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

                                     


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

                               ----------                              

                           CONFERENCE REPORT

                              to accompany

                               H.R. 4200




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


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

                                     


                   RONALD W. REAGAN NATIONAL DEFENSE

                         AUTHORIZATION ACT FOR

                            FISCAL YEAR 2005

                               __________

                           CONFERENCE REPORT

                              to accompany

                               H.R. 4200




                October 8, 2004.--Ordered to be printed


                            C O N T E N T S

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


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

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



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

                                _______
                                

                October 8, 2004.--Ordered to be printed

                                _______
                                

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

                           CONFERENCE REPORT

                        [To accompany H.R. 4200]

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

SECTION 1. SHORT TITLE.

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

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

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

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

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

                        Subtitle B--Army Programs

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

                        Subtitle C--Navy Programs

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

                     Subtitle D--Air Force Programs

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

                        Subtitle E--Other Matters

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

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

               Subtitle A--Authorization of Appropriations

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

     Subtitle B--Program Requirements, Restrictions, and Limitations

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

                  Subtitle C--Missile Defense Programs

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

                        Subtitle D--Other Matters

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

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

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

                  Subtitle B--Environmental Provisions

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

                 Subtitle C--Workplace and Depot Issues

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

                   Subtitle D--Information Technology

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

              Subtitle E--Extensions of Program Authorities

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

                        Subtitle F--Other Matters

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

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

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

                       Subtitle B--Reserve Forces

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

              Subtitle C--Authorizations of Appropriations

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

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

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

              Subtitle B--Reserve Component Policy Matters

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

             Subtitle C--Reserve Component Personnel Matters

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

Subtitle D--Joint Officer Management and Professional Military Education

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

                 Subtitle E--Military Service Academies

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

            Subtitle F--Other Education and Training Matters

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

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

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

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

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

                       Subtitle I--Military Voting

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

                  Subtitle J--Military Justice Matters

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

             Subtitle K--Sexual Assault in the Armed Forces

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

            Subtitle L--Management and Administrative Matters

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

                        Subtitle M--Other Matters

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

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

            Subtitle C--Travel and Transportation Allowances

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

              Subtitle D--Retired Pay and Survivor Benefits

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

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

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

                        Subtitle F--Other Matters

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

                    TITLE VII--HEALTH CARE PROVISIONS

               Subtitle A--Enhanced Benefits for Reserves

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

                 Subtitle B--Other Benefits Improvements

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

            Subtitle C--Planning, Programming, and Management

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

     Subtitle D--Medical Readiness Tracking and Health Surveillance

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

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

              Subtitle A--Acquisition Policy and Management

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

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

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

      Subtitle C--United States Defense Industrial Base Provisions

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

         Subtitle D--Extensions of Temporary Program Authorities

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

                  Subtitle E--Other Acquisition Matters

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

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

        Subtitle A--Duties and Functions of Department of Defense

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

                      Subtitle B--Space Activities

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

                Subtitle C--Intelligence-Related Matters

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

                        Subtitle D--Other Matters

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

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

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

                 Subtitle B--Naval Vessels and Shipyards

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

                     Subtitle C--Counterdrug Matters

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

       Subtitle D--Matters Relating to Museums and Commemorations

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

                           Subtitle E--Reports

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

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

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

                 Subtitle G--Personnel Security Matters

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

               Subtitle H--Transportation-Related Matters

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

                        Subtitle I--Other Matters

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

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

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

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

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

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

                Subtitle B--Counterproliferation Matters

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

                        Subtitle C--Other Matters

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

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

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

                    TITLE XIV--SUNKEN MILITARY CRAFT

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

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

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

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

                             TITLE XXI--ARMY

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

                            TITLE XXII--NAVY

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

                         TITLE XXIII--AIR FORCE

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

                      TITLE XXIV--DEFENSE AGENCIES

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

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                 PROGRAM

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

             TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

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

         TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

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

                    TITLE XXVIII--GENERAL PROVISIONS

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

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

         Subtitle B--Real Property and Facilities Administration

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

                Subtitle C--Base Closure and Realignment

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

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

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

                        Part II--Navy Conveyances

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

                     Part III--Air Force Conveyances

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

                       Part IV--Other Conveyances

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

                        Subtitle E--Other Matters

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

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

       TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

          Subtitle A--National Security Programs Authorizations

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

    Subtitle B--Program Authorizations, Restrictions, and Limitations

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

                    Subtitle C--Proliferation Matters

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

                        Subtitle D--Other Matters

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

 Subtitle E--Energy Employees Occupational Illness Compensation Program

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

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

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

                  TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

                   TITLE XXXV--MARITIME ADMINISTRATION

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

                 TITLE XXXVI--ASSISTANCE TO FIREFIGHTERS

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

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES.

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

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

                        Subtitle B--Army Programs

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

                        Subtitle C--Navy Programs

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

                     Subtitle D--Air Force Programs

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

                        Subtitle E--Other Matters

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

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

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

SEC. 102. NAVY AND MARINE CORPS.

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

SEC. 103. AIR FORCE.

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

SEC. 104. DEFENSE-WIDE ACTIVITIES.

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

                       Subtitle B--Army Programs

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

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

SEC. 112. LIGHT UTILITY HELICOPTER PROGRAM.

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

                       Subtitle C--Navy Programs

SEC. 121. DDG-51 MODERNIZATION PROGRAM.

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

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

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

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

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

                     Subtitle D--Air Force Programs

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

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

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

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

SEC. 133. AERIAL REFUELING AIRCRAFT ACQUISITION PROGRAM.

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

                       Subtitle E--Other Matters

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

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

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

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

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

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

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

               Subtitle A--Authorization of Appropriations

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

     Subtitle B--Program Requirements, Restrictions, and Limitations

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

                  Subtitle C--Missile Defense Programs

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

                        Subtitle D--Other Matters

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

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

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

SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY.

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

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. FUTURE COMBAT SYSTEMS PROGRAM STRATEGY.

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

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

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

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

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

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

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

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

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

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

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

SEC. 215. GLOBAL POSITIONING SYSTEM III SATELLITE.

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

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

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

SEC. 217. JOINT UNMANNED COMBAT AIR SYSTEMS PROGRAM.

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

                  Subtitle C--Missile Defense Programs

SEC. 231. FIELDING OF BALLISTIC MISSILE DEFENSE CAPABILITIES.

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

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

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

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

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

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

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

                       Subtitle D--Other Matters

SEC. 241. ANNUAL REPORT ON SUBMARINE TECHNOLOGY INSERTION.

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

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

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

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

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

                  Subtitle B--Environmental Provisions

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

                 Subtitle C--Workplace and Depot Issues

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

                   Subtitle D--Information Technology

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

              Subtitle E--Extensions of Program Authorities

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

                        Subtitle F--Other Matters

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

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

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

SEC. 302. WORKING CAPITAL FUNDS.

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

SEC. 303. OTHER DEPARTMENT OF DEFENSE PROGRAMS.

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

                  Subtitle B--Environmental Provisions

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                 Subtitle C--Workplace and Depot Issues

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SEC. 328. COMPETITIVE SOURCING REPORTING REQUIREMENT.

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

                   Subtitle D--Information Technology

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

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

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

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

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

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

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

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

``Sec. 186. Defense Business System Management Committee

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

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

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

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

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

             Subtitle E--Extensions of Program Authorities

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

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

SEC. 342. EXTENSION OF ARSENAL SUPPORT PROGRAM INITIATIVE.

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

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

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

                       Subtitle F--Other Matters

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

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

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

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

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

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

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

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

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

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

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

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

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

                       Subtitle B--Reserve Forces

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

              Subtitle C--Authorizations of Appropriations

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

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

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

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

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

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

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

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

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

                       Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

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

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

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

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

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

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

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

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

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

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

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

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

              Subtitle C--Authorizations of Appropriations

SEC. 421. MILITARY PERSONNEL.

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

SEC. 422. ARMED FORCES RETIREMENT HOME.

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

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

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

              Subtitle B--Reserve Component Policy Matters

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

             Subtitle C--Reserve Component Personnel Matters

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

Subtitle D--Joint Officer Management and Professional Military Education

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

                 Subtitle E--Military Service Academies

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

            Subtitle F--Other Education and Training Matters

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

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

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

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

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

                       Subtitle I--Military Voting

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

                  Subtitle J--Military Justice Matters

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

             Subtitle K--Sexual Assault in the Armed Forces

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

            Subtitle L--Management and Administrative Matters

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

                        Subtitle M--Other Matters

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

                  Subtitle A--Officer Personnel Policy

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

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

``Sec. 647. Force shaping authority

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

``647. Force shaping authority.''.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

              Subtitle B--Reserve Component Policy Matters

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

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

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

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

                ``CHAPTER 9--HOMELAND DEFENSE ACTIVITIES

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

``Sec. 901. Definitions

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

``Sec. 902. Homeland defense activities: funds

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

``Sec. 903. Regulations

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

``Sec. 904. Homeland defense duty

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

``Sec. 905. Funding assistance

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

``Sec. 906. Requests for funding assistance

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

``Sec. 907. Relationship to State duty

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

``Sec. 908. Annual report

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

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

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

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

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

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

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

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

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

SEC. 516. AUTHORITY TO ACCEPT CERTAIN VOLUNTARY SERVICES.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

            Subtitle C--Reserve Component Personnel Matters

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

``Sec. 16161. Purpose

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

``Sec. 16162. Educational assistance program

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

``Sec. 16163. Eligibility for educational assistance

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

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

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

``Sec. 16165. Termination of assistance

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

``Sec. 16166. Administration of program

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

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

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

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

    Subtitle D--Joint Officer Management and Professional Military 
                               Education

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

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

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

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

             ``CHAPTER 107--PROFESSIONAL MILITARY EDUCATION

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

``Sec. 2151. Definitions

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

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

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

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

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

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

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

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

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

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

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

``Sec. 2157. Annual report to Congress

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                 Subtitle E--Military Service Academies

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

``Sec. 9355. Board of Visitors

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

            Subtitle F--Other Education and Training Matters

SEC. 551. COLLEGE FIRST DELAYED ENLISTMENT PROGRAM.

