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

                                     


                     NATIONAL DEFENSE AUTHORIZATION
                        ACT FOR FISCAL YEAR 2004

                               ----------                              

                           CONFERENCE REPORT

                              to accompany

                               H.R. 1588




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



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

                                     


                     NATIONAL DEFENSE AUTHORIZATION

                        ACT FOR FISCAL YEAR 2004

                               __________

                           CONFERENCE REPORT

                              to accompany

                               H.R. 1588




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


                            C O N T E N T S

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

              (sec.     )........................................   684
    Legislative Provisions Adopted...............................   685
        Subtitle A--Officer Personnel Policy.....................   685
            Standardization of qualifications for appointment as 
              service chief (sec. 501)...........................   685
            Eligibility for appointment as Chief of Army 
              Veterinary Corps (sec. 502)........................   685
            Repeal of required grade of defense attache in France 
              (sec. 503).........................................   685
            Repeal of termination provisions for certain 
              authorities relating to management of general and 
              flag officers in certain grades (sec. 504).........   685
            Retention of health professions officers to fulfill 
              active-duty service commitments following promotion 
              nonselection (sec. 505)............................   685
            Permanent authority to reduce three-year time-in-
              grade requirement for retirement in grade for 
              officers in grades above major and lieutenant 
              commander (sec. 506)...............................   686
            Contingent exclusion from officer strength and 
              distribution-in-grade limitations for officer 
              serving as Associate Director of Central 
              Intelligence for Military Support (sec. 507).......   686
            Reappointment of incumbent Chief of Naval Operations 
              (sec. 508).........................................   686
            Secretary of Defense approval required for practice 
              of wearing uniform insignia of higher grade known 
              as ``frocking'' (sec. 509).........................   686
        Subtitle B--Reserve Component Matters....................   687
            Streamlined process for continuation of officers on 
              the reserve active-status list (sec. 511)..........   687
            Consideration of reserve officers for position 
              vacancy promotions in time of war or national 
              emergency (sec. 512)...............................   687
            Authority for delegation of required secretarial 
              special findings for placement of certain retired 
              members in Ready Reserve (sec. 513)................   687
            Authority to provide expenses of Army and Air Staff 
              personnel and National Guard Bureau personnel 
              attending national conventions of certain military 
              associations (sec. 514)............................   688
            Expanded authority for use of Ready Reserve in 
              response to terrorism (sec. 515)...................   688
            National Guard officers on active duty in command of 
              National Guard units (sec. 516)....................   688
            Presidential report on mobilization of reserve 
              component personnel and Secretary of Defense 
              assessment (sec. 517)..............................   688
            Authority for the use of operation and maintenance 
              funds for promotional activities of the National 
              Committee for Employer Support of the Guard and 
              Reserve (sec. 518).................................   689
        Subtitle C--ROTC and Military Service Academies..........   689
            Expanded educational assistance authority for cadets 
              and midshipmen receiving ROTC scholarships (sec. 
              521)...............................................   689
            Increase in allocation of scholarships under Army 
              Reserve ROTC scholarship program to students at 
              military junior colleges (sec. 522)................   689
            Authority for nonscholarship senior ROTC sophomores 
              to voluntarily contract for and receive subsistence 
              allowance (sec. 523)...............................   690
            Appointments to military service academies from 
              nominations made by delegates from Guam, Virgin 
              Islands, and American Samoa (sec. 524).............   690
            Readmission to service academies of certain former 
              cadets and midshipmen (sec. 525)...................   690
            Defense task force on sexual harassment and violence 
              at the military service academies (sec. 526).......   690
            Actions to address sexual harassment and violence at 
              the service academies (sec. 527)...................   691
            Study and report related to permanent professors at 
              the United States Air Force Academy (sec. 528).....   691
            Dean of the Faculty of the United States Air Force 
              Academy (sec. 529).................................   691
        Subtitle D--Other Education and Training Matters.........   691
            Authority for the Marine Corps University to award 
              the degree of master of operational studies. (sec. 
              531)...............................................   692
            Authorization for Naval Postgraduate School to 
              provide instruction to enlisted member 
              participating in certain programs (sec. 532).......   692
            Cost reimbursement requirements for personnel 
              receiving instruction at the Air Force Institute of 
              Technology (sec. 533)..............................   692
            Inclusion of accrued interest in amounts that may be 
              repaid under Selected Reserve critical specialties 
              education loan repayment program (sec. 534)........   692
            Funding of education assistance enlistment incentives 
              to facilitate national service through Department 
              of Defense Education Benefits Fund (sec. 535)......   693
            Assistance to local educational agencies that benefit 
              dependents of members of the Armed Forces and 
              Department of Defense civilian employees (sec. 536)   693
            Impact aid eligibility for heavily impacted local 
              educational agencies affected by privatization of 
              military housing (sec. 537)........................   693
        Subtitle E--Administrative Matters.......................   693
            High-tempo personnel management and allowance (sec. 
              541)...............................................   693
            Enhanced retention of accumulated leave for high-
              deployment members (sec. 542)......................   694
            Standardization of statutory authorities for 
              exemptions from requirement for access to secondary 
              schools by military recruiters (sec. 543)..........   694
            Procedures for consideration of applications for 
              award of the Purple Heart medal to veterans held as 
              prisoners of war before April 25, 1962 (sec. 544)..   694
            Authority for reserve and retired regular officers to 
              hold state and local office notwithstanding call to 
              active duty (sec. 545).............................   695
            Policy on public identification of casualties (sec. 
              546)...............................................   695
            Space personnel career fields (sec. 547).............   695
            Department of Defense joint advertising, market 
              research, and studies program (sec. 548)...........   696
            Limitation on aviation force structure changes in the 
              department of the Navy (sec. 549)..................   696
        Subtitle F--Military Justice Matters.....................   696
            Extended limitation period for prosecution of child 
              abuse cases in courts-martial (sec. 551)...........   696
            Clarification of blood alcohol content limit for the 
              offense under the Uniform Code of Military Justice 
              of drunken operation of a vehicle, aircraft, or 
              vessel (sec. 552)..................................   697
        Subtitle G--Benefits.....................................   697
            Additional classes of individuals eligible to 
              participate in the federal long-term care insurance 
              program (sec. 561).................................   697
            Authority to transport remains of retirees and 
              retiree dependents who die in military treatment 
              facilities (sec. 562)..............................   697
            Eligibility for dependents of certain mobilized 
              reservists stationed overseas to attend Defense 
              Dependents Schools overseas (sec. 563).............   697
        Subtitle H--Domestic Violence............................   698
            Travel and transportation for dependents relocating 
              for reasons of personal safety (sec. 571)..........   698
            Commencement and duration of payment of transitional 
              compensation (sec. 572)............................   698
            Exceptional eligibility for transitional compensation 
              (sec. 573).........................................   698
            Types of administrative separations triggering 
              coverage (sec. 574)................................   698
            Comptroller General review and report (sec. 575).....   699
            Fatality reviews (sec. 576)..........................   699
            Sense of Congress (sec. 577).........................   699
        Subtitle I--Other Matters................................   699
            Recognition of military families (sec. 581)..........   699
            Permanent authority for support for certain chaplain-
              led military family support programs (sec. 582)....   700
            Department of Defense-Department of Veterans Affairs 
              Joint Executive Committee (sec. 583)...............   700
            Review of the 1991 death of Marine Corps Colonel 
              James E. Sabow (sec. 584)..........................   700
            Policy on concurrent deployment to combat zones of 
              both military spouses of military families with 
              minor children (sec. 585)..........................   700
            Congressional notification of amendment or 
              cancellation of Department of Defense directive 
              relating to reasonable access to military 
              installations for certain personal commercial 
              solicitation (sec. 586)............................   701
            Study of National Guard Challenge Program (sec. 587).   701
            Findings and sense of Congress on reward for 
              information leading to resolution of status of 
              members of the armed forces who remain unaccounted 
              for (sec. 588).....................................   701
    Legislative Provisions Not Adopted...........................   702
            Alternate initial military service obligation for 
              persons accessed under direct entry program........   702
            Enhancement of voting rights of members of the 
              uniformed services.................................   702
            Increased flexibility for management of senior level 
              education and post-education assignments...........   702
            Repeal of prohibition on transfer between line of the 
              Navy and Navy staff corps applicable to regular 
              Navy officers in grades above lieutenant commander.   702
            Simplification of determination of annual 
              participation for purposes of Ready Reserve 
              training requirements..............................   703
            Standardization of time-in-service requirements for 
              voluntary retirement of members of the Navy and 
              Marine Corps with Army and Air Force requirements..   703
Title VI--Compensation and Other Personnel Benefits..............   703
    Legislative Provisions Adopted...............................   703
        Subtitle A--Pay and Allowances...........................   703
            Increase in basic pay for fiscal year 2004 (sec. 601)   704
            Revised annual pay adjustment process (sec. 602).....   704
            Computation of basic pay rate for commissioned 
              officers with prior enlisted or warrant officer 
              service (sec. 603).................................   704
            Special subsistence allowance authorities for members 
              assigned to high-cost duty location or under other 
              unique and unusual circumstances (sec. 604)........   704
            Basic allowance for housing for each member married 
              to another member without dependents when both 
              spouses are on sea duty (sec. 605).................   704
            Temporary increase in authorized amount of family 
              separation allowance (sec. 606)....................   704
        Subtitle B--Bonuses and Special and Incentive Pays.......   705
            One-year extension of certain bonus and special pay 
              authorities for reserve forces (sec. 611)..........   705
            One-year extension of certain bonus and special pay 
              authorities for certain health care professionals 
              (sec. 612).........................................   705
            One-year extension of special pay and bonus 
              authorities for nuclear officers (sec. 613)........   705
            One-year extension of other bonus and special pay 
              authorities (sec. 614).............................   706
            Hazardous duty pay for duty involving ski-equipped 
              aircraft on Antarctica or the Arctic icepack (sec. 
              615)...............................................   706
            Special pay for reserve officers holding positions of 
              unusual responsibility and of critical nature (sec. 
              616)...............................................   706
            Payment of Selected Reserve reenlistment bonus to 
              members of Selected Reserve who are mobilized (sec. 
              617)...............................................   706
            Availability of hostile fire and imminent danger 
              special pay for reserve component members on 
              inactive duty (sec. 618)...........................   706
            Temporary increase in authorized amount of hostile 
              fire and imminent danger special pay (sec. 619)....   707
            Retroactive payment of hostile fire or imminent 
              danger pay for service in eastern Mediterranean Sea 
              in Operation Iraqi Freedom (sec. 620)..............   707
            Expansion of overseas tour extension incentive 
              program to officers (sec. 621).....................   707
            Repeal of congressional notification requirement for 
              designation of critical military skills for 
              retention bonus (sec. 622).........................   707
            Eligibility of warrant officers for accession bonus 
              for new officers in critical skills (sec. 623).....   707
            Special pay for service as member of weapons of mass 
              destruction civil support team (sec. 624)..........   708
            Incentive bonus for conversion to military 
              occupational specialty to ease personnel shortage 
              (sec. 625).........................................   708
            Bonus for reenlistment during service on active duty 
              in Afghanistan, Iraq, or Kuwait (sec. 626).........   708
        Subtitle C--Travel and Transportation Allowances.........   708
            Shipment of privately owned motor vehicle within 
              continental United States (sec. 631)...............   708
            Transportation of dependents to presence of members 
              of the armed forces retired for illness or injury 
              incurred in active duty (sec. 632).................   709
            Payment or reimbursement of student baggage storage 
              costs for dependent children of members stationed 
              overseas (sec. 633)................................   709
            Contracts for full replacement value for loss or 
              damage to personal property transported at 
              government expense (sec. 634)......................   709
            Payment of lodging expenses of members during 
              authorized leave from temporary duty location (sec. 
              635)...............................................   710
        Subtitle D--Retired Pay and Survivor Benefits............   710
            Phase-in of full concurrent receipt of military 
              retired pay and veterans' disability compensation 
              for certain military retirees (sec. 641)...........   710
            Special rule for computation of retired pay base for 
              commanders of combatant commands (sec. 643)........   711
            Survivor benefit plan annuities for surviving spouses 
              of reserves not eligible for retirement who die 
              from a cause incurred or aggravated while on 
              inactive-duty training (sec. 644)..................   711
            Survivor Benefit Plan modifications (sec. 645).......   711
            Increase in death gratuity payable with respect to 
              deceased members of the armed forces (sec. 646)....   711
        Subtitle E--Commissary and Nonappropriated Fund 
          Instrumentality Benefits...............................   712
            Expanded commissary access for selected reserve 
              members, reserve retirees under age 60, and their 
              dependents (sec. 651)..............................   712
            Defense commissary system and exchange stores system 
              (sec. 652).........................................   712
            Limitations on private operation of defense 
              commissary store functions (sec. 653)..............   712
            Use of appropriated funds to operate defense 
              commissary system (sec. 654).......................   712
            Recovery of non-appropriated fund instrumentality and 
              commissary store investments in real property at 
              military installations closed or realigned (sec. 
              655)...............................................   713
        Subtitle F--Other Matters................................   713
            Comptroller General report on adequacy of special 
              pays and allowances for frequently deployed members 
              (sec. 661).........................................   713
    Legislative Provisions Not Adopted...........................   713
            Assignment incentive pay for service in Korea........   713
            Availability of hostile fire and imminent danger pay 
              for reserve component members serving in response 
              to certain domestic terrorist attacks..............   714
            Commissary shelf-stocking pilot program..............   714
            Computation of hazardous duty incentive pay for 
              demolition duty and parachute jumping by members of 
              reserve components entitled to compensation under 
              section 206 of title 37............................   715
            Extension of requirement for exemplary conduct by 
              commanding officers and others in authority to 
              include civilians in authority in the Department of 
              Defense............................................   715
            Funding for special compensation authorities for 
              Department of Defense retirees.....................   715
            Increased maximum amount of reenlistment bonus for 
              active members.....................................   715
Title VII--Health Care Provisions................................   716
        Subtitle A--Enhanced Benefits for Reserves...............   716
            Medical and dental screening for members of Selected 
              Reserve units alerted for mobilization (sec. 701)..   716
            Coverage for ready reserve members under TRICARE 
              program (sec. 702-705).............................   716
            Limitation on fiscal year 2004 outlays for temporary 
              reserve health care programs (sec. 706)............   717
            TRICARE beneficiary counseling and assistance 
              coordinators for reserve component beneficiaries 
              (sec. 707).........................................   717
            Eligibility of reserve officers for health care 
              pending orders to active duty following 
              commissioning (sec. 708)...........................   717
        Subtitle B--Other Benefits Improvements..................   718
            Acceleration of implementation of chiropractic health 
              care for members on active duty (sec. 711).........   718
            Reimbursement of covered beneficiaries for certain 
              travel expenses relating to specialized dental care 
              (sec. 712).........................................   718
            Eligibility for continued health benefits coverage 
              extended to certain members of uniformed services 
              (sec. 713).........................................   718
            Authority for designated providers to enroll covered 
              beneficiaries with other primary health insurance 
              coverage (sec. 714)................................   718
        Subtitle C--Planning, Programming, and Management........   719
            Permanent extension of authority to enter into 
              personal services contracts for the performance of 
              health care responsibilities at locations other 
              than military medical treatment facilities (sec. 
              721)...............................................   719
            Department of Defense Medicare-eligible retiree 
              health care fund valuations and contributions (sec. 
              722)...............................................   719
            Surveys on continued viability of TRICARE Standard 
              (sec. 723).........................................   719
            Plan for providing health coverage information to 
              members, former members, and dependents eligible 
              for certain health benefits (sec. 724).............   720
            Transfer of certain members from pharmacy and 
              therapeutics committee to uniform formulary 
              beneficiary advisory panel under the pharmacy 
              benefits program (sec. 725)........................   720
            Working group on military health care for persons 
              reliant on health care facilities at military 
              installations to be closed or realigned (sec. 726).   720
            Joint program for development and evaluation of 
              integrated healing care practices for members of 
              the armed forces and veterans (sec. 727)...........   721
Title VIII--Acquisition Policy, Acquisition Management, and 
  Related Matters................................................   721
    Legislative Provisions Adopted...............................   721
        Subtitle A--Acquisition Policy and Management............   721
            Consolidation of contract requirements (sec. 801)....   721
            Quality control in procurement of aviation critical 
              safety items and related services (sec. 802).......   721
            Federal support for enhancement of State and local 
              anti-terrorism response capabilities (sec. 803)....   721
            Special temporary contract closeout authority (sec. 
              804)...............................................   722
            Competitive award of contracts for reconstruction 
              activities in Iraq (sec. 805)......................   722
        Subtitle B--United States Defense Industrial Base 
          Provisions.............................................   722
            Consistency with United States obligations under 
              international agreements (sec. 811)................   722
            Assessment of United States defense industrial base 
              capabilities (sec. 812)............................   723
            Identification of essential items: military system 
              breakout list (sec. 813)...........................   723
            Production capabilities improvement for certain 
              critical items using Defense Industrial Base 
              Capabilities Fund (sec. 814).......................   723
            Elimination of unreliable sources of defense items 
              and components (sec. 821)..........................   723
            Incentive program for major defense acquisition 
              programs to use machine tools and other capital 
              assets produced within the United States (sec. 822)   724
            Technical assistance relating to machine tools (sec. 
              823)...............................................   724
            Study of beryllium industrial base (sec. 824)........   724
            Exceptions to Berry amendment for contingency 
              operations and other urgent situations (sec. 826)..   724
            Inapplicability of Berry amendment to procurements of 
              waste and byproducts of cotton and wool fiber for 
              use in the production of propellants and explosives 
              (sec. 827).........................................   725
            Buy American exception for ball bearings and roller 
              bearings used in foreign products (sec. 828).......   725
        Subtitle C--Defense Acquisition and Support Workforce 
          Flexibility............................................   725
            Subtitle C--defense acquisition and support workforce 
              (secs. 831-836)....................................   725
        Subtitle D--Amendments to General Contracting 
          Authorities, Procedures, and Limitations...............   725
            Additional authorities relating to obtaining personal 
              services (sec. 841)................................   725
            Elimination of certain subcontract notification 
              requirements (sec. 842)............................   726
            Multiyear task and delivery order contracts (sec. 
              843)...............................................   726
            Elimination of requirement to furnish written 
              assurances of technical data conformity (sec. 844).   726
            Access to information relevant to items deployed 
              under rapid acquisition procedures (sec. 845)......   726
            Applicability of requirement for reports on maturity 
              of technology at initiation of major defense 
              acquisition programs (sec. 846)....................   727
            Certain weapons-related prototype projects (sec. 847)   727
            Limited acquisition authority for Commander of United 
              States Joint Forces Command (sec. 848).............   727
        Subtitle E--Acquisition-Related Reports and Other Matters   728
            Report on contract payments to small businesses (sec. 
              851)...............................................   728
            Contracting with employers of persons with 
              disabilities (sec. 852)............................   728
            Demonstration project for contractors employing 
              persons with disabilities (sec. 853)...............   728
    Legislative Provisions Not Adopted...........................   729
            Procurement of certain critical items from American 
              sources............................................   729
            Domestic source limitation for certain additional 
              items..............................................   729
            Requirements relating to buying commercial items 
              containing specialty metals from American sources..   729
            Congressional notification required before exercising 
              exception to requirement to buy specialty metals 
              from American sources..............................   729
            Repeal of authority for foreign procurement of para-
              aramid fibers and yarns............................   729
            Buy American enhancement.............................   730
            Requirement relating to purchases by Department of 
              Defense subject to Buy American Act................   730
            Definitions..........................................   730
            Applicability of Clinger-Cohen Act policies and 
              requirements to equipment integral to a weapon or 
              weapon system......................................   730
            Waiver authority for domestic source or content 
              requirements.......................................   731
            Application of indemnification authority to state and 
              local government contractors.......................   731
            Definitions..........................................   731
Title IX--Department of Defense Organization and Management......   731
    Legislative Provisions Adopted...............................   731
        Subtitle A--Duties and Functions of Department of Defense 
          Officers...............................................   731
            Clarification of responsibility of military 
              departments to support combatant commands (sec. 
              901)...............................................   731
            Combatant commander initiative fund (sec. 902).......   731
            Biennial review of national military strategy by 
              Chairman of the Joint Chiefs of Staff (sec. 903)...   732
            Report on changing roles of United States Special 
              Operations Command (sec. 904)......................   732
            Sense of Congress regarding continuation of mission 
              and functions of Army Peacekeeping Institute (sec. 
              905)...............................................   732
            Transfer of personnel investigative functions and 
              related personnel of the Department of Defense 
              (sec. 906).........................................   733
            Defense acquisition workforce freeze for fiscal year 
              2004 (sec. 907)....................................   733
        Subtitle B--Space Activities.............................   733
            Coordination of space science and technology 
              activities of the Department of Defense (sec. 911).   733
            Policy regarding assured access to space for United 
              States national security payloads (sec. 912).......   734
            Pilot program for provision of space surveillance 
              network services to non-United States governmental 
              entities (sec. 913)................................   735
            Content of biennial global positioning system report 
              (sec. 914).........................................   735
            Report on processes--related space systems (sec. 915)   735
        Subtitle C--Reports......................................   736
            Redesignation of the National Imagery and Mapping 
              Agency as the National Geospatial-Intelligence 
              Agency (sec. 921)..................................   736
            Protection of operational files of the National 
              Security Agency (sec. 922).........................   736
            Integration of Defense intelligence, surveillance, 
              and reconnaissance capabilities (sec. 923).........   737
            Management of National Security Agency modernization 
              program (sec. 924).................................   737
            Modification of obligated service requirements under 
              National Security Education Program (sec. 925).....   737
            Authority to provide living quarters for certain 
              students in cooperative and summer education 
              programs of the National Security Agency (sec. 926)   738
            Commercial imagery industrial base (sec. 927)........   738
        Subtitle D--Other Matters................................   739
            Authority for Asia-Pacific Center for Security 
              Studies to accept gifts and donations (sec. 931)...   739
            Repeal of rotating chairmanship of Economic 
              Adjustment Committee (sec. 932)....................   739
            Extension of certain authorities applicable to the 
              Pentagon Reservation to include a designated 
              Pentagon continuity-of-government location (sec. 
              933)...............................................   739
    Legislative Provisions Not Adopted...........................   739
            Standards of conduct for members of the Defense 
              Policy Board and the Defense Science Board.........   739
            Change in title of Secretary of the Navy to Secretary 
              of the Navy and Marine Corps.......................   740
            Establishment of the National Guard of the Northern 
              Mariana Islands....................................   740
            Required force structure.............................   741
Title X--General Provisions......................................   741
    Items of Special Interest....................................   741
            Internet access in Iraq..............................   741
            Security of sensitive software.......................   741
    Legislative Provisions Adopted...............................   742
        Subtitle A--Financial Matters............................   742
            Transfer Authority (sec. 1001).......................   742
            United States contribution to NATO common-funded 
              budgets in fiscal year 2004 (sec. 1002)............   742
            Authorization of supplemental appropriations for 
              fiscal year 2003 (sec. 1003).......................   743
            Authorization of supplemental appropriations for 
              fiscal year 2004 (sec. 1004).......................   743
            Reestablishment of authority for short-term leases of 
              real or personal property across fiscal years (sec. 
              1005)..............................................   743
            Reimbursement rate for certain airlift services 
              provided to Department of State (sec. 1006)........   743
            Limitation on payment of facilities charges assessed 
              by Department of State (sec. 1007).................   743
            Use of the Defense Modernization Account for life 
              cycle cost reduction initiatives (sec. 1008).......   744
            Provisions relating to defense travel cards (sec. 
              1009)..............................................   744
        Subtitle B--Naval Vessels and Shipyards..................   745
            Repeal of requirement regarding preservation of surge 
              capability for naval surface combatants (sec. 1011)   745
            Enhancement of authority relating to use for 
              experimental purposes of vessels stricken from the 
              Naval Vessel Register (sec. 1012)..................   745
            Transfer of vessels stricken from the Naval Vessel 
              Register for use as artificial reefs (sec. 1013)...   745
            Priority for Title XI assistance (sec. 1014).........   745
            Support for transfers of decommissioned vessels and 
              shipboard equipment (sec. 1015)....................   746
            Advanced shipbuilding enterprise (sec. 1016).........   746
            Report on Navy plans for basing aircraft carriers 
              (sec. 1017)........................................   747
            Limitation on disposal of obsolete naval vessel (sec. 
              1018)..............................................   747
        Subtitle C--Counterdrug Matters..........................   747
            Expansion and extension of authority to provide 
              additional support for counter-drug activities 
              (sec. 1021)........................................   747
            Authority for Joint Task Forces to provide support to 
              law enforcement agencies conducting counter-
              terrorism activities (sec. 1022)...................   748
            Use of funds for unified counterdrug and 
              counterterrorism campaign in Colombia (sec. 1023)..   748
            Sense of Congress on reconsideration of decision to 
              terminate border and seaport inspection duties of 
              National Guard under National Guard drug 
              interdiction and counter-drug program (sec. 1024)..   748
        Subtitle D--Reports......................................   748
            Repeal and modification of various reporting 
              requirements applicable to the Department of 
              Defense (sec. 1031)................................   748
            Plan for prompt global strike capability (sec. 1032).   749
            Annual report concerning dismantlement of strategic 
              nuclear warheads (sec. 1033).......................   749
            Report on use of unmanned aerial vehicles for support 
              of homeland security missions (sec. 1034)..........   749
        Subtitle E--Extension of Expiring Authorities............   749
            Codification and revision of defense 
              counterintelligence polygraph program authority 
              (sec. 1041)........................................   749
            General definitions applicable to facilities and 
              operations of Department of Defense (sec. 1042)....   750
            Additional definitions for purposes of title 10, 
              United States Code (sec. 1043).....................   750
            Inclusion of annual military construction 
              authorization request in annual defense 
              authorization request (sec. 1044)..................   750
            Technical and clerical amendments (sec. 1045)........   750
        Subtitle F--Other Matters................................   751
            Assessment of effects of specified statutory 
              limitations on the granting of security clearances 
              (sec. 1051)........................................   751
            Acquisition of historical artifacts through exchange 
              of obsolete or surplus property (sec. 1052)........   751
            Conveyance of surplus T-37 aircraft to Air Force 
              Aviation Heritage Foundation, Incorporated (sec. 
              1053)..............................................   751
            Department of Defense biennial strategic plan for 
              management of electromagnetic spectrum (sec. 1054).   751
            Revision of defense acquisition directive relating to 
              management and use of radio frequency spectrum 
              (sec. 1055)........................................   752
            Sense of Congress on deployment of airborne chemical 
              agent monitoring systems at chemical stockpile 
              disposal sites in the United States (sec. 1056)....   753
            United States Fire Administration grants to make 
              fighting fires safer (sec. 1057)...................   754
            Review and Enhancement of Existing Authorities for 
              Using Air Force and Air National Guard Modular 
              Fire-Fighting System and Other Department of 
              Defense Assets to Fight Wildfires (sec. 1058)......   754
    Legislative Provisions Not Adopted...........................   755
            Assignment of members to assist Bureau of Border 
              Security and Bureau of Citizenship and Immigration 
              Services of the Department of Homeland Security....   755
            Assistance for study of feasibility of biennial 
              international air trade show in the United States 
              and for initial implementation.....................   756
            Commission on Nuclear Strategy of the United States..   756
            Extension of Counterproliferation Program Review 
              Committee..........................................   756
            Limitation on number of United States military 
              personnel in Colombia..............................   756
            Repeal of requirement for two-year budget cycle for 
              the Department of Defense..........................   757
            Sense of Congress on commercial air carrier 
              accommodation for members of the armed forces 
              purchasing tickets for personal use................   757
            Use of National Driver Register for personnel 
              security investigations and determinations.........   757
            Authority to transfer procurement funds for a major 
              defense acquisition program for continued 
              development work on that program...................   757
            Authority to provide reimbursement for use of 
              personal cellular telephones when used for official 
              government businesses..............................   757
            Codification and revision of limitation on 
              modification of major items of equipment scheduled 
              for retirement or disposal.........................   758
            Assistance for study of feasibility of biennial 
              international air trade show in the United States 
              and for initial implementation.....................   758
Title XI--Department of Defense Civilian Personnel...............   758
    Legislative Provisions Adopted...............................   758
        Subtitle A--Department of Defense National Security 
          Personnel System.......................................   758
            Department of Defense National Security Personnel 
              System (sec. 1101).................................   758
        Subtitle B--Department of Defense Civilian Personnel 
          Generally..............................................   760
            Pilot program for improved civilian personnel 
              management (sec. 1111).............................   760
            Clarification and revision of authority for 
              demonstration project relating to certain 
              acquisition personnel management policies and 
              procedures (sec. 1112).............................   760
            Military leave for mobilized federal civilian 
              employees (sec. 1113)..............................   761
            Restoration of annual leave for certain Department of 
              Defense employees (sec. 1114)......................   761
            Authority to employ civilian faculty members at the 
              Western Hemisphere Institute for Security 
              Cooperation (sec. 1115)............................   761
            Extension, expansion, and revision of authority for 
              experimental personnel program for scientific and 
              technical personnel (sec. 1116)....................   761
        Subtitle C--Other Federal Government Civilian Personnel 
          Matters................................................   762
            Modification of the overtime pay cap (sec. 1121).....   762
            Common occupational and health standards for 
              differential payments as a consequence of exposure 
              to asbestos (sec. 1122)............................   762
            Increase in annual student loan repayment authority 
              (sec. 1123)........................................   762
            Authorization for Cabinet Secretaries, secretaries of 
              military departments and heads of executive 
              agencies to be paid on a biweekly basis (sec. 1124)   762
            Senior executive service and performance (sec. 1125).   762
            Design elements of pay-for-performance systems in 
              demonstration projects (sec. 1126).................   762
            Federal flexible benefits plan administrative costs 
              (sec. 1127)........................................   763
            Employee surveys (sec. 1128).........................   763
            Human capital performance fund (sec. 1129)...........   763
    Legislative Provisions Not Adopted...........................   763
            Clarification of Hatch Act...........................   763
            Pay authority for critical positions (sec. ).........   763
Title XII--Matters Relating to Other Nations.....................   764
        Subtitle A--Matters Relating to Iraq.....................   764
            Medical assistance to Iraqi children injured during 
              Operation Iraqi Freedom (sec. 1201)................   764
            Report on the conduct of Operation Iraqi Freedom 
              (sec. 1202)........................................   764
            Report on Department of Defense security and 
              reconstruction activities in Iraq (sec. 1203)......   765
            Report on acquisition by Iraq of advanced weapons 
              (sec. 1204)........................................   765
            Sense of Congress on the use of small businesses, 
              minority-owned businesses, and women-owned 
              businesses in efforts to rebuild Iraq (sec. 1205)..   765
        Subtitle B--Matters Relating to Export Protections.......   766
            Review of export protections for military superiority 
              resources (sec. 1211)..............................   766
            Report on Department of Defense costs relating to 
              national security controls on satellite export 
              licensing (sec. 1212)..............................   766
        Subtitle C--Administrative Requirements and Authorities..   766
            Authority to use funds for payment of costs of 
              attendance of foreign visitors under Regional 
              Defense Counterterrorism Fellowship Program (sec. 
              1221)..............................................   766
            Recognition of superior noncombat achievements or 
              performance by member of friendly foreign forces 
              and other foreign nationals (sec. 1222)............   767
            Expansion of authority to waive charges for cost of 
              attendance at George C. Marshall European Center 
              for Security Studies (sec. 1223)...................   767
            Authority for check cashing and currency exchange 
              services to be provided to foreign military members 
              participating in certain activities with United 
              States forces (sec. 1224)..........................   767
            Depot maintenance and repair work on certain types of 
              trainer aircraft to be transferred to foreign 
              countries as excess aircraft (sec. 1225)...........   767
        Subtitle D--Other Reports and the Sense of the Congress 
          Statements.............................................   768
            Annual report on the NATO Prague capabilities 
              commitment and the NATO response force (sec. 1231).   768
            Report on actions that could be taken regarding 
              countries that initiate certain legal actions 
              against United States officials or members of the 
              armed forces (sec. 1232)...........................   768
            Sense of Congress on redeployment of United States 
              forces in Europe (sec. 1233).......................   768
            Sense of Congress concerning Navy port calls in 
              Israel (sec. 1234).................................   768
    Legislative Provisions Not Adopted...........................   769
            Assessment and report concerning the location of NATO 
              headquarters.......................................   769
            Expansion of authority to provide administrative 
              support and services and travel and subsistence 
              expenses for certain foreign liaison officers......   769
            Clarification and extension of authority to provide 
              assistance for international nonproliferation 
              activities.........................................   769
Title XIII--Cooperative Threat Reduction With States of the 
  Former Soviet Union............................................   770
    Legislative Provisions Adopted...............................   770
            Specification of Cooperative Threat Reduction 
              programs and funds (sec. 1301).....................   770
            Funding allocations (sec. 1302)......................   770
            Limitation on use of funds until certain permits 
              obtained (sec. 1303)...............................   770
            Limitation on use of funds for biological research in 
              the former Soviet Union (sec. 1304)................   771
            Requirement for on-site managers (sec. 1305).........   771
            Temporary authority to waive limitation on funding 
              for chemical weapons destruction facility in Russia 
              (sec. 1306)........................................   771
            Annual certifications on use of facilities being 
              constructed for Cooperative Threat Reduction 
              projects or activities (sec. 1307).................   772
            Authority to use Cooperative Threat Reduction funds 
              outside the former Soviet Union (sec. 1308)........   772
            Authority to use Cooperative Threat Reduction funds 
              outside the former Soviet Union (sec. 1308)........   773
    Legislative Provisions Not Adopted...........................   773
            Authority and funds for nonproliferation and 
              disarmament........................................   773
Title XIV--Services Acquisition Reform...........................   774
    Legislative Provisions Adopted...............................   774
            Short title (sec. 1401)..............................   774
        Subtitle A--Acquisition Workforce and Training...........   774
            Definition of acquisition (sec. 1411)................   774
            Acquisition workforce training fund (sec. 1412)......   774
            Acquisition workforce recruitment program (sec. 1413)   774
            Architectural and engineering acquisition workforce 
              (sec. 1414)........................................   775
        Subtitle B--Adaptation of Business Acquisition Practices.   775
            Chief Acquisition Officers (sec. 1421)...............   775
            Chief Acquisition Officers Council (sec. 1422).......   775
            Statutory and regulatory review (sec. 1423)..........   775
            Extension of authority to carry out franchise fund 
              programs (sec. 1426)...............................   775
            Improvements in contracting for architectural and 
              engineering services (sec. 1427)...................   776
            Authorization of telecommuting for Federal 
              contractors (sec. 1428)............................   776
        Subtitle C--Aquisition of Commercial Items...............   776
            Additional incentive for use of performance-based 
              contracting for services (sec. 1431)...............   776
            Authorization of additional commercial contract types 
              (sec. 1432)........................................   777
            Clarification of commercial services definition (sec. 
              1433)..............................................   778
        Subtitle D--Other Matters................................   778
            Authority to enter into certain transactions for 
              defense against or recovery from terrorism or 
              nuclear, biological, chemical, or radiological 
              attack (sec. 1441).................................   778
            Public disclosure of noncompetitive contracting for 
              the reconstruction of infrastructure in Iraq (sec. 
              1442)..............................................   778
            Special emergency procurement authority (sec. 1443)..   778
    Legislative Provisions Not Adopted...........................   779
            Executive agency defined.............................   779
            Agency acquisition protests..........................   779
            Incentives for contract efficiency...................   779
            Designation of commercial business entities..........   779
            Authority to make inflation adjustments to simplified 
              acquisition threshold..............................   780
            Applicability of certain provisions to sole source 
              contracts for goods and services treated as 
              commercial items...................................   780
            Prohibition on use of quotas.........................   780
Title XV--Authorization of Appropriations for the War on 
  Terrorism......................................................   780
            Veterans' Disability Benefits Commission (sec. 1501-
              1507)..............................................   780
            Higher education relief opportunities for students...   780
    Legislative Provisions Adopted...............................   781
    Legislative Provisions Not Adopted...........................   781
Title XVI--Defense Biomedical Countermeasures....................   781
            Research and development of defense biomedical 
              countermeasures (sec. 1601)........................   781
            Procurement of defense biomedical countermeasures 
              (sec. 1602)........................................   781
            Authorization for medical products for use in 
              emergencies (sec. 1603)............................   782
DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS.................   782
            Overview.............................................   782
    Legislative Provisions Adopted...............................   802
            Short title (sec. 2001)..............................   802
Title XXI--Army..................................................   802
            Overview.............................................   802
    Items of Special Interest....................................   802
            Powertrain/flexible maintenance center, Anniston Army 
              Depot, Alabama.....................................   802
    Legislative Provisions Adopted...............................   802
            Authorized Army construction and land acquisition 
              projects (sec. 2101)...............................   802
            Family housing (sec. 2102)...........................   803
            Improvements to military family housing units (sec. 
              2103)..............................................   803
            Authorization of appropriations, Army (sec. 2104)....   803
            Termination or modification of authority to carry out 
              certain fiscal year 2003 projects (sec. 2105)......   803
            Modification of authority to carry out certain fiscal 
              year 2002 projects (sec. 2106).....................   803
            Termination or modification of authority to carry out 
              certain fiscal year 2001 projects (sec. 2107)......   804
Title XXII--Navy.................................................   804
            Overview.............................................   804
    Legislative Provisions Adopted...............................   805
            Authorized Navy construction and land acquisition 
              projects (sec. 2201)...............................   805
            Family housing (sec. 2202)...........................   805
            Improvements to military family housing units (sec. 
              2203)..............................................   805
            Authorization of appropriations, Navy (sec. 2204)....   805
            Termination of authority to carry out certain fiscal 
              year 2003 projects (sec. 2205).....................   805
            Termination or modification of authority to carry out 
              certain fiscal year 2002 projects (sec. 2206)......   806
Title XXIII--Air Force...........................................   806
            Overview.............................................   806
    Items of Special Interest....................................   806
            Child Development Center, Little Rock Air Force Base, 
              Arkansas...........................................   806
    Legislative Provisions Adopted...............................   807
            Authorized Air Force construction and land 
              acquisition projects (sec. 2301)...................   807
            Family housing (sec. 2302)...........................   807
            Improvements to military family housing units (sec. 
              2303)..............................................   807
            Authorization of appropriations, Air Force (sec. 
              2304)..............................................   807
            Termination or modification of authority to carry out 
              certain fiscal year 2003 projects (sec. 2305)......   808
Title XXIV--Defense Agencies.....................................   808
    Legislative Provisions Adopted...............................   808
            Authorized Defense Agencies construction and land 
              acquisition projects (sec. 2401)...................   808
            Family housing (sec. 2402)...........................   808
            Improvements to military family housing units (sec. 
              2403)..............................................   808
            Energy conservation projects (sec. 2404).............   808
            Authorization of appropriations, Defense Agencies 
              (sec. 2405)........................................   809
            Termination of authority to carry out certain fiscal 
              year 2003 projects (sec. 2406).....................   809
    Legislative Provisions Not Adopted...........................   809
            Modification of authority to carry out certain fiscal 
              year 2003 projects.................................   809
Title XXV--North Atlantic Treaty Organization Security Investment 
  Program........................................................   809
            Authorized NATO construction and land acquisition 
              projects (sec. 2501)...............................   809
            Authorization of appropriations, NATO (sec. 2502)....   810
Title XXVI--Guard and Reserve Forces Facilities..................   810
            Overview.............................................   810
    Items of Special Interest....................................   810
            Readiness Center, Charleston, South Carolina.........   810
    Legislative Provisions Adopted...............................   810
            Authorized Guard and Reserve construction and land 
              acquisition projects (sec. 2601)...................   810
Title XXVII--Expiration and Extension of Authorizations..........   811
    Legislative Provisions Adopted...............................   811
            Expiration of authorizations and amounts required to 
              be specified by law (sec. 2701)....................   811
            Extension of authorizations of certain fiscal year 
              2001 projects (sec. 2702)..........................   811
            Extension of authorizations of certain fiscal year 
              2000 projects (sec. 2703)..........................   811
    Legislative Provisions Not Adopted...........................   811
            Effective date.......................................   811
Title XXVIII--General Provisions.................................   812
    Items of Special Interest....................................   812
            Use of authorities to correct a deficiency that is 
              life-threatening, health-threatening, or safety-
              threatening........................................   812
            Preservation of historical military facilities.......   812
    Legislative Provisions Adopted...............................   814
        Subtitle A--Military Construction Program and Military 
          Family Housing Changes.................................   814
            Modification of general definitions relating to 
              military construction (sec. 2801)..................   814
            Increase in maximum amount of authorized annual 
              emergency construction (sec. 2802).................   814
            Increase in number of family housing units in Italy 
              authorized for lease by Navy (sec. 2803)...........   814
            Increase in authorized maximum lease term for family 
              housing and other facilities in certain foreign 
              countries (sec. 2804)..............................   814
            Conveyance of property at military installations 
              closed or realigned to support military 
              construction (sec. 2805)...........................   815
            Inapplicability of space limitations to military 
              unaccompanied housing units acquired or constructed 
              under alternate authority (sec. 2806)..............   815
            Additional material for reports on housing 
              privatization program (sec. 2807)..................   816
            Temporary, limited authority to use operation and 
              maintenance funds for construction projects outside 
              the United States (sec. 2808)......................   816
            Report on military construction requirements to 
              support new homeland defense missions of the armed 
              forces (sec. 2809).................................   818
        Subtitle B--Real Property and Facilities Administration..   818
            Enhancement of authority to acquire low-cost 
              interests in land (sec. 2811)......................   818
            Retention and availability of amounts realized from 
              energy cost savings (sec. 2812)....................   819
            Acceptance of in-kind consideration for easements 
              (sec. 2813)........................................   819
        Subtitle C--Base Closure and Realignment.................   819
            Consideration of public-access road issues related to 
              base closure, realignment, or placement in inactive 
              status (sec. 2821).................................   819
            Consideration of surge requirements in 2005 round of 
              base realignments and closures (sec. 2822).........   819
        Subtitle D--Land Conveyances.............................   820
        Part I--Army Conveyances.................................   820
            Termination of lease and conveyance of Army Reserve 
              Center, Conway, Arkansas (sec. 2831)...............   820
            Land conveyance, Fort Campbell, Kentucky and 
              Tennessee (sec. 2832)..............................   820
            Land conveyance, Fort Knox, Kentucky (sec. 2833).....   820
            Army National Guard armory, Pierce City, Missouri 
              (sec. 2834)........................................   821
            Land conveyance, Fort Belvoir, Virginia (sec. 2835)..   821
        Part II--Navy Conveyances................................   821
            Land conveyance, Navy property, Dixon, California 
              (sec. 2841)........................................   821
            Land conveyance, Marine Corps Logistics Base, Albany, 
              Georgia (sec. 2842)................................   822
            Land conveyance, Naval and Marine Corps Reserve 
              Center, Portland, Oregon (sec. 2843)...............   822
            Land conveyance, Naval Reserve Center, Orange, Texas 
              (sec. 2844)........................................   822
            Land conveyance, Puget Sound Naval Shipyard, 
              Bremerton, Washington (sec. 2845)..................   822
        Part III--Air Force Conveyances..........................   823
            Land exchange, March Air Reserve Base, California 
              (sec. 2851)........................................   823
            Actions to quiet title, Fallin Water Subdivision, 
              Eglin Air Force Base, Florida (sec. 2852)..........   823
            Modification of land conveyance, Eglin Air Force 
              Base, Florida (sec. 2853)..........................   823
        Part IV--Other Conveyances...............................   824
            Land conveyance, Army and Air Force Exchange Service 
              Property, Dallas, Texas (sec. 2861)................   824
            Land conveyance, Umnak Island, Alaska (sec. 2862)....   824
        Subtitle E--Other Matters................................   825
            Authority to accept guarantees with gifts in 
              development of the Marine Corps Heritage Center, 
              Marine Corps Base, Quantico, Virginia (sec. 2871)..   825
            Redesignation of Yuma Training Range Complex as Bob 
              Stump Training Range Complex (sec. 2872)...........   826
            Feasibility study of conveyance of Louisiana Army 
              Ammunition Plant, Doyline, Louisiana (sec. 2873)...   826
    Legislative Provisions Not Adopted...........................   826
            Exemption from screening and use requirements under 
              McKinney-Vento Homeless Assistance Act for 
              Department of Defense property in emergency support 
              of homeland security...............................   826
            Land conveyance, Fort Ritchie, Maryland..............   827
            Sense of Congress on demolition of Army Tacony 
              Warehouse Depot Site, Philadelphia, Pennsylvania...   827
            Modification of authority to conduct a round of 
              realignments and closures of military installations 
              in 2005............................................   827
            Requirement for unanimous vote of defense base 
              realignment and closure commission to recommend 
              closure of military installations not recommended 
              for closure by the Secretary of Defense............   827
            Review of overseas military facility structure.......   828
DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS 
  AND OTHER AUTHORIZATIONS.......................................   828
Title XXXI--Department of Energy National Security Programs......   828
        Subtitle A--National Security Programs Authorizations....   850
            National Nuclear Security Administration (sec. 3101).   850
            Defense environmental management (sec. 3102).........   851
            Other defense activities (sec. 3103).................   852
            Defense nuclear waste disposal (sec. 3104)...........   852
            Energy supply (sec. 3105)............................   852
        Subtitle B--Program Authorizations, Restrictions, and 
          Limitations............................................   853
            Termination of requirement for annual updates of 
              long-term plan for nuclear weapons stockpile life 
              extension program (sec. 3111)......................   853
            Department of Energy project review groups not 
              subject to Federal Advisory Committee Act by reason 
              of inclusion of employees of Department of Energy 
              management and operating contractors (sec. 3112)...   853
            Readiness posture for resumption by the United States 
              of underground nuclear weapons tests (sec. 3113)...   853
            Technical base and facilities maintenance and 
              recapitalization activities (sec. 3114)............   854
            Continuation of processing, treatment, and 
              disposition of legacy nuclear materials (sec. 3115)   854
            Repeal of prohibition on research and development of 
              low-yield nuclear weapons (sec. 3116)..............   855
            Requirement for specific authorization of Congress 
              for commencement of engineering development phase 
              or subsequent phase of robust nuclear earth 
              penetrator (sec. 3117).............................   855
        Subtitle C--Proliferation Matters........................   856
            Semi-annual financial reports on Defense Nuclear 
              Nonproliferation Programs (sec. 3121)..............   856
            Report on reduction of excessive unobligated or 
              unexpended balances for defense nuclear 
              nonproliferation activities (sec. 3122)............   856
            Study and report relating to weapons-grade uranium 
              and plutonium of the independent states of the 
              former Soviet Union (sec. 3123)....................   857
            Authority to use International Nuclear Materials 
              Protection and Cooperation program funds outside 
              the former Soviet Union (sec. 3124)................   857
            Requirement for on-site managers (sec. 3125).........   858
        Subtitle D--Other Matters................................   858
            Performance of personnel security investigations of 
              certain Department of Energy and Nuclear Regulatory 
              Commission Employees in Sensitive Programs (sec. 
              3131)..............................................   858
            Policy of Department of Energy regarding future 
              defense environmental management matters (sec. 
              3132)..............................................   859
            Inclusion in 2005 stockpile stewardship plan of 
              certain information relating to stockpile 
              stewardship criteria (sec. 3133)...................   859
            Progress reports on energy employees occupational 
              illness compensation program (sec. 3134)...........   860
            Report on integration activities of Department of 
              Defense and Department of Energy with respect to 
              robust nuclear earth penetrator (sec. 3135)........   860
        Subtitle E--Consolidation of National Security Provisions   861
            Transfer and consolidation of recurring and general 
              provisions on Department of Energy national 
              security programs (sec. 3141)......................   861
    Items of Special Interest....................................   861
            Thorium-based fuel cycle research....................   861
    Legislative Provisions Not Adopted...........................   861
            Extension to all DOE facilities of authority to 
              prohibit dissemination of certain unclassified 
              information........................................   861
            Availability of funds................................   861
            Limitation on obligation of funds for nuclear test 
              readiness program..................................   862
Title XXXII--Defense Nuclear Facilities Safety Board.............   862
    Legislative Provisions Adopted...............................   862
            Authorization (sec. 3201)............................   862
Title XXXIII--National Defense Stockpile.........................   862
    Legislative Provisions Adopted...............................   862
            Authorized uses for National Defense Stockpile Funds 
              (sec. 3301)........................................   862
            Revisions to required receipt objectives for 
              previously authorized disposals from National 
              Defense Stockpile (sec. 3302)......................   863
Title XXXIV--Naval Petroleum Reserves............................   863
    Legislative Provisions Adopted...............................   863
            Authorization of appropriations (sec. 3401)..........   863
Title XXXV--Maritime Administration..............................   863
    Legislative Provisions Adopted...............................   863
            Title XXXV--Maritime Administration (sec. 3501-3546).   863
    Legislative Provisions Not Adopted...........................   867
            Authority to convey National Defense Reserve Fleet 
              vessels and vessel contents........................   867
Title XXXVI--Nuclear Security Initiative.........................   868
            Short title (sec. 3601)..............................   868
        Subtitle A--Administration and Oversite of Threat 
          Reduction and Nonproliferation Programs................   868
            Management assessment of Department of Defense and 
              Department of Energy threat reduction and 
              nonproliferation programs (sec. 3611)..............   868
        Subtitle B--Relations Between the United States and 
          Russia.................................................   868
            Comprehensive inventory of Russian tactical nuclear 
              weapons (sec. 3621)................................   868
            Establishment of interparliamentary threat reduction 
              working group (sec. 3622)..........................   868
            Sense of Congress on cooperation by United States and 
              NATO with Russia on ballistic missile defenses 
              (sec. 3623)........................................   869
            Sense of Congress on enhanced collaboration to 
              achieve more reliable Russian early warning systems 
              (sec. 3624)........................................   869
        Subtitle C--Other Matters................................   870
            Promotion of discussions on nuclear and radiological 
              security and safety between the International 
              Atomic Energy Agency and the Organization for 
              Economic Cooperation and Development (sec. 3631)...   870
    Legislative Provisions Not Adopted...........................   870
            Annual report on the use of funds appropriated for 
              threat reduction and nonproliferation in states of 
              the former Soviet Union............................   870
            Establishment of International Nuclear Materials 
              Protection and Cooperation Program in Department of 
              State..............................................   870
            Nonproliferation fellowships.........................   871
            Plan for and coordination of chemical and biological 
              weapons nonproliferation programs with states of 
              the former Soviet Union............................   871
            Teller-Kurchatov Alliance for Peace..................   871


