Text: H.R.4546 — 107th Congress (2001-2002)All Information (Except Text)

Text available as:

Shown Here:
Public Law No: 107-314 (12/02/2002)

 
[107th Congress Public Law 314]
[From the U.S. Government Printing Office]


[DOCID: f:publ314.107]

[[Page 2457]]

    BOB STUMP NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2003

[[Page 116 STAT. 2458]]

Public Law 107-314
107th Congress

                                 An Act


 
 To  authorize appropriations for fiscal year 2003 for military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe personnel strengths for such fiscal year for the Armed Forces, and for other purposes. <<NOTE: Dec. 2, 2002 -  [H.R. 4546]>>

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Bob Stump National Defense 
Authorization Act for Fiscal Year 2003.>> assembled,

SECTION 1. SHORT TITLE; FINDINGS.

    (a) Short Title.--This Act may be cited as the ``Bob Stump National 
Defense Authorization Act for Fiscal Year 2003''.
    (b) Findings.--Congress makes the following findings:
            (1) Representative Bob Stump of Arizona was elected to the 
        House of Representatives in 1976 for service in the 95th 
        Congress, after serving in the Arizona legislature for 18 years 
        and serving as President of the Arizona State Senate from 1975 
        to 1976, and he has been reelected to each subsequent Congress.
            (2) A World War II combat veteran, Representative Stump 
        entered service in the United States Navy in 1943, just after 
        his 16th birthday, and served aboard the USS LUNGA POINT and the 
        USS TULAGI, which participated in the invasions of Luzon, Iwo 
        Jima, and Okinawa.
            (3) Representative Stump was elected to the Committee on 
        Armed Services in 1978 and has served on nearly all of its 
        subcommittees and panels during 25 years of distinguished 
        service on the committee. He has served as chairman of the 
        committee during the 107th Congress and has championed United 
        States national security as the paramount function of the 
        Federal Government.
            (4) Also serving on the Committee on Veterans' Affairs of 
        the House of Representatives, chairing that committee from 1995 
        to 2000, and serving on the Permanent Select Committee on 
        Intelligence of the House of Representatives, including service 
        as the ranking minority member in 1985 and 1986, Representative 
        Stump has dedicated his entire congressional career to 
        steadfastly supporting America's courageous men and women in 
        uniform both on and off the battlefield.
            (5) Representative Stump's tireless efforts on behalf of 
        those in the military and veterans have been recognized with 
        numerous awards for outstanding service from active duty and 
        reserve military, veterans' service, military retiree, and 
        industry organizations.

[[Page 116 STAT. 2459]]

            (6) During his tenure as chairman of the Committee on Armed 
        Services of the House of Representatives, Representative Stump 
        has--
                    (A) overseen the largest sustained increase to 
                defense spending since the Reagan administration;
                    (B) led efforts to improve the quality of military 
                life, including passage of the largest military pay 
                raise since 1982;
                    (C) supported military retirees, including efforts 
                to reverse concurrent receipt law and to save the Armed 
                Forces Retirement Homes;
                    (D) championed military readiness by defending 
                military access to critical training facilities such 
                Vieques, Puerto Rico, expanding the National Training 
                Center at Ft. Irwin, California, and working to restore 
                balance between environmental concerns and military 
                readiness requirements;
                    (E) reinvigorated efforts to defend America against 
                ballistic missiles by supporting an increase in fiscal 
                year 2002 of nearly 50 percent above the fiscal year 
                2001 level for missile defense programs; and
                    (F) honored America's war heroes by expanding 
                Arlington National Cemetery, establishing a site for the 
                Air Force Memorial, and assuring construction of the 
                World War II Memorial.
            (7) In recognition of his long record of accomplishments in 
        enhancing the national security of the United States and his 
        legislative victories on behalf of active duty service members, 
        reservists, guardsmen, and veterans, it is altogether fitting 
        and proper that this Act be named in honor of Representative Bob 
        Stump of Arizona, as provided in subsection (a).

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; findings.
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.
Sec. 105. Defense Inspector General.
Sec. 106. Chemical Agents and Munitions Destruction, Defense.
Sec. 107. Defense health programs.

[[Page 116 STAT. 2460]]

                        Subtitle B--Army Programs

Sec. 111. Pilot program on sales of manufactured articles and services 
           of certain Army industrial facilities without regard to 
           availability from domestic sources. 
Sec. 112. Report on impact of Army aviation modernization plan on the 
           Army National Guard.
Sec. 113. Family of Medium Tactical Vehicles.

                        Subtitle C--Navy Programs

Sec. 121. Extension of multiyear procurement authority for DDG-51 class 
           destroyers.
Sec. 122. Sense of Congress on scope of conversion program for 
           Ticonderoga-class cruisers.
Sec. 123. Continuation of contract for operation of Champion-class T-5 
           fuel tanker vessels.

                     Subtitle D--Air Force Programs

Sec. 131. Multiyear procurement authority for C-130J aircraft program.
Sec. 132. Pathfinder programs.
Sec. 133. Leases for tanker aircraft under multiyear aircraft-lease 
           pilot program.

                       Subtitle E--Other Programs

Sec. 141. Destruction of existing stockpile of lethal chemical agents 
           and munitions.
Sec. 142. Report on unmanned aerial vehicle systems.
Sec. 143. Global Information Grid system.

          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.
Sec. 203. Defense health programs.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. RAH-66 Comanche aircraft program.
Sec. 212. Extension of requirements relating to management 
           responsibility for naval mine countermeasures programs.
Sec. 213. Revised requirements for plan for Manufacturing Technology 
           Program.
Sec. 214. Advanced SEAL Delivery System.
Sec. 215. Army experimentation program regarding design of the objective 
           force.
Sec. 216. Program to provide Army with self-propelled Future Combat 
           Systems non-line-of-sight cannon indirect fire capability for 
           the objective force.
Sec. 217. Prohibition on transfer of Medical Free Electron Laser 
           program.
Sec. 218. Littoral combat ship program.

                  Subtitle C--Ballistic Missile Defense

Sec. 221. Report requirements relating to ballistic missile defense 
           programs.
Sec. 222. Responsibility of Missile Defense Agency for research, 
           development, test, and evaluation related to system 
           improvements of programs transferred to military departments.
Sec. 223. Limitation on obligation of funds for Theater High Altitude 
           Area Defense Program pending submission of required life-
           cycle cost information.
Sec. 224. Provision of information on flight testing of Ground-based 
           Midcourse National Missile Defense system.
Sec. 225. References to new name for Ballistic Missile Defense 
           Organization.
Sec. 226. One-year limitation on use of funds for nuclear armed 
           interceptors.

   Subtitle D--Improved Management of Department of Defense Test and 
                          Evaluation Facilities

Sec. 231. Department of Defense Test Resource Management Center.
Sec. 232. Objective for institutional funding of test and evaluation 
           facilities.
Sec. 233. Uniform financial management system for Department of Defense 
           test and evaluation facilities.
Sec. 234. Test and evaluation workforce improvements.
Sec. 235. Compliance with testing requirements.

                        Subtitle E--Other Matters

Sec. 241. Pilot programs for revitalizing Department of Defense 
           laboratories.
Sec. 242. Technology Transition Initiative.

[[Page 116 STAT. 2461]]

Sec. 243. Defense Acquisition Challenge Program.
Sec. 244. Encouragement of small businesses and nontraditional defense 
           contractors to submit proposals potentially beneficial for 
           combating terrorism.
Sec. 245. Vehicle fuel cell program.
Sec. 246. Defense nanotechnology research and development program.
Sec. 247. Activities of the Defense Experimental Program to Stimulate 
           Competitive Research.
Sec. 248. Four-year extension of authority of DARPA to award prizes for 
           advanced technology achievements and additional authority of 
           military departments and Defense Agencies to award prizes for 
           achievements in promoting education.
Sec. 249. Plan for five-year program for enhancement of measurement and 
           signatures intelligence capabilities of the United States 
           through incorporation of results of basic research on 
           sensors.

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Grant to National Guard Youth Foundation.

                  Subtitle B--Environmental Provisions

Sec. 311. Enhancement of authority on cooperative agreements for 
           environmental purposes.
Sec. 312. Single point of contact for policy and budgeting issues 
           regarding unexploded ordnance, discarded military munitions, 
           and munitions constituents.
Sec. 313. Authority to carry out construction projects for environmental 
           responses.
Sec. 314. Procurement of environmentally preferable procurement items.
Sec. 315. Incidental taking of migratory birds during military readiness 
           activities.

   Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 321. Authority for each military department to provide base 
           operating support to Fisher Houses.
Sec. 322. Use of commissary stores and MWR retail facilities by members 
           of National Guard serving in national emergency.
Sec. 323. Uniform funding and management of morale, welfare, and 
           recreation programs.
Sec. 324. Rebate agreements under the special supplemental food program.

                 Subtitle D--Workplace and Depot Issues

Sec. 331. Notification requirements in connection with required studies 
           for conversion of commercial or industrial type functions to 
           contractor performance.
Sec. 332. Temporary authority for contractor performance of security-
           guard functions to meet increased requirements since 
           September 11, 2001.
Sec. 333. Repeal of obsolete provision regarding depot-level maintenance 
           and repair workloads that were performed at closed or 
           realigned military installations.
Sec. 334. Exclusion of certain expenditures from limitation on private 
           sector performance of depot-level maintenance.

                Subtitle E--Defense Dependents Education

Sec. 341. Assistance to local educational agencies that benefit 
           dependents of members of the Armed Forces and Department of 
           Defense civilian employees.
Sec. 342. Housing benefits for unaccompanied teachers required to live 
           at Guantanamo Bay Naval Station, Cuba.
Sec. 343. Options for funding dependent summer school programs.
Sec. 344. Impact aid eligibility for local educational agencies affected 
           by privatization of military housing.
Sec. 345. Comptroller General study of adequacy of compensation provided 
           for teachers in the Department of Defense Overseas 
           Dependents' Schools.

                   Subtitle F--Information Technology

Sec. 351. Annual submission of information regarding information 
           technology capital assets.
Sec. 352. Policy regarding acquisition of information assurance and 
           information assurance-enabled information technology 
           products.

[[Page 116 STAT. 2462]]

Sec. 353. Installation and connection policy and procedures regarding 
           Defense Switch Network.

                        Subtitle G--Other Matters

Sec. 361. Distribution of monthly reports on allocation of funds within 
           operation and maintenance budget subactivities.
Sec. 362. Continuation of arsenal support program initiative.
Sec. 363. Extension of work safety demonstration program.
Sec. 364. Condition on authority of Defense Security Service to impose 
           fees on fee-for-service basis.
Sec. 365. Logistics support and services for weapon systems contractors.
Sec. 366. Training range sustainment plan, Global Status of Resources 
           and Training System, and training range inventory.
Sec. 367. Engineering study and environmental analysis of road 
           modifications in vicinity of Fort Belvoir, Virginia.
Sec. 368. Reauthorization of warranty claims recovery pilot program.
Sec. 369. Expanded eligibility for loan, gift, or exchange of documents, 
           historical artifacts, and condemned or obsolete combat 
           materiel.

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent end strength minimum levels.
Sec. 403. Expanded authority for administrative increases in statutory 
           active-duty end strengths.
Sec. 404. General and flag officer management.
Sec. 405. Extension of certain authorities relating to management of 
           numbers of general and flag officers in certain grades.
Sec. 406. Increase in authorized strengths for Marine Corps officers on 
           active duty in the grade of colonel.

                       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 2003 limitation on non-dual status technicians.

               Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Extension of good-of-the-service waiver authority for officers 
           appointed to a Reserve Chief or Guard Director position.
Sec. 502. Exclusion of certain officers from limitation on authority to 
           grant a waiver of required completion or sequencing for joint 
           professional military education.
Sec. 503. Extension and codification of authority for recall of retired 
           aviators to active duty.
Sec. 504. Grades for certain positions.
Sec. 505. Reinstatement of authority to reduce three-year time-in-grade 
           requirement for retirement in grade for officers in grades 
           above major and lieutenant commander.
Sec. 506. Authority to require that an officer take leave pending review 
           of a recommendation for removal by a board of inquiry.

                Subtitle B--Reserve Component Management

Sec. 511. Reviews of National Guard strength accounting and management 
           and other issues.
Sec. 512. Courts-martial for the National Guard when not in Federal 
           service.
Sec. 513. Fiscal year 2003 funding for military personnel costs of 
           reserve component Special Operations Forces personnel engaged 
           in humanitarian assistance activities relating to clearing of 
           landmines.
Sec. 514. Use of Reserves to perform duties relating to defense against 
           terrorism.
Sec. 515. Repeal of prohibition on use of Air Force Reserve AGR 
           personnel for Air Force base security functions.

         Subtitle C--Reserve Component Officer Personnel Policy

Sec. 521. Eligibility for consideration for promotion to grade of major 
           general for certain reserve component brigadier generals who 
           do not otherwise qualify for consideration for promotion 
           under the one-year rule.

[[Page 116 STAT. 2463]]

Sec. 522. Authority for limited extension of medical deferment of 
           mandatory retirement or separation of reserve component 
           officers.

        Subtitle D--Enlistment, Education, and Training Programs

Sec. 531. Enlistment incentives for pursuit of skills to facilitate 
           national service.
Sec. 532. Authority for phased increase to 4,400 in authorized strengths 
           for the service academies.
Sec. 533. Enhancement of reserve component delayed training program.
Sec. 534. Review of Armed Forces programs for preparation for, 
           participation in, and conduct of athletic competitions.
Sec. 535. Repeal of bar to eligibility of Army College First program 
           participants for benefits under student loan repayment 
           program.

           Subtitle E--Decorations, Awards, and Commendations

Sec. 541. Waiver of time limitations for award of Army Distinguished-
           Service Cross to certain persons.
Sec. 542. Option to convert award of Armed Forces Expeditionary Medal 
           awarded for Operation Frequent Wind to Vietnam Service Medal.
Sec. 543. Korea Defense Service Medal.
Sec. 544. Commendation of military chaplains.

                   Subtitle F--Administrative Matters

Sec. 551. Staffing and funding for Defense Prisoner of War/Missing 
           Personnel Office.
Sec. 552. Three-year freeze on reductions of personnel of agencies 
           responsible for review and correction of military records.
Sec. 553. Authority for acceptance of voluntary services of individuals 
           as proctors for administration of Armed Services Vocational 
           Aptitude Battery test.
Sec. 554. Extension of temporary early retirement authority.

Subtitle G--Matters Relating to Minorities and Women in the Armed Forces

Sec. 561. Surveys of racial and ethnic issues and of gender issues in 
           the Armed Forces.
Sec. 562. Annual report on status of female members of the Armed Forces.
Sec. 563. Wear of abayas by female members of the Armed Forces in Saudi 
           Arabia.

                          Subtitle H--Benefits

Sec. 571. Department of Defense support for persons participating in 
           military funeral honors details.
Sec. 572. Emergency leave of absence program.
Sec. 573. Enhanced flexibility in medical loan repayment program.
Sec. 574. Destinations authorized for Government paid transportation of 
           enlisted personnel for rest and recuperation absence upon 
           extending duty at designated locations overseas.
Sec. 575. Vehicle storage in lieu of transportation when member is 
           ordered to a nonforeign duty station outside continental 
           United States.

                           Subtitle I--Reports

Sec. 581. Quadrennial quality of life review.
Sec. 582. Report on desirability and feasibility of consolidating 
           separate courses of basic instruction for judge advocates.
Sec. 583. Reports on efforts to resolve status of Captain Michael Scott 
           Speicher, United States Navy.
Sec. 584. Report on volunteer services of members of the reserve 
           components in emergency response to the terrorist attacks of 
           September 11, 2001.

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2003.
Sec. 602. Basic allowance for housing in cases of low-cost or no-cost 
           moves.
Sec. 603. Rate of basic allowance for subsistence for enlisted personnel 
           occupying single Government quarters without adequate 
           availability of meals.

           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.

[[Page 116 STAT. 2464]]

Sec. 614. One-year extension of other bonus and special pay authorities.
Sec. 615. Increase in maximum rates for certain special pays, bonuses, 
           and financial assistance for health care professionals.
Sec. 616. Assignment incentive pay.
Sec. 617. Increase in maximum rates for prior service enlistment bonus.
Sec. 618. Retention incentives for health care professionals qualified 
           in a critical military skill.

            Subtitle C--Travel and Transportation Allowances

Sec. 621. Extension of leave travel deferral period for members 
           performing consecutive overseas tours of duty.
Sec. 622. Transportation of motor vehicles for members reported missing.

              Subtitle D--Retired Pay and Survivor Benefits

Sec. 631. Permanent reduction from eight to six in number of years of 
           reserve service required for eligibility for retired pay for 
           non-regular service.
Sec. 632. Increased retired pay for enlisted Reserves credited with 
           extraordinary heroism.
Sec. 633. Elimination of possible inversion in retired pay cost-of-
           living adjustment for initial COLA computation.
Sec. 634. Technical revisions to so-called ``forgotten widows'' annuity 
           program.
Sec. 635. Expansion of authority of Secretary of Defense to waive time 
           limitations on claims against the Government for military 
           personnel benefits.
Sec. 636. Special compensation for certain combat-related disabled 
           uniformed services retirees.

                     Subtitle E--Montgomery GI Bill

Sec. 641. Time limitation for use of Montgomery GI Bill entitlement by 
           members of the Selected Reserve.
Sec. 642. Repayment requirements under Reserve Component Montgomery GI 
           Bill arising from failure to participate satisfactorily in 
           military service to be considered debts owed to the United 
           States.
Sec. 643. Technical adjustments to authority for certain members to 
           transfer educational assistance under Montgomery GI Bill to 
           dependents.

                        Subtitle F--Other Matters

Sec. 651. Payment of interest on student loans.
Sec. 652. Additional authority to provide assistance for families of 
           members of the Armed Forces.
Sec. 653. Repeal of authority for acceptance of honoraria by personnel 
           at certain Department of Defense schools.
Sec. 654. Addition of definition of continental United States in title 
           37.

                    TITLE VII--HEALTH CARE PROVISIONS

              Subtitle A--Health Care Program Improvements

Sec. 701. Elimination of requirement for TRICARE preauthorization of 
           inpatient mental health care for medicare-eligible 
           beneficiaries.
Sec. 702. Continued TRICARE eligibility of dependents residing at remote 
           locations after departure of sponsors for unaccompanied 
           assignments and eligibility of dependents of reserve 
           component members ordered to active duty.
Sec. 703. Eligibility of surviving dependents for TRICARE dental program 
           benefits after discontinuance of former enrollment.
Sec. 704. Department of Defense Medicare-Eligible Retiree Health Care 
           Fund.
Sec. 705. Approval of medicare providers as TRICARE providers.
Sec. 706. Technical corrections relating to transitional health care for 
           members separated from active duty.
Sec. 707. Extension of temporary authority to enter into personal 
           services contracts for the performance of health care 
           responsibilities at locations other than military medical 
           treatment facilities.
Sec. 708. Access to health care services for beneficiaries eligible for 
           TRICARE and Department of Veterans Affairs health care.
Sec. 709. Disclosure of information on Project 112 to Department of 
           Veterans Affairs.

                           Subtitle B--Reports

Sec. 711. Claims information.
Sec. 712. Comptroller General report on provision of care under the 
           TRICARE program.

[[Page 116 STAT. 2465]]

Sec. 713. Repeal of report requirement.

Subtitle C--Department of Defense-Department of Veterans Affairs Health 
                            Resources Sharing

Sec. 721. Revised coordination and sharing guidelines.
Sec. 722. Health care resources sharing and coordination project.
Sec. 723. Report on improved coordination and sharing of health care and 
           health care resources following domestic acts of terrorism or 
           domestic use of weapons of mass destruction.
Sec. 724. Interoperability of Department of Veterans Affairs and 
           Department of Defense pharmacy data systems.
Sec. 725. Joint pilot program for providing graduate medical education 
           and training for physicians.
Sec. 726. Repeal of certain limits on Department of Veterans Affairs 
           resources.

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

              Subtitle A--Acquisition Policy and Management

Sec. 801. Buy-to-budget acquisition of end items.
Sec. 802. Report to Congress on evolutionary acquisition of major 
           defense acquisition programs.
Sec. 803. Spiral development under major defense acquisition programs.
Sec. 804. Improvement of software acquisition processes.
Sec. 805. Performance goals for procuring services pursuant to multiple 
           award contracts.
Sec. 806. Rapid acquisition and deployment procedures.
Sec. 807. Quick-reaction special projects acquisition team.

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

Sec. 811. Limitation period for task and delivery order contracts.
Sec. 812. One-year extension of program applying simplified procedures 
           to certain commercial items; report.
Sec. 813. Extension and improvement of personnel demonstration policies 
           and procedures applicable to the civilian acquisition 
           workforce.
Sec. 814. Past performance given significant weight in renewal of 
           procurement technical assistance cooperative agreements.
Sec. 815. Increased maximum amount of assistance for tribal 
           organizations or economic enterprises carrying out 
           procurement technical assistance programs in two or more 
           service areas.
Sec. 816. Extension of contract goal for small disadvantaged businesses 
           and certain institutions of higher education.
Sec. 817. Grants of exceptions to cost or pricing data certification 
           requirements and waivers of cost accounting standards.
Sec. 818. Timing of certification in connection with waiver of 
           survivability and lethality testing requirements.
Sec. 819. Contracting with Federal Prison Industries.
Sec. 820. Revisions to multiyear contracting authority.

        Subtitle C--Acquisition-Related Reports and Other Matters

Sec. 821. Evaluation of training, knowledge, and resources regarding 
           negotiation of intellectual property arrangements.
Sec. 822. Independent technology readiness assessments.
Sec. 823. Extension and amendment of requirement for annual report on 
           defense commercial pricing management improvement.
Sec. 824. Assessment of purchases of products and services through 
           contracts with other Federal departments and agencies.
Sec. 825. Repeal of certain requirements and Comptroller General reviews 
           of the requirements.
Sec. 826. Multiyear procurement authority for purchase of dinitrogen 
           tetroxide, hydrazine, and hydrazine-related products.
Sec. 827. Multiyear procurement authority for environmental services for 
           military installations.
Sec. 828. Report on effects of Army Contracting Agency.
Sec. 829. Authorization to take actions to correct the industrial 
           resource shortfall for radiation-hardened electronics.

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

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

Sec. 901. Under Secretary of Defense for Intelligence.

[[Page 116 STAT. 2466]]

Sec. 902. Reorganization of Office of Secretary of Defense for 
           administration of duties relating to homeland defense and 
           combating terrorism.

                      Subtitle B--Space Activities

Sec. 911. Oversight of acquisition for defense space programs.
Sec. 912. Report regarding assured access to space for the United 
           States.

                           Subtitle C--Reports

Sec. 921. Report on establishment of United States Northern Command.
Sec. 922. Time for submittal of report on Quadrennial Defense Review.
Sec. 923. National defense mission of Coast Guard to be included in 
           future Quadrennial Defense Reviews.
Sec. 924. Report on establishment of a Joint National Training Complex 
           and joint opposing forces.

                        Subtitle D--Other Matters

Sec. 931. Authority to accept gifts for National Defense University.
Sec. 932. Western Hemisphere Institute for Security Cooperation.
Sec. 933. Conforming amendment to reflect disestablishment of Department 
           of Defense Consequence Management Program Integration Office.
Sec. 934. Increase in number of Deputy Commandants of the Marine Corps.

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Authorization of supplemental appropriations for fiscal year 
           2002.
Sec. 1003. United States contribution to NATO common-funded budgets in 
           fiscal year 2003.
Sec. 1004. Development and implementation of financial management 
           enterprise architecture.
Sec. 1005. Accountable officials in the Department of Defense.
Sec. 1006. Uniform standards throughout Department of Defense for 
           exposure of personnel to pecuniary liability for loss of 
           Government property.
Sec. 1007. Improvements in purchase card management.
Sec. 1008. Improvements in travel card management.
Sec. 1009. Clearance of certain transactions recorded in Treasury 
           suspense accounts and resolution of certain check issuance 
           discrepancies.
Sec. 1010. Authorization of funds for ballistic missile defense programs 
           or combating terrorism programs of the Department of Defense.
Sec. 1011. Reduction in overall authorization due to inflation savings.

                 Subtitle B--Naval Vessels and Shipyards

Sec. 1021. Number of Navy combatant surface vessels in active and 
           reserve service.
Sec. 1022. Annual long-range plan for the construction of naval vessels.
Sec. 1023. Assessment of the feasibility of the expedited equipping of a 
           Navy ship with a version of the 155-millimeter Advanced Gun 
           System.
Sec. 1024. Report on initiatives to increase operational days of Navy 
           ships.
Sec. 1025. Ship combat system industrial base.
Sec. 1026. Sense of Congress concerning aircraft carrier force 
           structure.
Sec. 1027. Conveyance, Navy drydock, Portland, Oregon.

                      Subtitle C--Strategic Matters

Sec. 1031. Strategic force structure plan for nuclear weapons and 
           delivery systems.
Sec. 1032. Annual report on weapons to defeat hardened and deeply buried 
           targets.
Sec. 1033. Report on effects of nuclear earth-penetrator weapon and 
           other weapons.

                           Subtitle D--Reports

Sec. 1041. Repeal and modification of various reporting requirements 
           applicable to the Department of Defense.
Sec. 1042. Requirement that Department of Defense reports to Congress be 
           accompanied by electronic version.
Sec. 1043. Annual report on the conduct of military operations conducted 
           as part of Operation Enduring Freedom.
Sec. 1044. Report on efforts to ensure adequacy of fire fighting staffs 
           at military installations.
Sec. 1045. Report on designation of certain Louisiana highway as Defense 
           Access Road.

              Subtitle E--Extension of Expiring Authorities

Sec. 1051. Extension of authority for Secretary of Defense to sell 
           aircraft and aircraft parts for use in responding to oil 
           spills.

[[Page 116 STAT. 2467]]

Sec. 1052. Six-month extension of expiring Governmentwide information 
           security requirements; continued applicability of expiring 
           Governmentwide information security requirements to the 
           Department of Defense.
Sec. 1053. Two-year extension of authority of the Secretary of Defense 
           to engage in commercial activities as security for 
           intelligence collection activities abroad.

                        Subtitle F--Other Matters

Sec. 1061. Time for transmittal of annual defense authorization 
           legislative proposal.
Sec. 1062. Technical and clerical amendments.
Sec. 1063. Use for law enforcement purposes of DNA samples maintained by 
           Department of Defense for identification of human remains.
Sec. 1064. Enhanced authority to obtain foreign language services during 
           periods of emergency.
Sec. 1065. Rewards for assistance in combating terrorism.
Sec. 1066. Provision of space and services to military welfare 
           societies.
Sec. 1067. Prevention and mitigation of corrosion of military equipment 
           and infrastructure.
Sec. 1068. Transfer of historic DF-9E Panther aircraft to Women Airforce 
           Service Pilots Museum.
Sec. 1069. Increase in amount authorized to be expended for Department 
           of Defense program to commemorate 50th anniversary of the 
           Korean War.

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Sec. 1101. Eligibility of Department of Defense nonappropriated fund 
           employees for long-term care insurance.
Sec. 1102. Extension of Department of Defense authority to make lump-sum 
           severance payments.
Sec. 1103. Continuation of Federal Employee Health Benefits Program 
           eligibility.
Sec. 1104. Certification for Department of Defense professional 
           accounting positions.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

Sec. 1201. Authority to provide administrative services and support for 
           coalition liaison officers.
Sec. 1202. Authority to pay for certain travel of defense personnel of 
           countries participating in NATO Partnership for Peace 
           program.
Sec. 1203. Limitation on funding for Joint Data Exchange Center in 
           Moscow.
Sec. 1204. Support of United Nations-sponsored efforts to inspect and 
           monitor Iraqi weapons activities.
Sec. 1205. Comprehensive annual report to Congress on coordination and 
           integration of all United States nonproliferation activities.
Sec. 1206. Report requirement regarding Russian proliferation to Iran 
           and other countries of proliferation concern.
Sec. 1207. Monitoring of implementation of 1979 agreement between the 
           United States and China on cooperation in science and 
           technology.
Sec. 1208. Extension of certain counterproliferation activities and 
           programs.
Sec. 1209. Semiannual report by Director of Central Intelligence on 
           contributions by foreign persons to efforts by countries of 
           proliferation concern to obtain weapons of mass destruction 
           and their delivery systems.
Sec. 1210. Report on feasibility and advisability of senior officer 
           exchanges between the Armed Forces of the United States and 
           the military forces of Taiwan.
Sec. 1211. Report on United States force structure in the Pacific.

   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. Prohibition against use of funds until submission of reports.
Sec. 1304. Report on use of revenue generated by activities carried out 
           under Cooperative Threat Reduction programs.
Sec. 1305. Prohibition against use of funds for second wing of fissile 
           material storage facility.
Sec. 1306. Limited waiver of restrictions on use of funds for threat 
           reduction in states of the former Soviet Union.

                      TITLE XIV--HOMELAND SECURITY

Sec. 1401. Transfer of technology items and equipment in support of 
           homeland security.

[[Page 116 STAT. 2468]]

Sec. 1402. Comprehensive plan for improving the preparedness of military 
           installations for terrorist incidents.
Sec. 1403. Additional Weapons of Mass Destruction Civil Support Teams.
Sec. 1404. Report on the role of the Department of Defense in supporting 
           homeland security.
Sec. 1405. Sense of Congress on Department of Defense assistance to 
           local first responders.

   TITLE XV--AUTHORIZATION OF APPROPRIATIONS FOR THE WAR ON TERRORISM

Sec. 1501. Authorization of appropriations for continued operations for 
           the war on terrorism.
Sec. 1502. Mobilization and personnel.
Sec. 1503. Operations.
Sec. 1504. Equipment replacement and enhancement.
Sec. 1505. Classified activities.
Sec. 1506. Procurement of munitions.
Sec. 1507. Discretionary restoration of authorizations of appropriations 
           reduced for management efficiencies.
Sec. 1508. General provisions applicable to transfers.

            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 
           2002 projects.
Sec. 2106. Modification of authority to carry out certain fiscal year 
           2001 project.

                            TITLE XXII--NAVY

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

                         TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition 
           projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Authority for use of military construction funds for 
           construction of public road near Aviano Air Base, Italy, to 
           replace road closed for force protection purposes.

                      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.
Sec. 2405. Modification of authority to carry out certain fiscal year 
           2000 project.
Sec. 2406. Modification of authority to carry out certain fiscal year 
           1999 project.
Sec. 2407. Modification of authority to carry out certain fiscal year 
           1997 project.

   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.

[[Page 116 STAT. 2469]]

Sec. 2702. Extension of authorizations of certain fiscal year 2000 
           projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1999 
           projects.

                    TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Lease of military family housing in Korea.
Sec. 2802. Modification of alternative authority for acquisition and 
           improvement of military housing.
Sec. 2803. Pilot housing privatization authority for acquisition or 
           construction of military unaccompanied housing.
Sec. 2804. Repeal of source requirements for family housing construction 
           overseas.
Sec. 2805. Availability of energy cost savings realized at military 
           installations.

         Subtitle B--Real Property and Facilities Administration

Sec. 2811. Agreements to limit encroachments and other constraints on 
           military training, testing, and operations.
Sec. 2812. Conveyance of surplus real property for natural resource 
           conservation purposes.
Sec. 2813. Modification of demonstration program on reduction in long-
           term facility maintenance costs.
Sec. 2814. Expanded authority to transfer property at military 
           installations to be closed to persons who construct or 
           provide military family housing.

                      Subtitle C--Land Conveyances

                        Part I--Army Conveyances

Sec. 2821. Transfer of jurisdiction, Fort McClellan, Alabama, to 
           establish Mountain Longleaf National Wildlife Refuge.
Sec. 2822. Land conveyances, lands in Alaska no longer required for 
           National Guard purposes.
Sec. 2823. Land conveyance, Sunflower Army Ammunition Plant, Kansas.
Sec. 2824. Land conveyances, Bluegrass Army Depot, Richmond, Kentucky.
Sec. 2825. Land conveyance, Fort Campbell, Kentucky.
Sec. 2826. Land conveyance, Army Reserve Training Center, Buffalo, 
           Minnesota.
Sec. 2827. Land conveyance, Fort Monmouth, New Jersey.
Sec. 2828. Land conveyance, Fort Bliss, Texas.
Sec. 2829. Land conveyance, Fort Hood, Texas.
Sec. 2830. Land conveyances, Engineer Proving Ground, Fort Belvoir, 
           Virginia.