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

``Sec. 511. College First Program

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

``511. College First Program.''.

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

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

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

SEC. 553. TUITION ASSISTANCE FOR OFFICERS.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                      Subtitle I--Military Voting

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

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

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

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

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

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

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

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

                  Subtitle J--Military Justice Matters

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

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

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

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

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

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

SEC. 574. AUTHORITIES OF THE JUDGE ADVOCATES GENERAL.

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

             Subtitle K--Sexual Assault in the Armed Forces

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

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

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

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

           Subtitle L--Management and Administrative Matters

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                       Subtitle M--Other Matters

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

            Subtitle C--Travel and Transportation Allowances

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

              Subtitle D--Retired Pay and Survivor Benefits

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

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

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

                        Subtitle F--Other Matters

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

                     Subtitle A--Pay and Allowances

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

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

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

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

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

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

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

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

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

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

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

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

SEC. 617. ASSIGNMENT INCENTIVE PAY.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

            Subtitle C--Travel and Transportation Allowances

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

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

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

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

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

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

             Subtitle D--Retired Pay and Survivor Benefits

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

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

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

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

SEC. 643. DEATH BENEFITS ENHANCEMENT.

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

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

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

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

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

    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

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

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

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

        ``SUBCHAPTER I--DEFENSE COMMISSARY AND EXCHANGE SYSTEMS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                       Subtitle F--Other Matters

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                   TITLE VII--HEALTH CARE PROVISIONS

               Subtitle A--Enhanced Benefits for Reserves

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

                 Subtitle B--Other Benefits Improvements

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

            Subtitle C--Planning, Programming, and Management

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

     Subtitle D--Medical Readiness Tracking and Health Surveillance

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


               Subtitle A--Enhanced Benefits for Reserves

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                Subtitle B--Other Benefits Improvements

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

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

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

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

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

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

SEC. 714. IMPROVEMENTS TO PHARMACY BENEFITS PROGRAM.

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

SEC. 715. PROFESSIONAL ACCREDITATION OF MILITARY DENTISTS.

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

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

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

SEC. 717. SERVICES OF MARRIAGE AND FAMILY THERAPISTS.

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

SEC. 718. CHIROPRACTIC HEALTH CARE BENEFITS ADVISORY COMMITTEE.

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

           Subtitle C--Planning, Programming, and Management

SEC. 721. PILOT PROGRAM FOR HEALTH CARE DELIVERY.

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

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

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

SEC. 723. STUDY OF MENTAL HEALTH SERVICES.

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

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

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

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

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

``Sec. 1116. Payments into the Fund

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

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

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

SEC. 727. TRICARE PROGRAM REGIONAL DIRECTORS.

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

     Subtitle D--Medical Readiness Tracking and Health Surveillance

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

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

SEC. 732. MEDICAL READINESS OF RESERVES.

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

SEC. 733. BASELINE HEALTH DATA COLLECTION PROGRAM.

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

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

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

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

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

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

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

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

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

SEC. 736. REPORT ON TRAINING ON ENVIRONMENTAL HAZARDS.

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

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

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

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

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

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

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

``Sec. 1073b. Recurring reports

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

``1073b. Recurring reports.''.

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

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

              Subtitle A--Acquisition Policy and Management

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


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

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

      Subtitle C--United States Defense Industrial Base Provisions

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

         Subtitle D--Extensions of Temporary Program Authorities

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

                  Subtitle E--Other Acquisition Matters

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

             Subtitle A--Acquisition Policy and Management

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SEC. 812. DEFENSE ACQUISITION WORKFORCE IMPROVEMENTS.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

      Subtitle C--United States Defense Industrial Base Provisions

SEC. 831. DEFENSE TRADE RECIPROCITY.

    (a) Policy.--It is the policy of Congress that procurement 
regulations used in the conduct of trade in defense articles 
and defense services should be based on the principle of fair 
trade and reciprocity consistent with United States national 
security, including the need to ensure comprehensive 
manufacturing capability in the United States defense 
industrial base.
    (b) Requirement.--The Secretary of Defense shall make every 
effort to ensure that the policies and practices of the 
Department of Defense reflect the goal of establishing an 
equitable trading relationship between the United States and 
its foreign defense trade partners, including ensuring that 
United States firms and United States employment in the defense 
sector are not disadvantaged by unilateral procurement 
practices by foreign governments, such as the imposition of 
offset agreements in a manner that undermines the United States 
defense industrial base. In pursuing this goal, the Secretary 
shall--
            (1) develop a comprehensive defense acquisition 
        trade policy that provides the necessary guidance and 
        incentives for the elimination of any adverse effects 
        of offset agreements in defense trade; and
            (2) review and make necessary modifications to 
        existing acquisition policies and strategies, and 
        review and seek to make necessary modifications to 
        existing memoranda of understanding, cooperative 
        project agreements, or related agreements with foreign 
        defense trade partners, to reflect this goal.
    (c) Regulations.--The Secretary shall prescribe regulations 
to implement this section in the Department of Defense 
supplement to the Federal Acquisition Regulation.
    (d) Definitions.--In this section:
            (1) The term ``foreign defense trade partner'' 
        means a foreign country with respect to which there 
        is--
                    (A) a memorandum of understanding or 
                related agreement described in section 2531(a) 
                of title 10, United States Code; or
                    (B) a cooperative project agreement 
                described in section 27 of the Arms Export 
                Control Act (22 U.S.C. 2767).
            (2) The term ``offset agreement'' has the meaning 
        provided that term by section 36(e) of the Arms Export 
        Control Act (22 U.S.C. 2776(e)).
            (3) The terms ``defense article'' and ``defense 
        service'' have the meanings provided those terms by 
        section 47(7) of the Arms Export Control Act (22 U.S.C. 
        2794(7)).

SEC. 832. ASSESSMENT AND REPORT ON THE ACQUISITION OF POLYACRYLONITRILE 
                    (PAN) CARBON FIBER FROM FOREIGN SOURCES.

    (a) Requirement.--The Secretary of Defense shall delay the 
phase-out of the restriction on acquisition of 
polyacrylonitrile (PAN) carbon fiber from foreign sources 
(described in subpart 225.7103 of the Department of Defense 
supplement to the Federal Acquisition Regulation) until an 
assessment of PAN carbon fiber industry is completed and 30 
days have passed after submission of the report required under 
subsection (c).
    (b) Assessment.--The Secretary of Defense shall perform an 
assessment of the domestic and international industrial 
structure that produces PAN carbon fibers, current and 
anticipated market trends for the product, and how the trends 
compare to the assessment as reported by the Secretary of 
Defense in January 2001.
    (c) Report required.--Not later than one year after the 
date of the enactment of this Act, the Secretary of Defense 
shall submit to the Committees on Armed Services of the Senate 
and the House of Representatives a report on the assessment 
performed under subsection (b) and on any decision made to 
maintain or discontinue the phase-out of procurement 
restrictions on foreign acquisition of PAN carbon fibers in the 
Department of Defense supplement to the Federal Acquisition 
Regulation.

        Subtitle D--Extensions of Temporary Program Authorities

SEC. 841. EXTENSION OF MENTOR-PROTEGE PROGRAM.

    (a) Extension of Program.--Subsection (j) of section 831 of 
the National Defense Authorization Act for Fiscal Year 1991 
(Public Law 101-510; 10 U.S.C. 2302 note) is amended--
            (1) in paragraph (1), by striking ``September 30, 
        2005'' and inserting ``September 30, 2010''; and
            (2) in paragraph (2), by striking ``September 30, 
        2008'' and inserting ``September 30, 2013''.
    (b) Extension of Requirement for Annual Report.--Subsection 
(l)(3) of such section is amended by striking ``2007'' and 
inserting ``2010''.
    (c) Additional Feasibility Review of Transition to Other 
Financing Methods.--(1) The Secretary of Defense shall conduct 
an additional review of the Mentor-Protege Program under 
section 811(d)(2) of the National Defense Authorization Act for 
Fiscal Year 2000 (Public Law 106-65; 113 Stat. 708).
    (2) Not later than September 30, 2005, the Secretary shall 
submit to the Committees on Armed Services of the Senate and 
the House of Representatives--
            (A) a report on the results of the review conducted 
        under paragraph (1); and
            (B) any recommendations of the Secretary for 
        legislative action.
    (d) Additional Study of Program Implementation.--(1) The 
Comptroller General shall conduct an additional study of the 
Mentor-Protege Program under section 811(d)(3) of the National 
Defense Authorization Act for Fiscal Year 2000 (Public Law 106-
65; 113 Stat. 709).
    (2) Not later than September 30, 2006, the Comptroller 
General shall submit a report on the results of the study 
conducted under paragraph (1) to the Committees on Armed 
Services of the Senate and the House of Representatives.