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

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



 
        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2004

                                _______
                                

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

                                _______
                                

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

                           CONFERENCE REPORT

                        [To accompany H.R. 1588]

    The committee of conference on the disagreeing votes of the 
two Houses on the amendment of the Senate to the bill (H.R. 
1588), to authorize appropriations for fiscal year 2004 for 
military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of 
Energy, to prescribe personnel strengths for such fiscal year 
for the Armed Forces, and for other purposes, having met, after 
full and free conference, have agreed to recommend and do 
recommend to their respective Houses as follows:
    That the House recede from its disagreement to the 
amendment of the Senate and agree to the same with an amendment 
as follows:
    In lieu of the matter proposed to be inserted by the Senate 
amendment, insert the following:

SECTION 1. SHORT TITLE.

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

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

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

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

                        Subtitle B--Army Programs

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

                        Subtitle C--Navy Programs

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

                     Subtitle D--Air Force Programs

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

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

               Subtitle A--Authorization of Appropriations

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

     Subtitle B--Program Requirements, Restrictions, and Limitations

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

                  Subtitle C--Ballistic Missile Defense

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

                        Subtitle D--Other Matters

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

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

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

                  Subtitle B--Environmental Provisions

Sec. 311. Reauthorization and modification of title I of Sikes Act.
Sec. 312. Clarification of Department of Defense response to 
          environmental emergencies.
Sec. 313. Repeal of authority to use environmental restoration account 
          funds for relocation of a contaminated facility.
Sec. 314. Authorization for Department of Defense participation in 
          wetland mitigation banks.
Sec. 315. Inclusion of environmental response equipment and services in 
          Navy definitions of salvage facilities and salvage services.
Sec. 316. Repeal of model program for base closure environmental 
          restoration.
Sec. 317. Requirements for restoration advisory boards and exemption 
          from Federal Advisory Committee Act.
Sec. 318. Military readiness and conservation of protected species.
Sec. 319. Military readiness and marine mammal protection.
Sec. 320. Report regarding impact of civilian community encroachment and 
          certain legal requirements on military installations and 
          ranges and plan to address encroachment.
Sec. 321. Cooperative water use management related to Fort Huachuca, 
          Arizona, and Sierra Vista subwatershed.
Sec. 322. Task force on resolution of conflict between military training 
          and endangered species protection at Barry M. Goldwater Range, 
          Arizona.
Sec. 323. Public health assessment of exposure to perchlorate.
Sec. 324. Comptroller General review of Arctic Military Environmental 
          Cooperation program.

                 Subtitle C--Workplace and Depot Issues

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

                        Subtitle D--Other Matters

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

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

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

                       Subtitle B--Reserve Forces

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

              Subtitle C--Authorizations of Appropriations

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

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Matters

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

                  Subtitle B--Reserve Component Matters

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

             Subtitle C--ROTC and Military Service Academies

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

        Subtitle D--Other Military Education and Training Matters

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

                   Subtitle E--Administrative Matters

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

                  Subtitle F--Military Justice Matters

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

                          Subtitle G--Benefits

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

                      Subtitle H--Domestic Violence

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

                        Subtitle I--Other Matters

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

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

            Subtitle C--Travel and Transportation Allowances

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

              Subtitle D--Retired Pay and Survivor Benefits

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

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

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

                        Subtitle F--Other Matters

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

                    TITLE VII--HEALTH CARE PROVISIONS

               Subtitle A--Enhanced Benefits for Reserves

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

                 Subtitle B--Other Benefits Improvements

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

            Subtitle C--Planning, Programming, and Management

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

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

              Subtitle A--Acquisition Policy and Management

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

      Subtitle B--United States Defense Industrial Base Provisions

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

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

            Part II--Requirements Relating to Specific Items

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

              Part III--Other Domestic Source Requirements

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

    Subtitle C--Defense Acquisition and Support Workforce Flexibility

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

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

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

        Subtitle E--Acquisition-Related Reports and Other Matters

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

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

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

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

                      Subtitle B--Space Activities

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

        Subtitle C--Department of Defense Intelligence Components

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

                        Subtitle D--Other Matters

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

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

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

                 Subtitle B--Naval Vessels and Shipyards

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

                     Subtitle C--Counterdrug Matters

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

                           Subtitle D--Reports

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

    Subtitle E--Codifications, Definitions, and Technical Amendments

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

                        Subtitle F--Other Matters

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

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

  Subtitle A--Department of Defense National Security Personnel System

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

     Subtitle B--Department of Defense Civilian Personnel Generally

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

     Subtitle C--Other Federal Government Civilian Personnel Matters

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

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

                  Subtitle A--Matters Relating to Iraq

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

           Subtitle B--Matters Relating to Export Protections

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

         Subtitle C--Administrative Requirements and Authorities

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

       Subtitle D--Other Reports and Sense of Congress Statements

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

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

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

                 TITLE XIV--SERVICES ACQUISITION REFORM

Sec. 1401. Short title.

             Subtitle A--Acquisition Workforce and Training

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

        Subtitle B--Adaptation of Business Acquisition Practices

           Part I--Adaptation of Business Management Practices

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

                 Part II--Other Acquisition Improvements

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

              Subtitle C--Acquisitions of Commercial Items

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

                        Subtitle D--Other Matters

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

           TITLE XV--VETERANS' DISABILITY BENEFITS COMMISSION

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

              TITLE XVI--DEFENSE BIOMEDICAL COUNTERMEASURES

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

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

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

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

                             TITLE XXI--ARMY

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

                            TITLE XXII--NAVY

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

                         TITLE XXIII--AIR FORCE

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

                      TITLE XXIV--DEFENSE AGENCIES

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

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                 PROGRAM

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

             TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

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

         TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

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

                    TITLE XXVIII--GENERAL PROVISIONS

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

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

         Subtitle B--Real Property and Facilities Administration

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

                Subtitle C--Base Closure and Realignment

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

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

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

                        Part II--Navy Conveyances

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

                     Part III--Air Force Conveyances

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

                       Part IV--Other Conveyances

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

                        Subtitle E--Other Matters

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

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

       TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

          Subtitle A--National Security Programs Authorizations

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

    Subtitle B--Program Authorizations, Restrictions, and Limitations

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

                    Subtitle C--Proliferation Matters

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

                        Subtitle D--Other Matters

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

        Subtitle E--Consolidation of National Security Provisions

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

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

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

                  TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

                   TITLE XXXV--MARITIME ADMINISTRATION

Sec. 3501. Short title.

           Subtitle A--Maritime Administration Reauthorization

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

        Subtitle B--Amendments to Title XI Loan Guarantee Program

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

                   Subtitle C--Maritime Security Fleet

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

    Subtitle D--National Defense Tank Vessel Construction Assistance

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

                TITLE XXXVI--NUCLEAR SECURITY INITIATIVE

Sec. 3601. Short title.

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

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

       Subtitle B--Relations Between the United States and Russia

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

                        Subtitle C--Other Matters

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

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

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

                        Subtitle B--Army Programs

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

                        Subtitle C--Navy Programs

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

                     Subtitle D--Air Force Programs

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

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

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

SEC. 102. NAVY AND MARINE CORPS.

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

SEC. 103. AIR FORCE.

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

SEC. 104. DEFENSE-WIDE ACTIVITIES.

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

                       Subtitle B--Army Programs

SEC. 111. STRYKER VEHICLE PROGRAM.

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

SEC. 112. CH-47 HELICOPTER PROGRAM.

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

                       Subtitle C--Navy Programs

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

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

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

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

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

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

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

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

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

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

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

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

                     Subtitle D--Air Force Programs

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

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

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

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

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

    (a) Limitation.--Of the amount appropriated for fiscal year 
2004 for procurement of F/A-22 aircraft, $136,000,000 may not 
be obligated until the Under Secretary of Defense for 
Acquisition, Technology, and Logistics submits to the 
congressional defense committees the Under Secretary's 
certification that--
            (1) the five aircraft designated to participate in 
        the initial operational test and evaluation program for 
        the F/A-22 aircraft, plus the avionics software test 
        aircraft, have each been equipped with the avionics 
        software operational flight program that is configured 
        for initial operational test and evaluation; and
            (2) before the commencement of that initial 
        operational test and evaluation program, the six 
        aircraft specified in paragraph (1) demonstrate, on 
        average, a mean time between covered avionics anomalies 
        of at least five hours.
    (b) Covered Avionics Anomalies.--For purposes of subsection 
(a), the term ``covered avionics anomalies'' means any of the 
following:
            (1) A software event referred to as a Type 1 
        failure.
            (2) A software event referred to as a Type 2 
        failure.
            (3) A hardware event referred to as a Type 5 
        failure.
    (c) Contingency Waiver Authority.--If the Under Secretary 
notifies the Secretary of Defense that the Under Secretary is 
unable to make the certification described in subsection (a), 
the Secretary may waive the limitation under that subsection. 
Upon making such a waiver--
            (1) the Secretary of Defense shall notify the 
        congressional defense committees of the waiver and of 
        the reasons therefor; and
            (2) the funds described in subsection (a) may then 
        be obligated, by reason of such waiver, after the end 
        of the 30-day period beginning on the date on which the 
        Secretary's notification is received by those 
        committees.

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

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

SEC. 135. PROCUREMENT OF TANKER AIRCRAFT.

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

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

               Subtitle A--Authorization of Appropriations

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

     Subtitle B--Program Requirements, Restrictions, and Limitations

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

                  Subtitle C--Ballistic Missile Defense

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

                        Subtitle D--Other Matters

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

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

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

SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY.