                        Part II--Navy Conveyances

Sec. 2831. Land conveyance, Marine Corps Air Station, Miramar, San 
           Diego, California.
Sec. 2832. Modification of authority for land transfer and conveyance, 
           Naval Security Group Activity, Winter Harbor, Maine.
Sec. 2833. Land conveyance, Westover Air Reserve Base, Massachusetts.
Sec. 2834. Land conveyance, Naval Station, Newport, Rhode Island.
Sec. 2835. Land exchange and boundary adjustments, Marine Corps Base, 
           Quantico, and Prince William Forest Park, Virginia.

                     Part III--Air Force Conveyances

Sec. 2841. Modification of land conveyance, Los Angeles Air Force Base, 
           California.
Sec. 2842. Land exchange, Buckley Air Force Base, Colorado.
Sec. 2843. Land conveyances, Wendover Air Force Base Auxiliary Field, 
           Nevada.

                        Subtitle D--Other Matters

Sec. 2851. Master plan for use of Navy Annex, Arlington, Virginia.
Sec. 2852. Sale of excess treated water and wastewater treatment 
           capacity, Marine Corps Base, Camp Lejeune, North Carolina.
Sec. 2853. Conveyance of real property, Adak Naval Complex, Alaska, and 
           related land conveyances.
Sec. 2854. Special requirement for adding military installation to 
           closure list.

[[Page 116 STAT. 2470]]

 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. 3141. Annual assessments and reports to the President and Congress 
           regarding the condition of the United States nuclear weapons 
           stockpile.
Sec. 3142. Plans for achieving enhanced readiness posture for resumption 
           by the United States of underground nuclear weapons tests.
Sec. 3143. Requirements for specific request for new or modified nuclear 
           weapons.
Sec. 3144. Database to track notification and resolution phases of 
           Significant Finding Investigations.
Sec. 3145. Defense environmental management cleanup reform program.
Sec. 3146. Limitation on obligation of funds for Robust Nuclear Earth 
           Penetrator program pending submission of report.

                    Subtitle C--Proliferation Matters

Sec. 3151. Transfer to National Nuclear Security Administration of 
           Department of Defense's Cooperative Threat Reduction program 
           relating to elimination of weapons grade plutonium production 
           in Russia.
Sec. 3152. Repeal of requirement for reports on obligation of funds for 
           programs on fissile materials in Russia.
Sec. 3153. Expansion of annual reports on status of nuclear materials 
           protection, control, and accounting programs.
Sec. 3154. Testing of preparedness for emergencies involving nuclear, 
           radiological, chemical, or biological weapons.
Sec. 3155. Cooperative program on research, development, and 
           demonstration of technology regarding nuclear or radiological 
           terrorism.
Sec. 3156. Matters relating to the International Materials Protection, 
           Control, and Accounting program of the Department of Energy.
Sec. 3157. Accelerated disposition of highly enriched uranium.
Sec. 3158. Strengthened international security for nuclear materials and 
           security of nuclear operations.
Sec. 3159. Export control programs.
Sec. 3160. Plan for accelerated return of weapons-usable nuclear 
           materials.
Sec. 3161. Sense of Congress on amendment of Convention on Physical 
           Protection of Nuclear Materials.
Sec. 3162. Sense of Congress on program to secure stockpiles of highly 
           enriched uranium and plutonium.

                        Subtitle D--Other Matters

Sec. 3171. Indemnification of Department of Energy contractors.
Sec. 3172. Support for public education in the vicinity of Los Alamos 
           National Laboratory, New Mexico.
Sec. 3173. Worker health and safety rules for Department of Energy 
           nuclear facilities.
Sec. 3174. Extension of authority to appoint certain scientific, 
           engineering, and technical personnel.
Sec. 3175. One-year extension of panel to assess the reliability, 
           safety, and security of the United States nuclear stockpile.
Sec. 3176. Report on status of environmental management initiatives to 
           accelerate the reduction of environmental risks and 
           challenges posed by the legacy of the Cold War.

 Subtitle E--Disposition of Weapons-Usable Plutonium at Savannah River, 
                             South Carolina

Sec. 3181. Findings.
Sec. 3182. Disposition of weapons-usable plutonium at Savannah River 
           Site.
Sec. 3183. Study of facilities for storage of plutonium and plutonium 
           materials at Savannah River Site.

[[Page 116 STAT. 2471]]

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Authorized uses of National Defense Stockpile funds.

                  TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

                   TITLE XXXV--MARITIME ADMINISTRATION

Sec. 3501. Authorization of appropriations for fiscal year 2003.
Sec. 3502. Authority to convey vessel USS SPHINX (ARL-24).
Sec. 3503. Independent analysis of title XI insurance guarantee 
           applications.
Sec. 3504. Preparation as artificial reefs and scrapping of obsolete 
           vessels.

              TITLE XXXVI--ATOMIC ENERGY DEFENSE PROVISIONS

Sec. 3601. Short title.

                         Subtitle A--[Reserved]

   Subtitle B--Department of Energy National Security Authorizations 
                           General Provisions

Sec. 3620. Definitions.
Sec. 3621. Reprogramming.
Sec. 3622. Minor construction projects.
Sec. 3623. Limits on construction projects.
Sec. 3624. Fund transfer authority.
Sec. 3625. Conceptual and construction design.
Sec. 3626. Authority for emergency planning, design, and construction 
           activities.
Sec. 3627. Scope of authority to carry out plant projects.
Sec. 3628. Availability of funds.
Sec. 3629. Transfer of defense environmental management funds.
Sec. 3630. Transfer of weapons activities funds.
Sec. 3631. Funds available for all national security programs of the 
           Department of Energy.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Defense Inspector General.
Sec. 106. Chemical Agents and Munitions Destruction, Defense.
Sec. 107. Defense health programs.

                        Subtitle B--Army Programs

Sec. 111. Pilot program on sales of manufactured articles and services 
           of certain Army industrial facilities without regard to 
           availability from domestic sources.
Sec. 112. Report on impact of Army aviation modernization plan on the 
           Army National Guard.

[[Page 116 STAT. 2472]]

Sec. 113. Family of Medium Tactical Vehicles.

                        Subtitle C--Navy Programs

Sec. 121. Extension of multiyear procurement authority for DDG-51 class 
           destroyers.
Sec. 122. Sense of Congress on scope of conversion program for 
           Ticonderoga-class cruisers.
Sec. 123. Continuation of contract for operation of Champion-class T-5 
           fuel tanker vessels.

                     Subtitle D--Air Force Programs

Sec. 131. Multiyear procurement authority for C-130J aircraft program.
Sec. 132. Pathfinder programs.
Sec. 133. Leases for tanker aircraft under multiyear aircraft-lease 
           pilot program.

                       Subtitle E--Other Programs

Sec. 141. Destruction of existing stockpile of lethal chemical agents 
           and munitions.
Sec. 142. Report on unmanned aerial vehicle systems.
Sec. 143. Global Information Grid system.

               Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 2003 
for procurement for the Army as follows:
            (1) For aircraft, $2,186,296,000.
            (2) For missiles, $1,152,299,000.
            (3) For weapons and tracked combat vehicles, $2,276,751,000.
            (4) For ammunition, $1,229,533,000.
            (5) For other procurement, $5,857,814,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated for fiscal 
year 2003 for procurement for the Navy as follows:
            (1) For aircraft, $8,979,275,000.
            (2) For weapons, including missiles and torpedoes, 
        $2,375,349,000.
            (3) For shipbuilding and conversion, $9,111,023,000.
            (4) For other procurement, $4,494,754,000.

    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 2003 for procurement for the Marine Corps in the amount 
of $1,355,491,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized 
to be appropriated for fiscal year 2003 for procurement of ammunition 
for the Navy and the Marine Corps in the amount of $1,170,750,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 2003 
for procurement for the Air Force as follows:
            (1) For aircraft, $12,676,505,000.
            (2) For missiles, $3,504,139,000.
            (3) For ammunition, $1,290,764,000.
            (4) For other procurement, $10,846,048,000.

[[Page 116 STAT. 2473]]

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 2003 
for Defense-wide procurement in the amount of $3,691,604,000.

SEC. 105. DEFENSE INSPECTOR GENERAL.

    Funds are hereby authorized to be appropriated for fiscal year 2003 
for procurement for the Inspector General of the Department of Defense 
in the amount of $2,000,000.

SEC. 106. CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, DEFENSE.

    There is hereby authorized to be appropriated for fiscal year 2003 
the amount of $1,490,199,000 for--
            (1) 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
            (2) the destruction of chemical warfare materiel of the 
        United States that is not covered by section 1412 of such Act.

SEC. 107. DEFENSE HEALTH PROGRAMS.

    Funds are hereby authorized to be appropriated for fiscal year 2003 
for the Department of Defense for procurement for carrying out health 
care programs, projects, and activities of the Department of Defense in 
the total amount of $278,742,000.

                        Subtitle B--Army Programs

SEC. 111. PILOT PROGRAM ON SALES OF MANUFACTURED ARTICLES AND SERVICES 
            OF CERTAIN ARMY INDUSTRIAL FACILITIES WITHOUT REGARD TO 
            AVAILABILITY FROM DOMESTIC SOURCES.

    (a) Extension of Program.--Subsection (a) of section 141 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 2002'' in the 
first sentence and inserting ``through 2004''.
    (b) Use of Overhead Funds Made Surplus by Sales.--Such section is 
further amended--
            (1) by striking subsection (d);
            (2) by redesignating subsection (c) as subsection (d); and
            (3) by inserting after subsection (b) the following new 
        subsection (c):

    ``(c) Transfer of Certain Sums.--For each Army industrial facility 
participating in the pilot program that sells manufactured articles and 
services in a total amount in excess of $20,000,000 in any fiscal year, 
the amount equal to one-half of one percent of such total amount shall 
be transferred from the sums in the Army Working Capital Fund for 
unutilized plant capacity to appropriations available for the following 
fiscal year for the demilitarization of conventional ammunition by the 
Army.''.
    (c) Update <<NOTE: Deadline. Reports. 10 USC 4543 note.>> of 
Inspector General's Review.--The Inspector General of the Department of 
Defense shall review the experience under the pilot program carried out 
under such section 141 and, not later than July 1, 2003, submit to 
Congress a report on the results of the review. The report shall contain 
the views, information, and recommendations called for under subsection 
(d) of such

[[Page 116 STAT. 2474]]

section (as redesignated by subsection (b)(2)). In carrying out the 
review and preparing the report, the Inspector General shall take into 
consideration the report submitted to Congress under such subsection (as 
so redesignated).

SEC. 112. REPORT ON IMPACT OF ARMY AVIATION MODERNIZATION PLAN ON THE 
            ARMY NATIONAL GUARD.

    (a) Report by Chief of the National Guard Bureau.--The Chief of the 
National Guard Bureau shall submit to the Chief of Staff of the Army a 
report on the requirements for Army National Guard aviation. The report 
shall include the following:
            (1) An analysis of the impact of the Army Aviation 
        Modernization Plan on the ability of the Army National Guard to 
        conduct its aviation missions.
            (2) The plan under that aviation modernization plan for the 
        transfer of aircraft from the active component of the Army to 
        the Army reserve components, including a timeline for those 
        transfers.
            (3) The progress, as of January 1, 2003, in carrying out the 
        transfers under the plan referred to in paragraph (2).
            (4) An evaluation of the suitability and cost effectiveness 
        of existing Commercial Off The Shelf light utility helicopters 
        for performance of Army National Guard utility aviation 
        missions.

    (b) Comments and Recommendations by Chief of Staff of the Army.--Not 
later than <<NOTE: Deadline.>> February 1, 2003, the Chief of Staff 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 the 
report received under subsection (a), together with any comments and 
recommendations that the Chief of Staff considers appropriate on the 
matters covered in the report.

SEC. 113. FAMILY OF MEDIUM TACTICAL VEHICLES.

    (a) Multiyear Procurement Authority.--Beginning with the fiscal year 
2003 program year, the Secretary of the Army may, in accordance with 
section 2306b of title 10, United States Code, enter into a multiyear 
contract for the procurement of vehicles under the Family of Medium 
Tactical Vehicles program, subject to subsection (b).
    (b) Limitation.--The Secretary of the Army may not enter into a 
multiyear contract for the procurement of vehicles in the Family of 
Medium Tactical Vehicles authorized by subsection (a) until the 
Secretary submits to the congressional defense committees a written 
certification that--
            (1) all key performance parameters required in the initial 
        operational test and evaluation for that program have been met; 
        and
            (2) the total cost through the use of such multiyear 
        contract of the procurement of the number of vehicles to be 
        procured under such contract is at least 10 percent less than 
        the total cost of the procurement of the same number of such 
        vehicles through the use of successive one-year contracts.

    (c) Waiver Authority.--The Secretary of Defense may waive subsection 
(b)(2) if the Secretary--
            (1) determines that using a multiyear contract for the 
        procurement of vehicles under the Family of Medium Tactical 
        Vehicles program is in the national security interests of the 
        United States;

[[Page 116 STAT. 2475]]

            (2) certifies that the Army cannot achieve the savings 
        specified in subsection (b)(2); and
            (3) submits to the congressional defense committees, in 
        writing, a notification of the waiver together with a report 
        describing the reasons why the use of a multiyear contract for 
        such procurement is in the national security interests of the 
        United States and why the Army cannot achieve a 10 percent 
        savings of the total anticipated costs of carrying out the 
        program through a multiyear contract.

                        Subtitle C--Navy Programs

SEC. 121. EXTENSION OF MULTIYEAR PROCUREMENT AUTHORITY FOR DDG-51 CLASS 
            DESTROYERS.

    Section 122(b) of the National Defense Authorization Act for Fiscal 
Year 1997 (Public Law 104-201; 110 Stat. 2446), as amended by section 
122 of Public Law 106-65 (113 Stat. 534) and section 122(a) 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-24), is further 
amended by striking ``October 1, 2005'' in the first sentence and 
inserting ``October 1, 2007''.

SEC. 122. SENSE OF CONGRESS ON SCOPE OF CONVERSION PROGRAM FOR 
            TICONDEROGA-CLASS CRUISERS.

    It is the sense of Congress that the Secretary of the Navy should 
maintain the scope of the conversion program for the Ticonderoga class 
of cruisers so that the program--
            (1) covers all 27 ships in that class of cruisers; and
            (2) provides for modernizing each of those ships to include 
        an appropriate mix of upgrades to ships' capabilities for 
        theater missile defense, naval fire support, and air dominance.

SEC. 123. CONTINUATION OF CONTRACT FOR OPERATION OF CHAMPION-CLASS T-5 
            FUEL TANKER VESSELS.

    The Department of the Navy contract in effect on the date of the 
enactment of this Act for the operation of five Champion-class T-5 fuel 
tanker vessels shall continue in effect with respect to the operation of 
each such vessel until the completion of the term of the contract or, if 
sooner for any such vessel, until the vessel is no longer used for 
purposes of the Military Sealift Command or any other Navy purpose.

                     Subtitle D--Air Force Programs

SEC. 131. MULTIYEAR PROCUREMENT AUTHORITY FOR C-130J AIRCRAFT PROGRAM.

    (a) Multiyear Authority.--Beginning with the fiscal year 2003 
program year, the Secretary of the Air Force may, in accordance with 
section 2306b of title 10, United States Code, enter into a multiyear 
contract for procurement of up to 40 C-130J aircraft in the CC-130J 
configuration and up to 24 C-130J aircraft in the KC-130J configuration. 
Notwithstanding subsection (k) of such section, such a contract may be 
for a period of six program years.
    (b) Limitation.--The Secretary of the Air Force may not enter into a 
contract authorized by subsection (a) until--

[[Page 116 STAT. 2476]]

            (1) testing of the CC-130J aircraft for qualification for 
        use in assault operations has been completed by the Air Force 
        Flight Test Center; and
            (2) Block 5.3 software upgrades have been installed on all 
        C-130J and CC-130J aircraft in the inventory of the Air Force.

SEC. 132. PATHFINDER PROGRAMS.

    (a) Pathfinder <<NOTE: Deadline. Records.>> Programs.--Not later 
than February 1, 2003, the Secretary of the Air Force shall submit to 
the congressional defense committees a list of Air Force programs that 
the Secretary has designated as acquisition reform pathfinder programs 
(hereinafter in this section referred to as ``pathfinder programs'').

    (b) Oversight of Pathfinder Programs.--The Secretary of Defense 
shall ensure that the Under Secretary of Defense for Acquisition, 
Technology and Logistics, the Director of Operational Test and 
Evaluation, and the Joint Requirements Oversight Council maintain 
oversight over each pathfinder program that qualifies as a major defense 
acquisition program under section 2430 of title 10, United States Code.
    (c) Report <<NOTE: Deadline.>> on Pathfinder Programs.--(1) Not 
later than March 15, 2003, the Secretary of the Air Force shall submit 
to the congressional defense committees a report on pathfinder programs. 
For each such program, the report shall include a description of the 
following:
            (A) The management approach for that program and how that 
        approach will result in a disciplined, affordable and well-
        managed acquisition program.
            (B) The acquisition strategy for that program and how that 
        acquisition strategy responds to approved operational 
        requirements.
            (C) The test and evaluation plan for that program and how 
        that plan will provide adequate assessment of each pathfinder 
        program.
            (D) The manner in which the acquisition plan for that 
        program considers cost, schedule, and technical risk.
            (E) The manner in which any innovative business practices 
        developed as a result of participation in the program could be 
        applied to other acquisition programs, and any impediments to 
        application of such practices to other programs.

    (2) For each such program, the report shall also set forth the 
following:
            (A) The manner in which the Under Secretary of Defense for 
        Acquisition, Technology, and Logistics will be involved in the 
        development, oversight, and approval of the program's management 
        approach, acquisition strategy, and acquisition approach.
            (B) The manner in which the Director of Operational Test and 
        Evaluation will be involved in the development, oversight, and 
        approval of the program's test and evaluation plan.
            (C) The manner in which an independent cost estimate for the 
        program will be developed by the Office of the Secretary of 
        Defense.

    (d) Applicability of Spiral Development Section.--Nothing in this 
section shall be construed to exempt any pathfinder program from the 
application of any provision of section 803(c).

[[Page 116 STAT. 2477]]

SEC. 133. <<NOTE: 10 USC 2401a note.>> LEASES FOR TANKER AIRCRAFT UNDER 
            MULTIYEAR AIRCRAFT-LEASE PILOT PROGRAM.

    The Secretary of the Air Force may not enter into a lease for the 
acquisition of tanker aircraft for the Air Force under section 8159 of 
the Department of Defense Appropriations Act, 2002 (division A of Public 
Law 107-117; 115 Stat. 2284; 10 U.S.C. 2401a note) until--
            (1) the Secretary submits the report specified in subsection 
        (c)(6) of such section; and
            (2) either--
                    (A) authorization and appropriation of funds 
                necessary to enter into such lease are provided by law; 
                or
                    (B) a new start reprogramming notification for the 
                funds necessary to enter into such lease has been 
                submitted in accordance with established procedures.

                       Subtitle E--Other Programs

SEC. 141. <<NOTE: 50 USC 1521a.>> DESTRUCTION OF EXISTING STOCKPILE OF 
            LETHAL CHEMICAL AGENTS AND MUNITIONS.

    (a) Program Management.--The Secretary of Defense shall ensure that 
the program for destruction of the United States stockpile of lethal 
chemical agents and munitions is managed as a major defense acquisition 
program (as defined in section 2430 of title 10, United States Code) in 
accordance with the essential elements of such programs as may be 
determined by the Secretary.
    (b) Requirement for Under Secretary of Defense (Comptroller) Annual 
Certification.--Beginning with respect to the budget request for fiscal 
year 2004, the Under Secretary of Defense (Comptroller) shall submit to 
the congressional defense committees on an annual basis a certification 
that the budget request for the chemical agents and munitions 
destruction program has been submitted in accordance with the 
requirements of section 1412 of the Department of Defense Authorization 
Act, 1986 (50 U.S.C. 1521).

SEC. 142. REPORT ON UNMANNED AERIAL VEHICLE SYSTEMS.

    (a) Report.--Not <<NOTE: Deadline.>> later than January 1, 2003, the 
Secretary of Defense shall submit to Congress a report on unmanned 
aerial vehicle systems of the Department of Defense.

    (b) Matters To Be Included Concerning Unmanned Aerial Vehicle 
Systems.--The Secretary shall include in the report under subsection (a) 
the following, shown for each system referred to in that subsection:
            (1) A description of the infrastructure that the Department 
        of Defense has (or is planning) for the system.
            (2) A description of the operational requirements document 
        (ORD) for the system.
            (3) A description of the physical infrastructure of the 
        Department for training and basing.
            (4) A description of the manner in which the Department is 
        interfacing with the industrial base.
            (5) A description of the acquisition plan for the system.
            (6) A description of the process by which the Department 
        will ensure that any unmanned aerial vehicle program proceeding 
        past the science and technology stage does so only

[[Page 116 STAT. 2478]]

        as part of an integrated, overall Office of the Secretary of 
        Defense strategy for acquisition of unmanned aerial vehicles, 
        such as that provided in the approved Office of the Secretary of 
        Defense unmanned aerial vehicle roadmap.

    (c) Suggestions for Changes in Law.--The Secretary shall also 
include in the report under subsection (a) such suggestions as the 
Secretary considers appropriate for changes in law that would facilitate 
the way the Department acquires unmanned aerial vehicle systems.

SEC. 143. GLOBAL INFORMATION GRID SYSTEM.

    None of the funds authorized to be appropriated by this Act for the 
Department of Defense system known as the Global Information Grid may be 
obligated until the Secretary of Defense submits to the congressional 
defense committees a plan to provide that, as part of the bandwidth 
expansion efforts for the system, the system will be designed and 
configured so as to ensure that information transmitted within the 
system is secure and protected from unauthorized access.

          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.
Sec. 203. Defense health programs.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. RAH-66 Comanche aircraft program.
Sec. 212. Extension of requirements relating to management 
           responsibility for naval mine countermeasures programs.
Sec. 213. Revised requirements for plan for Manufacturing Technology 
           Program.
Sec. 214. Advanced SEAL Delivery System.
Sec. 215. Army experimentation program regarding design of the objective 
           force.
Sec. 216. Program to provide Army with self-propelled Future Combat 
           Systems non-line-of-sight cannon indirect fire capability for 
           the objective force.
Sec. 217. Prohibition on transfer of Medical Free Electron Laser 
           program.
Sec. 218. Littoral combat ship program.

                  Subtitle C--Ballistic Missile Defense

Sec. 221. Report requirements relating to ballistic missile defense 
           programs.
Sec. 222. Responsibility of Missile Defense Agency for research, 
           development, test, and evaluation related to system 
           improvements of programs transferred to military departments.
Sec. 223. Limitation on obligation of funds for Theater High Altitude 
           Area Defense Program pending submission of required life-
           cycle cost information.
Sec. 224. Provision of information on flight testing of Ground-based 
           Midcourse National Missile Defense system.
Sec. 225. References to new name for Ballistic Missile Defense 
           Organization.
Sec. 226. One-year limitation on use of funds for nuclear armed 
           interceptors.

   Subtitle D--Improved Management of Department of Defense Test and 
                          Evaluation Facilities

Sec. 231. Department of Defense Test Resource Management Center.
Sec. 232. Objective for institutional funding of test and evaluation 
           facilities.
Sec. 233. Uniform financial management system for Department of Defense 
           test and evaluation facilities.
Sec. 234. Test and evaluation workforce improvements.
Sec. 235. Compliance with testing requirements.

                        Subtitle E--Other Matters

Sec. 241. Pilot programs for revitalizing Department of Defense 
           laboratories.

[[Page 116 STAT. 2479]]

Sec. 242. Technology Transition Initiative.
Sec. 243. Defense Acquisition Challenge Program.
Sec. 244. Encouragement of small businesses and nontraditional defense 
           contractors to submit proposals potentially beneficial for 
           combating terrorism.
Sec. 245. Vehicle fuel cell program.
Sec. 246. Defense nanotechnology research and development program.
Sec. 247. Activities of the Defense Experimental Program to Stimulate 
           Competitive Research.
Sec. 248. Four-year extension of authority of DARPA to award prizes for 
           advanced technology achievements and additional authority of 
           military departments and Defense Agencies to award prizes for 
           achievements in promoting education.
Sec. 249. Plan for five-year program for enhancement of measurement and 
           signatures intelligence capabilities of the United States 
           through incorporation of results of basic research on 
           sensors.

               Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 2003 
for the use of the Department of Defense for research, development, 
test, and evaluation as follows:
            (1) For the Army, $7,158,256,000.
            (2) For the Navy, $13,244,164,000.
            (3) For the Air Force, $18,337,078,000.
            (4) For Defense-wide activities, $17,970,653,000, of which 
        $311,554,000 is authorized for the Director of Operational Test 
        and Evaluation.

SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY.

    (a) Fiscal Year 2003.--Of the amounts authorized to be appropriated 
by section 201, $10,384,658,000 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.

SEC. 203. DEFENSE HEALTH PROGRAMS.

    Funds are hereby authorized to be appropriated for fiscal year 2003 
for the Department of Defense for research, development, test, and 
evaluation for carrying out health care programs, projects, and 
activities of the Department of Defense in the total amount of 
$67,214,000.

     Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. RAH-66 COMANCHE AIRCRAFT PROGRAM.

    (a) Reports <<NOTE: Deadline. Reports.>> Required.--Not later than 
the end of each fiscal quarter of fiscal year 2003, 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 



[[Page 116 STAT. 2480]]

on the progress of the restructured engineering and manufacturing 
development phase of the RAH-66 Comanche aircraft program.
    (b) Content.--The report shall include, at a minimum, the 
information relating to the program that the program manager provides to 
the Assistant Secretary of the Army for Acquisition, Logistics, and 
Technology with respect to--
            (1) cost, including funding and contracts;
            (2) schedule;
            (3) performance;
            (4) which goals are being met and which are not being met;
            (5) milestones events accomplished; and
            (6) significant events accomplished.

SEC. 212. EXTENSION OF REQUIREMENTS RELATING TO MANAGEMENT 
            RESPONSIBILITY FOR NAVAL MINE COUNTERMEASURES PROGRAMS.

    (a) In General.--Section 216 of the National Defense Authorization 
Act for Fiscal Years 1992 and 1993 (Public Law 102-190; 105 Stat. 1317), 
as most recently amended by section 211 of the Strom Thurmond National 
Defense Authorization Act for Fiscal Year 1999 (Public Law 105-261; 112 
Stat. 1946), is amended--
            (1) in subsection (a), by striking ``through 2003'' and 
        inserting ``through 2008'';
            (2) in subsection (b)--
                    (A) by striking ``and'' at the end of paragraph (2);
                    (B) by redesignating paragraph (3) as paragraph (4); 
                and
                    (C) by inserting after paragraph (2) the following 
                new paragraph:
            ``(3) the responsibilities of the Joint Requirements 
        Oversight Council under subsections (b) and (d) of section 181 
        of title 10, United States Code, have been carried out with 
        respect to the updated mine countermeasures master plan, the 
        budget resources for mine countermeasures for that fiscal year, 
        and the future years defense program for mine countermeasures; 
        and''; and
            (3) by adding at the end the following new subsection:

    ``(c) Notification of Proposed Changes.--Upon certifying under 
subsection (b) with respect to a fiscal year, the Secretary may not 
carry out any change to the naval mine countermeasures master plan or 
the budget resources for mine countermeasures with respect to that 
fiscal year until after the Under Secretary of Defense for Acquisition, 
Technology, and Logistics submits to the congressional defense 
committees a notification of the proposed change. Such notification 
shall describe the nature of the proposed change, the effect of the 
proposed change on the naval mine countermeasures program or related 
programs with respect to that fiscal year, and the effect of the 
proposed change on the validity of the decision to certify under 
subsection (b) with respect to that fiscal year.''.
    (b) Technical Amendments.--Such section is further amended--
            (1) in subsection (a), by striking ``Under Secretary of 
        Defense for Acquisition and Technology'' and inserting ``Under

[[Page 116 STAT. 2481]]

        Secretary of Defense for Acquisition, Technology, and 
        Logistics''; and
            (2) in subsection (b)(2)--
                    (A) by striking ``multiyear'' and inserting ``future 
                years''; and
                    (B) by striking ``section 114a'' and inserting 
                ``section 221''.

SEC. 213. REVISED REQUIREMENTS FOR PLAN FOR MANUFACTURING TECHNOLOGY 
            PROGRAM.

    (a) Streamlined Contents of Plan.--Subsection (e) of section 2521 of 
title 10, United States Code, is amended by striking ``prepare a five-
year plan'' in paragraph (1) and all that follows through the end of 
subparagraph (B) of paragraph (2) and inserting the following: ``prepare 
and maintain a five-year plan for the program.
    ``(2) The plan shall establish the following:
            ``(A) The overall manufacturing technology objectives, 
        milestones, priorities, and investment strategy for the program.
            ``(B) The specific objectives of, and funding for the 
        program by, each military department and each Defense Agency 
        participating in the program.''.

    (b) Biennial Report.--Such subsection is further amended in 
paragraph (3)--
            (1) by striking ``annually'' and inserting ``biennially''; 
        and
            (2) by striking ``for a fiscal year'' and inserting ``for 
        each even-numbered fiscal year''.

SEC. 214. ADVANCED SEAL DELIVERY SYSTEM.

    (a) Transfer of Funds.--To the extent provided in appropriations 
Acts, the amount described in subsection (b) shall be transferred to 
amounts available for fiscal year 2003 for research, development, test, 
and evaluation, Defense-Wide, and shall be available only for research, 
development, test, and evaluation relating to the Advanced SEAL Delivery 
System.
    (b) Amount To Be Transferred.--The amount referred to in subsection 
(a) is the amount of $13,700,000 that was authorized and appropriated 
for fiscal year 2002 for procurement of the Advanced SEAL Delivery 
System within amounts for Procurement, Defense-Wide.
    (c) Transfer Authority in Addition to Other Authority.--The transfer 
authority provided by this section is in addition to any other transfer 
authority provided by law.

SEC. 215. ARMY EXPERIMENTATION PROGRAM REGARDING DESIGN OF THE OBJECTIVE 
            FORCE.

    (a) Requirement <<NOTE: Deadline.>> for Report.--Not later than 
March 31, 2003, the Secretary of the Army shall submit to Congress a 
report on the experimentation program regarding design of the objective 
force that is required by subsection (g) of section 113 of the Floyd D. 
Spence National Defense Authorization Act for Fiscal Year 2001, as added 
by section 113 of the National Defense Authorization Act for Fiscal Year 
2002 (Public Law 107-107; 115 Stat. 1029).
    (b) Budget Display.--Amounts provided for the experimentation 
program in the budget for fiscal year 2004 that is submitted to Congress 
under section 1105(a) of title 31, United States Code, shall be 
displayed as a distinct program element in that budget and in the 
supporting documentation submitted to Congress by the Secretary of 
Defense.

[[Page 116 STAT. 2482]]

SEC. 216. PROGRAM TO PROVIDE ARMY WITH SELF-PROPELLED FUTURE COMBAT 
            SYSTEMS NON-LINE-OF-SIGHT CANNON INDIRECT FIRE CAPABILITY 
            FOR THE OBJECTIVE FORCE.

    (a) Program <<NOTE: Deadline.>> Required.--The Secretary of Defense 
shall carry out a program to provide the Army, not later than fiscal 
year 2008, with a self-propelled Future Combat Systems non-line-of-sight 
cannon indirect fire capability to equip the objective force.

    (b) Report.--(1) The Secretary shall submit to the congressional 
defense committees, at the same time that the President submits the 
budget for a fiscal year referred to in paragraph (2) to Congress under 
section 1105(a) of title 31, United States Code, a report on the 
investments proposed to be made with respect to non-line-of-sight 
indirect fire programs for the Army. The report shall--
            (A) identify the amount proposed for expenditures for the 
        Crusader artillery system program for that fiscal year in the 
        future-years defense program that was submitted to Congress in 
        2002 under section 221 of title 10, United States Code; and
            (B) specify--
                    (i) the manner in which the amount provided in that 
                budget would be expended for improved non-line-of-sight 
                indirect fire capabilities for the Army; and
                    (ii) the extent to which expending such amount in 
                such manner would improve such capabilities for the 
                Army.

