purchased
until rendered unusable for nuclear weapons.

(b) [NOTE: Deadline.] Report.--Not later than one year after the
date of the enactment of this Act, the Secretary shall submit to
Congress a report on the results of the study required by subsection
(a).

SEC. 3124. AUTHORITY TO USE INTERNATIONAL NUCLEAR MATERIALS PROTECTION
AND COOPERATION PROGRAM FUNDS OUTSIDE THE FORMER SOVIET
UNION.

(a) Authority.--Subject to the provisions of this section, the
President may obligate and expend international nuclear materials
protection and cooperation program funds for a fiscal year, and any such
funds for a fiscal year before such fiscal year that remain available
for obligation, for a defense nuclear nonproliferation project or
activity outside the states of the former Soviet Union if the President
determines each of the following:
(1) That such project or activity will--
(A)(i) assist the United States in the resolution of
a critical emerging proliferation threat; or

[[Page 1748]]
117 STAT. 1748

(ii) permit the United States to take advantage of
opportunities to achieve long-standing nonproliferation
goals; and
(B) be completed in a short period of time.
(2) That the Department of Energy is the entity of the
Federal Government that is most capable of carrying out such
project or activity.

(b) Scope of Authority.--The authority in subsection (a) to obligate
and expend funds for a project or activity includes authority to provide
equipment, goods, and services for such project or activity utilizing
such funds, but does not include authority to provide cash directly to
such project or activity.
(c) Limitation on Total Amount of Obligation.--The amount that may
be obligated in a fiscal year under the authority in subsection (a) may
not exceed $50,000,000.
(d) Limitation on Availability of Funds.--(1) The President may not
obligate funds for a project or activity under the authority in
subsection (a) until the President makes each determination specified in
that subsection with respect to such project or activity.
(2) [NOTE: Notification.] Not later than 10 days after obligating
funds under the authority in subsection (a) for a project or activity,
the President shall notify Congress in writing of the determinations
made under paragraph (1) with respect to such project or activity,
together with--
(A) a justification for such determinations; and
(B) a description of the scope and duration of such project
or activity.

(e) Additional Limitations and Requirements.--Except as otherwise
provided in subsections (a) and (b), the exercise of the authority in
subsection (a) shall be subject to any requirement or limitation under
another provision of law as follows:
(1) Any requirement for prior notice or other reports to
Congress on the use of international nuclear materials
protection and cooperation program funds or on international
nuclear materials protection and cooperation program projects or
activities.
(2) Any limitation on the obligation or expenditure of
international nuclear materials protection and cooperation
program funds.
(3) Any limitation on international nuclear materials
protection and cooperation program projects or activities.

(f) Funds.--As used in this section, the term ``international
nuclear materials protection and cooperation program funds'' means the
funds appropriated pursuant to the authorization of appropriations in
section 3101(a)(2) for such program.

SEC. 3125. [NOTE: 22 USC 5961a.] REQUIREMENT FOR ON-SITE MANAGERS.

(a) On-Site Manager Requirement.--Before obligating any defense
nuclear nonproliferation funds for a project described in subsection
(b), the Secretary of Energy shall appoint one on-site manager for that
project. The manager shall be appointed from among employees of the
Federal Government.
(b) Projects Covered.--Subsection (a) applies to a project--
(1) to be located in a state of the former Soviet Union;
(2) which involves dismantlement, destruction, or storage
facilities, or construction of a facility; and

[[Page 1749]]
117 STAT. 1749

(3) with respect to which the total contribution by the
Department of Energy is expected to exceed $50,000,000.

(c) Duties of On-Site Manager.--The on-site manager appointed under
subsection (a) shall--
(1) develop, in cooperation with representatives from
governments of countries participating in the project, a list of
those steps or activities critical to achieving the project's
disarmament or nonproliferation goals;
(2) establish a schedule for completing those steps or
activities;
(3) meet with all participants to seek assurances that those
steps or activities are being completed on schedule; and
(4) suspend United States participation in a project when a
non-United States participant fails to complete a scheduled step
or activity on time, unless directed by the Secretary of Energy
to resume United States participation.

(d) Authority to Manage More Than One Project.--(1) Subject to
paragraph (2), an employee of the Federal Government may serve as on-
site manager for more than one project, including projects at different
locations.
(2) If such an employee serves as on-site manager for more than one
project in a fiscal year, the total cost of the projects for that fiscal
year may not exceed $150,000,000.
(e) Steps or Activities.--Steps or activities referred to in
subsection (c)(1) are those activities that, if not completed, will
prevent a project from achieving its disarmament or nonproliferation
goals, including, at a minimum, the following:
(1) Identification and acquisition of permits (as defined in
subsection (g)).
(2) Verification that the items, substances, or capabilities
to be dismantled, secured, or otherwise modified are available
for dismantlement, securing, or modification.
(3) Timely provision of financial, personnel, management,
transportation, and other resources.

(f) Notification to Congress.--In any case in which the Secretary of
Energy directs an on-site manager to resume United States participation
in a project under subsection (c)(4), the Secretary shall concurrently
notify Congress of such direction.
(g) Permit Defined.--In this section, the term ``permit'' means any
local or national permit for development, general construction,
environmental, land use, or other purposes that is required in the state
of the former Soviet Union in which the project is being or is proposed
to be carried out.
(h) Effective Date.--This section shall take effect six months after
the date of the enactment of this Act.

Subtitle D--Other Matters

SEC. 3131. PERFORMANCE OF PERSONNEL SECURITY INVESTIGATIONS OF CERTAIN
DEPARTMENT OF ENERGY AND NUCLEAR REGULATORY COMMISSION
EMPLOYEES IN SENSITIVE PROGRAMS.

(a) Performance by FBI at Direction of DOE or NRC.--Subsection f. of
section 145 of the Atomic Energy Act of 1954 (42 U.S.C. 2165) is amended
to read as follows:

[[Page 1750]]
117 STAT. 1750

``f. (1) Notwithstanding the provisions of subsections a., b., and
c. of this section, but subject to subsection e. of this section, a
majority of the members of the Commission may direct that an
investigation required by such provisions on an individual described in
paragraph (2) be carried out by the Federal Bureau of Investigation
rather than by the Civil Service Commission.
``(2) An individual described in this paragraph is an individual who
is employed--
``(A) in a program certified by a majority of the members of
the Commission to be of a high degree of importance or
sensitivity; or
``(B) in any other specific position certified by a majority
of the members of the Commission to be of a high degree of
importance or sensitivity.''.

(b) Repeal of Requirement for Performance by FBI for Personnel
Security and Assurance Programs.--Subsection e.(2) of such section
is [NOTE: 42 USC 2165.]  amended by striking ``or a Personnel Security
and Assurance Program''.

SEC. 3132. [NOTE: 50 USC 2589.] POLICY OF DEPARTMENT OF ENERGY
REGARDING FUTURE DEFENSE ENVIRONMENTAL MANAGEMENT MATTERS.

(a) Policy [NOTE: Deadline.] Required.--(1) Commencing not later
than October 1, 2005, the Secretary of Energy shall have in effect a
policy for carrying out future defense environmental management matters
of the Department of Energy. The policy shall specify each officer
within the Department with responsibilities for carrying out that policy
and, for each such officer, the nature and extent of those
responsibilities.

(2) In paragraph (1), the term ``future defense environmental
management matter'' means any environmental cleanup project,
decontamination and decommissioning project, waste management project,
or related activity that arises out of the activities of the Department
in carrying out programs necessary for national security and is to be
commenced after the date of the enactment of this Act. However, such
term does not include any such project or activity the responsibility
for which has been assigned, as of the date of the enactment of this
Act, to the Environmental Management program of the Department.
(b) Reflection in Budget.--For fiscal year 2006 and each fiscal year
thereafter, the Secretary shall ensure that the budget justification
materials submitted to Congress in support of the Department of Energy
budget for such fiscal year (as submitted with the budget of the
President under section 1105(a) of title 31, United States Code) reflect
the policy required by subsection (a).
(c) Consultation.--The Secretary shall carry out this section in
consultation with the Administrator for Nuclear Security and the Under
Secretary of Energy for Energy, Science, and Environment.
(d) Report.--The Secretary shall include with the budget
justification materials submitted to Congress in support of the
Department of Energy budget for fiscal year 2005 (as submitted with the
budget of the President under section 1105(a) of title 31, United States
Code) a report on the policy that the Secretary plans to have in effect
under subsection (a) as of October 1, 2005. The report shall specify the
officers and responsibilities referred to in subsection (a).

[[Page 1751]]
117 STAT. 1751

SEC. 3133. [NOTE: 50 USC 2523 note.] INCLUSION IN 2005 STOCKPILE
STEWARDSHIP PLAN OF CERTAIN INFORMATION RELATING TO
STOCKPILE STEWARDSHIP CRITERIA.

(a) Inclusion in 2005 Stockpile Stewardship Plan.--In submitting to
Congress the updated version of the 2005 stockpile stewardship plan, the
Secretary of Energy shall include the matters specified in subsection
(b).
(b) Matters Included.--The matters referred to in subsection (a) are
the following:
(1) An update of any information or criteria described in
the report on stockpile stewardship criteria submitted under
section 4202 of the Atomic Energy Defense Act (as transferred
and redesignated by section 3161(e)(3) of this Act).
(2) A description of any additional information identified,
or criteria established, on matters covered by such section 4202
during the period beginning on the date of the submittal of the
report under such section 4202 and ending on the date of the
submittal of the updated version of the plan under subsection
(a) of this section.
(3) For each science-based tool developed by the Department
of Energy during such period--
(A) a description of the relationship of such
science-based tool to the collection of information
needed to determine that the nuclear weapons stockpile
is safe and reliable; and
(B) a description of the criteria for judging
whether or not such science-based tool provides for the
collection of such information.

(c) 2005 Stockpile Stewardship Plan Defined.--In this section, the
term ``2005 stockpile stewardship plan'' means the updated version of
the plan for maintaining the nuclear weapons stockpile developed under
section 4203 of the Atomic Energy Defense Act (as transferred and
redesignated by section 3161(e)(4) of this Act) that is required to be
submitted to Congress not later than March 15, 2005.

SEC. 3134. PROGRESS REPORTS ON ENERGY EMPLOYEES OCCUPATIONAL ILLNESS
COMPENSATION PROGRAM.

(a) Report on Access to Information for Performance of Radiation
Dose [NOTE: Deadline.] Reconstructions.--(1) Not later than 90 days
after the date of the enactment of this Act, the National Institute for
Occupational Safety and Health shall submit to Congress a report on the
ability of the Institute to obtain, in a timely, accurate, and complete
manner, information necessary for the purpose of carrying out radiation
dose reconstructions under the Energy Employees Occupational Illness
Compensation Program Act of 2000 (42 U.S.C. 7384 et seq.), including
information requested from any element of the Department of Energy.

(2) The report shall include the following:
(A) An identification of each matter adversely affecting the
ability of the Institute to obtain information described in
paragraph (1) in a timely, accurate, and complete manner.
(B) For each facility with respect to which the Institute is
carrying out one or more dose reconstructions described in
paragraph (1)--
(i) a specification of the total number of claims
requiring dose reconstruction;

[[Page 1752]]
117 STAT. 1752

(ii) a specification of the number of claims for
which dose reconstruction has been adversely affected by
any matter identified under paragraph (1); and
(iii) a specification of the number of claims
requiring dose reconstruction for which, because of any
matter identified under paragraph (1), dose
reconstruction has not been completed within 150 days
after the date on which the Secretary of Labor submitted
the claim to the Secretary of Health and Human Services.

(b) Report [NOTE: Deadline.] on Denial of Claims.--(1) Not later
than 90 days after the date of the enactment of this Act, the Secretary
of Labor shall submit to Congress a report on the denial of claims under
the Energy Employees Occupational Illness Compensation Program Act of
2000 as of the date of such report.

(2) The report shall include for each facility with respect to which
the Secretary has received one or more claims under that Act the
following:
(A) The number of claims received with respect to such
facility that have been denied, including the percentage of the
total number of claims received with respect to such facility
that have been denied.
(B) The reasons for the denial of such claims, including the
number of claims denied for each such reason.

SEC. 3135. REPORT ON INTEGRATION ACTIVITIES OF DEPARTMENT OF DEFENSE AND
DEPARTMENT OF ENERGY WITH RESPECT TO ROBUST NUCLEAR EARTH
PENETRATOR.

Section 1032 of the Bob Stump National Defense Authorization Act for
Fiscal Year 2003 (Public Law 107-314; 116 Stat. 2643; 10 U.S.C. 2358
note) is amended by adding at the end the following new subsection:
``(e) Integration Activities in Fiscal Year 2003 With Respect to
RNEP.--The report under subsection (a) that is due on April 1, 2004,
shall include, in addition to the elements specified in subsection (b),
a description of the integration and interoperability of the research
and development, procurement, and other activities undertaken during
fiscal year 2003 by the Department of Defense and the Department of
Energy with respect to the Robust Nuclear Earth Penetrator.''.

Subtitle E--Consolidation of National Security Provisions

SEC. 3141. [NOTE: 50 USC 2501 note.] TRANSFER AND CONSOLIDATION OF
RECURRING AND GENERAL PROVISIONS ON DEPARTMENT OF ENERGY
NATIONAL SECURITY PROGRAMS.

(a) Purpose.--
(1) In general.--The purpose of this section is to assemble
together, without substantive amendment but with technical and
conforming amendments of a non-substantive nature, recurring and
general provisions of law on Department of Energy national
security programs that remain in force in order to consolidate
and organize such provisions of law into a single Act intended
to comprise general provisions of law on such programs.

[[Page 1753]]
117 STAT. 1753

(2) Construction of transfers.--The transfer of a provision
of law by this section shall not be construed as amending,
altering, or otherwise modifying the substantive effect of such
provision.
(3) Treatment of satisfied requirements.--Any requirement in
a provision of law transferred under this section (including a
requirement that an amendment to law be executed) that has been
fully satisfied in accordance with the terms of such provision
of law as of the date of transfer under this section shall be
treated as so fully satisfied, and shall not be treated as being
revived solely by reason of transfer under this section.
(4) Classification.--The provisions of the Atomic Energy
Defense Act, as amended by this section, shall be classified to
the United States Code as a new chapter of title 50, United
States Code.

(b) Division Heading.--The Bob Stump National Defense Authorization
Act for Fiscal Year 2003 (Public Law 107-314) is amended by adding at
the end the following new division heading:

``DIVISION D--ATOMIC ENERGY DEFENSE PROVISIONS''.

(c) [NOTE: 42 USC 7101 note, 50 USC 2501 note.] Short Title; Table
of Contents; Definition.--
(1) Short title; table of contents.--Section 3601 of the
Atomic Energy Defense Act (title XXXVI of Public Law 107-314;
116 Stat. 2756), is--
(A) transferred to the end of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003;
(B) redesignated as section 4001;
(C) inserted after the heading for division D of the
Bob Stump National Defense Authorization Act for Fiscal
Year 2003, as added by subsection (b); and
(D) amended--
(i) by amending the heading to read as
follows:

``SEC. 4001. SHORT TITLE; TABLE OF CONTENTS.'';

(ii) by [NOTE: 50 USC 2501 note.] striking
``This title'' and inserting ``(a) Short Title.--
This division''; and
(iii) by adding at the end the following:

``(b) Table of Contents.--The table of contents for this division is
as follows:

``DIVISION D--ATOMIC ENERGY DEFENSE PROVISIONS

``Sec. 4001. Short title; table of contents.
``Sec. 4002. Definition.

``TITLE XLI--ORGANIZATIONAL MATTERS

``Sec. 4101. Naval Nuclear Propulsion Program.
``Sec. 4102. Management structure for nuclear weapons production
facilities and nuclear weapons laboratories.
``Sec. 4103. Restriction on licensing requirement for certain defense
activities and facilities.

``TITLE XLII--NUCLEAR WEAPONS STOCKPILE MATTERS

``Subtitle A--Stockpile Stewardship and Weapons Production

``Sec. 4201. Stockpile stewardship program.

[[Page 1754]]
117 STAT. 1754

``Sec. 4202. Report on stockpile stewardship criteria.
``Sec. 4203. Plan for stewardship, management, and certification of
warheads in the nuclear weapons stockpile.
``Sec. 4204. Nuclear weapons stockpile life extension program.
``Sec. 4205. Annual assessments and reports to the President and
Congress regarding the condition of the United States nuclear
weapons stockpile.
``Sec. 4206. Form of certifications regarding the safety or reliability
of the nuclear weapons stockpile.
``Sec. 4207. Nuclear test ban readiness program.
``Sec. 4208. Study on nuclear test readiness postures.
``Sec. 4209. Requirements for specific request for new or modified
nuclear weapons.
``Sec. 4210. Limitation on underground nuclear weapons tests.
``Sec. 4211. Testing of nuclear weapons.
``Sec. 4212. Manufacturing infrastructure for refabrication and
certification of nuclear weapons stockpile.
``Sec. 4213. Reports on critical difficulties at nuclear weapons
laboratories and nuclear weapons production plants.

``Subtitle B--Tritium

``Sec. 4231. Tritium production program.
``Sec. 4232. Tritium recycling.
``Sec. 4233. Tritium production.
``Sec. 4234. Modernization and consolidation of tritium recycling
facilities.
``Sec. 4235. Procedures for meeting tritium production requirements.

``TITLE XLIII--PROLIFERATION MATTERS

``Sec. 4301. International cooperative stockpile stewardship.
``Sec. 4302. Nonproliferation initiatives and activities.
``Sec. 4303. Annual report on status of Nuclear Materials Protection,
Control, and Accounting Program.
``Sec. 4304. Nuclear Cities Initiative.
``Sec. 4305. Authority to conduct program relating to fissile materials.
``Sec. 4306. Disposition of weapons-usable plutonium at Savannah River
Site.
``Sec. 4306A. Disposition of surplus defense plutonium at Savannah River
Site, Aiken, South Carolina.

``TITLE XLIV--ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT MATTERS

``Subtitle A--Environmental Restoration and Waste Management

``Sec. 4401. Defense Environmental Restoration and Waste Management
Account.
``Sec. 4402. Requirement to develop future use plans for environmental
management program.
``Sec. 4403. Integrated fissile materials management plan.
``Sec. 4404. Baseline environmental management reports.
``Sec. 4405. Accelerated schedule for environmental restoration and
waste management activities.
``Sec. 4406. Defense waste cleanup technology program.
``Sec. 4407. Report on environmental restoration expenditures.
``Sec. 4408. Public participation in planning for environmental
restoration and waste management at defense nuclear
facilities.

``Subtitle B--Closure of Facilities

``Sec. 4421. Projects to accelerate closure activities at defense
nuclear facilities.
``Sec. 4422. Reports in connection with permanent closures of Department
of Energy defense nuclear facilities.

``Subtitle C--Privatization

``Sec. 4431. Defense environmental management privatization projects.

``Subtitle D--Hanford Reservation, Washington

``Sec. 4441. Safety measures for waste tanks at Hanford nuclear
reservation.
``Sec. 4442. Hanford waste tank cleanup program reforms.
``Sec. 4443. River Protection Project.
``Sec. 4444. Funding for termination costs of River Protection Project,
Richland, Washington.

``Subtitle E--Savannah River Site, South Carolina

``Sec. 4451. Accelerated schedule for isolating high-level nuclear waste
at the defense waste processing facility, Savannah River
Site.

[[Page 1755]]
117 STAT. 1755

``Sec. 4452. Multi-year plan for clean-up.
``Sec. 4453. Continuation of processing, treatment, and disposal of
legacy nuclear materials.
``Sec. 4453A. Continuation of processing, treatment, and disposition of
legacy nuclear materials.
``Sec. 4453B. Continuation of processing, treatment, and disposition of
legacy nuclear materials.
``Sec. 4453C. Continuation of processing, treatment, and disposal of
legacy nuclear materials.
``Sec. 4453D. Continuation of processing, treatment, and disposal of
legacy nuclear materials.
``Sec. 4454. Limitation on use of funds for decommissioning F-canyon
facility.

``TITLE XLV--SAFEGUARDS AND SECURITY MATTERS

``Subtitle A--Safeguards and Security

``Sec. 4501. Prohibition on international inspections of Department of
Energy facilities unless protection of Restricted Data is
certified.
``Sec. 4502. Restrictions on access to national laboratories by foreign
visitors from sensitive countries.
``Sec. 4503. Background investigations of certain personnel at
Department of Energy facilities.
``Sec. 4504. Department of Energy counterintelligence polygraph program.
``Sec. 4504A. Counterintelligence polygraph program.
``Sec. 4505. Notice to congressional committees of certain security and
counterintelligence failures within nuclear energy defense
programs.
``Sec. 4506. Submittal of annual report on status of security functions
at nuclear weapons facilities.
``Sec. 4507. Report on counterintelligence and security practices at
national laboratories.
``Sec. 4508. Report on security vulnerabilities of national laboratory
computers.

``Subtitle B--Classified Information

``Sec. 4521. Review of certain documents before declassification and
release.
``Sec. 4522. Protection against inadvertent release of Restricted Data
and Formerly Restricted Data.
``Sec. 4523. Supplement to plan for declassification of Restricted Data
and Formerly Restricted Data.
``Sec. 4524. Protection of classified information during laboratory-to-
laboratory exchanges.
``Sec. 4525. Identification in budget materials of amounts for
declassification activities and limitation on expenditures
for such activities.

``Subtitle C--Emergency Response

``Sec. 4541. Responsibility for Defense Programs Emergency Response
Program.

``TITLE XLVI--PERSONNEL MATTERS

``Subtitle A--Personnel Management

``Sec. 4601. Authority for appointment of certain scientific,
engineering, and technical personnel.
``Sec. 4602. Whistleblower protection program.
``Sec. 4603. Employee incentives for employees at closure project
facilities.
``Sec. 4604. Department of Energy defense nuclear facilities workforce
restructuring plan.
``Sec. 4605. Authority to provide certificate of commendation to
Department of Energy and contractor employees for exemplary
service in stockpile stewardship and security.

``Subtitle B--Education and Training

``Sec. 4621. Executive management training in the Department of Energy.
``Sec. 4622. Stockpile stewardship recruitment and training program.
``Sec. 4623. Fellowship program for development of skills critical to
the Department of Energy nuclear weapons complex.

``Subtitle C--Worker Safety

``Sec. 4641. Worker protection at nuclear weapons facilities.
``Sec. 4642. Safety oversight and enforcement at defense nuclear
facilities.
``Sec. 4643. Program to monitor Department of Energy workers exposed to
hazardous and radioactive substances.
``Sec. 4644. Programs for persons who may have been exposed to radiation
released from Hanford nuclear reservation.

[[Page 1756]]
117 STAT. 1756

``TITLE XLVII--BUDGET AND FINANCIAL MANAGEMENT MATTERS

``Subtitle A--Recurring National Security Authorization Provisions

``Sec. 4701. Definitions.
``Sec. 4702. Reprogramming.
``Sec. 4703. Minor construction projects.
``Sec. 4704. Limits on construction projects.
``Sec. 4705. Fund transfer authority.
``Sec. 4706. Conceptual and construction design.
``Sec. 4707. Authority for emergency planning, design, and construction
activities.
``Sec. 4708. Scope of authority to carry out plant projects.
``Sec. 4709. Availability of funds.
``Sec. 4710. Transfer of defense environmental management funds.
``Sec. 4711. Transfer of weapons activities funds.
``Sec. 4712. Funds available for all national security programs of the
Department of Energy.