SEC. 842. AMENDMENT TO MENTOR-PROTEGE PROGRAM.

    Section 831(m)(2) of the National Defense Authorization Act 
for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2302 note) 
is amended--
            (1) in subparagraph (D), by striking ``or'' at the 
        end;
            (2) in subparagraph (E), by striking the period at 
        the end and inserting a semicolon; and
            (3) by adding at the end the following:
                    ``(F) a small business concern owned and 
                controlled by service-disabled veterans (as 
                defined in section 8(d)(3) of the Small 
                Business Act); and
                    ``(G) a qualified HUBZone small business 
                concern (as defined in section 3(p) of the 
                Small Business Act).''.

SEC. 843. EXTENSION OF TEST PROGRAM FOR NEGOTIATION OF COMPREHENSIVE 
                    SMALL BUSINESS SUBCONTRACTING PLANS.

    Section 834(e) of the National Defense Authorization Act 
for Fiscal Years 1990 and 1991 (Public Law 101-189; 15 U.S.C. 
637 note) is amended by striking ``September 30, 2005'' and 
inserting ``September 30, 2010''.

SEC. 844. EXTENSION OF PILOT PROGRAM ON SALES OF MANUFACTURED ARTICLES 
                    AND SERVICES OF CERTAIN ARMY INDUSTRIAL FACILITIES.

    Section 141(a) of the National Defense Authorization Act 
for Fiscal Year 1998 (Public Law 105-85; 10 U.S.C. 4543 note) 
is amended by striking ``through 2004'' in the first sentence 
and inserting ``through 2009''.

                 Subtitle E--Other Acquisition Matters

SEC. 851. REVIEW AND DEMONSTRATION PROJECT RELATING TO CONTRACTOR 
                    EMPLOYEES.

    (a) General Review.--(1) The Secretary of Defense shall 
conduct a review of policies, procedures, practices, and 
penalties of the Department of Defense relating to employees of 
defense contractors for purposes of ensuring that the 
Department of Defense is in compliance with Executive Order No. 
12989 (relating to a prohibition on entering into contracts 
with contractors that are not in compliance with the 
Immigration and Nationality Act).
    (2) In conducting the review, the Secretary shall--
            (A) identify potential weaknesses and areas for 
        improvement in existing policies, procedures, 
        practices, and penalties;
            (B) develop and implement reforms to strengthen, 
        upgrade, and improve policies, procedures, practices, 
        and penalties of the Department of Defense and its 
        contractors; and
            (C) review and analyze reforms developed pursuant 
        to this paragraph to identify for purposes of national 
        implementation those which are most efficient and 
        effective.
    (3) The review under this subsection shall be completed not 
later than 180 days after the date of the enactment of this 
Act.
    (b) Demonstration Project.--The Secretary of Defense shall 
conduct a demonstration project in accordance with this 
section, in one or more regions selected by the Secretary, for 
purposes of promoting greater contracting opportunities for 
contractors offering effective, reliable staffing plans to 
perform defense contracts that ensure all contract personnel 
employed for such projects, including management employees, 
professional employees, craft labor personnel, and 
administrative personnel, are lawful residents or persons 
properly authorized to be employed in the United States and 
properly qualified to perform services required under the 
contract. The demonstration project shall focus on contracts 
for construction, renovation, maintenance, and repair services 
for military installations.
    (c) Demonstration Project Procurement Procedures.--As part 
of the demonstration project under subsection (b), the 
Secretary of Defense may conduct a competition in which there 
is a provision in contract solicitations and request for 
proposal documents to require significant weight or credit be 
allocated to--
            (1) reliable, effective workforce programs offered 
        by prospective contractors that provide background 
        checks and other measures to ensure the contractor is 
        in compliance with the Immigration and Nationality Act; 
        and
            (2) reliable, effective project staffing plans 
        offered by prospective contractors that specify for all 
        contract employees (including management employees, 
        professionals, and craft labor personnel) the skills, 
        training, and qualifications of such persons and the 
        labor supply sources and hiring plans or procedures 
        used for employing such persons.
    (d) Implementation of Demonstration Project.--The Secretary 
of Defense shall begin operation of the demonstration project 
required under this section after completion of the review 
under subsection (a), but in no event later than 270 days after 
the date of the enactment of this Act.
    (e) Report on Demonstration Project.--Not later than six 
months after award of a contract under the demonstration 
project, the Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and House of 
Representatives a report setting forth a review of the 
demonstration project and recommendations on the actions, if 
any, that can be implemented to ensure compliance by the 
Department of Defense with Executive Order No. 12989.
    (f) Definition.--In this section, the term ``military 
installation'' means a base, camp, post, station, yard, center, 
homeport facility for any ship, or other activity under the 
jurisdiction of the Department of Defense, including any leased 
facility, which is located within any of the several States, 
the District of Columbia, the Commonwealth of Puerto Rico, 
American Samoa, the Virgin Islands, or Guam. Such term does not 
include any facility used primarily for civil works, rivers and 
harbors projects, or flood control projects.

SEC. 852. INAPPLICABILITY OF CERTAIN FISCAL LAWS TO SETTLEMENTS UNDER 
                    SPECIAL TEMPORARY CONTRACT CLOSEOUT AUTHORITY.

    Section 804(a) of the National Defense Authorization Act 
for Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1541) is 
amended--
            (1) by inserting ``(1)'' after ``(a) Authority.--
        ''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) Under regulations which the Secretary of Defense may 
prescribe, a settlement of a financial account for a contract 
for the procurement of property or services under paragraph (1) 
may be made without regard to--
            ``(A) section 1301 of title 31, United States Code; 
        and
            ``(B) any other provision of law that would 
        preclude the Secretary from charging payments under the 
        contract--
                    ``(i) to an unobligated balance in an 
                appropriation available for funding that 
                contract; or
                    ``(ii) if and to the extent that the 
                unobligated balance (if any) in such 
                appropriation is insufficient for funding such 
                payments, to any current appropriation that is 
                available to the Department of Defense for 
                funding contracts for the procurement of the 
                same or similar property or services.''.

SEC. 853. CONTRACTING WITH EMPLOYERS OF PERSONS WITH DISABILITIES.

    (a) Inapplicability of Randolph-Sheppard Act to Mess Hall 
Services Under Existing Javits-Wagner-O'Day Act Contracts.--(1) 
The Randolph-Sheppard Act (20 U.S.C. 107 et seq.) does not 
apply to any contract described in paragraph (2) for so long as 
the contract is in effect, including for any period for which 
the contract is extended pursuant to an option provided in the 
contract.
    (2) Paragraph (1) applies to any contract for the operation 
of all or any part of a military mess hall, military troop 
dining facility, or any similar dining facility operated for 
the purpose of providing meals to members of the Armed Forces 
that--
            (A) was entered into before September 30, 2005, 
        with a qualified nonprofit agency for the blind or a 
        qualified nonprofit agency for other severely 
        handicapped in compliance with section 3 of the Javits-
        Wagner-O'Day Act (41 U.S.C. 48); and
            (B) either--
                    (i) is in effect on such date; or
                    (ii) was in effect on November 24, 2003.
    (b) Inapplicability of Javits-Wagner-O'Day Act to Mess Hall 
Services Under Existing Randolph-Sheppard Act Contracts.--(1) 
The Javits-Wagner-O'Day Act (41 U.S.C. 46 et seq.) does not 
apply to any contract described in paragraph (2) for so long as 
the contract is in effect, including for any period for which 
the contract is extended pursuant to an option provided in the 
contract.
    (2) Paragraph (1) applies to any contract for the operation 
of all or any part of a military mess hall, military troop 
dining facility, or any similar dining facility operated for 
the purpose of providing meals to members of the Armed Forces 
that--
            (A) was entered into before September 30, 2005, 
        with a State licensing agency under the Randolph-
        Sheppard Act (20 U.S.C. 107 et seq.); and
            (B) either--
                    (i) is in effect on such date; or
                    (ii) was in effect on November 24, 2003.
    (3) In this subsection, the term ``State licensing agency'' 
means an agency designated under section 2(a)(5) of the 
Randolph-Sheppard Act (20 U.S.C. 107a(a)(5)).
    (c) Repeal of Superseded Law.--Subsections (a) and (b) of 
section 852 of the National Defense Authorization Act for 
Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1556) are 
repealed.

SEC. 854. DEFENSE PROCUREMENTS MADE THROUGH CONTRACTS OF OTHER 
                    AGENCIES.