    (2) <<NOTE: Applicability.>> The requirement to submit a report 
under paragraph (1) shall apply with respect to budgets for fiscal years 
2004, 2005, 2006, 2007, and 2008.

    (c) Objective Force Defined.--In this section, the term ``objective 
force'' has the meaning given such term in section 113(f)(2) 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-24).
    (d) Funding.--Of the amount authorized to be appropriated by section 
201(1) for the Army for research, development, test, and evaluation, 
$368,500,000 shall be used only to develop and field a self-propelled 
Future Combat Systems non-line-of-sight cannon indirect fire artillery 
system and a resupply vehicle with respect to such system.

SEC. 217. PROHIBITION ON TRANSFER OF MEDICAL FREE ELECTRON LASER 
            PROGRAM.

    The Medical Free Electron Laser Program (PE 0602227D8Z) may not be 
transferred from the Department of Defense to the National Institutes of 
Health, or to any other department or agency of the Federal Government.

SEC. 218. LITTORAL COMBAT SHIP PROGRAM.

    (a) Amount for Program.--Of the amount authorized to be appropriated 
by section 201(2) for research, development, test, and evaluation, Navy, 
$4,000,000 may be available in program element 0603563N, relating to 
Ship Concept Advanced Design, for requirements development for the 
littoral combat ship.
    (b) Limitation on Obligation of Funds.--The Secretary of the Navy 
may not obligate any funds for the construction of a littoral combat 
ship until after the Secretary submits the report required by subsection 
(c).

[[Page 116 STAT. 2483]]

    (c) Report on Milestone A Plan and Schedule.--(1) The Secretary of 
the Navy shall submit to the congressional defense committees, at the 
same time that the President submits the budget for fiscal year 2004 to 
Congress under section 1105(a) of title 31, United States Code, a report 
on development of the littoral combat ship.
    (2) The report shall address the plan and schedule for fulfilling 
the requirements of Department of Defense Instruction 5000-series for a 
major defense acquisition Milestone A decision for initiation of concept 
and technology development for the littoral combat ship, including the 
following such requirements:
            (A) Consideration of technology issues.
            (B) Market research.
            (C) Validated mission need statement.
            (D) Analysis of multiple concepts.
            (E) Test and evaluation master plan (evaluation strategy 
        only).
            (F) Exit criteria.
            (G) Acquisition decision memorandum.

    (3) The report shall include a discussion of the Secretary's 
acquisition strategy for development of the littoral combat ship.
    (d) Requirements for Acquisition Strategy.--The Secretary shall 
ensure that the acquisition strategy for development of the littoral 
combat ship includes the following:
            (1) A concept and technology demonstration phase that is 
        robust and, in a manner and on a schedule that will inform the 
        Navy's decisions on the concepts, technologies, and capabilities 
        to be incorporated into the initial design of the littoral 
        combat ship and into follow-on designs, capitalizes upon ongoing 
        and planned experiments, demonstrations, and evaluations of--
                    (A) existing, prototype, and experimental hull forms 
                and platforms, including the hull forms and platforms 
                relating to--
                          (i) the Coastal Waters Interdiction Platform;
                          (ii) the Hybrid Deep Vee Demonstrator;
                          (iii) the Littoral Support Craft 
                      (Experimental);
                          (iv) the High Speed Vessel;
                          (v) surface effects ships;
                          (vi) Research Vessel Triton;
                          (vii) the SLICE ship;
                          (viii) other existing, prototype, and 
                      experimental craft that the Secretary considers to 
                      be appropriate; and
                          (ix) other existing ships capable of carrying 
                      the desired payload packages;
                    (B) ship and combat systems components;
                    (C) command, control, and communications systems;
                    (D) intelligence, surveillance, and reconnaissance 
                systems;
                    (E) weapons systems; and
                    (F) support systems.
            (2) A description of the experiments, demonstrations, and 
        evaluations that are needed for support of design and 
        development decisionmaking for mission modules to be employed on 
        the littoral combat ship, including the mission modules for--
                    (A) anti-submarine warfare;
                    (B) mine countermeasures;

[[Page 116 STAT. 2484]]

                    (C) anti-ship defense; and
                    (D) any other missions that may be envisioned for 
                the ship.
            (3) An identification of the experiments, demonstrations, 
        and evaluations that would need to be accomplished during the 
        concept and technology demonstration phase and those that would 
        need to be accomplished during the system development and 
        demonstration phase (after a major defense acquisition Milestone 
        B decision to enter that phase).
            (4) A description of the potential trade-offs between 
        program requirements and capabilities, and the methodology 
        (including life cycle cost as an independent variable, speed as 
        an independent variable, and other applicable program 
        attributes), needed to arrive at a design for a littoral combat 
        ship that can be approved (pursuant to a major defense 
        acquisition Milestone B decision) for entry into the system 
        development and demonstration phase.
            (5) An analysis of the adequacy of existing and planned 
        platforms to test the littoral ship concept prior to 
        construction of a littoral combat ship.

                  Subtitle C--Ballistic Missile Defense

SEC. 221. <<NOTE: 10 USC 2431 note.>> REPORT REQUIREMENTS RELATING TO 
            BALLISTIC MISSILE DEFENSE PROGRAMS.

    (a) Annual Submission of Current Performance Goals and Development 
Baselines.--(1) The Secretary of Defense shall submit to the 
congressional defense committees each year the performance goals and 
development baselines--
            (A) for those ballistic missile defense systems under 
        development by the Missile Defense Agency that could be fielded; 
        and
            (B) for any other ballistic missile defense program or 
        project that has been designated by Congress as a special 
        interest item.

    (2) Such performance goals and development baselines shall be 
provided for each block of each such system.
    (3) The performance goals and development baselines under paragraph 
(1) shall be included annually with the defense budget justification 
materials submitted in support of the President's budget submitted to 
Congress under section 1105 of title 31, United States Code.
    (b) RDT&E Budget Justification Materials.--The budget justification 
materials submitted to Congress for any fiscal year in support of a 
request for the authorization and appropriation of funds for research, 
development, test, and evaluation for ballistic missile defense systems 
shall include a funding profile for each block of each such system that 
could be fielded that reflects the development baseline submitted 
pursuant to subsection (a) for that fiscal year.
    (c) Review of MDA Criteria in Relation to Military Requirements.--
(1) The Joint Requirements Oversight Council established under section 
181 of title 10, United States Code, shall review cost, schedule, and 
performance criteria for missile defense programs of the Missile Defense 
Agency in order to assess the validity of those criteria in relation to 
military requirements.

[[Page 116 STAT. 2485]]

    (2) The Secretary shall include the results of such review with the 
first annual statement of program goals submitted to the congressional 
defense committees under section 232(c) of the National Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107-107; 10 U.S.C. 
2431 note) after the date of the enactment of this Act.

SEC. 222. RESPONSIBILITY OF MISSILE DEFENSE AGENCY FOR RESEARCH, 
            DEVELOPMENT, TEST, AND EVALUATION RELATED TO SYSTEM 
            IMPROVEMENTS OF PROGRAMS TRANSFERRED TO MILITARY 
            DEPARTMENTS.

    Section 224(e) of title 10, United States Code, is amended--
            (1) by striking ``before a'' and inserting ``for each'';
            (2) by striking ``is''; and
            (3) by striking ``roles and responsibilities'' and all that 
        follows through the period at the end and inserting 
        ``responsibility for research, development, test, and evaluation 
        related to system improvements for that program remains with the 
        Director.''.

SEC. 223. LIMITATION ON OBLIGATION OF FUNDS FOR THEATER HIGH ALTITUDE 
            AREA DEFENSE PROGRAM PENDING SUBMISSION OF REQUIRED LIFE-
            CYCLE COST INFORMATION.

    (a) Limitation Pending Submission of Certification.--Not more than 
85 percent of the amount specified in subsection (b) may be obligated 
until the Secretary of Defense submits to the congressional defense 
committees the estimated total life-cycle cost of the Theater High 
Altitude Area Defense (THAAD) program as required for programs in 
engineering and manufacturing development by section 232(d) of the 
National Defense Authorization Act for Fiscal Year 2002 (Public Law 107-
107; 10 U.S.C. 2431 note).
    (b) Funds <<NOTE: Applicability.>> Subject to Limitation.--
Subsection (a) applies to the amount authorized to be appropriated for 
fiscal year 2003 for the Missile Defense Agency for the Theater High 
Altitude Area Defense (THAAD) program.

SEC. 224. <<NOTE: 10 USC 2431 note.>> PROVISION OF INFORMATION ON FLIGHT 
            TESTING OF GROUND-BASED MIDCOURSE NATIONAL MISSILE DEFENSE 
            SYSTEM.

    (a) Information To Be Furnished to Congressional Committees.--The 
Director of the Missile Defense Agency shall provide to the 
congressional defense committees information on the results of each 
flight test of the Ground-based Midcourse national missile defense 
system.
    (b) Content.--Information provided under subsection (a) on the 
results of a flight test shall include the following matters:
            (1) A thorough discussion of the content and objectives of 
        the test.
            (2) For each such test objective, a statement regarding 
        whether or not the objective was achieved.
            (3) For any such test objective not achieved--
                    (A) a thorough discussion describing the reasons 
                that the objective was not achieved; and
                    (B) a discussion of any plans for future tests to 
                achieve that objective.

[[Page 116 STAT. 2486]]

SEC. 225. REFERENCES TO NEW NAME FOR BALLISTIC MISSILE DEFENSE 
            ORGANIZATION.

    (a) In <<NOTE: 10 USC 223 note.>> General.--Any reference to the 
Ballistic Missile Defense Organization in any provision of law, 
regulation, map, document, record, or other paper of the United States 
shall be considered to be a reference to the Missile Defense Agency.

    (b) Conforming Amendments.--(1) Title 10, United States Code, is 
amended as follows:
            (A) Sections 203, 223, and 224 are each amended by striking 
        ``Ballistic Missile Defense Organization'' each place it appears 
        and inserting ``Missile Defense Agency''.
            (B)(i) The heading for section 203 is amended to read as 
        follows:

``Sec. 203. Director of Missile Defense Agency''.

            (ii) The item relating to section 203 in the table of 
        sections at the beginning of subchapter II of chapter 8 is 
        amended to read as follows:

``203. Director of Missile Defense Agency.''.

    (2) The National Defense Authorization Act for Fiscal Year 2002 
(Public Law 107-107) is amended as follows:
            (A) Sections 232 (115 Stat. 1037; 10 U.S.C. 2431 note), 233 
        (115 Stat. 1039), and 235 (115 Stat. 1041) are each amended by 
        striking ``Ballistic Missile Defense Organization'' each place 
        it appears and inserting ``Missile Defense Agency''.
            (B) The heading for section 232 is amended to read as 
        follows:

``SEC. 232. PROGRAM ELEMENTS FOR MISSILE DEFENSE AGENCY.''.

    (3) Section 3132 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-455; 10 U.S.C. 2431 note) is amended--
            (A) by striking ``Ballistic Missile Defense Organization'' 
        each place it appears and inserting ``Missile Defense Agency'';
            (B) in subsection (c), by striking ``BMDO'' and inserting 
        ``MDA''; and
            (C) by amending the heading to read as follows:

``SEC. 3132. ENHANCED COOPERATION BETWEEN NATIONAL NUCLEAR SECURITY 
            ADMINISTRATION AND MISSILE DEFENSE AGENCY.''.

    (4) The following provisions are each amended by striking 
``Ballistic Missile Defense Organization'' each place it appears and 
inserting ``Missile Defense Agency'':
            (A) Section 233 of the National Defense Authorization Act 
        for Fiscal Year 1998 (Public Law 105-85; 10 U.S.C. 223 note).
            (B) Section 243 of the National Defense Authorization Act 
        for Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 2431 note).

SEC. 226. ONE-YEAR LIMITATION ON USE OF FUNDS FOR NUCLEAR ARMED 
            INTERCEPTORS.

    (a) Limitation.--None of the funds described in subsection (b) may 
be obligated for research, development, test, or evaluation, or for 
procurement, of a nuclear armed interceptor as a component of a missile 
defense system.

[[Page 116 STAT. 2487]]

    (b) Covered <<NOTE: Applicability.>> Funds.--Subsection (a) applies 
to funds made available to the Department of Defense pursuant to an 
authorization of appropriations in this title or title I or to the 
Department of Energy pursuant to an authorization of appropriations in 
title XXXI.

   Subtitle D--Improved Management of Department of Defense Test and 
                          Evaluation Facilities

SEC. 231. DEPARTMENT OF DEFENSE TEST RESOURCE MANAGEMENT CENTER.

    (a) Establishment.--(1) Subchapter I of chapter 8 of title 10, 
United States Code, is amended by adding at the end the following new 
section:

``Sec. 196. Department of Defense Test Resource Management Center

    ``(a) Establishment as Department of Defense Field Activity.--The 
Secretary of Defense shall establish within the Department of Defense 
under section 191 of this title a Department of Defense Test Resource 
Management Center (hereinafter in this section referred to as the 
`Center'). The Secretary shall designate the Center as a Department of 
Defense Field Activity.
    ``(b) Director and Deputy Director.--(1) At the head of the Center 
shall be a Director, selected by the Secretary from among commissioned 
officers of the armed forces on active duty. The Director, while so 
serving, holds the grade of lieutenant general or, in the case of an 
officer of the Navy, vice admiral.
    ``(2) There shall be a Deputy Director of the Center, selected by 
the Secretary from among senior civilian officers and employees of the 
Department of Defense who have substantial experience in the field of 
test and evaluation. The Deputy Director shall act for, and exercise the 
powers of, the Director when the Director is disabled or the position of 
Director is vacant.
    ``(c) Duties of Director.--The Director shall have the following 
duties:
            ``(1) To review and provide oversight of proposed Department 
        of Defense budgets and expenditures for--
                    ``(A) the test and evaluation facilities and 
                resources of the Major Range and Test Facility Base of 
                the Department of Defense; and
                    ``(B) all other test and evaluation facilities and 
                resources within and outside of the Department of 
                Defense.
            ``(2) To complete and maintain the strategic plan required 
        by subsection (d).
            ``(3) To review proposed budgets under subsection (e) and 
        submit reports and certifications required by such subsection.
            ``(4) To administer the Central Test and Evaluation 
        Investment Program and the program of the Department of Defense 
        for test and evaluation science and technology.

    ``(d) Strategic Plan for Department of Defense Test and Evaluation 
Resources.--(1) Not less often than once every two fiscal years, the 
Director, in coordination with the Director of Operational Test and 
Evaluation, the Secretaries of the military departments, and the heads 
of Defense Agencies with test and evaluation

[[Page 116 STAT. 2488]]

responsibilities, shall complete a strategic plan reflecting the needs 
of the Department of Defense with respect to test and evaluation 
facilities and resources. Each such strategic plan shall cover the 
period of ten fiscal years beginning with the fiscal year in which the 
plan is submitted under paragraph (3). The strategic plan shall be based 
on a comprehensive review of the test and evaluation requirements of the 
Department and the adequacy of the test and evaluation facilities and 
resources of the Department to meet those requirements.
    ``(2) The strategic plan shall include the following:
            ``(A) An assessment of the test and evaluation requirements 
        of the Department for the period covered by the plan.
            ``(B) An identification of performance measures associated 
        with the successful achievement of test and evaluation 
        objectives for the period covered by the plan.
            ``(C) An assessment of the test and evaluation facilities 
        and resources that will be needed to meet such requirements and 
        satisfy such performance measures.
            ``(D) An assessment of the current state of the test and 
        evaluation facilities and resources of the Department.
            ``(E) An itemization of acquisitions, upgrades, and 
        improvements necessary to ensure that the test and evaluation 
        facilities and resources of the Department are adequate to meet 
        such requirements and satisfy such performance measures.
            ``(F) An assessment of the budgetary resources necessary to 
        implement such acquisitions, upgrades, and improvements.

    ``(3) <<NOTE: Reports.>> Upon completing a strategic plan under 
paragraph (1), the Director shall submit to the Secretary of Defense a 
report on that plan. The report shall include the plan and a description 
of the review on which the plan is based.

    ``(4) <<NOTE: Deadline. Reports.>> Not later than 60 days after the 
date on which the report is submitted under paragraph (3), the Secretary 
of Defense shall transmit to the Committee on Armed Services and 
Committee on Appropriations of the Senate and the Committee on Armed 
Services and Committee on Appropriations of the House of Representatives 
the report, together with any comments with respect to the report that 
the Secretary considers appropriate.

    ``(e) Certification of Budgets.--(1) The Secretary of Defense, 
acting through the Under Secretary of Defense (Comptroller), shall 
require that the Secretary of each military department, the Director of 
Operational Test and Evaluation, and the head of each Defense Agency 
with test and evaluation responsibilities transmit such Secretary's, 
Director's, or head's proposed budget for test and evaluation activities 
for a fiscal year to the Director of the Center for review under 
paragraph (2) before submitting such proposed budget to the Under 
Secretary of Defense (Comptroller).
    ``(2)(A) <<NOTE: Deadline. Reports.>> The Director of the Center 
shall review each proposed budget transmitted under paragraph (1) and 
shall, not later than January 31 of the year preceding the fiscal year 
for which such budgets are proposed, submit to the Secretary of Defense 
a report containing the comments of the Director with respect to all 
such proposed budgets, together with the certification of the Director 
as to whether such proposed budgets are adequate.

    ``(B) The Director shall also submit, together with such report and 
such certification, an additional certification as to whether such 
proposed budgets provide balanced support for such strategic plan.

[[Page 116 STAT. 2489]]

    ``(3) <<NOTE: Deadline. Reports.>> The Secretary of Defense shall, 
not later than March 31 of the year preceding the fiscal year for which 
such budgets are proposed, submit to Congress a report on those proposed 
budgets which the Director has not certified under paragraph (2)(A) to 
be adequate. The report shall include the following matters:
            ``(A) A discussion of the actions that the Secretary 
        proposes to take, together with any recommended legislation that 
        the Secretary considers appropriate, to address the inadequacy 
        of the proposed budgets.
            ``(B) Any additional comments that the Secretary considers 
        appropriate regarding the inadequacy of the proposed budgets.

    ``(f) Supervision of Director by Under Secretary.--The Director of 
the Center shall be subject to the supervision of the Under Secretary of 
Defense for Acquisition, Technology, and Logistics. The Director shall 
report directly to the Under Secretary, without the interposition of any 
other supervising official.
    ``(g) Administrative Support of Center.--The Secretary of Defense 
shall provide the Director with administrative support adequate for 
carrying out the Director's responsibilities under this section. The 
Secretary shall provide the support out of the headquarters activities 
of the Department or any other activities that the Secretary considers 
appropriate.
    ``(h) Definition.--In this section, the term `Major Range and Test 
Facility Base' means the test and evaluation facilities and resources 
that are designated by the Director of Operational Test and Evaluation 
as facilities and resources comprising the Major Range and Test Facility 
Base.''.
    (2) The table of sections at the beginning of such subchapter is 
amended by adding at the end the following new item:

``196. Department of Defense Test Resource Management Center.''.

    (b) First <<NOTE: Deadline. 10 USC 196 note.>> Strategic Plan.--The 
first strategic plan required to be completed under subsection (d)(1) of 
section 196 of title 10, United States Code (as added by subsection 
(a)), shall be completed not later than six months after the date of the 
enactment of this Act.

    (c) Administration of CTEIP and DOD T&E S&T Programs.--The duty of 
the Director of the Department of Defense Test Resource Management 
Center to administer the programs specified in subsection (c)(4) of 
section 196 of title 10, United States Code (as added by subsection 
(a)), shall take effect, and such programs shall be placed under control 
of such Director, upon the beginning of the first fiscal year that 
begins after the report on the first strategic plan referred to 
subsection (b) is transmitted to the congressional committees required 
by subsection (d)(4) of such section 196.

SEC. 232. OBJECTIVE FOR INSTITUTIONAL FUNDING OF TEST AND EVALUATION 
            FACILITIES.

    (a) Funding Objective.--The Secretary of Defense shall establish the 
objective of ensuring that, by fiscal year 2006--
            (1) the institutional and overhead costs of a facility or 
        resource of a military department or Defense Agency that is 
        within the Major Range and Test Facility Base are fully funded 
        through the major test and evaluation investment accounts of the 
        military department or Defense Agency, the account of the 
        Central Test and Evaluation Investment Program of

[[Page 116 STAT. 2490]]

        the Department of Defense, and other appropriate accounts of the 
        military department or Defense Agency; and
            (2) the charge to an element of the Department of Defense 
        for a use by that element of such a facility or resource for 
        testing under a particular program is not more than the amount 
        equal to the direct costs of such use by that element.

    (b) Definitions.--In this section:
            (1) The term ``Major Range and Test Facility Base'' means 
        the test and evaluation facilities and resources that are 
        designated by the Director of Operational Test and Evaluation as 
        facilities and resources comprising the Major Range and Test 
        Facility Base.
            (2) The term ``institutional and overhead costs'', with 
        respect to a facility or resource within the Major Range Test 
        and Facility Base--
                    (A) means the costs of maintaining, operating, 
                upgrading, and modernizing the facility or resource; and
                    (B) does not include any incremental cost of 
                operating the facility or resource that is attributable 
                to the use of the facility or resource for testing under 
                a particular program.
            (3) The term ``direct costs'', with respect to a facility or 
        resource within the Major Range and Test Facility Base, means 
        those costs that are directly attributable to the use of the 
        facility or resource for testing under a particular program, 
        over and above the institutional and overhead costs with respect 
        to the facility or resource.

SEC. 233. <<NOTE: 10 USC 113 note.>> UNIFORM FINANCIAL MANAGEMENT SYSTEM 
            FOR DEPARTMENT OF DEFENSE TEST AND EVALUATION FACILITIES.

    (a) Requirement <<NOTE: Deadline.>> for System.--The Secretary of 
Defense shall implement a single financial management and accounting 
system for all test and evaluation facilities of the Department of 
Defense. The Secretary shall implement such system as soon as 
practicable, and shall establish the objective that such system be 
implemented not later than September 30, 2006.

    (b) System Features.--The system required by subsection (a) shall be 
designed to achieve, at a minimum, the following functional objectives:
            (1) Enable managers within the Department of Defense to 
        compare the costs of carrying out test and evaluation activities 
        in the various facilities of the military departments.
            (2) Enable the Secretary of Defense--
                    (A) to make prudent investment decisions; and
                    (B) to reduce the extent to which unnecessary costs 
                of owning and operating test and evaluation facilities 
                of the Department of Defense are incurred.
            (3) Enable the Department of Defense to track the total cost 
        of test and evaluation activities.
            (4) Comply with the financial management architecture 
        established by the Secretary.

SEC. 234. TEST AND EVALUATION WORKFORCE IMPROVEMENTS.

    (a) Report <<NOTE: Deadline.>> on Capabilities.--Not later than 
March 15, 2003, the Under Secretary of Defense for Acquisition, 
Technology, and Logistics shall submit to Congress a report on the 
capabilities of the test and evaluation workforce of the Department of 
Defense. The Under Secretary shall consult with the Under Secretary of 


[[Page 116 STAT. 2491]]

Defense for Personnel and Readiness and the Director of Operational Test 
and Evaluation in preparing the report.

    (b) Requirement for Plan.--(1) The report shall contain a plan for 
taking the actions necessary to ensure that the test and evaluation 
workforce of the Department of Defense is of sufficient size and has the 
expertise necessary to timely and accurately identify issues of military 
suitability and effectiveness of Department of Defense systems through 
testing of the systems.
    (2) The plan shall set forth objectives for the size, composition, 
and qualifications of the workforce, and shall specify the actions 
(including recruitment, retention, and training) and milestones for 
achieving the objectives.
    (c) Additional Matters.--The report shall also include the following 
matters:
            (1) An assessment of the changing size and demographics of 
        the test and evaluation workforce, including the impact of 
        anticipated retirements among the most experienced personnel 
        over the period of five fiscal years beginning with fiscal year 
        2003, together with a discussion of the management actions 
        necessary to address the changes.
            (2) An assessment of the anticipated workloads and 
        responsibilities of the test and evaluation workforce over the 
        period of ten fiscal years beginning with fiscal year 2003, 
        together with the number and qualifications of military and 
        civilian personnel necessary to carry out such workloads and 
        responsibilities.
            (3) The Under Secretary's specific plans for using the 
        demonstration authority provided in section 4308 of the National 
        Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
        106; 10 U.S.C. 1701 note) and other special personnel management 
        authorities of the Under Secretary to attract and retain 
        qualified personnel in the test and evaluation workforce.
            (4) Any recommended legislation or additional special 
        authority that the Under Secretary considers appropriate for 
        facilitating the recruitment and retention of qualified 
        personnel for the test and evaluation workforce.
            (5) Any other matters that are relevant to the capabilities 
        of the test and evaluation workforce.

SEC. 235. COMPLIANCE WITH TESTING REQUIREMENTS.

    (a) Annual OT&E Report.--Subsection (g) of section 139 of title 10, 
United States Code, is amended by inserting after the fourth sentence 
the following: ``The report for a fiscal year shall also include an 
assessment of the waivers of and deviations from requirements in test 
and evaluation master plans and other testing requirements that occurred 
during the fiscal year, any concerns raised by the waivers or 
deviations, and the actions that have been taken or are planned to be 
taken to address the concerns.''.
    (b) Reorganization of Provision.--Subsection (g) of such section, as 
amended by subsection (a), is further amended--
            (1) by inserting ``(1)'' after ``(g)'';
            (2) by designating the second sentence as paragraph (2);
            (3) by designating the third sentence as paragraph (3);
            (4) by designating the matter consisting of the fourth and 
        fifth sentences as paragraph (4); and
            (5) by designating the sixth sentence as paragraph (5).

[[Page 116 STAT. 2492]]

                        Subtitle E--Other Matters

SEC. 241. <<NOTE: 10 USC 2358 note.>> PILOT PROGRAMS FOR REVITALIZING 
            DEPARTMENT OF DEFENSE LABORATORIES.

    (a) Additional Pilot Program.--(1) The Secretary of Defense may 
carry out a pilot program to demonstrate improved efficiency in the 
performance of research, development, test, and evaluation functions of 
the Department of Defense.
    (2) Under the pilot program, the Secretary of Defense shall provide 
the director of one science and technology laboratory, and the director 
of one test and evaluation laboratory, of each military department with 
authority for the following:
            (A) To use innovative methods of personnel management 
        appropriate for ensuring that the selected laboratories can--
                    (i) employ and retain a workforce appropriately 
                balanced between permanent and temporary personnel and 
                among workers with appropriate levels of skills and 
                experience; and
                    (ii) effectively shape workforces to ensure that the 
                workforces have the necessary sets of skills and 
                experience to fulfill their organizational missions.
            (B) To develop or expand innovative methods of entering into 
        and expanding cooperative relationships and arrangements with 
        private sector organizations, educational institutions 
        (including primary and secondary schools), and State and local 
        governments to facilitate the training of a future scientific 
        and technical workforce that will contribute significantly to 
        the accomplishment of organizational missions.
            (C) To develop or expand innovative methods of establishing 
        cooperative relationships and arrangements with private sector 
        organizations and educational institutions to promote the 
        establishment of the technological industrial base in areas 
        critical for Department of Defense technological requirements.
            (D) To waive any restrictions not required by law that apply 
        to the demonstration and implementation of methods for achieving 
        the objectives set forth in subparagraphs (A), (B), and (C).

    (3) <<NOTE: Deadline.>> The Secretary may carry out the pilot 
program under this subsection at each selected laboratory for a period 
of three years beginning not later than March 1, 2003.

    (b) Relationship to Fiscal Years 1999 and 2000 Revitalization Pilot 
Programs.--The pilot program under this section is in addition to, but 
may be carried out in conjunction with, the fiscal years 1999 and 2000 
revitalization pilot programs.
    (c) Reports.--(1) <<NOTE: Deadlines.>> Not later than January 1, 
2003, the Secretary shall submit to Congress a report on the experience 
under the fiscal years 1999 and 2000 revitalization pilot programs in 
exercising the authorities provided for the administration of those 
programs. The report shall include a description of--
            (A) barriers to the exercise of the authorities that have 
        been encountered;
            (B) the proposed solutions for overcoming the barriers; and
            (C) the progress made in overcoming the barriers.

    (2) Not later than September 1, 2003, the Secretary of Defense shall 
submit to Congress a report on the implementation of the

[[Page 116 STAT. 2493]]

pilot program under subsection (a) and the fiscal years 1999 and 2000 
revitalization pilot programs. The report shall include, for each such 
pilot program, the following:
            (A) Each laboratory selected for the pilot program.
            (B) To the extent practicable, a description of the 
        innovative methods that are to be tested at each laboratory.
            (C) The criteria to be used for measuring the success of 
        each method to be tested.

    (3) Not later than 90 days after the expiration of the period for 
the participation of a laboratory in a pilot program referred to in 
paragraph (2), the Secretary of Defense shall submit to Congress a final 
report on the participation of that laboratory in the pilot program. The 
report shall include the following:
            (A) A description of the methods tested.
            (B) The results of the testing.
            (C) The lessons learned.
            (D) Any proposal for legislation that the Secretary 
        recommends on the basis of the experience at that laboratory 
        under the pilot program.

    (d) Extension of Authority for Other Revitalization Pilot 
Programs.--(1) Section 246(a)(4) of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (Public Law 105-261; 112 Stat. 
1956; 10 U.S.C. 2358 note) is amended by striking ``a period of three 
years'' and inserting ``up to six years''.
    (2) Section 245(a)(4) of the National Defense Authorization Act for 
Fiscal Year 2000 (Public Law 106-65; 113 Stat. 553; 10 U.S.C. 2358 note) 
is amended by striking ``a period of three years'' and inserting ``up to 
five years''.
    (e) Partnerships Under Pilot Program.--(1) The Secretary of Defense 
may authorize one or more laboratories and test centers participating in 
the pilot program under subsection (a) or in one of the fiscal years 
1999 and 2000 revitalization pilot programs to enter into a cooperative 
arrangement (in this subsection referred to as a ``public-private 
partnership'') with entities in the private sector and institutions of 
higher education for the performance of work.
    (2) A competitive process shall be used for the selection of 
entities outside the Government to participate in a public-private 
partnership.
    (3)(A) Not more than one public-private partnership may be 
established as a limited liability company.
    (B) An entity participating in a limited liability company as a 
party to a public-private partnership under the pilot program may 
contribute funds to the company, accept contributions of funds for the 
company, and provide materials, services, and use of facilities for 
research, technology, and infrastructure of the company, if it is 
determined under regulations prescribed by the Secretary of Defense that 
doing so will improve the efficiency of the performance of research, 
test, and evaluation functions of the Department of Defense.
    (f) Fiscal Years 1999 and 2000 Revitalization Pilot Programs 
Defined.--In this section, the term ``fiscal years 1999 and 2000 
revitalization pilot programs'' means--
            (1) the pilot programs authorized by section 246 of the 
        Strom Thurmond National Defense Authorization Act for Fiscal 
        Year 1999 (Public Law 105-261; 112 Stat. 1955; 10 U.S.C. 2358 
        note); and

[[Page 116 STAT. 2494]]

            (2) the pilot programs authorized by section 245 of the 
        National Defense Authorization Act for Fiscal Year 2000 (Public 
        Law 106-65; 113 Stat. 552; 10 U.S.C. 2358 note).

SEC. 242. TECHNOLOGY TRANSITION INITIATIVE.

    (a) Establishment and Conduct.--(1) Chapter 139 of title 10, United 
States Code, is amended by inserting after section 2359 the following 
new section:

``Sec. 2359a. Technology Transition Initiative

    ``(a) Initiative Required.--The Secretary of Defense, acting through 
the Under Secretary of Defense for Acquisition, Technology, and 
Logistics, shall carry out an initiative, to be known as the Technology 
Transition Initiative (hereinafter in this section referred to as the 
`Initiative'), to facilitate the rapid transition of new technologies 
from science and technology programs of the Department of Defense into 
acquisition programs of the Department for the production of such 
technologies.
    ``(b) Objectives.--The objectives of the Initiative are as follows:
            ``(1) To accelerate the introduction of new technologies 
        into operational capabilities for the armed forces.
            ``(2) To successfully demonstrate new technologies in 
        relevant environments.