``Subtitle B--Penalties

``Sec. 4721. Restriction on use of funds to pay penalties under
environmental laws.
``Sec. 4722. Restriction on use of funds to pay penalties under Clean
Air Act.

``Subtitle C--Other Matters

``Sec. 4731. Single request for authorization of appropriations for
common defense and security programs.

``TITLE XLVIII--ADMINISTRATIVE MATTERS

``Subtitle A--Contracts

``Sec. 4801. Costs not allowed under covered contracts.
``Sec. 4802. Prohibition and report on bonuses to contractors operating
defense nuclear facilities.
``Sec. 4803. Contractor liability for injury or loss of property arising
out of atomic weapons testing programs.

``Subtitle B--Research and Development

``Sec. 4811. Laboratory-directed research and development programs.
``Sec. 4812. Limitations on use of funds for laboratory directed
research and development purposes.
``Sec. 4812A. Limitation on use of funds for certain research and
development purposes.
``Sec. 4813. Critical technology partnerships.
``Sec. 4814. University-based research collaboration program.

``Subtitle C--Facilities Management

``Sec. 4831. Transfers of real property at certain Department of Energy
facilities.
``Sec. 4832. Engineering and manufacturing research, development, and
demonstration by plant managers of certain nuclear weapons
production plants.
``Sec. 4833. Pilot program relating to use of proceeds of disposal or
utilization of certain Department of Energy assets.

``Subtitle D--Other Matters

``Sec. 4851. Semiannual reports on local impact assistance.
``Sec. 4852. Payment of costs of operation and maintenance of
infrastructure at Nevada Test Site.''.

(2) Definition.--Division D of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as amended by
this section, is further amended by adding at the end the
following new section:

``SEC. 4002. [NOTE: 50 USC 2501.] DEFINITION.

``In this division, the term `congressional defense committees'
means--
``(1) the Committee on Armed Services and the Committee on
Appropriations of the Senate; and
``(2) the Committee on Armed Services and the Committee on
Appropriations of the House of Representatives.''.

(d) Organizational Matters.--

[[Page 1757]]
117 STAT. 1757

(1) Title heading.--Division D of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as amended by
this section, is further amended by adding at the end the
following:

``TITLE XLI--ORGANIZATIONAL MATTERS''.

(2) [NOTE: 50 USC 2511.] Naval nuclear propulsion
program.--Section 1634 of the Department of [NOTE: 42 USC 7158
note.] Defense Authorization Act, 1985 (Public Law 98-525; 98
Stat. 2649), is--
(A) transferred to title XLI of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as added by paragraph (1);
(B) inserted after the title heading for such title,
as so added; and
(C) amended--
(i) by striking the section heading and
inserting the following new section heading:

``SEC. 4101. NAVAL NUCLEAR PROPULSION PROGRAM.'';

and
(ii) by striking ``Sec. 1634.''.
(3) [NOTE: 50 USC 2512.] Management structure for
facilities and laboratories.--Section 3140 of the National
Defense Authorization Act for Fiscal Year 1997 [NOTE: 42 USC
7252 note.] (Public Law 104-201; 110 Stat. 2833), is--
(A) transferred to title XLI of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4102;
(C) inserted after section 4101, as added by
paragraph (2); and
(D) amended in [NOTE: 50 USC 2512.] subsection
(d)(2), by striking ``120 days after the date of the
enactment of this Act,'' and inserting ``January 21,
1997,''.
(4) Restriction [NOTE: 50 USC 2513.] on licensing
requirements for certain activities and facilities.--Section 210
of the Department of Energy National Security and Military
Applications of Nuclear Energy Authorization Act of
1981 [NOTE: 42 USC 7272.] (Public Law 96-540; 94 Stat. 3202),
is--
(A) transferred to title XLI of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) inserted after section 4102, as added by
paragraph (3); and
(C) amended--
(i) by striking the section heading and
inserting the following new section heading:

``SEC. 4103. RESTRICTION ON LICENSING REQUIREMENT FOR CERTAIN DEFENSE
ACTIVITIES AND FACILITIES.'';

(ii) by striking ``Sec. 210.''; and
(iii) by [NOTE: 50 USC 2513.] striking
``this or any other Act'' and inserting ``the
Department of Energy National Security and
Military Applications of Nuclear Energy

[[Page 1758]]
117 STAT. 1758

Authorization Act of 1981 (Public Law 96-540) or
any other Act''.

(e) Nuclear Weapons Stockpile Matters.--
(1) Headings.--Division D of the Bob Stump National Defense
Authorization Act for Fiscal Year 2003, as amended by this
section, is further amended by adding at the end the following
new headings:

``TITLE XLII--NUCLEAR WEAPONS STOCKPILE MATTERS

``Subtitle A--Stockpile Stewardship and Weapons Production''.

(2) Stockpile [NOTE: 50 USC 2521.] stewardship program.--
Section 3138 of the National Defense [NOTE: 42 USC 2121
note.] Authorization Act for Fiscal Year 1994 (Public Law 103-
160; 107 Stat. 1946), as amended by section 3152(e) of the
National Defense Authorization Act for Fiscal Year 1998 (Public
Law 105-85; 111 Stat. 2042), is--
(A) transferred to title XLII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as added by paragraph (1);
(B) redesignated as section 4201; and
(C) inserted after the heading for subtitle A of
such title, as so added.
(3) [NOTE: 50 USC 2522.] Stockpile stewardship criteria.--
Section 3158 of the Strom Thurmond [NOTE: 42 USC 2121
note.] National Defense Authorization Act for Fiscal Year 1999
(Public Law 105-261; 112 Stat. 2257), as amended, is--
(A) transferred to title XLII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4202; and
(C) inserted after section 4201, as added by
paragraph (2).
(4) [NOTE: 50 USC 2523.] Plan for stewardship, management,
and certification of warheads in stockpile.--Section 3151 of the
National Defense Authorization [NOTE: 42 USC 2121 note.] Act
for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 2041), is--
(A) transferred to title XLII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4203; and
(C) inserted after section 4202, as added by
paragraph (3).
(5) [NOTE: 50 USC 2524.] Stockpile life extension
program.--Section 3133 of the National Defense [NOTE: 42 USC
2121 note.] Authorization Act for Fiscal Year 2000 (Public Law
106-65; 113 Stat. 926), is--
(A) transferred to title XLII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) [NOTE: Ante, p. 1743.] redesignated as section
4204;
(C) inserted after section 4203, as added by
paragraph (4); and

[[Page 1759]]
117 STAT. 1759

(D) amended in subsection (c)(1) by striking ``the
date of the enactment of this Act'' and inserting
``October 5, 1999''.
(6) Annual [NOTE: 50 USC 2525.] assessments and reports on
condition of stockpile.--Section 3141 of the Bob Stump National
Defense Authorization Act for [NOTE: 42 USC 7274s.] Fiscal
Year 2003 (Public Law 107-314; 116 Stat. 2730), is--
(A) transferred to title XLII of such Act, as
amended by this subsection;
(B) redesignated as section 4205;
(C) inserted after section 4204, as added by
paragraph (5); and
(D) [NOTE: 50 USC 2525.] amended in subsection
(d)(3)(B) by striking ``section 3137 of the National
Defense Authorization Act for Fiscal Year 1996 (42
U.S.C. 2121 note)'' and inserting ``section 4212''.
(7) Form [NOTE: 42 USC 2121 note, 50 USC 2526.] of certain
certifications regarding stockpile.--Section 3194 of the Floyd
D. Spence National Defense Authorization Act for Fiscal Year
2001 (as enacted into law by Public Law 106-398; 114 Stat.
1654A-481), is--
(A) transferred to title XLII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4206; and
(C) inserted after section 4205, as added by
paragraph (6).
(8) Nuclear [NOTE: 42 USC 2121 note, 50 USC 2527.] test
ban readiness program.--Section 1436 of the National Defense
Authorization Act, Fiscal Year 1989 (Public Law 100-456; 102
Stat. 2075), is--
(A) transferred to title XLII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4207;
(C) inserted after section 4206, as added by
paragraph (7); and
(D) [NOTE: 50 USC 2527.] amended in the section
heading by adding a period at the end.
(9) [NOTE: 42 USC 2121 note, 50 USC 2528.] Study on
nuclear test readiness postures.--Section 3152 of the National
Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
106; 110 Stat. 623), as amended by section 3192 of the Floyd D.
Spence National Defense Authorization Act for Fiscal Year 2001
(as enacted into law by Public Law 106-398; 114 Stat. 1654A-
480), is--
(A) transferred to title XLII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4208; and
(C) inserted after section 4207, as added by
paragraph (8).
(10) Requirements [NOTE: 50 USC 2529.] for requests for
new or modified nuclear weapons.--Section 3143 of the Bob Stump
National Defense Authorization Act for [NOTE: 42 USC
7271d.] Fiscal Year 2003 (Public Law 107-314; 116 Stat. 2733),
is--
(A) transferred to title XLII of such Act, as
amended by this subsection;
(B) redesignated as section 4209; and

[[Page 1760]]
117 STAT. 1760

(C) inserted after section 4208, as added by
paragraph (9).
(11) [NOTE: 42 USC 2121 note, 50 USC 2530.] Limitation on
underground nuclear weapons tests.--Subsection (f) of section
507 of the Energy and Water Development Appropriations Act, 1993
(Public Law 102-337; 106 Stat. 1345), is--
(A) transferred to title XLII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) inserted after section 4209, as added by
paragraph (10); and
(C) amended--
(i) by inserting before the text the following
new section heading:

``SEC. 4210. LIMITATION ON UNDERGROUND NUCLEAR WEAPONS TESTS.'';

and
(ii) by striking ``(f)''.
(12) [NOTE: 50 USC 2531.] Testing of nuclear weapons.--
Section 3137 of the National Defense [NOTE: 42 USC 2121
note.] Authorization Act for Fiscal Year 1994 (Public Law 103-
160; 107 Stat. 1946), is--
(A) transferred to title XLII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4211;
(C) inserted after section 4210, as added by
paragraph (11); and
(D) [NOTE: 50 USC 2531.] amended--
(i) in subsection (a), by inserting ``of the
National Defense Authorization Act for Fiscal Year
1994 (Public Law 103-160)'' after ``section
3101(a)(2)''; and
(ii) in subsection (b), by striking ``this
Act'' and inserting ``the National Defense
Authorization Act for Fiscal Year 1994''.
(13) [NOTE: 50 USC 2532.] Manufacturing infrastructure for
stockpile.--Section 3137 of the National Defense Authorization
Act for Fiscal Year 1996 (Public Law [NOTE: 42 USC 2121
note.] 104-106; 110 Stat. 620), as amended by section 3132 of
the National Defense Authorization Act for Fiscal Year 1997
(Public Law 104-201; 110 Stat. 2829), is--
(A) transferred to title XLII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4212;
(C) inserted after section 4211, as added by
paragraph (12); and
(D) [NOTE: 50 USC 2532.] amended in subsection (d)
by inserting ``of the National Defense Authorization Act
for Fiscal Year 1996 (Public Law 104-106)'' after
``section 3101(b)''.
(14) Reports [NOTE: 10 USC 179, 50 USC 2533.] on critical
difficulties at laboratories and plants.--Section 3159 of the
National Defense Authorization Act for Fiscal Year
1997 [NOTE: 42 USC 7274o.] (Public Law 104-201; 110 Stat.
2842), as amended by section 1305 of the National Defense
Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111
Stat. 1954) and section 3163 of the National Defense


[[Page 1761]]
117 STAT. 1761

Authorization Act for Fiscal Year 2000 (Public Law 106-65; 113
Stat. 944), is--
(A) transferred to title XLII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4213; and
(C) inserted after section 4212, as added by
paragraph (13).
(15) Subtitle heading on tritium.--Title XLII of the Bob
Stump National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection, is further amended by adding at
the end the following new subtitle heading:

``Subtitle B--Tritium''.

(16) [NOTE: 42 USC 2121 note, 50 USC 2541.] Tritium
production program.--Section 3133 of the National Defense
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110
Stat. 618), is--
(A) transferred to title XLII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4231;
(C) inserted after the heading for subtitle B of
such title XLII, as added by paragraph (15); and
(D) [NOTE: 50 USC 2541.] amended--
(i) by striking ``the date of the enactment of
this Act'' each place it appears and inserting
``February 10, 1996''; and
(ii) in subsection (b), by inserting ``of the
National Defense Authorization Act for Fiscal Year
1996 (Public Law 104-106)'' after ``section
3101''.
(17) [NOTE: 50 USC 2542.] Tritium recycling.--Section 3136
of the National Defense Authorization Act for Fiscal Year 1996
(Public Law 104-106; 110 Stat. 620), is--
(A) transferred to title XLII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4232; and
(C) inserted after section 4231, as added by
paragraph (16).
(18) [NOTE: 50 USC 2543.] Tritium production.--Subsections
(c) and (d) of section 3133 of the National Defense
Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110
Stat. 2830) are--
(A) transferred to title XLII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) inserted after section 4232, as added by
paragraph (17); and
(C) amended--
(i) by inserting before the text the following
new section heading:

``SEC. 4233. TRITIUM PRODUCTION.'';

(ii) by redesignating such subsections as
subsections (a) and (b), respectively; and
(iii) in subsection (a), as so redesignated,
by inserting ``of Energy'' after ``The
Secretary''.

[[Page 1762]]
117 STAT. 1762

(19) [NOTE: 50 USC 2544.] Modernization and consolidation
of tritium recycling facilities.--Section 3134 of the National
Defense Authorization Act for Fiscal Year 1997 (Public Law 104-
201; 110 Stat. 2830), is--
(A) transferred to title XLII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4234;
(C) inserted after section 4233, as added by
paragraph (18); and
(D) amended in subsection (b) by inserting ``of the
National Defense Authorization Act for Fiscal Year 1997
(Public Law 104-201)'' after ``section 3101''.
(20) [NOTE: 50 USC 2545.] Procedures for meeting tritium
production requirements.--Section 3134 of the National Defense
Authorization Act for Fiscal Year 2000 (Public Law 106-65; 113
Stat. 927), is--
(A) transferred to title XLII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4235; and
(C) inserted after section 4234, as added by
paragraph (19).

(f) Proliferation Matters.--
(1) Title heading.--Division D of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as amended by
this section, is further amended by adding at the end the
following new title heading:

``TITLE XLIII--PROLIFERATION MATTERS''.

(2) [NOTE: 42 USC 7273c, 50 USC 2561.] International
cooperative stockpile stewardship.--Section 3133 of the National
Defense Authorization Act for Fiscal Year 1998 (Public Law 105-
85; 111 Stat. 2036), as amended by sections 1069 and 3131 of the
Strom Thurmond National Defense Authorization Act for Fiscal
Year 1999 (Public Law 105-261; 112 Stat. 2136, 2246), is--
(A) transferred to title XLIII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as added by paragraph (1);
(B) redesignated as section 4301;
(C) inserted after the heading for such title, as so
added; and
(D) amended in [NOTE: 50 USC 2561.] subsection
(b)(3) by striking ``this Act'' and inserting ``the
National Defense Authorization Act for Fiscal Year 1998
(Public Law 105-85)''.
(3) [NOTE: 50 USC 2562.] Nonproliferation initiatives and
activities.--Section 3136 of the National Defense Authorization
Act for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 927),
is--
(A) transferred to title XLIII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4302;
(C) inserted after section 4301, as added by
paragraph (2); and

[[Page 1763]]
117 STAT. 1763

(D) amended in subsection (b)(1) by striking ``this
title'' and inserting ``title XXXI of the National
Defense Authorization Act for Fiscal Year 2000 (Public
Law 106-65)''.
(4) Annual [NOTE: 22 USC 5952 note, 50 USC 2563.] report
on materials protection, control, and accounting program.--
Section 3171 of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into law by
Public Law 106-398; 114 Stat. 1645A-475), is--
(A) transferred to title XLIII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4303;
(C) inserted after section 4302, as added by
paragraph (3); and
(D) amended in [NOTE: 50 USC 2563.] subsection
(c)(1) by striking ``this Act'' and inserting ``the
Floyd D. Spence National Defense Authorization Act for
Fiscal Year 2001 (as enacted into law by Public Law 106-
398)''.
(5) Nuclear [NOTE: 50 USC 2564.] cities initiative.--
Section 3172 of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into law by
Public Law 106-398; 114 Stat. 1645A-476), is--
(A) transferred to title XLIII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4304; and
(C) inserted after section 4303, as added by
paragraph (4).
(6) Programs [NOTE: 22 USC 5952 note, 50 USC 2565.] on
fissile materials.--Section 3131 of the National Defense
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110
Stat. 617), as amended by section 3152 of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003 (Public Law 107-
314; 116 Stat. 2738), is--
(A) transferred to title XLIII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4305; and
(C) inserted after section 4304, as added by
paragraph (5).
(7) Disposition of plutonium.--
(A) Disposition of weapons [NOTE: 50 USC
2566.] usable plutonium.--Section 3182 of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003
(Public Law 107-314; 116 Stat. 2747), is--
(i) transferred to title XLIII of such Act, as
amended by this subsection;
(ii) redesignated as section 4306; and
(iii) inserted after section 4305, as added by
paragraph (6).
(B) [NOTE: 50 USC 2567.] Disposition of surplus
defense plutonium.--Section 3155 of the National Defense
Authorization Act for Fiscal Year 2002 (Public Law 107-
107; 115 Stat. 1378), is--
(i) transferred to title XLIII of the Bob
Stump National Defense Authorization Act for
Fiscal Year 2003, as amended by this subsection;

[[Page 1764]]
117 STAT. 1764

(ii) redesignated as section 4306A; and
(iii) inserted after section 4306, as added by
subparagraph (A).

(g) Environmental Restoration and Waste Management Matters.--
(1) Headings.--Division D of the Bob Stump National Defense
Authorization Act for Fiscal Year 2003, as amended by this
section, is further amended by adding at the end the following
new headings:

``TITLE XLIV--ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT MATTERS

``Subtitle A--Environmental Restoration and Waste Management''.

(2) [NOTE: 42 USC 7274f, 50 USC 2581.] Defense
environmental restoration and waste management account.--Section
3134 of the National Defense Authorization Act for Fiscal Years
1992 and 1993 (Public Law 102-190; 105 Stat. 1575), is--
(A) transferred to title XLIV of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as added by paragraph (1);
(B) redesignated as section 4401; and
(C) inserted after the heading for subtitle A of
such title, as so added.
(3) [NOTE: 42 USC 7274k note, 50 USC 2582.] Future use
plans for environmental management program.--Section 3153 of the
National Defense Authorization Act for Fiscal Year 1997 (Public
Law 104-201; 110 Stat. 2839), is--
(A) transferred to title XLIV of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4402;
(C) inserted after section 4401, as added by
paragraph (2); and
(D) [NOTE: 50 USC 2582.] amended--
(i) in subsection (d), by striking ``the date
of the enactment of this Act'' and inserting
``September 23, 1996,''; and
(ii) in subsection (h)(1), by striking ``the
date of the enactment of this Act'' and inserting
``September 23, 1996''.
(4) Integrated [NOTE: 50 USC 2583.] fissile materials
management plan.--Section 3172 of the National Defense
Authorization Act for Fiscal Year 2000 (Public Law 106-65; 113
Stat. 948), is--
(A) transferred to title XLIV of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4403; and
(C) inserted after section 4402, as added by
paragraph (3).

[[Page 1765]]
117 STAT. 1765

(5) Baseline [NOTE: 42 USC 7274k, 50 USC
2584.] environmental management reports.--Section 3153 of the
National Defense Authorization Act for Fiscal Year 1994 (Public
Law 103-160; 107 Stat. 1950), as amended by section 3160 of the
National Defense Authorization Act for Fiscal Year 1995 (Public
Law 103-337; 108 Stat. 3094), section 3152 of the National
Defense Authorization Act for Fiscal Year 1997 (Public Law 104-
201; 110 Stat. 2839), and section 3160 of the National Defense
Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111
Stat. 2048), is--
(A) transferred to title XLIV of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4404; and
(C) inserted after section 4403, as added by
paragraph (4).
(6) Accelerated [NOTE: 42 USC 7274k note, 50 USC
2585.] schedule for environmental restoration and waste
management.--Section 3156 of the National Defense Authorization
Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 625),
is--
(A) transferred to title XLIV of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4405;
(C) inserted after section 4404, as added by
paragraph (5); and
(D) amended in subsection [NOTE: 50 USC
2585.] (b)(2) by inserting before the period the
following: ``, the predecessor provision to section 4404
of this Act''.
(7) Defense [NOTE: 42 USC 7274a, 50 USC 2586.] waste
cleanup technology program.--Section 3141 of the National
Defense Authorization Act for Fiscal Years 1990 and 1991 (Public
Law 101-189; 103 Stat. 1679), is--
(A) transferred to title XLIV of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4406;
(C) inserted after section 4405, as added by
paragraph (6); and
(D) amended in the section [NOTE: 50 USC
2586.] heading by adding a period at the end.
(8) Report [NOTE: 42 USC 7274c, 50 USC 2587.] on
environmental restoration expenditures.--Section 3134 of the
National Defense Authorization Act for Fiscal Year 1991 (Public
Law 101-510; 104 Stat. 1833), is--
(A) transferred to title XLIV of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4407;
(C) inserted after section 4406, as added by
paragraph (7); and
(D) amended in the [NOTE: 50 USC 2587.] section
heading by adding a period at the end.
(9) Public [NOTE: 42 USC 7274g note, 50 USC
2588.] participation in planning for environmental restoration
and waste management.--Subsection (e) of section 3160 of the
National Defense Authorization Act for Fiscal Year 1995 (Public
Law 103-337; 108 Stat. 3095), is--

[[Page 1766]]
117 STAT. 1766

(A) transferred to title XLIV of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) inserted after section 4407, as added by
paragraph (8); and
(C) amended--
(i) by inserting before the text the following
new section heading:

``SEC. 4408. PUBLIC PARTICIPATION IN PLANNING FOR ENVIRONMENTAL
RESTORATION AND WASTE MANAGEMENT AT DEFENSE NUCLEAR
FACILITIES.'';

and
(ii) by striking ``(e) Public Participation in
Planning.--''.
(10) Subtitle heading on closure of facilities.--Title XLIV
of the Bob Stump National Defense Authorization Act for Fiscal
Year 2003, as amended by this subsection, is further amended by
adding at the end the following new subtitle heading:

``Subtitle B--Closure of Facilities''.

(11) [NOTE: 42 USC 7274n, 50 USC 2601.] Projects to
accelerate closure activities at defense nuclear facilities.--
Section 3143 of the National Defense Authorization Act for
Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2836), is--
(A) transferred to title XLIV of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4421;
(C) inserted after the heading for subtitle B of
such title, as added by paragraph (10); and
(D) [NOTE: 50 USC 2601.] amended in subsection (i)
by striking ``the expiration of the 15-year period
beginning on the date of the enactment of this Act'' and
inserting ``September 23, 2011''.
(12) Reports [NOTE: 42 USC 7274b, 50 USC 2602.] in
connection with permanent closure of defense nuclear
facilities.--Section 3156 of the National Defense Authorization
Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 103
Stat. 1683), is--
(A) transferred to title XLIV of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4422;
(C) inserted after section 4421, as added by
paragraph (11); and
(D) amended in the section [NOTE: 50 USC
2602.] heading by adding a period at the end.
(13) Subtitle heading on privatization.--Title XLIV of the
Bob Stump National Defense Authorization Act for Fiscal Year
2003, as amended by this subsection, is further amended by
adding at the end the following new subtitle heading:

[[Page 1767]]
117 STAT. 1767

``Subtitle C--Privatization''.