    (a) Limitation.--The head of an agency may not procure 
goods or services (under section 1535 of title 31, United 
States Code, pursuant to a designation under section 11302(e) 
of title 40, United States Code, or otherwise) through a 
contract entered into by an agency outside the Department of 
Defense for an amount greater than the simplified acquisition 
threshold referred to in section 2304(g) of title 10, United 
States Code, unless the procurement is done in accordance with 
procedures prescribed by that head of an agency for reviewing 
and approving the use of such contracts.
    (b) Effective Date.--The limitation in subsection (a) shall 
apply only with respect to orders for goods or services that 
are issued by the head of an agency to an agency outside the 
Department of Defense on or after the date that is 180 days 
after the date of the enactment of this Act.
    (c) Inapplicability to Contracts for Certain Services.--
This section does not apply to procurements of the following 
services:
            (1) Printing, binding, or blank-book work to which 
        section 502 of title 44, United States Code, applies.
            (2) Services available under programs pursuant to 
        section 103 of the Library of Congress Fiscal 
        Operations Improvement Act of 2000 (Public Law 106-481; 
        114 Stat. 2187; 2 U.S.C. 182c).
    (d) Annual Report.--(1) For each of fiscal years 2005 and 
2006, each head of an agency shall submit to the Secretary of 
Defense a report on the service charges imposed on purchases 
made for an amount greater than the simplified acquisition 
threshold during such fiscal year through a contract entered 
into by an agency outside the Department of Defense.
    (2) In the case of procurements made on orders issued by 
the head of a Defense Agency, Department of Defense Field 
Activity, or any other organization within the Department of 
Defense (other than a military department) under the authority 
of the Secretary of Defense as the head of an agency, the 
report under paragraph (1) shall be submitted by the head of 
that Defense Agency, Department of Defense Field Activity, or 
other organization, respectively.
    (3) The report for a fiscal year under this subsection 
shall be submitted not later than December 31 of the calendar 
year in which such fiscal year ends.
    (e) Definitions.--In this section:
            (1) The term ``head of an agency'' means the 
        Secretary of Defense, the Secretary of the Army, the 
        Secretary of the Navy, the Secretary of the Air Force.
            (2) The term ``Defense Agency'' has the meaning 
        given such term in section 101(a)(11) of title 10, 
        United States Code.
            (3) The term ``Department of Defense Field 
        Activity'' has the meaning given such term in section 
        101(a)(12) of such title.

SEC. 855. REQUIREMENTS RELATING TO SOURCE SELECTION FOR INTEGRATED 
                    SUPPORT OF AERIAL REFUELING AIRCRAFT FLEET FOR THE 
                    AIR FORCE.

    For the selection of a provider of integrated support for 
the aerial refueling aircraft fleet in any acquisition of 
aerial refueling aircraft for the Air Force, the Secretary of 
the Air Force shall--
            (1) before selecting the provider, perform all 
        analyses required by law of--
                    (A) the costs and benefits of--
                            (i) the alternative of using 
                        Federal Government personnel to provide 
                        such support; and
                            (ii) the alternative of using 
                        contractor personnel to provide such 
                        support;
                    (B) the core logistics requirements;
                    (C) use of performance-based logistics; and
                    (D) the length of contract period; and
            (2) select the provider in accordance with the 
        procedures under the provisions of law referred to as 
        the Competition in Contracting Act.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

        Subtitle A--Duties and Functions of Department of Defense

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

                      Subtitle B--Space Activities

Sec. 911. Space posture review.
Sec. 912. Panel on the future of national security space launch.
Sec. 913. Operationally responsive national security satellites.
Sec. 914. Nondisclosure of certain products of commercial satellite 
          operations.

                Subtitle C--Intelligence-Related Matters

Sec. 921. Two-year extension of authority of the Secretary of Defense to 
          engage in commercial activities as security for intelligence 
          collection activities abroad.
Sec. 922. Pilot program on cryptologic service training.

                        Subtitle D--Other Matters

Sec. 931. Strategic plan for destruction of lethal chemical agents and 
          munitions stockpile.
Sec. 932. Secretary of Defense criteria for and guidance on 
          identification and internal transmission of critical 
          information.

       Subtitle A--Duties and Functions of Department of Defense

SEC. 901. STUDY OF ROLES AND AUTHORITIES OF THE DIRECTOR OF DEFENSE 
                    RESEARCH AND ENGINEERING.

    (a) Study Required.--The Secretary of Defense shall carry 
out a study of the roles and authorities of the Director of 
Defense Research and Engineering.
    (b) Content of Study.--The study under subsection (a) shall 
include the following:
            (1) An examination of the past and current roles 
        and authorities of the Director of Defense Research and 
        Engineering.
            (2) An analysis to determine appropriate future 
        roles and authorities for the Director, including an 
        analysis of the following matters:
                    (A) The relationship of the Director to 
                other senior science and technology and 
                acquisition officials of the military 
                departments and the Defense Agencies.
                    (B) The relationship of the Director to the 
                performance of the following functions:
                            (i) The planning, programming, and 
                        budgeting of the science and technology 
                        programs of the Department of Defense, 
                        including those of the military 
                        departments and the Defense Agencies.
                            (ii) The management of Department 
                        of Defense laboratories and technical 
                        centers, including the management of 
                        the Federal Government scientific and 
                        technical workforce for such 
                        laboratories and centers.
                            (iii) The promotion of the rapid 
                        transition of technologies to 
                        acquisition programs within the 
                        Department of Defense.
                            (iv) The promotion of the transfer 
                        of technologies into and from the 
                        commercial sector.
                            (v) The coordination of Department 
                        of Defense science and technology 
                        activities with organizations outside 
                        the Department of Defense, including 
                        other Federal Government agencies, 
                        international research organizations, 
                        industry, and academia.
                            (vi) The technical review of 
                        Department of Defense acquisition 
                        programs and policies.
                            (vii) The training and educational 
                        activities for the national scientific 
                        and technical workforce.
                            (viii) The development of science 
                        and technology policies and programs 
                        relating to the maintenance of the 
                        national technology and industrial 
                        base.
                            (ix) The development of new 
                        technologies in support of the 
                        transformation of the Armed Forces.
            (3) An examination of the duties of the Director as 
        the Chief Technology Officer of the Department of 
        Defense as prescribed by Department of Defense 
        Directive 5134.3, dated November 3, 2003, especially in 
        comparison to the duties of similar positions in the 
        Federal Government and industry.
            (4) An examination of any other matter that the 
        Secretary considers appropriate for the study.
    (c) Report.--(1) Not later than February 1, 2006, the 
Secretary shall submit to the Committee on Armed Services of 
the Senate and the Committee on Armed Services of the House of 
Representatives a report on the results of the study under this 
section.
    (2) The report shall include recommendations regarding the 
appropriate roles and authorities that should be assigned and 
resources that should be provided to the Director of Defense 
Research and Engineering.
    (d) Role of Defense Science Board in Study and Report.--The 
Secretary shall act through the Defense Science Board in 
carrying out the study under subsection (a) and in preparing 
the report under subsection (c).

SEC. 902. CHANGE OF MEMBERSHIP OF SPECIFIED COUNCIL.

    (a) Membership of Council Under Section 179.--Subsection 
(a) of section 179 of title 10, United States Code, is amended 
by adding at the end the following new paragraph:
            ``(4) The Under Secretary of Defense for Policy.''.
    (b) Conforming and Clarifying Amendments.--Such subsection 
is further amended in the matter preceding paragraph (1)--
            (1) by striking ``Joint''; and
            (2) by striking ``composed of three members as 
        follows:'' and inserting ``operated as a joint activity 
        of the Department of Defense and the Department of 
        Energy. The membership of the Council is comprised of 
        the following officers of those departments:''.
    (c) Other Technical and Clarifying Amendments.--Such 
section is further amended as follows:
            (1) Subsection (c)(3)(B) is amended by striking 
        ``appointed'' and inserting ``designated''.
            (2) Subsection (e) is amended by striking ``In 
        addition'' and all that follows through ``also'' and 
        inserting ``The Council shall''.
            (3) Subsection (f) is amended by striking 
        ``Committee on'' the first place it appears and all 
        that follows through ``Representatives'' and inserting 
        ``congressional defense committees''.
    (d) Stylistic Amendments.--Such section is further amended 
as follows:
            (1) Subsection (a) is amended by inserting 
        ``Establishment; Membership.--'' after ``(a)''.
            (2) Subsection (b) is amended by inserting 
        ``Chairman; Meetings.--'' after ``(b)''.
            (3) Subsection (c) is amended by inserting ``Staff 
        and Administrative Services; Staff Director.--'' after 
        ``(c)''.
            (4) Subsection (d) is amended by inserting 
        ``Responsibilities.--'' after ``(d)''.
            (5) Subsection (e) is amended by inserting ``Report 
        on Difficulties Relating to Safety or Reliability.--'' 
        after ``(e)''.
            (6) Subsection (f) is amended by inserting ``Annual 
        Report.--'' after ``(f)''.
    (e) Further Conforming Amendments.--Section 3212(e) of the 
National Nuclear Security Administration Act (50 U.S.C. 
2402(e)) is amended--
            (1) by striking ``Joint'' in the subsection 
        heading; and
            (2) by striking ``Joint''.