    (a) Fiscal Year 2004.--Of the amounts authorized to be 
appropriated by section 201, $11,029,557,000 shall be available 
for the Defense Science and Technology Program, including basic 
research, applied research, and advanced technology development 
projects.
    (b) Basic Research, Applied Research, and Advanced 
Technology Development Defined.--For purposes of this section, 
the term ``basic research, applied research, and advanced 
technology development'' means work funded in program elements 
for defense research and development under Department of 
Defense category 6.1, 6.2, or 6.3.

    Subtitle B--Program Requirements, Restrictions, and Limitations

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

    (a) Program Required.--The Secretary of Defense shall 
establish and carry out a collaborative program for evaluation 
and demonstration of advanced technologies and concepts for 
advanced gun systems that use electromagnetic propulsion for 
direct and indirect fire applications.
    (b) Description of Program.--The program under subsection 
(a) shall be carried out collaboratively pursuant to a 
memorandum of agreement to be entered into among the Director 
of Defense Research and Engineering, the Secretary of the Army, 
the Secretary of the Navy, the Director of the Defense Advanced 
Research Projects Agency, and other appropriate officials of 
the Department of Defense, as determined by the Secretary. The 
program shall include the following activities:
            (1) Identification of technical objectives, 
        quantified technical barriers, and enabling 
        technologies associated with development of the 
        objective electromagnetic gun systems envisioned to 
        meet the needs of each of the Armed Forces and, in so 
        doing, identification of opportunities for development 
        of components or subsystems common to those envisioned 
        gun systems.
            (2) Preparation of a plan and schedule for 
        development of electromagnetic gun systems for military 
        applications, which--
                    (A) includes the programs currently planned 
                within the Department of Defense;
                    (B) describes how enabling technologies 
                common to such programs are developed and 
                utilized; and
                    (C) provides estimated dates for decision 
                points, prototype demonstrations, and 
                transitions of technologies to acquisition 
                programs.
            (3) Identification of a strategy for the 
        participation of industry in the program.
    (c) Matters Included.--The advanced technologies and 
concepts included under the program may include, but are not 
limited to, the following:
            (1) Advanced electrical power, energy storage, and 
        switching systems.
            (2) Electromagnetic launcher materials and 
        construction techniques for long barrel life.
            (3) Guidance and control systems for 
        electromagnetically launched projectiles.
            (4) Advanced projectiles and other munitions for 
        electromagnetic gun systems.
            (5) Hypervelocity terminal effects.
    (d) Transition of Technologies.--The Secretary of Defense 
shall encourage the transition of technologies developed under 
the program under subsection (a) into appropriate acquisition 
programs of the military departments.
    (e) Report.--Not later than March 31, 2004, the Director of 
Defense Research and Engineering, in collaboration with the 
other officials who entered into the memorandum of agreement 
under subsection (b), shall submit a report to the 
congressional defense committees on the implementation of the 
program under subsection (a). The report shall include the 
following:
            (1) A description of the memorandum of agreement 
        entered into under subsection (b).
            (2) The plan and schedule required by subsection 
        (b)(2).
            (3) A description of the goals and objectives of 
        the program.
            (4) Identification of funding required for fiscal 
        years 2004 and 2005 and for the future-years defense 
        program to carry out the program.
            (5) A description of a plan for industry 
        participation in the program.

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

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

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

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

SEC. 214. FUTURE COMBAT SYSTEMS.

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

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

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

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

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

                 Subtitle C--Ballistic Missile Defense

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

    (a) Flexibility for Specification of Program Elements.--
Subsection (a) of section 223 of title 10, United States Code, 
is amended--
            (1) by inserting ``by President'' in the subsection 
        heading after ``Specified'';
            (2) by striking ``program elements governing 
        functional areas as follows:'' and inserting ``such 
        program elements as the President may specify.''; and
            (3) by striking paragraphs (1) through (6).
    (b) Conforming Amendments.--(1) Subsection (c) of such 
section is amended by striking ``for each program element 
specified in subsection (a)'' and inserting ``for a fiscal year 
for any program element specified for that fiscal year pursuant 
to subsection (a)''.
    (2) Subsection (c)(3) of section 232 of the National 
Defense Authorization Act for Fiscal Year 2002 (Public Law 107-
107; 115 Stat. 1037; 10 U.S.C. 2431 note) is amended by 
striking ``each functional area'' and all that follows through 
``subsection (b),'' and inserting ``each then-current program 
element for ballistic missile defense systems in effect 
pursuant to subsection (a) or (b)''.
    (c) Amendments Relating to Changes in Acquisition 
Terminology.--(1) Section 223(b)(2) of title 10, United States 
Code, is amended by striking ``means the development phase 
whose'' and inserting ``means the period in the course of an 
acquisition program during which the''.
    (2) Subsection (d)(1) of section 232 of the National 
Defense Authorization Act for Fiscal Year 2002 (Public Law 107-
107; 115 Stat. 1037; 10 U.S.C. 2431 note) is amended by 
striking ``, as added by subsection (b)''.

SEC. 222. FIELDING OF BALLISTIC MISSILE DEFENSE CAPABILITIES.

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

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

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

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

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

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

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

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

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

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

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

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

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

                       Subtitle D--Other Matters

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

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

``Sec. 2365. Global Research Watch Program

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

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

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

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

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

    ``(a) Requirement for Strategic Plan.--Every other year, 
and in time for submission to Congress under subsection (c), 
the Director of the Defense Advanced Research Projects Agency 
shall prepare a strategic plan for the activities of that 
agency.
    ``(b) Contents.--The strategic plan required by subsection 
(a) shall include the following matters:
            ``(1) The long-term strategic goals of that agency.
            ``(2) Identification of the research programs of 
        that agency that support--
                    ``(A) achievement of those strategic goals; 
                and
                    ``(B) exploitation of opportunities that 
                hold the potential for yielding significant 
                military benefits.
            ``(3) The connection of the activities and programs 
        of that agency to activities and missions of the armed 
        forces.
            ``(4) A technology transition strategy for the 
        programs of that agency.
            ``(5) A description of the policies of that agency 
        on the management, organization, and personnel of that 
        agency.
    ``(c) Submission of Plan to Congress.--The Secretary of 
Defense shall submit to Congress the strategic plan most 
recently prepared under subsection (a) at the same time that 
the President submits to Congress the budget for an even-
numbered fiscal year under section 1105(a) of title 31.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 2351 the following new item:

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

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

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

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

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

SEC. 235. BLUE FORCES TRACKING INITIATIVE.

    (a) Goal.--It shall be a goal of the Department of Defense 
to coordinate fully the various efforts of the Chairman of the 
Joint Chiefs of Staff, the commanders of the combatant 
commands, and the Secretaries of the military departments to 
develop an effective system for tracking of United States and 
other friendly forces (known as ``blue forces'') during combat 
operations.
    (b) Joint Blue Forces Tracking Experiment.--(1) The 
Secretary of Defense, acting through the commander of the 
United States Joint Forces Command, shall carry out a joint 
experiment during fiscal year 2004 to demonstrate and evaluate 
available joint blue forces tracking technologies.
    (2) The objectives of the experiment under paragraph (1) 
are as follows:
            (A) To explore various options for tracking United 
        States and other friendly forces during combat 
        operations.
            (B) To determine an optimal, achievable, and 
        upgradable solution for the development, acquisition, 
        and fielding of a system for tracking all United States 
        military forces that is coordinated and interoperable 
        and also accommodates the participation of military 
        forces of allied nations with United States forces in 
        combat operations.
    (c) Report.--Not later than 60 days after the conclusion of 
the experiment under subsection (b), but not later than 
December 1, 2004, the Secretary shall submit to the 
congressional defense committees a report on the results of the 
experiment, together with a comprehensive plan for the 
development, acquisition, and fielding of a functional, near 
real-time blue forces tracking system.

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

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

                  Subtitle B--Environmental Provisions

Sec. 311. Reauthorization and modification of title I of Sikes Act.
Sec. 312. Clarification of Department of Defense response to 
          environmental emergencies.
Sec. 313. Repeal of authority to use environmental restoration account 
          funds for relocation of a contaminated facility.
Sec. 314. Authorization for Department of Defense participation in 
          wetland mitigation banks.
Sec. 315. Inclusion of environmental response equipment and services in 
          Navy definitions of salvage facilities and salvage services.
Sec. 316. Repeal of model program for base closure environmental 
          restoration.
Sec. 317. Requirements for restoration advisory boards and exemption 
          from Federal Advisory Committee Act.
Sec. 318. Military readiness and conservation of protected species.
Sec. 319. Military readiness and marine mammal protection.
Sec. 320. Report regarding impact of civilian community encroachment and 
          certain legal requirements on military installations and 
          ranges and plan to address encroachment.
Sec. 321. Cooperative water use management related to Fort Huachuca, 
          Arizona, and Sierra Vista subwatershed.
Sec. 322. Task force on resolution of conflict between military training 
          and endangered species protection at Barry M. Goldwater Range, 
          Arizona.
Sec. 323. Public health assessment of exposure to perchlorate.
Sec. 324. Comptroller General review of Arctic Military Environmental 
          Cooperation program.

                 Subtitle C--Workplace and Depot Issues

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

                        Subtitle D--Other Matters

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

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

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

SEC. 302. WORKING CAPITAL FUNDS.

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

SEC. 303. OTHER DEPARTMENT OF DEFENSE PROGRAMS.

    (a) Defense Health Program.--Funds are hereby authorized to 
be appropriated for the Department of Defense for fiscal year 
2004 for expenses, not otherwise provided for, for the Defense 
Health Program, $15,401,509,000, of which--
            (1) $15,007,887,000 is for Operation and 
        Maintenance;
            (2) $65,796,000 is for Research, Development, Test, 
        and Evaluation; and
            (3) $327,826,000 is for Procurement.
    (b) Chemical Agents and Munitions Destruction, Defense.--
(1) Funds are hereby authorized to be appropriated for the 
Department of Defense for fiscal year 2004 for expenses, not 
otherwise provided for, for Chemical Agents and Munitions 
Destruction, Defense, $1,530,261,000, of which--
            (A) $1,199,168,000 is for Operation and 
        Maintenance;
            (B) $251,881,000 is for Research, Development, 
        Test, and Evaluation; and
            (C) $79,212,000 is for Procurement.
    (2) Amounts authorized to be appropriated under paragraph 
(1) are authorized for--
            (A) the destruction of lethal chemical agents and 
        munitions in accordance with section 1412 of the 
        Department of Defense Authorization Act, 1986 (50 
        U.S.C. 1521); and
            (B) the destruction of chemical warfare materiel of 
        the United States that is not covered by section 1412 
        of such Act.
    (c) Drug Interdiction and Counter-Drug Activities, Defense-
wide.--Funds are hereby authorized to be appropriated for the 
Department of Defense for fiscal year 2004 for expenses, not 
otherwise provided for, for Drug Interdiction and Counter-Drug 
Activities, Defense-wide, $817,371,000.
    (d) Defense Inspector General.--Funds are hereby authorized 
to be appropriated for the Department of Defense for fiscal 
year 2004 for expenses, not otherwise provided for, for the 
Office of the Inspector General of the Department of Defense, 
$162,449,000, of which--
            (1) $160,049,000 is for Operation and Maintenance;
            (2) $2,100,000 is for Research, Development, Test, 
        and Evaluation; and
            (3) $300,000 is for Procurement.

                  Subtitle B--Environmental Provisions

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

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

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

    (a) Transportation of Humanitarian Relief Supplies to 
Respond to Environmental Emergencies.--Section 402 of title 10, 
United States Code, is amended--
            (1) by redesignating subsection (d) as subsection 
        (e); and
            (2) by inserting after subsection (c) the following 
        new subsection (d):
    ``(d)(1) The Secretary of Defense may use the authority 
provided by subsection (a) to transport supplies intended for 
use to respond to, or mitigate the effects of, an event or 
condition, such as an oil spill, that threatens serious harm to 
the environment, but only if other sources to provide such 
transportation are not readily available.
    ``(2) Notwithstanding subsection (a), the Secretary of 
Defense may require reimbursement for costs incurred by the 
Department of Defense to transport supplies under this 
subsection.''.
    (b) Conditions on Provision of Transportation.--Subsection 
(b) of such section is amended--
            (1) in paragraph (1)(C), by inserting ``or entity'' 
        after ``people'';
            (2) in paragraph (1)(E), by inserting ``or use'' 
        after ``distribution''; and
            (3) in paragraph (3), by striking ``donor to ensure 
        that supplies to be transported under this section'' 
        and inserting ``entity requesting the transport of 
        supplies under this section to ensure that the 
        supplies''.
    (c) Provision of Disaster Assistance.--Section 404 of such 
title is amended--
            (1) in subsection (a), by inserting ``or serious 
        harm to the environment'' after ``loss of lives'';
            (2) in subsection (c)(2), by inserting ``or the 
        environment'' after ``human lives''; and
            (3) by adding at the end the following new 
        subsection:
    ``(e) Limitation on Transportation Assistance.--
Transportation services authorized under subsection (b) may be 
provided in response to a manmade or natural disaster to 
prevent serious harm to the environment, when human lives are 
not at risk, only if other sources to provide such 
transportation are not readily available.''.
    (d) Provision of Humanitarian Assistance.--Section 2561(a) 
of such title is amended--
            (1) by inserting ``(1)'' before ``To the extent''; 
        and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) The Secretary of Defense may use the authority 
provided by paragraph (1) to transport supplies intended for 
use to respond to, or mitigate the effects of, an event or 
condition, such as an oil spill, that threatens serious harm to 
the environment, but only if other sources to provide such 
transportation are not readily available. The Secretary may 
require reimbursement for costs incurred by the Department of 
Defense to transport supplies under this paragraph.''.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    (a) Limitation on Designation of Critical Habitat.--Section 
4(a)(3) of the Endangered Species Act of 1973 (16 U.S.C. 
1533(a)(3)) is amended--
            (1) by redesignating subparagraphs (A) and (B) as 
        clauses (i) and (ii), respectively;
            (2) by inserting ``(A)'' after ``(3)''; and
            (3) by adding at the end the following:
    ``(B)(i) The Secretary shall not designate as critical 
habitat any lands or other geographical areas owned or 
controlled by the Department of Defense, or designated for its 
use, that are subject to an integrated natural resources 
management plan prepared under section 101 of the Sikes Act (16 
U.S.C. 670a), if the Secretary determines in writing that such 
plan provides a benefit to the species for which critical 
habitat is proposed for designation.
    ``(ii) Nothing in this paragraph affects the requirement to 
consult under section 7(a)(2) with respect to an agency action 
(as that term is defined in that section).
    ``(iii) Nothing in this paragraph affects the obligation of 
the Department of Defense to comply with section 9, including 
the prohibition preventing extinction and taking of endangered 
species and threatened species.''.
    (b) Consideration of Effects of Designation of Critical 
Habitat.--Section 4(b)(2) of the Endangered Species Act of 1973 
(16 U.S.C. 1533(b)(2)) is amended by inserting ``the impact on 
national security,'' after ``the economic impact,''.

SEC. 319. MILITARY READINESS AND MARINE MAMMAL PROTECTION.

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

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

    (a) Study Required.--The Secretary of Defense shall conduct 
a study on the impact, if any, of the following types of 
encroachment issues affecting military installations and 
operational ranges:
            (1) Civilian community encroachment on those 
        military installations and ranges whose operational 
        training activities, research, development, test, and 
        evaluation activities, or other operational, test and 
        evaluation, maintenance, storage, disposal, or other 
        support functions require, or in the future reasonably 
        may require, safety or operational buffer areas. The 
        requirement for such a buffer area may be due to a 
        variety of factors, including air operations, ordnance 
        operations and storage, or other activities that 
        generate or might generate noise, electro-magnetic 
        interference, ordnance arcs, or environmental impacts 
        that require or may require safety or operational 
        buffer areas.
            (2) Compliance by the Department of Defense with 
        State Implementation Plans for Air Quality under 
        section 110 of the Clean Air Act (42 U.S.C. 7410).
            (3) Compliance by the Department of Defense with 
        the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.) 
        and the Comprehensive Environmental Response, 
        Compensation, and Liability Act of 1980 (42 U.S.C. 9601 
        et seq.).
    (b) Matters To Be Included With Respect to Civilian 
Community Encroachments.--With respect to paragraph (1) of 
subsection (a), the study shall include the following:
            (1) A list of all military installations described 
        in subsection (a)(1) at which civilian community 
        encroachment is occurring.
            (2) A description and analysis of the types and 
        degree of such civilian community encroachment at each 
        military installation included on the list.
            (3) An analysis, including views and estimates of 
        the Secretary of Defense, of the current and potential 
        future impact of such civilian community encroachment 
        on operational training activities, research, 
        development, test, and evaluation activities, and other 
        significant operational, test and evaluation, 
        maintenance, storage, disposal, or other support 
        functions performed by military installations included 
        on the list. The analysis shall include the following:
                    (A) A review of training and test ranges at 
                military installations, including laboratories 
                and technical centers of the military 
                departments, included on the list.
                    (B) A description and explanation of the 
                trends of such encroachment, as well as 
                consideration of potential future readiness 
                problems resulting from unabated encroachment.
            (4) An estimate of the costs associated with 
        current and anticipated partnerships between the 
        Department of Defense and non-Federal entities to 
        create buffer zones to preclude further development 
        around military installations included on the list, and 
        the costs associated with the conveyance of surplus 
        property around such military installations for 
        purposes of creating buffer zones.
            (5) Options and recommendations for possible 
        legislative or budgetary changes necessary to mitigate 
        current and anticipated future civilian community 
        encroachment problems.
    (c) Matters To Be Included With Respect to Compliance With 
Specified Laws.--With respect to paragraphs (2) and (3) of 
subsection (a), the study shall include the following:
            (1) A list of all military installations and other 
        locations at which the Armed Forces are encountering 
        problems related to compliance with the laws specified 
        in such paragraphs.
            (2) A description and analysis of the types and 
        degree of compliance problems encountered.
            (3) An analysis, including views and estimates of 
        the Secretary of Defense, of the current and potential 
        future impact of such compliance problems on the 
        following functions performed at military 
        installations:
                    (A) Operational training activities.
                    (B) Research, development, test, and 
                evaluation activities.
                    (C) Other significant operational, test and 
                evaluation, maintenance, storage, disposal, or 
                other support functions.
            (4) A description and explanation of the trends of 
        such compliance problems, as well as consideration of 
        potential future readiness problems resulting from such 
        compliance problems.
    (d) Plan To Respond to Encroachment Issues.--On the basis 
of the study conducted under subsection (a), including the 
specific matters required to be addressed by subsections (b) 
and (c), the Secretary of Defense shall prepare a plan to 
respond to the encroachment issues described in subsection (a) 
affecting military installations and operational ranges.
    (e) Reporting Requirements.--The Secretary of Defense shall 
submit to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives the 
following reports regarding the study conducted under 
subsection (a), including the specific matters required to be 
addressed by subsections (b) and (c):
            (1) Not later than January 31, 2004, an interim 
        report describing the progress made in conducting the 
        study and containing the information collected under 
        the study as of that date.
            (2) Not later than January 31, 2006, a report 
        containing the results of the study and the 
        encroachment response plan required by subsection (d).
            (3) Not later than January 31, 2007, and each 
        January 31 thereafter through January 31, 2010, a 
        report describing the progress made in implementing the 
        encroachment response plan.

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

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

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

    (a) Task Force.--The Secretary of Defense shall establish a 
task force to determine and assess various means of resolving 
the conflict between the dual objectives at Barry M. Goldwater 
Range, Arizona, of the full utilization of live ordnance 
delivery areas for military training and the protection of 
endangered species that are present at Barry M. Goldwater 
Range.
    (b) Composition.--The task force shall be composed of the 
following members:
            (1) The Air Force range officer, who shall serve as 
        chairperson of the task force.
            (2) The range officer at Barry M. Goldwater Range.
            (3) The commander of Luke Air Force Base, Arizona.
            (4) The commander of Marine Corps Air Station, 
        Yuma, Arizona.
            (5) The Director of the United States Fish and 
        Wildlife Service.
            (6) The manager of the Cabeza Prieta National 
        Wildlife Refuge, Arizona.
            (7) A representative of the Department of Game and 
        Fish of the State of Arizona, selected by the Secretary 
        in consultation with the Governor of the State of 
        Arizona.
            (8) A representative of a wildlife interest group 
        in the State of Arizona, selected by the Secretary in 
        consultation with wildlife interest groups in the State 
        of Arizona.
            (9) A representative of an environmental interest 
        group (other than a wildlife interest group) in the 
        State of Arizona, as selected by the Secretary in 
        consultation with environmental interest groups in the 
        State of Arizona.
    (c) Duties.--The task force shall--
            (1) assess the effects of the presence of 
        endangered species on military training activities in 
        the live ordnance delivery areas at Barry M. Goldwater 
        Range and in any other areas of the range that are 
        adversely effected by the presence of endangered 
        species;
            (2) determine various means of addressing any 
        significant adverse effects on military training 
        activities on Barry M. Goldwater Range that are 
        identified pursuant to paragraph (1); and
            (3) determine the benefits and costs associated 
        with the implementation of each means identified under 
        paragraph (2).
    (d) Use of Experts.--The chairperson of the task force may 
secure for the task force the services of such experts with 
respect to the duties of the task force as the chairperson 
considers advisable to carry out such duties.
    (e) Report.--Not later than February 28, 2005, the task 
force shall submit to Congress a report containing--
            (1) a description of the assessments and 
        determinations made under subsection (c);
            (2) such recommendations for legislative and 
        administrative action as the task force considers 
        appropriate; and
            (3) an evaluation of the utility of task force 
        proceedings as a means of resolving conflicts between 
        military training objectives and protection of 
        endangered species at other military training and 
        testing ranges.

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

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

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

    (a) Requirement for Review.--The Comptroller General shall 
conduct a review of the Arctic Military Environmental 
Cooperation program, including--
            (1) the current and proposed technology development 
        and demonstration role of the program in United States 
        nonproliferation efforts; and
            (2) the relationship of the program to the 
        Cooperative Threat Reduction Program specified in 
        section 1501(b) of the National Defense Authorization 
        Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 
        2731; 50 U.S.C. 2362 note).
    (b) Elements of Review.--The review shall include an 
assessment of the following:
            (1) Whether the conditions in the Western Pacific 
        region require an expansion of the Arctic Military 
        Environmental Cooperation program to include that 
        region.
            (2) The extent to which foreign countries, 
        including Russia, make financial contributions to the 
        program.
            (3) The extent to which the Cooperative Threat 
        Reduction Program and the G-8 Global Partnership 
        Against the Spread of Weapons and Materials of Mass 
        Destruction Initiative use the program.
            (4) Whether the program is important to the 
        disarmament and nonproliferation functions of the 
        Cooperative Threat Reduction Program.
            (5) Future-year funding and program plans of the 
        Department of Defense for the program.
    (c) Report on Review.--Not later than May 1, 2004, the 
Comptroller General shall submit to Congress a report 
containing the results of the review.

                 Subtitle C--Workplace and Depot Issues

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    (a) Demonstration Project Required.--In accordance with 
section 4703 of title 5, United States Code, the Secretary of 
the Navy shall carry out a demonstration project under which 
three Naval Aviation Depots are given the flexibility to 
promote by one grade level workers who are certified at the 
journey level as able to perform multiple trades.
    (b) Selection Requirements.--As a condition on eligibility 
for selection to participate in the demonstration project, the 
head of a Naval Aviation Depot shall submit to the Secretary a 
business case analysis and concept plan--
            (1) that, on the basis of the results of analysis 
        of work processes, demonstrate that process 
        improvements would result from the trade combinations 
        proposed to be implemented under the demonstration 
        project; and
            (2) that describes the improvements in cost, 
        quality, or schedule of work that are anticipated to 
        result from the participation in the demonstration 
        project.
    (c) Participating Workers.--(1) Actual worker participation 
in the demonstration project shall be determined through 
competitive selection. Not more than 15 percent of the wage 
grade journeyman at a demonstration project location may be 
selected to participate.
    (2) Job descriptions and competency-based training plans 
must be developed for each worker while in training under the 
demonstration project and once certified as a multi-trade 
worker. A certified multi-trade worker who receives a pay grade 
promotion under the demonstration project must use each new 
skill during at least 25 percent of the worker's work year.
    (d) Funding Source.--Appropriations for operation and 
maintenance of the Naval Aviation Depots selected to 
participate in the demonstration project shall be used as the 
source of funds to carry out the demonstration project, 
including the source of funds for pay increases made under the 
project.
    (e) Duration.--The demonstration project shall be conducted 
during fiscal years 2004 through 2006.
    (f) Report.--Not later than January 15, 2007, the Secretary 
shall submit a report to Congress describing the results of the 
demonstration project.
    (g) GAO Evaluation.--The Secretary shall transmit a copy of 
the report to the Comptroller General. Within 90 days after 
receiving the report, the Comptroller General shall submit to 
Congress an evaluation of the report.

                       Subtitle D--Other Matters

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

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

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

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

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

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

SEC. 344. DEPARTMENT OF DEFENSE TELECOMMUNICATIONS BENEFIT.

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

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

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

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

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

                       Subtitle B--Reserve Forces

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

              Subtitle C--Authorizations of Appropriations

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

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

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

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

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

SEC. 403. PERSONNEL STRENGTH AUTHORIZATION AND ACCOUNTING PROCESS.

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

                       Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

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

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

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

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

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

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

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

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

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

              Subtitle C--Authorizations of Appropriations

SEC. 421. MILITARY PERSONNEL.

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

SEC. 422. ARMED FORCES RETIREMENT HOME.

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

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Matters

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

                  Subtitle B--Reserve Component Matters

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

             Subtitle C--ROTC and Military Service Academies

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

        Subtitle D--Other Military Education and Training Matters

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

                   Subtitle E--Administrative Matters

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

                  Subtitle F--Military Justice Matters

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

                          Subtitle G--Benefits

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

                      Subtitle H--Domestic Violence

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

                        Subtitle I--Other Matters

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

                 Subtitle A--Officer Personnel Matters

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                 Subtitle B--Reserve Component Matters

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

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

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

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

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

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

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

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

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

    Section 12304 of title 10, United States Code, is amended--
            (1) in subsection (b)(2), by striking 
        ``catastrophic'' and inserting ``significant''; and
            (2) by adding at the end of subsection (c) the 
        following new paragraph:
    ``(3) No unit or member of a reserve component may be 
ordered to active duty under this section to provide assistance 
referred to in subsection (b) unless the President determines 
that the requirements for responding to an emergency referred 
to in that subsection have exceeded, or will exceed, the 
response capabilities of local, State, and Federal civilian 
agencies.''.

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

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

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

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

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

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

            Subtitle C--ROTC and Military Service Academies

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

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

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

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

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

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

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

    ``(a) Authority.--A member of the program who has completed 
successfully the first year of a four-year Senior Reserve 
Officers' Training Corps course and who is not eligible for 
advanced training under section 2104 of this title and is not a 
cadet or midshipman appointed under section 2107 of this title 
may--
            ``(1) contract with the Secretary of the military 
        department concerned, or the Secretary's designated 
        representative, to serve for the period required by the 
        program; and
            ``(2) agree in writing to accept an appointment, if 
        offered, as a commissioned officer in the Army, Navy, 
        Air Force, or Marine Corps, as the case may be, and to 
        serve in the armed forces for the period prescribed by 
        the Secretary.
    ``(b) Eligibilty Requirements.--A member of the program may 
enter into a contract and agreement under this section (and 
receive a subsistence allowance under section 209(c) of title 
37) only if the person--
            ``(1) is a citizen of the United States;
            ``(2) enlists in an armed force under the 
        jurisdiction of the Secretary of the military 
        department concerned for the period prescribed by the 
        Secretary; and
            ``(3) executes a certificate of loyalty in such 
        form as the Secretary of Defense prescribes or take a 
        loyalty oath as prescribed by the Secretary.
    ``(c) Parental Consent for Minors.--A member of the program 
who is a minor may enter into a contract under subsection 
(a)(1) only with the consent of the member's parent or 
guardian.
    ``(d) Termination of Authority.--No contract may be entered 
into under subsection (a)(1) after December 31, 2006.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 2103 
the following new item:

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

    (c) Effective Date.--The amendments made by subsections (a) 
and (b) shall take effect on January 1, 2004.