(14) Defense [NOTE: 50 USC 2611.] environmental management
privatization projects.--Section 3132 of the National Defense
Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111
Stat. 2034), is--
(A) transferred to title XLIV of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4431;
(C) inserted after the heading for subtitle C of
such title, as added by paragraph (13); and
(D) amended--
(i) in subsections (a), (c)(1)(B)(i), and (d),
by inserting ``of the National Defense
Authorization Act for Fiscal Year 1998 (Public Law
105-85)'' after ``section 3102(i)''; and
(ii) in subsections (c)(1)(B)(ii) and (f), by
striking ``the date of enactment of this Act'' and
inserting ``November 18, 1997''.
(15) Subtitle heading on hanford reservation.--Title XLIV of
the Bob Stump National Defense Authorization Act for Fiscal Year
2003, as amended by this subsection, is further amended by
adding at the end the following new subtitle heading:

``Subtitle D--Hanford Reservation, Washington''.

(16) Safety [NOTE: 50 USC 2621.] measures for waste
tanks.--Section 3137 of the National Defense Authorization Act
for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1833), is--
(A) transferred to title XLIV of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4441;
(C) inserted after the heading for subtitle D of
such title, as added by paragraph (15); and
(D) amended--
(i) in the section heading, by adding a period
at the end;
(ii) in subsection (a), by striking ``Within
90 days after the date of the enactment of this
Act,'' and inserting ``Not later than February 3,
1991,'';
(iii) in subsection (b), by striking ``Within
120 days after the date of the enactment of this
Act,'' and inserting ``Not later than March 5,
1991,'';
(iv) in subsection (c), by striking
``Beginning 120 days after the date of the
enactment of this Act,'' and inserting ``Beginning
March 5, 1991,''; and
(v) in subsection (d), by striking ``Within
six months after the date of the enactment of this
Act,'' and inserting ``Not later than May 5,
1991,''.
(17) Waste [NOTE: 50 USC 2622.] tank cleanup program.--
Section 3139 of the Strom Thurmond National Defense
Authorization Act for Fiscal

[[Page 1768]]
117 STAT. 1768

Year 1999 (Public Law 105-261; 112 Stat. 2250), as amended by
section 3141 of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into law by
Public Law 106-398; 114 Stat. 1654A-463) and section 3135 of the
National Defense Authorization Act for Fiscal Year 2002 (Public
Law 107-107; 115 Stat. 1368), is--
(A) transferred to title XLIV of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4442;
(C) inserted after section 4441, as added by
paragraph (16); and
(D) amended in subsection (d) by striking ``30 days
after the date of the enactment of the Floyd D. Spence
National Defense Authorization Act for Fiscal Year
2001,'' and inserting ``November 29, 2000,''.
(18) [NOTE: 50 USC 2623.] River protection project.--
Subsection (a) of section 3141 of the Floyd D. Spence National
Defense Authorization Act for Fiscal Year 2001 (as enacted into
law by Public Law 106-398; 114 Stat. 1654A-462), is--
(A) transferred to title XLIV of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) inserted after section 4442, as added by
paragraph (17); and
(C) amended--
(i) by inserting before the text the following
new section heading:

``SEC. 4443. RIVER PROTECTION PROJECT.'';

and
(ii) by striking ``(a) Redesignation of
Project.--''.
(19) [NOTE: 50 USC 2624.] Funding for termination costs of
river protection project.--Section 3131 of the Floyd D. Spence
National Defense Authorization Act for Fiscal Year 2001 (as
enacted into law by Public Law 106-398; 114 Stat. 1654A-454),
is--
(A) transferred to title XLIV of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4444;
(C) inserted after section 4443, as added by
paragraph (18); and
(D) amended--
(i) by striking ``section 3141'' and inserting
``section 4443''; and
(ii) by striking ``the date of the enactment
of this Act'' and inserting ``October 30, 2000''.
(20) Subtitle heading on savannah river site, south
carolina.--Title XLIV of the Bob Stump National Defense
Authorization Act for Fiscal Year 2003, as amended by this
subsection, is further amended by adding at the end the
following new subtitle heading:

[[Page 1769]]
117 STAT. 1769

``Subtitle E--Savannah River Site, South Carolina''.

(21) [NOTE: 50 USC 2631.] Accelerated schedule for
isolating high-level nuclear waste at defense waste processing
facility.--Section 3141 of the National Defense Authorization
Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2834),
is--
(A) transferred to title XLIV of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as 4451; and
(C) inserted after the heading for subtitle E of
such title, as added by paragraph (20).
(22) Multi-year [NOTE: 50 USC 2632.] plan for clean-up.--
Subsection (e) of section 3142 of the National Defense
Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110
Stat. 2834), is--
(A) transferred to title XLIV of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) inserted after section 4451, as added by
paragraph (21); and
(C) amended--
(i) by inserting before the text the following
new section heading:

``SEC. 4452. MULTI-YEAR PLAN FOR CLEAN-UP.'';

and
(ii) by striking ``(e) Multi-Year Plan for
Clean-Up at Savannah River Site.--The Secretary''
and inserting ``The Secretary of Energy''.
(23) [NOTE: 50 USC 2633.] Continuation of processing,
treatment, and disposal of legacy nuclear materials.--
(A) Fiscal year 2001.--Subsection (a) of section
3137 of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into
law by Public Law 106-398; 114 Stat. 1654A-460), is--
(i) transferred to title XLIV of the Bob Stump
National Defense Authorization Act for Fiscal Year
2003, as amended by this subsection;
(ii) inserted after section 4452, as added by
paragraph (22); and
(iii) amended--
(I) by inserting before the text the
following new section heading:

``SEC. 4453. CONTINUATION OF PROCESSING, TREATMENT, AND DISPOSAL OF
LEGACY NUCLEAR MATERIALS.'';

and
(II) by striking ``(a)
Continuation.--''.
(B) [NOTE: 50 USC 2634.] Fiscal year 2000.--
Section 3132 of the National Defense Authorization Act
for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 924),
is--
(i) transferred to title XLIV of the Bob Stump
National Defense Authorization Act for Fiscal Year
2003, as amended by this subsection;
(ii) redesignated as section 4453A; and

[[Page 1770]]
117 STAT. 1770

(iii) inserted after section 4453, as added by
subparagraph (A).
(C) Fiscal [NOTE: 50 USC 2635.] year 1999.--
Section 3135 of the Strom Thurmond National Defense
Authorization Act for Fiscal Year 1999 (Public Law 105-
261; 112 Stat. 2248), is--
(i) transferred to title XLIV of the Bob Stump
National Defense Authorization Act for Fiscal Year
2003, as amended by this subsection;
(ii) redesignated as section 4453B; and
(iii) inserted after section 4453A, as added
by subparagraph (B).
(D) [NOTE: 50 USC 2636.] Fiscal year 1998.--
Subsection (b) of section 3136 of the National Defense
Authorization Act for Fiscal Year 1998 (Public Law 105-
85; 111 Stat. 2038), is--
(i) transferred to title XLIV of the Bob Stump
National Defense Authorization Act for Fiscal Year
2003, as amended by this subsection;
(ii) inserted after section 4453B, as added by
subparagraph (C); and
(iii) amended--
(I) by inserting before the text the
following new section heading:

``SEC. 4453C. CONTINUATION OF PROCESSING, TREATMENT, AND DISPOSAL OF
LEGACY NUCLEAR MATERIALS.'';

and
(II) by striking ``(b) Requirement
for Continuing Operations at Savannah
River
Site.--''.
(E) [NOTE: 50 USC 2637.] Fiscal year 1997.--
Subsection (f) of section 3142 of the National Defense
Authorization Act for Fiscal Year 1997 (Public Law 104-
201; 110 Stat. 2836), is--
(i) transferred to title XLIV of the Bob Stump
National Defense Authorization Act for Fiscal Year
2003, as amended by this subsection;
(ii) inserted after section 4453C, as added by
subparagraph (D); and
(iii) amended--
(I) by inserting before the text the
following new section heading:

``SEC. 4453D. CONTINUATION OF PROCESSING, TREATMENT, AND DISPOSAL OF
LEGACY NUCLEAR MATERIALS.'';

(II) by striking ``(f) Requirement
for Continuing Operations at Savannah
River Site.--The Secretary'' and
inserting ``The Secretary of Energy'';
and
(III) by striking ``subsection (e)''
and inserting ``section 4452''.
(24) [NOTE: 50 USC 2638.] Limitation on use of funds for
decommissioning f-canyon facility.--Subsection (b) of section
3137 of the Floyd D. Spence National Defense Authorization Act
for Fiscal Year 2001 (as enacted into law by Public Law 106-398;
114 Stat. 1654A-460), is--
(A) transferred to title XLIV of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;

[[Page 1771]]
117 STAT. 1771

(B) inserted after section 4453D, as added by
paragraph (23)(E); and
(C) amended--
(i) by inserting before the text the following
new section heading:

``SEC. 4454. LIMITATION ON USE OF FUNDS FOR DECOMMISSIONING F-CANYON
FACILITY.'';

(ii) by striking ``(b) Limitation on Use of
Funds for Decommissioning F-Canyon Facility.--'';
(iii) by striking ``this or any other Act''
and inserting ``the Floyd D. Spence National
Defense Authorization Act for Fiscal Year 2001 (as
enacted into law by Public Law 106-398) or any
other Act''; and
(iv) by striking ``the Secretary'' in the
matter preceding paragraph (1) and inserting ``the
Secretary of Energy''.

(h) Safeguards and Security Matters.--
(1) Headings.--Division D of the Bob Stump National Defense
Authorization Act for Fiscal Year 2003, as amended by this
section, is further amended by adding at the end the following
new headings:

``TITLE XLV--SAFEGUARDS AND SECURITY MATTERS

``Subtitle A--Safeguards and Security''.

(2) [NOTE: 42 USC 2153 note, 2164 note; 50 USC
2651.] Prohibition on international inspections of facilities
without protection of restricted data.--Section 3154 of the
National Defense Authorization Act for Fiscal Year 1996 (Public
Law 104-106; 110 Stat. 624), is--
(A) transferred to title XLV of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as added by paragraph (1);
(B) redesignated as section 4501;
(C) inserted after the heading for subtitle A of
such title, as so added; and
(D) [NOTE: 50 USC 2651.] amended--
(i) by striking ``(1) The'' and inserting
``The''; and
(ii) by striking ``(2) For purposes of
paragraph (1),'' and inserting ``(c) Restricted
Data Defined.--In this section,''.
(3) [NOTE: 42 USC 7383c, 50 USC 2652.] Restrictions on
access to laboratories by foreign visitors from sensitive
countries.--Section 3146 of the National Defense Authorization
Act for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 935),
is--
(A) transferred to title XLV of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4502;
(C) inserted after section 4501, as added by
paragraph (2); and
(D) [NOTE: 50 USC 2652.] amended--
(i) in subsection (b)(2)--

[[Page 1772]]
117 STAT. 1772

(I) in the matter preceding
subparagraph (A), by striking ``30 days
after the date of the enactment of this
Act'' and inserting ``on November 4,
1999,''; and
(II) in subparagraph (A), by
striking ``The date that is 90 days
after the date of the enactment of this
Act'' and inserting ``January 3, 2000'';
(ii) in subsection (d)(1), by striking ``the
date of the enactment of this Act,'' and inserting
``October 5, 1999,''; and
(iii) [NOTE: Definitions.] in subsection
(g), by adding at the end the following new
paragraphs:
``(3) The term `national laboratory' means any of the
following:
``(A) Lawrence Livermore National Laboratory,
Livermore, California.
``(B) Los Alamos National Laboratory, Los Alamos,
New Mexico.
``(C) Sandia National Laboratories, Albuquerque, New
Mexico and Livermore, California.
``(4) The term `Restricted Data' has the meaning given that
term in section 11 y. of the Atomic Energy Act of 1954 (42
U.S.C. 2014(y)).''.
(4) Background [NOTE: 42 USC 7383a, 50 USC
2653.] investigations on certain personnel.--Section 3143 of
the National Defense Authorization Act for Fiscal Year 2000
(Public Law 106-65; 113 Stat. 934), is--
(A) transferred to title XLV of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4503;
(C) inserted after section 4502, as added by
paragraph (3); and
(D) [NOTE: 50 USC 2653.] amended--
(i) in subsection (b), by striking ``the date
of the enactment of this Act'' and inserting
``October 5, 1999,''; and
(ii) by adding at the end the following new
subsection:

``(c) Definitions.--In this section, the terms `national laboratory'
and `Restricted Data' have the meanings given such terms in section
4502(g).''.
(5) Counterintelligence [NOTE: 42 USC 7383h, 7383h-1; 50
USC 2654.] polygraph program.--
(A) Department of energy counterintelligence
polygraph program.--Section 3152 of the National Defense
Authorization Act for Fiscal Year 2002 (Public Law 107-
107; 115 Stat. 1376), is--
(i) transferred to title XLV of the Bob Stump
National Defense Authorization Act for Fiscal Year
2003, as amended by this subsection;
(ii) redesignated as section 4504;
(iii) inserted after section 4503, as added by
paragraph (4); and
(iv) [NOTE: 50 USC 2654, 2655.] amended in
subsection (c) by striking ``section 3154 of the
Department of Energy Facilities Safeguards,
Security, and Counterintelligence Enhancement Act
of 1999 (subtitle D of title XXXI of Public

[[Page 1773]]
117 STAT. 1773

Law 106-65; 42 U.S.C. 7383h)'' and inserting
``section 4504A''.
(B) Counterintelligence [NOTE: 42 USC 7383h, 50 USC
2655.] polygraph program.--Section 3154 of the National
Defense Authorization Act for Fiscal Year 2000 (Public
Law 106-65; 113 Stat. 941), as amended by section 3135
of the Floyd D. Spence National Defense Authorization
Act for Fiscal Year 2001 (as enacted into law by Public
Law 106-398; 114 Stat. 1654A-456), is--
(i) transferred to title XLV of the Bob Stump
National Defense Authorization Act for Fiscal Year
2003, as amended by this subsection;
(ii) redesignated as section 4504A;
(iii) inserted after section 4504, as added by
subparagraph (A); and
(iv) [NOTE: 50 USC 2655.] amended in
subsection (h) by striking ``180 days after the
date of the enactment of this Act,'' and inserting
``April 5, 2000,''.
(6) Notice [NOTE: 42 USC 7383d, 50 USC 2656.] of security
and counterintelligence failures.--Section 3150 of the National
Defense Authorization Act for Fiscal Year 2000 (Public Law 106-
65; 113 Stat. 939), is--
(A) transferred to title XLV of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4505; and
(C) inserted after section 4504A, as added by
paragraph (5)(B).
(7) Annual report on [NOTE: 42 USC 7274m note, 50 USC
2657.] security functions at nuclear weapons facilities.--
Section 3162 of the National Defense Authorization Act for
Fiscal Year 1998 (Public Law 105-85; 111 Stat. 2049), is--
(A) transferred to title XLV of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4506;
(C) inserted after section 4505, as added by
paragraph (6); and
(D) amended in subsection (b) [NOTE: 50 USC
2657.] by inserting ``of the National Defense
Authorization Act for Fiscal Year 1998 (Public Law 105-
85; 111 Stat. 2048; 42 U.S.C. 7251 note)'' after
``section 3161''.
(8) Report [NOTE: 42 USC 7383f, 50 USC 2658.] on
counterintelligence and security practices at laboratories.--
Section 3152 of the National Defense Authorization Act for
Fiscal Year 2000 (Public Law 106-65; 113 Stat. 940), is--
(A) transferred to title XLV of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4507;
(C) inserted after section 4506, as added by
paragraph (7); and
(D) amended by adding at [NOTE: 50 USC 2658.] the
end the following new subsection:

``(c) National Laboratory Defined.--In this section, the term
`national laboratory' has the meaning given that term in section
4502(g)(3).''.

[[Page 1774]]
117 STAT. 1774

(9) Report [NOTE: 42 USC 7383g, 50 USC 2659.] on security
vulnerabilities of national laboratory computers.--Section 3153
of the National Defense Authorization Act for Fiscal Year 2000
(Public Law 106-65; 113 Stat. 940), is--
(A) transferred to title XLV of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4508;
(C) inserted after section 4507, as added by
paragraph (8); and
(D) amended by adding at [NOTE: 50 USC 2659.] the
end the following new subsection:

``(f) National Laboratory Defined.--In this section, the term
`national laboratory' has the meaning given that term in section
4502(g)(3).''.
(10) Subtitle heading on classified information.--Title XLV
of the Bob Stump National Defense Authorization Act for Fiscal
Year 2003, as amended by this subsection, is further amended by
adding at the end the following new subtitle heading:

``Subtitle B--Classified Information''.

(11) Review [NOTE: 42 USC 2162 note, 50 USC 2671.] of
certain documents before declassification and release.--Section
3155 of the National Defense Authorization Act for Fiscal Year
1996 (Public Law 104-106; 110 Stat. 625), is--
(A) transferred to title XLV of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4521; and
(C) inserted after the heading for subtitle B of
such title, as added by paragraph (10).
(12) Protection [NOTE: 50 USC 435 note, 2672.] against
inadvertent release of restricted data and formerly restricted
data.--Section 3161 of the Strom Thurmond National Defense
Authorization Act for Fiscal Year 1999 (Public Law 105-261; 112
Stat. 2259), as amended by section 1067(3) of the National
Defense Authorization Act for Fiscal Year 2000 (Public Law 106-
65; 113 Stat. 774) and section 3193 of the Floyd D. Spence
National Defense Authorization Act for Fiscal Year 2001 (as
enacted into law by Public Law 106-398; 114 Stat. 1654A-480),
is--
(A) transferred to title XLV of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4522;
(C) inserted after section 4521, as added by
paragraph (11); and
(D) amended-- [NOTE: 50 USC 2672.]
(i) in subsection (c)(1), by striking ``the
date of the enactment of this Act'' and inserting
``October 17, 1998,'';
(ii) in subsection (f)(1), by striking ``the
date of the enactment of this Act'' and inserting
``October 17, 1998''; and

[[Page 1775]]
117 STAT. 1775

(iii) in subsection (f)(2), by striking ``The
Secretary'' and inserting ``Commencing with
inadvertent releases discovered on or after
October 30, 2000, the Secretary''.
(13) Supplement [NOTE: 50 USC 435 note, 2673.] to plan for
declassification of restricted data and formerly restricted
data.--Section 3149 of the National Defense Authorization Act
for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 938), is--
(A) transferred to title XLV of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4523;
(C) inserted after section 4522, as added by
paragraph (12); and
(D) amended-- [NOTE: 50 USC 2673.]
(i) in subsection (a), by striking
``subsection (a) of section 3161 of the Strom
Thurmond National Defense Authorization Act for
Fiscal Year 1999 (Public Law 105-261; 112 Stat.
2260; 50 U.S.C. 435 note)'' and inserting
``subsection (a) of section 4522'';
(ii) in subsection (b)--
(I) by striking ``section 3161(b)(1)
of that Act'' and inserting ``subsection
(b)(1) of section 4522''; and
(II) by striking ``the date of the
enactment of that Act'' and inserting
``October 17, 1998,'';
(iii) in subsection (c)--
(I) by striking ``section 3161(c) of
that Act'' and inserting ``subsection
(c) of section 4522''; and
(II) by striking ``section 3161(a)
of that Act'' and inserting ``subsection
(a) of such section''; and
(iv) in subsection (d), by striking ``section
3161(d) of that Act'' and inserting ``subsection
(d) of section 4522''.
(14) Protection [NOTE: 42 USC 7383b, 50 USC 2674.] of
classified information during laboratory-to-laboratory
exchanges.--Section 3145 of the National Defense Authorization
Act for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 935),
is--
(A) transferred to title XLV of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4524; and
(C) inserted after section 4523, as added by
paragraph (13).
(15) Identification in [NOTE: 50 USC 435 note,
2675.] budgets of amount for declassification activities.--
Section 3173 of the National Defense Authorization Act for
Fiscal Year 2000 (Public Law 106-65; 113 Stat. 949), is--
(A) transferred to title XLV of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4525;
(C) inserted after section 4524, as added by
paragraph (14); and
(D) [NOTE: 50 USC 2675.] amended in subsection (b)
by striking ``the date of the enactment of this Act''
and inserting ``October 5, 1999,''.

[[Page 1776]]
117 STAT. 1776

(16) Subtitle heading on emergency response.--Title XLV of
the Bob Stump National Defense Authorization Act for Fiscal Year
2003, as amended by this subsection, is further amended by
adding at the end the following new subtitle heading:

``Subtitle C--Emergency Response''.

(17) Responsibility [NOTE: 50 USC 2691.] for defense
programs emergency response program.--Section 3158 of the
National Defense Authorization Act for Fiscal Year 1996 (Public
Law 104-106; 110 Stat. 626), is--
(A) transferred to title XLV of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4541; and
(C) inserted after the heading for subtitle C of
such title, as added by paragraph (16).

(i) Personnel Matters.--
(1) Headings.--Division D of the Bob Stump National Defense
Authorization Act for Fiscal Year 2003, as amended by this
section, is further amended by adding at the end the following
new headings:

``TITLE XLVI--PERSONNEL MATTERS

``Subtitle A--Personnel Management''.