    ``(c) Management of Initiative.--(1) The Under Secretary shall 
designate a senior official of the Department of Defense (hereinafter in 
this section referred to as the `Manager') to manage the Initiative.
    ``(2) In managing the Initiative, the Manager shall--
            ``(A) report directly to the Under Secretary; and
            ``(B) obtain advice and other assistance from the Technology 
        Transition Council established under subsection (g).

    ``(3) The Manager shall--
            ``(A) in consultation with the Technology Transition Council 
        established under subsection (g), identify promising technology 
        transition projects that can contribute to meeting Department of 
        Defense technology goals and requirements;
            ``(B) identify potential sponsors in the Department of 
        Defense to manage such projects; and
            ``(C) provide funds under subsection (f) for those projects 
        that are selected under subsection (d)(2).

    ``(d) Selection of Projects.--(1) The science and technology and 
acquisition executives of each military department and each appropriate 
Defense Agency and the commanders of the unified and specified combatant 
commands may nominate technology transition projects for implementation 
under subsection (e) and shall submit a list of the projects so 
nominated to the Manager.
    ``(2) The Manager, in consultation with the Technology Transition 
Council established under subsection (g), shall select projects for 
implementation under subsection (e) from among the projects on the lists 
submitted under paragraph (1).
    ``(e) Implementation of Projects.--For each project selected under 
subsection (d)(2), the Manager shall designate a military department or 
Defense Agency to implement the project.
    ``(f) Funding of Projects.--(1) From funds made available to the 
Manager for the Initiative, the Manager shall, subject to paragraphs (2) 
and (3), provide funds for each project selected

[[Page 116 STAT. 2495]]

under subsection (d)(2) in an amount determined by mutual agreement 
between the Manager and the acquisition executive of the military 
department or Defense Agency concerned.
    ``(2) The amount of funds provided to a project under paragraph (1) 
shall be not less than the amount equal to 50 percent of the total cost 
of the project.
    ``(3) A project shall not be provided funds under this subsection 
for more than four fiscal years.
    ``(g) Technology <<NOTE: Establishment.>> Transition Council.--(1) 
There is a Technology Transition Council in the Department of Defense. 
The Council is composed of the following members:
            ``(A) The science and technology executive of each military 
        department and each Defense Agency.
            ``(B) The acquisition executive of each military department.
            ``(C) The members of the Joint Requirements Oversight 
        Council.

    ``(2) The duty of the Council shall be to provide advice and 
assistance to the Manager under this section.
    ``(3) The Council shall meet not less often than semiannually to 
carry out its duty under paragraph (2).
    ``(h) Report.--Not <<NOTE: Deadline.>> later than March 31 of each 
year, the Under Secretary shall submit to the Committee on Armed 
Services and the Committee on Appropriations of the Senate and the 
Committee on Armed Services and the Committee on Appropriations of the 
House of Representatives a report on the activities carried out by the 
Initiative during the preceding fiscal year.

    ``(i) Definition.--In this section, the term `acquisition 
executive', with respect to a military department or Defense Agency, 
means the official designated as the senior procurement executive for 
that military department or Defense Agency for the purposes of section 
16(3) of the Office of Federal Procurement Policy Act (41 U.S.C. 
414(3)).''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2359 the 
following new item:

``2359a. Technology Transition Initiative.''.

    (b) Authorization of Appropriations.--Of the amount authorized to be 
appropriated under section 201(4), $25,430,000 may be available in 
program element 0603826D8Z for technology transition activities of the 
Department of Defense, including the Technology Transition Initiative 
required by section 2359a of title 10, United States Code (as added by 
subsection (a)), the Defense Acquisition Challenge Program required by 
section 2359b of title 10, United States Code (as added by section 243), 
and Quick Reaction Special Projects.

SEC. 243. DEFENSE ACQUISITION CHALLENGE PROGRAM.

    (a) In General.--Chapter 139 of title 10, United States Code, is 
amended by inserting after section 2359a (as added by section 242) the 
following new section:

``Sec. 2359b. Defense Acquisition Challenge Program

    ``(a) Program Required.--(1) The Secretary of Defense, acting 
through the Under Secretary of Defense for Acquisition, Technology, and 
Logistics, shall carry out a program to provide opportunities

[[Page 116 STAT. 2496]]

for the increased introduction of innovative and cost-saving technology 
in acquisition programs of the Department of Defense.
    ``(2) The program, to be known as the Defense Acquisition Challenge 
Program (hereinafter in this section referred to as the `Challenge 
Program'), shall provide any person or activity within or outside the 
Department of Defense with the opportunity to propose alternatives, to 
be known as challenge proposals, at the component, subsystem, or system 
level of an existing Department of Defense acquisition program that 
would result in improvements in performance, affordability, 
manufacturability, or operational capability of that acquisition 
program.
    ``(b) Panels.--The <<NOTE: Establishment.>> Under Secretary shall 
establish one or more panels of highly qualified scientists and 
engineers (hereinafter in this section referred to as `Panels') to 
provide preliminary evaluations of challenge proposals under subsection 
(c).

    ``(c) Preliminary <<NOTE: Procedures.>> Evaluation by Panels.--(1) 
Under procedures prescribed by the Under Secretary, a person or activity 
within or outside the Department of Defense may submit challenge 
proposals to a Panel, through the unsolicited proposal process or in 
response to a broad agency announcement.

    ``(2) The Under Secretary shall establish procedures pursuant to 
which appropriate officials of the Department of Defense may identify 
proposals submitted through the unsolicited proposal process as 
challenge proposals. The procedures shall provide for the expeditious 
referral of such proposals to a Panel for preliminary evaluation under 
this subsection.
    ``(3) The Under Secretary shall issue on an annual basis not less 
than one such broad agency announcement inviting interested parties to 
submit challenge proposals. Such announcements may also identify 
particular technology areas and acquisition programs that will be given 
priority in the evaluation of challenge proposals.
    ``(4) Under procedures established by the Under Secretary, a Panel 
shall carry out a preliminary evaluation of each challenge proposal 
submitted in response to a broad agency announcement, or submitted 
through the unsolicited proposal process and identified as a challenge 
proposal in accordance with paragraph (2), to determine each of the 
following:
            ``(A) Whether the challenge proposal has merit.
            ``(B) Whether the challenge proposal is likely to result in 
        improvements in performance, affordability, manufacturability, 
        or operational capability at the component, subsystem, or system 
        level of an acquisition program.
            ``(C) Whether the challenge proposal could be implemented in 
        the acquisition program rapidly, at an acceptable cost, and 
        without unacceptable disruption to the acquisition program.

    ``(5) The Under Secretary may establish procedures to ensure that 
the Challenge Program does not become an avenue for the repetitive 
submission of proposals that have been previously reviewed and found not 
to have merit.
    ``(6) If a Panel determines that a challenge proposal satisfies each 
of the criteria specified in paragraph (4), the person or activity 
submitting that challenge proposal shall be provided an opportunity to 
submit such challenge proposal for a full review and evaluation under 
subsection (d).
    ``(d) Full <<NOTE: Procedures.>> Review and Evaluation.--(1) Under 
procedures prescribed by the Under Secretary, for each challenge 
proposal submitted for a full review and evaluation as provided in 
subsection 


[[Page 116 STAT. 2497]]

(c)(6), the office carrying out the acquisition program to which the 
proposal relates shall, in consultation with the prime system contractor 
carrying out such program, conduct a full review and evaluation of the 
proposal.
    ``(2) The full review and evaluation shall, independent of the 
determination of a Panel under subsection (c)(4), determine each of the 
matters specified in subparagraphs (A), (B), and (C) of such subsection. 
The full review and evaluation shall also include--
            ``(A) an assessment of the cost of adopting the challenge 
        proposal and implementing it in the acquisition program; and
            ``(B) consideration of any intellectual property issues 
        associated with the challenge proposal.

    ``(e) Action <<NOTE: Procedures.>> Upon Favorable Full Review and 
Evaluation.--(1) Under procedures prescribed by the Under Secretary, 
each challenge proposal determined under a full review and evaluation to 
satisfy each of the criteria specified in subsection (c)(4) with respect 
to an acquisition program shall be considered by the office carrying out 
the applicable acquisition program and the prime system contractor for 
incorporation into the acquisition program as a new technology insertion 
at the component, subsystem, or system level.

    ``(2) The Under Secretary shall encourage the adoption of each 
challenge proposal referred to in paragraph (1) by providing suitable 
incentives to the office carrying out the acquisition program and the 
prime system contractor carrying out such program.
    ``(f) Access <<NOTE: Procedures.>> to Technical Resources.--(1) 
Under procedures established by the Under Secretary, the technical 
resources of the laboratories, research, development, and engineering 
centers, test and evaluation activities, and other elements of the 
Department may be called upon to support the activities of the Challenge 
Program.

    ``(2) Funds available to carry out this program may be used to 
compensate such laboratories, centers, activities, and elements for 
technical assistance provided to a Panel pursuant to paragraph (1).
    ``(g) Elimination of Conflicts of Interest.--In carrying out each 
preliminary evaluation under subsection (c) and full review under 
subsection (d), the Under Secretary shall ensure the elimination of 
conflicts of interest.
    ``(h) Limitation on Use of Funds.--Funds made available for the 
Challenge Program may be used only for activities authorized by this 
section, and not for implementation of challenge proposals.
    ``(i) Annual Report.--The Under Secretary shall submit an annual 
report on the Challenge Program to Congress. The report shall be 
submitted at the same time as the President submits the budget for a 
fiscal year to Congress under section 1105(a) of title 31, and shall 
cover the conduct of the Challenge Program for the preceding fiscal 
year. The report shall include the number and scope of challenge 
proposals submitted, preliminarily evaluated, subjected to full review 
and evaluation, and adopted. No report is required for a fiscal year in 
which the Challenge Program is not carried out.
    ``(j) Termination of Authority.--The Secretary may not carry out the 
Challenge Program under this section after September 30, 2007.''.

[[Page 116 STAT. 2498]]

    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2359a (as added by section 242) the following new item:

``2359b. Defense Acquisition Challenge Program.''.

SEC. 244. <<NOTE: 10 USC 2302 note.>> ENCOURAGEMENT OF SMALL BUSINESSES 
            AND NONTRADITIONAL DEFENSE CONTRACTORS TO SUBMIT PROPOSALS 
            POTENTIALLY BENEFICIAL FOR COMBATING TERRORISM.

    (a) Establishment of Outreach Program.--During fiscal years 2003, 
2004, and 2005, the Secretary of Defense, acting through the Under 
Secretary of Defense for Acquisition, Technology, and Logistics, shall 
carry out a program of outreach to small businesses and nontraditional 
defense contractors for the purpose set forth in subsection (b).
    (b) Purpose.--The purpose of the outreach program is to provide a 
process for reviewing and evaluating research activities of, and new 
technologies being developed by, small businesses and nontraditional 
defense contractors that have the potential for meeting a defense 
requirement or technology development goal of the Department of Defense 
that relates to the mission of the Department of Defense to combat 
terrorism.
    (c) Goals.--The goals of the outreach program are as follows:
            (1) To increase efforts within the Department of Defense to 
        survey and identify research activities and new technologies 
        described in subsection (b).
            (2) To provide the Under Secretary of Defense for 
        Acquisition, Technology, and Logistics with a source of expert 
        advice on new technologies for combating terrorism.
            (3) To increase efforts to educate nontraditional defense 
        contractors on Department of Defense acquisition processes, 
        including regulations, procedures, funding opportunities, 
        military needs and requirements, and technology transfer so as 
        to encourage such contractors to submit proposals regarding 
        research activities and new technologies described in subsection 
        (b).
            (4) To increase efforts to provide timely response by the 
        Department of Defense to acquisition proposals (including 
        unsolicited proposals) submitted to the Department by small 
        businesses and by nontraditional defense contractors regarding 
        research activities and new technologies described in subsection 
        (b), including through the use of electronic transactions to 
        facilitate the processing of such proposals.

    (d) Review <<NOTE: Appointment.>> Panel.--(1) The Secretary shall 
appoint, under the outreach program, a panel for the review and 
evaluation of acquisition proposals described in subsection (c)(4).

    (2) The panel shall be composed of qualified personnel from the 
military departments, relevant Defense Agencies, industry, academia, and 
other private sector organizations.
    (3) <<NOTE: Procedures.>> Under procedures prescribed by the Under 
Secretary of Defense for Acquisition, Technology, and Logistics, a small 
business or nontraditional defense contractor may submit acquisition 
proposals for consideration under the program through the unsolicited 
proposal process or in response to a broad agency announcement. The 
Under Secretary shall issue on an annual basis not less than one such 
broad agency announcement inviting parties to submit proposals.

[[Page 116 STAT. 2499]]

    (4) <<NOTE: Procedures.>> Under procedures prescribed by the Under 
Secretary, the panel shall review and evaluate acquisition proposals 
selected by the panel. An acquisition proposal shall be selected for 
review and evaluation if the panel determines that the acquisition 
proposal may present a unique and valuable approach for meeting a 
defense requirement or technology development goal of the Department of 
Defense that relates to the mission of the Department of Defense to 
combat terrorism. In carrying out its duties under this paragraph, the 
panel may act through representatives designated by the panel.

    (5) <<NOTE: Deadlines.>> The panel shall--
            (A) not later than 60 days after the date on which the panel 
        receives an acquisition proposal described in subsection (c)(4), 
        transmit to the small business or nontraditional defense 
        contractor that submitted the proposal a notification regarding 
        whether the acquisition proposal has been selected under 
        paragraph (4) for review and evaluation;
            (B) to the maximum extent practicable, complete the review 
        and evaluation of each selected acquisition proposal not later 
        than 120 days after the date on which such proposal is selected 
        under paragraph (4); and
            (C) after completing the review and evaluation of an 
        acquisition proposal, transmit the results of that review and 
        evaluation to the small business or nontraditional defense 
        contractor that submitted the proposal.

    (6) The Secretary shall ensure that the panel, in reviewing and 
evaluating acquisition proposals under this subsection, has the 
authority to obtain assistance, to a reasonable extent, from the 
appropriate technical resources of the laboratories, research, 
development, and engineering centers, test and evaluation activities, 
and other elements of the Department of Defense.
    (7) If, after completing review and evaluation of an acquisition 
proposal, the panel determines that such proposal represents a unique 
and valuable approach for meeting a defense requirement or technology 
development goal of the Department of Defense that relates to the 
mission of the Department of Defense to combat terrorism, the panel 
shall submit that determination to the Under Secretary of Defense for 
Acquisition, Technology, and Logistics, together with any 
recommendations that the panel considers appropriate regarding such 
proposal.
    (8) The Under Secretary of Defense for Acquisition, Technology, and 
Logistics may provide funding for acquisition proposals with respect to 
which the panel has submitted a determination under paragraph (7) 
through appropriate accounts of the military departments, Defense 
Agencies, the Small Business Innovative Research program, or any other 
acquisition program.
    (9) The Secretary of Defense shall ensure that a member of the panel 
has no conflict of interest with respect to the review and evaluation of 
an acquisition proposal by the panel.
    (e) Nontraditional Defense Contractor Defined.--In this section, the 
term ``nontraditional defense contractor'' means an entity that has not, 
for at least one year prior to the date of the enactment of this Act, 
entered into, or performed with respect to, any contract described in 
paragraph (1) or (2) of section 845(e) of the National Defense 
Authorization Act for Fiscal Year 1994 (10 U.S.C. 2371 note).

[[Page 116 STAT. 2500]]

SEC. 245. <<NOTE: 10 USC 2358 note.>> VEHICLE FUEL CELL PROGRAM.

    (a) Program Required.--The Secretary of Defense shall carry out a 
program for the development of vehicle fuel cell technology.
    (b) Goals and Objectives.--The goals and objectives of the program 
shall be as follows:
            (1) To identify and support technological advances that are 
        necessary for the development of fuel cell technology for use in 
        vehicles of types to be used by the Department of Defense.
            (2) To ensure that critical technology advances are shared 
        among the various fuel cell technology programs within the 
        Federal Government.
            (3) To maximize the leverage of Federal funds that are used 
        for the development of fuel cell technology.

    (c) Content of Program.--The program shall include--
            (1) development of vehicle propulsion technologies and fuel 
        cell auxiliary power units, together with pilot projects for the 
        demonstration of such technologies, as appropriate; and
            (2) development of technologies necessary to address 
        critical issues with respect to vehicle fuel cells, such as 
        issues relating to hydrogen storage and hydrogen fuel 
        infrastructure.

    (d) Cooperation With Industry.--(1) The Secretary shall carry out 
the program in cooperation with companies selected by the Secretary. The 
Secretary shall select such companies from among--
            (A) companies in the automobile and truck manufacturing 
        industry;
            (B) companies in the business of supplying systems and 
        components to that industry; and
            (C) companies in any other industries that the Secretary 
        considers appropriate.

    (2) The Secretary may enter into a cooperative agreement with one or 
more companies selected under paragraph (1) to establish an entity for 
carrying out activities required by subsection (c).
    (3) The Secretary shall ensure that companies referred to in 
paragraph (1) collectively contribute, in cash or in kind, not less than 
one-half of the total cost of carrying out the program under this 
section.
    (e) Coordination With Other Federal Agencies.--The Secretary shall 
carry out the program using a coordinating mechanism for sharing 
information and resources with the Department of Energy and other 
Federal agencies.
    (f) Intial Funding.--Of the funds authorized to be appropriated by 
section 201(4), $10,000,000 shall be available for the program required 
by this section.

SEC. 246. <<NOTE: 10 USC 2358 note.>> DEFENSE NANOTECHNOLOGY RESEARCH 
            AND DEVELOPMENT PROGRAM.

    (a) Establishment.--The Secretary of Defense shall carry out a 
defense nanotechnology research and development program.
    (b) Purposes.--The purposes of the program are as follows:
            (1) To ensure United States global superiority in 
        nanotechnology necessary for meeting national security 
        requirements.
            (2) To coordinate all nanoscale research and development 
        within the Department of Defense, and to provide for interagency 
        cooperation and collaboration on nanoscale research

[[Page 116 STAT. 2501]]

        and development between the Department of Defense and other 
        departments and agencies of the United States that are involved 
        in nanoscale research and development.
            (3) To develop and manage a portfolio of fundamental and 
        applied nanoscience and engineering research initiatives that is 
        stable, consistent, and balanced across scientific disciplines.
            (4) To accelerate the transition and deployment of 
        technologies and concepts derived from nanoscale research and 
        development into the Armed Forces, and to establish policies, 
        procedures, and standards for measuring the success of such 
        efforts.
            (5) To collect, synthesize, and disseminate critical 
        information on nanoscale research and development.

    (c) Administration.--In carrying out the program, the Secretary 
shall act through the Director of Defense Research and Engineering, who 
shall supervise the planning, management, and coordination of the 
program. The Director, in consultation with the Secretaries of the 
military departments and the heads of participating Defense Agencies and 
other departments and agencies of the United States, shall--
            (1) prescribe a set of long-term challenges and a set of 
        specific technical goals for the program;
            (2) develop a coordinated and integrated research and 
        investment plan for meeting the long-term challenges and 
        achieving the specific technical goals that builds upon the 
        Department's increased investment in nanotechnology research and 
        development and the National Nanotechnology Initiative; and
            (3) develop memoranda of agreement, joint funding 
        agreements, and other cooperative arrangements necessary for 
        meeting the long-term challenges and achieving the specific 
        technical goals.

    (d) Annual <<NOTE: Deadline.>> Report.--Not later than March 1 of 
each of 2004, 2005, 2006, and 2007, the Director of Defense Research and 
Engineering shall submit to the congressional defense committees a 
report on the program. The report shall contain the following matters:
            (1) A review of--
                    (A) the long-term challenges and specific technical 
                goals of the program; and
                    (B) the progress made toward meeting those 
                challenges and achieving those goals.
            (2) An assessment of current and proposed funding levels, 
        including the adequacy of such funding levels to support program 
        activities.
            (3) A review of the coordination of activities within the 
        Department of Defense, with other departments and agencies, and 
        with the National Nanotechnology Initiative.
            (4) An assessment of the extent to which effective 
        technology transition paths have been established as a result of 
        activities under the program.
            (5) Recommendations for additional program activities to 
        meet emerging national security requirements.

[[Page 116 STAT. 2502]]

SEC. 247. ACTIVITIES OF THE DEFENSE EXPERIMENTAL PROGRAM TO STIMULATE 
            COMPETITIVE RESEARCH.

    Subsection (c) of section 257 of the National Defense Authorization 
Act for Fiscal Year 1995 (Public Law 103-337; 10 U.S.C. 2358 note) is 
amended--
            (1) in paragraph (1), by striking ``research grants'' and 
        inserting ``grants for research and instrumentation to support 
        such research''; and
            (2) by adding at the end the following new paragraph:
            ``(3) Any other activities that are determined necessary to 
        further the achievement of the objectives of the program.''.

SEC. 248. FOUR-YEAR EXTENSION OF AUTHORITY OF DARPA TO AWARD PRIZES FOR 
            ADVANCED TECHNOLOGY ACHIEVEMENTS AND ADDITIONAL AUTHORITY OF 
            MILITARY DEPARTMENTS AND DEFENSE AGENCIES TO AWARD PRIZES 
            FOR ACHIEVEMENTS IN PROMOTING EDUCATION.

    (a) Extension.--Section 2374a(f) of title 10, United States Code, is 
amended by striking ``September 30, 2003'' and inserting ``September 30, 
2007''.
    (b) Report <<NOTE: Deadline.>> on Administration of Program.--(1) 
Not later than December 31, 2002, the Director of the Defense Advanced 
Research Projects Agency shall submit to the congressional defense 
committees a report on the proposal of the Director for the 
administration of the program to award prizes for advanced technology 
achievements under section 2374a of title 10, United States Code.

    (2) The report shall include the following:
            (A) The results of consultations by the Director with 
        officials of the military departments regarding the technology 
        areas for which competitive prizes would be established.
            (B) A description of the proposed goals of the competitions 
        that would be established under the program, including the 
        technology areas to be promoted by the competitions and the 
        relationship of such areas to military missions of the 
        Department of Defense.
            (C) The proposed rules for the competitions that would be 
        established under the program and a description of the proposed 
        management of the competitions.
            (D) A description of the manner in which the amounts of the 
        cash prizes awarded and claimed under the program would be 
        allocated among the accounts of the Defense Advanced Research 
        Projects Agency for recording as obligations and expenditures.
            (E) For each competition that would be established under the 
        program, a statement of the reasons why the competition is a 
        preferable means of promoting basic, advanced, and applied 
        research, advanced technology development, or prototype 
        projects, rather than other means of promoting such activities, 
        including contracts, grants, cooperative agreements, and other 
        transactions.

    (c) Additional Authority to Award Cash Prizes for Promoting 
Education in Support of DoD Missions.--(1) Chapter 139 of title 10, 
United States Code, is amended by adding at the end the following new 
section:

[[Page 116 STAT. 2503]]

``Sec. 2374b. Prizes for achievements in promoting science, mathematics, 
                        engineering, or technology education

    ``(a) Authority.--The Secretaries of the military departments and 
the heads of defense agencies may each carry out a program to award cash 
prizes in recognition of outstanding achievements that are designed to 
promote science, mathematics, engineering, or technology education in 
support of the missions of the Department of Defense.
    ``(b) Competition Requirements.--Each program under subsection (a) 
shall use a competitive process for the selection of recipients of cash 
prizes.
    ``(c) Limitation.--For any single program under subsection (a), the 
total amount made available for award of cash prizes in a fiscal year 
may not exceed $1,000,000.
    ``(d) Relationship to Other Authority.--The program under subsection 
(a) may be carried out in conjunction with or in addition to the 
exercise of any other authority to acquire, support, or stimulate basic 
and applied research, advanced technology development, or prototype 
development projects.
    ``(e) Annual Report.--Promptly after the end of each fiscal year, 
each Secretary of a military department and each head of a defense 
agency carrying out a program under subsection (a) shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives a report on the administration of that program for that 
fiscal year.
    ``(f) Period of Authority.--The authority to award prizes under 
subsection (a) shall terminate at the end of September 30, 2006.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``2374b. Prizes for achievements in promoting science, mathematics, 
           engineering, or technology education.''.

SEC. 249. PLAN FOR FIVE-YEAR PROGRAM FOR ENHANCEMENT OF MEASUREMENT AND 
            SIGNATURES INTELLIGENCE CAPABILITIES OF THE UNITED STATES 
            THROUGH INCORPORATION OF RESULTS OF BASIC RESEARCH ON 
            SENSORS.

    (a) Congressional Finding.--Congress finds that the national 
interest will be served by the rapid exploitation of basic research on 
sensors for purposes of enhancing the measurement and signatures 
intelligence (MASINT) capabilities of the United States.
    (b) Plan <<NOTE: Deadline.>> for Research Program.--(1) Not later 
than March 31, 2003, the Secretary of Defense shall submit to Congress a 
plan for a five-year program of research intended to provide for the 
incorporation of the results of basic research on sensors into the 
measurement and signatures intelligence systems of the United States, to 
the extent the results of such research is applicable to such systems. 
Such program shall include the review and assessment of basic research 
on sensors for purpose of such incorporation, including both basic 
research on sensors conducted by the Government and basic research on 
sensors conducted by non-governmental entities.

    (2) The plan submitted under paragraph (1) shall provide that the 
activities to be carried out under the program provided for

[[Page 116 STAT. 2504]]

in the plan shall be carried out by a consortium consisting of such 
governmental and non-governmental entities as the Secretary considers 
appropriate for purposes of incorporating the broadest practicable range 
of sensor capabilities into the systems referred to in paragraph (1). 
The consortium may include national laboratories, universities, and 
private sector entities.
    (3) The plan shall include a proposal for the funding of activities 
under the five-year program provided for in the plan, including cost-
sharing by non-governmental participants in the consortium under 
paragraph (2).

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Grant to National Guard Youth Foundation.

                  Subtitle B--Environmental Provisions

Sec. 311. Enhancement of authority on cooperative agreements for 
           environmental purposes.
Sec. 312. Single point of contact for policy and budgeting issues 
           regarding unexploded ordnance, discarded military munitions, 
           and munitions constituents.
Sec. 313. Authority to carry out construction projects for environmental 
           responses.
Sec. 314. Procurement of environmentally preferable procurement items.
Sec. 315. Incidental taking of migratory birds during military readiness 
           activities.

   Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 321. Authority for each military department to provide base 
           operating support to Fisher Houses.
Sec. 322. Use of commissary stores and MWR retail facilities by members 
           of National Guard serving in national emergency.
Sec. 323. Uniform funding and management of morale, welfare, and 
           recreation programs.
Sec. 324. Rebate agreements under the special supplemental food program.

                 Subtitle D--Workplace and Depot Issues

Sec. 331. Notification requirements in connection with required studies 
           for conversion of commercial or industrial type functions to 
           contractor performance.
Sec. 332. Temporary authority for contractor performance of security-
           guard functions to meet increased requirements since 
           September 11, 2001.
Sec. 333. Repeal of obsolete provision regarding depot-level maintenance 
           and repair workloads that were performed at closed or 
           realigned military installations.
Sec. 334. Exclusion of certain expenditures from limitation on private 
           sector performance of depot-level maintenance.

                Subtitle E--Defense Dependents Education

Sec. 341. Assistance to local educational agencies that benefit 
           dependents of members of the Armed Forces and Department of 
           Defense civilian employees.
Sec. 342. Housing benefits for unaccompanied teachers required to live 
           at Guantanamo Bay Naval Station, Cuba.
Sec. 343. Options for funding dependent summer school programs.
Sec. 344. Impact aid eligibility for local educational agencies affected 
           by privatization of military housing.
Sec. 345. Comptroller General study of adequacy of compensation provided 
           for teachers in the Department of Defense Overseas 
           Dependents' Schools.

                   Subtitle F--Information Technology

Sec. 351. Annual submission of information regarding information 
           technology capital assets.

[[Page 116 STAT. 2505]]

Sec. 352. Policy regarding acquisition of information assurance and 
           information assurance-enabled information technology 
           products.
Sec. 353. Installation and connection policy and procedures regarding 
           Defense Switch Network.

                        Subtitle G--Other Matters

Sec. 361. Distribution of monthly reports on allocation of funds within 
           operation and maintenance budget subactivities.
Sec. 362. Continuation of arsenal support program initiative.
Sec. 363. Extension of work safety demonstration program.
Sec. 364. Condition on authority of Defense Security Service to impose 
           fees on fee-for-service basis.
Sec. 365. Logistics support and services for weapon systems contractors.
Sec. 366. Training range sustainment plan, Global Status of Resources 
           and Training System, and training range inventory.
Sec. 367. Engineering study and environmental analysis of road 
           modifications in vicinity of Fort Belvoir, Virginia.
Sec. 368. Reauthorization of warranty claims recovery pilot program.
Sec. 369. Expanded eligibility for loan, gift, or exchange of documents, 
           historical artifacts, and condemned or obsolete combat 
           materiel.

               Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal year 2003 
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, $23,922,251,000.
            (2) For the Navy, $29,264,939,000.
            (3) For the Marine Corps, $3,559,636,000.
            (4) For the Air Force, $27,419,488,000.
            (5) For Defense-wide activities, $14,145,310,000.
            (6) For the Army Reserve, $1,985,110,000.
            (7) For the Naval Reserve, $1,233,759,000.
            (8) For the Marine Corps Reserve, $189,532,000.
            (9) For the Air Force Reserve, $2,160,604,000.
            (10) For the Army National Guard, $4,155,067,000.
            (11) For the Air National Guard, $4,104,810,000.
            (12) For the Defense Inspector General, $155,165,000.
            (13) For the United States Court of Appeals for the Armed 
        Forces, $9,614,000.
            (14) For Environmental Restoration, Army, $395,900,000.
            (15) For Environmental Restoration, Navy, $256,948,000.
            (16) For Environmental Restoration, Air Force, $389,773,000.
            (17) For Environmental Restoration, Defense-wide, 
        $23,498,000.
            (18) For Environmental Restoration, Formerly Used Defense 
        Sites, $252,102,000.
            (19) For Overseas Humanitarian, Disaster, and Civic Aid 
        programs, $58,400,000.
            (20) For Drug Interdiction and Counter-drug Activities, 
        Defense-wide, $859,907,000.
            (21) For the Kaho'olawe Island Conveyance, Remediation, and 
        Environmental Restoration Trust Fund, $25,000,000.
            (22) For Defense Health Program, $14,123,038,000.
            (23) For Cooperative Threat Reduction programs, 
        $416,700,000.

[[Page 116 STAT. 2506]]

            (24) For Support for International Sporting Competitions, 
        Defense, $19,000,000.
            (25) For overseas contingency operations transfer fund, 
        $17,844,000.

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 2003 
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, $387,156,000
            (2) For the National Defense Sealift Fund, $934,129,000.
            (3) For the Defense Commissary Agency Working Capital Fund, 
        $969,200,000.
            (4) For the Pentagon Reservation Maintenance Revolving Fund, 
        $328,000,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

    There is hereby authorized to be appropriated for fiscal year 2003 
from the Armed Forces Retirement Home Trust Fund the sum of $69,921,000 
for the operation of the Armed Forces Retirement Home.

SEC. 304. GRANT TO NATIONAL GUARD YOUTH FOUNDATION.

    Of the amount authorized to be appropriated by section 301(5) for 
administrative and service-wide activities for civil-military programs, 
the Secretary of Defense may use up to $2,500,000 to make a grant to the 
National Guard Youth Foundation to support the efforts of the Foundation 
to mobilize individuals, groups, and organizations to build and 
strengthen the character and competence of youth in the United States.

                  Subtitle B--Environmental Provisions

SEC. 311. ENHANCEMENT OF AUTHORITY ON COOPERATIVE AGREEMENTS FOR 
            ENVIRONMENTAL PURPOSES.

    Section 2701(d) of title 10, United States Code, is amended--
            (1) in paragraph (1), by striking ``paragraph (2)'' and 
        inserting ``paragraph (3)'';
            (2) by redesignating paragraphs (2) and (3) as paragraphs 
        (3) and (4), respectively; and
            (3) by inserting after paragraph (1) the following new 
        paragraph (2):
            ``(2) Cross-fiscal year agreements.--An agreement with an 
        agency under paragraph (1) may be for a period that begins in 
        one fiscal year and ends in another fiscal year so long as the 
        period of the agreement does not exceed two years.''.