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

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

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

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

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

    (a) Establishment.--The Secretary of Defense shall 
establish a Department of Defense task force to examine matters 
relating to sexual harassment and violence at the United States 
Military Academy and the United States Naval Academy.
    (b) Recommendations.--Not later than 12 months after the 
date on which all members of the task force have been 
appointed, the task force shall submit to the Secretary of 
Defense a report recommending ways by which the Department of 
Defense and the Department of the Army and the Department of 
the Navy may more effectively address matters relating to 
sexual harassment and violence at the United States Military 
Academy and the United States Naval Academy, respectively. The 
report shall include an assessment of, and recommendations 
(including any recommended changes in law) for measures to 
improve, with respect to sexual harassment and violence at 
those academies, the following:
            (1) Victims' safety programs.
            (2) Offender accountability.
            (3) Effective prevention of sexual harassment and 
        violence.
            (4) Collaboration among military organizations with 
        responsibility or jurisdiction with respect to sexual 
        harassment and violence.
            (5) Coordination between military and civilian 
        communities, including local support organizations, 
        with respect to sexual harassment and violence.
            (6) Coordination between military and civilian 
        communities, including civilian law enforcement 
        relating to acts of sexual harassment and violence.
            (7) Data collection and case management and 
        tracking.
            (8) Curricula and training, including standard 
        training programs for cadets at the United States 
        Military Academy and midshipmen at the United States 
        Naval Academy and for permanent personnel assigned to 
        those academies.
            (9) Responses to sexual harassment and violence at 
        those academies, including standard guidelines.
            (10) Other issues identified by the task force 
        relating to sexual harassment and violence at those 
        academies.
    (c) Methodology.--The task force shall consider the 
findings and recommendations of previous reviews and 
investigations of sexual harassment and violence conducted for 
those academies as one of the bases for its assessment.
    (d) Report.--(1) The task force shall submit to the 
Secretary of Defense and the Secretaries of the Army and the 
Navy a report on the activities of the task force and on the 
activities of the United States Military Academy and the United 
States Naval Academy to respond to sexual harassment and 
violence at those academies.
    (2) The report shall include the following:
            (A) Any barriers to implementation of improvements 
        as a result of those efforts.
            (B) Other areas of concern not previously addressed 
        in prior reports.
            (C) The findings and conclusions of the task force.
            (D) Any recommendations for changes to policy and 
        law as the task force considers appropriate, including 
        whether cases of sexual assault at those academies 
        should be included in the Department of Defense 
        database known as the Defense Incident-Based Reporting 
        System.
    (3) Within 90 days after receipt of the report under 
paragraph (1) the Secretary of Defense shall submit the report, 
together with the Secretary's evaluation of the report, to the 
Committees on Armed Services of the Senate and House of 
Representatives.
    (e) Report on Air Force Academy.--Simultaneously with the 
submission of the report under subsection (d)(3), the Secretary 
of Defense, in coordination with the Secretary of the Air 
Force, shall submit to the committees specified in that 
subsection the Secretary's assessment of the effectiveness of 
corrective actions being taken at the United States Air Force 
Academy as a result of various investigations conducted at that 
Academy into matters involving sexual assault and harassment.
    (f) Composition.--(1) The task force shall consist of not 
more than 14 members, to be appointed by the Secretary of 
Defense. Members shall be appointed from each of the Army, 
Navy, Air Force, and Marine Corps, and shall include an equal 
number of personnel of the Department of Defense (military and 
civilian) and persons from outside the Department of Defense. 
Members appointed from outside the Department of Defense may be 
appointed from other Federal departments and agencies, from 
State and local agencies, or from the private sector.
    (2) The Secretary shall ensure that the membership of the 
task force appointed from the Department of Defense includes at 
least one judge advocate.
    (3) In appointing members to the task force, the Secretary 
may--
            (A) consult with the Attorney General regarding a 
        representative from the Office of Violence Against 
        Women of the Department of Justice; and
            (B) consult with the Secretary of Health and Human 
        Services regarding a representative from the Women's 
        Health office of the Department of Health and Human 
        Services.
    (4) Each member of the task force appointed from outside 
the Department of Defense shall be an individual who has 
demonstrated expertise in the area of sexual harassment and 
violence or shall be appointed from one of the following:
            (A) A representative from the Office of Civil 
        Rights of the Department of Education.
            (B) A representative from the Centers for Disease 
        Control and Prevention of the Department of Health and 
        Human Services.
            (C) A sexual assault policy and advocacy 
        organization.
            (D) A civilian law enforcement agency.
            (E) A judicial policy organization.
            (F) A national crime victim policy organization.
    (5) The members of the task force shall be appointed not 
later than 120 days after the date of the enactment of this 
Act.
    (g) Co-Chairs of the Task Force.--There shall be two co-
chairs of the task force. One of the co-chairs shall be 
designated by the Secretary of the Defense at the time of 
appointment from among the Department of Defense personnel on 
the task force. The other co-chair shall be selected from among 
the members appointed from outside the Department of Defense by 
those members.
    (h) Administrative Support.--(1) Each member of the task 
force who is a member of the Armed Forces or a civilian officer 
or employee of the United States shall serve without 
compensation (other than compensation to which entitled as a 
member of the Armed Forces or an officer or employee of the 
United States, as the case may be). Other members of the task 
force shall be appointed in accordance with, and subject to, 
section 3161 of title 5, United States Code.
    (2) The Deputy Under Secretary of Defense for Personnel and 
Readiness, under the direction of the Under Secretary of 
Defense for Personnel and Readiness, shall provide oversight of 
the task force. The Washington Headquarters Services of the 
Department of Defense shall provide the task force with 
personnel, facilities, and other administrative support as 
necessary for the performance of the task force's duties.
    (3) The Deputy Under Secretary shall coordinate with the 
Secretary of the Army to provide visits of the task force to 
the United States Military Academy and with the Secretary of 
the Navy to provide visits of the task force to the United 
States Naval Academy.
    (i) Termination.--The task force shall terminate 90 days 
after the date on which the report of the task force is 
submitted to the Committees on Armed Services of the Senate and 
House of Representatives pursuant to subsection (d)(3).

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

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

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

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

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

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

       Subtitle D--Other Military Education and Training Matters

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

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

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

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

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

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

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

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

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

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

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

    (a) Continuation of Department of Defense Program for 
Fiscal Year 2004.--Of the amount authorized to be appropriated 
pursuant to section 301(5) for operation and maintenance for 
Defense-wide activities, $30,000,000 shall be available only 
for the purpose of providing educational agencies assistance to 
local educational agencies.
    (b) Notification.--Not later than June 30, 2004, the 
Secretary of Defense shall notify each local educational agency 
that is eligible for educational agencies assistance for fiscal 
year 2004 of--
            (1) that agency's eligibility for the assistance; 
        and
            (2) the amount of the assistance for which that 
        agency is eligible.
    (c) Disbursement of Funds.--The Secretary of Defense shall 
disburse funds made available under subsection (a) not later 
than 30 days after the date on which notification to the 
eligible local educational agencies is provided pursuant to 
subsection (b).
    (d) Definitions.--In this section:
            (1) The term ``educational agencies assistance'' 
        means assistance authorized under section 386(b) of the 
        National Defense Authorization Act for Fiscal Year 1993 
        (Public Law 102-484; 20 U.S.C. 7703 note).
            (2) The term ``local educational agency'' has the 
        meaning given that term in section 8013(9) of the 
        Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 7713(9)).

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

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

                   Subtitle D--Administrative Matters

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SEC. 546. POLICY ON PUBLIC IDENTIFICATION OF CASUALTIES.

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

SEC. 547. SPACE PERSONNEL CAREER FIELDS.

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

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

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

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

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

                  Subtitle E--Military Justice Matters

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

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

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

    Section 911 of title 10, United States Code (article 111 of 
the Uniform Code of Military Justice), is amended--
            (1) in subsection (a)(2), by striking ``is in 
        excess of'' and inserting ``is equal to or exceeds''; 
        and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking 
                subparagraph (A) and inserting the following:
            ``(A) In the case of the operation or control of a 
        vehicle, aircraft, or vessel in the United States, such 
        limit is the lesser of--
                    ``(i) the blood alcohol content limit under 
                the law of the State in which the conduct 
                occurred, except as may be provided under 
                paragraph (2) for conduct on a military 
                installation that is in more than one State; or
                    ``(ii) the blood alcohol content limit 
                specified in paragraph (3).'';
                    (B) in paragraphs (1)(B) and (3), by 
                striking ``maximum''; and
                    (C) in paragraph (4)(A), by striking 
                ``maximum permissible'' and all that follows 
                through the period at the end and inserting 
                ``amount of alcohol concentration in a person's 
                blood or breath at which operation or control 
                of a vehicle, aircraft, or vessel is 
                prohibited.''.

                          Subtitle F--Benefits

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

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

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

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

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

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

          ``SPACE-AVAILABLE ENROLLMENT OF STUDENTS; TUITION''.

                     Subtitle G--Domestic Violence

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

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

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

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

SEC. 573. EXCEPTIONAL ELIGIBILITY FOR TRANSITIONAL COMPENSATION.

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

SEC. 574. TYPES OF ADMINISTRATIVE SEPARATIONS TRIGGERING COVERAGE.

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

SEC. 575. COMPTROLLER GENERAL REVIEW AND REPORT.

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

SEC. 576. FATALITY REVIEWS.

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

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

``Sec.
``4061. Fatality reviews.

``Sec. 4061. Fatality reviews

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

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

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

``Sec. 6036. Fatality reviews

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

``6036. Fatality reviews.''.

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

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

``Sec.
``9061. Fatality reviews.

``Sec. 9061. Fatality reviews

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

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

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

SEC. 577. SENSE OF CONGRESS.

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

                       Subtitle H--Other Matters

SEC. 581. RECOGNITION OF MILITARY FAMILIES.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SEC. 587. STUDY OF NATIONAL GUARD CHALLENGE PROGRAM.

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

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

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

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

            Subtitle C--Travel and Transportation Allowances

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

              Subtitle D--Retired Pay and Survivor Benefits

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

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

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

                        Subtitle F--Other Matters

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

                     Subtitle A--Pay and Allowances

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

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


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


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


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


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

SEC. 602. REVISED ANNUAL PAY ADJUSTMENT PROCESS.

    (a) Requirement for Annual Adjustment.--Subsection (a) of 
section 1009 of title 37, United States Code, is amended to 
read as follows:
    ``(a) Requirement for Annual Adjustment.--Effective on 
January 1 of each year, the rates of basic pay for members of 
the uniformed services under section 203(a) of this title shall 
be increased under this section.''.
    (b) Effectiveness of Adjustment.--Subsection (b) of such 
section is amended by striking ``shall--'' and all that follows 
and inserting ``shall have the force and effect of law.''.
    (c) Percentage of Adjustment; Alternative Pay Adjustment 
Authority.--Such section is further amended--
            (1) by striking subsections (c), (d), (e), and (g);
            (2) by redesignating subsection (f) as subsection 
        (d);
            (3) by inserting after subsection (b) the following 
        new subsection (c):
    ``(c) Equal Percentage Increase for All Members.--(1) An 
adjustment made under this section in a year shall provide all 
eligible members with an increase in the monthly basic pay that 
is the percentage (rounded to the nearest one-tenth of one 
percent) by which the ECI for the base quarter of the year 
before the preceding year exceeds the ECI for the base quarter 
of the second year before the preceding calendar year (if at 
all).
    ``(2) Notwithstanding paragraph (1), but subject to 
subsection (d), the percentage of the adjustment taking effect 
under this section during each of fiscal years 2004, 2005, and 
2006, shall be one-half of one percentage point higher than the 
percentage that would otherwise be applicable under such 
paragraph.
    ``(3) In this subsection:
            ``(A) The term `ECI' means the Employment Cost 
        Index (wages and salaries, private industry workers) 
        published quarterly by the Bureau of Labor Statistics.
            ``(B) The term `base quarter' for any year is the 
        three-month period ending on September 30 of such 
        year.''; and
            (4) by adding at the end the following new 
        subsection:
    ``(e) Presidential Determination of Need for Alternative 
Pay Adjustment.--(1) If, because of national emergency or 
serious economic conditions affecting the general welfare, the 
President considers the pay adjustment which would otherwise be 
required by this section in any year to be inappropriate, the 
President shall prepare and transmit to Congress before 
September 1 of the preceding year a plan for such alternative 
pay adjustments as the President considers appropriate, 
together with the reasons therefor.
    ``(2) In evaluating an economic condition affecting the 
general welfare under this subsection, the President shall 
consider pertinent economic measures including the Indexes of 
Leading Economic Indicators, the Gross Domestic Product, the 
unemployment rate, the budget deficit, the Consumer Price 
Index, the Producer Price Index, the Employment Cost Index, and 
the Implicit Price Deflator for Personal Consumption 
Expenditures.
    ``(3) The President shall include in the plan submitted to 
Congress under paragraph (1) an assessment of the impact that 
the alternative pay adjustments proposed in the plan would have 
on the Government's ability to recruit and retain well-
qualified persons for the uniformed services.''.

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

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

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

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

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

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

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

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

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

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

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

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

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

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

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

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

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

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

    (a) Eligibility.--Section 306 of title 37, United States 
Code, is amended--
            (1) in subsection (a)--
                    (A) by inserting ``(1)'' after ``(a)'';
                    (B) by striking ``who is entitled to the 
                basic pay of pay grade O-6 or below and'' and 
                inserting ``described in paragraph (2)''; and
                    (C) by adding at the end the following new 
                paragraph:
    ``(2) An officer of the armed forces referred to in 
paragraph (1) is an officer who is entitled to the basic pay 
under section 204 of this title, or the compensation under 
section 206 of this title, of pay grade O-6 or below.'';
            (2) by redesignating subsections (b) through (e) as 
        subsections (c) through (f), respectively; and
            (3) by inserting after subsection (a) the following 
        new subsection (b):
    ``(b) If an officer entitled to compensation under section 
206 of this title is paid special pay under subsection (a) for 
the performance of duties in a position designated under such 
subsection, the special pay shall be paid at the rate of \1/30\ 
of the monthly rate authorized by such subsection for each day 
of the performance of duties in the designated position.''.
    (b) Limitation.--Subsection (d) of such section, as 
redesignated by subsection (a)(2) of this section, is amended--
            (1) by inserting ``(1)'' after ``(d)'';
            (2) in paragraph (1), as so designated, by 
        inserting ``or mobilization in support of a contingency 
        operation'' after ``training''; and
            (3) by adding at the end the following new 
        paragraph:
    ``(2) Of the number of officers in the Selected Reserve of 
the Ready Reserve of an armed force who are not on active duty 
(other than for training or mobilization in support of a 
contingency operation), not more than 5 percent of the number 
of such officers in each of the pay grades O-3 and below, and 
not more than 10 percent of the number of such officers in pay 
grade O-4, O-5, or O-6, may be paid special pay under 
subsection (b).''.

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

    Section 308b of title 37, United States Code, as amended by 
section 611(a), is further amended--
            (1) by redesignating subsections (d), (e), and (f) 
        as subsections (e), (f), and (g), respectively; and
            (2) by inserting after subsection (c) the following 
        new subsection (d):
    ``(d) Payment to Mobilized Members.--A member entitled to a 
bonus under this section who is called or ordered to active 
duty shall be paid, during that period of active duty, any 
amount of the bonus that becomes payable to the member during 
that period of active duty.''.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    ``(a) Special Pay Authorized.--The Secretary of a military 
department may pay special pay under this subsection to members 
of an armed force under the jurisdiction of the Secretary who 
are entitled to basic pay under section 204 and are assigned by 
orders to duty as members of a Weapons of Mass Destruction 
Civil Support Team if the Secretary determines that the payment 
of such special pay is needed to address recruitment or 
retention concerns in that armed force.
    ``(b) Monthly Rate.--The monthly rate of special pay under 
subsection (a) may not exceed $150.
    ``(c) Inclusion of Reserve Component Members Performing 
Inactive Duty Training.--(1) To the extent funds are made 
available to carry out this subsection, the Secretary of a 
military department may pay the special pay under subsection 
(a) to members of a reserve component of the armed forces who 
are entitled to compensation under section 206 of this title 
and who perform duty under orders as members of a Weapons of 
Mass Destruction Civil Support Team.
    ``(2) The amount of the special pay for a member referred 
to in paragraph (1) shall be equal to \1/30\ of the monthly 
special pay rate in effect under subsection (b) for each day on 
which the member performs duty under orders as members of a 
Weapons of Mass Destruction Civil Support Team.
    ``(d) Regulations.--Special pay under this section shall be 
provided in accordance with regulations prescribed by the 
Secretary of Defense.
    ``(e) Definition.--In this section, the term `Weapons of 
Mass Destruction Civil Support Team' means a team of members of 
the reserve components of the armed forces that is established 
under section 12310(c) of title 10 in support of emergency 
preparedness programs to prepare for or to respond to any 
emergency involving the use of a weapon of mass destruction.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 305a the following new item:

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

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

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

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

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

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

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

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

            Subtitle C--Travel and Transportation Allowances

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

             Subtitle D--Retired Pay and Survivor Benefits

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

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

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

    ``(a) Payment of Both Retired Pay and Compensation.--
            ``(1) In general.--Subject to subsection (b), a 
        member or former member of the uniformed services who 
        is entitled for any month to retired pay and who is 
        also entitled for that month to veterans' disability 
        compensation for a qualifying service-connected 
        disability (hereinafter in this section referred to as 
        a `qualified retiree') is entitled to be paid both for 
        that month without regard to sections 5304 and 5305 of 
        title 38. During the period beginning on January 1, 
        2004, and ending on December 31, 2013, payment of 
        retired pay to such a qualified retiree is subject to 
        subsection (c).
            ``(2) Qualifying service-connected disability.--In 
        this section, the term `qualifying service-connected 
        disability' means a service-connected disability or 
        combination of service-connected disabilities that is 
        rated as not less than 50 percent disabling by the 
        Secretary of Veterans Affairs.
    ``(b) Special Rules for Chapter 61 Disability Retirees.--
            ``(1) Career retirees.--The retired pay of a member 
        retired under chapter 61 of this title with 20 years or 
        more of service otherwise creditable under section 1405 
        of this title, or at least 20 years of service computed 
        under section 12732 of this title, at the time of the 
        member's retirement is subject to reduction under 
        sections 5304 and 5305 of title 38, but only to the 
        extent that the amount of the member's retired pay 
        under chapter 61 of this title exceeds the amount of 
        retired pay to which the member would have been 
        entitled under any other provision of law based upon 
        the member's service in the uniformed services if the 
        member had not been retired under chapter 61 of this 
        title.
            ``(2) Disability retirees with less than 20 years 
        of service.--Subsection (a) does not apply to a member 
        retired under chapter 61 of this title with less than 
        20 years of service otherwise creditable under section 
        1405 of this title, or with less than 20 years of 
        service computed under section 12732 of this title, at 
        the time of the member's retirement.
    ``(c) Phase-in of Full Concurrent Receipt.--During the 
period beginning on January 1, 2004, and ending on December 31, 
2013, retired pay payable to a qualified retiree shall be 
determined as follows:
            ``(1) Calendar year 2004.--For a month during 2004, 
        the amount of retired pay payable to a qualified 
        retiree is the amount (if any) of retired pay in excess 
        of the current baseline offset plus the following:
                    ``(A) For a month for which the retiree 
                receives veterans' disability compensation for 
                a disability rated as total, $750.
                    ``(B) For a month for which the retiree 
                receives veterans' disability compensation for 
                a disability rated as 90 percent, $500.
                    ``(C) For a month for which the retiree 
                receives veterans' disability compensation for 
                a disability rated as 80 percent, $350.
                    ``(D) For a month for which the retiree 
                receives veterans' disability compensation for 
                a disability rated as 70 percent, $250.
                    ``(E) For a month for which the retiree 
                receives veterans' disability compensation for 
                a disability rated as 60 percent, $125.
                    ``(F) For a month for which the retiree 
                receives veterans' disability compensation for 
                a disability rated as 50 percent, $100.
            ``(2) Calendar year 2005.--For a month during 2005, 
        the amount of retired pay payable to a qualified 
        retiree is the sum of--
                    ``(A) the amount specified in paragraph (1) 
                for that qualified retiree; and
                    ``(B) 10 percent of the difference between 
                (i) the current baseline offset, and (ii) the 
                amount specified in paragraph (1) for that 
                member's disability.
            ``(3) Calendar year 2006.--For a month during 2006, 
        the amount of retired pay payable to a qualified 
        retiree is the sum of--
                    ``(A) the amount determined under paragraph 
                (2) for that qualified retiree; and
                    ``(B) 20 percent of the difference between 
                (i) the current baseline offset, and (ii) the 
                amount determined under paragraph (2) for that 
                qualified retiree.
            ``(4) Calendar year 2007.--For a month during 2007, 
        the amount of retired pay payable to a qualified 
        retiree is the sum of--
                    ``(A) the amount determined under paragraph 
                (3) for that qualified retiree; and
                    ``(B) 30 percent of the difference between 
                (i) the current baseline offset, and (ii) the 
                amount determined under paragraph (3) for that 
                qualified retiree.
            ``(5) Calendar year 2008.--For a month during 2008, 
        the amount of retired pay payable to a qualified 
        retiree is the sum of--
                    ``(A) the amount determined under paragraph 
                (4) for that qualified retiree; and
                    ``(B) 40 percent of the difference between 
                (i) the current baseline offset, and (ii) the 
                amount determined under paragraph (4) for that 
                qualified retiree.
            ``(6) Calendar year 2009.--For a month during 2009, 
        the amount of retired pay payable to a qualified 
        retiree is the sum of--
                    ``(A) the amount determined under paragraph 
                (5) for that qualified retiree; and
                    ``(B) 50 percent of the difference between 
                (i) the current baseline offset, and (ii) the 
                amount determined under paragraph (5) for that 
                qualified retiree.
            ``(7) Calendar year 2010.--For a month during 2010, 
        the amount of retired pay payable to a qualified 
        retiree is the sum of--
                    ``(A) the amount determined under paragraph 
                (6) for that qualified retiree; and
                    ``(B) 60 percent of the difference between 
                (i) the current baseline offset, and (ii) the 
                amount determined under paragraph (6) for that 
                qualified retiree.
            ``(8) Calendar year 2011.--For a month during 2011, 
        the amount of retired pay payable to a qualified 
        retiree is the sum of--
                    ``(A) the amount determined under paragraph 
                (7) for that qualified retiree; and
                    ``(B) 70 percent of the difference between 
                (i) the current baseline offset, and (ii) the 
                amount determined under paragraph (7) for that 
                qualified retiree.
            ``(9) Calendar year 2012.--For a month during 2012, 
        the amount of retired pay payable to a qualified 
        retiree is the sum of--
                    ``(A) the amount determined under paragraph 
                (8) for that qualified retiree; and
                    ``(B) 80 percent of the difference between 
                (i) the current baseline offset, and (ii) the 
                amount determined under paragraph (8) for that 
                qualified retiree.
            ``(10) Calendar year 2013.--For a month during 
        2013, the amount of retired pay payable to a qualified 
        retiree is the sum of--
                    ``(A) the amount determined under paragraph 
                (9) for that qualified retiree; and
                    ``(B) 90 percent of the difference between 
                (i) the current baseline offset, and (ii) the 
                amount determined under paragraph (9) for that 
                qualified retiree.
            ``(11) General limitation.--Retired pay determined 
        under this subsection for a qualified retiree, if 
        greater than the amount of retired pay otherwise 
        applicable to that qualified retiree, shall be reduced 
        to the amount of retired pay otherwise applicable to 
        that qualified retiree.
    ``(d) Coordination With Combat-Related Special Compensation 
Program.--
            ``(1) In general.--A person who is a qualified 
        retiree under this section and is also an eligible 
        combat-related disabled uniformed services retiree 
        under section 1413a of this title may receive special 
        compensation in accordance with that section or retired 
        pay in accordance with this section, but not both.
            ``(2) Annual open season.--The Secretary concerned 
        shall provide for an annual period (referred to as an 
        `open season') during which a person described in 
        paragraph (1) shall have the right to make an election 
        to change from receipt of special compensation in 
        accordance with section 1413a of this title to receipt 
        of retired pay in accordance with this section, or the 
        reverse, as the case may be. Any such election shall be 
        made under regulations prescribed by the Secretary 
        concerned. Such regulations shall provide for the form 
        and manner for making such an election and shall 
        provide for the date as of when such an election shall 
        become effective. In the case of the Secretary of a 
        military department, such regulations shall be subject 
        to approval by the Secretary of Defense.
    ``(e) Definitions.--In this section:
            ``(1) Retired pay.--The term `retired pay' includes 
        retainer pay, emergency officers' retirement pay, and 
        naval pension.
            ``(2) Veterans' disability compensation.--The term 
        `veterans' disability compensation' has the meaning 
        given the term `compensation' in section 101(13) of 
        title 38.
            ``(3) Disability rated as total.--The term 
        `disability rated as total' means--
                    ``(A) a disability, or combination of 
                disabilities, that is rated as total under the 
                standard schedule of rating disabilities in use 
                by the Department of Veterans Affairs; or
                    ``(B) a disability, or combination of 
                disabilities, for which the scheduled rating is 
                less than total but for which a rating of total 
                is assigned by reason of inability of the 
                disabled person concerned to secure or follow a 
                substantially gainful occupation as a result of 
                disabilities for which veterans' disability 
                compensation may be paid.
            ``(4) Current baseline offset.--
                    ``(A) In general.--The term `current 
                baseline offset' for any qualified retiree 
                means the amount for any month that is the 
                lesser of--
                            ``(i) the amount of the applicable 
                        monthly retired pay of the qualified 
                        retiree for that month; and
                            ``(ii) the amount of monthly 
                        veterans' disability compensation to 
                        which the qualified retiree is entitled 
                        for that month.
                    ``(B) Applicable retired pay.--In 
                subparagraph (A), the term `applicable retired 
                pay' for a qualified retiree means the amount 
                of monthly retired pay to which the qualified 
                retiree is entitled, determined without regard 
                to this section or sections 5304 and 5305 of 
                title 38, except that in the case of such a 
                retiree who was retired under chapter 61 of 
                this title, such amount is the amount of 
                retired pay to which the member would have been 
                entitled under any other provision of law based 
                upon the member's service in the uniformed 
                services if the member had not been retired 
                under chapter 61 of this title.''.
    (b) Repeal of Superceded Special Compensation Authority.--
Section 1413 of title 10, United States Code, is repealed.
    (c) Source of Funds for Special Compensation Authorities 
for Department of Defense Retirees.--
            (1) Sections 1413(g) and 1413a(h) of title 10, 
        United States Code, are each amended--
                    (A) by inserting before ``Payments under'' 
                the following new sentence: ``Payments under 
                this section for a member of the Army, Navy, 
                Air Force, or Marine Corps shall be paid from 
                the Department of Defense Military Retirement 
                Fund.''; and
                    (B) by inserting ``for any other member'' 
                before ``for any fiscal year''.
            (2) Section 1463(a)(1) of such title is amended by 
        inserting before the semicolon the following: ``and 
        payments under section 1413, 1413a, or 1414 of this 
        title paid to such members''.
            (3) Section 1465(b) of such title is amended by 
        adding at the end the following new paragraph:
    ``(3) At the same time that the Secretary of Defense makes 
the determination required by paragraph (1) for any fiscal 
year, the Secretary shall determine the amount of the Treasury 
contribution to be made to the Fund for the next fiscal year 
under section 1466(b)(2)(D) of this title. That amount shall be 
determined in the same manner as the determination under 
paragraph (1) of the total amount of Department of Defense 
contributions to be made to the Fund during that fiscal year 
under section 1466(a) of this title, except that for purposes 
of this paragraph the Secretary, in making the calculations 
required by subparagraphs (A) and (B) of that paragraph, shall 
use the single level percentages determined under subsection 
(c)(4), rather than those determined under subsection 
(c)(1).''.
            (4) Section 1465(c) of such title is amended--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A), by 
                        inserting before the semicolon at the 
                        end the following: ``, to be determined 
                        without regard to section 1413, 1413a, 
                        or 1414 of this title'';
                            (ii) in subparagraph (B), by 
                        inserting before the period at the end 
                        the following: ``, to be determined 
                        without regard to section 1413, 1413a, 
                        or 1414 of this title''; and
                            (iii) in the sentence following 
                        subparagraph (B), by striking 
                        ``subsection (b)'' and inserting 
                        ``subsection (b)(1)'';
                    (B) by redesignating paragraph (4) as 
                paragraph (5); and
                    (C) by inserting after paragraph (3) the 
                following new paragraph (4):
    ``(4) Whenever the Secretary carries out an actuarial 
valuation under paragraph (1), the Secretary shall include as 
part of such valuation the following:
            ``(A) A determination of a single level percentage 
        determined in the same manner as applies under 
        subparagraph (A) of paragraph (1), but based only upon 
        the provisions of sections 1413, 1413a, and 1414 of 
        this title.
            ``(B) A determination of a single level percentage 
        determined in the same manner as applies under 
        subparagraph (B) of paragraph (1), but based only upon 
        the provisions of sections 1413, 1413a, and 1414 of 
        this title.
Such single level percentages shall be used for the purposes of 
subsection (b)(3).''.
            (5) Section 1466(b) of such title is amended--
                    (A) in paragraph (1), by striking 
                ``sections 1465(a) and 1465(c)'' and inserting 
                ``sections 1465(a), 1465(b)(3), 1465(c)(2), and 
                1465(c)(3)''; and
                    (B) by adding at the end of paragraph (2) 
                the following new subparagraph:
            ``(D) The amount for that year determined by the 
        Secretary of Defense under section 1465(b)(3) of this 
        title for the cost to the Fund arising from increased 
        amounts payable from the Fund by reason of section 
        1413, 1413a, or 1414 of this title.''.
            (6) The amendments made by this subsection shall 
        take effect as of October 1, 2003. The Secretary of 
        Defense shall provide for such administrative 
        adjustments as necessary to provide for payments made 
        for any period during fiscal year 2004 before the date 
        of the enactment of this Act to be treated as having 
        been made in accordance with such amendments and for 
        the provisions of such amendments to be implemented as 
        if enacted as of September 30, 2003.
    (d) Clerical Amendments.--The table of sections at the 
beginning of chapter 71 of such title is amended--
            (1) by striking the item relating to section 1413; 
        and
            (2) by striking the item relating to section 1414 
        and inserting the following:

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

    (e) Effective Date.--The amendments made by subsections (a) 
and (b) shall take effect on January 1, 2004, and shall apply 
to payments for months beginning on or after that date.

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

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

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

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

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

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

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

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

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

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

SEC. 645. SURVIVOR BENEFIT PLAN MODIFICATIONS.

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

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

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

SEC. 647. DEATH BENEFITS STUDY.

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

    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

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

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

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

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

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

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

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

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

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

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

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

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

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

    (a) Requirement That Commissary Operating Expenses Be Paid 
From Appropriated Funds.--Section 2484 of title 10, United 
States Code, is amended--
            (1) in subsection (a), by striking ``may'' and 
        inserting ``shall''; and
            (2) in subsection (b), by striking ``may'' in the 
        first sentence and inserting ``shall''.
    (b) Supplemental Funds for Commissary Operations.--Such 
section is further amended by adding at the end the following 
new subsection:
    ``(c) Supplemental Funds for Commissary Operations.--
Amounts appropriated to cover the expenses of operating the 
Defense Commissary Agency and the defense commissary system may 
be supplemented with additional funds from manufacturers' 
coupon redemption fees, handling fees for tobacco products, and 
other amounts received as reimbursement for other support 
activities provided by commissary activities.''.