(2) Authority [NOTE: 42 USC 7231 note, 50 USC 2701.] for
appointment of certain scientific, engineering, and technical
personnel.--Section 3161 of the National Defense Authorization
Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 3095),
as amended by section 3139 of the National Defense Authorization
Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 2040),
sections 3152 and 3155 of the Strom Thurmond National Defense
Authorization Act for Fiscal Year 1999 (Public Law 105-261; 112
Stat. 2253, 2257), and section 3191 of the Floyd D. Spence
National Defense Authorization Act for Fiscal Year 2001 (as
enacted into law by Public Law 106-398; 114 Stat. 1654A-480),
is--
(A) transferred to title XLVI of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as added by paragraph (1);
(B) redesignated as section 4601; and
(C) inserted after the heading for subtitle A of
such title, as so added.
(3) [NOTE: 42 USC 7239, 50 USC 2702.] Whistleblower
protection program.--Section 3164 of the National Defense
Authorization Act for Fiscal Year 2000 (Public Law 106-65; 113
Stat. 946), is--
(A) transferred to title XLVI of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4602;
(C) inserted after section 4601, as added by
paragraph (2); and

[[Page 1777]]
117 STAT. 1777

(D) amended in subsection (n) by striking ``60 days
after the date of the enactment of this Act,'' and
inserting ``December 5, 1999,''.
(4) [NOTE: 42 USC 7274n note, 50 USC 2703.] Employee
incentives for workers at closure project facilities.--Section
3136 of the Floyd D. Spence National Defense Authorization Act
for Fiscal Year 2001 (as enacted into law by Public Law 106-398;
114 Stat. 1654A-458), is--
(A) transferred to title XLVI of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4603;
(C) inserted after section 4602, as added by
paragraph (3); and
(D) amended-- [NOTE: 50 USC 2703.]
(i) in subsections (c) and (i)(1)(A), by
striking ``section 3143 of the National Defense
Authorization Act for Fiscal Year 1997 (42 U.S.C.
7274n)'' and inserting ``section 4421''; and
(ii) in subsection (g), by striking ``section
3143(h) of the National Defense Authorization Act
for Fiscal Year 1997'' and inserting ``section
4421(h)''.
(5) Defense [NOTE: 42 USC 7274h, 50 USC 2704.] nuclear
facility workforce restructuring plan.--Section 3161 of the
National Defense Authorization Act for Fiscal Year 1993 (Public
Law 102-484; 106 Stat. 2644), as amended by section 1070(c)(2)
of the National Defense Authorization Act for Fiscal Year 1995
(Public Law 103-337; 108 Stat. 2857), Public Law 105-277 (112
Stat. 2681-419, 2681-430), and section 1048(h)(1) of the
National Defense Authorization Act for Fiscal Year 2002 (Public
Law 107-107; 115 Stat. 1229), is--
(A) transferred to title XLVI of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4604;
(C) inserted after section 4603, as added by
paragraph (4); and
(D) amended-- [NOTE: 50 USC 2704.]
(i) in subsection (a), by striking
``(hereinafter in this subtitle referred to as the
`Secretary')''; and
(ii) by adding at the end the following new
subsection:

``(g) Department of Energy Defense Nuclear Facility Defined.--In
this section, the term `Department of Energy defense nuclear facility'
means--
``(1) a production facility or utilization facility (as
those terms are defined in section 11 of the Atomic Energy Act
of 1954 (42 U.S.C. 2014)) that is under the control or
jurisdiction of the Secretary and that is operated for national
security purposes (including the tritium loading facility at
Savannah River, South Carolina, the 236 H facility at Savannah
River, South Carolina; and the Mound Laboratory, Ohio), but the
term does not include any facility that does not conduct atomic
energy defense activities and does not include any facility or
activity covered by Executive Order Number 12344, dated February
1, 1982, pertaining to the naval nuclear propulsion program;

[[Page 1778]]
117 STAT. 1778

``(2) a nuclear waste storage or disposal facility that is
under the control or jurisdiction of the Secretary;
``(3) a testing and assembly facility that is under the
control or jurisdiction of the Secretary and that is operated
for national security purposes (including the Nevada Test Site,
Nevada; the Pinnellas Plant, Florida; and the Pantex facility,
Texas);
``(4) an atomic weapons research facility that is under the
control or jurisdiction of the Secretary (including Lawrence
Livermore, Los Alamos, and Sandia National Laboratories); or
``(5) any facility described in paragraphs (1) through (4)
that--
``(A) is no longer in operation;
``(B) was under the control or jurisdiction of the
Department of Defense, the Atomic Energy Commission, or
the Energy Research and Development Administration; and
``(C) was operated for national security
purposes.''.
(6) Authority [NOTE: 42 USC 2121 note, 50 USC 2705.] to
provide certificate of commendation to employees.--Section 3195
of the Floyd D. Spence National Defense Authorization Act for
Fiscal Year 2001 (as enacted into law by Public Law 106-398; 114
Stat. 1654A-481), is--
(A) transferred to title XLVI of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4605; and
(C) inserted after section 4604, as added by
paragraph (5).
(7) Subtitle heading on education and training.--Title XLVI
of the Bob Stump National Defense Authorization Act for Fiscal
Year 2003, as amended by this subsection, is further amended by
adding at the end the following new subtitle heading:

``Subtitle B--Education and Training''.

(8) Executive management [NOTE: 42 USC 7236, 50 USC
2721.] training.--Section 3142 of the National Defense
Authorization Act for Fiscal Years 1990 and 1991 (Public Law
101-189; 103 Stat. 1680), is--
(A) transferred to title XLVI of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4621;
(C) inserted after the heading for subtitle B of
such title, as added by paragraph (7); and
(D) amended in the [NOTE: 50 USC 2721.] section
heading by adding a period at the end.
(9) Stockpile [NOTE: 50 USC 2722.] stewardship recruitment
and training program.--Section 3131 of the National Defense
Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108
Stat. 3085), is--
(A) transferred to title XLVI of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4622;
(C) inserted after section 4621, as added by
paragraph (8); and
(D) amended--

[[Page 1779]]
117 STAT. 1779

(i) in subsection (a)(1), by striking
``section 3138 of the National Defense
Authorization Act for Fiscal Year 1994 (Public Law
103-160; 107 Stat. 1946; 42 U.S.C. 2121 note)''
and inserting ``section 4201''; and
(ii) in subsection (b)(2), by inserting ``of
the National Defense Authorization Act for Fiscal
Year 1995 (Public Law 103-337)'' after ``section
3101(a)(1)''.
(10) Fellowship [NOTE: 42 USC 2121 note, 50 USC
2723.] program for development of skills critical to nuclear
weapons complex.--Section 3140 of the National Defense
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110
Stat. 621), as amended by section 3162 of the National Defense
Authorization Act for Fiscal Year 2000 (Public Law 106-65; 113
Stat. 943), is--
(A) transferred to title XLVI of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4623; and
(C) inserted after section 4622, as added by
paragraph (9).
(11) Subtitle heading on worker safety.--Title XLVI of the
Bob Stump National Defense Authorization Act for Fiscal Year
2003, as amended by this subsection, is further amended by
adding at the end the following new subtitle heading:

``Subtitle C--Worker Safety''.

(12) Worker protection [NOTE: 42 USC 7274d, 50 USC
2731.] at nuclear weapons facilities.--Section 3131 of the
National Defense Authorization Act for Fiscal Years 1992 and
1993 (Public Law 102-190; 105 Stat. 1571), is--
(A) transferred to title XLVI of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4641;
(C) inserted after the heading for subtitle C of
such title, as added by paragraph (11); and
(D) amended in subsection [NOTE: 50 USC 2731.] (e)
by inserting ``of the National Defense Authorization Act
for Fiscal Years 1992 and 1993 (Public Law 102-190)''
after ``section 3101(9)(A)''.
(13) Safety oversight and enforcement at defense nuclear
facilities.--Section [NOTE: 42 USC 7274m, 50 USC 2732.] 3163
of the National Defense Authorization Act for Fiscal Year 1995
(Public Law 103-337; 108 Stat. 3097), is--
(A) transferred to title XLVI of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4642;
(C) inserted after section 4641, as added by
paragraph (12); and
(D) amended in subsection [NOTE: 50 USC 2732.] (b)
by striking ``90 days after the date of the enactment of
this Act,'' and inserting ``January 5, 1995,''.
(14) Program [NOTE: 42 USC 7274i, 50 USC 2733.] to monitor
workers at defense nuclear facilities exposed to hazardous or
radioactive substances.--Section 3162 of the National Defense
Authorization Act for Fiscal Year 1993 (Public Law 102-484; 106
Stat. 2646), is--

[[Page 1780]]
117 STAT. 1780

(A) transferred to title XLVI of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4643;
(C) inserted after section 4642, as added by
paragraph (13); and
(D) amended-- [NOTE: 50 USC 2733.]
(i) in subsection (b)(6), by striking ``1 year
after the date of the enactment of this Act'' and
inserting ``October 23, 1993'';
(ii) in subsection (c), by striking ``180 days
after the date of the enactment of this Act,'' and
inserting ``April 23, 1993,''; and
(iii) by adding at the end the following new
subsection:

``(d) Definitions.--In this section:
``(1) The term `Department of Energy defense nuclear
facility' has the meaning given that term in section 4604(g).
``(2) The term `Department of Energy employee' means any
employee of the Department of Energy employed at a Department of
Energy defense nuclear facility, including any employee of a
contractor or subcontractor of the Department of Energy employed
at such a facility.''.
(15) Programs [NOTE: 50 USC 2734.] for persons who may
have been exposed to radiation released from hanford
reservation.--Section 3138 of the National Defense Authorization
Act for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1834),
as amended by section 3138 of the National Defense Authorization
Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 3087),
is--
(A) transferred to title XLVI of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4644;
(C) inserted after section 4643, as added by
paragraph (14); and
(D) amended--
(i) in the section heading, by adding a period
at the end;
(ii) in subsection (a), by striking ``this
title'' and inserting ``title XXXI of the National
Defense Authorization Act for Fiscal Year 1991
(Public Law 101-510)''; and
(iii) in subsection (c)--
(I) in paragraph (2), by striking
``six months after the date of the
enactment of this Act,'' and inserting
``May 5, 1991,''; and
(II) in paragraph (3), by striking
``18 months after the date of the
enactment of this Act,'' and inserting
``May 5, 1992,''.

(j) Budget and Financial Management Matters.--
(1) Headings.--Division D of the Bob Stump National Defense
Authorization Act for Fiscal Year 2003, as amended by this
section, is further amended by adding at the end the following
new headings:

[[Page 1781]]
117 STAT. 1781

``TITLE XLVII--BUDGET AND FINANCIAL MANAGEMENT MATTERS

``Subtitle A--Recurring National Security Authorization Provisions''.

(2) [NOTE: 42 USC 7386-7386k, 50 USC 2741-2752.] Recurring
national security authorization provisions.--Sections 3620
through 3631 of the Bob Stump National Defense Authorization Act
for Fiscal Year 2003 (Public Law 107-314; 116 Stat. 2756) are--
(A) transferred to title XLVII of such Act, as added
by paragraph (1);
(B) redesignated as sections 4701 through 4712,
respectively;
(C) inserted after the heading for subtitle A of
such title, as so added; and
(D) amended--
(i) in [NOTE: 50 USC 2742.] section 4702, as
so redesignated, by striking ``sections 3629 and
3630'' and inserting ``sections 4710 and 4711'';
(ii) in [NOTE: 50 USC 2746.] section
4706(a)(3)(B), as so redesignated, by striking
``section 3626'' and inserting ``section 4707'';
(iii) in [NOTE: 50 USC 2747.] section
4707(c), as so redesignated, by striking ``section
3625(b)(2)'' and inserting ``section 4706(b)(2)'';
(iv) in [NOTE: 50 USC 2750.] section
4710(c), as so redesignated, by striking ``section
3621'' and inserting ``section 4702'';
(v) in section [NOTE: 50 USC 2751.] 4711(c),
as so redesignated, by striking ``section 3621''
and inserting ``section 4702''; and
(vi) in [NOTE: 50 USC 2752.] section 4712,
as so redesignated, by striking ``section 3621''
and inserting ``section 4702''.
(3) Subtitle heading on penalties.--Title XLVII of the Bob
Stump National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection, is further amended by adding at
the end the following new subtitle heading:

``Subtitle B--Penalties''.

(4) Restriction [NOTE: 42 USC 7273a, 50 USC 2761.] on use
of funds to pay penalties under environmental laws.--Section
3132 of the National Defense Authorization Act for Fiscal Year
1987 (Public Law 99-661; 100 Stat. 4063), is--
(A) transferred to title XLVII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4721;
(C) inserted after the heading for subtitle B of
such title, as added by paragraph (3); and
(D) amended in the [NOTE: 50 USC 2761.] section
heading by adding a period at the end.
(5) Restriction [NOTE: 42 USC 7273, 50 USC 2762.] on use
of funds to pay penalties under clean air act.--Section 211 of
the Department of Energy National Security and Military
Applications of Nuclear Energy

[[Page 1782]]
117 STAT. 1782

Authorization Act of 1981 (Public Law 96-540; 94 Stat. 3203),
is--
(A) transferred to title XLVII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) inserted after section 4721, as added by
paragraph (4); and
(C) amended--
(i) by striking the section heading and
inserting the following new section heading:

``SEC. 4722. RESTRICTION ON USE OF FUNDS TO PAY PENALTIES UNDER CLEAN
AIR ACT.'';

(ii) by striking ``Sec. 211.''; and
(iii) by [NOTE: 50 USC 2762.] striking
``this or any other Act'' and inserting ``the
Department of Energy National Security and
Military Applications of Nuclear Energy
Authorization Act of 1981 (Public Law 96-540) or
any other Act''.
(6) Subtitle heading on other matters.--Title XLVII of the
Bob Stump National Defense Authorization Act for Fiscal Year
2003, as amended by this subsection, is further amended by
adding at the end the following new subtitle heading:

``Subtitle C--Other Matters''.

(7) Single [NOTE: 42 USC 7271, 50 USC 2771.] request for
authorization of appropriations for common defense and security
programs.--Section 208 of the Department of Energy National
Security and Military Applications of Nuclear Energy
Authorization Act of 1979 (Public Law 95-509; 92 Stat. 1779),
is--
(A) transferred to title XLVII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) inserted after the heading for subtitle C of
such title, as added by paragraph (6); and
(C) amended--
(i) by striking the section heading and
inserting the following new section heading:

``SEC. 4731. SINGLE REQUEST FOR AUTHORIZATION OF APPROPRIATIONS FOR
COMMON DEFENSE AND SECURITY PROGRAMS.'';

and
(ii) by striking ``Sec. 208.''.

(k) Administrative Matters.--
(1) Headings.--Division D of the Bob Stump National Defense
Authorization Act for Fiscal Year 2003, as amended by this
section, is further amended by adding at the end the following
new headings:

[[Page 1783]]
117 STAT. 1783

``TITLE XLVIII--ADMINISTRATIVE MATTERS

``Subtitle A--Contracts''.

(2) [NOTE: 42 USC 7256a, 50 USC 2781.] Costs not allowed
under certain contracts.--Section 1534 of the Department of
Defense Authorization Act, 1986 (Public Law 99-145; 99 Stat.
774), as amended by section 3131 of the National Defense
Authorization Act for Fiscal Years 1988 and 1989 (Public Law
100-180; 101 Stat. 1238), is--
(A) transferred to title XLVIII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as added by paragraph (1);
(B) redesignated as section 4801;
(C) inserted after the heading for subtitle A of
such title, as so added; and
(D) amended-- [NOTE: 50 USC 2781.]
(i) in the section heading, by adding a period
at the end; and
(ii) in subsection (b)(1), by striking ``the
date of the enactment of this Act,'' and inserting
``November 8, 1985,''.
(3) Prohibition [NOTE: 42 USC 7256b, 50 USC 2782.] on
bonuses to contractors operating defense nuclear facilities.--
Section 3151 of the National Defense Authorization Act for
Fiscal Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1682),
is--
(A) transferred to title XLVIII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4802;
(C) inserted after section 4801, as added by
paragraph (2); and
(D) amended-- [NOTE: 50 USC 2782.]
(i) in the section heading, by adding a period
at the end;
(ii) in subsection (a), by striking ``the date
of the enactment of this Act'' and inserting
``November 29, 1989'';
(iii) in subsection (b), by striking ``6
months after the date of the enactment of this
Act,'' and inserting ``May 29, 1990,''; and
(iv) in subsection (d), by striking ``90 days
after the date of the enactment of this Act'' and
inserting ``March 1, 1990''.
(4) Contractor [NOTE: 42 USC 2212, 50 USC 2783.] liability
for injury or loss of property arising from atomic weapons
testing programs.--Section 3141 of the National Defense
Authorization Act for Fiscal Year 1991 (Public Law 101-510; 104
Stat. 1837), is--
(A) transferred to title XLVIII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4803;
(C) inserted after section 4802, as added by
paragraph (3); and
(D) amended-- [NOTE: 50 USC 2783.]

[[Page 1783]]
117 STAT. 1784

(i) in the section heading, by adding a period
at the end; and
(ii) in subsection (d), by striking ``the date
of the enactment of this Act'' each place it
appears and inserting ``November 5, 1990,''.
(5) Subtitle heading on research and development.--Title
XLVIII of the Bob Stump National Defense Authorization Act for
Fiscal Year 2003, as amended by this subsection, is further
amended by adding at the end the following new subtitle heading:

``Subtitle B--Research and Development''.

(6) [NOTE: 42 USC 7257a, 50 USC 2791.] Laboratory-directed
research and development.--Section 3132 of the National Defense
Authorization Act for Fiscal Year 1991 (Public Law 101-510; 104
Stat. 1832), is--
(A) transferred to title XLVIII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4811;
(C) inserted after the heading for subtitle B of
such title, as added by paragraph (5); and
(D) [NOTE: 50 USC 2791.] amended in the section
heading by adding a period at the end.
(7) Limitations [NOTE: 42 USC 7257b, 7257c; 50 USC
2792.] on use of funds for laboratory directed research and
development.--
(A) Limitations on use of funds for laboratory
directed research and development.--Section 3137 of the
National Defense Authorization Act for Fiscal Year 1998
(Public Law 105-85; 111 Stat. 2038), is--
(i) transferred to title XLVIII of the Bob
Stump National Defense Authorization Act for
Fiscal Year 2003, as amended by this subsection;
(ii) redesignated as section 4812;
(iii) inserted after section 4811, as added by
paragraph (6);
(iv) amended [NOTE: 50 USC 2792.] in
subsection (b) by striking ``section 3136(b) of
the National Defense Authorization Act for Fiscal
Year 1997 (Public Law 104-201; 110 Stat. 2831; 42
U.S.C. 7257b)'' and inserting ``section
4812A(b)'';
(v) amended in subsection (d)--
(I) by striking ``section
3136(b)(1)'' and inserting ``section
4812A(b)(1)''; and
(II) by striking ``section 3132(c)
of the National Defense Authorization
Act for Fiscal Year 1991 (42 U.S.C.
7257a(c))'' and inserting ``section
4811(c)''; and
(vi) amended in subsection (e) by striking
``section 3132(d) of the National Defense
Authorization Act for Fiscal Year 1991 (42 U.S.C.
7257a(d))'' and inserting ``section 4811(d)''.
(B) Limitation [NOTE: 42 USC 7257b, 50 USC
2793.] on use of funds for certain research and
development purposes.--Section 3136 of the National
Defense Authorization Act for Fiscal Year 1997 (Public
Law 104-201; 110 Stat. 2830), as amended by section 3137
of the National Defense Authorization Act

[[Page 1785]]
117 STAT. 1785

for Fiscal Year 1998 (Public Law 105-85; 111 Stat.
2038), is--
(i) transferred to title XLVIII of the Bob
Stump National Defense Authorization Act for
Fiscal Year 2003, as amended by this subsection;
(ii) redesignated as section 4812A;
(iii) inserted after section 4812, as added by
subparagraph (A); and
(iv) [NOTE: 50 USC 2793.] amended in
subsection (a) by inserting ``of the National
Defense Authorization Act for Fiscal Year 1997
(Public Law 104-201)'' after ``section 3101''.
(8) Critical [NOTE: 42 USC 2123, 50 USC 2794.] technology
partnerships.--Section 3136 of the National Defense
Authorization Act for Fiscal Years 1992 and 1993 (Public Law
102-190; 105 Stat. 1577), as amended by section 203(b)(3) of
Public Law 103-35 (107 Stat. 102), is--
(A) transferred to title XLVIII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4813; and
(C) inserted after section 4812A, as added by
paragraph (7)(B).
(9) [NOTE: 50 USC 2795, 7381 note.] University-based
research collaboration program.--Section 3155 of the National
Defense Authorization Act for Fiscal Year 1998 (Public Law 105-
85; 111 Stat. 2044), is--
(A) transferred to title XLVIII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4814;
(C) inserted after section 4813, as added by
paragraph (8); and
(D) [NOTE: 50 USC 2795.] amended in subsection (c)
by striking ``this title'' and inserting ``title XXXI of
the National Defense Authorization Act for Fiscal Year
1998 (Public Law 105-85)''.
(10) Subtitle heading on facilities management.--Title
XLVIII of the Bob Stump National Defense Authorization Act for
Fiscal Year 2003, as amended by this subsection, is further
amended by adding at the end the following new subtitle heading:

``Subtitle C--Facilities Management''.

(11) [NOTE: 42 USC 7274q, 50 USC 2811.] Transfers of real
property at certain facilities.--Section 3158 of the National
Defense Authorization Act for Fiscal Year 1998 (Public Law 105-
85; 111 Stat. 2046), is--
(A) transferred to title XLVIII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4831; and
(C) inserted after the heading for subtitle C of
such title, as added by paragraph (10).
(12) [NOTE: 42 USC 7274r note, 50 USC 2812.] Engineering
and manufacturing research, development, and demonstration at
certain nuclear weapons production plants.--Section 3156 of the
Floyd D.

[[Page 1786]]
117 STAT. 1786

Spence National Defense Authorization Act for Fiscal Year 2001
(as enacted into law by Public Law 106-398; 114 Stat. 1654A-
467), is--
(A) transferred to title XLVIII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4832; and
(C) inserted after section 4831, as added by
paragraph (11).
(13) [NOTE: 42 USC 7256 note, 50 USC 2813.] Pilot program
on use of proceeds of disposal or utilization of certain
assets.--Section 3138 of the National Defense Authorization Act
for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 2039), is--
(A) transferred to title XLVIII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4833;
(C) inserted after section 4832, as added by
paragraph (12); and
(D) [NOTE: 50 USC 2813.] amended in subsection (d)
by striking ``sections 202 and 203(j) of the Federal
Property and Administrative Services Act of 1949 (40
U.S.C. 483 and 484(j))'' and inserting ``subchapter II
of chapter 5 and section 549 of title 40, United States
Code,''.
(14) Subtitle heading on other matters.--Title XLVIII of the
Bob Stump National Defense Authorization Act for Fiscal Year
2003, as amended by this subsection, is further amended by
adding at the end the following new subtitle heading:

``Subtitle D--Other Matters''.

(15) Semiannual [NOTE: 42 USC 7274h note, 50 USC
2821.] reports on local impact assistance.--Subsection (f) of
section 3153 of the National Defense Authorization Act for
Fiscal Year 1998 (Public Law 105-85; 111 Stat. 2044), is--
(A) transferred to title XLVIII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) inserted after the heading for subtitle D of
such title, as added by paragraph (14); and
(C) amended--
(i) by inserting before the text the following
new section heading:

``SEC. 4851. SEMIANNUAL REPORTS ON LOCAL IMPACT ASSISTANCE.'';

(ii) by striking ``(f) Semiannual Reports to
Congress of Local Impact Assistance.--''; and
(iii) [NOTE: 50 USC 2821.] by striking
``section 3161(c)(6) of the National Defense
Authorization Act of 1993 (42 U.S.C.
7274h(c)(6))'' and inserting ``section
4604(c)(6)''.
(16) Payment [NOTE: 50 USC 2822.] of costs of operation
and maintenance of infrastructure at nevada test site.--Section
3144 of the National Defense Authorization Act for Fiscal Year
1997 (Public Law 104-201; 110 Stat. 2838), is--
(A) transferred to title XLVIII of such Act, as
amended by this subsection;
(B) redesignated as section 4852; and

[[Page 1787]]
117 STAT. 1787

(C) inserted after section 4851, as added by
paragraph (15).

(m) Conforming Amendments.--(1) Title XXXVI of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003 (Public Law 107-
314; 116 Stat. 1756) is repealed.
(2) [NOTE: 42 USC 7274j.] Subtitle E of title XXXI of the National
Defense Authorization Act for Fiscal Year 1993 (Public Law 102-484; 42
U.S.C. 7274h et seq.) is repealed.

(3) Section 8905a(d)(5)(A) of title 5, United States Code, is
amended by striking ``section 3143 of the National Defense Authorization
Act for Fiscal Year 1997 (42 U.S.C. 7274n)'' and inserting ``section
4421 of the Atomic Energy Defense Act''.

TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

SEC. 3201. AUTHORIZATION.

There are authorized to be appropriated for fiscal year 2004,
$19,559,000 for the operation of the Defense Nuclear Facilities Safety
Board under chapter 21 of the Atomic Energy Act of 1954 (42 U.S.C. 2286
et seq.).

TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Authorized uses of National Defense Stockpile funds.
Sec. 3302. Revisions to required receipt objectives for previously
authorized disposals from National Defense Stockpile.