                      Subtitle B--Space Activities

SEC. 911. SPACE POSTURE REVIEW.

    (a) Requirement for Comprehensive Review.--In order to 
clarify the national security space policy and strategy of the 
United States for the near term, the Secretary of Defense shall 
conduct a comprehensive review of the space posture of the 
United States over the posture review period.
    (b) Elements of Review.--The review conducted under 
subsection (a) shall include, for the posture review period, 
the following:
            (1) The definition, policy, requirements, and 
        objectives for each of the following:
                    (A) Space situational awareness.
                    (B) Space control.
                    (C) Space superiority, including defensive 
                and offensive counterspace.
                    (D) Force enhancement and force 
                application.
                    (E) Space-based intelligence, surveillance, 
                and reconnaissance from space.
                    (F) Any other matter the Secretary 
                considers relevant to understanding the United 
                States space posture.
            (2) Current and planned space acquisition programs 
        that are in acquisition categories 1 and 2, including 
        how each such program will address the policy, 
        requirements, and objectives described under each of 
        subparagraphs (A) through (F) of paragraph (1).
            (3) Future space systems and technology development 
        (other than those in development as of the date of the 
        enactment of this Act) necessary to address the policy, 
        requirements, and objectives described under each of 
        subparagraphs (A) through (F) of paragraph (1).
            (4) The relationship among--
                    (A) United States military space policy;
                    (B) national security space policy;
                    (C) national security space objectives; and
                    (D) arms control policy.
            (5) Effect of United States military and national 
        security space policy on the proliferation of weapons 
        capable of targeting objects in space or objects on 
        Earth from space.
    (c) Reports.--(1) Not later than March 15, 2005, the 
Secretary of Defense shall submit to the congressional 
committees specified in paragraph (4) an interim report on the 
review conducted under subsection (a).
    (2) Not later than December 31, 2005, the Secretary shall 
submit to those committees a final report on that review.
    (3) Each report under this subsection shall be submitted in 
unclassified form, but may include a classified annex.
    (4) The reports under this subsection shall be submitted to 
the Committee on Armed Services and the Select Committee on 
Intelligence of the Senate and the Committee on Armed Services 
and the Permanent Select Committee on Intelligence of the House 
of Representatives.
    (d) Joint Undertaking With the Director of Central 
Intelligence (or Successor).--The Secretary of Defense shall 
conduct the review under this section, and shall submit the 
reports under subsection (c), jointly with the Director of 
Central Intelligence (or any successor official who has 
responsibility for management of the intelligence community).
    (e) Posture Review Period.--In this section, the term 
``posture review period'' means the 10-year period beginning on 
the first day of the first month beginning more than one year 
after the date of the enactment of this Act.

SEC. 912. PANEL ON THE FUTURE OF NATIONAL SECURITY SPACE LAUNCH.

    (a) In General.--(1) The Secretary of Defense shall enter 
into a contract with a federally funded research and 
development center to establish a panel on the future national 
security space launch requirements of the United States, 
including means of meeting those requirements.
    (2) The Secretary shall enter into the contract not later 
than 60 days after the date of the enactment of this Act.
    (b) Membership and Administration of Panel.--(1) The panel 
shall consist of individuals selected by the federally funded 
research and development center from among private citizens of 
the United States with knowledge and expertise in one or more 
of the following areas:
            (A) Space launch operations.
            (B) Space launch technologies.
            (C) Satellite and satellite payloads.
            (D) State and national launch complexes.
            (E) Space launch economics.
    (2) The federally funded research and development center 
shall establish appropriate procedures for the administration 
of the panel, including designation of the chairman of the 
panel from among its members.
    (3) All panel members shall hold security clearances 
appropriate for the work of the panel.
    (4) The panel shall convene its first meeting not later 
than 30 days after the date on which all members of the panel 
have been selected.
    (c) Duties.--(1) The panel shall conduct a review and 
assessment of the future national security space launch 
requirements of the United States, including the means of 
meeting those requirements.
    (2) The review and assessment shall take into account the 
following matters:
            (A) Launch economics.
            (B) Operational concepts and architectures.
            (C) Launch technologies, including--
                    (i) reusable launch vehicles;
                    (ii) expendable launch vehicles;
                    (iii) low cost options; and
                    (iv) revolutionary approaches.
            (D) Payloads, including the implications of 
        payloads for launch requirements.
            (E) Launch infrastructure.
            (F) Launch industrial base.
            (G) Relationships among military, civilian, and 
        commercial launch requirements.
    (3) The review and assessment shall address national 
security space launch requirements over each of the 5-year, 10-
year, and 15-year periods beginning with 2005.
    (d) Information From Federal and State Agencies.--(1) The 
panel may secure directly from the Department of Defense, from 
any other department or agency of the Federal Government, and 
any State government any information that the panel considers 
necessary to carry out its duties.
    (2) The Secretary of Defense shall designate at least one 
senior civilian employee of the Department of Defense and at 
least one general or flag officer of an Armed Force to serve as 
liaison between the Department, the Armed Forces, and the 
panel.
    (e) Report.--Not later than one year after the date of the 
first meeting of the panel under subsection (b)(4), the panel 
shall submit to the Secretary of Defense, the congressional 
defense committees, the Select Committee on Intelligence of the 
Senate, and the Permanent Select Committee on Intelligence of 
the House of Representatives a report on the results of the 
review and assessment under subsection (c). The report shall 
include--
            (1) the findings and conclusions of the panel on 
        the future national security space launch requirements 
        of the United States, including means of meeting such 
        requirements;
            (2) the assessment of panel, and any 
        recommendations of the panel, on--
                    (A) launch operational concepts and 
                architectures;
                    (B) launch technologies;
                    (C) launch enabling technologies; and
                    (D) priorities for funding; and
            (3) the assessment of the panel as to the best 
        means of meeting the future national security space 
        launch requirements of the United States.
    (f) Termination.--The panel shall terminate 16 months after 
the date of the first meeting of the panel under subsection 
(b)(4).
    (g) Funding.--Amounts authorized to be appropriated to the 
Department of Defense shall be available to the Secretary of 
Defense for purposes of the contract required by subsection 
(a).

SEC. 913. OPERATIONALLY RESPONSIVE NATIONAL SECURITY SATELLITES.

    (a) Planning, Programming, and Management.--(1) Chapter 135 
of title 10, United States Code, is amended by inserting after 
section 2273 the following new section:

``Sec. 2273a. Operationally responsive national security payloads and 
                    buses: separate program element required

    ``(a) Requirement for Program Element.--The Secretary of 
Defense shall ensure that, within budget program elements for 
space programs of the Department of Defense, there is a 
separate, dedicated program element for operationally 
responsive national security payloads and buses of the 
Department of Defense for space satellites and that programs 
and activities for such payloads and buses are planned, 
programmed, and budgeted for through that program element.
    ``(b) Management Authority.--The Secretary of Defense shall 
assign management authority for the program element required 
under subsection (a) to the Director of the Office of Force 
Transformation of the Department of Defense.
    ``(c) Definition of Operationally Responsive.--In this 
section, the term `operationally responsive', with respect to a 
national security payload and bus for a space satellite, means 
an experimental or operational payload and bus with a weight 
not in excess of 5,000 pounds that--
            ``(1) can be developed and acquired within 18 
        months after authority to proceed with development is 
        granted; and
            ``(2) is responsive to requirements for 
        capabilities at the operational and tactical levels of 
        warfare.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 2273 
the following new item:

``2273a. Operationally responsive national security payloads and buses: 
          separate program element required.''.
    (b) Time for Implementation.--Subsection (a) of section 
2273a of title 10, United States Code, as added by subsection 
(a), shall apply with respect to fiscal years after fiscal year 
2005.

SEC. 914. NONDISCLOSURE OF CERTAIN PRODUCTS OF COMMERCIAL SATELLITE 
                    OPERATIONS.

    (a) Mandatory Disclosure Requirements Inapplicable.--The 
requirements to make information available under section 552 of 
title 5, United States Code, shall not apply to land remote 
sensing information.
    (b) Land Remote Sensing Information Defined.--In this 
section, the term ``land remote sensing information''--
            (1) means any data that--
                    (A) are collected by land remote sensing; 
                and
                    (B) are prohibited from sale to customers 
                other than the United States Government and 
                United States Government-approved customers for 
                reasons of national security pursuant to the 
                terms of an operating license issued pursuant 
                to the Land Remote Sensing Policy Act of 1992 
                (15 U.S.C. 5601 et seq.); and
            (2) includes any imagery and other product that is 
        derived from such data and which is prohibited from 
        sale to customers other than the United States 
        Government and United States Government-approved 
        customers for reasons of national security pursuant to 
        the terms of an operating license described in 
        paragraph (1)(B).
    (c) State or Local Government Disclosures.--Land remote 
sensing information provided by the head of a department or 
agency of the United States to a State, local, or tribal 
government may not be made available to the general public 
under any State, local, or tribal law relating to the 
disclosure of information or records.
    (d) Safeguarding Information.--The head of each department 
or agency of the United States having land remote sensing 
information within that department or agency or providing such 
information to a State, local, or tribal government shall take 
such actions, commensurate with the sensitivity of that 
information, as are necessary to protect that information from 
disclosure other than in accordance with this section and other 
applicable law.
    (e) Additional Definition.--In this section, the term 
``land remote sensing'' has the meaning given such term in 
section 3 of the Land Remote Sensing Policy Act of 1992 (15 
U.S.C. 5602).
    (f) Disclosure to Congress.--Nothing in this section shall 
be construed to authorize the withholding of information from 
the appropriate committees of Congress.