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

    (a) 1988 Law.--Section 204(b)(7)(C) of the Defense 
Authorization Amendments and Base Closure and Realignment Act 
(Public Law 100-526; 10 U.S.C. 2687 note) is amended--
            (1) in the second sentence of clause (i), by 
        striking ``The Secretary may use amounts in the account 
        (in such an aggregate amount as is provided in advance 
        in appropriation Acts)'' and inserting ``Subject to the 
        limitation in clause (iii), amounts in the reserve 
        account are hereby made available to the Secretary, 
        without appropriation and until expended,'';
            (2) by redesignating clause (iii) as clause (iv); 
        and
            (3) by inserting after clause (ii) the following 
        new clause (iii):
    ``(iii) The aggregate amount obligated from the reserve 
account established under clause (i) may not exceed the 
following:
            ``(I) In fiscal year 2004, $31,000,000.
            ``(II) In fiscal year 2005, $24,000,000.
            ``(III) In fiscal year 2006, $15,000,000.''.
    (b) 1990 Law.--Section 2906(d)(3) of the Defense Base 
Closure and Realignment Act of 1990 (part A of title XXIX of 
Public Law 101-510; 10 U.S.C. 2687 note) is amended by striking 
``The Secretary may use amounts in the account (in such an 
aggregate amount as is provided in advance in appropriation 
Acts)'' and inserting ``Subject to the limitation contained in 
section 204(b)(7)(C)(iii) of the Defense Authorization 
Amendments and Base Closure and Realignment Act, amounts in the 
reserve account are hereby made available to the Secretary, 
without appropriation and until expended,''.

                       Subtitle F--Other Matters

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

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

                   TITLE VII--HEALTH CARE PROVISIONS

               Subtitle A--Enhanced Benefits for Reserves

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

                 Subtitle B--Other Benefits Improvements

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

            Subtitle C--Planning, Programming, and Management

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

               Subtitle A--Enhanced Benefits for Reserves

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

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

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

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

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

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

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

    Subsection (d) of section 1074 of title 10, United States 
Code, as amended by section 1116 of the Emergency Supplemental 
Appropriations Act for Defense and for the Reconstruction of 
Iraq and Afghanistan, 2004, is amended to read as follows:
    ``(d)(1) For the purposes of this chapter, a member of a 
reserve component of the armed forces who is issued a delayed-
effective-date active-duty order, or is covered by such an 
order, shall be treated as being on active duty for a period of 
more than 30 days beginning on the later of the date that is--
            ``(A) the date of the issuance of such order; or
            ``(B) 90 days before the date on which the period 
        of active duty is to commence under such order for that 
        member.
    ``(2) In this subsection, the term `delayed-effective-date 
active-duty order' means an order to active duty for a period 
of more than 30 days in support of a contingency operation 
under a provision of law referred to in section 101(a)(13)(B) 
of this title that provides for active-duty service to begin 
under such order on a date after the date of the issuance of 
the order.
    ``(3) This subsection shall cease to be effective on 
December 31, 2004.''.

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

    (a) Extension.--Subject to subsection (b), and 
notwithstanding section 1117 of the Emergency Supplemental 
Appropriations Act for Defense and for the Reconstruction of 
Iraq and Afghanistan, 2004, during the period beginning on the 
date of the enactment of this Act and ending on December 31, 
2004, section 1145(a) of title 10, United States Code, shall be 
administered by substituting for paragraph (3) the following:
            ``(3) Transitional health care for a member under 
        subsection (a) shall be available for 180 days 
        beginning on the date on which the member is separated 
        from active duty.''.
    (b) Effective Date.--(1) Subsection (a) shall apply with 
respect to separations from active duty that take effect on or 
after the date of the enactment of this Act.
    (2) Beginning on January 1, 2005, the period for which a 
member is provided transitional health care benefits under 
section 1145(a) of title 10, United States Code, shall be 
adjusted as necessary to comply with the limits provided under 
paragraph (3) of such section.

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

    (a) GAO Evaluation of Needs of Reserve Components for 
Health Care Benefits.--The Comptroller General shall evaluate 
the needs of members of the reserve components of the Armed 
Forces and their families for obtaining and maintaining 
coverage for health care benefits under health care benefits 
plans and programs.
    (b) Special Concern.--In conducting the evaluation under 
this section, the Comptroller General shall give special 
consideration to the implications of the increased use of the 
reserve components for carrying out and supporting operations 
of the Armed Forces that has been experienced since the 1980s 
and is anticipated to continue, particularly the increased 
frequency and magnitude of the mobilization of Reserves and the 
increased length of the periods of active duty of Reserves when 
mobilized.
    (c) Matters Covered.--The evaluation under this section 
shall include the following matters:
            (1) An examination of the extent to which Reserves 
        and the members of their families are covered by health 
        care benefits plans when the Reserves are not on active 
        duty, including--
                    (A) the sources of the coverage;
                    (B) the scope of the benefits; and
            (C) the extent to which the Reserves and the 
        members of their families use the benefits available.
            (2) An identification of options for providing 
        health care benefits to Reserves and the members of 
        their families not covered by health care benefits 
        plans without creating an incentive for other Reserves 
        to terminate coverage by such plans.
            (3) A review of Department of Defense initiatives 
        during fiscal years 2003 and 2004 to address the 
        problems of access of mobilized Reserves and their 
        families to health care and health care benefits, 
        including--
                    (A) a determination of the effectiveness of 
                such initiatives; and
                    (B) a determination of the extent to which 
                the problems continue.
            (4) An identification of options for continuing, 
        after a Reserve is mobilized, any coverage of the 
        Reserve and the Reserve's family that exists under a 
        health benefits plan before the Reserve is mobilized.
            (5) An assessment of the effects of--
                    (A) the provisions of this title that 
                authorize or require the Department of Defense 
                to provide assistance specifically to Reserves 
                to facilitate the access to and use of TRICARE 
                benefits by Reserves or members of their 
                families; and
                    (B) the provisions of this title that 
                provide eligibility for health care under 
                chapter 55 of title 10, United States Code, for 
                Reserves who are alerted by the Department of 
                Defense to prepare to be mobilized imminently.
            (6) An examination of the existing programs under 
        which the Department of Defense provides health care 
        benefits to mobilized Reserves during a transitional 
        period immediately following the release of the 
        Reserves from the active duty for which mobilized, 
        including an assessment of the extent to which those 
        programs meet the needs of such Reserves for health 
        care benefits on a transitional basis.
    (d) Report.--Not later than May 1, 2004, the Comptroller 
General shall submit to the Committees on Armed Services of the 
Senate and the House of Representatives a report on the results 
of the evaluation required by this subsection, including 
findings and recommendations.
    (e) Definitions.--In this section:
            (1) The term ``mobilized'' means called or ordered 
        to active duty for a period of more than 30 days (as 
        defined in section 101(d)(2) of title 10, United States 
        Code).
            (2) The term ``Reserves'' means members of the 
        reserve components of the Armed Forces.

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

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

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

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

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

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

                Subtitle B--Other Benefits Improvements

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

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

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

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

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

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

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

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

           Subtitle C--Planning, Programming, and Management

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

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

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

    (a) Separate Periodic Actuarial Valuation for Single 
Uniformed Service.--Section 1115(c) of title 10, United States 
Code, is amended by adding at the end of paragraph (1) the 
following: ``The Secretary of Defense may determine a separate 
single level dollar amount under subparagraph (A) or (B) for 
any participating uniformed service, if, in the judgment of the 
Secretary, such a determination would produce a more accurate 
and appropriate actuarial valuation for that uniformed 
service.''.
    (b) Associated Calculations of Payments Into the Fund.--
Section 1116 of such title is amended--
            (1) in subsection (a), by striking ``the amount 
        that'' in the matter preceding paragraph (1) and 
        inserting ``the amount that, subject to subsection 
        (b),'';
            (2) by redesignating subsections (b) and (c) as 
        subsections (c) and (d), respectively; and
            (3) by inserting after subsection (a) the following 
        new subsection (b):
    ``(b) If an actuarial valuation referred to in paragraph 
(1) or (2) of subsection (a) has been calculated as a separate 
single level dollar amount for a participating uniformed 
service under section 1115(c)(1) of this title, the 
administering Secretary for the department in which such 
uniformed service is operating shall calculate the amount under 
such paragraph separately for such uniformed service. If the 
administering Secretary is not the Secretary of Defense, the 
administering Secretary shall notify the Secretary of Defense 
of the amount so calculated. To determine a single amount for 
the purpose of paragraph (1) or (2) of subsection (a), as the 
case may be, the Secretary of Defense shall aggregate the 
amount calculated under this subsection for a uniformed service 
for the purpose of such paragraph with the amount or amounts 
calculated (whether separately or otherwise) for the other 
uniformed services for the purpose of such paragraph.''.
    (c) Conforming Amendment.--Subsections (a) and (c)(5) of 
section 1115 of such title are amended by striking ``section 
1116(b) of this title'' and inserting ``section 1116(c) of this 
title''.

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

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

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

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

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

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

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

    (a) In General.--Section 722 of the National Defense 
Authorization Act for Fiscal Year 1993 (Public Law 102-484; 10 
U.S.C. 1073 note) is amended by striking subsections (a), (b), 
(c), and (d) and inserting the following new subsections:
    ``(a) Establishment.--Not later than December 31, 2003, the 
Secretary of Defense shall establish a working group on the 
provision of military health care to persons who rely for 
health care on health care facilities located at military 
installations--
            ``(1) inside the United States that are selected 
        for closure or realignment in the 2005 round of 
        realignments and closures authorized by sections 2912, 
        2913, and 2914 of the Defense Base Closure and 
        Realignment Act of 1990 (part A of title XXIX of Public 
        Law 101-510; 10 U.S.C. 2687 note), as added by title 
        XXX of the National Defense Authorization Act for 
        Fiscal Year 2002 (Public Law 107-107; 155 Stat. 1342); 
        or
            ``(2) outside the United States that are selected 
        for closure or realignment as a result of force posture 
        changes.
    ``(b) Membership.--The members of the working group shall 
include, at a minimum, the following:
            ``(1) The Assistant Secretary of Defense for Health 
        Affairs, or a designee of the Assistant Secretary.
            ``(2) The Surgeon General of the Army, or a 
        designee of that Surgeon General.
            ``(3) The Surgeon General of the Navy, or a 
        designee of that Surgeon General.
            ``(4) The Surgeon General of the Air Force, or a 
        designee of that Surgeon General.
            ``(5) At least one independent member (appointed by 
        the Secretary of Defense) from each TRICARE region, but 
        not to exceed a total of 12 members appointed under 
        this paragraph, whose experience in matters within the 
        responsibility of the working group qualify that person 
        to represent persons authorized health care under 
        chapter 55 of title 10, United States Code.
    ``(c) Duties.--(1) In developing the recommendations for 
the 2005 round of realignments and closures required by 
sections 2913 and 2914 of the Defense Base Closure and 
Realignment Act of 1990, the Secretary of Defense shall consult 
with the working group.
    ``(2) The working group shall be available to provide 
assistance to the Defense Base Closure and Realignment 
Commission.
    ``(3) In the case of each military installation referred to 
in paragraph (1) or (2) of subsection (a) whose closure or 
realignment will affect the accessibility to health care 
services for persons entitled to such services under chapter 55 
of title 10, United States Code, the working group shall 
provide to the Secretary of Defense a plan for the provision of 
the health care services to such persons.
    ``(d) Special Considerations.--In carrying out its duties 
under subsection (c), the working group--
            ``(1) shall conduct meetings with persons entitled 
        to health care services under chapter 55 of title 10, 
        United States Code, or representatives of such persons;
            ``(2) may use reliable sampling techniques;
            ``(3) may visit the areas where closures or 
        realignments of military installations will adversely 
        affect the accessibility of health care for such 
        persons and may conduct public meetings; and
            ``(4) shall ensure that members of the uniformed 
        services on active duty, members and former members of 
        the uniformed services entitled to retired or retainer 
        pay, and dependents and survivors of such members and 
        retired personnel are afforded the opportunity to 
        express their views.''.
    (b) Termination.--Section 722 of such Act is further 
amended by adding at the end the following new subsection:
    ``(f) Termination.--The working group established pursuant 
to subsection (a) shall terminate on December 31, 2006.''.
    (c) Conforming Amendment.--Subsection (e) of such section 
is amended by striking ``joint services''.

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

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

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

              Subtitle A--Acquisition Policy and Management

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

      Subtitle B--United States Defense Industrial Base Provisions

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

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

            Part II--Requirements Relating to Specific Items

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

              Part III--Other Domestic Source Requirements

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

    Subtitle C--Defense Acquisition and Support Workforce Flexibility

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

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

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

        Subtitle E--Acquisition-Related Reports and Other Matters

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

             Subtitle A--Acquisition Policy and Management

SEC. 801. CONSOLIDATION OF CONTRACT REQUIREMENTS.

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

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

    ``(a) Policy.--The Secretary of Defense shall require the 
Secretary of each military department, the head of each Defense 
Agency, and the head of each Department of Defense Field 
Activity to ensure that the decisions made by that official 
regarding consolidation of contract requirements of the 
department, agency, or field activity, as the case may be, are 
made with a view to providing small business concerns with 
appropriate opportunities to participate in Department of 
Defense procurements as prime contractors and appropriate 
opportunities to participate in such procurements as 
subcontractors.
    ``(b) Limitation on Use of Acquisition Strategies Involving 
Consolidation.--(1) An official of a military department, 
Defense Agency, or Department of Defense Field Activity may not 
execute an acquisition strategy that includes a consolidation 
of contract requirements of the military department, agency, or 
activity with a total value in excess of $5,000,000, unless the 
senior procurement executive concerned first--
            ``(A) conducts market research;
            ``(B) identifies any alternative contracting 
        approaches that would involve a lesser degree of 
        consolidation of contract requirements; and
            ``(C) determines that the consolidation is 
        necessary and justified.
    ``(2) A senior procurement executive may determine that an 
acquisition strategy involving a consolidation of contract 
requirements is necessary and justified for the purposes of 
paragraph (1) if the benefits of the acquisition strategy 
substantially exceed the benefits of each of the possible 
alternative contracting approaches identified under 
subparagraph (B) of that paragraph. However, savings in 
administrative or personnel costs alone do not constitute, for 
such purposes, a sufficient justification for a consolidation 
of contract requirements in a procurement unless the total 
amount of the cost savings is expected to be substantial in 
relation to the total cost of the procurement.
    ``(3) Benefits considered for the purposes of paragraphs 
(1) and (2) may include cost and, regardless of whether 
quantifiable in dollar amounts--
            ``(A) quality;
            ``(B) acquisition cycle;
            ``(C) terms and conditions; and
            ``(D) any other benefit.
    ``(c) Definitions.--In this section:
            ``(1) The terms `consolidation of contract 
        requirements' and `consolidation', with respect to 
        contract requirements of a military department, Defense 
        Agency, or Department of Defense Field Activity, mean a 
        use of a solicitation to obtain offers for a single 
        contract or a multiple award contract to satisfy two or 
        more requirements of that department, agency, or 
        activity for goods or services that have previously 
        been provided to, or performed for, that department, 
        agency, or activity under two or more separate 
        contracts smaller in cost than the total cost of the 
        contract for which the offers are solicited.
            ``(2) The term `multiple award contract' means--
                    ``(A) a contract that is entered into by 
                the Administrator of General Services under the 
                multiple award schedule program referred to in 
                section 2302(2)(C) of this title;
                    ``(B) a multiple award task order contract 
                or delivery order contract that is entered into 
                under the authority of sections 2304a through 
                2304d of this title or sections 303H through 
                303K of the Federal Property and Administrative 
                Services Act of 1949 (41 U.S.C. 253h through 
                253k); and
                    ``(C) any other indeterminate delivery, 
                indeterminate quantity contract that is entered 
                into by the head of a Federal agency with two 
                or more sources pursuant to the same 
                solicitation.
            ``(3) The term `senior procurement executive 
        concerned' means--
                    ``(A) with respect to a military 
                department, the official designated under 
                section 16(3) of the Office of Federal 
                Procurement Policy Act (41 U.S.C. 414(3)) as 
                the senior procurement executive for the 
                military department; or
                    ``(B) with respect to a Defense Agency or a 
                Department of Defense Field Activity, the 
                official so designated for the Department of 
                Defense.
            ``(4) The term `small business concern' means a 
        business concern that is determined by the 
        Administrator of the Small Business Administration to 
        be a small-business concern by application of the 
        standards prescribed under section 3(a) of the Small 
        Business Act (15 U.S.C. 632(a)).''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 2381 
the following new item:

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

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

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

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

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

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

SEC. 804. SPECIAL TEMPORARY CONTRACT CLOSEOUT AUTHORITY.

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

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

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

      Subtitle B--United States Defense Industrial Base Provisions

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

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

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

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

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

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

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

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

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

            Part II--Requirements Relating to Specific Items

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

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

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

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

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

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

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

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

SEC. 823. TECHNICAL ASSISTANCE RELATING TO MACHINE TOOLS.

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

SEC. 824. STUDY OF BERYLLIUM INDUSTRIAL BASE.

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

              Part III--Other Domestic Source Requirements

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

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

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

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

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

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

   Subtitle C--Defense Acquisition and Support Workforce Flexibility

SEC. 831. MANAGEMENT STRUCTURE.

    (a) Repeal of Requirements for Certain Career Management 
Directors, Boards, and Policies.--Sections 1703, 1705, 1706, 
and 1707 of title 10, United States Code, are repealed.
    (b) Conforming Amendments.--Chapter 87 of such title is 
amended--
            (1) in section 1724(d)--
                    (A) in the first sentence, by striking 
                ``The acquisition career program board 
                concerned'' and all that follows through ``if 
                the board certifies'' and inserting ``the 
                Secretary of Defense may waive any or all of 
                the requirements of subsections (a) and (b) 
                with respect to an employee of the Department 
                of Defense or member of the armed forces if the 
                Secretary determines'';
                    (B) in the second sentence, by striking 
                ``the board'' and inserting ``the Secretary''; 
                and
                    (C) by striking the third sentence;
            (2) in section 1732(b)--
                    (A) in paragraph (1)(C), by striking ``, as 
                validated by the appropriate career program 
                management board''; and
                    (B) in paragraph (2)(A)(ii), by striking 
                ``has been certified by the acquisition career 
                program board of the employing military 
                department as possessing'' and inserting 
                ``possess'';
            (3) in section 1732(d)--
                    (A) in paragraph (1)--
                            (i) in the first sentence, by 
                        striking ``the acquisition career 
                        program board of a military 
                        department'' and all that follows 
                        through ``if the board certifies'' and 
                        inserting ``The Secretary of Defense 
                        may waive any or all of the 
                        requirements of subsection (b) with 
                        respect to an employee if the Secretary 
                        determines'';
                            (ii) in the second sentence, by 
                        striking ``the board'' and inserting 
                        ``the Secretary''; and
                            (iii) by striking the third 
                        sentence; and
                    (B) in paragraph (2), by striking ``The 
                acquisition career program board of a military 
                department'' and inserting ``The Secretary'';
            (4) in section 1734--
                    (A) in subsection (d)--
                            (i) by striking paragraph (2); and
                            (ii) by redesignating paragraph (3) 
                        as paragraph (2), and in that paragraph 
                        by striking the second sentence; and
                    (B) in subsection (e)(2), by striking ``, 
                by the acquisition career program board of the 
                department concerned,''; and
            (5) in section 1737(c)--
                    (A) by striking paragraph (2); and
                    (B) by striking ``(1) The Secretary'' and 
                inserting ``The Secretary''.

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

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

SEC. 833. SINGLE ACQUISITION CORPS.

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

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

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

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

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

SEC. 835. GENERAL MANAGEMENT PROVISIONS.

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

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

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

SEC. 836. CLERICAL AMENDMENTS.

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

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

            (4) The table of sections at the beginning of 
        subchapter V is amended by striking the item relating 
        to section 1763 and inserting the following:

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

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

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

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

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

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

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

SEC. 842. ELIMINATION OF CERTAIN SUBCONTRACT NOTIFICATION REQUIREMENTS.

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

SEC. 843. MULTIYEAR TASK AND DELIVERY ORDER CONTRACTS.

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

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

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

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

    Section 806(c) of the Bob Stump National Defense 
Authorization Act for Fiscal Year 2003 (Public Law 107-314; 116 
Stat. 2607; 10 U.S.C. 2302 note) is amended by adding at the 
end the following new paragraph:
    ``(3) If items are deployed under the rapid acquisition and 
deployment procedures prescribed pursuant to this section, or 
under any other authority, before the completion of operational 
test and evaluation of the items, the Director of Operational 
Test and Evaluation shall have access to operational records 
and data relevant to such items in accordance with section 
139(e)(3) of title 10, United States Code, for the purpose of 
completing operational test and evaluation of the items. The 
access to the operational records and data shall be provided in 
a time and manner determined by the Secretary of Defense 
consistent with requirements of operational security and other 
relevant operational requirements.''.

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

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

SEC. 847. CERTAIN WEAPONS-RELATED PROTOTYPE PROJECTS.

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

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

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

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

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

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

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

       Subtitle E--Acquisition-Related Reports and Other Matters

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

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

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

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

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

    (a) Authority.--The Secretary of Defense may carry out a 
demonstration project by entering into one or more contracts 
with an eligible contractor for the purpose of providing 
defense contracting opportunities for severely disabled 
individuals.
    (b) Evaluation Factor.--In evaluating an offer for a 
contract under the demonstration program, the percentage of the 
total workforce of the offeror consisting of severely disabled 
individuals employed by the offeror shall be one of the 
evaluation factors.
    (c) Definitions.--In this section:
            (1) Eligible contractor.--The term ``eligible 
        contractor'' means a business entity operated on a for-
        profit or nonprofit basis that--
                    (A) employs severely disabled individuals 
                at a rate that averages not less than 33 
                percent of its total workforce over a period 
                prescribed by the Secretary;
                    (B) pays not less than the minimum wage 
                prescribed pursuant to section 6 of the Fair 
                Labor Standards Act of 1938 (29 U.S.C. 206) to 
                the employees who are severely disabled 
                individuals; and
                    (C) provides for its employees health 
                insurance and a retirement plan comparable to 
                those provided for employees by business 
                entities of similar size in its industrial 
                sector or geographic region.
            (2) Severely disabled individual.--The term 
        ``severely disabled individual'' means an individual 
        with a disability (as defined in section 3 of the 
        Americans With Disabilities Act of 1990 (42 U.S.C. 
        12102)) who has a severe physical or mental impairment 
        that seriously limits one or more functional 
        capacities.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

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

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

                      Subtitle B--Space Activities

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

        Subtitle C--Department of Defense Intelligence Components

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

                        Subtitle D--Other Matters

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

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

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

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

SEC. 902. COMBATANT COMMANDER INITIATIVE FUND.

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

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

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

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

    (a) Report Required.--Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall submit to the Committees on Armed Services of the Senate 
and the House of Representatives a report on the changing roles 
of the United States Special Operations Command.
    (b) Content of Report.--(1) The report shall specifically 
discuss in detail the following matters:
            (A) The expanded role of the United States Special 
        Operations Command in the global war on terrorism.
            (B) The reorganization of that command to function 
        as a supported combatant command for planning and 
        executing operations.
            (C) The role of that command as a supporting 
        combatant command.
    (2) The report shall also include, in addition to the 
matters discussed pursuant to paragraph (1), a discussion of 
the following matters:
            (A) The military strategy to employ the United 
        States Special Operations Command to fight the global 
        war on terrorism and how that strategy contributes to 
        the overall national security strategy with regard to 
        the global war on terrorism.
            (B) The scope of the authority granted to the 
        commander of that command to act as a supported 
        commander and to prosecute the global war on terrorism.
            (C) The operational and legal parameters within 
        which the commander of that command is to exercise 
        command authority in foreign countries when taking 
        action against foreign and United States citizens 
        engaged in terrorist activities.
            (D) The decisionmaking procedures for authorizing, 
        planning, and conducting individual missions by that 
        command, including--
                    (i) the requirement in section 167(d)(2) of 
                title 10, United States Code, that the conduct 
                of a special operations mission under the 
                command of the commander of the United States 
                Special Operations Command be authorized by the 
                President or the Secretary of Defense; and
                    (ii) procedures for consultation with 
                Congress.
            (E) The procedures for the commander of that 
        command to use to coordinate with commanders of other 
        combatant commands, especially geographic commands.
            (F) Future organization plans and resource 
        requirements for that command conducting the global 
        counterterrorism mission.
            (G) The effect of the changing role of that command 
        on other special operations missions, including foreign 
        internal defense, psychological operations, civil 
        affairs, unconventional warfare, counterdrug 
        activities, and humanitarian activities.
    (c) Forms of Report.--The report shall be submitted in 
unclassified form and, as necessary, in classified form.

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

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

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

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

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

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

                      Subtitle B--Space Activities

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    (a) Revised Content.--Paragraph (1) of section 2281(d) of 
title 10, United States Code, is amended--
            (1) by striking subparagraph (C);
            (2) by redesignating subparagraph (D) as 
        subparagraph (C);
            (3) by redesignating subparagraph (E) as 
        subparagraph (D) and in that subparagraph striking 
        ``Any progress made toward'' and inserting ``Progress 
        and challenges in''; and
            (4) by striking subparagraph (F) and inserting the 
        following:
            ``(E) Progress and challenges in protecting GPS 
        from jamming, disruption, and interference.
            ``(F) Progress and challenges in developing the 
        enhanced Global Positioning System required by section 
        218(b) of the Strom Thurmond National Defense 
        Authorization Act for Fiscal Year 1999 (Public Law 105-
        261; 112 Stat. 1951; 10 U.S.C. 2281 note).''.
    (b) Conforming Amendment.--Paragraph (2) of such section is 
amended by inserting ``(C),'' after ``under subparagraphs''.

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

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

       Subtitle C--Department of Defense Intelligence Components

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

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

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

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

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

            (ii) The item relating to that section in the table 
        of sections at the beginning of subchapter I of chapter 
        21 is amended to read as follows:

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

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

``Sec. 110. National mission of National Geospatial-Intelligence 
          Agency.''.