SEC. 3301. AUTHORIZED USES OF NATIONAL DEFENSE STOCKPILE FUNDS.

(a) Obligation of Stockpile Funds.--During fiscal year 2004, the
National Defense Stockpile Manager may obligate up to $69,701,000 of the
funds in the National Defense Stockpile Transaction Fund established
under subsection (a) of section 9 of the Strategic and Critical
Materials Stock Piling Act (50 U.S.C. 98h) for the authorized uses of
such funds under subsection (b)(2) of such section, including the
disposal of hazardous materials that are environmentally sensitive.
(b) Additional Obligations.--The National Defense Stockpile Manager
may obligate amounts in excess of the amount specified in subsection (a)
if the National Defense Stockpile Manager notifies Congress that
extraordinary or emergency conditions necessitate the additional
obligations. The National Defense Stockpile Manager may make the
additional obligations described in the notification after the end of
the 45-day period beginning on the date on which Congress receives the
notification.
(c) Limitations.--The authorities provided by this section shall be
subject to such limitations as may be provided in appropriations Acts.

[[Page 1788]]
117 STAT. 1788

SEC. 3302. REVISIONS TO REQUIRED RECEIPT OBJECTIVES FOR PREVIOUSLY
AUTHORIZED DISPOSALS FROM NATIONAL DEFENSE STOCKPILE.

Section 3402 of the National Defense Authorization Act for Fiscal
Year 2000 (Public Law 106-65; 113 Stat. 972; 50 U.S.C. 98d note) is
amended--
(1) in subsection (b)--
(A) by striking ``and'' at the end of paragraph (2);
and
(B) by striking paragraph (3) and inserting the
following new paragraphs:
``(3) $340,000,000 before the end of fiscal year 2005; and
``(4) $450,000,000 before the end of fiscal year 2013.'';
and
(2) in subsection (e), by adding at the end the following
new sentence: ``The disposal of materials under this section to
achieve the receipt levels specified in subsection (b), within
the time periods specified in subsection, shall be in addition
to any routine and on-going disposals used to fund operations of
the National Defense Stockpile.''.

TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

(a) Amount.--There are hereby authorized to be appropriated to the
Secretary of Energy $16,500,000 for fiscal year 2004 for the purpose of
carrying out activities under chapter 641 of title 10, United States
Code, relating to the naval petroleum reserves.
(b) Period of Availability.--Funds appropriated pursuant to the
authorization of appropriations in subsection (a) shall remain available
until expended.

TITLE [NOTE: Maritime Security Act of 2003.] XXXV--MARITIME
ADMINISTRATION

Sec. 3501. Short title.

Subtitle A--Maritime Administration Reauthorization

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

Subtitle B--Amendments to Title XI Loan Guarantee Program

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

[[Page 1789]]
117 STAT. 1789

Sec. 3527. Annual report on program.
Sec. 3528. Review of program.

Subtitle C--Maritime Security Fleet

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

Subtitle D--National Defense Tank Vessel Construction Assistance

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

SEC. 3501. [NOTE: 46 USC 53101 note.] SHORT TITLE.

This title may be cited as the ``Maritime Security Act of 2003''.

Subtitle A--Maritime Administration Reauthorization

SEC. 3511. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEARS 2004, 2005,
2006, 2007, AND 2008.

There are authorized to be appropriated to the Secretary of
Transportation for the Maritime Administration--
(1) for expenses necessary for operations and training
activities, not to exceed $104,400,000 for the fiscal year
ending September 30, 2004, $106,000,000 for the fiscal year
ending September 30, 2005, $109,000,000 for the fiscal year
ending September 30, 2006, $111,000,000 for the fiscal year
ending September 30, 2007, and $113,000,000 for the fiscal year
ending September 30, 2008;
(2) for expenses under the loan guarantee program authorized
by title XI of the Merchant Marine Act, 1936 (46 U.S.C. App.
1271 et seq.), $36,000,000 for each of fiscal years 2004, 2005,
2006, 2007, and 2008 of which--
(A) $30,000,000 shall be for the cost (as defined in
section 502(5) of the Federal Credit Reform Act of 1990
(2 U.S.C. 661a(5))) of loan guarantees under the
program; and
(B) $6,000,000 shall be for administrative expenses
related to loan guarantee commitments under the program;
and
(3) for ship disposal, $18,422,000 for fiscal year 2004,
$11,422,000 for each of fiscal years 2005 and 2006, and
$12,000,000 for each of fiscal years 2007 and 2008.

SEC. 3512. CONVEYANCE OF OBSOLETE VESSELS UNDER TITLE V, MERCHANT MARINE
ACT, 1936.

Section 508 of the Merchant Marine Act, 1936 (46 U.S.C. App. 1158)
is amended--
(1) by inserting ``(a) Authority To Scrap or Sell Obsolete
Vessels.--'' before ``If''; and
(2) by adding at the end the following:

``(b) Authority To Convey Vessels.--

[[Page 1790]]
117 STAT. 1790

``(1) In general.--Notwithstanding section 510(j) of this
Act, the Secretary of Transportation may convey the right,
title, and interest of the United States Government in any
vessel of the National Defense Reserve Fleet that has been
identified by the Secretary as an obsolete vessel of
insufficient value to warrant its further preservation, if--
``(A) the recipient is a non-profit organization, a
State, Commonwealth, or possession of the United States
or any municipal corporation or political subdivision
thereof, or the District of Columbia;
``(B) the recipient agrees not to use, or allow
others to use, the vessel for commercial transportation
purposes;
``(C) the recipient agrees to make the vessel
available to the Government whenever the Secretary
indicates that it is needed by the Government;
``(D) the recipient agrees to hold the Government
harmless for any claims arising from exposure to
asbestos, polychlorinated biphenyls, lead paint, or
other hazardous substances after conveyance of the
vessel, except for claims arising from use of the vessel
by the Government;
``(E) the recipient has a conveyance plan and a
business plan that describes the intended use of the
vessel, each of which have been submitted to and
approved by the Secretary;
``(F) the recipient has provided proof, as
determined by the Secretary, of resources sufficient to
accomplish the transfer, necessary repairs and
modifications, and initiation of the intended use of the
vessel; and
``(G) the recipient agrees that when the recipient
no longer requires the vessel for use as described in
the business plan required under subparagraph (E)--
``(i) the recipient will, at the discretion of
the Secretary, reconvey the vessel to the
Government in good condition except for ordinary
wear and tear; or
``(ii) if the Board of Trustees of the
recipient has decided to dissolve the recipient
according to the laws of the State in which the
recipient is incorporated, then--
``(I) the recipient shall distribute
the vessel, as an asset of the
recipient, to a person that has been
determined exempt from taxation under
the provisions of section 501(c)(3) of
the Internal Revenue Code, or to the
Federal Government or a State or local
government for a public purpose; and
``(II) the vessel shall be disposed
of by a court of competent jurisdiction
of the county in which the principal
office of the recipient is located, for
such purposes as the court shall
determine, or to such organizations as
the court shall determine are organized
exclusively for public purposes.
``(2) Other equipment.--At the Secretary's discretion,
additional equipment from other obsolete vessels of the National
Defense Reserve Fleet may be conveyed to assist the recipient
with maintenance, repairs, or modifications.
``(3) Additional terms.--The Secretary may require any
additional terms the Secretary considers appropriate.

[[Page 1791]]
117 STAT. 1791

``(4) Delivery of vessel.--If conveyance is made under this
subsection the vessel shall be delivered to the recipient at a
time and place to be determined by the Secretary. The vessel
shall be conveyed in an `as is' condition.
``(5) Limitations.--If at any time prior to delivery of the
vessel to the recipient, the Secretary determines that a
different disposition of a vessel would better serve the
interests of the Government, the Secretary shall pursue the more
favorable disposition of the obsolete vessel and shall not be
liable for any damages that may result from an intended
recipient's reliance upon a proposed transfer.
``(6) Reversion.--The Secretary shall include in any
conveyance under this subsection terms under which all right,
title, and interest conveyed by the Secretary shall revert to
the United States if the Secretary determines the vessel has
been used other than as described in the business plan required
under paragraph (1)(E).''.

SEC. 3513. AUTHORITY TO CONVEY VESSEL USS HOIST (ARS-40).

(a) In General.--Notwithstanding section 510(j) of the Merchant
Marine Act, 1936 (46 U.S.C. App. 1160(j)), the Secretary of
Transportation may convey the right, title, and interest of the United
States Government in and to the vessel USS HOIST (ARS-40), to the Last
Patrol Museum, located in Toledo, Ohio (a not-for-profit corporation, in
this section referred to as the ``recipient''), for use as a military
museum, if--
(1) the recipient agrees to use the vessel as a nonprofit
military museum;
(2) the recipient agrees not to use, or allow others to use,
the vessel for commercial transportation purposes;
(3) the recipient agrees to make the vessel available to the
Government whenever the Secretary indicates that it is needed by
the Government;
(4) the recipient agrees that when the recipient no longer
requires the vessel for use as a military museum--
(A) the recipient will, at the discretion of the
Secretary, reconvey the vessel to the Government in good
condition except for ordinary wear and tear; or
(B) if the Board of Trustees of the recipient has
decided to dissolve the recipient according to the laws
of the State in which the recipient is incorporated,
then--
(i) the recipient shall distribute the vessel,
as an asset of the recipient, to a person that has
been determined exempt from taxation under the
provisions of section 501(c)(3) of the Internal
Revenue Code, or to the Federal Government or a
State or local government for a public purpose;
and
(ii) the vessel shall be disposed of by a
court of competent jurisdiction of the county in
which the principal office of the recipient is
located, for such purposes as the court shall
determine, or to such organizations as the court
shall determine are organized exclusively for
public purposes;

[[Page 1792]]
117 STAT. 1792

(5) the recipient agrees to hold the Government harmless for
any claims arising from exposure to asbestos, polychlorinated
biphenyls, lead paint, or other hazardous substances after
conveyance of the vessel, except for claims arising from use of
the vessel by the Government;
(6) the recipient has available, for use to restore the
vessel, in the form of cash, liquid assets, or a written loan
commitment, financial resources of at least $100,000; and
(7) the recipient has a conveyance plan and a business plan
that describes the intended use of the vessel, each of which
have been submitted to and approved by the Secretary.

(b) Delivery of Vessel.--If a conveyance is made under this section,
the Secretary shall deliver the vessel at the place where the vessel is
located on the date of the enactment of this Act, in its present
condition, and without cost to the Government.
(c) Other Unneeded Equipment.--The Secretary may also convey any
unneeded equipment from other vessels in the National Defense Reserve
Fleet in order to restore the USS HOIST (ARS-40) to museum quality.
(d) Retention of Vessel in NDRF.--
(1) In general.--The Secretary shall retain in the National
Defense Reserve Fleet the vessel authorized to be conveyed under
subsection (a), until the earlier of--
(A) 2 years after the date of the enactment of this
Act; or
(B) the date of conveyance of the vessel under
subsection (a).
(2) Limitation.--Paragraph (1) does not require the
Secretary to retain the vessel in the National Defense Reserve
Fleet if the Secretary determines that retention of the vessel
in the fleet will pose an unacceptable risk to the marine
environment.

SEC. 3514. CARGO PREFERENCE.

Section 901b(c)(2) of the Merchant Marine Act, 1936 (46 U.S.C App.
1241f(c)(2)) is amended by striking ``1986.'' and inserting ``1986, the
18-month period beginning April 1, 2002, and the 12-month period
beginning October 1, 2003, and each year thereafter.''.

SEC. 3515. MARITIME EDUCATION AND TRAINING.

(a) Cost of Education Defined.--Section 1302 of the Merchant Marine
Act, 1936 (46 U.S.C. App. 1295a) is amended--
(1) by striking ``and'' after the semicolon in paragraph
(3);
(2) by striking ``States.'' in paragraph (4)(B) and
inserting ``States; and''; and
(3) by adding at the end the following:
``(5) the term `cost of education provided' means the
financial costs incurred by the Federal Government for providing
training or financial assistance to students at the United
States Merchant Marine Academy and the State maritime academies,
including direct financial assistance, room, board, classroom
academics, and other training activities.''.

(b) Commitment Agreements.--Section 1303(e) of the Merchant Marine
Act, 1936 (46 U.S.C. App. 1295b(e)) is amended--
(1) by striking ``Academy, unless the individual is
separated from the'' in paragraph (1)(A);
(2) by striking paragraph (1)(C) and inserting the
following:

[[Page 1793]]
117 STAT. 1793

``(C) to maintain a valid license as an officer in the
merchant marine of the United States for at least 6 years
following the date of graduation from the Academy of such
individual, accompanied by the appropriate national and
international endorsements and certification as required by the
United States Coast Guard for service aboard vessels on domestic
and international voyages;'';
(3) by striking paragraph (1)(E)(iii) and inserting the
following:
``(iii) as a commissioned officer on active duty in
an armed force of the United States, as a commissioned
officer in the National Oceanic and Atmospheric
Administration, or other maritime-related employment
with the Federal Government which serves the national
security interests of the United States, as determined
by the Secretary; or'';
(4) by striking paragraph (2) and inserting the following:

``(2)(A) If the Secretary determines that any individual who has
attended the Academy for not less than 2 years has failed to fulfill the
part of the agreement required by paragraph (1)(A), such individual may
be ordered by the Secretary of Defense to active duty in one of the
armed forces of the United States to serve for a period of time not to
exceed 2 years. In cases of hardship as determined by the Secretary, the
Secretary may waive this provision in whole or in part.
``(B) If the Secretary of Defense is unable or unwilling to order an
individual to active duty under subparagraph (A), or if the Secretary of
Transportation determines that reimbursement of the cost of education
provided would better serve the interests of the United States, the
Secretary may recover from the individual the cost of education provided
by the Federal Government.'';
(5) by striking paragraph (3) and inserting the following:

``(3)(A) If the Secretary determines that an individual has failed
to fulfill any part of the agreement required by paragraph (1), as
described in paragraph (1)(B), (C), (D), (E), or (F), such individual
may be ordered to active duty to serve a period of time not less than 3
years and not more than the unexpired portion, as determined by the
Secretary, of the service required by paragraph (1)(E). The Secretary,
in consultation with the Secretary of Defense, shall determine in which
service the individual shall be ordered to active duty to serve such
period of time. In cases of hardship, as determined by the Secretary,
the Secretary may waive this provision in whole or in part.
``(B) If the Secretary of Defense is unable or unwilling to order an
individual to active duty under subparagraph (A), or if the Secretary of
Transportation determines that reimbursement of the cost of education
provided would better serve the interests of the United States, the
Secretary may recover from the individual the cost of education provided
and may reduce the amount to be recovered from such individual to
reflect partial performance of service obligations and such other
factors as the Secretary determines merit such a reduction.''; and
(6) by redesignating paragraph (4) as paragraph (5) and
inserting after paragraph (3) the following:

``(4) To aid in the recovery of the cost of education provided by
the Federal Government pursuant to a commitment agreement under this
section, the Secretary may request the Attorney General to begin court
proceedings, and the Secretary may make use of

[[Page 1794]]
117 STAT. 1794

the Federal debt collection procedures in chapter 176 of title 28,
United States Code, or other applicable administrative remedies.''.
(c) Degrees Awarded.--Section 1303(g) of the Merchant Marine Act,
1936 (46 U.S.C. App. 1295b(g)) is amended to read as follows:
``(g) Degrees Awarded.--
``(1) Bachelor's degree.--The Superintendent of the Academy
may confer the degree of bachelor of science upon any individual
who has met the conditions prescribed by the Secretary and who,
if a citizen of the United States, has passed the examination
for a merchant marine officer's license. No individual may be
denied a degree under this subsection because the individual is
not permitted to take such examination solely because of
physical disqualification.
``(2) Master's degree.--The Superintendent of the Academy
may confer a master's degree upon any individual who has met the
conditions prescribed by the Secretary. Any master's degree
program may be funded through non-appropriated funds. In order
to maintain the appropriate academic standards, the program
shall be accredited by the appropriate accreditation body. The
Secretary may make regulations necessary to administer such a
program.''.

(d) Student Incentive Payments.--Section 1304(g) of the Merchant
Marine Act, 1936 (46 U.S.C. App. 1295c(g)) is amended--
(1) by striking ``$3,000'' in paragraph (1) and inserting
``$4,000'';
(2) in paragraph (3)(A) by striking ``attending, unless the
individual is separated by such academy;'' and inserting
``attending;'';
(3) by striking paragraph (3)(C) and inserting the
following:
``(C) to maintain a valid license as an officer in the
merchant marine of the United States for at least 6 years
following the date of graduation from such State maritime
academy of such individual, accompanied by the appropriate
national and international endorsements and certification as
required by the United States Coast Guard for service aboard
vessels on domestic and international voyages;'';
(4) by striking paragraph (3)(E)(iii) and inserting the
following:
``(iii) as a commissioned officer on active duty in
an armed force of the United States, as a commissioned
officer in the National Oceanic and Atmospheric
Administration, or in other maritime-related employment
with the Federal Government which serves the national
security interests of the United States, as determined
by the Secretary; or'';
(5) by striking paragraph (4) and inserting the following:

``(4)(A) If the Secretary determines that an individual who has
accepted the payment described in paragraph (1) for a minimum of 2
academic years has failed to fulfill the part of the agreement required
by paragraph (1) and described in paragraph (3)(A), such individual may
be ordered by the Secretary of Defense to active duty in the Armed
Forces of the United States to serve for a period of time not to exceed
2 years. In cases of hardship, as determined by the Secretary, the
Secretary may waive this provision in whole or in part.
``(B) If the Secretary of Defense is unable or unwilling to order an
individual to active duty under subparagraph (A), or if the

[[Page 1795]]
117 STAT. 1795

Secretary of Transportation determines that reimbursement of the cost of
education provided would better serve the interests of the United
States, the Secretary--
``(i) subject to clause (ii), may recover from the
individual the amount of student incentive payments, plus
interest and attorneys fees; and
``(ii) may reduce the amount to be recovered from such
individual to reflect partial performance of service obligations
and such other factors as the Secretary determines merit such
reduction.'';
(6) by striking paragraph (5) and inserting the following:

``(5)(A) If the Secretary determines that an individual has failed
to fulfill any part of the agreement required by paragraph (1), as
described in paragraph (3)(B), (C), (D), (E), or (F), such individual
may be ordered to active duty to serve a period of time not less than 2
years and not more than the unexpired portion, as determined by the
Secretary, of the service required by paragraph (3)(E). The Secretary,
in consultation with the Secretary of Defense, shall determine in which
service the individual shall be ordered to active duty to serve such
period of time. In cases of hardship, as determined by the Secretary,
the Secretary may waive this provision in whole or in part.
``(B) If the Secretary of Defense is unable or unwilling to order an
individual to active duty under subparagraph (A), or if the Secretary of
Transportation determines that reimbursement of the cost of education
provided would better serve the interests of the United States, the
Secretary--
``(i) subject to clause (ii), may recover from the
individual the amount of student incentive payments, plus
interest and attorneys fees; and
``(ii) may reduce the amount to be recovered from such
individual to reflect partial performance of service obligations
and such other factors as the Secretary determines merit such
reduction.''; and
(7) by redesignating paragraphs (6) and (7) as paragraphs
(7) and (8), respectively, and inserting after paragraph (5) the
following:

``(6) To aid in the recovery of student incentive payments plus
interest and attorneys fees the Secretary may request the Attorney
General to begin court proceedings, and the Secretary may make use of
the Federal debt collection procedures in chapter 176 of title 28,
United States Code, and other applicable administrative remedies.''.
(e) Awards and Medals.--Section 1306 of the Merchant Marine Act,
1936 (46 U.S.C. App. 1295e) is amended by adding at the end the
following:
``(d) Awards and Medals.--The Secretary may establish and maintain a
medals and awards program to recognize distinguished service, superior
achievement, professional performance, and other commendable achievement
by personnel of the United States Maritime Service.''.

SEC. 3516. AUTHORITY TO CONVEY OBSOLETE VESSELS TO UNITED STATES
TERRITORIES AND FOREIGN COUNTRIES FOR REEFING.

(a) Deadline for Preparation.--Paragraph (1) of section 3504(b) of
the Bob Stump National Defense Authorization Act for

[[Page 1796]]
117 STAT. 1796

Fiscal Year 2003 (Public Law 107-314; 116 Stat. 2754; 16 U.S.C. 1220
note) is amended by striking ``September 30, 2003,'' and inserting
``March 31, 2004,''.
(b) Guidance on Practices.--Such section is further amended--
(1) in paragraph (1), by inserting ``guidance recommending''
after ``jointly develop'';
(2) in paragraph (2), by inserting ``guidance recommending''
before ``environmental best management practices'';
(3) in paragraph (3)--
(A) in subparagraph (A), by inserting
``recommended'' after ``include'';
(B) by striking subparagraph (B) and inserting the
following new subparagraph (B):
``(B) promote consistent use of such practices
nationwide;''; and
(C) in subparagraph (C), by striking ``establish
baselines'' and inserting ``provide a basis''; and
(4) in paragraph (4), by striking ``guidelines to be used
by'' and inserting ``guidance for''.

(c) Applications for Preparation of Vessels as Reefs.--Such section
is further amended--
(1) by redesignating paragraph (5) as paragraph (6); and
(2) by inserting after paragraph (4) the following new
paragraph (5):

``(5) [NOTE: Deadline.] Not later than March 31, 2004, the
Secretary of Transportation, acting through the Maritime Administration,
and the Administrator of the Environmental Protection Agency shall
jointly establish an application process for governments of States,
commonwealths, and United States territories and possession, and foreign
governments, for the preparation of vessels for use as artificial reefs,
including documentation and certification requirements for that
application process.''.

SEC. 3517. [NOTE: 46 USC 53101 note.] MAINTENANCE AND REPAIR
REIMBURSEMENT PILOT PROGRAM.

(a) Authority to Enter Agreements.--
(1) In general.--The Secretary of Transportation may carry
out a pilot program under which the Secretary may enter into an
agreement with a contractor under chapter 531 of title 46,
United States Code, as amended by this Act, regarding
maintenance and repair of a vessel that is subject to an
operating agreement under that chapter.
(2) Limitation.--The Secretary may not require a person to
enter into an agreement under this section, including as a
condition of awarding an operating agreement to the person under
chapter 531 of title 46, United States Code, as amended by this
Act.

(b) Terms of Agreement.--An agreement under this section--
(1) shall require that except as provided in subsection (c),
all qualified maintenance or repair on the vessel shall be
performed in the United States;
(2) shall require that the Secretary shall reimburse the
contractor in accordance with subsection (d) for the costs of
qualified maintenance or repair performed in the United States;
and

[[Page 1797]]
117 STAT. 1797

(3) shall apply to maintenance and repair performed during
the 5-year period beginning on the date the vessel begins
operating under the operating agreement under chapter 531 of
title 46, United States Code.

(c) Exception to Requirement to Perform Work in the United States.--
A contractor shall not be required to have qualified maintenance or
repair work performed in the United States under this section, if the
Secretary determines that--
(1) there is no facility in the United States available to
perform the work; or
(2) there is not available to the Secretary sufficient funds
to pay reimbursement under subsection (d) with respect to the
work.