                Subtitle C--Intelligence-Related Matters

SEC. 921. TWO-YEAR EXTENSION OF AUTHORITY OF THE SECRETARY OF DEFENSE 
                    TO ENGAGE IN COMMERCIAL ACTIVITIES AS SECURITY FOR 
                    INTELLIGENCE COLLECTION ACTIVITIES ABROAD.

    Section 431(a) of title 10, United States Code, is amended 
by striking ``December 31, 2004'' and inserting ``December 31, 
2006''.

SEC. 922. PILOT PROGRAM ON CRYPTOLOGIC SERVICE TRAINING.

    (a) Program Authorized.--The Director of the National 
Security Agency may carry out a pilot program on cryptologic 
service training for the intelligence community.
    (b) Objective of Program.--The objective of the pilot 
program is to increase the number of qualified entry-level 
language analysts and intelligence analysts available to the 
National Security Agency and the other elements of the 
intelligence community through the directed preparation and 
recruitment of qualified entry-level language analysts and 
intelligence analysts who commit to a period of service or a 
career in the intelligence community.
    (c) Program Scope.--The pilot program shall be national in 
scope.
    (d) Program Participants.--(1) Subject to the provisions of 
this subsection, the Director shall select the participants in 
the pilot program from among individuals qualified to 
participate in the pilot program utilizing such procedures as 
the Director considers appropriate for purposes of the pilot 
program.
    (2) Each individual who receives financial assistance under 
the pilot program shall perform one year of obligated service 
with the National Security Agency, or another element of the 
intelligence community approved by the Director, for each 
academic year for which such individual receives such financial 
assistance upon such individual's completion of post-secondary 
education.
    (3) Each individual selected to participate in the pilot 
program shall be qualified for a security clearance appropriate 
for the individual under the pilot program.
    (4) The total number of participants in the pilot program 
at any one time may not exceed 400 individuals.
    (e) Program Management.--In carrying out the pilot program, 
the Director shall--
            (1) identify individuals interested in working in 
        the intelligence community, and committed to taking 
        college-level courses that will better prepare them for 
        a career in the intelligence community as a language 
        analyst or intelligence analyst;
            (2) provide each individual selected for 
        participation in the pilot program--
                    (A) financial assistance for the pursuit of 
                courses at institutions of higher education 
                selected by the Director in fields of study 
                that will qualify such individual for 
                employment by an element of the intelligence 
                community as a language analyst or intelligence 
                analyst; and
                    (B) educational counseling on the selection 
                of courses to be so pursued; and
            (3) provide each individual so selected information 
        on the opportunities available for employment in the 
        intelligence community.
    (f) Duration of Program.--(1) The Director shall terminate 
the pilot program not later than six years after the date of 
the enactment of this Act.
    (2) The termination of the pilot program under paragraph 
(1) shall not prevent the Director from continuing to provide 
assistance, counseling, and information under subsection (e) to 
individuals who are participating in the pilot program on the 
date of termination of the pilot program throughout the 
academic year in progress as of that date.

                       Subtitle D--Other Matters

SEC. 931. STRATEGIC PLAN FOR DESTRUCTION OF LETHAL CHEMICAL AGENTS AND 
                    MUNITIONS STOCKPILE.

    Subsection (d) of section 1412 of the Department of Defense 
Authorization Act, 1986 (50 U.S.C. 1521), is amended to read as 
follows:
    ``(d) Requirement for Strategic Plan.--(1) The Under 
Secretary of Defense for Acquisition, Technology, and Logistics 
and the Secretary of the Army shall jointly prepare, and from 
time to time shall update as appropriate, a strategic plan for 
future activities for destruction of the United States' 
stockpile of lethal chemical agents and munitions.
    ``(2) The plan shall include, at a minimum, the following 
considerations:
            ``(A) Realistic budgeting for stockpile destruction 
        and related support programs.
            ``(B) Contingency planning for foreseeable or 
        anticipated problems.
            ``(C) A management approach and associated actions 
        that address compliance with the obligations of the 
        United States under the Chemical Weapons Convention 
        treaty and that take full advantage of opportunities to 
        accelerate destruction of the stockpile.
    ``(3) The Secretary of Defense shall each year submit to 
the Committee on the Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives the 
strategic plan as most recently prepared and updated under 
paragraph (1). Such submission shall be made each year at the 
time of the submission to the Congress that year of the 
President's budget for the next fiscal year.''.

SEC. 932. SECRETARY OF DEFENSE CRITERIA FOR AND GUIDANCE ON 
                    IDENTIFICATION AND INTERNAL TRANSMISSION OF 
                    CRITICAL INFORMATION.

    (a) Criteria for Critical Information.--(1) The Secretary 
of Defense shall establish criteria for determining categories 
of critical information that should be made known expeditiously 
to senior civilian and military officials in the Department of 
Defense. Those categories should be limited to matters of 
extraordinary significance and strategic impact to which rapid 
access by those officials is essential to the successful 
accomplishment of the national security strategy or a major 
military mission. The Secretary may from time to time modify 
the list to suit the current strategic situation.
    (2) The Secretary shall provide the criteria established 
under paragraph (1) to the Chairman of the Joint Chiefs of 
Staff, the Secretaries of the military departments, the 
commanders of the unified and specified commands, the 
commanders of deployed forces, and such other elements of the 
Department of Defense as the Secretary considers necessary.
    (b) Matters To Be Included.--The criteria established under 
subsection (a) shall include, at a minimum, requirement for 
identification of the following:
            (1) Any incident that may result in a contingency 
        operation, based on the incident's nature, gravity, or 
        potential for significant adverse consequences to 
        United States citizens, military personnel, interests, 
        or assets, including an incident that could result in 
        significant adverse publicity having a major strategic 
        impact.
            (2) Any event, development, or situation that could 
        be reasonably assumed to escalate into an incident 
        described in paragraph (1).
            (3) Any deficiency or error in policy, standards, 
        or training that could be reasonably assumed to have 
        the effects described in paragraph (1).
    (c) Requirements for Transmission of Critical 
Information.--The criteria under subsection (a) shall include 
such requirements for transmission of such critical information 
to such senior civilian and military officials of the 
Department of Defense as the Secretary of Defense considers 
appropriate.
    (d) Time for Issuance of Criteria.--The Secretary of 
Defense shall establish the criteria required by subsection (a) 
not later than 120 days after the date of the enactment of this 
Act.

                      TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. United States contribution to NATO common-funded budgets in 
          fiscal year 2005.
Sec. 1003. Budget justification documents for operation and maintenance.
Sec. 1004. Licensing of intellectual property.
Sec. 1005. Repeal of funding restrictions concerning development of 
          medical countermeasures against biological warfare threats.
Sec. 1006. Report on budgeting for exchange rates for foreign currency 
          fluctuations.
Sec. 1007. Fiscal year 2004 transfer authority.
Sec. 1008. Clarification of fiscal year 2004 funding level for a 
          National Institute of Standards and Technology account.
Sec. 1009. Notification of fund transfers from working-capital funds.
Sec. 1010. Charges for Defense Logistics Information Services materials.

                 Subtitle B--Naval Vessels and Shipyards

Sec. 1011. Authority for award of contracts for ship dismantling on net-
          cost basis.
Sec. 1012. Use of proceeds from exchange and sale of obsolete navy 
          service craft and boats.
Sec. 1013. Transfer of naval vessels to certain foreign recipients.
Sec. 1014. Independent study to assess cost effectiveness of the Navy 
          ship construction program.
Sec. 1015. Limitation on disposal of obsolete naval vessel.

                     Subtitle C--Counterdrug Matters

Sec. 1021. Use of funds for unified counterdrug and counterterrorism 
          campaign in Colombia.
Sec. 1022. Sense of Congress and report regarding counter-drug efforts 
          in Afghanistan.

       Subtitle D--Matters Relating to Museums and Commemorations

Sec. 1031. Recognition of the Liberty Memorial Museum, Kansas City, 
          Missouri, as America's National World War I Museum.
Sec. 1032. Program to commemorate 60th anniversary of World War II.
Sec. 1033. Annual report on Department of Defense operation and 
          financial support for military museums.

                           Subtitle E--Reports

Sec. 1041. Quarterly detailed accounting for operations conducted as 
          part of the Global War on Terrorism.
Sec. 1042. Report on post-major combat operations phase of Operation 
          Iraqi Freedom.
Sec. 1043. Report on training provided to members of the Armed Forces to 
          prepare for post-conflict operations.
Sec. 1044. Report on establishing National Centers of Excellence for 
          unmanned aerial and ground vehicles.
Sec. 1045. Study of continued requirement for two-crew manning for 
          ballistic missile submarines.
Sec. 1046. Report on Department of Defense programs for prepositioning 
          of materiel and equipment.
Sec. 1047. Report on al Quaeda and associated groups in Latin America 
          and the Caribbean.