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

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

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

          ``OPERATIONAL FILES OF THE NATIONAL SECURITY AGENCY

    ``Sec. 704. (a) Exemption of Certain Operational Files From 
Search, Review, Publication, or Disclosure.--The Director of 
the National Security Agency, in coordination with the Director 
of Central Intelligence, may exempt operational files of the 
National Security Agency from the provisions of section 552 of 
title 5, United States Code, which require publication, 
disclosure, search, or review in connection therewith.
    ``(b) Operational Files Defined.--(1) In this section, the 
term `operational files' means--
            ``(A) files of the Signals Intelligence Directorate 
        of the National Security Agency (and any successor 
        organization of that directorate) that document the 
        means by which foreign intelligence or 
        counterintelligence is collected through technical 
        systems; and
            ``(B) files of the Research Associate Directorate 
        of the National Security Agency (and any successor 
        organization of that directorate) that document the 
        means by which foreign intelligence or 
        counterintelligence is collected through scientific and 
        technical systems.
    ``(2) Files that are the sole repository of disseminated 
intelligence, and files that have been accessioned into the 
National Security Agency Archives (or any successor 
organization) are not operational files.
    ``(c) Search and Review for Information.--Notwithstanding 
subsection (a), exempted operational files shall continue to be 
subject to search and review for information concerning any of 
the following:
            ``(1) United States citizens or aliens lawfully 
        admitted for permanent residence who have requested 
        information on themselves pursuant to the provisions of 
        section 552 or 552a of title 5, United States Code.
            ``(2) Any special activity the existence of which 
        is not exempt from disclosure under the provisions of 
        section 552 of title 5, United States Code.
            ``(3) The specific subject matter of an 
        investigation by any of the following for any 
        impropriety, or violation of law, Executive order, or 
        Presidential directive, in the conduct of an 
        intelligence activity:
                    ``(A) The Committee on Armed Services and 
                the Permanent Select Committee on Intelligence 
                of the House of Representatives.
                    ``(B) The Committee on Armed Services and 
                the Select Committee on Intelligence of the 
                Senate.
                    ``(C) The Intelligence Oversight Board.
                    ``(D) The Department of Justice.
                    ``(E) The Office of General Counsel of the 
                National Security Agency.
                    ``(F) The Office of the Inspector General 
                of the Department of Defense.
                    ``(G) The Office of the Director of the 
                National Security Agency.
    ``(d) Information Derived or Disseminated from Exempted 
Operational Files.--(1) Files that are not exempted under 
subsection (a) that contain information derived or disseminated 
from exempted operational files shall be subject to search and 
review.
    ``(2) The inclusion of information from exempted 
operational files in files that are not exempted under 
subsection (a) shall not affect the exemption under subsection 
(a) of the originating operational files from search, review, 
publication, or disclosure.
    ``(3) The declassification of some of the information 
contained in exempted operational files shall not affect the 
status of the operational file as being exempt from search, 
review, publication, or disclosure.
    ``(4) Records from exempted operational files that have 
been disseminated to and referenced in files that are not 
exempted under subsection (a) and that have been returned to 
exempted operational files for sole retention shall be subject 
to search and review.
    ``(e) Supercedure of Other Laws.--The provisions of 
subsection (a) may not be superseded except by a provision of 
law that is enacted after the date of the enactment of this 
section and that specifically cites and repeals or modifies 
such provisions.
    ``(f) Allegation; Improper Withholding of Records; Judicial 
Review.--(1) Except as provided in paragraph (2), whenever any 
person who has requested agency records under section 552 of 
title 5, United States Code, alleges that the National Security 
Agency has withheld records improperly because of failure to 
comply with any provision of this section, judicial review 
shall be available under the terms set forth in section 
552(a)(4)(B) of title 5, United States Code.
    ``(2) Judicial review shall not be available in the manner 
provided for under paragraph (1) as follows:
            ``(A) In any case in which information specifically 
        authorized under criteria established by an Executive 
        order to be kept secret in the interests of national 
        defense or foreign relations is filed with, or produced 
        for, the court by the National Security Agency, such 
        information shall be examined ex parte, in camera by 
        the court.
            ``(B) The court shall determine, to the fullest 
        extent practicable, the issues of fact based on sworn 
        written submissions of the parties.
            ``(C) When a complainant alleges that requested 
        records are improperly withheld because of improper 
        placement solely in exempted operational files, the 
        complainant shall support such allegation with a sworn 
        written submission based upon personal knowledge or 
        otherwise admissible evidence.
            ``(D)(i) When a complainant alleges that requested 
        records were improperly withheld because of improper 
        exemption of operational files, the National Security 
        Agency shall meet its burden under section 552(a)(4)(B) 
        of title 5, United States Code, by demonstrating to the 
        court by sworn written submission that exempted 
        operational files likely to contain responsible records 
        currently perform the functions set forth in subsection 
        (b).
            ``(ii) The court may not order the National 
        Security Agency to review the content of any exempted 
        operational file or files in order to make the 
        demonstration required under clause (i), unless the 
        complainant disputes the National Security Agency's 
        showing with a sworn written submission based on 
        personal knowledge or otherwise admissible evidence.
            ``(E) In proceedings under subparagraphs (C) and 
        (D), the parties may not obtain discovery pursuant to 
        rules 26 through 36 of the Federal Rules of Civil 
        Procedure, except that requests for admissions may be 
        made pursuant to rules 26 and 36.
            ``(F) If the court finds under this subsection that 
        the National Security Agency has improperly withheld 
        requested records because of failure to comply with any 
        provision of this subsection, the court shall order the 
        Agency to search and review the appropriate exempted 
        operational file or files for the requested records and 
        make such records, or portions thereof, available in 
        accordance with the provisions of section 552 of title 
        5, United States Code, and such order shall be the 
        exclusive remedy for failure to comply with this 
        section (other than subsection (g)).
            ``(G) If at any time following the filing of a 
        complaint pursuant to this paragraph the National 
        Security Agency agrees to search the appropriate 
        exempted operational file or files for the requested 
        records, the court shall dismiss the claim based upon 
        such complaint.
            ``(H) Any information filed with, or produced for 
        the court pursuant to subparagraphs (A) and (D) shall 
        be coordinated with the Director of Central 
        Intelligence before submission to the court.
    ``(g) Decennial Review of Exempted Operational Files.--(1) 
Not less than once every 10 years, the Director of the National 
Security Agency and the Director of Central Intelligence shall 
review the exemptions in force under subsection (a) to 
determine whether such exemptions may be removed from a 
category of exempted files or any portion thereof. The Director 
of Central Intelligence must approve any determination to 
remove such exemptions.
    ``(2) The review required by paragraph (1) shall include 
consideration of the historical value or other public interest 
in the subject matter of a particular category of files or 
portions thereof and the potential for declassifying a 
significant part of the information contained therein.
    ``(3) A complainant that alleges that the National Security 
Agency has improperly withheld records because of failure to 
comply with this subsection may seek judicial review in the 
district court of the United States of the district in which 
any of the parties reside, or in the District of Columbia. In 
such a proceeding, the court's review shall be limited to 
determining the following:
            ``(A) Whether the National Security Agency has 
        conducted the review required by paragraph (1) before 
        the expiration of the 10-year period beginning on the 
        date of the enactment of this section or before the 
        expiration of the 10-year period beginning on the date 
        of the most recent review.
            ``(B) Whether the National Security Agency, in 
        fact, considered the criteria set forth in paragraph 
        (2) in conducting the required review.''.
    (b) Consolidation of Current Provisions on Protection of 
Operational Files of CIA.--Title VII of such Act is further 
amended--
            (1) in section 701(b) (50 U.S.C. 431(b)), by 
        striking ``For purposes of this title'' and inserting 
        ``In this section,''; and
            (2) in section 702 (50 U.S.C. 432)--
                    (A) by striking the section heading;
                    (B) by redesignating the text of that 
                section as subsection (g) of section 701 and 
                redesignating subsections (a), (b), and (c) 
                thereof as paragraphs (1), (2), and (3), 
                respectively;
                    (C) by inserting ``Decennial Review of 
                Exempted Operational Files.--'' after the 
                subsection designation (as designated by 
                subparagraph (B));
                    (D) in paragraph (1) (as redesignated by 
                subparagraph (B)), by striking ``of section 701 
                of this Act'';
                    (E) in paragraph (2) (as redesignated by 
                subparagraph (B)), by striking ``of subsection 
                (a) of this section'' and inserting ``paragraph 
                (1)''; and
                    (F) in paragraph (3) (as redesignated by 
                subparagraph (B))--
                            (i) by striking ``with this 
                        section'' in the first sentence and 
                        inserting ``with this subsection''; and
                            (ii) by striking ``to determining'' 
                        in the second sentence and all that 
                        follows and inserting ``to determining 
                        the following:
            ``(A) Whether the Central Intelligence Agency has 
        conducted the review required by paragraph (1) before 
        October 15, 1994, or before the expiration of the 10-
        year period beginning on the date of the most recent 
        review.
            ``(B) Whether the Central Intelligence Agency, in 
        fact, considered the criteria set forth in paragraph 
        (2) in conducting the required review.''.
    (c) Consolidation of Current Provisions on Protection of 
Operational Files of Certain Other Intelligence Agencies.--The 
National Security Act of 1947 (50 U.S.C. 401 et seq.) is 
further amended--
            (1) by transferring section 105C (50 U.S.C. 403-
        5c), as amended by section 921(e)(4), and section 105D 
        (50 U.S.C. 403-5e) to title VII of that Act and 
        inserting them after section 701, as amended by 
        subsection (b); and
            (2) by redesignating those sections, as so 
        transferred, as sections 702 and 703, respectively.
    (d) Clerical Amendments.--The National Security Act of 1947 
is amended as follows:
            (1)(A) The heading for title VII is amended to read 
        as follows:

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

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

       ``OPERATIONAL FILES OF THE CENTRAL INTELLIGENCE AGENCY''.

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

 ``OPERATIONAL FILES OF THE NATIONAL GEOSPATIAL-INTELLIGENCE AGENCY''.

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

              ``Title VII--Protection of Operational Files

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

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

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

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

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

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

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

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

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

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

    (a) In General.--Section 802(b)(2) of the David L. Boren 
National Security Education Act of 1991 (50 U.S.C. 1902(b)(2)) 
is amended by striking subparagraphs (A) and (B) and inserting 
the following new subparagraphs (A) and (B):
                    ``(A) in the case of a recipient of a 
                scholarship, after the recipient's completion 
                of the study for which scholarship assistance 
                was provided under the program, work in a 
                position in the Department of Defense or other 
                element of the intelligence community that is 
                certified by the Secretary as appropriate to 
                utilize the unique language and region 
                expertise acquired by the recipient pursuant to 
                such study for a period specified by the 
                Secretary, which period shall include one year 
                of service for each year, or portion thereof, 
                for which such scholarship assistance was 
                provided; or
                    ``(B) in the case of a recipient of a 
                fellowship, after the recipient's completion of 
                the study for which the fellowship assistance 
                was provided under the program, work in a 
                position described in subparagraph (A) that is 
                certified by the Secretary as appropriate to 
                utilize the unique language and region 
                expertise acquired by the recipient pursuant to 
                such study for a period specified by the 
                Secretary, which period shall (at the 
                discretion of the Secretary) include not less 
                than one nor more than three years for each 
                year, or portion thereof, for which such 
                fellowship assistance was provided; and''.
    (b) Applicability.--(1) The amendment made by subsection 
(a) shall apply with respect to service agreements entered into 
under the David L. Boren National Security Education Act of 
1991 on or after the date of the enactment of this Act.
    (2) The amendment made by subsection (a) shall not affect 
the force, validity, or terms of any service agreement entered 
into under the David L. Boren National Security Education Act 
of 1991 before the date of the enactment of this Act that is in 
force as of that date.

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

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

SEC. 927. COMMERCIAL IMAGERY INDUSTRIAL BASE.

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

                       Subtitle D--Other Matters

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

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

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

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

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

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

                      TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

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

                 Subtitle B--Naval Vessels and Shipyards

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

                     Subtitle C--Counterdrug Matters

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

                           Subtitle D--Reports

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

    Subtitle E--Codifications, Definitions, and Technical Amendments

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

                        Subtitle F--Other Matters

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

                     Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

    (a) Authority To Transfer Authorizations.--(1) Upon 
determination by the Secretary of Defense that such action is 
necessary in the national interest, the Secretary may transfer 
amounts of authorizations made available to the Department of 
Defense in this division for fiscal year 2004 between any such 
authorizations for that fiscal year (or any subdivisions 
thereof). Amounts of authorizations so transferred shall be 
merged with and be available for the same purposes as the 
authorization to which transferred.
    (2) The total amount of authorizations that the Secretary 
may transfer under the authority of this section may not exceed 
$2,500,000,000.
    (b) Limitations.--The authority provided by this section to 
transfer authorizations--
            (1) may only be used to provide authority for items 
        that have a higher priority than the items from which 
        authority is transferred; and
            (2) may not be used to provide authority for an 
        item that has been denied authorization by Congress.
    (c) Effect on Authorization Amounts.--A transfer made from 
one account to another under the authority of this section 
shall be deemed to increase the amount authorized for the 
account to which the amount is transferred by an amount equal 
to the amount transferred.
    (d) Notice to Congress.--The Secretary shall promptly 
notify Congress of each transfer made under subsection (a).

SEC. 1002. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED BUDGETS IN 
                    FISCAL YEAR 2004.

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

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

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

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

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

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

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

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

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

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

    (c) Effective Date.--The amendments made by this section 
shall not apply to funds appropriated for a fiscal year before 
fiscal year 2004.

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

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

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

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

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

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

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

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

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

SEC. 1009. PROVISIONS RELATING TO DEFENSE TRAVEL CARDS.

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

                Subtitle B--Naval Vessels and Shipyards

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

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

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

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

SEC. 1013. TRANSFER OF VESSELS STRICKEN FROM THE NAVAL VESSEL REGISTER 
                    FOR USE AS ARTIFICIAL REEFS.

    (a) Authority To Make Transfer.--Chapter 633 of title 10, 
United States Code, is amended by inserting after section 7306a 
the following new section:

``Sec. 7306b. Vessels stricken from Naval Vessel Register: transfer by 
                    gift or otherwise for use as artificial reefs

    ``(a) Authority To Make Transfer.--The Secretary of the 
Navy may transfer, by gift or otherwise, any vessel stricken 
from the Naval Vessel Register to any State, Commonwealth, or 
possession of the United States, or any municipal corporation 
or political subdivision thereof, for use as provided in 
subsection (b).
    ``(b) Vessel To Be Used as Artificial Reef.--An agreement 
for the transfer of a vessel under subsection (a) shall require 
that--
            ``(1) the recipient use, site, construct, monitor, 
        and manage the vessel only as an artificial reef in 
        accordance with the requirements of the National 
        Fishing Enhancement Act of 1984 (33 U.S.C. 2101 et 
        seq.), except that the recipient may use the artificial 
        reef to enhance diving opportunities if that use does 
        not have an adverse effect on fishery resources (as 
        that term is defined in section 2(14) of the Magnuson-
        Stevens Fishery Conservation and Management Act (16 
        U.S.C. 1802(14)); and
            ``(2) the recipient obtain, and bear all 
        responsibility for complying with, applicable Federal, 
        State, interstate, and local permits for using, siting, 
        constructing, monitoring, and managing the vessel as an 
        artificial reef.
    ``(c) Preparation of Vessel for Use as Artificial Reef.--
The Secretary shall ensure that the preparation of a vessel 
transferred under subsection (a) for use as an artificial reef 
is conducted in accordance with--
            ``(1) the environmental best management practices 
        developed pursuant to section 3504(b) of the Bob Stump 
        National Defense Authorization Act for Fiscal Year 2003 
        (Public Law 107-314; 16 U.S.C. 1220 note); and
            ``(2) any applicable environmental laws.
    ``(d) Cost Sharing.--The Secretary may share with the 
recipient of a vessel transferred under subsection (a) any 
costs associated with transferring the vessel under that 
subsection, including costs of the preparation of the vessel 
under subsection (c).
    ``(e) No Limitation on Number of Vessels Transferable to 
Particular Recipient.--A State, Commonwealth, or possession of 
the United States, or any municipal corporation or political 
subdivision thereof, may be the recipient of more than one 
vessel transferred under subsection (a).
    ``(f) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
a transfer authorized by subsection (a) as the Secretary 
considers appropriate.
    ``(g) Construction.--Nothing in this section shall be 
construed to establish a preference for the use as artificial 
reefs of vessels stricken from the Naval Vessel Register in 
lieu of other authorized uses of such vessels, including the 
domestic scrapping of such vessels, or other disposals of such 
vessels, under this chapter or other applicable authority.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 7306a the following new item:

``7306b. Vessels stricken from Naval Vessel Register: transfer by gift 
          or otherwise for use as artificial reefs.''.

SEC. 1014. PRIORITY FOR TITLE XI ASSISTANCE.

    (a) In General.--Section 1103 of the Merchant Marine Act, 
1936 (46 App. U.S.C. 1273) is amended--
            (1) in subsection (i) (as added by section 3544 of 
        this Act) by striking ``Priority'' and inserting 
        ``Priority for National Defense Tank Vessels''; and
            (2) by adding at the end the following:
    ``(j) Priority for Other Vessels Suitable for Service as a 
Naval Auxiliary.--In guaranteeing and entering commitments to 
guarantee under this section, the Secretary shall, after 
applying subsection (i), give priority to a guarantee or 
commitment for a vessel that is otherwise eligible for a 
guarantee under this section and that the Secretary of Defense 
determines--
            ``(1) is suitable for service as a naval auxiliary 
        in time of war or national emergency; and
            ``(2) meets a shortfall in sealift capacity or 
        capability.''.
    (b) Report.--Within 180 days after the date of the 
enactment of this Act, the Secretary of Transportation and the 
Secretary of Defense shall transmit a report to the Senate 
Committee on Armed Services, the Senate Committee on Commerce, 
Science, and Transportation, and the House of Representatives 
Committee on Armed Services that--
            (1) sets forth the criteria to be used by the 
        Secretary of Defense in making, for purposes of section 
        1103(j) of the Merchant Marine Act, 1936 (46 U.S.C. 
        App. 1273(j)), as amended by this section, the 
        determinations described in paragraphs (1) and (2) of 
        that section; and
            (2) describes the procedure that the Secretary of 
        Defense will follow--
                    (A) in reviewing applications for which 
                priority treatment is sought under section 
                1103(j) of that Act; and
                    (B) in reporting to the Secretary of 
                Transportation with respect to such 
                applications.

SEC. 1015. SUPPORT FOR TRANSFERS OF DECOMMISSIONED VESSELS AND 
                    SHIPBOARD EQUIPMENT.

    (a) In General.--Chapter 633 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 7316. Support for transfers of decommissioned vessels and 
                    shipboard equipment

    ``(a) Authority To Provide Assistance.--The Secretary of 
the Navy may provide an entity described in subsection (b) with 
assistance in support of a transfer of a vessel or shipboard 
equipment described in such subsection that is being executed 
under section 2572, 7306, 7307, or 7545 of this title, or under 
any other authority.
    ``(b) Covered Vessels and Equipment.--The authority under 
this section applies--
            ``(1) in the case of a decommissioned vessel that--
                    ``(A) is owned and maintained by the Navy, 
                is located at a Navy facility, and is not in 
                active use; and
                    ``(B) is being transferred to an entity 
                designated by the Secretary of the Navy or by 
                law to receive transfer of the vessel; and
            ``(2) in the case of any shipboard equipment that--
                    ``(A) is on a vessel described in paragraph 
                (1)(A); and
                    ``(B) is being transferred to an entity 
                designated by the Secretary of the Navy or by 
                law to receive transfer of the equipment.
    ``(c) Reimbursement.--The Secretary may require a recipient 
of assistance under subsection (a) to reimburse the Navy for 
amounts expended by the Navy in providing the assistance.
    ``(d) Deposit of Funds Received.--Funds received in a 
fiscal year under subsection (c) shall be credited to the 
appropriation available for such fiscal year for operation and 
maintenance for the office of the Navy managing inactive ships, 
shall be merged with other sums in the appropriation that are 
available for such office, and shall be available for the same 
purposes and period as the sums with which merged.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``7316. Support for transfers of decommissioned vessels and shipboard 
          equipment.''.

SEC. 1016. ADVANCED SHIPBUILDING ENTERPRISE.

    (a) Findings.--Congress makes the following findings:
            (1) The President's budget for fiscal year 2004, as 
        submitted to Congress, includes $10,300,000 for the 
        Advanced Shipbuilding Enterprise of the National 
        Shipbuilding Research Program.
            (2) The Advanced Shipbuilding Enterprise is an 
        innovative program to encourage greater efficiency 
        among shipyards in the defense industrial base.
            (3) The leaders of the Nation's shipbuilding 
        industry have embraced the Advanced Shipbuilding 
        Enterprise as a method of exploring and collaborating 
        on innovation in shipbuilding and ship repair that 
        collectively benefits all manufacturers in the 
        industry.
    (b) Sense of the Congress.--It is the sense of the Congress 
that--
            (1) the Congress strongly supports the innovative 
        Advanced Shipbuilding Enterprise of the National 
        Shipbuilding Research Program that has yielded new 
        processes and techniques to reduce the cost of building 
        and repairing ships in the United States;
            (2) the Congress is concerned that the future-years 
        defense program submitted to Congress for fiscal year 
        2004 does not reflect any funding for the Advanced 
        Shipbuilding Enterprise after fiscal year 2004; and
            (3) the Secretary of Defense and the Secretary of 
        the Navy should continue funding the Advanced 
        Shipbuilding Enterprise at a sustaining level through 
        the future-years defense program to support subsequent 
        rounds of research that reduce the cost of designing, 
        building, and repairing ships.

SEC. 1017. REPORT ON NAVY PLANS FOR BASING AIRCRAFT CARRIERS.

    (a) Findings.--Congress finds that--
            (1) the Committee on Armed Services of the Senate, 
        in its report to accompany the bill S. 2514 of the 
        107th Congress (Senate Report 107-151, filed May 15, 
        2002), at page 442 of that report directed that the 
        Chief of Naval Operations submit to the congressional 
        defense committees, not later than 180 days after 
        enactment of the defense authorization Act for fiscal 
        year 2003, a report on plans of the Navy for basing 
        aircraft carriers through 2015;
            (2) the Bob Stump National Defense Authorization 
        Act for Fiscal Year 2003 (Public Law 107-314) was 
        enacted on December 2, 2002; and
            (3) as of October 24, 2003, the Chief of Naval 
        Operations has not submitted the report referred to in 
        paragraph (1).
    (b) Report on Aircraft Carrier Basing Plans.--Not later 
than 120 days after the date of the enactment of this Act, the 
Secretary of Defense shall submit to the congressional defense 
committees a report on plans of the Navy for basing aircraft 
carriers through 2020.

SEC. 1018. LIMITATION ON DISPOSAL OF OBSOLETE NAVAL VESSEL.

    The Secretary of the Navy may not dispose of the 
decommissioned destroyer ex-Forrest Sherman (DD-931) before 
October 1, 2004, to an entity that is not a nonprofit 
organization unless the Secretary first determines that there 
is no nonprofit organization that meets the criteria for 
donation of that vessel under section 7306(a)(3) of title 10, 
United States Code.

                    Subtitle C--Counterdrug Matters

SEC. 1021. EXPANSION AND EXTENSION OF AUTHORITY TO PROVIDE ADDITIONAL 
                    SUPPORT FOR COUNTER-DRUG ACTIVITIES.

    (a) General Extension of Authority.--Subsection (a) of 
section 1033 of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1881) is 
amended--
            (1) by inserting ``(1)'' before ``Subject to'';
            (2) by striking ``either or both'' and inserting 
        ``any''; and
            (3) by inserting after the second sentence the 
        following new paragraph:
    ``(2) The authority to provide support to a government 
under this section expires September 30, 2006.''.
    (b) Additional Governments Eligible To Receive Support.--
Subsection (b) of such section is amended by adding at the end 
the following new paragraphs:
            ``(3) The Government of Afghanistan.
            ``(4) The Government of Bolivia.
            ``(5) The Government of Ecuador.
            ``(6) The Government of Pakistan.
            ``(7) The Government of Tajikistan.
            ``(8) The Government of Turkmenistan.
            ``(9) The Government of Uzbekistan.''.
    (c) Types of Support.--Subsection (c) of such section is 
amended--
            (1) in paragraph (2), by striking ``riverine''; and
            (2) in paragraph (3), by inserting ``or upgrade'' 
        after ``maintenance and repair''.
    (d) Maximum Annual Amount of Support.--Subsection (e)(2) of 
such section is amended by striking ``$20,000,000 during any of 
the fiscal years 1999 through 2006'' and inserting 
``$20,000,000 during any of the fiscal years 1999 through 2003, 
or $40,000,000 during any of the fiscal years 2004 through 
2006''.
    (e) Counter-Drug Plan.--(1) Subsection (h) of such section 
is amended--
            (A) in the subsection caption, by striking 
        ``Riverine'';
            (B) in the matter preceding paragraph (1)--
                    (i) by striking ``fiscal year 1998'' and 
                inserting ``fiscal year 2004''; and
                    (ii) by striking ``riverine''; and
            (C) by striking ``riverine'' each place it appears 
        in paragraphs (2), (7), (8), and (9).
    (2) Subsection (f)(2)(A) of such section is amended by 
striking ``riverine''.
    (f) Clerical and Conforming Amendments.--(1) Subsection (b) 
of such section is further amended
            (A) in paragraph (1), by striking ``, for fiscal 
        years 1998 through 2002''; and
            (B) in paragraph (2), by striking ``, for fiscal 
        years 1998 through 2006''.
    (2) The heading for such section is amended by striking 
``PERU AND COLOMBIA'' and inserting ``OTHER COUNTRIES''.

SEC. 1022. AUTHORITY FOR JOINT TASK FORCES TO PROVIDE SUPPORT TO LAW 
                    ENFORCEMENT AGENCIES CONDUCTING COUNTER-TERRORISM 
                    ACTIVITIES.

    (a) Authority.--A joint task force of the Department of 
Defense that provides support to law enforcement agencies 
conducting counter-drug activities may also provide, subject to 
all applicable laws and regulations, support to law enforcement 
agencies conducting counter-terrorism activities.
    (b) Conditions.--Any support provided under subsection (a) 
may only be provided in the geographic area of responsibility 
of the joint task force.

SEC. 1023. USE OF FUNDS FOR UNIFIED COUNTERDRUG AND COUNTERTERRORISM 
                    CAMPAIGN IN COLOMBIA.

    (a) Authority.--(1) In fiscal year 2004, funds available to 
the Department of Defense to provide assistance to the 
Government of Colombia may be used by the Secretary of Defense 
to support a unified campaign by the Government of Colombia 
against narcotics trafficking and against activities by 
organizations designated as terrorist organizations, such as 
the Revolutionary Armed Forces of Colombia (FARC), the National 
Liberation Army (ELN), and the United Self-Defense Forces of 
Colombia (AUC).
    (2) The authority to provide assistance for a campaign 
under this subsection includes authority to take actions to 
protect human health and welfare in emergency circumstances, 
including the undertaking of rescue operations.
    (b) Applicability of Certain Laws and Limitations.--The use 
of funds pursuant to the authority in subsection (a) shall be 
subject to the following:
            (1) Sections 556, 567, and 568 of the Foreign 
        Operations, Export Financing, and Related Programs 
        Appropriations Act, 2002 (Public Law 107-115; 115 Stat. 
        2160, 2165, and 2166).
            (2) Section 8077 of the Department of Defense 
        Appropriations Act, 2004 (Public Law 108-87; 115 Stat. 
        2267).
            (3) The numerical limitations on the number of 
        United States military personnel and United States 
        individual civilian contractors in section 3204(b)(1) 
        of the Emergency Supplemental Act, 2000 (division B of 
        Public Law 106-246; 114 Stat. 575), as amended by the 
        Foreign Operations, Export Financing, and Related 
        Programs Appropriations Act, 2002 (Public Law 107-115; 
        115 Stat. 2131).
    (c) Limitation on Participation of United States 
Personnel.--No United States Armed Forces personnel, United 
States civilian employees, or United States civilian contractor 
personnel employed by the United States may participate in any 
combat operation in connection with assistance using funds 
pursuant to the authority in subsection (a), except for the 
purpose of acting in self defense or of rescuing any United 
States citizen, including any United States Armed Forces 
personnel, United States civilian employee, or civilian 
contractor employed by the United States.
    (d) Relation to Other Authority.--The authority provided by 
subsection (a) is in addition to any other authority in law to 
provide assistance to the Government of Colombia.

SEC. 1024. SENSE OF CONGRESS ON RECONSIDERATION OF DECISION TO 
                    TERMINATE BORDER AND SEAPORT INSPECTION DUTIES OF 
                    NATIONAL GUARD UNDER NATIONAL GUARD DRUG 
                    INTERDICTION AND COUNTER-DRUG MISSION.

    (a) Findings.--Congress makes the following findings:
            (1) The counter-drug inspection mission of the 
        National Guard is highly important in preventing the 
        entry of illegal narcotics into the United States.
            (2) The expertise of members of the National Guard 
        in conducting vehicle inspections at United States 
        borders and seaports has contributed to the 
        identification and seizure of illegal narcotics being 
        smuggled into the United States.
            (3) The support provided by the National Guard to 
        the United States Customs Service and the Bureau of 
        Border Security of the Department of Homeland Security 
        greatly enhances the capability of these agencies to 
        perform counter-terrorism surveillance and other border 
        protection duties.
    (b) Sense of Congress.--It is the sense of Congress that 
the Secretary of Defense should reconsider the decision of the 
Department of Defense to terminate the border inspection and 
seaport inspection duties of the National Guard as part of the 
drug interdiction and counter-drug mission of the National 
Guard.

                          Subtitle D--Reports

SEC. 1031. REPEAL AND MODIFICATION OF VARIOUS REPORTING REQUIREMENTS 
                    APPLICABLE TO THE DEPARTMENT OF DEFENSE.

    (a) Title 10, United States Code.--Title 10, United States 
Code, is amended as follows:
            (1) Section 117(e) is amended by striking ``each 
        month'' and all that follows through ``subsection (d)'' 
        and inserting ``each quarter submit to the 
        congressional defense committees a report in writing 
        containing the results of the most recent joint 
        readiness review under subsection (d)(1)(A)''.
            (2) Section 127(d) is amended to read as follows:
    ``(d) Annual Report.--Not later than December 1 each year, 
the Secretary of Defense shall submit to the congressional 
defense committees a report on expenditures during the 
preceding fiscal year under subsections (a) and (b).''.
            (3) Section 127a is amended by striking subsection 
        (d).
            (4) Section 128 is amended by striking subsection 
        (d).
            (5) Section 226(a) is amended--
                    (A) by striking ``December 15'' and 
                inserting ``January 15''; and
                    (B) by striking ``in the following year'' 
                in paragraph (1) and inserting ``in that 
                year''.
            (6)(A) Section 228 is amended--
                    (i) in subsection (a)--
                            (I) by striking ``Monthly'' in the 
                        subsection heading and inserting 
                        ``Quarterly'';
                            (II) by striking ``monthly'' and 
                        inserting ``quarterly''; and
                            (III) by striking ``month'' and 
                        inserting ``fiscal-year quarter''; and
                    (ii) in subsection (c), by striking 
                ``month'' each place it appears and inserting 
                ``quarter''.
            (B)(i) The heading of such section is amended to 
        read as follows:

``Sec. 228. Quarterly reports on allocation of funds within operation 
                    and maintenance budget subactivities''.

            (ii) The item relating to section 228 in the table 
        of sections at the beginning of chapter 9 is amended to 
        read as follows:

``228. Quarterly reports on allocation of funds within operation and 
          maintenance budget subactivities.''.

            (7) Section 437 is amended--
                    (A) by striking the second sentence of 
                subsection (b); and
                    (B) in subsection (c)--
                            (i) by striking ``report)--'' in 
                        the matter preceding paragraph (1) and 
                        inserting ``report) the following:'';
                            (ii) by striking ``a'' in 
                        paragraphs (1), (2), and (3) after the 
                        paragraph designation and inserting 
                        ``A'';
                            (iii) by striking the semicolon at 
                        the end of paragraph (1) and inserting 
                        a period;
                            (iv) by striking ``; and'' at the 
                        end of paragraph (2) and inserting a 
                        period; and
                            (v) by adding at the end the 
                        following new paragraph:
            ``(4) A description of each corporation, 
        partnership, or other legal entity that was 
        established.''.
            (8)(A) Section 520c is amended--
                    (i) by striking subsection (b);
                    (ii) by striking ``(a) Provision of Meals 
                and Refreshments.--''; and
                    (iii) by striking the heading for such 
                section and inserting the following:

``Sec. 520c. Recruiting functions: provision of meals and 
                    refreshments''.

            (B) The item relating to such section in the table 
        of sections at the beginning of chapter 31 is amended 
        to read as follows:

``520c. Recruiting functions: provision of meals and refreshments.''.