(d) Reimbursement.--
(1) In general.--The Secretary shall, subject to the
availability of appropriations, reimburse a contractor for costs
incurred by the contractor for qualified maintenance or repair
performed in the United States under this section.
(2) Amount.--The amount of reimbursement shall be equal to
80 percent of the difference between--
(A) the fair and reasonable cost of obtaining the
qualified maintenance or repair in the United States;
and
(B) the fair and reasonable cost of obtaining the
qualified maintenance or repair outside the United
States, in the geographic region in which the vessel
generally operates.
(3) Determination of fair and reasonable costs.--The
Secretary shall determine fair and reasonable costs for purposes
of paragraph (2).

(e) Notification Requirements.--
(1) Notification by contractor.--The Secretary is not
required to pay reimbursement to a contractor under this section
for qualified maintenance or repair, unless the contractor--
(A) notifies the Secretary of the intent of the
contractor to obtain the qualified maintenance or
repair, by not later than 180 days before the date of
the performance of the qualified maintenance or repair;
and
(B) includes in such notification--
(i) a description of all qualified maintenance
or repair that the contractor should reasonably
expect may be performed;
(ii) an estimate of the cost of obtaining such
qualified maintenance or repair in the United
States; and
(iii) an estimate of the cost of obtaining
such qualified maintenance or repair outside the
United States, in the geographic region in which
the vessel generally operates.
(2) Certification by secretary.--
Not [NOTE: Deadline.] later than 60 days after the date of
receipt of notification under paragraph (1), the Secretary shall
certify to the contractor--
(A) whether there is a facility in the United States
available to perform the qualified maintenance or repair
described in the notification by the contractor under
paragraph (1); and
(B) whether there is available to the Secretary
sufficient funds to pay reimbursement under subsection
(d) with respect to such work.

[[Page 1798]]
117 STAT. 1798

(f) Qualified Maintenance or Repair Defined.--In this section the
term ``qualified maintenance or repair''--
(1) except as provided in paragraph (2), means--
(A) any inspection of a vessel that is--
(i) required under chapter 33 of title 46,
United States Code; and
(ii) performed in the period in which the
vessel is subject to an agreement under this
section; and
(B) any maintenance or repair of a vessel that is
determined, in the course of an inspection referred to
in subparagraph (A), to be necessary to comply with the
laws of the United States; and
(2) does not include--
(A) routine maintenance or repair; or
(B) any emergency work that is necessary to enable a
vessel to return to a port in the United States.

(g) Analysis.--
(1) In general.--Not [NOTE: Deadline.] later than October
1, 2004, the Secretary of Transportation shall submit to the
Committee on Armed Services of the House of Representatives and
the Committee on Armed Services and the Committee on Commerce,
Science, and Transportation of the Senate, an analysis of the
need for agreements authorized by this section.
(2) Conduct and considerations.--In conducting the analysis,
the Secretary shall consider the overall costs and benefits of
the pilot program, including the following:
(A) The impact on operations of vessels in the
program.
(B) The availability of repair shipyards and
drydocks in the various regions of the United States (as
that term is defined in such chapter) that are capable
of handling such vessels that are ocean-going vessels.
(C) The experience of such shipyards in repairing
the types of such vessels.
(D) A comparison of drydock and repair costs between
available United States and foreign shipyards located
within the geographic range of the trading area of such
vessels.
(E) A comparison of the time period required for the
drydocking and repair of such vessels between available
United States shipyards and foreign shipyards.
(F) The impact of the voyage deviation of such
vessels to United States shipyards.
(G) The benefits to the Department of Defense of
having a vessel repair base in the United States to
accelerate the activation of the Ready Reserve Fleet.
(H) The benefits of extending the program to all
vessels that are subject to operating agreements under
chapter 531 of title 46, United States Code, as amended
by this Act.
(3) Recommendations.--The Secretary shall include in the
analysis recommendations of any additional incentives that are
necessary to encourage participation in the program.

(h) Authorization of Appropriations.--In addition to the other
amounts authorized by this subtitle, for reimbursement of costs of
qualified maintenance or repair under this section there is authorized
to be appropriated to the Secretary of Transportation $19,500,000 for
each of fiscal years 2006 through 2011.

[[Page 1799]]
117 STAT. 1799

Subtitle B--Amendments to Title XI Loan Guarantee Program

SEC. 3521. EQUITY PAYMENTS BY OBLIGOR FOR DISBURSEMENT PRIOR TO
TERMINATION OF ESCROW AGREEMENT.

(a) In General.--Section 1108 of the Merchant Marine Act, 1936 (46
U.S.C. App. 1279a) is amended by adding at the end the following:
``(g) Payments Required Before Disbursement.--
``(1) In general.--No disbursement shall be made under
subsection (b) to any person until the total amount paid by or
for the account of the obligor from sources other than the
proceeds of the obligation equals at least 25 percent or 12\1/2\
percent, whichever is applicable under section 1104A, of the
aggregate actual cost of the vessel, as previously approved by
the Secretary. If the aggregate actual cost of the vessel has
increased since the Secretary's initial approval or if it
increases after the first disbursement is permitted under this
subsection, then no further disbursements shall be made under
subsection (b) until the total amount paid by or for the account
of the obligor from sources other than the proceeds of the
obligation equals at least 25 percent or 12\1/2\ percent, as
applicable, of the increase, as determined by the Secretary, in
the aggregate actual cost of the vessel. Nothing in this
paragraph shall require the Secretary to consent to finance any
increase in actual cost unless the Secretary determines that
such an increase in the obligation meets all the terms and
conditions of this title or other applicable law.
``(2) Documented proof of progress requirement.--The
Secretary shall, by regulation, establish a transparent,
independent, and risk-based process for verifying and
documenting the progress of projects under construction before
disbursing guaranteed loan funds. At a minimum, the process
shall require documented proof of progress in connection with
the construction, reconstruction, or reconditioning of a vessel
or vessels before disbursements are made from the escrow fund.
The Secretary may require that the obligor provide a certificate
from an independent party certifying that the requisite progress
in construction, reconstruction, or reconditioning has taken
place.''.

(b) Definition of Actual Cost.--Section 1101(f) of the Merchant
Marine Act, 1936 (46 U.S.C. App. 1271(f)) is amended to read as follows:
``(f) Actual Cost Defined.--The term `actual cost' means the sum
of--
``(1) all amounts paid by or for the account of the obligor
as of the date on which a determination is made under section
1108(g)(1); and
``(2) all amounts that the Secretary reasonably estimates
that the obligor will become obligated to pay from time to time
thereafter, for the construction, reconstruction, or
reconditioning of the vessel, including guarantee fees that will
become payable under section 1104A(e) in connection with all
obligations issued for construction, reconstruction, or
reconditioning of the vessel or equipment to be delivered, and
all obligations issued for the delivered vessel or equipment.''.

[[Page 1800]]
117 STAT. 1800

SEC. 3522. WAIVERS OF PROGRAM REQUIREMENTS.

Section 1104A(d) of the Merchant Marine Act, 1936 (46 U.S.C. App.
1274(d)) is amended by redesignating paragraph (4) as paragraph (5), and
inserting after paragraph (3) the following:
``(4) The [NOTE: Regulations.] Secretary shall promulgate
regulations concerning circumstances under which waivers of or
exceptions to otherwise applicable regulatory requirements
concerning financial condition can be made. The regulations
shall require that--
``(A) the economic soundness requirements set forth
in paragraph (1)(A) of this subsection are met after the
waiver of the financial condition requirement; and
``(B) the waiver shall provide for the imposition of
other requirements on the obligor designed to compensate
for the increased risk associated with the obligor's
failure to meet regulatory requirements applicable to
financial condition.''.

SEC. 3523. PROJECT MONITORING.

(a) Project Monitoring.--Section 1104A of the Merchant Marine Act,
1936 (46 U.S.C. App. 1274) is amended by adding at the end the
following:
``(k) Monitoring.--The Secretary shall monitor the financial
conditions and operations of the obligor on a regular basis during the
term of the guarantee. The Secretary shall document the results of the
monitoring on an annual or quarterly basis depending upon the condition
of the obligor. If the Secretary determines that the financial condition
of the obligor warrants additional protections to the Secretary, then
the Secretary shall take appropriate action under subsection (m) of this
section. If the Secretary determines that the financial condition of the
obligor jeopardizes its continued ability to perform its
responsibilities in connection with the guarantee of obligations by the
Secretary, the Secretary shall make an immediate determination whether
default should take place and whether further measures described in
subsection (m) should be taken to protect the interests of the Secretary
while insuring that program objectives are met.''.
(b) Separation of Duties and Other Requirements.--Section 1104A of
the Merchant Marine Act, 1936 (46 U.S.C. App. 1274), as amended by
subsection (a), is further amended by adding at the end the following:
``(l) Review of Applications.--No commitment to guarantee, or
guarantee of, an obligation shall be made by the Secretary unless the
Secretary certifies that a full and fair consideration of all the
regulatory requirements, including economic soundness and financial
requirements applicable to obligors and related parties, and a thorough
assessment of the technical, economic, and financial aspects of the loan
application has been made.
``(m) Agreement With Obligor.--The Secretary shall include
provisions in loan agreements with obligors that provide additional
authority to the Secretary to take action to limit potential losses in
connection with defaulted loans or loans that are in jeopardy due to the
deteriorating financial condition of obligors. Provisions that the
Secretary shall include in loan agreements include requirements for
additional collateral or greater equity contributions that are effective
upon the occurrence of verifiable conditions relating to the obligors
financial condition or the status of the vessel or shipyard project.''.

[[Page 1801]]
117 STAT. 1801

SEC. 3524. DEFAULTS.

Section 1105 of the Merchant Marine Act, 1936 (46 U.S.C. App. 1275)
is amended by adding at the end the following:
``(f) Default Response.--In the event of default on an obligation,
the Secretary shall conduct operations under this title in a manner
which--
``(1) maximizes the net present value return from the sale
or disposition of assets associated with the obligation,
including prompt referral to the Attorney General for collection
as appropriate;
``(2) minimizes the amount of any loss realized in the
resolution of the guarantee;
``(3) ensures adequate competition and fair and consistent
treatment of offerors; and
``(4) requires appraisal of assets by an independent
appraiser.''.

SEC. 3525. DECISION PERIOD.

Section 1104A of the Merchant Marine Act, 1936 (46 U.S.C. App.
1274), as amended by section 3523, is amended by adding at the end the
following:
``(n) Decision Period.--
``(1) In general.--The Secretary of Transportation shall
approve or deny an application for a loan guarantee under this
title within 270 days after the date on which the signed
application is received by the Secretary.
``(2) Extension.--Upon request by an applicant, the
Secretary may extend the 270-day period in paragraph (1) to a
date not later than 2 years after the date on which the signed
application for the loan guarantee was received by the
Secretary.''.

SEC. 3526. LOAN GUARANTEES.

Section 1104A of the Merchant Marine Act, 1936 (46 U.S.C. App. 1274)
is amended--
(1) by striking subsection (d)(5); and
(2) in subsection (f)--
(A) by striking ``(including for obtaining
independent analysis under subsection (d)(4))'';
(B) by inserting ``(1)'' after ``(f)''; and
(C) by adding at the end the following:

``(2) The Secretary may make a determination that aspects of an
application under this title require independent analysis to be
conducted by third party experts due to risk factors associated with
markets, technology, financial structures, or other risk factors
identified by the Secretary. Any independent analysis conducted pursuant
to this provision shall be performed by a party chosen by the Secretary.
``(3) Notwithstanding any other provision of this title, the
Secretary may make a determination that an application under this title
requires additional equity because of increased risk factors associated
with markets, technology, financial structures, or other risk factors
identified by the Secretary.

``(4) The Secretary may charge and collect fees to cover the costs
of independent analysis under paragraph (2). Notwithstanding section
3302 of title 31, United States Code, any fee collected under this
paragraph shall--

[[Page 1802]]
117 STAT. 1802

``(A) be credit as an offsetting collection to the account
that finances the administration of the loan guarantee program;
``(B) shall be available for expenditure only to pay the
costs of activities and services for which the fee is imposed;
and
``(C) shall remain available until expended.''.

SEC. 3527. [NOTE: 46 USC app. 1280b.] ANNUAL REPORT ON PROGRAM.

The Secretary of Transportation shall report to Congress annually on
the loan guarantee program under title XI of the Merchant Marine Act,
1936 (46 U.S.C. App. 1271 et seq.). The reports shall include--
(1) the size, in dollars, of the portfolio of loans
guaranteed;
(2) the size, in dollars, of projects in the portfolio
facing financial difficulties;
(3) the number and type of projects covered;
(4) a profile of pending loan applications;
(5) the amount of appropriations available for new
guarantees;
(6) a profile of each project approved since the last
report; and
(7) a profile of any defaults since the last report.

SEC. 3528. [NOTE: 46 USC app. 1271 note.] REVIEW OF PROGRAM.

(a) In General.--The Secretary of Transportation shall conduct a
comprehensive assessment of the human capital and other resource needs
in connection with the title XI loan guarantee program under the
Merchant Marine Act, 1936 (46 U.S.C. App. 1271 et seq.). In connection
with this assessment, the Secretary shall develop an organizational
framework for the program offices that insures that a clear separation
of duties is established among the loan application, project monitoring,
and default management functions.
(b) Program Enhancements.--
(1) Section 1103(h)(1) of the Merchant Marine Act, 1936 (46
U.S.C. App. 1273(h)(1)) is amended--
(A) by striking ``subsection'' in subparagraph (A)
and inserting ``subsection, and update annually,'';
(B) by inserting ``annually'' before ``determine''
in subparagraph (B);
(C) by striking ``and'' after the semicolon in
subparagraph (A);
(D) by striking ``category.'' in subparagraph (B)
and inserting ``category; and''; and
(E) by adding at the end the following:
``(C) ensure that each risk category is comprised of
loans that are relatively homogeneous in cost and share
characteristics predictive of defaults and other costs,
given the facts known at the time of obligation or
commitment, using a risk category system that is based
on historical analysis of program data and statistical
evidence concerning the likely costs of defaults or
other costs that expected to be associated with the
loans in the category.''.
(2) Section 1103(h)(2)(A) of that Act (46 U.S.C. App.
1273(h)(2)(A)) is amended by inserting ``and annually for
projects subject to a guarantee,'' after ``obligation,''.
(3) Section 1103(h)(3) of that Act (46 U.S.C. App.
1273(h)(3)) is amended by adding at the end the following:

[[Page 1803]]
117 STAT. 1803

``(K) A risk factor for concentration risk
reflecting the risk presented by an unduly large
percentage of loans outstanding by any 1 borrower or
group of affiliated borrowers.''.

(c) Report.--The Secretary shall report to the Committee on Armed
Services and the Committee on Commerce, Science, and Transportation of
the Senate and the Committee on Armed Services of the House of
Representatives on the results of the development of an organizational
framework under subsection (a) by January 2, 2004.

Subtitle C--Maritime Security Fleet

SEC. 3531. ESTABLISHMENT OF MARITIME SECURITY FLEET.

(a) In General.--Title 46, United States Code, is amended by
inserting before subtitle VI the following new subtitle:

``Subtitle V--Merchant Marine

``Chap.                                                             Sec.
Maritime Security Fleet                                53101

``CHAPTER 531--MARITIME SECURITY FLEET

``Sec.
``53101. Definitions.
``53102. Establishment of Maritime Security Fleet.
``53103. Award of operating agreements.
``53104. Effectiveness of operating agreements.
``53105. Obligations and rights under operating agreements.
``53106. Payments.
``53107. National security requirements.
``53108. Regulatory relief.
``53109. Special rule regarding age of participating fleet vessel.
``53110. Regulations.
``53111. Authorization of appropriations.

``Sec. 53101. Definitions

``In this chapter:
``(1) Bulk cargo.--The term `bulk cargo' means cargo that is
loaded and carried in bulk without mark or count.
``(2) Contractor.--The term `contractor' means an owner or
operator of a vessel that enters into an operating agreement for
the vessel with the Secretary under section 53103.
``(3) Fleet.--The term `Fleet' means the Maritime Security
Fleet established under section 53102(a).
``(4) Foreign commerce.--The term `foreign commerce'--
``(A) subject to subparagraph (B), means--
``(i) commerce or trade between the United
States, its territories or possessions, or the
District of Columbia, and a foreign country; and
``(ii) commerce or trade between foreign
countries; and
``(B) includes, in the case of liquid and dry bulk
cargo carrying services, trading between foreign ports
in accordance with normal commercial bulk shipping
practices in such manner as will permit United States-
documented vessels freely to compete with foreign-flag
bulk carrying vessels in their operation or in competing
for charters, subject to rules and regulations
promulgated by the Secretary of

[[Page 1804]]
117 STAT. 1804

Transportation pursuant to this chapter or subtitle D of
the Maritime Security Act of 2003.
``(5) LASH vessel.--The term `LASH vessel' means a lighter
aboard ship vessel.
``(6) Participating fleet vessel.--The term `participating
fleet vessel' means any vessel that--
``(A) on October 1, 2005--
``(i) meets the requirements of paragraph (1),
(2), (3), or (4) of section 53102(c); and
``(ii) is less than 25 years of age, or less
than 30 years of age in the case of a LASH vessel;
and
``(B) on December 31, 2004, is covered by an
operating agreement under subtitle B of title VI of the
Merchant Marine Act, 1936 (46 U.S.C. App. 1187 et seq.).
``(7) Person.--The term `person' includes corporations,
partnerships, and associations existing under or authorized by
the laws of the United States, or any State, Territory,
District, or possession thereof, or of any foreign country.
``(8) Product tank vessel.--The term `product tank vessel'
means a double hulled tank vessel capable of carrying
simultaneously more than 2 separated grades of refined petroleum
products.
``(9) Secretary.--The term `Secretary' means the Secretary
of Transportation.
``(10) Tank vessel.--The term `tank vessel' has the meaning
that term has under section 2101 of this title.
``(11) United states.--The term `United States' includes the
District of Columbia, the Commonwealth of Puerto Rico, the
Northern Mariana Islands, Guam, American Samoa, the Virgin
Islands.
``(12) United states citizen trust.--(A) Subject to
subparagraph (C), the term `United States citizen trust' means a
trust that is qualified under this paragraph.
``(B) A trust is qualified under this paragraph with respect
to a vessel only if--
``(i) each of the trustees is a citizen of the
United States; and
``(ii) the application for documentation of the
vessel under chapter 121 of this title includes the
affidavit of each trustee stating that the trustee is
not aware of any reason involving a beneficiary of the
trust that is not a citizen of the United States, or
involving any other person that is not a citizen of the
United States, as a result of which the beneficiary or
other person would hold more than 25 percent of the
aggregate power to influence or limit the exercise of
the authority of the trustee with respect to matters
involving any ownership or operation of the vessel that
may adversely affect the interests of the United States.
``(C) If any person that is not a citizen of the United
States has authority to direct or participate in directing a
trustee for a trust in matters involving any ownership or
operation of the vessel that may adversely affect the interests
of the United States or in removing a trustee for a trust
without cause, either directly or indirectly through the control
of another person, the trust is not qualified under this
paragraph unless the trust instrument provides that persons who

[[Page 1805]]
117 STAT. 1805

are not citizens of the United States may not hold more than 25
percent of the aggregate authority to so direct or remove a
trustee.
``(D) This paragraph shall not be considered to prohibit a
person who is not a citizen of the United States from holding
more than 25 percent of the beneficial interest in a trust.
``(13) United states-documented vessel.--The term `United
States-documented vessel' means a vessel documented under
chapter 121 of this title.

``Sec. 53102. Establishment of Maritime Security Fleet

``(a) In General.--The Secretary of Transportation, in consultation
with the Secretary of Defense, shall establish a fleet of active,
commercially viable, militarily useful, privately owned vessels to meet
national defense and other security requirements and maintain a United
States presence in international commercial shipping. The Fleet shall
consist of privately owned, United States-documented vessels for which
there are in effect operating agreements under this chapter, and shall
be known as the Maritime Security Fleet.
``(b) Vessel Eligibility.--A vessel is eligible to be included in
the Fleet if--
``(1) the vessel meets the requirements of paragraph (1),
(2), (3), or (4) of subsection (c);
``(2) the vessel is operated (or in the case of a vessel to
be constructed, will be operated) in providing transportation in
foreign commerce;
``(3) the vessel is self-propelled and is--
``(A) a roll-on/roll-off vessel with a carrying
capacity of at least 80,000 square feet or 500 twenty-
foot equivalent units and that is 15 years of age or
less on the date the vessel is included in the Fleet;
``(B) a tank vessel that is constructed in the
United States after the date of the enactment of this
chapter;
``(C) a tank vessel that is 10 years of age or less
on the date the vessel is included in the Fleet;
``(D) a LASH vessel that is 25 years of age or less
on the date the vessel is included in the Fleet; or
``(E) any other type of vessel that is 15 years of
age or less on the date the vessel is included in the
Fleet;
``(4) the vessel is--
``(A) determined by the Secretary of Defense to be
suitable for use by the United States for national
defense or military purposes in time of war or national
emergency; and
``(B) determined by the Secretary to be commercially
viable; and
``(5) the vessel--
``(A) is a United States-documented vessel; or
``(B) is not a United States-documented vessel,
but--
``(i) the owner of the vessel has demonstrated
an intent to have the vessel documented under
chapter 121 of this title if it is included in the
Fleet; and
``(ii) at the time an operating agreement for
the vessel is entered into under this chapter, the
vessel is eligible for documentation under chapter
121 of this title.

[[Page 1806]]
117 STAT. 1806

``(c) Requirements Regarding Citizenship of Owners, Charterers, and
Operators.--
``(1) Vessel owned and operated by section 2 citizens.--A
vessel meets the requirements of this paragraph if, during the
period of an operating agreement under this chapter that applies
to the vessel, the vessel will be owned and operated by one or
more persons that are citizens of the United States under
section 2 of the Shipping Act, 1916 (46 U.S.C. App. 802).
``(2) Vessel owned by section 2 citizen or united states
citizen trust, and chartered to documentation citizen.--A vessel
meets the requirements of this paragraph if--
``(A) during the period of an operating agreement
under this chapter that applies to the vessel, the
vessel will be--
``(i) owned by a person that is a citizen of
the United States under section 2 of the Shipping
Act, 1916 (46 U.S.C. App. 802) or that is a United
States citizen trust; and
``(ii) demise chartered to a person--
``(I) that is eligible to document
the vessel under chapter 121 of this
title;
``(II) the chairman of the board of
directors, chief executive officer, and
a majority of the members of the board
of directors of which are citizens of
the United States under section 2 of the
Shipping Act, 1916 (46 U.S.C. App. 802),
and are appointed and subjected to
removal only upon approval by the
Secretary; and
``(III) that certifies to the
Secretary that there are no treaties,
statutes, regulations, or other laws
that would prohibit the contractor for
the vessel from performing its
obligations under an operating agreement
under this chapter;
``(B) in the case of a vessel that will be demise
chartered to a person that is owned or controlled by
another person that is not a citizen of the United
States under section 2 of the Shipping Act, 1916 (46
U.S.C. App. 802), the other person enters into an
agreement with the Secretary not to influence the
operation of the vessel in a manner that will adversely
affect the interests of the United States; and
``(C) the Secretary and the Secretary of Defense
notify the Committee on Armed Services and the Committee
on Commerce, Science, and Transportation of the Senate
and the Committee on Armed Services of the House of
Representatives that they concur with the certification
required under subparagraph (A)(ii)(III), and have
reviewed and agree that there are no other legal,
operational, or other impediments that would prohibit
the contractor for the vessel from performing its
obligations under an operating agreement under this
chapter.
``(3) Vessel owned and operated by defense contractor.--A
vessel meets the requirements of this paragraph if--

[[Page 1807]]
117 STAT. 1807

``(A) during the period of an operating agreement
under this chapter that applies to the vessel, the
vessel will be owned and operated by a person that--
``(i) is eligible to document a vessel under
chapter 121 of this title;
``(ii) operates or manages other United
States-documented vessels for the Secretary of
Defense, or charters other vessels to the
Secretary of Defense;
``(iii) has entered into a special security
agreement for purposes of this paragraph with the
Secretary of Defense;
``(iv) makes the certification described in
paragraph (2)(A)(ii)(III); and
``(v) in the case of a vessel described in
paragraph (2)(B), enters into an agreement
referred to in that paragraph; and
``(B) the Secretary and the Secretary of Defense
notify the Committee on Armed Services and the Committee
on Commerce, Science, and Transportation of the Senate
and the Committee on Armed Services of the House of
Representatives that they concur with the certification
required under subparagraph (A)(iv), and have reviewed
and agree that there are no other legal, operational, or
other impediments that would prohibit the contractor for
the vessel from performing its obligations under an
operating agreement under this chapter.
``(4) Vessel owned by documentation citizen and chartered to
section 2 citizen.--A vessel meets the requirements of this
paragraph if, during the period of an operating agreement under
this chapter that applies to the vessel, the vessel will be--
``(A) owned by a person that is eligible to document
a vessel under chapter 121 of this title; and
``(B) demise chartered to a person that is a citizen
of the United States under section 2 of the Shipping
Act, 1916 (46 U.S.C. App. 802).