SEC. 312. SINGLE POINT OF CONTACT FOR POLICY AND BUDGETING ISSUES 
            REGARDING UNEXPLODED ORDNANCE, DISCARDED MILITARY MUNITIONS, 
            AND MUNITIONS CONSTITUENTS.

    Section 2701 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(k) UXO <<NOTE: Establishment.>> Program Manager.--(1) The 
Secretary of Defense shall establish a program manager who shall serve 
as the single

[[Page 116 STAT. 2507]]

point of contact in the Department of Defense for policy and budgeting 
issues involving the characterization, remediation, and management of 
explosive and related risks with respect to unexploded ordnance, 
discarded military munitions, and munitions constituents at defense 
sites (as such terms are defined in section 2710 of this title) that 
pose a threat to human health or safety.

    ``(2) The authority to establish the program manager may be 
delegated to the Secretary of a military department, who may delegate 
the authority to the Under Secretary of that military department. The 
authority may not be further delegated.
    ``(3) The program manager may establish an independent advisory and 
review panel that may include representatives of the National Academy of 
Sciences, nongovernmental organizations with expertise regarding 
unexploded ordnance, discarded military munitions, or munitions 
constituents, the Environmental Protection Agency, States (as defined in 
section 2710 of this title), and tribal governments. If established, the 
panel shall report annually to Congress on progress made by the 
Department of Defense to address unexploded ordnance, discarded military 
munitions, or munitions constituents at defense sites and make such 
recommendations as the panel considers appropriate.''.

SEC. 313. AUTHORITY TO CARRY OUT CONSTRUCTION PROJECTS FOR ENVIRONMENTAL 
            RESPONSES.

    (a) Restatement and Modification of Authority.--Chapter 160 of title 
10, United States Code, is amended--
            (1) by redesignating section 2707 as section 2700 and 
        transferring such section to appear immediately after the table 
        of sections at the beginning of such chapter; and
            (2) by inserting after section 2706 the following new 
        section 2707:

``Sec. 2707. Environmental restoration projects for environmental 
                        responses

    ``(a) Environmental Restoration Projects Authorized.--The Secretary 
of Defense or the Secretary of a military department may carry out an 
environmental restoration project if that Secretary determines that the 
project is necessary to carry out a response under this chapter or 
CERCLA.
    ``(b) Treatment of Project.--Any construction, development, 
conversion, or extension of a structure, and any installation of 
equipment, that is included in an environmental restoration project 
under this section may not be considered military construction (as that 
term is defined in section 2801(a) of this title).
    ``(c) Source of Funds.--Funds authorized for deposit in an account 
established by section 2703(a) of this title shall be the only source of 
funds to conduct an environmental restoration project under this 
section.
    ``(d) Environmental Restoration Project Defined.--In this section, 
the term `environmental restoration project' includes any construction, 
development, conversion, or extension of a structure, or installation of 
equipment, in direct support of a response.''.
    (b) Repeal of Superseded Provision.--Section 2810 of such title is 
repealed.
    (c) Conforming Amendments.--Chapter 160 of such title is further 
amended--
            (1) in section 2700 (as redesignated by subsection (a))--

[[Page 116 STAT. 2508]]

                    (A) by redesignating paragraphs (1) and (2) as 
                paragraphs (2) and (3), respectively; and
                    (B) by inserting after ``In this chapter:'' the 
                following new paragraph:
            ``(1) The term `CERCLA' means the Comprehensive 
        Environmental Response, Compensation, and Liability Act of 1980 
        (42 U.S.C. 9601 et seq.).''; and
            (2) in section 2701(a)(2), by striking ``the Comprehensive 
        Environmental Response, Compensation, and Liability Act of 1980 
        (hereinafter in this chapter referred to as `CERCLA') (42 U.S.C. 
        9601 et seq.)'' and inserting ``CERCLA''.

    (d) Clerical Amendments.--(1) The table of sections at the beginning 
of chapter 160 of such title is amended--
            (A) by inserting before the item relating to section 2701 
        the following new item:

``2700. Definitions.'';

        and

            (B) by striking the item relating to section 2707 and 
        inserting the following new item:

``2707. Environmental restoration projects for environmental 
           responses.''.

    (2) The table of sections at the beginning of chapter 169 of such 
title is amended by striking the item relating to section 2810.

SEC. 314. <<NOTE: 10 USC 2302 note.>> PROCUREMENT OF ENVIRONMENTALLY 
            PREFERABLE PROCUREMENT ITEMS.

    (a) Tracking System.--The Secretary of Defense shall develop and 
implement an effective and efficient tracking system to identify the 
extent to which the Defense Logistics Agency procures environmentally 
preferable procurement items or procurement items made with recovered 
material. The system shall provide for the separate tracking, to the 
maximum extent practicable, of the procurement of each category of 
procurement items that, as of the date of the enactment of this Act, has 
been determined to be environmentally preferable or made with recovered 
material.
    (b) Assessment of Training and Education.--The Secretary of Defense 
shall assess the need to establish a program, or enhance existing 
programs, for training and educating Department of Defense procurement 
officials to ensure that they are aware of any Department requirements, 
preferences, or goals for the procurement of environmentally preferable 
procurement items or procurement items made with recovered material.
    (c) Reporting <<NOTE: Deadlines.>> Requirement.--Not later than 
March 1, 2004, and each March 1 thereafter through 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 detailing the results obtained from the tracking system developed 
under subsection (a).

    (d) Relation to Other Laws.--Nothing in this section shall be 
construed to alter the requirements of the Solid Waste Disposal Act (40 
U.S.C. 6901 et seq.).
    (e) Definitions.--In this section:
            (1) The term ``environmentally preferable'', in the case of 
        a procurement item, means that the item has a lesser or reduced 
        effect on human health and the environment when compared with 
        competing products that serve the same purpose.

[[Page 116 STAT. 2509]]

        The comparison may consider raw materials acquisition, 
        production, manufacturing, packaging, distribution, reuse, 
        operation, maintenance, or disposal of the product.
            (2) The terms ``procurement item'' and ``recovered 
        material'' have the meanings given such terms in section 1004 of 
        the Solid Waste Disposal Act (40 U.S.C. 6903).

SEC. 315. <<NOTE: 16 USC 703 note.>> INCIDENTAL TAKING OF MIGRATORY 
            BIRDS DURING MILITARY READINESS ACTIVITIES.

    (a) Interim Authority for Incidental Takings.--During the period 
described in subsection (c), section 2 of the Migratory Bird Treaty Act 
(16 U.S.C. 703) shall not apply to the incidental taking of a migratory 
bird by a member of the Armed Forces during a military readiness 
activity authorized by the Secretary of Defense or the Secretary of the 
military department concerned.
    (b) Identification of Measures to Minimize Impact of Activities.--
During the periods described in subsections (c) and (d), the Secretary 
of Defense shall, in consultation with the Secretary of the Interior, 
identify measures--
            (1) to minimize and mitigate, to the extent practicable, any 
        adverse impacts of authorized military readiness activities on 
        affected species of migratory birds; and
            (2) to monitor the impacts of such military readiness 
        activities on affected species of migratory birds.

    (c) Period <<NOTE: Federal Register, publication.>> of Application 
for Interim Authority.--The period described in this subsection is the 
period beginning on the date of the enactment of this Act and ending on 
the date on which the Secretary of the Interior publishes in the Federal 
Register a notice that--
            (1) regulations authorizing the incidental taking of 
        migratory birds by members of the Armed Forces have been 
        prescribed in accordance with the requirements of subsection 
        (d);
            (2) all legal challenges to the regulations and to the 
        manner of their promulgation (if any) have been exhausted as 
        provided in subsection (e); and
            (3) the regulations have taken effect.

    (d) Incidental <<NOTE: Deadline. Regulations.>> Takings After 
Interim Period.--(1) Not later than the expiration of the one-year 
period beginning on the date of the enactment of this Act, the Secretary 
of the Interior shall exercise the authority of that Secretary under 
section 3(a) of the Migratory Bird Treaty Act (16 U.S.C. 704(a)) to 
prescribe regulations to exempt the Armed Forces for the incidental 
taking of migratory birds during military readiness activities 
authorized by the Secretary of Defense or the Secretary of the military 
department concerned.

    (2) The Secretary of the Interior shall exercise authority under 
paragraph (1) with the concurrence of the Secretary of Defense.
    (e) Limitation <<NOTE: Deadline.>> on Judicial Review.--An action 
seeking judicial review of regulations prescribed pursuant to this 
section or of the manner of their promulgation must be filed in the 
appropriate Federal court by not later than the expiration of the 120-
day period beginning on the date on which such regulations are published 
in the Federal Register. Upon the expiration of such period and the 
exhaustion of any legal challenges to the regulations pursuant to any 
action filed in such period, there shall be no further judicial review 
of such regulations or of the manner of their promulgation.

[[Page 116 STAT. 2510]]

    (f) Military Readiness Activity.--(1) In this section the term 
``military readiness activity'' includes--
            (A) all training and operations of the Armed Forces that 
        relate to combat; and
            (B) the adequate and realistic testing of military 
        equipment, vehicles, weapons, and sensors for proper operation 
        and suitability for combat use.

    (2) The term does not include--
            (A) the routine operation of installation operating support 
        functions, such as administrative offices, military exchanges, 
        commissaries, water treatment facilities, storage facilities, 
        schools, housing, motor pools, laundries, morale, welfare, and 
        recreation activities, shops, and mess halls;
            (B) the operation of industrial activities; or
            (C) the construction or demolition of facilities used for a 
        purpose described in subparagraph (A) or (B).

   Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

SEC. 321. AUTHORITY FOR EACH MILITARY DEPARTMENT TO PROVIDE BASE 
            OPERATING SUPPORT TO FISHER HOUSES.

    Section 2493(f) of title 10, United States Code, is amended to read 
as follows:
    ``(f) Base Operating Support.--The Secretary of a military 
department may provide base operating support for Fisher Houses 
associated with health care facilities of that military department.''.

SEC. 322. USE OF COMMISSARY STORES AND MWR RETAIL FACILITIES BY MEMBERS 
            OF NATIONAL GUARD SERVING IN NATIONAL EMERGENCY.

    (a) Additional Basis for Authorized Use.--Section 1063a of title 10, 
United States Code, is amended--
            (1) in subsection (a), by inserting ``or national 
        emergency'' after ``federally declared disaster''; and
            (2) in subsection (c), by adding at the end the following 
        new paragraph:
            ``(3) National emergency.--The term `national emergency' 
        means a national emergency declared by the President or 
        Congress.''.

    (b) Clerical Amendments.--(1) The heading of such section is amended 
to read as follows:

``Sec. 1063a. Use of commissary stores and MWR retail facilities: 
                        members of National Guard serving in federally 
                        declared disaster or national emergency''.

    (2) The table of sections at the beginning of chapter 54 of such 
title is amended by striking the item relating to section 1063a and 
inserting the following new item:

``1063a. Use of commissary stores and MWR retail facilities: members of 
           National Guard serving in federally declared disaster or 
           national emergency.''.

SEC. 323. UNIFORM FUNDING AND MANAGEMENT OF MORALE, WELFARE, AND 
            RECREATION PROGRAMS.

    (a) In General.--Chapter 147 of title 10, United States Code, is 
amended by adding at the end the following new section:

[[Page 116 STAT. 2511]]

``Sec. 2494. Uniform funding and management of morale, welfare, and 
                        recreation programs

    ``(a) Authority <<NOTE: Regulations.>> for Uniform Funding and 
Management.--Under regulations prescribed by the Secretary of Defense, 
funds appropriated to the Department of Defense and available for 
morale, welfare, and recreation programs may be treated as 
nonappropriated funds and expended in accordance with laws applicable to 
the expenditures of nonappropriated funds. When made available for 
morale, welfare, and recreation programs under such regulations, 
appropriated funds shall be considered to be nonappropriated funds for 
all purposes and shall remain available until expended.

    ``(b) Conditions on Availability.--Funds appropriated to the 
Department of Defense may be made available to support a morale, 
welfare, or recreation program only if the program is authorized to 
receive appropriated fund support and only in the amounts the program is 
authorized to receive.
    ``(c) Conversion of Employment Positions.--(1) The Secretary of 
Defense may identify positions of employees in morale, welfare, and 
recreation programs within the Department of Defense who are paid with 
appropriated funds whose status may be converted from the status of an 
employee paid with appropriated funds to the status of an employee of a 
nonappropriated fund instrumentality.
    ``(2) The status of an employee in a position identified by the 
Secretary under paragraph (1) may, with the consent of the employee, be 
converted to the status of an employee of a nonappropriated fund 
instrumentality. An employee who does not consent to the conversion may 
not be removed from the position because of the failure to provide such 
consent.
    ``(3) The conversion of an employee from the status of an employee 
paid by appropriated funds to the status of an employee of a 
nonappropriated fund instrumentality shall be without a break in service 
for the concerned employee. The conversion shall not entitle an employee 
to severance pay, back pay or separation pay under subchapter IX of 
chapter 55 of title 5, or be considered an involuntary separation or 
other adverse personnel action entitling an employee to any right or 
benefit under such title or any other provision of law or regulation.
    ``(4) In this subsection, the term `an employee of a nonappropriated 
fund instrumentality' means an employee described in section 2105(c) of 
title 5.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2494. Uniform funding and management of morale, welfare, and 
           recreation programs.''.

SEC. 324. REBATE AGREEMENTS UNDER THE SPECIAL SUPPLEMENTAL FOOD PROGRAM.

    (a) Applicability to Navy Exchange Markets.--Paragraph (1)(A) of 
section 1060a(e) of title 10, United States Code, is amended by 
inserting ``or Navy Exchange Markets'' after ``commissary stores''.
    (b) Increased Maximum Period of Agreement.--Paragraph (3) of such 
section is amended by striking ``subsection may not exceed one year'' in 
the first sentence and inserting ``subsection, including any period of 
extension of the contract by modification

[[Page 116 STAT. 2512]]

of the contract, exercise of an option, or other cause, may not exceed 
three years''.

                 Subtitle D--Workplace and Depot Issues

SEC. 331. NOTIFICATION REQUIREMENTS IN CONNECTION WITH REQUIRED STUDIES 
            FOR CONVERSION OF COMMERCIAL OR INDUSTRIAL TYPE FUNCTIONS TO 
            CONTRACTOR PERFORMANCE.

    Subsection (c) of section 2461 of title 10, United States Code, is 
amended to read as follows:
    ``(c) Submission <<NOTE: Reports.>> of Analysis Results.--(1) Upon 
the completion of an analysis of a commercial or industrial type 
function described in subsection (a) for possible change to performance 
by the private sector, the Secretary of Defense shall submit to Congress 
a report containing the results of the analysis, including the results 
of the examinations required by subsection (b)(3).

    ``(2) The report shall also contain the following:
            ``(A) The date when the analysis of the function was 
        commenced.
            ``(B) The Secretary's certification that the Government 
        calculation of the cost of performance of the function by 
        Department of Defense civilian employees is based on an estimate 
        of the most cost effective manner for performance of the 
        function by Department of Defense civilian employees.
            ``(C) The number of Department of Defense civilian employees 
        who were performing the function when the analysis was commenced 
        and the number of such employees whose employment was or will be 
        terminated or otherwise affected by changing to performance of 
        the function by the private sector or by implementation of the 
        most efficient organization of the function.
            ``(D) The Secretary's certification that the factors 
        considered in the examinations performed under subsection 
        (b)(3), and in the making of the decision regarding changing to 
        performance of the function by the private sector or retaining 
        performance in the most efficient organization of the function, 
        did not include any predetermined personnel constraint or 
        limitation in terms of man years, end strength, full-time 
        equivalent positions, or maximum number of employees.
            ``(E) A statement of the potential economic effect of 
        implementing the decision regarding changing to performance of 
        the function by the private sector or retaining performance in 
        the most efficient organization of the function on each affected 
        local community, as determined in the examination under 
        subsection (b)(3)(B)(ii).
            ``(F) A schedule for completing the change to performance of 
        the function by the private sector or implementing the most 
        efficient organization of the function.
            ``(G) In the case of a commercial or industrial type 
        function performed at a Center of Industrial and Technical 
        Excellence designated under section 2474(a) of this title or an 
        Army ammunition plant, a description of the effect that the 
        manner of performance of the function, and administration of the 
        resulting contract if any, will have on the overhead costs of 
        the center or ammunition plant, as the case may be.

[[Page 116 STAT. 2513]]

            ``(H) The Secretary's certification that the entire analysis 
        is available for examination.

    ``(3)(A) If a decision is made to change the commercial or 
industrial type function that was the subject of the analysis to 
performance by the private sector, the change of the function to 
contractor performance may not begin until after the submission of the 
report required by paragraph (1).
    ``(B) Notwithstanding subparagraph (A), in the case of a commercial 
or industrial type function performed at a Center of Industrial and 
Technical Excellence designated under section 2474(a) of this title or 
an Army ammunition plant, the change of the function to contractor 
performance may not begin until at least 60 days after the submission of 
the report.''.

SEC. 332. TEMPORARY AUTHORITY FOR CONTRACTOR PERFORMANCE OF SECURITY-
            GUARD FUNCTIONS TO MEET INCREASED REQUIREMENTS SINCE 
            SEPTEMBER 11, 2001.

    (a) Contract Authority.--The Secretary of Defense or the Secretary 
of a military department may enter into a contract for any increased 
performance of security-guard functions at a military installation or 
facility under the jurisdiction of the Secretary undertaken in response 
to the terrorist attacks on the United States on September 11, 2001, and 
may waive the prohibition under section 2465(a) of title 10, United 
States Code, with respect to such contract, if--
            (1) without the contract, members of the Armed Forces are or 
        would be used to perform the increased security-guard functions; 
        and
            (2) the Secretary concerned determines that--
                    (A) the recruiting and training standards for the 
                personnel who are to perform the security-guard 
                functions at the installation or facility under the 
                contract are comparable to the recruiting and training 
                standards for the personnel of the Department of Defense 
                who perform security-guard functions at military 
                installations and facilities under the jurisdiction of 
                the Secretary;
                    (B) the contractor personnel performing such 
                functions under the contract will be effectively 
                supervised, reviewed, and evaluated; and
                    (C) the performance of such functions by the 
                contractor personnel will not result in a reduction in 
                the security of the installation or facility.

    (b) Increased Performance Defined.--In this section, the term 
``increased performance'', with respect to security-guard functions at a 
military installation or facility, means--
            (1) in the case of an installation or facility where no 
        security-guard functions were performed as of September 10, 
        2001, the entire scope or extent of the performance of security-
        guard functions at the installation or facility after such date; 
        and
            (2) in the case of an installation or facility where 
        security-guard functions were performed within a lesser scope of 
        requirements or to a lesser extent as of September 10, 2001, 
        than after such date, the increment of the performance of 
        security-guard functions at the installation or facility that 
        exceeds such lesser scope of requirements or extent of 
        performance.

    (c) Expiration of Authority.--The authority for contractor 
performance of security-guard functions under this section shall

[[Page 116 STAT. 2514]]

terminate at the end of the three-year period beginning on the date of 
the enactment of this Act. The term of any contract entered into using 
the authority provided by this section may not extend beyond the end of 
such period.
    (d) Needs <<NOTE: Deadline.>> Assessment and Plan.--Not later than 
180 days after the date of the enactment of this Act, the Secretary of 
Defense shall--
            (1) identify any requirements for the performance of 
        security-guard functions at military installations and 
        facilities under the jurisdiction of the Secretary or the 
        Secretary of a military department that are expected to continue 
        for more than three years after the date of the enactment of 
        this Act and, in the absence of further action by the Secretary 
        or Congress, would otherwise be performed by members of the 
        Armed Forces; and
            (2) submit to the congressional defense committees a plan 
        for meeting those requirements on a long-term basis.

SEC. 333. REPEAL OF OBSOLETE PROVISION REGARDING DEPOT-LEVEL MAINTENANCE 
            AND REPAIR WORKLOADS THAT WERE PERFORMED AT CLOSED OR 
            REALIGNED MILITARY INSTALLATIONS.

    (a) Repeal.--Section 2469a of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 146 of such title is amended by striking the item relating to 
section 2469a.

SEC. 334. EXCLUSION OF CERTAIN EXPENDITURES FROM LIMITATION ON PRIVATE 
            SECTOR PERFORMANCE OF DEPOT-LEVEL MAINTENANCE.

    Section 2474(f) of title 10, United States Code, is amended--
            (1) in paragraph (1), by striking ``Amounts expended out of 
        funds described in paragraph (2) for the performance of a depot-
        level maintenance and repair workload by non-Federal Government 
        personnel at a Center of Industrial and Technical Excellence'' 
        and inserting ``Amounts expended for the performance of a depot-
        level maintenance and repair workload by non-Federal Government 
        personnel at a Center of Industrial and Technical Excellence 
        under any contract entered into during fiscal years 2003 through 
        2006'';
            (2) by striking paragraph (2); and
            (3) by redesignating paragraph (3) as paragraph (2).

                Subtitle E--Defense Dependents Education

SEC. 341. 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 
2003.--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.

[[Page 116 STAT. 2515]]

    (b) Notification.--Not <<NOTE: Deadline.>> later than June 30, 2003, 
the Secretary of Defense shall notify each local educational agency that 
is eligible for educational agencies assistance for fiscal year 2003 
of--
            (1) that agency's eligibility for the assistance; and
            (2) the amount of the assistance for which that agency is 
        eligible.

    (c) Disbursement <<NOTE: Deadline.>> of Funds.--The Secretary of 
Defense shall disburse funds made available under subsection (a) not 
later than 30 days after the date on which notification to the eligible 
local educational agencies is provided pursuant to subsection (b).

    (d) Definitions.--In this section:
            (1) The term ``educational agencies assistance'' means 
        assistance authorized under section 386(b) of the National 
        Defense Authorization Act for Fiscal Year 1993 (Public Law 102-
        484; 20 U.S.C. 7703 note).
            (2) The term ``local educational agency'' has the meaning 
        given that term in section 8013(9) of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7713(9)).

SEC. 342. HOUSING BENEFITS FOR UNACCOMPANIED TEACHERS REQUIRED TO LIVE 
            AT GUANTANAMO BAY NAVAL STATION, CUBA.

    Section 7 of the Defense Department Overseas Teachers Pay and 
Personnel Practices Act (20 U.S.C. 905) is amended by adding at the end 
the following new subsection:
    ``(f)(1) A teacher assigned to teach at Guantanamo Bay Naval 
Station, Cuba, who is not accompanied at such station by any dependent 
shall be offered for lease any available military family housing at such 
station that is suitable for occupancy by the teacher and is not needed 
to house members of the armed forces and dependents accompanying them or 
other civilian personnel and any dependents accompanying them.
    ``(2) For any period for which military family housing is leased 
under paragraph (1) to a teacher described in such paragraph, the 
teacher shall receive a quarters allowance in the amount determined 
under subsection (b). The teacher is entitled to such quarters allowance 
without regard to whether other Government furnished quarters are 
available for occupancy by the teacher without charge to the teacher.''.

SEC. 343. OPTIONS FOR FUNDING DEPENDENT SUMMER SCHOOL PROGRAMS.

    Section 1402(d)(2) of the Defense Dependents' Education Act of 1978 
(20 U.S.C. 921(d)(2)) is amended to read as follows:
    ``(2) The Secretary shall provide any summer school program under 
this subsection on the same financial basis as programs offered during 
the regular school year, except that the Secretary may charge reasonable 
fees for all or portions of such summer school programs to the extent 
that the Secretary determines appropriate.''.

SEC. 344. IMPACT AID ELIGIBILITY FOR LOCAL EDUCATIONAL AGENCIES AFFECTED 
            BY PRIVATIZATION OF MILITARY HOUSING.

    Section 8003(b)(2) of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7703(b)(2)) is amended by adding at the end the 
following:

[[Page 116 STAT. 2516]]

                    ``(H) Eligibility for heavily impacted local 
                educational agencies affected by privatization of 
                military housing.--
                          ``(i) Eligibility.--For any fiscal year 
                      beginning with fiscal year 2003, a heavily 
                      impacted local educational agency that received a 
                      basic support payment under subparagraph (A) for 
                      the prior fiscal year, but is ineligible for such 
                      payment for the current fiscal year under 
                      subparagraph (B) or (C), as the case may be, by 
                      reason of the conversion of military housing units 
                      to private housing described in clause (iii), 
                      shall be deemed to meet the eligibility 
                      requirements under subparagraph (B) or (C), as the 
                      case may be, for the period during which the 
                      housing units are undergoing such conversion.
                          ``(ii) Amount of payment.--The amount of a 
                      payment to a heavily impacted local educational 
                      agency for a fiscal year by reason of the 
                      application of clause (i), and calculated in 
                      accordance with subparagraph (D) or (E) (as the 
                      case may be), shall be based on the number of 
                      children in average daily attendance in the 
                      schools of such agency for the fiscal year.
                          ``(iii) Conversion of military housing units 
                      to private housing described.--For purposes of 
                      clause (i), `conversion of military housing units 
                      to private housing' means the conversion of 
                      military housing units to private housing units 
                      pursuant to subchapter IV of chapter 169 of title 
                      10, United States Code, or pursuant to any other 
                      related provision of law.''.

SEC. 345. COMPTROLLER GENERAL STUDY OF ADEQUACY OF COMPENSATION PROVIDED 
            FOR TEACHERS IN THE DEPARTMENT OF DEFENSE OVERSEAS 
            DEPENDENTS' SCHOOLS.

    (a) Additional Consideration for Study.--Subsection (b) of section 
354 of the National Defense Authorization Act for Fiscal Year 2002 
(Public Law 107-107; 115 Stat. 1064) is amended by inserting after 
paragraph (2) the following new paragraph:
            ``(3) Whether the process for setting teacher compensation 
        is efficient and cost effective.''.

    (b) Extension of Time for Reporting.--Subsection (c) of such section 
is amended by striking ``May 1, 2002'' and inserting ``December 12, 
2002''.

                   Subtitle F--Information Technology

SEC. 351. <<NOTE: 10 USC 221 note.>> ANNUAL SUBMISSION OF INFORMATION 
            REGARDING INFORMATION TECHNOLOGY CAPITAL ASSETS.

    (a) Requirement <<NOTE: Deadline.>> To Submit Information.--Not 
later than 30 days after the date on which the President submits the 
budget for a fiscal year to Congress pursuant to section 1105 of title 
31, United States Code, the Secretary of Defense shall submit to 
Congress information on the following information technology capital 
assets, including information technology capital assets that are a 
national security system, of the Department of Defense:

[[Page 116 STAT. 2517]]

            (1) Information technology capital assets not covered by 
        paragraph (2) that have an estimated total cost for the fiscal 
        year for which the budget is submitted in excess of $10,000,000.
            (2) Information technology capital assets that have an 
        estimated total cost for the fiscal year for which the budget is 
        submitted in excess of $30,000,000 and an estimated total life 
        cycle cost (as computed in fiscal year 2003 constant dollars) in 
        excess of $120,000,000.

    (b) Required Information For Low-Threshold Assets.--With respect to 
each information technology capital asset described in subsection 
(a)(1), the Secretary of Defense shall include the following 
information:
            (1) The name of the information technology capital asset.
            (2) The function of the asset.
            (3) The total cost of the asset for the fiscal year for 
        which the budget is submitted, the current fiscal year, and the 
        preceding fiscal year.

    (c) Required Information For High-Threshold Assets.--With respect to 
each information technology capital asset described in subsection 
(a)(2), the Secretary of Defense shall include the following 
information:
            (1) The name and identifying acronym of the information 
        technology capital asset.
            (2) The date of initiation of the asset.
            (3) A summary of performance measurements and metrics.
            (4) The total amount of funds, by appropriation account, 
        appropriated and obligated for prior fiscal years, with a 
        specific breakout of such information for the two preceding 
        fiscal years.
            (5) The funds, by appropriation account, requested for the 
        next fiscal year.
            (6) The name of each prime contractor and the work to be 
        performed.
            (7) Program management and management oversight information.
            (8) The original baseline cost and most current baseline 
        information.
            (9) Information regarding compliance with the provisions of 
        law enacted or amended by the Government Performance Results Act 
        of 1993 (Public Law 103-62; 107 Stat. 285) and the Clinger-Cohen 
        Act of 1996 (divisions D and E of Public Law 104-106; 110 Stat. 
        642).

    (d) Total Cost Determinations.--In estimating the total cost for a 
fiscal year or total life cycle cost of an information technology 
capital asset, the Secretary of Defense shall consider research and 
development costs, procurement costs, and operation and maintenance 
costs related to the information technology capital asset.
    (e) Definitions.--In this section:
            (1) The term ``information technology'' has the meaning 
        given that term in section 11101 of title 40, United States 
        Code.
            (2) The term ``capital asset'' has the meaning given that 
        term in Office of Management and Budget Circular A-11.
            (3) The term ``national security system'' has the meaning 
        given that term in section 11103 of title 40, United States 
        Code.

[[Page 116 STAT. 2518]]

SEC. 352. <<NOTE: 10 USC 2302 note.>> POLICY REGARDING ACQUISITION OF 
            INFORMATION ASSURANCE AND INFORMATION ASSURANCE-ENABLED 
            INFORMATION TECHNOLOGY PRODUCTS.

    (a) Establishment of Policy.--The Secretary of Defense shall 
establish a policy to limit the acquisition of information assurance and 
information assurance-enabled information technology products to those 
products that have been evaluated and validated in accordance with 
appropriate criteria, schemes, or programs.
    (b) Waiver.--As part of the policy, the Secretary of Defense shall 
authorize specified officials of the Department of Defense to waive the 
limitations of the policy upon a determination in writing that 
application of the limitations to the acquisition of a particular 
information assurance or information assurance-enabled information 
technology product would not be in the national security interest of the 
United States.
    (c) Implementation.--The Secretary of Defense shall ensure that the 
policy is uniformly implemented throughout the Department of Defense.

SEC. 353. INSTALLATION AND CONNECTION POLICY AND PROCEDURES REGARDING 
            DEFENSE SWITCH NETWORK.

    (a) Establishment <<NOTE: Deadline.>> of Policy and Procedures.--Not 
later than 180 days after the date of the enactment of this Act, the 
Secretary of Defense shall establish clear and uniform policy and 
procedures, applicable to the military departments and Defense Agencies, 
regarding the installation and connection of telecom switches to the 
Defense Switch Network.

    (b) Elements of Policy and Procedures.--The policy and procedures 
shall address at a minimum the following:
            (1) Clear interoperability and compatibility requirements 
        for procuring, certifying, installing, and connecting telecom 
        switches to the Defense Switch Network.
            (2) Current, complete, and enforceable testing, validation, 
        and certification procedures needed to ensure the 
        interoperability and compatibility requirements are satisfied.

    (c) Exceptions.--(1) The Secretary of Defense may specify certain 
circumstances in which--
            (A) the requirements for testing, validation, and 
        certification of telecom switches may be waived; or
            (B) interim authority for the installation and connection of 
        telecom switches to the Defense Switch Network may be granted.

    (2) Only the Assistant Secretary of Defense for Command, Control, 
Communications, and Intelligence may approve a waiver or grant of 
interim authority under paragraph (1). The authority to approve such a 
waiver or grant of interim authority may not be delegated.
    (3) The Assistant Secretary of Defense for Command, Control, 
Communications, and Intelligence shall consult with the Chairman of the 
Joint Chiefs of Staff before approving a waiver or grant of interim 
authority under paragraph (1).
    (d) Inventory of Defense Switch Network.--The Secretary of Defense 
shall prepare and maintain an inventory of all telecom switches that, as 
of the date on which the Secretary issues the policy and procedures--
            (1) are installed or connected to the Defense Switch 
        Network; but

[[Page 116 STAT. 2519]]

            (2) have not been tested, validated, and certified by the 
        Defense Information Systems Agency (Joint Interoperability Test 
        Center).

    (e) Interoperability Risks.--On an ongoing basis, the Secretary of 
Defense shall--
            (1) identify and assess the interoperability risks that are 
        associated with the installation or connection of uncertified 
        switches to the Defense Switch Network and the maintenance of 
        such switches on the Defense Switch Network; and
            (2) develop and implement a plan to eliminate or mitigate 
        such risks as identified.

    (f) Telecom Switch Defined.--In this section, the term ``telecom 
switch'' means hardware or software designed to send and receive voice, 
data, or video signals across a network that provides customer voice, 
data, or video equipment access to the Defense Switch Network or public 
switched telecommunications networks.