            (9) Section 1060 is amended by striking subsection 
        (d).
            (10)(A) Section 1130 is amended--
                    (i) in subsection (a), by striking ``and 
                the other determinations necessary to comply 
                with subsection (b)''; and
                    (ii) in subsection (b), by striking ``to 
                the requesting'' and all that follows and 
                inserting ``to the requesting Member of 
                Congress a detailed discussion of the rationale 
                supporting the determination.''.
            (B) The heading for such section, and the item 
        relating to such section in the table of sections at 
        the beginning of chapter 57, are each amended by 
        striking the last two words.
            (11)(A) Section 1563 is amended--
                    (i) in subsection (a), by striking ``and 
                the other determinations necessary to comply 
                with subsection (b)''; and
                    (ii) in subsection (b), by striking 
                ``notice in writing'' and all that follows and 
                inserting ``a detailed discussion of the 
                rationale supporting the determination.''.
            (B) The heading for such section, and the item 
        relating to such section in the table of sections at 
        the beginning of chapter 80, are each amended by 
        striking the last two words.
            (12) Section 2224 is amended by striking subsection 
        (e).
            (13) Section 2255(b) is amended--
                    (A) by striking paragraph (2);
                    (B) by striking ``(1)'' after ``(b) 
                Exception.--'';
                    (C) by redesignating subparagraphs (A) and 
                (B) as paragraphs (1) and (2), respectively; 
                and
                    (D) by redesignating clauses (i), (ii), and 
                (iii) of paragraph (1), as redesignated by 
                subparagraph (C), as subparagraphs (A), (B), 
                and (C), respectively.
            (14) Section 2282 is amended by inserting ``through 
        2008'' after ``March 1 of each year''.
            (15) Section 2323(i) is amended by striking 
        paragraph (3).
            (16) Section 2327(c)(1) is amended--
                    (A) in subparagraph (A), by striking 
                ``after the date on which such head of an 
                agency submits to Congress a report on the 
                contract'' and inserting ``if in the best 
                interests of the Government'';
                    (B) in subparagraph (B), by striking ``A 
                report under subparagraph (A)'' and inserting 
                ``The Secretary shall maintain records of each 
                contract entered into by reason of subparagraph 
                (A). Such records''; and
                    (C) by striking subparagraph (C).
            (17) Section 2350a is amended by striking 
        subsection (f).
            (18) Section 2350j(e)(2) is amended by inserting 
        before the period the following: ``or, if earlier, the 
        end of the 14-day period beginning on the date on which 
        a copy of that report is provided in an electronic 
        medium pursuant to section 480 of this title''.
            (19) Section 2371(h) is amended by adding at the 
        end the following new paragraph:
    ``(3) No report is required under this subsection for a 
fiscal year after fiscal year 2006.''.
            (20) Section 2374a(e) is amended by inserting 
        ``during which one or more prizes are awarded under the 
        program under subsection (a)'' in the first sentence 
        after ``each fiscal year''.
            (21) Section 2410m(c) is amended--
                    (A) by striking ``Reporting Requirement.--
                Each year'' and inserting ``Annual Report.--Not 
                later than 60 days after the end of each fiscal 
                year'';
                    (B) by inserting ``at the end of such 
                fiscal year'' in paragraph (1) before the 
                period;
                    (C) by striking ``during the year preceding 
                the year in which the report is submitted'' in 
                paragraph (2) and inserting ``under this 
                section during that fiscal year'';
                    (D) by striking ``in such preceding year'' 
                in paragraph (3) and inserting ``under this 
                section during that fiscal year''; and
                    (E) by striking ``in such preceding year'' 
                in paragraph (4) and inserting ``under this 
                section during that fiscal year''.
            (22) Section 2457 is amended by striking subsection 
        (d).
            (23) Section 2515(d) is amended--
                    (A) by striking ``Annual'' in the 
                subsection heading and inserting ``Biennial''; 
                and
                    (B) in paragraph (1)--
                            (i) in the first sentence, by 
                        striking ``an annual report'' and 
                        inserting ``a biennial report'';
                            (ii) in the second sentence, by 
                        striking ``each year'' and inserting 
                        ``each even-numbered year''; and
                            (iii) in the third sentence, by 
                        striking ``during the fiscal year'' and 
                        inserting ``during the two fiscal 
                        years''.
            (24) Section 2521 is amended by striking subsection 
        (e).
            (25) Section 2541d is amended--
                    (A) by striking subsection (b); and
                    (B) in subsection (a), by striking ``(a)'' 
                and all that follows through ``The Secretary of 
                Defense'' and inserting ``The Secretary of 
                Defense''.
            (26) Section 2645 is amended--
                    (A) in subsection (d)--
                            (i) by striking ``to Congress'' and 
                        all that follows through ``notification 
                        of the loss'' in paragraph (1) and 
                        inserting ``to Congress notification of 
                        the loss'';
                            (ii) by striking ``loss; and'' and 
                        inserting ``loss.''; and
                            (iii) by striking paragraph (2); 
                        and
                    (B) by striking subsection (g).
            (27) Section 2662 is amended--
                    (A) in subsection (a)--
                            (i) by redesignating paragraphs (1) 
                        through (6) as subparagraphs (A) 
                        through (F), respectively, and by 
                        designating the sentences following 
                        subparagraph (F), as so redesignated, 
                        as paragraph (2);
                            (ii) in paragraph (2), as so 
                        designated, by striking ``clause (1) or 
                        (2)'' and inserting ``subparagraph (A) 
                        or (B) of paragraph (1)'' and by 
                        striking ``clause (5)'' and inserting 
                        ``subparagraph (E)'';
                            (iii) by inserting ``(1)'' before 
                        ``The Secretary'';
                            (iv) by striking ``after the 
                        expiration of 30 days'' and all that 
                        follows through ``is submitted'' and 
                        inserting ``the Secretary submits a 
                        report, subject to paragraph (3),'';
                            (v) by striking ``$500,000'' each 
                        place it appears and inserting 
                        ``$750,000''; and
                            (vi) by adding at the end the 
                        following new paragraphs:
    ``(3) The authority of the Secretary of a military 
department to enter into a transaction described in paragraph 
(1) commences only after--
            ``(A) the end of the 30-day period beginning on the 
        first day of the month with respect to which the report 
        containing the facts concerning such transaction, and 
        all other such proposed transactions for that month, is 
        submitted under paragraph (1); or
            ``(B) the end of the 14-day period beginning on the 
        first day of that month when a copy of the report is 
        provided in an electronic medium pursuant to section 
        480 of this title on or before the first day of that 
        month.
    ``(4) The report for a month under this subsection may not 
be submitted later than the first day of that month.'';
                    (B) in subsection (b), by striking ``more 
                than'' and all that follows through 
                ``$500,000'' and inserting ``more than 
                $250,000, but not more than $750,000''; and
                    (C) in subsection (e)--
                            (i) by striking ``$500,000'' and 
                        inserting ``$750,000''; and
                            (ii) by striking ``the expiration'' 
                        and all that follows through the period 
                        at the end and inserting the following: 
                        ``the end of the 30-day period 
                        beginning on the date on which a report 
                        of the facts concerning the proposed 
                        occupancy is submitted to the 
                        congressional committees named in 
                        subsection (a) or, if earlier, the end 
                        of the 14-day period beginning on the 
                        date on which a copy of the report is 
                        provided in an electronic medium 
                        pursuant to section 480 of this 
                        title.''.
            (28) Section 2667a(c)(2) is amended--
                    (A) by striking ``Not later than 45 days 
                before'' and inserting ``Before''; and
                    (B) by adding at the end the following new 
                sentence: ``The Secretary may then enter into 
                the lease only after the end of the 30-day 
                period beginning on the date on which the 
                report is submitted or, if earlier, the end of 
                the 14-day period beginning on the date on 
                which a copy of the report is provided in an 
                electronic medium pursuant to section 480 of 
                this title.''.
            (29) Section 2672a is amended--
                    (A) in subsection (a)(1), by striking ``he 
                or his designee'' and inserting ``the 
                Secretary'';
                    (B) in subsection (b), by striking the last 
                sentence; and
                    (C) by adding at the end the following new 
                subsection:
    ``(c) Not later than 10 days after the date on which the 
Secretary of a military department determines to acquire an 
interest in land under the authority of this section, the 
Secretary shall submit to the Committee on Armed Services of 
the Senate and the Committee on Armed Services of the House of 
Representatives written notice containing a description of the 
property and interest to be acquired and the reasons for the 
acquisition.''.
            (30) Section 2676(d) is amended by inserting before 
        the period at the end of the last sentence the 
        following: ``or, if over sooner, a period of 14 days 
        elapses from the date on which a copy of that 
        notification is provided in an electronic medium 
        pursuant to section 480 of this title''.
            (31) Section 2680 is amended by striking subsection 
        (e).
            (32) Section 2688(e) is amended to read as follows:
    ``(e) Quarterly Report.--Not later than 30 days after the 
end of each quarter of a fiscal year, the Secretary shall 
submit to the congressional defense committees a report on the 
conveyances made under subsection (a) during such fiscal 
quarter. The report shall include, for each such conveyance, an 
economic analysis (based upon accepted life-cycle costing 
procedures approved by the Secretary of Defense) demonstrating 
that--
            ``(1) the long-term economic benefit of the 
        conveyance to the United States exceeds the long-term 
        economic cost of the conveyance to the United States; 
        and
            ``(2) the conveyance will reduce the long-term 
        costs of the United States for utility services 
        provided by the utility system concerned.''.
            (33) Section 2696 is amended--
                    (A) in subsection (b)--
                            (i) in paragraph (1), by inserting 
                        ``and Congress'' after ``the Secretary 
                        concerned'' the second place it 
                        appears; and
                            (ii) in paragraph (2), by inserting 
                        ``and Congress'' after ``the Secretary 
                        concerned'' the first place it appears;
                    (B) by striking subsection (c); and
                    (C) by striking subsection (d) and 
                inserting the following new subsection (d):
    ``(d) Effect of Submission of Notice.--If the Administrator 
of General Services submits notice under subsection (b)(1) that 
further Federal use of a parcel of real property is requested 
by a Federal agency, the Secretary concerned may not proceed 
with the conveyance of the real property as provided in the 
provision of law authorizing or requiring the conveyance until 
the end of the 180-day period beginning on the date on which 
the notice is submitted to Congress.''.
            (34) Section 2803(b) is amended by inserting before 
        the period at the end of the last sentence the 
        following: ``or, if earlier, the end of the seven-day 
        period beginning on the date on which a copy of the 
        notification is provided in an electronic medium 
        pursuant to section 480 of this title''.
            (35) Section 2804(b) is amended by inserting before 
        the period at the end of the last sentence the 
        following: ``or, if earlier, the end of the 14-day 
        period beginning on the date on which a copy of the 
        notification is provided in an electronic medium 
        pursuant to section 480 of this title''.
            (36) Section 2805(b)(2) is amended by inserting 
        before the period at the end of the last sentence the 
        following: ``or, if earlier, the end of the 14-day 
        period beginning on the date on which a copy of the 
        notification is provided in an electronic medium 
        pursuant to section 480 of this title''.
            (37) Section 2807 is amended--
                    (A) in subsection (b)--
                            (i) by striking ``$500,000'' and 
                        inserting ``$1,000,000'';
                            (ii) by striking ``not less than 21 
                        days''; and
                            (iii) by adding at the end the 
                        following new sentence: ``The Secretary 
                        may then obligate funds for such 
                        services only after the end of the 21-
                        day period beginning on the date on 
                        which the notification is received by 
                        the committees or, if earlier, the end 
                        of the 14-day period beginning on the 
                        date on which a copy of the report is 
                        provided in an electronic medium 
                        pursuant to section 480 of this 
                        title.''; and
                    (B) in subsection (c)(2), by inserting 
                before the period at the end the following: 
                ``or, if over sooner, a period of 14 days has 
                elapsed from the date on which a copy of the 
                report is provided in an electronic medium 
                pursuant to section 480 of this title''.
            (38) Section 2809(f)(2) is amended--
                    (A) by striking ``calendar''; and
                    (B) by inserting before the period at the 
                end the following: ``or, if over sooner, a 
                period of 14 days has expired following the 
                date on which a copy of the justification and 
                economic analysis are provided in an electronic 
                medium pursuant to section 480 of this title''.
            (39) Section 2812(c)(1)(B) is amended by inserting 
        before the period at the end the following: ``or, if 
        over sooner, a period of 14 days has expired following 
        the date on which a copy of the justification and 
        economic analysis are provided in an electronic medium 
        pursuant to section 480 of this title''.
            (40) Section 2813(c) is amended--
                    (A) by striking ``the end of the 30-day 
                period beginning on the date''; and
                    (B) by adding at the end the following new 
                sentence: ``After the notification is 
                transmitted, the Secretary may then enter into 
                the contract only after the end of the 30-day 
                period beginning on the date on which the 
                notification is received by the committees or, 
                if earlier, the end of the 21-day period 
                beginning on the date on which a copy of the 
                report is provided in an electronic medium 
                pursuant to section 480 of this title.''.
            (41) Section 2825 is amended--
                    (A) in subsection (b)(1)--
                            (i) by striking ``(i)'' in the last 
                        sentence; and
                            (ii) by striking ``, and (ii)'' and 
                        all that follows and inserting a period 
                        and the following new sentence: ``If 
                        the Secretary concerned makes a 
                        determination under the preceding 
                        sentence with respect to an 
                        improvement, the waiver under that 
                        sentence with respect to that 
                        improvement may take effect only after 
                        the Secretary transmits a notice of the 
                        proposed waiver, together with an 
                        economic analysis demonstrating that 
                        the improvement will be cost effective, 
                        to the appropriate committees of 
                        Congress and a period of 21 days has 
                        elapsed after the date on which the 
                        notification is received by those 
                        committees or, if over sooner, a period 
                        of 14 days has elapsed after the date 
                        on which a copy of the notice is 
                        provided in an electronic medium 
                        pursuant to section 480 of this 
                        title.''; and
                    (B) in subsection (c)(1)(D), by inserting 
                before the period at the end the following: 
                ``or, if over sooner, a period of 14 days 
                elapses after the date on which a copy of the 
                notice is provided in an electronic medium 
                pursuant to section 480 of this title'' .
            (42) Section 2827(b)(2) is amended by inserting 
        before the period at the end the following: ``or, if 
        over sooner, a period of 14 days has elapsed after the 
        date on which a copy of the notification is provided in 
        an electronic medium pursuant to section 480 of this 
        title''.
            (43) Section 2836(f)(2) is amended--
                    (A) by striking ``21 calendar days'' and 
                inserting ``21 days''; and
                    (B) by inserting before the period at the 
                end the following: ``or, if over sooner, a 
                period of 14 days has expired following the 
                date on which a copy of the economic analysis 
                is provided in an electronic medium pursuant to 
                section 480 of this title''.
            (44) Section 2837(c)(2) is amended by inserting 
        before the period at the end of the last sentence the 
        following: ``or, if earlier, the end of the 14-day 
        period beginning on the date on which a copy of the 
        report is provided in an electronic medium pursuant to 
        section 480 of this title''.
            (45) Section 2854(b) is amended by inserting before 
        the period at the end of the last sentence the 
        following: ``or, if earlier, the end of the seven-day 
        period beginning on the date on which a copy of the 
        notification is provided in an electronic medium 
        pursuant to section 480 of this title''.
            (46) Section 2854a(c)(2) is amended--
                    (A) by striking ``calendar''; and
                    (B) by inserting before the period at the 
                end the following: ``or, if over sooner, a 
                period of 14 days has elapsed after the date on 
                which a copy of the justification is provided 
                in an electronic medium pursuant to section 480 
                of this title''.
            (47) Section 2865(e)(2) is amended by inserting 
        before the period at the end of the last sentence the 
        following: ``or, if earlier, the end of the 14-day 
        period beginning on the date on which a copy of the 
        notification is provided in an electronic medium 
        pursuant to section 480 of this title''.
            (48) Section 2866(c)(2) is amended by inserting 
        before the period at the end of the last sentence the 
        following: ``or, if earlier, the end of the 14-day 
        period beginning on the date on which a copy of the 
        notification is provided in an electronic medium 
        pursuant to section 480 of this title''.
            (49) Section 2867(c) is amended by inserting before 
        the period at the end of the last sentence the 
        following: ``or, if earlier, the end of the 14-day 
        period beginning on the date on which a copy of the 
        notification is provided in an electronic medium 
        pursuant to section 480 of this title''.
            (50) Section 2875(e) is amended by inserting before 
        the period at the end the following: ``or, if earlier, 
        the end of the 14-day period beginning on the date on 
        which a copy of the notice and justification is 
        provided in an electronic medium pursuant to section 
        480 of this title''.
            (51) Section 2883(f) is amended by inserting before 
        the period at the end the following: ``or, if earlier, 
        the end of the 14-day period beginning on the date on 
        which a copy of the notice and justification is 
        provided in an electronic medium pursuant to section 
        480 of this title''.
            (52) Section 2902(g) is amended--
                    (A) by striking paragraph (2); and
                    (B) by striking ``(1)'' after ``(g)''.
            (53) Section 4342(h) is amended by striking 
        ``Secretary of the Army'' and inserting 
        ``Superintendent''.
            (54) Section 4357(c) is amended by inserting before 
        the period at the end the following: ``or, if earlier, 
        the expiration of 14 days following the date on which a 
        copy of the report is provided in an electronic medium 
        pursuant to section 480 of this title''.
            (55) Section 6954(f) is amended by striking 
        ``Secretary of the Navy'' and inserting 
        ``Superintendent of the Naval Academy''.
            (56) Section 6975(c) is amended by inserting before 
        the period at the end the following: ``or, if earlier, 
        the expiration of 14 days following the date on which a 
        copy of the report is provided in an electronic medium 
        pursuant to section 480 of this title''.
            (57) Section 7049(c) is amended--
                    (A) by striking ``Certification'' in the 
                subsection heading and inserting 
                ``Determination''; and
                    (B) by striking ``, and certifies to'' and 
                all that follows through ``House of 
                Representatives,''.
            (58) Section 9342(h) is amended by striking 
        ``Secretary of the Air Force'' and inserting 
        ``Superintendent''.
            (59) Section 9356(c) is amended by inserting before 
        the period at the end the following: ``or, if earlier, 
        the expiration of 14 days following the date on which a 
        copy of the report is provided in an electronic medium 
        pursuant to section 480 of this title''.
            (60) Section 9514 is amended--
                    (A) in subsection (c)--
                            (i) by striking ``to Congress'' and 
                        all that follows through ``notification 
                        of the loss'' in paragraph (1) and 
                        inserting ``to Congress notification of 
                        the loss'';
                            (ii) by striking ``loss; and'' and 
                        inserting ``loss.''; and
                            (iii) by striking paragraph (2); 
                        and
                    (B) by striking subsection (f).
            (61) Section 12302 is amended by striking 
        subsection (d).
    (b) National Defense Authorization Act for Fiscal Year 
1991.--Section 2921(g) of the National Defense Authorization 
Act for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2687 
note) is amended--
            (1) in paragraph (1), by striking ``Not less than 
        30 days before'' and inserting ``Before'';
            (2) in paragraph (2), by striking ``Not less than 
        30 days before'' and inserting ``Before''; and
            (3) by adding at the end the following new 
        paragraph:
    ``(3) When the Secretary submits a notification of a 
proposed agreement under paragraph (1) or (2), the Secretary 
may then enter into the agreement described in the notification 
only after the end of the 30-day period beginning on the date 
on which the notification is submitted or, if earlier, the end 
of the 14-day period beginning on the date on which a copy of 
the notification is provided in an electronic medium pursuant 
to section 480 of title 10, United States Code.''.
    (c) National Defense Authorization Act for Fiscal Years 
1992 and 1993.--The National Defense Authorization Act for 
Fiscal Years 1992 and 1993 (Public Law 102-190) is amended as 
follows:
            (1) Section 734 (10 U.S.C. 1074 note) is amended by 
        striking subsection (c).
            (2) Section 2868(a) (10 U.S.C. 2802 note) is 
        amended by striking ``The Secretary of Defense'' and 
        all that follows through ``is to be authorized'' and 
        inserting ``Not later than 30 days after the date on 
        which a decision is made selecting the site or sites 
        for the permanent basing of a new weapon system, the 
        Secretary of Defense shall submit to Congress''.
    (d) National Defense Authorization Act for Fiscal Year 
1993.--The National Defense Authorization Act for Fiscal Year 
1993 (Public Law 102-484) is amended as follows:
            (1) Section 324 (10 U.S.C. 2701 note) is amended--
                    (A) by striking ``(a) Sense of Congress.--
                ''; and
                    (B) by striking subsection (b).
            (2) Section 1082(b)(1) (10 U.S.C. 113 note) is 
        amended by striking ``the Secretary of Defense--'' and 
        all that follows and inserting ``the Secretary of 
        Defense determines that it is in the national security 
        interests of the United States for the military 
        departments to do so.''.
    (e) National Defense Authorization Act for Fiscal Year 
1995.--Section 721 of the National Defense Authorization Act 
for Fiscal Year 1995 (Public Law 103-337; 10 U.S.C. 1074 note) 
is amended by striking subsection (h).
    (f) National Defense Authorization Act for Fiscal Year 
1997.--The National Defense Authorization Act for Fiscal Year 
1997 (Public Law 104-201) is amended as follows:
            (1) Section 324 (10 U.S.C. 2706 note) is amended by 
        striking subsection (c).
            (2) Section 1065(b) (10 U.S.C. 113 note) is 
        amended--
                    (A) by striking ``(1)'' before 
                ``Notwithstanding''; and
                    (B) by striking paragraph (2).
    (g) Strom Thurmond National Defense Authorization Act for 
Fiscal Year 1999.--The Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (Public Law 105-261) is 
amended as follows:
            (1) Section 745(e) (10 U.S.C. 1071 note) is 
        amended--
                    (A) by striking ``(1)'' before ``The 
                Secretary of Defense''; and
                    (B) by striking paragraph (2).
            (2) Section 1223 (22 U.S.C. 1928 note) is repealed.
    (h) National Defense Authorization Act for Fiscal Year 
2000.--The National Defense Authorization Act for Fiscal Year 
2000 (Public Law 106-65) is amended as follows:
            (1) Section 212 (10 U.S.C. 2501 note) is amended by 
        striking subsection (c).
            (2) Section 724 (10 U.S.C. 1092 note) is amended by 
        striking subsection (e).
            (3) Section 1039 (10 U.S.C. 113 note) is amended by 
        striking subsection (b).
    (i) Military Construction Appropriations Act, 2001.--
Section 125 of the Military Construction Appropriations Act, 
2001 (division A of Public Law 106-246; 114 Stat. 517), is 
repealed.
    (j) Department of Defense Appropriations Act, 2002.--
Section 8009 of the Department of Defense Appropriations Act, 
2002 (division A of Public Law 107-117; 115 Stat. 2249; 10 
U.S.C. 401 note), is amended by striking ``, and these 
obligations shall be reported to the Congress''.

SEC. 1032. PLAN FOR PROMPT GLOBAL STRIKE CAPABILITY.

    (a) Integrated Plan for Prompt Global Strike Capability.--
The Secretary of Defense shall establish an integrated plan for 
developing, deploying, and sustaining a prompt global strike 
capability in the Armed Forces. The Secretary shall update the 
plan annually.
    (b) Annual Reports.--(1) Not later than April 1 of each of 
2004, 2005, and 2006, the Secretary shall submit to the 
congressional defense committees a report on the plan 
established under subsection (a).
    (2) Each report under paragraph (1) shall include the 
following:
            (A) A description and assessment of the targets 
        against which long-range strike assets might be 
        directed and the conditions under which those assets 
        might be used.
            (B) The role of, and plans for ensuring, 
        sustainment and modernization of current long-range 
        strike assets, including bombers, intercontinental 
        ballistic missiles, and submarine-launched ballistic 
        missiles.
            (C) A description of the capabilities desired for 
        advanced long-range strike assets and plans to achieve 
        those capabilities.
            (D) A description of the capabilities desired for 
        advanced conventional munitions and the plans to 
        achieve those capabilities.
            (E) An assessment of advanced nuclear concepts that 
        could contribute to the prompt global strike mission.
            (F) An assessment of the command, control, and 
        communications capabilities necessary to support prompt 
        global strike capabilities.
            (G) An assessment of intelligence, surveillance, 
        and reconnaissance capabilities necessary to support 
        prompt global strike capabilities.
            (H) A description of how prompt global strike 
        capabilities are to be integrated with theater strike 
        capabilities.
            (I) An estimated schedule for achieving the desired 
        prompt global strike capabilities.
            (J) The estimated cost of achieving the desired 
        prompt global strike capabilities.
            (K) A description of ongoing and future studies 
        necessary for updating the plan appropriately.

SEC. 1033. ANNUAL REPORT CONCERNING DISMANTLING OF STRATEGIC NUCLEAR 
                    WARHEADS.

    (a) Annual Report.--Concurrent with the submission of the 
President's budget request to Congress each year, the Director 
of Central Intelligence shall submit to the committees 
specified in subsection (e) a report concerning dismantlement 
of Russian strategic nuclear warheads under the Moscow Treaty. 
Each such report shall discuss nuclear weapons dismantled by 
Russia during the prior fiscal year and the Director's 
projections for nuclear weapons to be dismantled by Russia 
during the current fiscal year and the fiscal year covered by 
the budget.
    (b) Classification.--The annual report under this section 
shall be transmitted in an unclassified form when possible and 
classified form as necessary.
    (c) Termination of Report Requirement.--The requirement to 
submit an annual report under this section terminates when the 
Moscow Treaty is no longer in effect.
    (d) Moscow Treaty Defined.--For purposes of this section, 
the term ``Moscow Treaty'' means the Treaty Between the United 
States of America and the Russian Federation on Strategic 
Offensive Reductions, done at Moscow on May 24, 2002.
    (e) Committees Specified.--The committees to which annual 
reports are to be submitted under this section are the 
following:
            (1) The Committee on Armed Services, the Select 
        Committee on Intelligence, and the Committee on Foreign 
        Relations of the Senate.
            (2) The Committee on Armed Services, the Permanent 
        Select Committee on Intelligence, and the Committee on 
        International Relations of the House of 
        Representatives.

SEC. 1034. REPORT ON USE OF UNMANNED AERIAL VEHICLES FOR SUPPORT OF 
                    HOMELAND SECURITY MISSIONS.

    (a) Requirement for Report.--Not later than April 1, 2004, 
the President shall submit to Congress a report on the 
potential uses of unmanned aerial vehicles for support of the 
performance of homeland security missions.
    (b) Content.--The report shall, at a minimum, include the 
following matters:
            (1) An assessment of the potential for using 
        unmanned aerial vehicles for monitoring activities in 
        remote areas along the northern and southern borders of 
        the United States.
            (2) An assessment of the potential for using long-
        endurance, land-based unmanned aerial vehicles for 
        supporting the Coast Guard in the performance of its--
                    (A) homeland security missions;
                    (B) drug interdiction missions; and
                    (C) other maritime missions along the 
                approximately 95,000 miles of inland waterways 
                in the United States.
            (3) An assessment of the potential for using 
        unmanned aerial vehicles for monitoring the safety and 
        integrity of critical infrastructure within the 
        territory of the United States, including the 
        following:
                    (A) Oil and gas pipelines.
                    (B) Long-distance power transmission lines.
                    (C) Hydroelectric and nuclear power plants.
                    (D) Dams and drinking water utilities.
            (4) An assessment of the potential for using 
        unmanned aerial vehicles for monitoring the 
        transportation of hazardous cargo.
            (5) A discussion of the safety issues involved in--
                    (A) the use of unmanned aerial vehicles by 
                agencies other than the Department of Defense; 
                and
                    (B) the operation of unmanned aerial 
                vehicles over populated areas of the United 
                States.
            (6) A discussion of--
                    (A) the effects on privacy and civil 
                liberties that could result from the monitoring 
                uses of unmanned aerial vehicles operated over 
                the territory of the United States; and
                    (B) any restrictions on the domestic use of 
                unmanned aerial vehicles that should be 
                imposed, or any other actions that should be 
                taken, to prevent any adverse effect of such a 
                use of unmanned aerial vehicles on privacy or 
                civil liberties.
            (7) A discussion of what, if any, legislation and 
        organizational changes may be necessary to accommodate 
        the use of unmanned aerial vehicles of the Department 
        of Defense in support of the performance of homeland 
        security missions, including any amendment of section 
        1385 of title 18, United States Code (popularly 
        referred to as the ``Posse Comitatus Act'').
            (8) An evaluation of the capabilities of 
        manufacturers of unmanned aerial vehicles to produce 
        such vehicles at higher rates if necessary to meet any 
        increased requirements for homeland security and 
        homeland defense missions.
    (c) Referral to Committees.--The report under subsection 
(a) shall--
            (1) upon receipt in the Senate, be referred to the 
        Committee on Armed Services of the Senate and other 
        committees, as appropriate; and
            (2) upon receipt in the House of Representatives, 
        be referred to the Committee on Armed Services of the 
        House of Representatives and other committees, as 
        appropriate.

    Subtitle E--Codifications, Definitions, and Technical Amendments

SEC. 1041. CODIFICATION AND REVISION OF DEFENSE COUNTERINTELLIGENCE 
                    POLYGRAPH PROGRAM AUTHORITY.

    (a) Codification.--(1) Chapter 80 of title 10, United 
States Code, is amended by inserting after section 1564 the 
following new section:

``Sec. 1564a. Counterintelligence polygraph program

    ``(a) Authority for Program.--The Secretary of Defense may 
carry out a program for the administration of 
counterintelligence polygraph examinations to persons described 
in subsection (b). The program shall be based on Department of 
Defense Directive 5210.48, dated December 24, 1984.
    ``(b) Persons Covered.--Except as provided in subsection 
(c), the following persons whose duties involve access to 
information that has been classified at the level of top secret 
or designated as being within a special access program under 
section 4.4(a) of Executive Order 12958 (or a successor 
Executive order) are subject to this section:
            ``(1) Military and civilian personnel of the 
        Department of Defense.
            ``(2) Personnel of defense contractors.
            ``(3) A person assigned or detailed to the 
        Department of Defense.
            ``(4) An applicant for a position in the Department 
        of Defense.
    ``(c) Exceptions From Coverage for Certain Intelligence 
Agencies and Functions.--This section does not apply to the 
following persons:
            ``(1) A person assigned or detailed to the Central 
        Intelligence Agency or to an expert or consultant under 
        a contract with the Central Intelligence Agency.
            ``(2) A person who is--
                    ``(A) employed by or assigned or detailed 
                to the National Security Agency;
                    ``(B) an expert or consultant under 
                contract to the National Security Agency;
                    ``(C) an employee of a contractor of the 
                National Security Agency; or
                    ``(D) a person applying for a position in 
                the National Security Agency.
            ``(3) A person assigned to a space where sensitive 
        cryptographic information is produced, processed, or 
        stored.
            ``(4) A person employed by, or assigned or detailed 
        to, an office within the Department of Defense for the 
        collection of specialized national foreign intelligence 
        through reconnaissance programs or a contractor of such 
        an office.
    ``(d) Oversight.--(1) The Secretary shall establish a 
process to monitor responsible and effective application of 
polygraph examinations within the Department of Defense.
    ``(2) The Secretary shall make information on the use of 
polygraphs within the Department of Defense available to the 
congressional defense committees.
    ``(e) Polygraph Research Program.--The Secretary shall 
carry out a continuing research program to support the 
polygraph examination activities of the Department of Defense. 
The program shall include--
            ``(1) an on-going evaluation of the validity of 
        polygraph techniques used by the Department;
            ``(2) research on polygraph countermeasures and 
        anti-countermeasures; and
            ``(3) developmental research on polygraph 
        techniques, instrumentation, and analytic methods.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 1564 
the following new item:

``1564a. Counterintelligence polygraph program.''.