``(d) Request by Secretary of Defense.--The Secretary of Defense
shall request the Secretary of Homeland Security to issue any waiver
under the first section of Public Law 81-891 (64 Stat. 1120; 46 U.S.C.
App. note prec. 3) that is necessary for purposes of this chapter.
``(e) Vessel Standards.--
``(1) Certificate of inspection.--A vessel used to provide
oceangoing transportation which the Secretary of the department
in which the Coast Guard is operating determines meets the
criteria of subsection (b) of this section but which, on the
date of enactment of the Maritime Security Act of 2003, is not a
documented vessel (as that term is defined in section 12101 of
this title) shall be eligible for a certificate of inspection if
the Secretary determines that--
``(A) the vessel is classed by and designed in
accordance with the rules of the American Bureau of
Shipping, or another classification society accepted by
the Secretary;
``(B) the vessel complies with applicable
international agreements and associated guidelines, as
determined by

[[Page 1808]]
117 STAT. 1808

the country in which the vessel was documented
immediately before becoming a documented vessel (as
defined in that section); and
``(C) that country has not been identified by the
Secretary as inadequately enforcing international vessel
regulations as to that vessel.
``(2) Continued eligibility for certificate.--Paragraph (1)
does not apply to a vessel after any date on which the vessel
fails to comply with the applicable international agreements and
associated guidelines referred to in paragraph (1)(B).
``(3) Reliance on classification society.--
``(A) In general.--The Secretary may rely on a
certification from the American Bureau of Shipping or,
subject to subparagraph (B), another classification
society accepted by the Secretary to establish that a
vessel is in compliance with the requirements of
paragraphs (1) and (2).
``(B) Foreign classification society.--The Secretary
may accept certification from a foreign classification
society under subparagraph (A) only--
``(i) to the extent that the government of the
foreign country in which the society is
headquartered provides access on a reciprocal
basis to the American Bureau of Shipping; and
``(ii) if the foreign classification society
has offices and maintains records in the United
States.

``(f) Waiver of Age Restriction.--The Secretary of Defense, in
conjunction with the Secretary of Transportation, may waive the
application of an age restriction under subsection (b)(3) if the
Secretaries jointly determine that the waiver--
``(1) is in the national interest;
``(2) is appropriate to allow the maintenance of the
economic viability of the vessel and any associated operating
network; and
``(3) is necessary due to the lack of availability of other
vessels and operators that comply with the requirements of this
chapter.

``Sec. 53103. Award of operating agreements

``(a) In General.--The Secretary shall require, as a condition of
including any vessel in the Fleet, that the person that is the owner or
operator of the vessel for purposes of section 53102(c) enter into an
operating agreement with the Secretary under this section.
``(b) [NOTE: Deadlines.] Procedure for Applications.--
``(1) Acceptance of applications.--Beginning no later than
30 days after the effective date of this chapter, the Secretary
shall accept applications for enrollment of vessels in the
Fleet.
``(2) Action on applications.--Within 90 days after receipt
of an application for enrollment of a vessel in the Fleet, the
Secretary shall approve the application in conjunction with the
Secretary of Defense, and shall enter into an operating
agreement with the applicant, or provide in writing the reason
for denial of that application.
``(3) Participating fleet vessels.--
``(A) In general.--The Secretary shall accept an
application for an operating agreement for a
participating

[[Page 1809]]
117 STAT. 1809

fleet vessel under the priority under subsection
(c)(1)(B) only from a person that has authority to enter
into an operating agreement for the vessel with respect
to the full term of the operating agreement.
``(B) Vessel under demise charter.--For purposes of
subparagraph (A), in the case of a vessel that is
subject to a demise charter that terminates by its terms
on September 30, 2005 (without giving effect to any
extension provided therein for completion of a voyage or
to effect the actual redelivery of the vessel), or that
is terminable at will by the owner of the vessel after
such date, only the owner of the vessel shall be treated
as having the authority referred to in paragraph (1).
``(C) Vessel owned by united states citizen trust.--
For purposes of subparagraph (B), in the case of a
vessel owned by a United States citizen trust, the term
`owner of the vessel' includes a beneficial owner of the
vessel with respect to such trust.

``(c) Priority for Awarding Agreements.--
``(1) In general.--Subject to the availability of
appropriations, the Secretary shall enter into operating
agreements according to the following priority:
``(A) New tank vessels.--First, for any tank vessel
that--
``(i) is constructed in the United States
after the effective date of this chapter;
``(ii) is eligible to be included in the Fleet
under section 53102(b); and
``(iii) during the period of an operating
agreement under this chapter that applies to the
vessel, will be owned and operated by one or more
persons that are citizens of the United States
under section 2 of the Shipping Act, 1916 (46
U.S.C. App. 802),
except that the Secretary shall not enter into operating
agreements under this subparagraph for more than 5 such
vessels.
``(B) Participating fleet vessels.--Second, to the
extent amounts are available after applying
subparagraphs (A), for any participating fleet vessel,
except that the Secretary shall not enter into operating
agreements under this subparagraph for more than 47
vessels.
``(C) Certain vessels operated by section 2
citizens.--Third, to the extent amounts are available
after applying subparagraphs (A) and (B), for any other
vessel that is eligible to be included in the Fleet
under section 53102(b), and that, during the period of
an operating agreement under this chapter that applies
to the vessel, will be--
``(i) owned and operated by one or more
persons that are citizens of the United States
under section 2 of the Shipping Act, 1916 (46
U.S.C. App. 802); or
``(ii) owned by a person that is eligible to
document the vessel under chapter 121 of this
title, and operated by a person that is a citizen
of the United States under section 2 of the
Shipping Act, 1916 (46 U.S.C. App. 802).

[[Page 1810]]
117 STAT. 1810

``(D) Other eligible vessels.--Fourth, to the extent
amounts are available after applying subparagraphs (A),
(B), and (C), for any other vessel that is eligible to
be included in the Fleet under section 53102(b).
``(2) Reduction in number of slots for participating fleet
vessels.--The number in paragraph (1)(B) shall be reduced by 1--
``(A) for each participating fleet vessel for which
an application for enrollment in the Fleet is not
received by the Secretary within the 90-day period
beginning on the effective date of this chapter; and
``(B) for each participating fleet vessel for which
an application for enrollment in the Fleet received by
the Secretary is not approved by the Secretary and the
Secretary of Defense within the 90-day period beginning
on the date of such receipt.
``(3) Discretion within priority.--The Secretary--
``(A) subject to subparagraph (B), may award
operating agreements within each priority under
paragraph (1) as the Secretary considers appropriate;
and
``(B) shall award operating agreement within a
priority--
``(i) in accordance with operational
requirements specified by the Secretary of
Defense;
``(ii) in the case of operating agreements
awarded under subparagraph (C) or (D) of paragraph
(1), according to applicants' records of owning
and operating vessels; and
``(iii) subject to the approval of the
Secretary of Defense.
``(4) Treatment of tank vessel to be replaced.--(A) For
purposes of the application of paragraph (1)(A) with respect to
the award of an operating agreement, the Secretary may treat an
existing tank vessel that is eligible to be included in the
Fleet under section 53102(b) as a vessel that is constructed in
the United States after the effective date of this chapter, if--
``(i) a binding contract for construction in the
United States of a replacement vessel to be operated
under the operating agreement is executed by not later
than 9 months after the first date amounts are available
to carry out this chapter; and
``(ii) the replacement vessel is eligible to be
included in the Fleet under section 53102(b).
``(B) No payment under this chapter may be made for an
existing tank vessel for which an operating agreement is awarded
under this paragraph after the earlier of--
``(i) 4 years after the first date amounts are
available to carry out this chapter; or
``(ii) the date of delivery of the replacement tank
vessel.

``(d) Limitation.--The Secretary may not award operating agreements
under this chapter that require payments under section 53106 for a
fiscal year for more than 60 vessels.

``Sec. 53104. Effectiveness of operating agreements

``(a) Effectiveness, Generally.--The Secretary may enter into an
operating agreement under this chapter for fiscal year

[[Page 1811]]
117 STAT. 1811

2006. Except as provided in subsection (b), the agreement shall be
effective only for 1 fiscal year, but shall be renewable, subject to the
availability of appropriations, for each subsequent fiscal year through
the end of fiscal year 2015.
``(b) Vessels Under Charter to United States.--Unless an earlier
date is requested by the applicant, the effective date for an operating
agreement with respect to a vessel that is, on the date of entry into an
operating agreement, on charter to the United States Government, other
than a charter pursuant to an Emergency Preparedness Agreement under
section 53107, shall be the expiration or termination date of the
Government charter covering the vessel, or any earlier date the vessel
is withdrawn from that charter.
``(c) Termination.--
``(1) Termination by secretary.--If the contractor with
respect to an operating agreement materially fails to comply
with the terms of the agreement--
``(A) the Secretary shall notify the contractor and
provide a reasonable opportunity to comply with the
operating agreement;
``(B) the Secretary shall terminate the operating
agreement if the contractor fails to achieve such
compliance; and
``(C) upon such termination, any funds obligated by
the agreement shall be available to the Secretary to
carry out this chapter.
``(2) Early termination by contractor, generally.--An
operating agreement under this chapter shall terminate on a date
specified by the contractor if the contractor notifies the
Secretary, by not later than 60 days before the effective date
of the termination, that the contractor intends to terminate the
agreement.
``(3) Early termination by contractor, with available
replacement.--An operating agreement under this chapter shall
terminate upon the expiration of the 3-year period beginning on
the date a vessel begins operating under the agreement, if--
``(A) the contractor notifies the Secretary, by not
later than 2 years after the date the vessel begins
operating under the agreement, that the contractor
intends to terminate the agreement under this paragraph;
and
``(B) the Secretary, in conjunction with the
Secretary of Defense, determines that--
``(i) an application for an operating
agreement under this chapter has been received for
a replacement vessel that is acceptable to the
Secretaries; and
``(ii) during the period of an operating
agreement under this chapter that applies to the
replacement vessel, the replacement vessel will
be--
``(I) owned and operated by one or
more persons that are citizens of the
United States under section 2 of the
Shipping Act, 1916 (46 U.S.C. App. 802);
or
``(II) owned by a person that is
eligible to document the vessel under
chapter 121 of this title, and operated
by a person that is a citizen of the
United States under section 2 of the
Shipping Act, 1916 (46 U.S.C. App. 802).

[[Page 1812]]
117 STAT. 1812

``(d) Nonrenewal for Lack of Funds.--If, by the first day of a
fiscal year, sufficient funds have not been appropriated under the
authority provided by this chapter for that fiscal year, then the
Secretary shall notify the Committee on Armed Services and the Committee
on Commerce, Science, and Transportation of the Senate and the Committee
on Armed Services of the House of Representatives that operating
agreements authorized under this chapter for which sufficient funds are
not available will not be renewed for that fiscal year if sufficient
funds are not appropriated by the 60th day of that fiscal year.
``(e) Release of Vessels From Obligations.--If an operating
agreement under this chapter is terminated under subsection (c)(3), or
if funds are not appropriated for payments under an operating agreement
under this chapter for any fiscal year by the 60th day of that fiscal
year, then--
``(1) each vessel covered by the operating agreement is
thereby released from any further obligation under the operating
agreement;
``(2) the owner or operator of the vessel may transfer and
register such vessel under a foreign registry that is acceptable
to the Secretary of Transportation and the Secretary of Defense,
notwithstanding section 9 of the Shipping Act, 1916 (46 U.S.C.
App. 808); and
``(3) if section 902 of the Merchant Marine Act, 1936 (46
U.S.C. App. 1242) is applicable to such vessel after
registration of the vessel under such a registry, then the
vessel is available to be requisitioned by the Secretary of
Transportation pursuant to section 902 of such Act.

``Sec. 53105. Obligations and rights under operating agreements

``(a) Operation of Vessel.--An operating agreement under this
chapter shall require that, during the period a vessel is operating
under the agreement--
``(1) the vessel--
``(A) shall be operated exclusively in the foreign
commerce or in mixed foreign commerce and domestic trade
allowed under a registry endorsement issued under
section 12105 of this title; and
``(B) shall not otherwise be operated in the
coastwise trade; and
``(2) the vessel shall be documented under chapter 121 of
this title.

``(b) Annual Payments by Secretary.--
``(1) In general.--An operating agreement under this chapter
shall require, subject to the availability of appropriations,
that the Secretary make a payment each fiscal year to the
contractor in accordance with section 53106.
``(2) Operating agreement is obligation of united states
government.--An operating agreement under this chapter
constitutes a contractual obligation of the United States
Government to pay the amounts provided for in the agreement to
the extent of actual appropriations.

``(c) Documentation Requirement.--Each vessel covered by an
operating agreement (including an agreement terminated under section
53104(c)(2)) shall remain documented under chapter 121 of this title,
until the date the operating agreement would terminate according to its
terms.

[[Page 1813]]
117 STAT. 1813

``(d) National Security Requirements.--
``(1) In general.--A contractor with respect to an operating
agreement (including an agreement terminated under section
53104(c)(2)) shall continue to be bound by the provisions of
section 53107 until the date the operating agreement would
terminate according to its terms.
``(2) Emergency preparedness agreement.--All terms and
conditions of an Emergency Preparedness Agreement entered into
under section 53107 shall remain in effect until the date the
operating agreement would terminate according to its terms,
except that the terms of such Emergency Preparedness Agreement
may be modified by the mutual consent of the contractor, the
Secretary of Transportation, and the Secretary of Defense.

``(e) Transfer of Operating Agreements.--A contractor under an
operating agreement may transfer the agreement (including all rights and
obligations under the agreement) to any person that is eligible to enter
into that operating agreement under this chapter, if the transfer is
approved by the Secretary and the Secretary of Defense.
``(f) Replacement Vessel.--A contractor may replace a vessel under
an operating agreement with another vessel that is eligible to be
included in the Fleet under section 53102(b), if the Secretary, in
conjunction with the Secretary of Defense, approve replacement of the
vessel.

``Sec. 53106. Payments

``(a) Annual payment.--
``(1) In general.--The Secretary, subject to the
availability of appropriations and the other provisions of this
section, shall pay to the contractor for an operating agreement,
for each vessel that is covered by the operating agreement, an
amount equal to--
``(A) $2,600,000 for each of fiscal years 2006,
2007, and 2008;
``(B) $2,900,000, for each of fiscal years 2009,
2010, and 2011; and
``(C) $3,100,000 for each fiscal years 2012, 2013,
2014, and 2015.
``(2) Timing.--The amount shall be paid in equal monthly
installments at the end of each month. The amount shall not be
reduced except as provided by this section.

``(b) Certification Required for Payment.--As a condition of
receiving payment under this section for a fiscal year for a vessel, the
contractor for the vessel shall certify, in accordance with regulations
issued by the Secretary, that the vessel has been and will be operated
in accordance with section 53105(a)(1) for at least 320 days in the
fiscal year. Days during which the vessel is drydocked, surveyed,
inspected, or repaired shall be considered days of operation for
purposes of this subsection.
``(c) General Limitations.--The Secretary of Transportation shall
not make any payment under this chapter for a vessel with respect to any
days for which the vessel is--
``(1) under a charter to the United States Government, other
than a charter pursuant to an Emergency Preparedness Agreement
under section 53107;

[[Page 1814]]
117 STAT. 1814

``(2) not operated or maintained in accordance with an
operating agreement under this chapter; or
``(3) more than--
``(A) 25 years of age, except as provided in
subparagraph (B) or (C);
``(B) 20 years of age, in the case of a tank vessel;
or
``(C) 30 years of age, in the case of a LASH vessel.

``(d) Reductions in Payments.--With respect to payments under this
chapter for a vessel covered by an operating agreement, the Secretary--
``(1) except as provided in paragraph (2), shall not reduce
any payment for the operation of the vessel to carry military or
other preference cargoes under section 2631 of title 10, United
States Code, the Act of March 26, 1934 (46 U.S.C. App. 1241-1),
section 901(a), 901(b), or 901b of the Merchant Marine Act, 1936
(46 U.S.C. App. 1241(a), 1241(b), or 1241f), or any other cargo
preference law of the United States;
``(2) shall not make any payment for any day that the vessel
is engaged in transporting more than 7,500 tons of civilian bulk
preference cargoes pursuant to section 901(a), 901(b), or 901b
of the Merchant Marine Act, 1936 (46 U.S.C. App. 1241(a),
1241(b), or 1241f), that is bulk cargo; and
``(3) shall make a pro rata reduction in payment for each
day less than 320 in a fiscal year that the vessel is not
operated in accordance with section 53105(a)(1), with days
during which the vessel is drydocked or undergoing survey,
inspection, or repair considered to be days on which the vessel
is operated.

``(e) Limitation Regarding Noncontiguous Domestic Trade.--
``(1) In general.--No contractor shall receive payments
pursuant to this chapter during a period in which it
participates in noncontiguous domestic trade.
``(2) Limitation on Application.--Paragraph (1) shall not
apply to any person that is a citizen of the United States
within the meaning of section 2(c) of the Shipping Act, 1916 (46
U.S.C. App. 802(c)).
``(3) Participates in a noncontiguous domestic trade
defined.--In this subsection the term `participates in a
noncontiguous domestic trade' means directly or indirectly owns,
charters, or operates a vessel engaged in transportation of
cargo between a point in the contiguous 48 States and a point in
Alaska, Hawaii, or Puerto Rico, other than a point in Alaska
north of the Arctic Circle.

``Sec. 53107. National security requirements

``(a) Emergency Preparedness Agreement Required.--The Secretary
shall establish an Emergency Preparedness Program under this section
that is approved by the Secretary of Defense. Under the program, the
Secretary, in conjunction with the Secretary of Defense, shall include
in each operating agreement under this chapter a requirement that the
contractor enter into an Emergency Preparedness Agreement under this
section with the Secretary. The Secretary shall negotiate and enter into
an Emergency Preparedness Agreement with each contractor as promptly as
practicable after the contractor has entered into an operating agreement
under this chapter.

[[Page 1815]]
117 STAT. 1815

``(b) Terms of Agreement.--
``(1) In general.--An Emergency Preparedness Agreement under
this section shall require that upon a request by the Secretary
of Defense during time of war or national emergency, or whenever
determined by the Secretary of Defense to be necessary for
national security or contingency operation (as that term is
defined in section 101 of title 10, United States Code), a
contractor for a vessel covered by an operating agreement under
this chapter shall make available commercial transportation
resources (including services).
``(2) Basic terms.--(A) The basic terms of the Emergency
Preparedness Agreement shall be established (subject to
subparagraph (B)) by the Secretary and the Secretary of Defense.
``(B) In any Emergency Preparedness Agreement, the Secretary
and a contractor may agree to additional or modifying terms
appropriate to the contractor's circumstances if those terms
have been approved by the Secretary of Defense.

``(c) Participation After Expiration of Operating Agreement.--Except
as provided by section 53105(d), the Secretary may not require, through
an Emergency Preparedness Agreement or operating agreement, that a
contractor continue to participate in an Emergency Preparedness
Agreement after the operating agreement with the contractor has expired
according to its terms or is otherwise no longer in effect. After
expiration of an Emergency Preparedness Agreement, a contractor may
volunteer to continue to participate in such an agreement.
``(d) Resources Made Available.--The commercial transportation
resources to be made available under an Emergency Preparedness Agreement
shall include vessels or capacity in vessels, intermodal systems and
equipment, terminal facilities, intermodal and management services, and
other related services, or any agreed portion of such nonvessel
resources for activation as the Secretary of Defense may determine to be
necessary, seeking to minimize disruption of the contractor's service to
commercial shippers.
``(e) Compensation.--
``(1) In general.--The Secretary shall include in each
Emergency Preparedness Agreement provisions approved by the
Secretary of Defense under which the Secretary of Defense shall
pay fair and reasonable compensation for all commercial
transportation resources provided pursuant to this section.
``(2) Specific requirements.--Compensation under this
subsection--
``(A) shall not be less than the contractor's
commercial market charges for like transportation
resources;
``(B) shall be fair and reasonable considering all
circumstances;
``(C) shall be provided from the time that a vessel
or resource is required by the Secretary of Defense
until the time that it is redelivered to the contractor
and is available to reenter commercial service; and
``(D) shall be in addition to and shall not in any
way reflect amounts payable under section 53106.

``(f) Temporary Replacement Vessels.--Notwithstanding section 2631
of title 10, United States Code, the Act of March 26, 1934 (46 U.S.C.
App. 1241-1), section 901(a), 901(b), or 901b of

[[Page 1816]]
117 STAT. 1816

the Merchant Marine Act, 1936 (46 U.S.C. App. 1241(a), 1241(b), or
1241f), or any other cargo preference law of the United States--
``(1) a contractor may operate or employ in foreign commerce
a foreign-flag vessel or foreign-flag vessel capacity as a
temporary replacement for a United States-documented vessel or
United States-documented vessel capacity that is activated by
the Secretary of Defense under an Emergency Preparedness
Agreement or under a primary Department of Defense-approved
sealift readiness program; and
``(2) such replacement vessel or vessel capacity shall be
eligible during the replacement period to transport preference
cargoes subject to section 2631 of title 10, United States Code,
the Act of March 26, 1934 (46 U.S.C. App. 1241-1), and sections
901(a), 901(b), and 901b of the Merchant Marine Act, 1936 (46
U.S.C. App. 1241(a), 1241(b), and 1241b) to the same extent as
the eligibility of the vessel or vessel capacity replaced.

``(g) Redelivery and Liability of United States for Damages.--
``(1) In general.--All commercial transportation resources
activated under an Emergency Preparedness Agreement shall, upon
termination of the period of activation, be redelivered to the
contractor in the same good order and condition as when
received, less ordinary wear and tear, or the Secretary of
Defense shall fully compensate the contractor for any necessary
repair or replacement.
``(2) Limitation on liability of u.s.--Except as may be
expressly agreed to in an Emergency Preparedness Agreement, or
as otherwise provided by law, the Government shall not be liable
for disruption of a contractor's commercial business or other
consequential damages to a contractor arising from activation of
commercial transportation resources under an Emergency
Preparedness Agreement.