                        Subtitle G--Other Matters

SEC. 361. DISTRIBUTION OF MONTHLY REPORTS ON ALLOCATION OF FUNDS WITHIN 
            OPERATION AND MAINTENANCE BUDGET SUBACTIVITIES.

    (a) Designation of Recipients.--Subsection (a) of section 228 of 
title 10, United States Code, is amended by striking ``to Congress'' and 
inserting ``to the congressional defense committees''.
    (b) Congressional Defense Committees Defined.--Subsection (e) of 
such section is amended--
            (1) by striking ``(e) O&M Budget Activity Defined.--For 
        purposes of this section, the'' and inserting the following:

    ``(e) Definitions.--In this section:
            ``(1) The''; and
            (2) by adding at the end the following new paragraph:
            ``(2) The term `congressional defense committees' means the 
        Committee on Armed Services and the Committee on Appropriations 
        of the Senate and the Committee on Armed Services and the 
        Committee on Appropriations of the House of Representatives.''.

SEC. 362. CONTINUATION OF ARSENAL SUPPORT PROGRAM INITIATIVE.

    (a) Extension Through Fiscal Year 2004.--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; 114 Stat. 1654A-
65) <<NOTE: 10 USC 4551 note.>> is amended by striking ``and 2002'' and 
inserting ``through 2004''.

    (b) Reporting Requirements.--Subsection (g) of such section is 
amended--
            (1) in paragraph (1), by striking ``2002'' and inserting 
        ``2004''; and
            (2) in paragraph (2), by striking the first sentence and 
        inserting the following new sentence: 
        ``Not <<NOTE: Deadline. Reports.>> later than July 1, 2003, the 
        Secretary of the Army shall submit to the congressional defense 
        committees a report on the results of the demonstration program 
        since its implementation, including the Secretary's views 
        regarding the benefits of the program for Army 


[[Page 116 STAT. 2520]]

        manufacturing arsenals and the Department of the Army and the 
        success of the program in achieving the purposes specified in 
        subsection (b).''.

SEC. 363. EXTENSION OF WORK SAFETY DEMONSTRATION PROGRAM.

    (a) Extension.--Section 1112 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-313) <<NOTE: 10 USC 113 note.>> is 
amended--
            (1) in subsection (d), by striking ``September 30, 2002'' 
        and inserting ``September 30, 2003''; and
            (2) in subsection (e)(2), by striking ``December 1, 2002'' 
        and inserting ``December 1, 2003''.

    (b) Revision of Reporting Requirements.--Subsection (e)(2) of such 
section is further amended by striking ``fiscal year 2002'' both places 
it appears and inserting ``fiscal years 2002 and 2003''.

SEC. 364. CONDITION ON AUTHORITY OF DEFENSE SECURITY SERVICE TO IMPOSE 
            FEES ON FEE-FOR-SERVICE BASIS.

    The Secretary of Defense may not authorize the Defense Security 
Service to impose fees on a fee-for-service basis for the investigative 
services provided by the Defense Security Service unless the Secretary 
certifies in advance to the Committee on Armed Services of the House of 
Representatives and the Committee on Armed Services of the Senate that 
the Defense Security Service has the financial systems in place to 
determine accurately the cost of such services.

SEC. 365. <<NOTE: 10 USC 2302 note.>> LOGISTICS SUPPORT AND SERVICES FOR 
            WEAPON SYSTEMS CONTRACTORS.

    (a) Authority.--The Secretary of Defense may make available 
logistics support and logistics services to a contractor in support of 
the performance by the contractor of a contract for the construction, 
modification, or maintenance of a weapon system that is entered into by 
an official of the Department of Defense.
    (b) Support Contracts.--Any logistics support and logistics services 
to be provided under this section to a contractor in support of the 
performance of a contract described in subsection (a) shall be provided 
under a separate contract that is entered into by the Director of the 
Defense Logistics Agency with that contractor. The 
requirements <<NOTE: Applicability.>> of section 2208(h) of title 10, 
United States Code, and the regulations prescribed pursuant to such 
section shall apply to the contract between the Director of the Defense 
Logistics Agency and the contractor.

    (c) Scope of Support and Services.--The logistics support and 
logistics services that may be provided under this section in support of 
the performance of a contract described in subsection (a) are the 
distribution, disposal, and cataloging of materiel and repair parts 
necessary for the performance of that contract.
    (d) Limitations.--(1) The number of contracts described in 
subsection (a) for which the Secretary of Defense makes logistics 
support and logistics services available under the authority of this 
section may not exceed five contracts. The total amount of the estimated 
costs of all such contracts for which logistics support and logistics 
services are made available under this section may not exceed 
$100,000,000.
    (2) No contract entered into by the Director of the Defense 
Logistics Agency under subsection (b) may be for a period in excess

[[Page 116 STAT. 2521]]

of five years, including periods for which the contract is extended 
under options to extend the contract.
    (e) Regulations.--Before exercising the authority under this 
section, the Secretary of Defense shall prescribe in regulations such 
requirements, conditions, and restrictions as the Secretary determines 
appropriate to ensure that logistics support and logistics services are 
provided under this section only when it is in the best interests of the 
United States to do so. The regulations shall include, at a minimum, the 
following:
            (1) A requirement for the authority under this section to be 
        used only for providing logistics support and logistics services 
        in support of the performance of a contract that is entered into 
        using competitive procedures (as defined in section 4 of the 
        Office of Federal Procurement Policy Act (41 U.S.C. 403)).
            (2) A requirement for the solicitation of offers for a 
        contract described in subsection (a), for which logistics 
        support and logistics services are to be made available under 
        this section, to include--
                    (A) a statement that the logistics support and 
                logistics services are to be made available under the 
                authority of this section to any contractor awarded the 
                contract, but only on a basis that does not require 
                acceptance of the support and services; and
                    (B) a description of the range of the logistics 
                support and logistics services that are to be made 
                available to the contractor.
            (3) A requirement for the rates charged a contractor for 
        logistics support and logistics services provided to a 
        contractor under this section to reflect the full cost to the 
        United States of the resources used in providing the support and 
        services, including the costs of resources used, but not paid 
        for, by the Department of Defense.
            (4) With respect to a contract described in subsection (a) 
        that is being performed for a department or agency outside the 
        Department of Defense, a prohibition, in accordance with 
        applicable contracting procedures, on the imposition of any 
        charge on that department or agency for any effort of Department 
        of Defense personnel or the contractor to correct deficiencies 
        in the performance of such contract.
            (5) A prohibition on the imposition of any charge on a 
        contractor for any effort of the contractor to correct a 
        deficiency in the performance of logistics support and logistics 
        services provided to the contractor under this section.

    (f) Relationship to Treaty Obligations.--The Secretary shall ensure 
that the exercise of authority under this section does not conflict with 
any obligation of the United States under any treaty or other 
international agreement.
    (g) Termination of Authority.--(1) The authority provided in this 
section shall expire on September 30, 2007.
    (2) The expiration of the authority under this section does not 
terminate--
            (A) any contract that was entered into by the Director of 
        the Defense Logistics Agency under subsection (b) before the 
        date specified in paragraph (1) or any obligation to provide 
        logistics support and logistics services under that contract; or

[[Page 116 STAT. 2522]]

            (B) any authority to enter into a contract described in 
        subsection (a) for which a solicitation of offers was issued in 
        accordance with the regulations prescribed pursuant to 
        subsection (e)(2) before the date specified in paragraph (1) or 
        to provide logistics support and logistics services to the 
        contractor with respect to that contract in accordance with this 
        section.

SEC. 366. <<NOTE: 10 USC 113 note.>> TRAINING RANGE SUSTAINMENT PLAN, 
            GLOBAL STATUS OF RESOURCES AND TRAINING SYSTEM, AND TRAINING 
            RANGE INVENTORY.

    (a) Plan Required.--(1) The Secretary of Defense shall develop a 
comprehensive plan for using existing authorities available to the 
Secretary of Defense and the Secretaries of the military departments to 
address training constraints caused by limitations on the use of 
military lands, marine areas, and airspace that are available in the 
United States and overseas for training of the Armed Forces.
    (2) As part of the preparation of the plan, the Secretary of Defense 
shall conduct the following:
            (A) An assessment of current and future training range 
        requirements of the Armed Forces.
            (B) An evaluation of the adequacy of current Department of 
        Defense resources (including virtual and constructive training 
        assets as well as military lands, marine areas, and airspace 
        available in the United States and overseas) to meet those 
        current and future training range requirements.

    (3) The plan shall include the following:
            (A) Proposals to enhance training range capabilities and 
        address any shortfalls in current Department of Defense 
        resources identified pursuant to the assessment and evaluation 
        conducted under paragraph (2).
            (B) Goals and milestones for tracking planned actions and 
        measuring progress.
            (C) Projected funding requirements for implementing planned 
        actions.
            (D) Designation of an office in the Office of the Secretary 
        of Defense and in each of the military departments that will 
        have lead responsibility for overseeing implementation of the 
        plan.

    (4) <<NOTE: Reports.>> At the same time as the President submits to 
Congress the budget for fiscal year 2004, the Secretary of Defense shall 
submit to Congress a report describing the progress made in implementing 
this subsection, including--
            (A) the plan developed under paragraph (1);
            (B) the results of the assessment and evaluation conducted 
        under paragraph (2); and
            (C) any recommendations that the Secretary may have for 
        legislative or regulatory changes to address training 
        constraints identified pursuant to this section.

    (5) <<NOTE: Reports.>> At the same time as the President submits to 
Congress the budget for each of fiscal years 2005 through 2008, the 
Secretary shall submit to Congress a report describing the progress made 
in implementing the plan and any additional actions taken, or to be 
taken, to address training constraints caused by limitations on the use 
of military lands, marine areas, and airspace.

[[Page 116 STAT. 2523]]

    (b) Readiness <<NOTE: Deadline.>> Reporting Improvement.--Not later 
than June 30, 2003, the Secretary of Defense, using existing measures 
within the authority of the Secretary, shall submit to Congress a report 
on the plans of the Department of Defense to improve the Global Status 
of Resources and Training System to reflect the readiness impact that 
training constraints caused by limitations on the use of military lands, 
marine areas, and airspace have on specific units of the Armed Forces.

    (c) Training Range Inventory.--(1) The Secretary of Defense shall 
develop and maintain a training range inventory for each of the Armed 
Forces--
            (A) to identify all available operational training ranges;
            (B) to identify all training capacities and capabilities 
        available at each training range; and
            (C) to identify training constraints caused by limitations 
        on the use of military lands, marine areas, and airspace at each 
        training range.

    (2) The Secretary of Defense shall submit an initial inventory to 
Congress at the same time as the President submits the budget for fiscal 
year 2004 and shall submit an updated inventory to Congress at the same 
time as the President submits the budget for fiscal years 2005 through 
2008.
    (d) GAO Evaluation.--The Secretary of Defense shall transmit copies 
of each report required by subsections (a) and (b) to the Comptroller 
General. Within <<NOTE: Deadline.>> 60 days after receiving a report, 
the Comptroller General shall submit to Congress an evaluation of the 
report.

    (e) Armed Forces Defined.--In this section, the term ``Armed 
Forces'' means the Army, Navy, Air Force, and Marine Corps.

SEC. 367. ENGINEERING STUDY AND ENVIRONMENTAL ANALYSIS OF ROAD 
            MODIFICATIONS IN VICINITY OF FORT BELVOIR, VIRGINIA.

    (a) Study and Analysis.--(1) The Secretary of the Army shall conduct 
a preliminary engineering study and environmental analysis to evaluate 
the feasibility of establishing a connector road between Richmond 
Highway (United States Route 1) and Telegraph Road in order to provide 
an alternative to Beulah Road (State Route 613) and Woodlawn Road (State 
Route 618) at Fort Belvoir, Virginia, which were closed as a force 
protection measure.
    (2) It is the sense of Congress that the study and analysis should 
consider as one alternative the extension of Old Mill Road between 
Richmond Highway and Telegraph Road.
    (b) Consultation.--The study required by subsection (a) shall be 
conducted in consultation with the Department of Transportation of the 
Commonwealth of Virginia and Fairfax County, Virginia.
    (c) Report.--The Secretary shall submit to Congress a summary report 
on the study and analysis required by subsection (a). The summary report 
shall be submitted together with the budget justification materials in 
support of the budget of the President for fiscal year 2006 that is 
submitted to Congress under section 1105(a) of title 31, United States 
Code.
    (d) Funding.--Of the amount authorized to be appropriated by section 
301(a)(1) for the Army for operation and maintenance, $5,000,000 may be 
made available for the study and analysis required by subsection (a).

[[Page 116 STAT. 2524]]

SEC. 368. REAUTHORIZATION 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), as amended by 
section 364 of Public Law 107-107 (115 Stat. 1068), is further amended--
            (1) in subsection (f), by striking ``September 30, 2003'' 
        and inserting ``September 30, 2004''; and
            (2) by striking subsection (g).

SEC. 369. EXPANDED ELIGIBILITY FOR LOAN, GIFT, OR EXCHANGE OF DOCUMENTS, 
            HISTORICAL ARTIFACTS, AND CONDEMNED OR OBSOLETE COMBAT 
            MATERIEL.

    Section 2572(a)(3) of title 10, United States Code, is amended by 
inserting before the period the following: ``or a nonprofit military 
aviation heritage foundation or association incorporated in a State''.

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent end strength minimum levels.
Sec. 403. Expanded authority for administrative increases in statutory 
           active-duty end strengths.
Sec. 404. General and flag officer management.
Sec. 405. Extension of certain authorities relating to management of 
           numbers of general and flag officers in certain grades.
Sec. 406. Increase in authorized strengths for Marine Corps officers on 
           active duty in the grade of colonel.

                       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 2003 limitation on non-dual status technicians.

               Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

                        Subtitle A--Active Forces

SEC. 401. <<NOTE: 10 USC 115 note.>> END STRENGTHS FOR ACTIVE FORCES.

    The Armed Forces are authorized strengths for active duty personnel 
as of September 30, 2003, as follows:
            (1) The Army, 480,000.
            (2) The Navy, 375,700.
            (3) The Marine Corps, 175,000.
            (4) The Air Force, 359,000.

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

    (a) Revised End Strength Floors.--Subsection (b) of section 691 of 
title 10, United States Code, is amended--
            (1) in paragraph (2), by striking ``376,000'' and inserting 
        ``375,700'';
            (2) in paragraph (3), by striking ``172,600'' and inserting 
        ``175,000''; and
            (3) in paragraph (4), by striking ``358,800'' and inserting 
        ``359,000''.

[[Page 116 STAT. 2525]]

    (b) Repeal of Secretary of Defense Flexibility Authority.--
Subsection (e) of such section is repealed.

SEC. 403. EXPANDED AUTHORITY FOR ADMINISTRATIVE INCREASES IN STATUTORY 
            ACTIVE-DUTY END STRENGTHS.

    (a) Secretary of Defense Authority.--Subsection (c)(1) of section 
115 of title 10, United States Code, is amended by striking ``2 
percent'' and inserting ``3 percent''.
    (b) Service Secretary Authority.--Such section is further amended by 
inserting after subsection (e) the following new subsection:
    ``(f) Upon determination by the Secretary of a military department 
that such action would enhance manning and readiness in essential units 
or in critical specialties or ratings, the Secretary may increase the 
end strength authorized pursuant to subsection (a)(1)(A) for a fiscal 
year for the armed force under the jurisdiction of that Secretary or, in 
the case of the Secretary of the Navy, for any of the armed forces under 
the jurisdiction of that Secretary. Any such increase for a fiscal 
year--
            ``(1) shall be by a number equal to not more than 2 percent 
        of such authorized end strength; and
            ``(2) shall be counted as part of the increase for that 
        armed force for that fiscal year authorized under subsection 
        (c)(1).''.

SEC. 404. GENERAL AND FLAG OFFICER MANAGEMENT.

    (a) Exclusion of Senior Military Assistant to the Secretary of 
Defense from Limitation on Active Duty Officers in Grades Above Major 
General and Rear <<NOTE: Effective date.>> Admiral.--Effective on the 
date specified in subsection (d), section 525(b) of title 10, United 
States Code, is amended by adding at the end the following new 
paragraph:

    ``(8) An officer while serving in a position designated by the 
Secretary of Defense as Senior Military Assistant to the Secretary of 
Defense, if serving in the grade of lieutenant general or vice admiral, 
is in addition to the number that otherwise would be permitted for that 
officer's armed force for that grade under paragraph (1) or (2). Only 
one officer may be designated as Senior Military Assistant to the 
Secretary of Defense for purposes of this paragraph.''.
    (b) Increase in Number of Lieutenant Generals Authorized for the 
Marine Corps.--Paragraph (2)(B) of such section is amended by striking 
``16.2 percent'' and inserting ``17.5 percent''.
    (c) Review <<NOTE: 10 USC 525 note.>> of Active Duty and Reserve 
General and Flag Officer Authorizations.--(1) 
The <<NOTE: Reports.>> Secretary of Defense shall submit to Congress a 
report containing any recommendations of the Secretary (together with 
the rationale of the Secretary for the recommendations) concerning the 
following:
            (A) Revision of the limitations on general and flag officer 
        grade authorizations and distribution in grade prescribed by 
        sections 525, 526, and 12004 of title 10, United States Code.
            (B) Statutory designation of the positions and grades of any 
        additional general and flag officers in the commands specified 
        in chapter 1006 of title 10, United States Code, and the reserve 
        component offices specified in sections 3038, 5143, 5144, and 
        8038 of such title.

    (2) <<NOTE: Applicability.>> The provisions of subsection (b) 
through (e) of section 1213 of the National Defense Authorization Act 
for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2694) shall apply to 
the report 


[[Page 116 STAT. 2526]]

under paragraph (1) in the same manner as they applied to the report 
required by subsection (a) of that section.
    (d) Effective <<NOTE: 10 USC 525 note.>> Date.--The amendment made 
by subsection (a) shall take effect on the date of the receipt by 
Congress of the report required by subsection (c).

SEC. 405. EXTENSION OF CERTAIN AUTHORITIES RELATING TO MANAGEMENT OF 
            NUMBERS OF GENERAL AND FLAG OFFICERS IN CERTAIN GRADES.

    (a) Senior Joint Officer Positions.--Section 604(c) of title 10, 
United States Code, is amended by striking ``September 30, 2003'' and 
inserting ``December 31, 2004''.
    (b) Distribution of Officers on Active Duty in General and Flag 
Officer Grades.--Section 525(b)(5)(C) of such title is amended by 
striking ``September 30, 2003'' and inserting ``December 31, 2004''.
    (c) Authorized Strength for General and Flag Officers on Active 
Duty.--Section 526(b)(3) of such title is amended by striking ``October 
1, 2002'' and inserting ``December 31, 2004''.

SEC. 406. INCREASE IN AUTHORIZED STRENGTHS FOR MARINE CORPS OFFICERS ON 
            ACTIVE DUTY IN THE GRADE OF COLONEL.

    The table in section 523(a)(1) of title 10, United States Code, is 
amended by striking the figures under the heading ``Colonel'' in the 
portion of the table relating to the Marine Corps and inserting the 
following:

         ``571
          632
          653
          673
          694
          715
          735''.

                       Subtitle B--Reserve Forces

SEC. 411. <<NOTE: 10 USC 12001 note.>> 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, 
2003, as follows:
            (1) The Army National Guard of the United States, 350,000.
            (2) The Army Reserve, 205,000.
            (3) The Naval Reserve, 87,800.
            (4) The Marine Corps Reserve, 39,558.
            (5) The Air National Guard of the United States, 106,600.
            (6) The Air Force Reserve, 75,600.
            (7) The Coast Guard Reserve, 9,000.

    (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

[[Page 116 STAT. 2527]]

        or for unsatisfactory participation in training) without their 
        consent at the end of the fiscal year.

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

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

    Within the end strengths prescribed in section 411(a), the reserve 
components of the Armed Forces are authorized, as of September 30, 2003, 
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, 24,562.
            (2) The Army Reserve, 14,070.
            (3) The Naval Reserve, 14,572.
            (4) The Marine Corps Reserve, 2,261.
            (5) The Air National Guard of the United States, 11,727.
            (6) The Air Force Reserve, 1,498.

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

    The minimum number of military technicians (dual status) as of the 
last day of fiscal year 2003 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 National Guard of the United States, 
        24,102.
            (2) For the Army Reserve, 6,599.
            (3) For the Air National Guard of the United States, 22,495.
            (4) For the Air Force Reserve, 9,911.

SEC. 414. FISCAL YEAR 2003 LIMITATION ON NON-DUAL STATUS TECHNICIANS.

    (a) Army.--The number of non-dual status technicians employed by the 
reserve components of the Army as of September 30, 2003, may not exceed 
the following:
            (1) For the Army Reserve, 995.
            (2) For the Army National Guard of the United States, 1,600, 
        to be counted within the limitation specified in section 
        10217(c)(2) of title 10, United States Code.

    (b) Air Force.--The number of non-dual status technicians employed 
by the reserve components of the Army and the Air Force as of September 
30, 2003, may not exceed the following:
            (1) For the Air Force Reserve, 90.
            (2) For the Air National Guard of the United States, 350, to 
        be counted within the limitation specified in section 
        10217(c)(2) of title 10, United States Code.

    (c) 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.
    (d) Technical Amendments.--Section 10217(c)(2) of title 10, United 
States Code, is amended--

[[Page 116 STAT. 2528]]

            (1) in the first sentence, by striking ``Effective October 
        1, 2002, the'' and inserting ``The''; and
            (2) in the second sentence, by striking ``after the 
        preceding sentence takes effect''.

               Subtitle C--Authorization of Appropriations

SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the Department of 
Defense for military personnel for fiscal year 2003 a total of 
$93,829,525,000. The authorization in the preceding sentence supersedes 
any other authorization of appropriations (definite or indefinite) for 
such purpose for fiscal year 2003.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Extension of good-of-the-service waiver authority for officers 
           appointed to a Reserve Chief or Guard Director position.
Sec. 502. Exclusion of certain officers from limitation on authority to 
           grant a waiver of required completion or sequencing for joint 
           professional military education.
Sec. 503. Extension and codification of authority for recall of retired 
           aviators to active duty.
Sec. 504. Grades for certain positions.
Sec. 505. Reinstatement of authority to reduce three-year time-in-grade 
           requirement for retirement in grade for officers in grades 
           above major and lieutenant commander.
Sec. 506. Authority to require that an officer take leave pending review 
           of a recommendation for removal by a board of inquiry.

                Subtitle B--Reserve Component Management

Sec. 511. Reviews of National Guard strength accounting and management 
           and other issues.
Sec. 512. Courts-martial for the National Guard when not in Federal 
           service.
Sec. 513. Fiscal year 2003 funding for military personnel costs of 
           reserve component Special Operations Forces personnel engaged 
           in humanitarian assistance activities relating to clearing of 
           landmines.
Sec. 514. Use of Reserves to perform duties relating to defense against 
           terrorism.
Sec. 515. Repeal of prohibition on use of Air Force Reserve AGR 
           personnel for Air Force base security functions.

         Subtitle C--Reserve Component Officer Personnel Policy

Sec. 521. Eligibility for consideration for promotion to grade of major 
           general for certain reserve component brigadier generals who 
           do not otherwise qualify for consideration for promotion 
           under the one-year rule.
Sec. 522. Authority for limited extension of medical deferment of 
           mandatory retirement or separation of reserve component 
           officers.

        Subtitle D--Enlistment, Education, and Training Programs

Sec. 531. Enlistment incentives for pursuit of skills to facilitate 
           national service.
Sec. 532. Authority for phased increase to 4,400 in authorized strengths 
           for the service academies.
Sec. 533. Enhancement of reserve component delayed training program.
Sec. 534. Review of Armed Forces programs for preparation for, 
           participation in, and conduct of athletic competitions.
Sec. 535. Repeal of bar to eligibility of Army College First program 
           participants for benefits under student loan repayment 
           program.

[[Page 116 STAT. 2529]]

           Subtitle E--Decorations, Awards, and Commendations

Sec. 541. Waiver of time limitations for award of Army Distinguished-
           Service Cross to certain persons.
Sec. 542. Option to convert award of Armed Forces Expeditionary Medal 
           awarded for Operation Frequent Wind to Vietnam Service Medal.
Sec. 543 . Korea Defense Service Medal.
Sec. 544 . Commendation of military chaplains.

                   Subtitle F--Administrative Matters

Sec. 551. Staffing and funding for Defense Prisoner of War/Missing 
           Personnel Office.
Sec. 552. Three-year freeze on reductions of personnel of agencies 
           responsible for review and correction of military records.
Sec. 553. Authority for acceptance of voluntary services of individuals 
           as proctors for administration of Armed Services Vocational 
           Aptitude Battery test.
Sec. 554. Extension of temporary early retirement authority.

Subtitle G--Matters Relating to Minorities and Women in the Armed Forces

Sec. 561. Surveys of racial and ethnic issues and of gender issues in 
           the Armed Forces.
Sec. 562. Annual report on status of female members of the Armed Forces.
Sec. 563. Wear of abayas by female members of the Armed Forces in Saudi 
           Arabia.

                          Subtitle H--Benefits

Sec. 571. Department of Defense support for persons participating in 
           military funeral honors details.
Sec. 572. Emergency leave of absence program.
Sec. 573. Enhanced flexibility in medical loan repayment program.
Sec. 574. Destinations authorized for Government paid transportation of 
           enlisted personnel for rest and recuperation absence upon 
           extending duty at designated locations overseas.
Sec. 575. Vehicle storage in lieu of transportation when member is 
           ordered to a nonforeign duty station outside continental 
           United States.

                           Subtitle I--Reports

Sec. 581. Quadrennial quality of life review.
Sec. 582. Report on desirability and feasibility of consolidating 
           separate courses of basic instruction for judge advocates.
Sec. 583. Reports on efforts to resolve status of Captain Michael Scott 
           Speicher, United States Navy.
Sec. 584. Report on volunteer services of members of the reserve 
           components in emergency response to the terrorist attacks of 
           September 11, 2001.

                  Subtitle A--Officer Personnel Policy

SEC. 501. EXTENSION OF GOOD-OF-THE-SERVICE WAIVER AUTHORITY FOR OFFICERS 
            APPOINTED TO A RESERVE CHIEF OR GUARD DIRECTOR POSITION.

    (a) Waiver of Requirement for Significant Joint Duty Experience.--
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 each amended by 
striking ``October 1, 2003'' and inserting ``December 31, 2004''.
    (b) Report on Future Implementation of Requirement.--Not 
later <<NOTE: Deadline.>> than May 1, 2003, 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--
            (1) setting forth the steps that have been taken by the 
        Secretary, the Secretaries of the military departments, and the 
        Chairman of the Joint Chiefs of Staff to ensure that Reserve and 
        National Guard officers receive significant joint duty 
        experience; and
            (2) specifying the date by which no further extension of the 
        waiver authority under the sections amended by subsection (a) 
        will be required.

[[Page 116 STAT. 2530]]

SEC. 502. EXCLUSION OF CERTAIN OFFICERS FROM LIMITATION ON AUTHORITY TO 
            GRANT A WAIVER OF REQUIRED COMPLETION OR SEQUENCING FOR 
            JOINT PROFESSIONAL MILITARY EDUCATION.

    (a) Exclusion <<NOTE: 10 USC 661 note.>> From Limitation.--There 
shall be excluded from counting for purposes of the 10-percent 
limitation set forth in the last sentence of section 661(c)(3)(D) of 
title 10, United States Code (limiting the authority to grant waivers 
related to sequencing or completion of program of joint professional 
military education), any officer selected for the joint specialty who--
            (1) on December 28, 2001, met the requirements of section 
        661(c) of such title for nomination for the joint specialty, but 
        who had not been nominated for that specialty before that date 
        by the Secretary of the military department concerned; and
            (2) before the date of the enactment of this Act was 
        automatically nominated for the joint specialty as a result of 
        section 661(b)(2) of such title.

    (b) Termination.--The provisions of subsection (a) shall terminate 
on October 1, 2006.
    (c) Cross-Reference Correction.--Section 661(c)(3)(E) of title 10, 
United States Code, is amended by striking ``subparagraph'' and 
inserting ``paragraph''.

SEC. 503. EXTENSION AND CODIFICATION OF AUTHORITY FOR RECALL OF RETIRED 
            AVIATORS TO ACTIVE DUTY.

    (a) In General.--(1) Chapter 39 of title 10, United States Code, is 
amended by inserting after section 688 the following new section:

``Sec. 688a. Retired aviators: temporary authority to order to active 
                        duty

    ``(a) Authority.--The Secretary of a military department may order 
to active duty a retired officer having expertise as an aviator to fill 
staff positions normally filled by aviators on active duty. Any such 
order may be made only with the consent of the officer ordered to active 
duty and in accordance with an agreement between the Secretary and the 
officer.
    ``(b) Duration.--The period of active duty of an officer under an 
order to active duty under subsection (a) shall be specified in the 
agreement entered into under that subsection.
    ``(c) Limitation.--No more than a total of 500 officers may be on 
active duty at any time under subsection (a).
    ``(d) Relationship to Other Authority.--The authority to order a 
retired officer to active duty under this section is in addition to the 
authority under section 688 of this title or any other provision of law 
authorizing the Secretary concerned to order a retired member to active 
duty.
    ``(e) Inapplicability of Certain Provisions.--Officers ordered to 
active duty under subsection (a) shall not be counted for purposes of 
section 688 or 690 of this title.
    ``(f) Expiration of Authority.--An officer may not be ordered to 
active duty under this section after September 30, 2008.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 688 the 
following new item:

``688a. Retired aviators: temporary authority to order to active 
           duty.''.


[[Page 116 STAT. 2531]]



    (b) Grade in Which Ordered to Active Duty and Upon Release From 
Active Duty.--(1) Section 689 of such title is amended by inserting ``or 
688a'' after ``section 688'' each place it appears.
    (2) The <<NOTE: Applicability. 10 USC 689 note.>> provisions of 
section 689(d) of title 10, United States Code, shall apply with respect 
to an officer ordered to active duty under section 501 of the National 
Defense Authorization Act for Fiscal Year 2000 (Public Law 106-65; 113 
Stat. 589) before the date of the enactment of this Act in the same 
manner as such provisions apply to an officer ordered to active duty 
under section 688 of such title.

    (c) Transition <<NOTE: 10 USC 688a note.>> Provision.--Any officer 
ordered to active duty under section 501 of the National Defense 
Authorization Act for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 
589) who continues on active duty under such order to active duty after 
the date of the enactment of this Act shall be counted for purposes of 
the limitation under subsection (c) of section 688a of title 10, United 
States Code, as added by subsection (a).

SEC. 504. GRADES FOR CERTAIN POSITIONS.

    (a) Heads of Nurse Corps.--(1) Section 3069(b) of title 10, United 
States Code, is amended by striking ``brigadier general'' in the second 
sentence and inserting ``major general''.
    (2) The first sentence of section 5150(c) of such title is amended--
            (A) by inserting ``rear admiral, in the case of an officer 
        in the Nurse Corps, or'' after ``for promotion to the grade 
        of''; and
            (B) by inserting ``, in the case of an officer in the 
        Medical Service Corps'' after ``rear admiral (lower half)''.

    (3) Section 8069(b) of such title is amended by striking ``brigadier 
general'' in the second sentence and inserting ``major general''.
    (b) Chief of Veterinary Corps of the Army.--(1) Chapter 307 of such 
title is amended by adding at the end the following new section:

``Sec. 3084. Chief of Veterinary Corps; grade

    ``The Chief of the Veterinary Corps of the Army serves in the grade 
of brigadier general. An officer appointed to that position who holds a 
lower grade shall be appointed in the grade of brigadier general.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``3084. Chief of Veterinary Corps: grade.''.

    (c) Chief of Legislative Liaison of the Army.--(1)(A) Chapter 303 of 
such title is amended by adding at the end the following new section:

``Sec. 3023. Chief of Legislative Liaison

    ``(a) There is a Chief of Legislative Liaison in the Department of 
the Army. An officer assigned to that position shall be an officer in 
the grade of major general.
    ``(b) The Chief of Legislative Liaison shall perform legislative 
affairs functions as specified for the Office of the Secretary of the 
Army by section 3014(c)(1)(F) of this title.''.