    (b) Conforming Repeal.--Section 1121 of the National 
Defense Authorization Act for Fiscal Years 1988 and 1989 (10 
U.S.C. 113 note), is repealed.

SEC. 1042. GENERAL DEFINITIONS APPLICABLE TO FACILITIES AND OPERATIONS 
                    OF DEPARTMENT OF DEFENSE.

    (a) General Definitions Applicable to Facilities and 
Operations.--Section 101 of title 10, United States Code, is 
amended--
            (1) by redesignating subsections (e) and (f) as 
        subsections (f) and (g), respectively; and
            (2) by inserting after subsection (d) the following 
        new subsection (e):
    ``(e) Facilities and Operations.--The following definitions 
relating to facilities and operations apply in this title:
            ``(1) Range.--The term `range', when used in a 
        geographic sense, means a designated land or water area 
        that is set aside, managed, and used for range 
        activities of the Department of Defense. Such term 
        includes the following:
                    ``(A) Firing lines and positions, maneuver 
                areas, firing lanes, test pads, detonation 
                pads, impact areas, electronic scoring sites, 
                buffer zones with restricted access, and 
                exclusionary areas.
                    ``(B) Airspace areas designated for 
                military use in accordance with regulations and 
                procedures prescribed by the Administrator of 
                the Federal Aviation Administration.
            ``(2) Range activities.--The term `range 
        activities' means--
                    ``(A) research, development, testing, and 
                evaluation of military munitions, other 
                ordnance, and weapons systems; and
                    ``(B) the training of members of the armed 
                forces in the use and handling of military 
                munitions, other ordnance, and weapons systems.
            ``(3) Operational range.--The term `operational 
        range' means a range that is under the jurisdiction, 
        custody, or control of the Secretary of Defense and--
                    ``(A) that is used for range activities, or
                    ``(B) although not currently being used for 
                range activities, that is still considered by 
                the Secretary to be a range and has not been 
                put to a new use that is incompatible with 
                range activities.
            ``(4) Military munitions.--(A) The term `military 
        munitions' means all ammunition products and components 
        produced for or used by the armed forces for national 
        defense and security, including ammunition products or 
        components under the control of the Department of 
        Defense, the Coast Guard, the Department of Energy, and 
        the National Guard.
            ``(B) Such term includes the following:
                    ``(i) Confined gaseous, liquid, and solid 
                propellants.
                    ``(ii) Explosives, pyrotechnics, chemical 
                and riot control agents, smokes, and 
                incendiaries, including bulk explosives, and 
                chemical warfare agents.
                    ``(iii) Chemical munitions, rockets, guided 
                and ballistic missiles, bombs, warheads, mortar 
                rounds, artillery ammunition, small arms 
                ammunition, grenades, mines, torpedoes, depth 
                charges, cluster munitions and dispensers, and 
                demolition charges.
                    ``(iv) Devices and components of any item 
                specified in clauses (i) through (iii).
            ``(C) Such term does not include the following:
                    ``(i) Wholly inert items.
                    ``(ii) Improvised explosive devices.
                    ``(iii) Nuclear weapons, nuclear devices, 
                and nuclear components, other than nonnuclear 
                components of nuclear devices that are managed 
                under the nuclear weapons program of the 
                Department of Energy after all required 
                sanitization operations under the Atomic Energy 
                Act of 1954 (42 U.S.C. 2011 et seq.) have been 
                completed.
            ``(5) Unexploded ordnance.--The term `unexploded 
        ordnance' means military munitions that--
                    ``(A) have been primed, fused, armed, or 
                otherwise prepared for action;
                    ``(B) have been fired, dropped, launched, 
                projected, or placed in such a manner as to 
                constitute a hazard to operations, 
                installations, personnel, or material; and
                    ``(C) remain unexploded, whether by 
                malfunction, design, or any other cause.''.
    (b) References to Military Munitions, Etc.--Section 2710(e) 
of such title is amended--
            (1) by striking paragraphs (3), (5), and (9); and
            (2) by redesignating paragraphs (4), (6), (7), (8), 
        and (10) as paragraphs (3), (4), (5), (6), and (7), 
        respectively.

SEC. 1043. ADDITIONAL DEFINITIONS FOR PURPOSES OF TITLE 10, UNITED 
                    STATES CODE.

    (a) General Definitions.--Section 101(a) of title 10, 
United States Code, is amended by adding at the end the 
following new paragraphs:
            ``(16) The term `congressional defense committees' 
        means--
                    ``(A) the Committee on Armed Services and 
                the Committee on Appropriations of the Senate; 
                and
                    ``(B) the Committee on Armed Services and 
                the Committee on Appropriations of the House of 
                Representatives.
            ``(17) The term `base closure law' means the 
        following:
                    ``(A) Section 2687 of this title.
                    ``(B) The Defense Base Closure and 
                Realignment Act of 1990 (part A of title XXIX 
                of Public Law 101-510; 10 U.S.C. 2687 note).
                    ``(C) Title II of the Defense Authorization 
                Amendments and Base Closure and Realignment Act 
                (Public Law 100-526; 10 U.S.C. 2687 note).''.
    (b) References to Congressional Defense Committees.--Title 
10, United States Code, is further amended as follows:
            (1) Section 135(e) is amended--
                    (A) by striking ``(1)'';
                    (B) by striking ``each congressional 
                committee specified in paragraph (2)'' and 
                inserting ``each of the congressional defense 
                committees''; and
                    (C) by striking paragraph (2).
            (2) Section 153(c) is amended--
                    (A) in paragraph (1), by striking 
                ``committees of Congress named in paragraph 
                (2)'' and inserting ``congressional defense 
                committees'';
                    (B) by striking paragraph (2); and
                    (C) by designating the second sentence of 
                paragraph (1) as paragraph (2) and in that 
                paragraph (as so designated) by striking ``The 
                report'' and inserting ``Each report under 
                paragraph (1)''.
            (3) Section 181(d)(2) is amended--
                    (A) by striking ``subsection:'' and all 
                that follows through `` `oversight'' and 
                inserting ``subsection, the term `oversight''; 
                and
                    (B) by striking subparagraph (B).
            (4) Section 224 is amended by striking subsection 
        (f).
            (5) Section 228(e) is amended--
                    (A) by striking ``Definitions'' and all 
                that follows through ``(1) The term'' and 
                inserting ``O&M; Budget Activity Defined.--In 
                this section, the term''; and
                    (B) by striking paragraph (2).
            (6) Section 229 is amended by striking subsection 
        (f).
            (7) Section 1107(f)(4) is amended by striking 
        subparagraph (C).
            (8) Section 2216(j) is amended by striking 
        paragraph (3).
            (9) Section 2218(l) is amended--
                    (A) by striking paragraph (4); and
                    (B) by redesignating paragraph (5) as 
                paragraph (4).
            (10) Section 2306b(l) is amended--
                    (A) by striking paragraph (9); and
                    (B) by redesignating paragraph (10) as 
                paragraph (9).
            (11) Section 2308(e)(2) is amended--
                    (A) by striking subparagraph (A); and
                    (B) by redesignating subparagraphs (B) and 
                (C) as subparagraphs (A) and (B), respectively.
            (12) Section 2350j is amended--
                    (A) in subsection (e), by striking 
                ``congressional committees specified in 
                subsection (g)'' in paragraphs (1) and (3) and 
                inserting ``congressional defense committees''; 
                and
                    (B) by striking subsection (g).
            (13) Section 2366(e) is amended--
                    (A) by striking paragraph (7); and
                    (B) by redesignating paragraphs (8) and (9) 
                as paragraphs (7) and (8), respectively.
            (14) Section 2399(h) is amended--
                    (A) by striking ``Definitions.--'' and all 
                that follows through ``(1) The term'' and 
                inserting ``Operational Test and Evaluation 
                Defined.--In this section, the term'';
                    (B) by striking paragraph (2);
                    (C) by redesignating subparagraphs (A), 
                (B), and (C) as paragraphs (1), (2), and (3), 
                respectively; and
                    (D) by realigning those paragraphs (as so 
                redesignated) so as to be indented two ems from 
                the left margin.
            (15) Section 2667(h) is amended by striking 
        paragraph (1).
            (16) Section 2801(c)(4) is amended by striking 
        ``the Committee on'' the first place it appears and all 
        that follows through ``House of Representatives'' and 
        inserting ``the congressional defense committees''.
    (c) References to Base Closure Laws.--Title 10, United 
States Code, is further amended as follows:
            (1) Section 2306c(h) is amended by striking 
        ``Additional'' and all that follows through ``(2) The 
        term'' and inserting ``Military Installation Defined.--
        In this section, the term''.
            (2) Section 2490a(f) is amended--
                    (A) by striking ``Definitions.--'' and all 
                that follows through ``(1) The term'' and 
                inserting ``Nonappropriated Fund 
                Instrumentality Defined.--In this section, the 
                term''; and
                    (B) by striking paragraph (2).
            (3) Section 2667(h), as amended by subsection 
        (b)(15), is further amended by striking ``section:'' 
        and all that follows through ``(3) The term'' and 
        inserting ``section, the term''.
            (4) Section 2696(e) is amended--
                    (A) by striking paragraphs (1), (2), (3), 
                and (4) and inserting the following:
            ``(1) A base closure law.''; and
                    (B) by redesignating paragraphs (5) and (6) 
                as paragraphs (2) and (3), respectively.
            (5) Section 2705 is amended by striking subsection 
        (h).
            (6) Section 2871 is amended by striking paragraph 
        (2).

SEC. 1044. INCLUSION OF ANNUAL MILITARY CONSTRUCTION AUTHORIZATION 
                    REQUEST IN ANNUAL DEFENSE AUTHORIZATION REQUEST.

    (a) Inclusion of Military Construction Request.--Section 
113a(b) of title 10, United States Code, is amended--
            (1) by redesignating paragraph (3) as paragraph 
        (4); and
            (2) by inserting after paragraph (2) the following 
        new paragraph (3):
            ``(3) Authority to carry out military construction 
        projects, as required by section 2802 of this title.''.
    (b) Repeal of Separate Transmission of Request.--(1) 
Section 2859 of such title is repealed.
    (2) The table of sections at the beginning of subchapter 
III of chapter 169 of such title is amended by striking the 
item relating to section 2859.

SEC. 1045. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) Title 10, United States Code.--Title 10, United States 
Code, is amended as follows:
            (1) The tables of chapters at the beginning of 
        subtitle A, and at the beginning of part IV of subtitle 
        A, are amended by striking ``2701'' in the item 
        relating to chapter 160 and inserting ``2700''.
            (2) Section 101(a)(9)(D) is amended by striking 
        ``Transportation'' and inserting ``Homeland Security''.
            (3) Section 1115(c)(1)(B) is amended by striking 
        ``and other than members'' and inserting ``(other than 
        members''.
            (4) Section 2002(a)(2) is amended by striking 
        ``Foreign Service Institute'' and inserting ``George P. 
        Schultz National Foreign Affairs Training Center''.
            (5)(A) Section 2248 is repealed.
            (B) The table of sections at the beginning of 
        subchapter I of chapter 134 is amended by striking the 
        item relating to section 2248.
            (6) Section 2432(h)(1) is amended by inserting 
        ``program'' in the first sentence after ``for such''.
            (7) Section 7305(d) is amended by inserting 
        ``such'' before ``title III'' the second place it 
        appears.
    (b) Title 37, United States Code.--Title 37, United States 
Code, is amended as follows:
            (1) Section 323(a) is amended by striking ``1 
        year'' in paragraphs (1) and (2) and inserting ``one 
        year''.
            (2) Section 402 is amended--
                    (A) in subsection (b)--
                            (i) by striking paragraph (1);
                            (ii) by redesignating paragraphs 
                        (2), (3), and (4) as paragraphs (1), 
                        (2), and (3), respectively;
                            (iii) in paragraph (1) (as so 
                        redesignated), by striking ``On and 
                        after January 1, 2002, the'' and 
                        inserting ``The''; and
                            (iv) in paragraph (3) (as so 
                        redesignated), by striking ``paragraph 
                        (2)'' and inserting ``paragraph (1)''; 
                        and
                    (B) in subsection (d), by striking 
                ``subsection (b)(2)'' and inserting 
                ``subsection (b)(1)''.
    (c) Floyd D. Spence National Defense Authorization Act for 
Fiscal Year 2001.--The Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by 
Public Law 106-398) is amended as follows:
            (1) Section 814(g)(1) is amended by striking ``the 
        Clinger-Cohen Act of 1996 (divisions D and E of Public 
        Law 104-106)'' and inserting ``subtitle III of title 
        40, United States Code''.
            (2) Section 1308(c) (22 U.S.C. 5959) is amended--
                    (A) by redesignating paragraph (7) as 
                paragraph (8); and
                    (B) by redesignating the second paragraph 
                (6) as paragraph (7).
    (d) Strom Thurmond National Defense Authorization Act for 
Fiscal Year 1999.--Section 819(a) of the Strom Thurmond 
National Defense Authorization Act for Fiscal Year 1999 (Public 
Law 105-261; 112 Stat. 2089) is amended by striking ``section 
201(c) of the Federal Property and Administrative Services Act 
of 1949 (40 U.S.C. 481(c)),'' and inserting ``section 503 of 
title 40, United States Code,''.
    (e) National Defense Authorization Act for Fiscal Year 
1997.--Section 1084(e) of the National Defense Authorization 
Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2675) 
is amended by striking ``98-515'' and inserting ``98-525''. The 
amendment made by the preceding sentence shall take effect as 
if included in Public Law 104-201.
    (f) Federal Acquisition Streamlining Act of 1994.--
Subsection (d) of section 1004 of the Federal Acquisition 
Streamlining Act of 1994 (Public Law 103-355; 108 Stat. 3253) 
is amended by striking ``under--'' and all that follows through 
the end of paragraph (2) and inserting ``under chapter 11 of 
title 40, United States Code.''.
    (g) Armed Forces Retirement Home Act of 1991.--Section 
1520(b)(1)(C) of the Armed Forces Retirement Home Act of 1991 
(24 U.S.C. 420(b)(1)(C)) is amended by inserting ``Armed 
Forces'' before ``Retirement Home Trust Fund''.

                       Subtitle F--Other Matters

SEC. 1051. ASSESSMENT OF EFFECTS OF SPECIFIED STATUTORY LIMITATIONS ON 
                    THE GRANTING OF SECURITY CLEARANCES.

    Not later than 60 days after the date of the enactment of 
this Act, the Secretary of Defense shall submit to the 
Committee on Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives an assessment of 
the effects of the provisions of section 986 of title 10, 
United States Code (relating to limitations on security 
clearances), on the granting (or renewal) of security 
clearances for Department of Defense personnel and defense 
contractor personnel. The assessment shall review the effects 
of the disqualification factors specified in subsection (c) of 
that section and shall include such recommendations for 
legislation or administrative steps as the Secretary considers 
necessary.

SEC. 1052. ACQUISITION OF HISTORICAL ARTIFACTS THROUGH EXCHANGE OF 
                    OBSOLETE OR SURPLUS PROPERTY.

    (a) Acquisition Authorized.--The Secretary of a military 
department may use the authority provided by section 2572 of 
title 10, United States Code, to acquire an historical artifact 
that directly benefits the historical collection of the Armed 
Forces in exchange for any obsolete or surplus property held by 
that military department, without regard to whether the 
property is described in subsection (c) of such section.
    (b) Duration of Authority.--The authority provided by 
subsection (a) applies during fiscal years 2004 and 2005.

SEC. 1053. CONVEYANCE OF SURPLUS T-37 AIRCRAFT TO AIR FORCE AVIATION 
                    HERITAGE FOUNDATION, INCORPORATED.

    (a) Authority to Convey.--The Secretary of the Air Force 
may convey to the Air Force Aviation Heritage Foundation, 
Incorporated, of Georgia (in this section referred to as the 
``Foundation''), all right, title, and interest of the United 
States in and to one surplus T-37 ``Tweet'' aircraft for the 
sole purpose of permitting the Foundation to use the aircraft 
in a static display. The conveyance shall be made by means of a 
conditional deed of gift.
    (b) Condition of Aircraft.--(1) The Secretary may not 
convey the aircraft under subsection (a) until the aircraft has 
been demilitarized in such manner as the Secretary determines 
necessary to ensure that the aircraft is permanently unfit for 
flight and does not have any capability for use as a platform 
for launching or releasing munitions or any other combat 
capability that it was designed to have.
    (2) The Foundation shall be responsible for the costs of 
demilitarizing the aircraft, as required by paragraph (1). 
Demilitarization shall be carried out in a manner intended to 
preserve the historical and display value of the aircraft.
    (c) Conditions for Conveyance.--(1) The conveyance of a T-
37 aircraft under this section shall be subject to the 
following conditions:
            (A) That the Foundation not convey any right, 
        title, or interest in, or transfer possession of, the 
        aircraft to any other party without the prior approval 
        of the Secretary of the Air Force.
            (B) That the Foundation not alter the aircraft to 
        restore it to flyable condition.
            (C) That if the Secretary of the Air Force 
        determines at any time that the Foundation has conveyed 
        an ownership interest in, or transferred possession of, 
        the aircraft to any other party without the prior 
        approval of the Secretary, or has failed to comply with 
        the condition set forth in subparagraph (B), all right, 
        title, and interest in and to the aircraft, including 
        any repair or alteration of the aircraft, shall revert 
        to the United States, and the United States shall have 
        the right of immediate possession of the aircraft.
    (2) The Secretary shall include the conditions under 
paragraph (1) in the instrument of conveyance of the T-37 
aircraft.
    (d) Conveyance at No Cost to the United States.--Any 
conveyance of a T-37 aircraft under this section shall be made 
at no cost to the United States. Any costs associated with such 
conveyance, costs of determining compliance by the Foundation 
with the conditions in subsection (b), and costs of restoration 
and maintenance of the aircraft conveyed shall be borne by the 
Foundation.
    (e) Additional Terms and Conditions.--The Secretary of the 
Air Force may require such additional terms and conditions in 
connection with the conveyance under this section as the 
Secretary considers appropriate to protect the interests of the 
United States.
    (f) Duration of Conveyance Authority.--The authority to 
make the conveyance to the Foundation authorized by this 
section expires on September 30, 2005.

SEC. 1054. DEPARTMENT OF DEFENSE BIENNIAL STRATEGIC PLAN FOR MANAGEMENT 
                    OF ELECTROMAGNETIC SPECTRUM.

    (a) Requirement for Plan.--Chapter 23 of title 10, United 
States Code, is amended by inserting after section 487 the 
following new section:

``Sec. 488. Management of electomagnetic spectrum: biennial strategic 
                    plan

    ``(a) Requirement for Strategic Plan.--Every other year, 
and in time for submission to Congress under subsection (b), 
the Secretary of Defense shall prepare a strategic plan for the 
management of the electromagnetic spectrum to ensure the 
accessibility and efficient use of that spectrum needed to 
support the mission of the Department of Defense.
    ``(b) Submission of Plan to Congress.--The Secretary of 
Defense shall submit to Congress the strategic plan most 
recently prepared under subsection (a) at the same time that 
the President submits to Congress the budget for an even-
numbered fiscal year under section 1105(a) of title 31.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 487 the following new item:

``488. Management of electomagnetic spectrum: biennial strategic 
          plan.''.

SEC. 1055. REVISION OF DEPARTMENT OF DEFENSE DIRECTIVE RELATING TO 
                    MANAGEMENT AND USE OF RADIO FREQUENCY SPECTRUM.

    Not later than one year after the date of the enactment of 
this Act, the Secretary of Defense shall revise and reissue 
Department of Defense Directive 4650.1, relating to management 
and use of the radio frequency spectrum, last issued on June 
24, 1987, to update the procedures applicable to Department of 
Defense management and use of the radio frequency spectrum and 
to ensure the consideration of requirements for usage of such 
spectrum by a system as early as practicable in the acquisition 
program for such system.

SEC. 1056. SENSE OF CONGRESS ON DEPLOYMENT OF AIRBORNE CHEMICAL AGENT 
                    MONITORING SYSTEMS AT CHEMICAL STOCKPILE DISPOSAL 
                    SITES IN THE UNITED STATES.

    (a) Findings.--The Congress makes the following findings:
            (1) Over 23,700 tons of lethal chemical agents in 
        assembled chemical weapons and bulk storage containers 
        are stored and awaiting destruction at eight chemical 
        agent disposal facilities and stockpile storage sites 
        in the United States. Some of these weapons and storage 
        containers contain GB or VX nerve agents, while others 
        contain blister agents such as HD (mustard agent).
            (2) Approximately 960,000 persons live in the 
        vicinity of the eight chemical weapons disposal 
        facilities and stockpile storage sites.
            (3) Airborne-agent chemical monitoring systems are 
        currently deployed at each of the chemical 
        demilitarization facilities and stockpile storage sites 
        to provide continuous and near-real-time monitoring of 
        the presence of chemical agents.
            (4) The National Research Council has determined 
        that monitoring levels used at the demilitarization 
        facilities are very conservative and highly protective 
        of workers and public health and safety and that the 
        conservative monitoring levels are a contributing 
        factor in false positive alarms.
            (5) The National Research Council has expressed 
        repeated concern about relatively frequent false 
        positive alarms and the lack of real-time monitoring 
        for airborne agents and has noted the poor state of 
        agent monitoring technology for liquid waste streams 
        and solid materials suspected of possible agent 
        contamination.
            (6) The National Research Council has concluded 
        that, although the Program Manager for Chemical 
        Demilitarization has made some efforts to develop 
        better agent-monitoring technology, results to date 
        have been disappointing.
            (7) The National Research Council has concluded 
        that development and deployment of airborne-agent 
        monitors with shorter response time and lower false 
        alarm rates would enhance safety and reduce the 
        tendency to discount agent alarms, and has recommended 
        that the Program Manager for Chemical Demilitarization 
        and the relevant Department of Defense research and 
        development agencies should invigorate and coordinate 
        efforts to develop chemical agent monitors with 
        improved sensitivity, specificity, and response time.
    (b) Sense of Congress.--It is the sense of Congress that 
the Secretary of the Army--
            (1) should, in coordination with relevant 
        Department of Defense research and development 
        agencies, invigorate and coordinate efforts to develop 
        chemical agent monitors with improved sensitivity, 
        specificity, and response time; and
            (2) should deploy improved chemical agent monitors 
        in order to ensure the maximum protection of the 
        general public, personnel involved in the chemical 
        demilitarization program, and the environment.

SEC. 1057. EXPANSION OF PRE-SEPTEMBER 11, 2001, FIRE GRANT PROGRAM OF 
                    UNITED STATES FIRE ADMINISTRATION.

    The Federal Fire Prevention and Control Act of 1974 (15 
U.S.C. 2201 et seq.) is amended by redesignating the second 
section 33 and section 34 as sections 35 and 36, respectively, 
and by inserting after the first section 33 the following new 
section:

``SEC. 34. EXPANSION OF PRE-SEPTEMBER 11, 2001, FIRE GRANT PROGRAM.

    ``(a) Expanded Authority To Make Grants.--
            ``(1) Hiring grants.--(A) The Administrator shall 
        make grants directly to career, volunteer, and 
        combination fire departments, in consultation with the 
        chief executive of the State in which the applicant is 
        located, for the purpose of increasing the number of 
        firefighters to help communities meet industry minimum 
        standards and attain 24-hour staffing to provide 
        adequate protection from fire and fire-related hazards, 
        and to fulfill traditional missions of fire departments 
        that antedate the creation of the Department of 
        Homeland Security.
            ``(B)(i) Grants made under this paragraph shall be 
        for 4 years and be used for programs to hire new, 
        additional firefighters.
            ``(ii) Grantees are required to commit to retaining 
        for at least 1 year beyond the termination of their 
        grants those firefighters hired under this paragraph.
            ``(C) In awarding grants under this subsection, the 
        Administrator may give preferential consideration to 
        applications that involve a non-Federal contribution 
        exceeding the minimums under subparagraph (E).
            ``(D) The Administrator may provide technical 
        assistance to States, units of local government, Indian 
        tribal governments, and to other public entities, in 
        furtherance of the purposes of this section.
            ``(E) The portion of the costs of hiring 
        firefighters provided by a grant under this paragraph 
        may not exceed--
                    ``(i) 90 percent in the first year of the 
                grant;
                    ``(ii) 80 percent in the second year of the 
                grant;
                    ``(iii) 50 percent in the third year of the 
                grant; and
                    ``(iv) 30 percent in the fourth year of the 
                grant.
            ``(F) Notwithstanding any other provision of law, 
        any firefighter hired with funds provided under this 
        subsection shall not be discriminated against for, or 
        be prohibited from, engaging in volunteer activities in 
        another jurisdiction during off-duty hours.
            ``(G) All grants made pursuant to this subsection 
        shall be awarded on a competitive basis through a 
        neutral peer review process.
            ``(H) At the beginning of the fiscal year, the 
        Administrator shall set aside 10 percent of the funds 
        appropriated for carrying out this paragraph for 
        departments with majority volunteer or all volunteer 
        personnel. After awards have been made, if less than 10 
        percent of the funds appropriated for carrying out this 
        paragraph are not awarded to departments with majority 
        volunteer or all volunteer personnel, the Administrator 
        shall transfer from funds appropriated for carrying out 
        this paragraph to funds available for carrying out 
        paragraph (2) an amount equal to the difference between 
        the amount that is provided to such fire departments 
        and 10 percent.
            ``(2) Recruitment and retention grants.--In 
        addition to any amounts transferred under paragraph 
        (1)(H), the Administrator shall direct at least 10 
        percent of the total amount of funds appropriated 
        pursuant to this section annually to a competitive 
        grant program for the recruitment and retention of 
        volunteer firefighters who are involved with or trained 
        in the operations of firefighting and emergency 
        response. Eligible entities shall include volunteer or 
        combination fire departments, and organizations on a 
        local or statewide basis that represent the interests 
        of volunteer firefighters.
    ``(b) Applications.--(1) No grant may be made under this 
section unless an application has been submitted to, and 
approved by, the Administrator.
    ``(2) An application for a grant under this section shall 
be submitted in such form, and contain such information, as the 
Administrator may prescribe.
    ``(3) At a minimum, each application for a grant under this 
section shall--
            ``(A) explain the applicant's inability to address 
        the need without Federal assistance;
            ``(B) in the case of a grant under subsection 
        (a)(1), explain how the applicant plans to meet the 
        requirements of subsection (a)(1)(B)(ii) and (F);
            ``(C) specify long-term plans for retaining 
        firefighters following the conclusion of Federal 
        support provided under this section; and
            ``(D) provide assurances that the applicant will, 
        to the extent practicable, seek, recruit, and hire 
        members of racial and ethnic minority groups and women 
        in order to increase their ranks within firefighting.
    ``(c) Limitation on Use of Funds.--(1) Funds made available 
under this section to fire departments for salaries and 
benefits to hire new, additional firefighters shall not be used 
to supplant State or local funds, or, in the case of Indian 
tribal governments, funds supplied by the Bureau of Indian 
Affairs, but shall be used to increase the amount of funds that 
would, in the absence of Federal funds received under this 
section, be made available from State or local sources, or in 
the case of Indian tribal governments, from funds supplied by 
the Bureau of Indian Affairs.
    ``(2) No grant shall be awarded pursuant to this section to 
a municipality or other recipient whose annual budget at the 
time of the application for fire-related programs and emergency 
response has been reduced below 80 percent of the average 
funding level in the 3 years prior to the date of enactment of 
this section.
    ``(3) Funds appropriated by the Congress for the activities 
of any agency of an Indian tribal government or the Bureau of 
Indian Affairs performing firefighting functions on any Indian 
lands may be used to provide the non-Federal share of the cost 
of programs or projects funded under this section.
    ``(4)(A) Total funding provided under this section over 4 
years for hiring a firefighter may not exceed $100,000.
    ``(B) The $100,000 cap shall be adjusted annually for 
inflation beginning in fiscal year 2005.
    ``(d) Performance Evaluation.--The Administrator may 
require a grant recipient to submit any information the 
Administrator considers reasonably necessary to evaluate the 
program.
    ``(e) Sunset and Reports.--The authority under this section 
to make grants shall lapse at the conclusion of 10 years from 
the date of enactment of this section. Not later than 6 years 
after the date of the enactment of this section, the 
Administrator shall submit a report to Congress concerning the 
experience with, and effectiveness of, such grants in meeting 
the objectives of this section. The report may include any 
recommendations the Administrator may have for amendments to 
this section and related provisions of law.
    ``(f) Revocation or Suspension of Funding.--If the 
Administrator determines that a grant recipient under this 
section is not in substantial compliance with the terms and 
requirements of an approved grant application submitted under 
this section, the Administrator may revoke or suspend funding 
of that grant, in whole or in part.
    ``(g) Access to Documents.--(1) The Administrator shall 
have access for the purpose of audit and examination to any 
pertinent books, documents, papers, or records of a grant 
recipient under this section and to the pertinent books, 
documents, papers, or records of State and local governments, 
persons, businesses, and other entities that are involved in 
programs, projects, or activities for which assistance is 
provided under this section.
    ``(2) Paragraph (1) shall apply with respect to audits and 
examinations conducted by the Comptroller General of the United 
States or by an authorized representative of the Comptroller 
General.
    ``(h) Definitions.--In this section, the term--
            ``(1) `firefighter' has the meaning given the term 
        `employee in fire protection activities' under section 
        3(y) of the Fair Labor Standards Act (29 U.S.C. 
        203(y)); and
            ``(2) `Indian tribe&#