``Sec. 53108. Regulatory relief

``(a) Operation in Foreign Commerce.--A contractor for a vessel
included in an operating agreement under this chapter may operate the
vessel in the foreign commerce of the United States without restriction.
``(b) Other Restrictions.--The restrictions of section 901(b)(1) of
the Merchant Marine Act, 1936 (46 U.S.C. App. 1241(b)(1)) concerning the
building, rebuilding, or documentation of a vessel in a foreign country
shall not apply to a vessel for any day the operator of that vessel is
receiving payments for operation of that vessel under an operating
agreement under this chapter.
``(c) Telecommunications Equipment.--The telecommunications and
other electronic equipment on an existing vessel that is redocumented
under the laws of the United States for operation under an operating
agreement under this chapter shall be deemed to satisfy all Federal
Communications Commission equipment certification requirements, if--
``(1) such equipment complies with all applicable
international agreements and associated guidelines as determined
by the country in which the vessel was documented immediately
before becoming documented under the laws of the United States;

[[Page 1817]]
117 STAT. 1817

``(2) that country has not been identified by the Secretary
as inadequately enforcing international regulations as to that
vessel; and
``(3) at the end of its useful life, such equipment will be
replaced with equipment that meets Federal Communications
Commission equipment certification standards.

``Sec. 53109. Special rule regarding age of participating fleet vessel

``Any age restriction under section 53102(b)(3) or 53106(c)(3) shall
not apply to a participating fleet vessel during the 30-month period
beginning on the date the vessel begins operating under an operating
agreement under this title, if the Secretary determines that the
contractor for the vessel has entered into an arrangement to obtain and
operate under the operating agreement for the participating fleet vessel
a replacement vessel that, upon commencement of such operation, will be
eligible to be included in the Fleet under section 53102(b).

``Sec. 53110. Regulations

``The Secretary and the Secretary of Defense may each prescribe
rules as necessary to carry out their respective responsibilities under
this chapter.

``Sec. 53111. Authorization of appropriations

``There are authorized to be appropriated for payments under section
53106, to remain available until expended--
``(1) $156,000,000 for each of fiscal years 2006, 2007, and
2008;
``(2) $174,000,000 for each of fiscal years 2009, 2010, and
2011; and
``(3) $186,000,000 for each fiscal year thereafter through
fiscal year 2015.''.

(b) Conforming Amendment.--The table of subtitles at the beginning
of title 46, United States Code, is amended by inserting before the item
relating to chapter VI the following:

``V. MERCHANT MARINE........................................... 53101''.

SEC. 3532. RELATED AMENDMENTS TO EXISTING LAW.

(a) Amendment to Shipping Act, 1916.--Section 9 of the Shipping Act,
1916 (46 U.S.C. App. 808) is amended--
(1) by redesignating subsection (e), as added by section
1136(b) of Public Law 104-324 (110 Stat. 3987), as subsection
(f); and
(2) by amending subsection (e), as added by section 6 of
Public Law 104-239 (110 Stat. 3132), to read as follows:

``(e) Notwithstanding subsection (c)(2), the Merchant Marine Act,
1936, or any contract entered into with the Secretary of Transportation
under that Act, a vessel may be placed under a foreign registry, without
approval of the Secretary, if--
``(1)(A) the Secretary, in conjunction with the Secretary of
Defense, determines that at least one replacement vessel of
equal or greater military capability and of a capacity that is
equivalent or greater, as measured by deadweight tons, gross
tons, or container equivalent units, as appropriate, is
documented under chapter 121 of title 46, United States Code,

[[Page 1818]]
117 STAT. 1818

by the owner of the vessel placed under the foreign registry;
and
``(B) the replacement vessel is not more than 10 years of
age on the date of that documentation; or
``(2) an operating agreement covering the vessel under
chapter 531 of title 46, United States Code, has expired.''.

(b) [NOTE: 46 USC app. 1162.] Merchant Marine Act, 1936.--Section
512 of the Merchant Marine Act, 1936 (46 U.S.C. 1162) is amended--
(1) by striking ``Notwithstanding'' and inserting ``(a)
Except as provided in subsection (b), notwithstanding''; and
(2) by adding at the end the following:

``(b)(1) Except as provided in paragraph (2), the restrictions and
requirements of section 506 shall terminate upon the expiration of the
20-year period beginning on the date of the original delivery of the
vessel from the shipyard for operation of a vessel in any domestic trade
in which it has operated at any time since 1996.
``(2) Paragraph (1) shall not affect any requirement to make
payments under section 506.''.

SEC. 3533. [NOTE: 46 USC 53110 note.] INTERIM RULES.

The Secretary of Transportation and the Secretary of Defense may
each prescribe interim rules necessary to carry out their respective
responsibilities under this subtitle and the amendments made by this
subtitle. For this purpose, the Secretaries are excepted from compliance
with the notice and comment requirements of section 553 of title 5,
United States Code. All interim rules prescribed under the authority of
this section that are not earlier superseded by final rules shall expire
no later than 270 days after the effective date of this subtitle.

SEC. 3534. REPEALS AND CONFORMING AMENDMENTS.

(a) Repeals.--The following provisions are repealed:
(1) [NOTE: 46 USC app. 1187-1187e.] Subtitle B of title VI
of the Merchant Marine Act, 1936 (46 U.S.C. App. 1187 et seq.).
(2) Section 804 of the Merchant Marine Act, 1936 (46 U.S.C.
App. 1222).

(b) Conforming Amendments.--
(1) Section 12102(d)(4) of title 46, United States Code, is
amended by inserting ``or chapter 531 of title 46, United States
Code'' after ``Merchant Marine Act, 1936''.
(2) Section 1137 of Public Law 104-324 (46 U.S.C. App. 1187
note) is amended by striking ``section 651(b) of the Merchant
Marine Act, 1936'' and inserting ``section 53102(b) of title 46,
United States Code''.

SEC. 3535. GAO STUDY OF ADJUSTMENT OF OPERATING AGREEMENT PAYMENT
CRITERIA.

(a) In General.--The Comptroller General of the United States shall
conduct a study of the potential impact of amending section 53106 of
title 46, United States Code, as amended by this Act--
(1) to increase or decrease the 7,500 ton limitation;
(2) to apply the limitation to bagged cargo as well as bulk
cargo; and
(3) to so modify the tonnage limitation and apply it to
bagged cargo as well as bulk cargo.

(b) Matters To Be Addressed.--

[[Page 1819]]
117 STAT. 1819

(1) Specific impacts.--As part of the study required by
subsection (a), the Comptroller General shall address, in
particular, the impact of such amendments on--
(A) the Maritime Security Fleet established under
chapter 531 of title 46, United States Code, as amended
by this Act;
(B) the civilian bulk cargo preference program under
section 901(a), 901(b), or 901b of such Act (46 U.S.C.
App. 1241(a), 1241(b), and 1241f); and
(C) operations of vessels under sections 901a
through 901k of such Act (46 U.S.C. App. 1241e through
1241o, the Food for Peace Act of 1966 (7 U.S.C.
1707a(b)(8)), or any other statute in pari materia.
(2) Certain aspects.--In carrying out paragraph (1), the
Comptroller General shall consider, among other matters--
(A) increased or decreased costs to the overall
cargo preference program, including transportation costs
(for both land and water transportation);
(B) effects on ports;
(C) the number of shipments that would be affected;
(D) increased or decreased administrative and
compliance burdens for carriers and Federal agencies;
and
(E) increases or decreases in the number of United
States-flag operators participating in the cargo
preference program.
(3) Balancing benefits.--In the study, the Comptroller
General shall also address whether and how such amendments could
result in achieving an appropriate balance of benefits between
participants in the Maritime Security Fleet program and
participants in the cargo preference program.

(c) Report.--The Comptroller General shall transmit a report of the
study, including findings, conclusions, and recommendations (including
legislative recommendations, if any), to the Committee on Armed Services
of the House of Representatives and the Committee on Armed Services and
the Committee on Commerce, Science, and Transportation of the Senate
within 9 months after the date of the enactment of this Act.
(d) Authority.--In order to conduct the study required by subsection
(a), the Comptroller General, or any of the Comptroller General's duly
authorized representatives, shall have access to any books, accounts,
documents, papers, and records that relate to the information required
to complete the study of owners or operators of vessels--
(1) under operating agreements under subtitle B of title VI
of the Merchant Marine Act, 1936 (46 U.S.C. App. 651 et seq.) or
chapter 531 of title 46, United States Code, as amended by this
Act; and
(2) that accept bulk cargo subject to the cargo preference
laws of the United States.

SEC. 3536. DEFINITIONS.

In this subtitle, the definitions set forth in section 53101 of
title 46, United States Code, as amended by this Act, shall apply.

SEC. 3537. [NOTE: 46 USC 53101 note.] EFFECTIVE DATES.

(a) In General.--Except as provided in subsections (b) and (c), this
subtitle shall take effect October 1, 2004.

[[Page 1820]]
117 STAT. 1820

(b) Repeals and Conforming Amendments.--Section 3534 shall take
effect October 1, 2005.
(c) Other Provisions.--Sections 3533, 3535, and this section shall
take effect on the date of the enactment of this Act.

Subtitle D--National Defense Tank Vessel Construction Assistance

SEC. 3541. [NOTE: 46 USC 53101 note.] NATIONAL DEFENSE TANK VESSEL
CONSTRUCTION PROGRAM.

The Secretary of [NOTE: Establishment.] Transportation shall
establish a program for the provision of financial assistance for the
construction in the United States of a fleet of up to 5 privately owned
product tank vessels--
(1) to be operated in commercial service in foreign
commerce; and
(2) to be available for national defense purposes in time of
war or national emergency pursuant to an Emergency Preparedness
Plan approved by the Secretary of Defense pursuant to section
3543(e).

SEC. 3542. [NOTE: 46 USC 53101 note.] APPLICATION PROCEDURE.

(a) Request for Proposals.--Within 90 days after the date of the
enactment of this subtitle, and on an as-needed basis thereafter, the
Secretary, in consultation with the Secretary of Defense, shall publish
in the Federal Register a request for competitive proposals for the
construction of new product tank vessels necessary to meet the
commercial and national security needs of the United States and to be
built with assistance under this subtitle.
(b) Qualification.--Any citizen of the United States or any shipyard
in the United States may submit a proposal to the Secretary of
Transportation for purposes of constructing a product tank vessel with
assistance under this subtitle.
(c) Requirement.--The Secretary, with the concurrence of the
Secretary of Defense, may enter into an agreement with the submitter of
a proposal for assistance under this subtitle if the Secretary
determines that--
(1) the plans and specifications call for construction of a
new product tank vessel of not less than 35,000 deadweight tons
and not greater than 60,000 deadweight tons, that--
(A) will meet the requirements of foreign commerce;
(B) is capable of carrying militarily useful
petroleum products, and will be suitable for national
defense or military purposes in time of war, national
emergency, or other military contingency; and
(C) will meet the construction standards necessary
to be documented under the laws of the United States;
(2) the shipyard in which the vessel will be constructed has
the necessary capacity and expertise to successfully construct
the proposed number and type of product tank vessels in a
reasonable period of time as determined by the Secretary of
Transportation, taking into consideration the recent prior
commercial shipbuilding history of the proposed shipyard in
delivering a vessel or series of vessels on time and in
accordance with the contract price and specifications; and

[[Page 1821]]
117 STAT. 1821

(3) the person proposed to be the operator of the proposed
vessel possesses the ability, experience, financial resources,
and any other qualifications determined to be necessary by the
Secretary for the operation and maintenance of the vessel.

(d) Priority.--The Secretary--
(1) subject to paragraph (2), shall give priority
consideration to a proposal submitted by a person that is a
citizen of the United States under section 2 of the Shipping
Act, 1916 (46 U.S.C. App. 802); and
(2) may give priority to consideration of proposals that
provide the best value to the Government, taking into
consideration--
(A) the costs of vessel construction; and
(B) the commercial and national security needs of
the United States.

SEC. 3543. [NOTE: 46 USC 53101 note.] AWARD OF ASSISTANCE.

(a) In General.--If after review of a proposal, the Secretary
determines that the proposal fulfills the requirements under this
subtitle, the Secretary may enter into a contract with the proposed
purchaser and the proposed shipyard for the construction of a product
tank vessel with assistance under this subtitle.
(b) Amount of Assistance.--The contract shall provide that the
Secretary shall pay, subject to the availability of appropriations, up
to 75 percent of the actual construction cost of the vessel, but in no
case more than $50,000,000 per vessel.
(c) Construction in United States.--A contract under this section
shall require that construction of a vessel with assistance under this
subtitle shall be performed in a shipyard in the United States.
(d) Documentation of Vessel.--
(1) Contract requirement.--A contract under this section
shall require that, upon delivery of a vessel constructed with
assistance under the contract, the vessel shall be documented
under chapter 121 of title 46, United States Code, with a
registry endorsement only.
(2) Restriction on coastwise endorsement.--A vessel
constructed with assistance under this subtitle shall not be
eligible for a certificate of documentation with a coastwise
endorsement.
(3) Authority to reflag not applicable.--Section 9(g) of the
Shipping Act, 1916, (46 U.S.C. App. 808(g)) shall not apply to a
vessel constructed with assistance under this subtitle.

(e) Emergency Preparedness Agreement.--
(1) In general.--A contract under this section shall require
that the person who will be the operator of a vessel constructed
with assistance under the contract shall enter into an Emergency
Preparedness Agreement for the vessel under section 53107 of
title 46, United States Code, as amended by this Act.
(2) Treatment as contractor.--For purposes of the
application, under paragraph (1), of section 53107 of title 46,
United States Code, to a vessel constructed with assistance
under this subtitle, the term ``contractor'' as used in that
section means the person who will be the operator of a vessel
constructed with assistance under this subtitle.

[[Page1822]]
117 STAT. 1822

(f) Additional Terms.--The Secretary shall incorporate in the
contract the requirements set forth in this subtitle, and may
incorporate in the contract any additional terms the Secretary considers
necessary.

SEC. 3544. [NOTE: 46 USC 53101 note.] PRIORITY FOR TITLE XI
ASSISTANCE.

Section 1103 of the Merchant Marine Act, 1936 (46 U.S.C. App. 1273)
is amended by adding at the end the following:
``(i) Priority.--In guaranteeing and entering commitments to
guarantee under this section, the Secretary shall give priority to
guarantees and commitments for vessels that are otherwise eligible for a
guarantee under this section and that are constructed with assistance
under subtitle D of the Maritime Security Act of 2003.''.

SEC. 3545. [NOTE: 46 USC 53101 note.] DEFINITIONS.

In this subtitle the definitions set forth in section 53101 of title
46, United States Code, as amended by this Act, shall apply.

SEC. 3546. [NOTE: 46 USC 53101 note.] AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated to the Secretary to carry
out this subtitle a total of $250,000,000 for fiscal years after fiscal
year 2004.

TITLE [NOTE: Nuclear Security Initiative Act of 2003.] XXXVI--NUCLEAR
SECURITY INITIATIVE

Sec. 3601. Short title.

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

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

Subtitle B--Relations Between the United States and Russia

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

Subtitle C--Other Matters

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

SEC. 3601. [NOTE: 22 USC 5951 note.] SHORT TITLE.

This title may be cited as the ``Nuclear Security Initiative Act of
2003''.

[[Page 1823]]
117 STAT. 1823

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

SEC. 3611. MANAGEMENT ASSESSMENT OF DEPARTMENT OF DEFENSE AND DEPARTMENT
OF ENERGY THREAT REDUCTION AND NONPROLIFERATION PROGRAMS.

(a) GAO Assessment Required.--The Comptroller General shall carry
out an assessment of the management of the threat reduction and
nonproliferation programs of the Department of Defense and the
Department of Energy. The matters assessed shall include--
(1) the effectiveness of the overall strategy used for
managing such programs;
(2) the basis used to allocate the missions of such programs
among the executive departments and agencies;
(3) the criteria used to assess the effectiveness of such
programs;
(4) the strategy and process used to establish priorities
for activities carried out under such programs, including the
analysis of risks and benefits used in determining how best to
allocate the funds made available for such programs;
(5) the mechanisms used to coordinate the activities carried
out under such programs by the executive departments and
agencies so as to ensure efficient execution and avoid
duplication of effort; and
(6) the management controls used in carrying out such
programs and the effect of such controls on the execution of
such programs.

(b) Considerations.--In carrying out the assessment required by
subsection (a), the Comptroller General shall take into account--
(1) the national security interests of the United States;
and
(2) the need for accountability in expenditure of funds by
the United States.

(c) [NOTE: Deadline.] Report.--Not later than May 1, 2004, the
Comptroller General shall submit a report on the assessment required by
subsection (a) to the Committee on Armed Services of the House of
Representatives and the Committee on Armed Services of the Senate.

(d) Definitions.--In this section:
(1) The term ``threat reduction and nonproliferation
programs of the Department of Defense and the Department of
Energy'' means--
(A) the programs specified in section 1501(b) of the
National Defense Authorization Act for Fiscal Year 1997
(Public Law 104-201; 110 Stat. 2731; 50 U.S.C. 2362
note); and
(B) any programs for which funds are made available
under the defense nuclear nonproliferation account of
the Department of Energy.
(2) The term ``management controls'' means any accounting,
oversight, or other measure intended to ensure that programs are
executed consistent with--
(A) programmatic objectives as stated in budget
justification materials submitted to Congress (as
submitted

[[Page 1824]]
117 STAT. 1824

with the budget of the President under section 1105(a)
of title 31, United States Code); and
(B) any restrictions related to such objectives as
are imposed by law.

Subtitle B--Relations Between the United States and Russia

SEC. 3621. [NOTE: 22 USC 5959 note.] COMPREHENSIVE INVENTORY OF
RUSSIAN TACTICAL NUCLEAR WEAPONS.

(a) Sense of Congress.--It is the sense of Congress that the United
States should, to the extent the President considers prudent, seek to
work with the Russian Federation to develop a comprehensive inventory of
Russian tactical nuclear weapons.
(b) Report.--Not [NOTE: Deadline.] later than 12 months after the
date of the enactment of this Act, the President shall submit to
Congress a report, in both classified and unclassified form as
necessary, describing the progress that has been made toward creating
such an inventory.

SEC. 3622. [NOTE: 22 USC 5951 note.] ESTABLISHMENT OF
INTERPARLIAMENTARY THREAT REDUCTION WORKING GROUP.

(a) Establishment of Working Group.--There is hereby established a
working group to be known as the ``Threat Reduction Working Group'' as
an interparliamentary group of the Congress of the United States and the
legislature of the Russian Federation.
(b) Purpose of Working Group.--The purpose of the working group
established by subsection (a) shall be to explore means to enhance
cooperation between the United States and the Russian Federation with
respect to nuclear nonproliferation and security and such other issues
related to reducing the dangers of weapons of mass destruction as the
members of the working group consider appropriate.
(c) Membership.--(1) The majority leader of the Senate, after
consultation with the minority leader of the Senate, shall appoint not
more than 10 Senators to the working group established by subsection
(a).
(2) The Speaker of the House of Representatives, after consultation
with the minority leader of the House of Representatives, shall appoint
not more than 30 Members of the House to the working group.

SEC. 3623. [NOTE: 22 USC 1928 note.] SENSE OF CONGRESS ON COOPERATION
BY UNITED STATES AND NATO WITH RUSSIA ON BALLISTIC MISSILE
DEFENSES.

(a) Sense of Congress.--It is the sense of Congress that the
President should, in conjunction with the North Atlantic Treaty
Organization, encourage appropriate cooperative relationships between
the Russian Federation and the United States and North Atlantic Treaty
Organization with respect to the development and deployment of ballistic
missile defenses.
(b) Report to [NOTE: Deadline.] Congress.--Not later than one year
after the date of the enactment of this Act, the Secretary of Defense
shall transmit to the Committee on Armed Services of the Senate and the
Committee on Armed Services of the House of Representatives a report (in
unclassified or classified form as necessary) on the

[[Page 1825]]
117 STAT. 1825

feasibility of increasing cooperation between the Russian Federation and
the United States and the North Atlantic Treaty Organization on the
subject of ballistic missile defense. The report shall include--
(1) the recommendations of the Secretary;
(2) a description of the threat such cooperation is intended
to address; and
(3) an assessment of possible benefits to ballistic missile
defense programs of the United States.

SEC. 3624. SENSE OF CONGRESS ON ENHANCED COLLABORATION TO ACHIEVE MORE
RELIABLE RUSSIAN EARLY WARNING SYSTEMS.

It is the sense of Congress that the President, to the extent
consistent with the national security interests of the United States,
should--
(1) encourage joint efforts by the United States and the
Russian Federation to reduce the probability of accidental
nuclear attack as a result of misinformation or miscalculation
by developing the capabilities and increasing the reliability of
Russian ballistic missile early-warning systems;
(2) encourage the development of joint programs by the
United States and the Russian Federation to ensure that the
Russian Federation has reliable information regarding launches
of ballistic missiles anywhere in the world; and
(3) pending the execution of a new agreement between the
United States and the Russian Federation providing for the
conduct of the Russian-American Observation Satellite (RAMOS)
program, ensure that funds appropriated for that program for
fiscal year 2004 are obligated and expended in a manner that
provides for the satisfactory continuation of that program.

Subtitle C--Other Matters

SEC. 3631. [NOTE: 22 USC 6321 note.] PROMOTION OF DISCUSSIONS ON
NUCLEAR AND RADIOLOGICAL SECURITY AND SAFETY BETWEEN THE
INTERNATIONAL ATOMIC ENERGY AGENCY AND THE ORGANIZATION FOR
ECONOMIC COOPERATION AND DEVELOPMENT.

(a) Sense of Congress Regarding Initiation of Dialogue Between the
IAEA and the OECD.--It is the sense of Congress that--
(1) the United States should seek to initiate discussions
between the International Atomic Energy Agency and the
Organization for Economic Cooperation and Development for the
purpose of exploring issues of nuclear and radiological security
and safety, including the creation of new sources of revenue
(including debt reduction) for states to provide nuclear
security; and
(2) the discussions referred to in paragraph (1) should also
provide a forum to explore possible sources of funds in support
of the G-8 Global Partnership Against the Spread of Weapons and
Materials of Mass Destruction.

(b) [NOTE: President. Deadline.] Contingent Report.--(1) Except as
provided in paragraph (2), the President shall, not later than 12 months
after the date of the enactment of this Act, submit to Congress a report
on--

[[Page 1826]]
117 STAT. 1826

(A) the efforts made by the United States to initiate the
discussions described in subsection (a);
(B) the results of those efforts; and
(C) any plans for further discussions and the purposes of
such discussions.

(2) Paragraph (1) shall not apply if no efforts referred to in
paragraph (1)(A) have been made.

Approved November 24, 2003.

LEGISLATIVE HISTORY--H.R. 1588 (S. 1047) (S. 1050):
---------------------------------------------------------------------------

HOUSE REPORTS: Nos. 108-106 and Pt. 2 (both from Comm. on Armed
Services) and 108-354 (Comm. of Conference).
SENATE REPORTS: No. 108-46 accompanying S. 1050 (Comm. on Armed
Services).
CONGRESSIONAL RECORD, Vol. 149 (2003):
May 21, 22, considered and passed House.
June 4, considered and passed Senate, amended.
Nov. 7, House agreed to conference report.
Nov. 12, Senate agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 39 (2003):
Nov. 24, Presidential remarks and statement.