[[Page 116 STAT. 2532]]

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

``3023. Chief of Legislative Liaison.''.

    (2) Section 3014(b) of such title is amended--
            (A) by redesignating paragraphs (6) and (7) as paragraphs 
        (7) and (8), respectively; and
            (B) by inserting after paragraph (5) the following new 
        paragraph (6):
            ``(6) The Chief of Legislative Liaison.''.

    (d) Legislative Affairs Positions of the Navy and Marine Corps.--
(1)(A) Chapter 503 of such title is amended by adding at the end the 
following new section:

``Sec. 5027. Chief of Legislative Affairs

    ``(a) There is a Chief of Legislative Affairs in the Department of 
the Navy. An officer assigned to that position shall be an officer in 
the grade of rear admiral.
    ``(b) The Chief of Legislative Affairs shall perform legislative 
affairs functions as specified for the Office of the Secretary of the 
Navy by section 5014(c)(1)(F) of this title.''.
    (B) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``5027. Chief of Legislative Affairs.''.

    (2) Section 5014(b) of such title is amended--
            (A) by redesignating paragraphs (6) and (7) as paragraphs 
        (7) and (8), respectively; and
            (B) by inserting after paragraph (5) the following new 
        paragraph (6):
            ``(6) The Chief of Legislative Affairs.''.

    (3)(A) Chapter 506 of such title is amended by adding at the end the 
following new section:

``Sec. 5047. Legislative Assistant to the Commandant

    ``There is in the Marine Corps a Legislative Assistant to the 
Commandant. An officer assigned to that position shall be in a grade 
above colonel.''.
    (B) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``5047. Legislative Assistant to the Commandant.''.

    (e) Chief of Legislative Liaison of the Air Force.--(1)(A) Chapter 
803 of such title is amended by adding at the end the following new 
section:

``Sec. 8023. Chief of Legislative Liaison

    ``(a) There is a Chief of Legislative Liaison in the Department of 
the Air Force. An officer assigned to that position shall be an officer 
in the grade of major general.
    ``(b) The Chief of Legislative Liaison shall perform legislative 
affairs functions as specified for the Office of the Secretary of the 
Air Force by section 8014(c)(1)(F) of this title.''.
    (B) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``8023. Chief of Legislative Liaison.''.


[[Page 116 STAT. 2533]]



    (2) Section 8014(b) of such title is amended--
            (A) by redesignating paragraphs (5) and (6) as paragraphs 
        (6) and (7), respectively; and
            (B) by inserting after paragraph (4) the following new 
        paragraph (5):
            ``(5) The Chief of Legislative Liaison.''.

    (f) Technical Amendment To Provide Correct Statutory Title of 
Grade.--Section 5022(a)(2) of such title is amended by striking ``(upper 
half)''.

SEC. 505. REINSTATEMENT OF AUTHORITY TO REDUCE THREE-YEAR TIME-IN-GRADE 
            REQUIREMENT FOR RETIREMENT IN GRADE FOR OFFICERS IN GRADES 
            ABOVE MAJOR AND LIEUTENANT COMMANDER.

    (a) Officers on Active Duty.--Subsection (a)(2) of section 1370 of 
title 10, United States Code, is amended--
            (1) in subparagraph (A), by striking ``during the period 
        beginning on October 1, 1990, and ending on December 31, 2001'' 
        and inserting ``during the period beginning on October 1, 2002, 
        and ending on December 31, 2003'';
            (2) by redesignating subparagraphs (B) and (C) as 
        subparagraphs (D) and (E), respectively; and
            (3) by inserting after subparagraph (A) the following new 
        subparagraphs (B) and (C):

    ``(B) In the case of an officer to be retired in a general or flag 
officer grade, authority provided by the Secretary of Defense to the 
Secretary of a military department under subparagraph (A) may be 
exercised with respect to that officer only if approved by the Secretary 
of Defense or another civilian official in the Office of the Secretary 
of Defense appointed by the President, by and with the advice and 
consent of the Senate.
    ``(C) Authority provided by the Secretary of Defense to the 
Secretary of a military department under subparagraph (A) may be 
delegated within that military department only to a civilian official of 
that military department appointed by the President, by and with the 
advice and consent of the Senate.''.
    (b) Reserve Officers.--Subsection (d) of such section is amended--
            (1) by designating the second sentence of paragraph (5) as 
        paragraph (6) and in that paragraph by striking ``this 
        paragraph'' and inserting ``paragraph (5)''; and
            (2) in paragraph (5)--
                    (A) by inserting ``(A)'' after ``(5)'';
                    (B) by striking ``in the case of retirements 
                effective during the period beginning on October 17, 
                1998, and ending on December 31, 2001'' and inserting 
                ``in the case of transfers to the Retired Reserve and 
                discharges of retirement-qualified officers effective 
                during the period beginning on October 1, 2002, and 
                ending on December 31, 2003''; and
                    (C) by adding at the end (before paragraph (6) as 
                designated by paragraph (1) of this subsection) the 
                following new subparagraphs:

    ``(B) In the case of a person who, upon transfer to the Retired 
Reserve or discharge, is to be credited with satisfactory service in a 
general or flag officer grade under paragraph (1), authority provided by 
the Secretary of Defense to the Secretary of a military

[[Page 116 STAT. 2534]]

department under subparagraph (A) may be exercised with respect to that 
person only if approved by the Secretary of Defense or another civilian 
official in the Office of the Secretary of Defense appointed by the 
President, by and with the advice and consent of the Senate.
    ``(C) Authority provided by the Secretary of Defense to the 
Secretary of a military department under subparagraph (A) may be 
delegated within that military department only to a civilian official of 
that military department appointed by the President, by and with the 
advice and consent of the Senate.''.
    (c) Advance Notice to Congress.--Such section is further amended by 
adding at the end the following new subsection:
    ``(e) Advance Notice to Congressional Committees.--(1) In the case 
of an officer to be retired in a grade that is a general or flag officer 
grade who is eligible to retire in that grade only by reason of an 
exercise of authority under paragraph (2) of subsection (a) to reduce 
the three-year service-in-grade requirement otherwise applicable under 
that paragraph, the Secretary of Defense, before the officer is retired 
in that grade, shall notify the Committee on Armed Services of the 
Senate and the Committee on Armed Services of the House of 
Representatives of the exercise of authority under that paragraph with 
respect to that officer.
    ``(2) In the case of a person to be credited under subsection (d) 
with satisfactory service in a grade that is a general or flag officer 
grade who is eligible to be credited with such service in that grade 
only by reason of an exercise of authority under paragraph (5) of that 
subsection to reduce the three-year service-in-grade requirement 
otherwise applicable under paragraph (3)(A) of that subsection, the 
Secretary of Defense, before the person is credited with such 
satisfactory service in that grade, shall notify the Committee on Armed 
Services of the Senate and the Committee on Armed Services of the House 
of Representatives of the exercise of authority under paragraph (5) of 
that subsection with respect to that officer.
    ``(3) In the case of an officer to whom subsection (c) applies, the 
requirement for notification under paragraph (1) is satisfied if the 
notification is included in the certification submitted with respect to 
that officer under paragraph (1) of such subsection.''.

SEC. 506. AUTHORITY TO REQUIRE THAT AN OFFICER TAKE LEAVE PENDING REVIEW 
            OF A RECOMMENDATION FOR REMOVAL BY A BOARD OF INQUIRY.

    (a) Requirement.--Section 1182(c) of title 10, United States Code, 
is amended--
            (1) by inserting ``(1)'' after ``(c)''; and
            (2) by adding at the end the following new paragraph:

    ``(2) <<NOTE: Regulations.>> Under regulations prescribed by the 
Secretary concerned, an officer as to whom a board of inquiry makes a 
recommendation under paragraph (1) that the officer not be retained on 
active duty may be required to take leave pending the completion of the 
officer's case under this chapter. The officer may be required to begin 
such leave at any time following the officer's receipt of the report of 
the board of inquiry, including the board's recommendation for removal 
from active duty, and the expiration of any period allowed for 
submission by the officer of a rebuttal to that report. The leave may be 
continued until the date on

[[Page 116 STAT. 2535]]

which action by the Secretary concerned on the officer's case is 
completed or may be terminated at any earlier time.''.
    (b) Payment for Mandatory Excess Leave Upon Disapproval of Certain 
Involuntary Separation Recommendations.--Chapter 40 of such title is 
amended by inserting after section 707 the following new section:

``Sec. 707a. Payment upon disapproval of certain board of inquiry 
                        recommendations for excess leave required to be 
                        taken

    ``(a) An officer--
            ``(1) who is required to take leave under section 1182(c)(2) 
        of this title, any period of which is charged as excess leave 
        under section 706(a) of this title, and
            ``(2) whose recommendation for removal from active duty in a 
        report of a board of inquiry is not approved by the Secretary 
        concerned under section 1184 of this title,

shall be paid, as provided in subsection (b), for the period of leave 
charged as excess leave.
    ``(b)(1) An officer entitled to be paid under this section shall be 
deemed, for purposes of this section, to have accrued pay and allowances 
for each day of leave required to be taken under section 1182(c)(2) of 
this title that is charged as excess leave (except any day of accrued 
leave for which the officer has been paid under section 706(b)(1) of 
this title and which has been charged as excess leave).
    ``(2) The officer shall be paid the amount of pay and allowances 
that is deemed to have accrued to the officer under paragraph (1), 
reduced by the total amount of his income from wages, salaries, tips, 
other personal service income, unemployment compensation, and public 
assistance benefits from any Government agency during the period the 
officer is deemed to have accrued pay and allowances. Except 
as <<NOTE: Deadline.>> provided in paragraph (3), such payment shall be 
made within 60 days after the date on which the Secretary concerned 
decides not to remove the officer from active duty.

    ``(3) If an officer is entitled to be paid under this section, but 
fails to provide sufficient information in a timely manner regarding the 
officer's income when such information is requested under regulations 
prescribed under subsection (c), the period of time prescribed in 
paragraph (2) shall be extended until 30 days after the date on which 
the member provides the information requested.
    ``(c) <<NOTE: Regulations.>> This section shall be administered 
under uniform regulations prescribed by the Secretaries concerned. The 
regulations may provide for the method of determining an officer's 
income during any period the officer is deemed to have accrued pay and 
allowances, including a requirement that the officer provide income tax 
returns and other documentation to verify the amount of the officer's 
income.''.

    (c) Conforming Amendments.--(1) Section 706 of such title is 
amended--
            (A) by inserting ``or 1182(c)(2)'' after ``section 876a'' in 
        subsections (a), (b)(1), (b)(2), and (c); and
            (B) by striking ``section 707'' in subsection (b)(2) and 
        inserting ``sections 707 and 707a''.

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

[[Page 116 STAT. 2536]]

``Sec. 706. Administration of leave required to be taken''.

    (d) Clerical Amendments.--The table of sections at the beginning of 
chapter 40 of such title is amended--
            (1) by striking the item relating to section 706 and 
        inserting the following:

``706. Administration of leave required to be taken.'';

        and
            (2) by inserting after the item relating to section 707 the 
        following new item:

``707a. Payment upon disapproval of certain board of inquiry 
           recommendations for excess leave required to be taken.''.

                Subtitle B--Reserve Component Management

SEC. 511. REVIEWS OF NATIONAL GUARD STRENGTH ACCOUNTING AND MANAGEMENT 
            AND OTHER ISSUES.

    (a) Comptroller <<NOTE: Deadline. Reports. 32 USC 104 
note.>> General Assessments.--Not later than one year after the date of 
the enactment of this Act, the Comptroller General shall submit to 
Congress a report on management of the National Guard. The report shall 
include the following:
            (1) The Comptroller General's assessment of the 
        effectiveness of the implementation of Department of Defense 
        plans for improving management and accounting for personnel 
        strengths in the National Guard, including an assessment of the 
        process that the Department of Defense, the National Guard 
        Bureau, the Army National Guard and State-level National Guard 
        leadership, and leadership in the other reserve components have 
        for identifying and addressing in a timely manner specific units 
        in which nonparticipation rates are significantly in excess of 
        the established norms.
            (2) The Comptroller General's assessment of the 
        effectiveness of the process for Federal recognition of senior 
        National Guard officers and recommendations for improvement to 
        that process.
            (3) The Comptroller General's assessment of the process for, 
        and the nature and extent of, the administrative or judicial 
        corrective action taken by the Secretary of Defense, the 
        Secretary of the Army, and the Secretary of the Air Force as a 
        result of Inspector General investigations or other 
        investigations in which allegations against senior National 
        Guard officers are substantiated in whole or in part.
            (4) The Comptroller General's determination of the 
        effectiveness of the Federal protections provided for members or 
        employees of the National Guard who report allegations of waste, 
        fraud, abuse, or mismanagement and the nature and extent to 
        which corrective action is taken against those in the National 
        Guard who retaliate against such members or employees.

    (b) Secretary of Defense Report on Different Army and Air Force 
Procedures.--Not <<NOTE: Deadline.>> later than six months after the 
date of the enactment of this Act, the Secretary of Defense shall submit 
to Congress a report on the differing Army and Air Force policies for 
taking adverse administrative actions against National Guard 


[[Page 116 STAT. 2537]]

officers in a State status. The report shall include the Secretary's 
determination as to whether changes should be made in those policies.

SEC. 512. COURTS-MARTIAL FOR THE NATIONAL GUARD WHEN NOT IN FEDERAL 
            SERVICE.

    (a) Manner of Prescribing Punishments.--Section 326 of title 32, 
United States Code, is amended by adding at the end the following new 
sentence: ``Punishments shall be as provided by the laws of the 
respective States and Territories, Puerto Rico, and the District of 
Columbia.''.
    (b) Convening Authority.--Section 327 of such title is amended to 
read as follows:

``Sec. 327. Courts-martial of National Guard not in Federal service: 
                        convening authority

    ``(a) In the National Guard not in Federal service, general, 
special, and summary courts-martial may be convened as provided by the 
laws of the respective States and Territories, Puerto Rico, and the 
District of Columbia.
    ``(b) In the National Guard not in Federal service--
            ``(1) general courts-martial may be convened by the 
        President;
            ``(2) special courts-martial may be convened--
                    ``(A) by the commanding officer of a garrison, fort, 
                post, camp, air base, auxiliary air base, or other place 
                where members of the National Guard are on duty; or
                    ``(B) by the commanding officer of a division, 
                brigade, regiment, wing, group, detached battalion, 
                separate squadron, or other detached command; and
            ``(3) summary courts-martial may be convened--
                    ``(A) by the commanding officer of a garrison, fort, 
                post, camp, air base, auxiliary air base, or other place 
                where members of the National Guard are on duty; or
                    ``(B) by the commanding officer of a division, 
                brigade, regiment, wing, group, detached battalion, 
                detached squadron, detached company, or other 
                detachment.

    ``(c) The convening authorities provided under subsection (b) are in 
addition to the convening authorities provided under subsection (a).''.
    (c) Repeal of Superseded and Obsolete Provisions.--(1) Sections 328, 
329, 330, 331, 332, and 333 of title 32, United States Code, are 
repealed.
    (2) <<NOTE: Applicability. 32 USC 328 note.>> The provisions of law 
repealed by paragraph (1) shall continue to apply with respect to 
courts-martial convened in the National Guard not in Federal service 
before the date of the enactment of this Act.

    (d) Clerical Amendments.--The table of sections at the beginning of 
chapter 3 of such title is amended by striking the items relating to 
sections 327, 328, 329, 330, 331, 332, and 333 and inserting the 
following:

``327. Courts-martial of National Guard not in Federal service: 
           convening authority.''.

    (e) Models <<NOTE: 32 USC 327 note.>> for State Code of Military 
Justice and State Manual for Courts-Martial.--(1) The Secretary of 
Defense shall prepare a model State code of military justice and a model 
State 


[[Page 116 STAT. 2538]]

manual for courts-martial to recommend to the States for use with 
respect to the National Guard not in Federal service. Both such models 
shall be consistent with the recommendations contained in the report 
that was issued in 1998 by the Department of Defense Panel to Study 
Military Justice in the National Guard not in Federal Service.
    (2) The Secretary shall ensure that adequate support for the 
preparation of the model State code of military justice and the model 
State manual for courts-martial (including the detailing of attorneys 
and other personnel) is provided by the General Counsel of the 
Department of Defense, the Secretary of the Army, the Secretary of the 
Air Force, and the Chief of the National Guard Bureau.
    (3) If the funds available to the Chief of the National Guard Bureau 
are insufficient for paying the cost of the National Guard Bureau 
support required under paragraph (2) (including increased costs of pay 
of members of the National Guard for additional active duty necessitated 
by such requirement and increased cost of detailed attorneys and other 
staff, allowances, and travel expenses related to such support), the 
Secretary shall, upon request made by the Chief of the Bureau, provide 
such additional funding as the Secretary determines necessary to satisfy 
the requirement for such support.
    (4) <<NOTE: Deadline. Reports.>> Not later than one year after the 
date of the enactment of this Act, the Secretary shall submit a report 
on the actions taken to carry out this subsection to the Committee on 
Armed Services of the Senate and the Committee on Armed Services of the 
House of Representatives. The report shall include proposals in final 
form of both the model State code of military justice and the model 
State manual for courts-martial required by paragraph (1), together with 
a discussion of the efforts being made to present those proposals to the 
States for their consideration for enactment or adoption, respectively.

    (5) In this subsection, the term ``State'' includes the District of 
Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, and Guam.

SEC. 513. FISCAL YEAR 2003 FUNDING FOR MILITARY PERSONNEL COSTS OF 
            RESERVE COMPONENT SPECIAL OPERATIONS FORCES PERSONNEL 
            ENGAGED IN HUMANITARIAN ASSISTANCE ACTIVITIES RELATING TO 
            CLEARING OF LANDMINES.

    (a) Use of Reserve Component Military Personnel Funds.--Fiscal year 
2003 reserve component military personnel funds may be used for military 
personnel expenses of reserve component Special Operations forces that 
are incurred during fiscal year 2003 in connection with landmine 
clearance assistance, notwithstanding section 401(c)(1) of title 10, 
United States Code.
    (b) Reimbursement Requirement.--Fiscal year 2003 reserve component 
military personnel funds shall be reimbursed from fiscal year 2003 
landmine clearance assistance funds for all military personnel expenses 
of reserve component Special Operations forces that are incurred during 
fiscal year 2003 in connection with landmine clearance assistance. Such 
reimbursement shall be made in each instance to the reserve component 
military personnel account that incurred the expense.

[[Page 116 STAT. 2539]]

    (c) Limitation.--The amount of reserve component military personnel 
expenses incurred during fiscal year 2003 for landmine clearance 
assistance may not exceed 10 percent of the amount of fiscal year 2003 
landmine clearance assistance funds.
    (d) Definitions.--For purposes of this section:
            (1) Landmine clearance assistance.--The term ``landmine 
        clearance assistance'' means humanitarian and civic assistance 
        provided under section 401 of title 10, United States Code, that 
        is described in subsection (e)(5) of that section.
            (2) Fiscal year 2003 landmine clearance assistance funds.--
        The term ``fiscal year 2003 landmine clearance assistance 
        funds'' means the total amount appropriated for fiscal year 2003 
        in operations and maintenance accounts of the Department of 
        Defense that is provided for landmine clearance assistance.
            (3) Fiscal year 2003 reserve component military personnel 
        funds.--The term ``fiscal year 2003 reserve component military 
        personnel funds'' means amounts appropriated for fiscal year 
        2003 for military personnel expenses of a reserve component of 
        the Department of Defense.
            (4) Military personnel expenses.--The term ``military 
        personnel expenses'' means expenses properly chargeable to a 
        military personnel account of the Department of Defense.

    (e) Legislative Proposal.--The Secretary of Defense shall submit to 
Congress, as part of the budget request of the Department of Defense for 
fiscal year 2004, a legislative proposal that would ensure that military 
personnel expenses for both active and reserve component military 
personnel providing landmine clearance assistance are specified in 
detail and are budgeted to be authorized and appropriated from the 
appropriate military personnel accounts.

SEC. 514. USE OF RESERVES TO PERFORM DUTIES RELATING TO DEFENSE AGAINST 
            TERRORISM.

    (a) Use of Reserves To Perform Duties Relating to Defense Against 
Terrorism.--Section 12304(b) of title 10, United States Code, is amended 
by striking ``involving'' and all that follows and inserting 
``involving--
            ``(1) a use or threatened use of a weapon of mass 
        destruction; or
            ``(2) a terrorist attack or threatened terrorist attack in 
        the United States that results, or could result, in catastrophic 
        loss of life or property.''.

    (b) Conforming Amendment Relating to Full-Time Support of Guard and 
Reserve Personnel.--Section 12310(c)(1) of such title is amended by 
striking ``involving'' and all that follows and inserting ``involving--
            ``(A) the use of a weapon of mass destruction (as defined in 
        section 12304(i)(2) of this title); or
            ``(B) a terrorist attack or threatened terrorist attack in 
        the United States that results, or could result, in catastrophic 
        loss of life or property.''.

SEC. 515. REPEAL OF PROHIBITION ON USE OF AIR FORCE RESERVE AGR 
            PERSONNEL FOR AIR FORCE BASE SECURITY FUNCTIONS.

    (a) Repeal.--Section 12551 of title 10, United States Code, is 
repealed.

[[Page 116 STAT. 2540]]

    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 1215 of such title is amended by striking the item relating to 
section 12551.

         Subtitle C--Reserve Component Officer Personnel Policy

SEC. 521. ELIGIBILITY FOR CONSIDERATION FOR PROMOTION TO GRADE OF MAJOR 
            GENERAL FOR CERTAIN RESERVE COMPONENT BRIGADIER GENERALS WHO 
            DO NOT OTHERWISE QUALIFY FOR CONSIDERATION FOR PROMOTION 
            UNDER THE ONE-YEAR RULE.

    Section 14301(g) of title 10, United States Code, is amended to read 
as follows:
    ``(g) Brigadier Generals.--(1) An officer who is a reserve component 
brigadier general of the Army or the Air Force who is not eligible for 
consideration for promotion under subsection (a) because the officer is 
not on the reserve active status list (as required by paragraph (1) of 
that subsection for such eligibility) is nevertheless eligible for 
consideration for promotion to the grade of major general by a promotion 
board convened under section 14101(a) of this title if--
            ``(A) as of the date of the convening of the promotion 
        board, the officer has been in an inactive status for less than 
        one year; and
            ``(B) immediately before the date of the officer's most 
        recent transfer to an inactive status, the officer had 
        continuously served on the reserve active status list or the 
        active-duty list (or a combination of the reserve active status 
        list and the active-duty list) for at least one year.

    ``(2) An officer who is a reserve component brigadier general of the 
Army or the Air Force who is on the reserve active status list but who 
is not eligible for consideration for promotion under subsection (a) 
because the officer's service does not meet the one-year-of-continuous-
service requirement under paragraph (2) of that subsection is 
nevertheless eligible for consideration for promotion to the grade of 
major general by a promotion board convened under section 14101(a) of 
this title if--
            ``(A) the officer was transferred from an inactive status to 
        the reserve active status list during the one-year period 
        preceding the date of the convening of the promotion board;
            ``(B) immediately before the date of the officer's most 
        recent transfer to an active status, the officer had been in an 
        inactive status for less than one year; and
            ``(C) immediately before the date of the officer's most 
        recent transfer to an inactive status, the officer had 
        continuously served for at least one year on the reserve active 
        status list or the active-duty list (or a combination of the 
        reserve active status list and the active-duty list).''.

SEC. 522. AUTHORITY FOR LIMITED EXTENSION OF MEDICAL DEFERMENT OF 
            MANDATORY RETIREMENT OR SEPARATION OF RESERVE COMPONENT 
            OFFICERS.

    (a) Authority.--Chapter 1407 of title 10, United States Code, is 
amended by adding at the end the following new section:

[[Page 116 STAT. 2541]]

``Sec. 14519. Deferment of retirement or separation for medical reasons

    ``(a) Authority.--If, in the case of an officer required to be 
retired or separated under this chapter or chapter 1409 of this title, 
the Secretary concerned determines that the evaluation of the physical 
condition of the officer and determination of the officer's entitlement 
to retirement or separation for physical disability require 
hospitalization or medical observation and that such hospitalization or 
medical observation cannot be completed with confidence in a manner 
consistent with the officer's well being before the date on which the 
officer would otherwise be required to retire or be separated, the 
Secretary may defer the retirement or separation of the officer.
    ``(b) Period of Deferment.--A deferral of retirement or separation 
under subsection (a) may not extend for more than 30 days after the 
completion of the evaluation requiring hospitalization or medical 
observation.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``14519. Deferment of retirement or separation for medical reasons.''.

        Subtitle D--Enlistment, Education, and Training Programs

SEC. 531. ENLISTMENT INCENTIVES FOR PURSUIT OF SKILLS TO FACILITATE 
            NATIONAL SERVICE.

    (a) Authority.--(1) Chapter 31 of title 10, United States Code, is 
amended by inserting after section 509 the following new section:

``Sec. 510. Enlistment incentives for pursuit of skills to facilitate 
                        national service

    ``(a) Enlistment Incentive Program.--The Secretary of Defense shall 
carry out an enlistment incentive program in accordance with this 
section under which a person who is a National Call to Service 
participant shall be entitled to one of the incentives specified in 
subsection (e). The program shall be carried out during the period 
ending on December 31, 2007, and may be carried out after that date.
    ``(b) National Call to Service Participant.--In this section, the 
term `National Call to Service participant' means a person who has not 
previously served in the armed forces who enters into an original 
enlistment pursuant to a written agreement with the Secretary of a 
military department (in such form and manner as may be prescribed by 
that Secretary) under which the person agrees to perform a period of 
national service as specified in subsection (c).
    ``(c) National Service.--The total period of national service to 
which a National Call to Service participant is obligated under the 
agreement under this section shall be specified in the agreement. Under 
the agreement, the participant shall--
            ``(1) upon completion of initial entry training (as 
        prescribed by the Secretary of Defense), serve on active duty in 
        a military occupational specialty designated by the Secretary of 
        Defense under subsection (d) for a period of 15 months;

[[Page 116 STAT. 2542]]

            ``(2) upon completion of the period of active duty specified 
        in paragraph (1) and without a break in service, serve either 
        (A) an additional period of active duty as determined by the 
        Secretary of Defense, or (B) a period of 24 months in an active 
        status in the Selected Reserve; and
            ``(3) upon completion of the period of service specified in 
        paragraph (2), and without a break in service, serve the 
        remaining period of obligated service specified in the 
        agreement--
                    ``(A) on active duty in the armed forces;
                    ``(B) in the Selected Reserve;
                    ``(C) in the Individual Ready Reserve;
                    ``(D) in the Peace Corps, Americorps, or another 
                national service program jointly designated by the 
                Secretary of Defense and the head of such program for 
                purposes of this section; or
                    ``(E) in any combination of service referred to in 
                subparagraphs (A) through (D) that is approved by the 
                Secretary of the military department concerned pursuant 
                to regulations prescribed by the Secretary of Defense 
                and specified in the agreement.

    ``(d) Designated Military Occupational Specialties.--The Secretary 
of Defense shall designate military occupational specialties for 
purposes of subsection (c)(1). Such military occupational specialties 
shall be military occupational specialties that, as determined by the 
Secretary, will facilitate pursuit of national service by National Call 
to Service participants.
    ``(e) Incentives.--The incentives specified in this subsection are 
as follows:
            ``(1) Payment of a bonus in the amount of $5,000.
            ``(2) Payment in an amount not to exceed $18,000 of 
        outstanding principal and interest on qualifying student loans 
        of the National Call to Service participant.
            ``(3) Entitlement to an allowance for educational assistance 
        at the monthly rate equal to the monthly rate payable for basic 
        educational assistance allowances under section 3015(a)(1) of 
        title 38 for a total of 12 months.
            ``(4) Entitlement to an allowance for educational assistance 
        at the monthly rate equal to 50 percent of the monthly rate 
        payable for basic educational assistance allowances under 
        section 3015(b)(1) of title 38 for a total of 36 months.

    ``(f) Election of Incentive.--A National Call to Service participant 
shall elect in the agreement under subsection (b) which incentive under 
subsection (e) to receive. An election under this subsection is 
irrevocable.
    ``(g) Payment of Bonus Amounts.--(1) Payment to a National Call to 
Service participant of the bonus elected by the National Call to Service 
participant under subsection (e)(1) shall be made in such time and 
manner as the Secretary of Defense shall prescribe.
    ``(2)(A) Payment of outstanding principal and interest on the 
qualifying student loans of a National Call to Service participant, as 
elected under subsection (e)(2), shall be made in such time and manner 
as the Secretary of Defense shall prescribe.
    ``(B) Payment under this paragraph of the outstanding principal and 
interest on the qualifying student loans of a National Call to Service 
participant shall be made to the holder of such student loans, as 
identified by the National Call to Service participant

[[Page 116 STAT. 2543]]

to the Secretary of the military department concerned for purposes of 
such payment.
    ``(3) Payment of a bonus or incentive in accordance with this 
subsection shall be made by the Secretary of the military department 
concerned.
    ``(h) Coordination With Montgomery GI Bill Benefits.--(1)(A) Subject 
to subparagraph (B), a National Call to Service participant who elects 
an incentive under paragraph (3) or (4) of subsection (e) is not 
entitled to additional educational assistance under chapter 1606 of this 
title or to basic educational assistance under subchapter II of chapter 
30 of title 38.
    ``(B) If a National Call to Service participant meets all 
eligibility requirements specified in chapter 1606 of this title or 
chapter 30 of title 38 for entitlement to allowances for educational 
assistance under either such chapter, the participant may become 
eligible for allowances for educational assistance benefits under either 
such chapter up to the maximum allowance provided less the total amount 
of allowance paid under paragraph (3) or (4) of subsection (e).
    ``(2)(A) The Secretary of Defense shall, to the maximum extent 
practicable, administer the receipt by National Call to Service 
participants of incentives under paragraph (3) or (4) of subsection (e) 
as if such National Call to Service participants were, in receiving such 
incentives, receiving educational assistance for members of the Selected 
Reserve under chapter 1606 of this title.
    ``(B) <<NOTE: Regulations.>> The Secretary of Defense shall, in 
consultation with the Secretary of Veterans Affairs, prescribe 
regulations for purposes of subparagraph (A). Such regulations shall, to 
the maximum extent practicable, take into account the administrative 
provisions of chapters 30 and 36 of title 38 that are specified in 
section 16136 of this title.

    ``(3)(A) Except as provided in paragraph (1), nothing in this 
section shall prohibit a National Call to Service participant who 
satisfies through service under subsection (c) the eligibility 
requirements for educational assistance under chapter 1606 of this title 
or basic educational assistance under chapter 30 of title 38 from an 
entitlement to such educational assistance under chapter 1606 of this 
title or basic educational assistance under chapter 30 of title 38, as 
the case may be.
    ``(B)(i) A participant who made an election not to receive 
educational assistance under either such chapter at the applicable time 
specified under law or who was denied the opportunity to make an 
election may revoke that election or make an initial election, as the 
case may be, at such time and in such manner as the Secretary concerned 
may specify. A revocation or initial election under the preceding 
sentence is irrevocable.
    ``(ii) The participant making a revocation or initial election under 
clause (i) shall be eligible for educational assistance under either 
such chapter at such time as the participant satisfies through service 
the applicable eligibility requirements under either such chapter.
    ``(i) Repayment.--(1) If a National Call to Service participant who 
has entered into an agreement under subsection (b) and received or 
benefited from an incentive under subsection (e)(1) or (e)(2) fails to 
complete the total period of service specified in such agreement, the 
National Call to Service participant shall refund to the United States 
the amount that bears the same ratio

[[Page 116 STAT. 2544]]

to the amount of the incentive as the uncompleted part of such service 
bears to the total period of such service.
    ``(2) Subject to paragraph (3), an obligation to reimburse the 
United States imposed under paragraph (1) is for all purposes a debt 
owed to the United States.
    ``(3) The Secretary concerned may waive, in whole or in part, a 
reimbursement required under paragraph (1) if the Secretary concerned 
determines that recovery would be against equity and good conscience or 
would be contrary to the best interests of the United States.
    ``(4) A discharge in bankruptcy under title 11 that is entered into 
less than five years after the termination of an agreement entered into 
under subsection (b) does not discharge the person signing the agreement 
from a debt arising under the agreement or under paragraph (1).
    ``(j) Funding.--Amounts for payment of incentives under subsection 
(e), including payment of allowances for educational assistance under 
that subsection, shall be derived from amounts available to the 
Secretary of the military department concerned for payment of pay, 
allowances, and other expenses of the members of the armed force 
concerned.
    ``(k) Regulations.--The Secretary of Defense and the Secretaries of 
the military departments shall prescribe regulations for purposes of the 
program under this section.
    ``(l) Definitions.--In this section:
            ``(1) The term `Americorps' means the Americorps program 
        carried out under subtitle C of title I of the National and 
        Community Service Act of 1990 (42 U.S.C. 12571 et seq.).
            ``(2) The term `qualifying student loan' means a loan, the 
        proceeds of which were used to pay any part or all of the cost 
        of attendance (as defined in section 472 of the Higher Education 
        Act of 1965 (20 U.S.C. 1087ll) at an institution of higher 
        education (as defined in section 101 of the Higher Education Act 
        of 1965 (20 U.S.C. 1001).
            ``(3) The term `Secretary of a military department' 
        includes, with respect to matters concerning the Coast Guard 
        when it is not operating as a service in the Navy, the Secretary 
        of the Department in which the Coast Guard is operating.''.