   Subtitle F--Defense Against Terrorism and Other Domestic Security 
                                 Matters

Sec. 1051. Acceptance of communications equipment provided by local 
          public safety agencies.
Sec. 1052. Determination and report on full-time airlift support for 
          homeland defense operations.
Sec. 1053. Survivability of critical systems exposed to chemical or 
          biological contamination.

                 Subtitle G--Personnel Security Matters

Sec. 1061. Use of National Driver Register for personnel security 
          investigations and determinations.
Sec. 1062. Standards for disqualification from eligibility for 
          Department of Defense security clearance.

               Subtitle H--Transportation-Related Matters

Sec. 1071. Use of military aircraft to transport mail to and from 
          overseas locations.
Sec. 1072. Reorganization and clarification of certain provisions 
          relating to control and supervision of transportation within 
          the Department of Defense.
Sec. 1073. Evaluation of procurement practices relating to 
          transportation of security-sensitive cargo.

                        Subtitle I--Other Matters

Sec. 1081. Liability protection for Department of Defense volunteers 
          working in maritime environment.
Sec. 1082. Sense of Congress concerning media coverage of the return to 
          the United States of the remains of deceased members of the 
          Armed Forces from overseas.
Sec. 1083. Transfer of historic F3A-1 Brewster Corsair aircraft.
Sec. 1084. Technical and clerical amendments.
Sec. 1085. Preservation of search and rescue capabilities of the Federal 
          Government.
Sec. 1086. Acquisition of aerial firefighting equipment for National 
          Interagency Fire Center.
Sec. 1087. Revision to requirements for recognition of institutions of 
          higher education as Hispanic-serving institutions for purposes 
          of certain grants and contracts.
Sec. 1088. Military extraterritorial jurisdiction over contractors 
          supporting defense missions overseas.
Sec. 1089. Definition of United States for purposes of Federal crime of 
          torture.
Sec. 1090. Energy savings performance contracts.
Sec. 1091. Sense of Congress and policy concerning persons detained by 
          the United States.
Sec. 1092. Actions to prevent the abuse of detainees.
Sec. 1093. Reporting requirements.
Sec. 1094. Findings and sense of Congress concerning Army Specialist 
          Joseph Darby.

                     Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

    (a) Authority To Transfer Authorizations.--(1) Upon 
determination by the Secretary of Defense that such action is 
necessary in the national interest, the Secretary may transfer 
amounts of authorizations made available to the Department of 
Defense in this division for fiscal year 2005 between any such 
authorizations for that fiscal year (or any subdivisions 
thereof). Amounts of authorizations so transferred shall be 
merged with and be available for the same purposes as the 
authorization to which transferred.
    (2) The total amount of authorizations that the Secretary 
may transfer under the authority of this section may not exceed 
$3,500,000,000.
    (b) Limitations.--The authority provided by this section to 
transfer authorizations--
            (1) may only be used to provide authority for items 
        that have a higher priority than the items from which 
        authority is transferred; and
            (2) may not be used to provide authority for an 
        item that has been denied authorization by Congress.
    (c) Effect on Authorization Amounts.--A transfer made from 
one account to another under the authority of this section 
shall be deemed to increase the amount authorized for the 
account to which the amount is transferred by an amount equal 
to the amount transferred.
    (d) Notice to Congress.--The Secretary shall promptly 
notify Congress of each transfer made under subsection (a).

SEC. 1002. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED BUDGETS IN 
                    FISCAL YEAR 2005.

    (a) Fiscal Year 2005 Limitation.--The total amount 
contributed by the Secretary of Defense in fiscal year 2005 for 
the common-funded budgets of NATO may be any amount up to, but 
not in excess of, the amount specified in subsection (b) 
(rather than the maximum amount that would otherwise be 
applicable to those contributions under the fiscal year 1998 
baseline limitation).
    (b) Total Amount.--The amount of the limitation applicable 
under subsection (a) is the sum of the following:
            (1) The amounts of unexpended balances, as of the 
        end of fiscal year 2004, of funds appropriated for 
        fiscal years before fiscal year 2005 for payments for 
        those budgets.
            (2) The amount specified in subsection (c)(1).
            (3) The amount specified in subsection (c)(2).
            (4) The total amount of the contributions 
        authorized to be made under section 2501.
    (c) Authorized Amounts.--Amounts authorized to be 
appropriated by titles II and III of this Act are available for 
contributions for the common-funded budgets of NATO as follows:
            (1) Of the amount provided in section 201(1), 
        $756,000 for the Civil Budget.
            (2) Of the amount provided in section 301(1), 
        $222,492,000 for the Military Budget.
    (d) Definitions.--For purposes of this section:
            (1) Common-funded budgets of nato.--The term 
        ``common-funded budgets of NATO'' means the Military 
        Budget, the Security Investment Program, and the Civil 
        Budget of the North Atlantic Treaty Organization (and 
        any successor or additional account or program of 
        NATO).
            (2) Fiscal year 1998 baseline limitation.--The term 
        ``fiscal year 1998 baseline limitation'' means the 
        maximum annual amount of Department of Defense 
        contributions for common-funded budgets of NATO that is 
        set forth as the annual limitation in section 
        3(2)(C)(ii) of the resolution of the Senate giving the 
        advice and consent of the Senate to the ratification of 
        the Protocols to the North Atlantic Treaty of 1949 on 
        the Accession of Poland, Hungary, and the Czech 
        Republic (as defined in section 4(7) of that 
        resolution), approved by the Senate on April 30, 1998.

SEC. 1003. BUDGET JUSTIFICATION DOCUMENTS FOR OPERATION AND 
                    MAINTENANCE.

    (a) In General.--(1) Chapter 9 of title 10, United States 
Code, is amended by adding after section 232, as added by 
section 214(a), the following new section:

``Sec. 233. Operation and maintenance budget presentation

    ``(a) Identification of Baseline Amounts in O&M; 
Justification Documents.--In any case in which the amount 
requested in the President's budget for a fiscal year for a 
Department of Defense operation and maintenance program, 
project, or activity is different from the amount appropriated 
for that program, project, or activity for the current year, 
the O&M; justification documents supporting that budget shall 
identify that appropriated amount and the difference between 
that amount and the amount requested in the budget, stated as 
an amount and as a percentage.
    ``(b) Navy for Ship Depot Maintenance and for Intermediate 
Ship Maintenance.--In the O&M; justification documents for the 
Navy for any fiscal year, amounts requested for ship depot 
maintenance and amounts requested for intermediate ship 
maintenance shall be identified and distinguished.
    ``(c) Definitions.--In this section:
            ``(1) The term `O&M; justification documents' means 
        Department of Defense budget justification documents 
        with respect to accounts for operation and maintenance 
        submitted to the congressional defense committees in 
        support of the Department of Defense component of the 
        President's budget for any fiscal year.
            ``(2) The term `President's budget' means the 
        budget of the President submitted to Congress under 
        section 1105 of title 31 for any fiscal year.
            ``(3) The term `current year' means the fiscal year 
        during which the President's budget is submitted in any 
        year.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding after the item relating to section 232, as 
added by section 214(b), the following new item:

``233. Operation and maintenance budget presentation.''.

    (b) Components of Line Items for Other Costs and Other 
Contracts.--Not later than March 1, 2005, the Secretary of 
Defense shall submit to the congressional defense committees a 
report setting forth the component elements of the line items 
identified as ``Other Costs'' and ``Other Contracts'' in the 
exhibit identified as ``Summary of Price and Program Changes'' 
in the budget justification materials submitted to those 
committees in support of the budget for fiscal year 2006.

SEC. 1004. LICENSING OF INTELLECTUAL PROPERTY.

    (a) Authority.--Subchapter II of chapter 134 of title 10, 
United States Code, is amended by adding at the end the 
following new section:

``Sec. 2260. Licensing of intellectual property: retention of fees

    ``(a) Authority.--Under regulations prescribed by the 
Secretary of Defense, the Secretary concerned may license 
trademarks, service marks, certification marks, and collective 
marks owned or controlled by the Secretary concerned and may 
retain and expend fees received from such licensing in 
accordance with this section.
    ``(b) Designated Marks.--The Secretary concerned shall 
designate the trademarks, service marks, certification marks, 
and collective marks regarding which the Secretary will 
exercise the authority to retain licensing fees under this 
section.
    ``(c) Use of Fees.--The Secretary concerned shall use fees 
retained under this section for the following purposes:
            ``(1) For payment of the following costs incurred 
        by the Secretary:
                    ``(A) Costs of securing trademark 
                registrations.
                    ``(B) Costs of operating the licensing 
                program under this section.
            ``(2) For morale, welfare, and recreation 
        activities under the jurisdiction of the Secretary, to 
        the extent (if any) that the total amount of the 
        licensing fees available under this section for a 
        fiscal year exceed the total amount needed for such 
        fiscal year under paragraph (1).
    ``(d) Availability.--Fees received in a fiscal year and 
retained under this section shall be available for obligation 
in such fiscal year and the following two fiscal years.
    ``(e) Definitions.--In this section, the terms `trademark', 
`service mark', `certification mark', and `collective mark' 
have the meanings given such terms in section 45 of the Act of 
July 5, 1946 (commonly referred to as the Trademark Act of 
1946; 15 U.S.C. 1127).''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such subchapter is amended by adding at the end 
the following new item:

``2260. Licensing of intellectual property: retention of fees.''.

SEC. 1005. REPEAL OF FUNDING RESTRICTIONS CONCERNING DEVELOPMENT OF 
                    MEDICAL COUNTERMEASURES AGAINST BIOLOGICAL WARFARE 
                    THREATS.

    (a) Repeal.--Section 2370a of title 10, United States Code, 
is repealed.
    (b) Clerical Amendment.--The table of sections at the 
beginning of chapter 139 of such title is amended by striking 
the item relating to that section.

SEC. 1006. REPORT ON BUDGETING FOR EXCHANGE RATES FOR FOREIGN CURRENCY 
                    FLUCTUATIONS.

    (a) Secretary of Defense Report.--(1) Not later than 
December 1, 2004, the Secretary of Defense shall submit to the 
Committee on Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives a report on the 
foreign currency exchange rate projection used in annual 
Department of Defense budget presentations.
    (2) In the report under paragraph (1), the Secretary 
shall--
            (A) identify alternative approaches for selecting 
        foreign currency exchange rates that would produce more 
        realistic estimates of amounts required to be 
        appropriated or otherwise made available for the 
        Department of Defense to accommodate foreign currency 
        exchange rate fluctuations;
            (B) discuss the advantages and disadvantages of 
        each approach identified pursuant to subparagraph (A); 
        and
            (C) identify the Secretary's preferred approach 
        among the alternatives identified pursuant to 
        subparagraph (A) and provide the Secretary's rationale 
        for preferring that approach.
    (3) In identifying alternative approaches pursuant to 
paragraph (2)(A), the Secretary shall examine--
            (A) approaches used by other Federal departments 
        and agencies; and
            (B) the feasibility of using private economic 
        forecasting.
    (b) Comptroller General Review and Report.--The Comptroller 
General shall review the report under subsection (a), including 
the basis for the Secretary's conclusions stated in the report, 
and shall submit, not later than January 15, 2005, to the 
Committee on Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives a report 
containing the results of that review.

SEC. 1007. FISCAL YEAR 2004 TRANSFER AUTHORITY.

    Section 1001(a)(2) of the National Defense Authorization 
Act for Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1582) 
is amended by striking ``$2,500,000,000'' and inserting 
``$2,800,000,000''.

SEC. 1008. CLARIFICATION OF FISCAL YEAR 2004 FUNDING LEVEL FOR A 
                    NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY 
                    ACCOUNT.

    For the purposes of applying sections 204 and 605 of the 
Departments of Commerce, Justice, and State, the Judiciary, and 
Related Agencies Appropriations Act, 2004 (division B of Public 
Law 108-199) to matters in title II of such Act under the 
heading ``National Institute of Standards and Technology'' (118 
Stat. 69), in the account under the heading ``industrial 
technology services'', the Secretary of Commerce shall make all 
determinations based on the Industrial Technology Services 
funding level of $218,782,000 for reprogramming and 
transferring of funds for the Manufacturing Extension 
Partnership program and may submit such a reprogramming or 
transfer, as the case may be, to the appropriate committees 
within 30 days after the date of the enactment of this Act.

SEC. 1009. NOTIFICATION OF FUND TRANSFERS FROM WORKING-CAPITAL FUNDS.

    Section 2208 of title 10, United States Code, is amended by 
adding at the end the following new subsection:
    ``(r) Notification of Transfers.--(1) Notwithstanding any 
authority provided in this section to transfer funds, the 
transfer of funds from a working-capital fund, including a 
transfer to another working-capital fund, shall not be made 
under such authority unless the Secretary of Defense submits, 
in advance, a notification of the proposed transfer to the 
congressional defense committees in accordance with customary 
procedures.
    ``(2) The amount of a transfer covered by a notification 
under paragraph (1) that is made in a fiscal year does not 
count toward any limitation on the total amount of transfers 
that may be made for that fiscal year under authority provided 
to the Secretary of Defense in a law authorizing appropriations 
for a fiscal year for military activities of the Department of 
Defense or a law making appropriations for the Department of 
Defense.''.

SEC. 1010. CHARGES FOR DEFENSE LOGISTICS INFORMATION SERVICES 
                    MATERIALS.

    (a) Authority.--Subchapter I of chapter 8 of title 10, 
United States Code, is amended by adding at the end the 
following new section:

``Sec. 197. Defense Logistics Agency: fees charged for logistics 
                    information

    ``(a) Authority.--The Secretary of Defense may charge fees 
for providing information in the Federal Logistics Information 
System through Defense Logistics Information Services to a 
department or agency of the executive branch outside the 
Department of Defense, or to a State, a political subdivision 
of a State, or any person.
    ``(b) Amount.--The fee or fees prescribed under subsection 
(a) shall be such amount or amounts as the Secretary of Defense 
determines appropriate for recovering the costs of providing 
information as described in such subsection.
    ``(c) Retention of Fees.--Fees collected under this section 
shall be credited to the appropriation available for Defense 
Logistics Information Services for the fiscal year in which 
collected, shall be merged with other sums in such 
appropriation, and shall be available for the same purposes and 
period as the appropriation with which merged.
    ``(d) Defense Logistics Information Services Defined.--In 
this section, the term `Defense Logistics Information Services' 
means the organization within the Defense Logistics Agency that 
is known as Defense Logistics Information Services.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such subchapter is amended by adding at the end 
the following new item:

``197. Defense Logistics Agency: fees charged for logistics 
          information.''.

                Subtitle B--Naval Vessels and Shipyards

SEC. 1011. AUTHORITY FOR AWARD OF CONTRACTS FOR SHIP DISMANTLING ON 
                    NET-COST BASIS.

    (a) In General.--Chapter 633 of title 10, United States 
Code, is amended by inserting after section 7305 the following 
new section:

``Sec. 7305a. Vessels stricken from Naval Vessel Register: contracts 
                    for dismantling on net-cost basis

    ``(a) Authority for Net-Cost Basis Contracts.--When the 
Secretary of the Navy awards a contract for the dismantling of 
a vessel stricken from the Naval Vessel Register, the Secretary 
may award the contract on a net-cost basis.
    ``(b) Retention by Contractor of Proceeds of Sale of Scrap 
and Reusable Items.--When the Secretary awards a contract on a 
net-cost basis under subsection (a), the Secretary shall 
provide in the contract that the contractor may retain the 
proceeds from the sale of scrap and reusable items removed from 
the vessel dismantled under the contract.
    ``(c) Definitions.--In this section:
            ``(1) The term `net-cost basis', with respect to a 
        contract for the dismantling of a vessel, means that 
        the amount to be paid to the contractor under the 
        contract for dismantling and for removal and disposal 
        of hazardous waste material is discounted by the 
        offeror's estimate of the value of scrap and reusable 
        items that the contractor will remove from the vessel 
        during performance of the contract.
            ``(2) The term `scrap' means personal property that 
        has no value except for its basic material content.
            ``(3) The term `reusable item' means a 
        demilitarized component or a removable portion of a 
        vessel or equipment that the Secretary of the Navy has 
        identified as excess to the needs of the Navy but which 
        has potential resale value on the open market.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 7305 the following new item:

``7305a. Vessels stricken from Naval Vessel Register: contracts for 
          dismantling on net-cost basis.''.

SEC. 1012. USE OF PROCEEDS FROM EXCHANGE AND SALE OF OBSOLETE NAVY 
                    SERVICE CRAFT AND BOATS.

    (a) Costs of Preparation for Disposal.--(1) Chapter 633 of 
title 10, United States Code, is amended by inserting after 
section 7311 the following new section:

``Sec. 7312. Service craft stricken from Naval Vessel Register; 
                    obsolete boats: use of proceeds from exchange or 
                    sale

    ``(a) Exchange or Sale of Similar Items.--When the 
Secretary of the Navy sells an obsolete service craft or an 
obsolete boat, or exchanges such a craft or boat in a 
transaction for which a similar craft or boat is acquired, the 
Secretary may retain the proceeds of the sale or the exchange 
allowance from the exchange, as the case may be, and apply the 
proceeds of sale or the exchange allowance for any of the 
following purposes:
            ``(1) For payment, in whole or in part, for a 
        similar service craft or boat acquired as a 
        replacement, as authorized by section 503 of title 40.
            ``(2) For reimbursement, to the extent practicable, 
        of the appropriate accounts of the Navy for the full 
        costs of preparation of such obsolete craft or boat for 
        such sale or exchange.
            ``(3) For deposit to the special account 
        established under subsection (b), to be available in 
        accordance with that subsection.
    ``(b) Special Account.--Amounts retained under subsection 
(a) that are not applied as provided in paragraph (1) or (2) of 
that subsection shall be deposited into a special account. 
Am