    (2) The table of sections at the beginning of that chapter is 
amended by inserting after the item relating to section 509 the 
following new item:

``510. Enlistment incentives for pursuit of skills to facilitate 
           national service.''.

    (b) Commencement <<NOTE: 10 USC 510 note.>> of Program.--The 
Secretary of Defense shall prescribe the date on which the program 
provided for section 510 of title 10, United States Code, as added by 
subsection (a), shall commence. <<NOTE: Deadline.>> Such date shall be 
not later than October 1, 2003.

    (c) Conforming Repeal.--Section 3264 of title 10, United States 
Code, is repealed. The table of sections at the beginning of chapter 333 
of such title is amended by striking the item relating to section 3264.
    (d) Implementation <<NOTE: Deadline. 10 USC 510 note.>> Report.--Not 
later than March 31, 2003, the Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives a report on the Secretary's plans for implementation of 
section 510 of title 10, United States Code, as added by subsection (a).

[[Page 116 STAT. 2545]]

    (e) Effectiveness <<NOTE: Deadlines. 10 USC 510 note.>> Reports.--
Not later than March 31, 2005, and March 31, 2007, the Secretary of 
Defense shall submit to the committees specified in subsection (d) 
reports on the effectiveness of the program under section 510 of title 
10, United States Code, as added by subsection (a), in attracting new 
recruits to national service.

SEC. 532. AUTHORITY FOR PHASED INCREASE TO 4,400 IN AUTHORIZED STRENGTHS 
            FOR THE SERVICE ACADEMIES.

    (a) Military Academy.--Section 4342 of title 10, United States Code, 
is amended--
            (1) in subsection (a), by inserting before the period at the 
        end of the first sentence the following: ``or such higher number 
        as may be prescribed by the Secretary of the Army under 
        subsection (j)''; and
            (2) by adding at the end the following new subsection:

    ``(j)(1) Beginning with the 2003-2004 academic year, the Secretary 
of the Army may prescribe annual increases in the cadet strength limit 
in effect under subsection (a). For any academic year, any such increase 
shall be by no more than 100 cadets or such lesser number as applies 
under paragraph (3) for that year. Such annual increases may be 
prescribed until the cadet strength limit is 4,400. However, no increase 
may be prescribed for any academic year after the 2007-2008 academic 
year.
    ``(2) Any increase in the cadet strength limit under paragraph (1) 
with respect to an academic year shall be prescribed not later than the 
date on which the budget of the President is submitted to Congress under 
section 1105 of title 31 for the fiscal year beginning in the same year 
as the year in which that academic year begins. Whenever the Secretary 
prescribes such an increase, the Secretary shall submit to Congress a 
notice in writing of the increase. The notice shall state the amount of 
the increase in the cadet strength limit and the new cadet strength 
limit, as so increased, and the amount of the increase in Senior Army 
Reserve Officers' Training Corps enrollment under each of sections 2104 
and 2107 of this title.
    ``(3) The amount of an increase under paragraph (1) in the cadet 
strength limit for an academic year may not exceed the increase (if any) 
for the preceding academic year in the total number of cadets enrolled 
in the Army Senior Reserve Officers' Training Corps program under 
chapter 103 of this title who have entered into an agreement under 
section 2104 or 2107 of this title.
    ``(4) In this subsection, the term `cadet strength limit' means the 
authorized maximum strength of the Corps of Cadets of the Academy.''.
    (b) Naval Academy.--Section 6954 of title 10, United States Code, is 
amended--
            (1) in subsection (a), by inserting before the period at the 
        end of the first sentence the following: ``or such higher number 
        as may be prescribed by the Secretary of the Navy under 
        subsection (h)''; and
            (2) by adding at the end the following new subsection:

    ``(h)(1) Beginning with the 2003-2004 academic year, the Secretary 
of the Navy may prescribe annual increases in the midshipmen strength 
limit in effect under subsection (a). For any academic year, any such 
increase shall be by no more than 100 midshipmen or such lesser number 
as applies under paragraph

[[Page 116 STAT. 2546]]

(3) for that year. Such annual increases may be prescribed until the 
midshipmen strength limit is 4,400. However, no increase may be 
prescribed for any academic year after the 2007-2008 academic year.
    ``(2) <<NOTE: Deadline.>> Any increase in the midshipmen strength 
limit under paragraph (1) with respect to an academic year shall be 
prescribed not later than the date on which the budget of the President 
is submitted to Congress under section 1105 of title 31 for the fiscal 
year beginning in the same year as the year in which that academic year 
begins. <<NOTE: Notice.>> Whenever the Secretary prescribes such an 
increase, the Secretary shall submit to Congress a notice in writing of 
the increase. The notice shall state the amount of the increase in the 
midshipmen strength limit and the new midshipmen strength limit, as so 
increased, and the amount of the increase in Senior Navy Reserve 
Officers' Training Corps enrollment under each of sections 2104 and 2107 
of this title.

    ``(3) The amount of an increase under paragraph (1) in the 
midshipmen strength limit for an academic year may not exceed the 
increase (if any) for the preceding academic year in the total number of 
midshipmen enrolled in the Navy Senior Reserve Officers' Training Corps 
program under chapter 103 of this title who have entered into an 
agreement under section 2104 or 2107 of this title.
    ``(4) In this subsection, the term `midshipmen strength limit' means 
the authorized maximum strength of the Brigade of Midshipmen.''.
    (c) Air Force Academy.--Section 9342 of title 10, United States 
Code, is amended--
            (1) in subsection (a), by inserting before the period at the 
        end of the first sentence the following: ``or such higher number 
        as may be prescribed by the Secretary of the Air Force under 
        subsection (j)''; and
            (2) by adding at the end the following new subsection:

    ``(j)(1) Beginning with the 2003-2004 academic year, the Secretary 
of the Air Force may prescribe annual increases in the cadet strength 
limit in effect under subsection (a). For any academic year, any such 
increase shall be by no more than 100 cadets or such lesser number as 
applies under paragraph (3) for that year. Such annual increases may be 
prescribed until the cadet strength limit is 4,400. However, no increase 
may be prescribed for any academic year after the 2007-2008 academic 
year.
    ``(2) <<NOTE: Deadline.>> Any increase in the cadet strength limit 
under paragraph (1) with respect to an academic year shall be prescribed 
not later than the date on which the budget of the President is 
submitted to Congress under sections 1105 of title 31 for the fiscal 
year beginning in the same year as the year in which that academic year 
begins. <<NOTE: Notice.>> Whenever the Secretary prescribes such an 
increase, the Secretary shall submit to Congress a notice in writing of 
the increase. The notice shall state the amount of the increase in the 
cadet strength limit and the new cadet strength limit, as so increased, 
and the amount of the increase in Senior Air Force Reserve Officers' 
Training Corps enrollment under each of sections 2104 and 2107 of this 
title.

    ``(3) The amount of an increase under paragraph (1) in the cadet 
strength limit for an academic year may not exceed the increase (if any) 
for the preceding academic year in the total number of cadets enrolled 
in the Air Force Senior Reserve Officers' Training

[[Page 116 STAT. 2547]]

Corps program under chapter 103 of this title who have entered into an 
agreement under section 2104 or 2107 of this title.
    ``(4) In this subsection, the term `cadet strength limit' means the 
authorized maximum strength of Air Force Cadets of the Academy.''.
    (d) Target for Increases in Number of ROTC Scholarship 
Participants.--Section 2107 of such title is amended by adding at the 
end the following new subsection:
    ``(i) The Secretary of each military department shall seek to 
achieve an increase in the number of agreements entered into under this 
section so as to achieve an increase, by the 2006-2007 academic year, of 
not less than 400 in the number of cadets or midshipmen, as the case may 
be, enrolled under this section, compared to such number enrolled for 
the 2002-2003 academic year. In the case of the Secretary of the Navy, 
the Secretary shall seek to ensure that not less than one-third of such 
increase in agreements under this section are with students enrolled (or 
seeking to enroll) in programs of study leading to a baccalaureate 
degree in nuclear engineering or another appropriate technical, 
scientific, or engineering field of study.''.
    (e) Repeal of Limit on Number of ROTC Scholarships.--Section 2107 of 
such title is further amended by striking the first sentence of 
subsection (h)(1).
    (f) Repeal of Obsolete Language.--Section 4342(i) of such title is 
amended by striking ``(beginning with the 2001-2002 academic year)''.

SEC. 533. ENHANCEMENT OF RESERVE COMPONENT DELAYED TRAINING PROGRAM.

    (a) Increase in Time Following Enlistment for Commencement of 
Initial Period of Active Duty for Training.--Section 12103(d) of title 
10, United States Code, is amended by striking ``270 days'' in the last 
sentence and inserting ``one year''.
    (b) Effective <<NOTE: 10 USC 12103 note.>> Date.--The amendment made 
by subsection (a) shall apply with respect to enlistments under section 
12103(d) of title 10, United States Code, after the end of the 90-day 
period beginning on the date of the enactment of this Act.

    (c) Transition.--In <<NOTE: 10 USC 12103 note.>> the case of a 
person who enlisted under section 12103(d) of title 10, United States 
Code, before the date of the enactment of this Act and who as of such 
date has not commenced the required initial period of active duty for 
training under that section, the amendment made by subsection (a) may be 
applied to that person, but only with the agreement of that person and 
the Secretary concerned.

SEC. 534. REVIEW OF ARMED FORCES PROGRAMS FOR PREPARATION FOR, 
            PARTICIPATION IN, AND CONDUCT OF ATHLETIC COMPETITIONS.

    (a) Requirement for Review.--The Secretary of Defense shall conduct 
a comprehensive review of the programs of the active and reserve 
components of the Armed Forces for preparation for, participation in, 
and conduct of athletic competitions.
    (b) Consideration of Funding.--The matters reviewed under subsection 
(a) shall include the funding sources that are currently available for 
the programs referred to in such subsection and any relevant limitations 
on the use of such funding sources.
    (c) Report.--Not <<NOTE: Deadline.>> later than March 3, 2003, the 
Secretary shall submit to the Committees on Armed Services of the Senate 
and 


[[Page 116 STAT. 2548]]

the House of Representatives a report on the Secretary's findings and 
conclusions resulting from the review. The report shall include the 
following matters:
            (1) The Secretary's views on the adequacy of the existing 
        funding sources for the programs referred to in subsection (a).
            (2) Any recommendations that the Secretary may have 
        regarding limitations on the use of such funding sources or any 
        inadequacies in the funding for such programs.
            (3) An assessment of the issues related to, and 
        recommendations of the Secretary for, achieving consistent 
        funding and policy treatment with regard to participation by 
        active and reserve component personnel in athletic competitions.
            (4) Any recommended legislation that the Secretary considers 
        appropriate regarding such programs.

SEC. 535. REPEAL OF BAR TO ELIGIBILITY OF ARMY COLLEGE FIRST PROGRAM 
            PARTICIPANTS FOR BENEFITS UNDER STUDENT LOAN REPAYMENT 
            PROGRAM.

    Subsection (e) of section 573 of the National Defense Authorization 
Act for Fiscal Year 2000 (Public Law 106-65; 10 U.S.C. 513 note) is 
repealed.

                   Subtitle E--Decorations and Awards

SEC. 541. WAIVER OF TIME LIMITATIONS FOR AWARD OF ARMY DISTINGUISHED-
            SERVICE CROSS TO CERTAIN PERSONS.

    (a) Waiver.--Any limitation established by law or policy for the 
time within which a recommendation for the award of a military 
decoration or award must be submitted shall not apply to awards of 
decorations described in subsection (b), the award of each such 
decoration having been determined by the Secretary of the Army to be 
warranted in accordance with section 1130 of title 10, United States 
Code.
    (b) Distinguished-Service <<NOTE: Applicability.>> Cross of the 
Army.--Subsection (a) applies to the award of the Distinguished-Service 
Cross of the Army as follows:
            (1) To Henry Johnson of Albany, New York, for extraordinary 
        heroism in France during the period of May 13 to 15, 1918, while 
        serving as a member of the Army.
            (2) To Hilliard Carter of Jackson, Mississippi, for 
        extraordinary heroism in actions near Troung Loung, Republic of 
        Vietnam, on September 28, 1966, while serving as a member of the 
        Army.
            (3) To Albert C. Welch of Florrisant, Colorado, for 
        extraordinary heroism in actions in Ong Thanh, Binh Long 
        Province, Republic of Vietnam, on October 17, 1967, while 
        serving as a member of the Army.

SEC. 542. OPTION TO CONVERT AWARD OF ARMED FORCES EXPEDITIONARY MEDAL 
            AWARDED FOR OPERATION FREQUENT WIND TO VIETNAM SERVICE 
            MEDAL.

    (a) In General.--The Secretary of the military department concerned 
shall, upon the application of an individual who is an eligible Vietnam 
evacuation veteran, award that individual the Vietnam Service Medal, 
notwithstanding any otherwise applicable requirements for the award of 
that medal. Any such award shall

[[Page 116 STAT. 2549]]

be made in lieu of the Armed Forces Expeditionary Medal awarded the 
individual for participation in Operation Frequent Wind.
    (b) Eligible Vietnam Evacuation Veteran.--For purposes of this 
section, the term ``eligible Vietnam evacuation veteran'' means a member 
or former member of the Armed Forces who was awarded the Armed Forces 
Expeditionary Medal for participation in military operations designated 
as Operation Frequent Wind arising from the evacuation of Vietnam on 
April 29 and 30, 1975.

SEC. 543. KOREA DEFENSE SERVICE MEDAL.

    (a) Findings.--Congress <<NOTE: 10 USC 3755 note.>> makes the 
following findings:
            (1) More than 40,000 members of the United States Armed 
        Forces have served in the Republic of Korea or the waters 
        adjacent thereto each year since the signing of the cease-fire 
        agreement in July 1953 ending the Korean War.
            (2) An estimated 1,200 members of the United States Armed 
        Forces have died as a direct result of their service in Korea 
        since the cease-fire agreement in July 1953.

    (b) Army.--(1) Chapter 357 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 3755. Korea Defense Service Medal

    ``(a) The Secretary of the Army shall issue a campaign medal, to be 
known as the Korea Defense Service Medal, to each person who while a 
member of the Army served in the Republic of Korea or the waters 
adjacent thereto during the KDSM eligibility period and met the service 
requirements for the award of that medal prescribed under subsection 
(c).
    ``(b) In this section, the term `KDSM eligibility period' means the 
period beginning on July 28, 1954, and ending on such date after the 
date of the enactment of this section as may be determined by the 
Secretary of Defense to be appropriate for terminating eligibility for 
the Korea Defense Service Medal.
    ``(c) The Secretary of the Army shall prescribe service requirements 
for eligibility for the Korea Defense Service Medal. Those requirements 
shall not be more stringent than the service requirements for award of 
the Armed Forces Expeditionary Medal for instances in which the award of 
that medal is authorized.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``3755. Korea Defense Service Medal.''.

    (c) Navy and Marine Corps.--(1) Chapter 567 of title 10, United 
States Code, is amended by adding at the end the following new section:

``Sec. 6257. Korea Defense Service Medal

    ``(a) The Secretary of the Navy shall issue a campaign medal, to be 
known as the Korea Defense Service Medal, to each person who while a 
member of the Navy or Marine Corps served in the Republic of Korea or 
the waters adjacent thereto during the KDSM eligibility period and met 
the service requirements for the award of that medal prescribed under 
subsection (c).
    ``(b) In this section, the term `KDSM eligibility period' means the 
period beginning on July 28, 1954, and ending on such date after the 
date of the enactment of this section as may be determined

[[Page 116 STAT. 2550]]

by the Secretary of Defense to be appropriate for terminating 
eligibility for the Korea Defense Service Medal.
    ``(c) The Secretary of the Navy shall prescribe service requirements 
for eligibility for the Korea Defense Service Medal. Those requirements 
shall not be more stringent than the service requirements for award of 
the Armed Forces Expeditionary Medal for instances in which the award of 
that medal is authorized.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``6257. Korea Defense Service Medal.''.

    (d) Air Force.--(1) Chapter 857 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 8755. Korea Defense Service Medal

    ``(a) The Secretary of the Air Force shall issue a campaign medal, 
to be known as the Korea Defense Service Medal, to each person who while 
a member of the Air Force served in the Republic of Korea or the waters 
adjacent thereto during the KDSM eligibility period and met the service 
requirements for the award of that medal prescribed under subsection 
(c).
    ``(b) In this section, the term `KDSM eligibility period' means the 
period beginning on July 28, 1954, and ending on such date after the 
date of the enactment of this section as may be determined by the 
Secretary of Defense to be appropriate for terminating eligibility for 
the Korea Defense Service Medal.
    ``(c) The Secretary of the Air Force shall prescribe service 
requirements for eligibility for the Korea Defense Service Medal. Those 
requirements shall not be more stringent than the service requirements 
for award of the Armed Forces Expeditionary Medal for instances in which 
the award of that medal is authorized.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``8755. Korea Defense Service Medal.''.

    (e) Award <<NOTE: 10 USC 3755 note.>> for Service Before Date of 
Enactment.--The Secretary of the military department concerned shall 
take appropriate steps to provide in a timely manner for the issuance of 
the Korea Defense Service Medal, upon application therefor, to persons 
whose eligibility for that medal is by reason of service in the Republic 
of Korea or the waters adjacent thereto before the date of the enactment 
of this Act.

SEC. 544. COMMENDATION OF MILITARY CHAPLAINS.

    (a) Findings.--Congress finds the following:
            (1) Military chaplains have served with those who fought for 
        the cause of freedom since the founding of the Nation.
            (2) Military chaplains and religious support personnel of 
        the Armed Forces have served with distinction as uniformed 
        members of the Armed Forces in support of the Nation's defense 
        missions during every conflict in the history of the United 
        States.
            (3) 400 United States military chaplains have died in 
        combat, some as a result of direct fire while ministering to 
        fallen Americans, while others made the ultimate sacrifice as a 
        prisoner of war.

[[Page 116 STAT. 2551]]

            (4) Military chaplains currently serve in humanitarian 
        operations, rotational deployments, and in the war on terrorism.
            (5) Religious organizations make up the very fabric of 
        religious diversity and represent unparalleled levels of freedom 
        of conscience, speech, and worship that set the United States 
        apart from any other nation on Earth.
            (6) Religious organizations have richly blessed the 
        uniformed services by sending clergy to comfort and encourage 
        all persons of faith in the Armed Forces.
            (7) During the sinking of the USS Dorchester in February 
        1943 during World War II, four chaplains (Reverend Fox, Reverend 
        Poling, Father Washington, and Rabbi Goode) gave their lives so 
        that others might live.
            (8) All military chaplains aid and assist members of the 
        Armed Forces and their family members with the challenging 
        issues of today's world.
            (9) The current war against terrorism has brought to the 
        shores of the United States new threats and concerns that strike 
        at the beliefs and emotions of Americans.
            (10) Military chaplains must, as never before, deal with the 
        spiritual well-being of the members of the Armed Forces and 
        their families.

    (b) Commendation.--Congress, on behalf of the Nation, expresses its 
appreciation for the outstanding contribution that all military 
chaplains make to the members of the Armed Forces and their families.
    (c) Presidential Proclamation.--The President is authorized and 
requested to issue a proclamation calling on the people of the United 
States to recognize the distinguished service of the Nation's military 
chaplains.

                   Subtitle F--Administrative Matters

SEC. 551. STAFFING AND FUNDING FOR DEFENSE PRISONER OF WAR/MISSING 
            PERSONNEL OFFICE.

    (a) Requirement for Staffing and Funding At Levels Required for 
Performance of Full Range of Missions.--Subsection (a) of section 1501 
of title 10, United States Code, is amended by adding at the end the 
following new paragraph:
    ``(5)(A) The Secretary of Defense shall ensure that the office is 
provided sufficient military and civilian personnel, and sufficient 
funding, to enable the office to fully perform the complete range of 
missions of the office. The Secretary shall ensure that Department of 
Defense programming, planning, and budgeting procedures are structured 
so as to ensure compliance with the preceding sentence for each fiscal 
year.
    ``(B) For any fiscal year, the number of military and civilian 
personnel assigned or detailed to the office may not be less than the 
number requested in the President's budget for fiscal year 2003, unless 
a level below such number is expressly required by law.
    ``(C) For any fiscal year, the level of funding allocated to the 
office within the Department of Defense may not be below the level 
requested for such purposes in the President's budget for fiscal year 
2003, unless such a level of funding is expressly required by law.''.

[[Page 116 STAT. 2552]]

    (b) Name of Office.--Such subsection is further amended by inserting 
after the first sentence of paragraph (1) the following new sentence: 
``Such office shall be known as the Defense Prisoner of War/Missing 
Personnel Office.''.

SEC. 552. THREE-YEAR FREEZE ON REDUCTIONS OF PERSONNEL OF AGENCIES 
            RESPONSIBLE FOR REVIEW AND CORRECTION OF MILITARY RECORDS.

    (a) In General.--Chapter 79 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 1559. Personnel limitation

    ``(a) Limitation.--During fiscal years 2003, 2004, and 2005, the 
Secretary of a military department may not carry out any reduction in 
the number of military and civilian personnel assigned to duty with the 
service review agency for that military department below the baseline 
number for that agency until--
            ``(1) the Secretary submits to Congress a report that--
                    ``(A) describes the reduction proposed to be made;
                    ``(B) provides the Secretary's rationale for that 
                reduction; and
                    ``(C) specifies the number of such personnel that 
                would be assigned to duty with that agency after the 
                reduction; and
            ``(2) a period of 90 days has elapsed after the date on 
        which the report is submitted.

    ``(b) Baseline Number.--The baseline number for a service review 
agency under this section is--
            ``(1) for purposes of the first report with respect to a 
        service review agency under this section, the number of military 
        and civilian personnel assigned to duty with that agency as of 
        January 1, 2002; and
            ``(2) for purposes of any subsequent report with respect to 
        a service review agency under this section, the number of such 
        personnel specified in the most recent report with respect to 
        that agency under this section.

    ``(c) Service Review Agency Defined.--In this section, the term 
`service review agency' means--
            ``(1) with respect to the Department of the Army, the Army 
        Review Boards Agency;
            ``(2) with respect to the Department of the Navy, the Board 
        for Correction of Naval Records; and
            ``(3) with respect to the Department of the Air Force, the 
        Air Force Review Boards Agency.''.

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

``1559. Personnel limitation.''.

SEC. 553. AUTHORITY FOR ACCEPTANCE OF VOLUNTARY SERVICES OF INDIVIDUALS 
            AS PROCTORS FOR ADMINISTRATION OF ARMED SERVICES VOCATIONAL 
            APTITUDE BATTERY TEST.

    Section 1588(a) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:

[[Page 116 STAT. 2553]]

            ``(6) Voluntary services as a proctor for administration to 
        secondary school students of the test known as the `Armed 
        Services Vocational Aptitude Battery'.''.

SEC. 554. EXTENSION OF TEMPORARY EARLY RETIREMENT AUTHORITY.

    Effective <<NOTE: Effective date. 10 USC 1293 note.>> January 1, 
2002, section 4403(i) of the National Defense Authorization Act for 
Fiscal Year 1993 (10 U.S.C. 1293 note) is amended by striking ``December 
31, 2001'' and inserting ``September 1, 2002''.

Subtitle G--Matters Relating to Minorities and Women in the Armed Forces

SEC. 561. SURVEYS OF RACIAL AND ETHNIC ISSUES AND OF GENDER ISSUES IN 
            THE ARMED FORCES.

    (a) Division of Annual Survey Into Four Quadrennial Surveys.--(1) 
Section 481 of title 10, United States Code, is amended to read as 
follows:

``Sec. 481. Racial and ethnic issues; gender issues: surveys

    ``(a) In General.--(1) The Secretary of Defense shall carry out four 
quadrennial surveys (each in a separate year) in accordance with this 
section to identify and assess racial and ethnic issues and 
discrimination, and to identify and assess gender issues and 
discrimination, among members of the armed forces. Each such survey 
shall be conducted so as to identify and assess the extent (if any) of 
activity among such members that may be seen as so-called `hate group' 
activity.
    ``(2) The four surveys shall be as follows:
            ``(A) To identify and assess racial and ethnic issues and 
        discrimination among members of the armed forces serving on 
        active duty.
            ``(B) To identify and assess racial and ethnic issues and 
        discrimination among members of the armed forces in the reserve 
        components.
            ``(C) To identify and assess gender issues and 
        discrimination among members of the armed forces serving on 
        active duty.
            ``(D) To identify and assess gender issues and 
        discrimination members of the armed forces in the reserve 
        components.

    ``(3) The surveys under this section relating to racial and ethnic 
issues and discrimination shall be known as the `Armed Forces Workplace 
and Equal Opportunity Surveys'. The surveys under this section relating 
to gender issues and discrimination shall be known as the `Armed Forces 
Workplace and Gender Relations Surveys'.
    ``(4) Each survey under this section shall be conducted separately 
from any other survey conducted by the Department of Defense.
    ``(b) Armed Forces Workplace and Equal Opportunity Surveys.--The 
Armed Forces Workplace and Equal Opportunity Surveys shall be conducted 
so as to solicit information on racial and ethnic issues, including 
issues relating to harassment and discrimination, and the climate in the 
armed forces for forming professional relationships among members of the 
armed forces of various racial

[[Page 116 STAT. 2554]]

and ethnic groups. Both such surveys shall be conducted so as to solicit 
information on the following:
            ``(1) Indicators of positive and negative trends for 
        professional and personal relationships among members of all 
        racial and ethnic groups.
            ``(2) The effectiveness of Department of Defense policies 
        designed to improve relationships among all racial and ethnic 
        groups.
            ``(3) The effectiveness of current processes for complaints 
        on and investigations into racial and ethnic discrimination.

    ``(c) Armed Forces Workplace and Gender Relations Surveys.--The 
Armed Forces Workplace and Gender Relations Surveys shall be conducted 
so as to solicit information on gender issues, including issues relating 
to gender-based harassment and discrimination, and the climate in the 
armed forces for forming professional relationships between male and 
female members of the armed forces. Both such surveys shall be conducted 
so as to solicit information on the following:
            ``(1) Indicators of positive and negative trends for 
        professional and personal relationships between male and female 
        members of the armed forces.
            ``(2) The effectiveness of Department of Defense policies 
        designed to improve professional relationships between male and 
        female members of the armed forces.
            ``(3) The effectiveness of current processes for complaints 
        on and investigations into gender-based discrimination.

    ``(d) Surveys To Be Conducted in Different Years.--Each of the four 
quadrennial surveys conducted under this section shall be conducted in a 
different year from any other survey conducted under this section, so 
that one such survey is conducted during each year.
    ``(e) Reports to Congress.--Upon the completion of a survey under 
this section, the Secretary shall submit to Congress a report containing 
the results of the survey.
    ``(f) Inapplicability to Coast Guard.--This section does not apply 
to the Coast Guard.''.
    (2) The item relating to such section in the table of sections at 
the beginning of chapter 23 of such title is amended to read as follows:

``481. Racial and ethnic issues; gender issues: surveys.''.

    (b) Effective <<NOTE: 10 USC 481 note.>> Date.--The first survey 
under section 481 of title 10, United States Code, as amended by 
subsection (a)(1), shall be carried out during 2003.

SEC. 562. <<NOTE: 10 USC 481 note.>> ANNUAL REPORT ON STATUS OF FEMALE 
            MEMBERS OF THE ARMED FORCES.

    (a) Requirement for Report.--The Secretary of Defense shall submit 
to Congress, for each of fiscal years 2002 through 2006, a report on the 
status of female members of the Armed Forces. Information in the annual 
report shall be shown for the Department of Defense as a whole and 
separately for each of the Army, Navy, Air Force, and Marine Corps.
    (b) Matters To Be Included.--The report for a fiscal year under 
subsection (a) shall include the following information:

[[Page 116 STAT. 2555]]

            (1) The positions, weapon systems, and fields of skills for 
        which, by policy, female members are not eligible for 
        assignment, as follows:
                    (A) In the report for fiscal year 2002--
                          (i) an identification of each position, weapon 
                      system, and field of skills for which, by policy, 
                      female members are not eligible; and
                          (ii) the rationale for the applicability of 
                      the policy to each such position, weapon system, 
                      and field.
                    (B) In the report for each fiscal year after fiscal 
                year 2002, the positions, weapon systems, and fields for 
                which policy on the eligibility of female members for 
                assignment has changed during that fiscal year, 
                including a discussion of how the policy has changed and 
                the rationale for the change.
            (2) Information on joint spouse assignments, as follows:
                    (A) The number of cases in which members of the 
                Armed Forces married to each other are in assignments to 
                which they were jointly assigned during that fiscal 
                year, as defined in the applicable Department of Defense 
                and military department personnel assignment policies.
                    (B) The number of cases in which members of the 
                Armed Forces married to each other are in assignments to 
                which they were assigned during that fiscal year, but 
                were not jointly assigned (as so defined).
            (3) Promotion selection rates for female members, for male 
        members, and for all personnel in the reports submitted by 
        promotion selection boards in that fiscal year for promotion to 
        grades E-7, E-8, and E-9, and, in the case of commissioned 
        officers, promotion to grades O-4, O-5, and O-6.
            (4) Retention rates for female members in each grade and for 
        male members in each grade during that fiscal year.
            (5) Selection rates for female members and for male members 
        for assignment to grade O-6 and grade O-5 command positions in 
        reports of command selection boards that were submitted during 
        that fiscal year.
            (6) Selection rates for female members and for male members 
        for attendance at intermediate service schools (ISS) and, 
        separately, for attendance at senior service schools (SSS) in 
        reports of selection boards that were submitted during that 
        fiscal year.
            (7) The extent of assignments of female members during that 
        fiscal year in each field in which at least 80 percent of the 
        Armed Forces personnel assigned in the field are men.
            (8) The incidence of sexual harassment complaints made 
        during that fiscal year, stated as the number of cases in which 
        complaints of sexual harassment were filed under procedures of 
        military departments that are applicable to the submission of 
        sexual harassment complaints, together with the number and 
        percent of the complaints that were substantiated.
            (9) Satisfaction (based on surveys) of female active-duty 
        members, female dependents of active-duty members, and female 
        dependents of nonactive duty members entitled to health care 
        provided by the Department of Defense with access to, and 
        quality of, women's health care benefits provided by the 
        Department of Defense.

[[Page 116 STAT. 2556]]

    (c) Time <<NOTE: Deadline.>> for Report.--The report for a fiscal 
year under this section shall be submitted not later than 120 days after 
the end of that fiscal year.

SEC. 563. WEAR OF ABAYAS BY FEMALE MEMBERS OF THE ARMED FORCES IN SAUDI 
            ARABIA.

    (a) Prohibition Relating to Wear of Abayas.--No member of the Armed 
Forces having authority over a member of the Armed Forces and no officer 
or employee of the United States having authority over a member of the 
Armed Forces may require or encourage that member to wear the abaya 
garment or any part of the abaya garment while the member is in the 
Kingdom of Saudi Arabia pursuant to a permanent change of station or 
orders for temporary duty.
    (b) Instruction.--(1) The Secretary of Defense shall provide each 
female member of the Armed Forces ordered to a permanent change of 
station or temporary duty in the Kingdom of Saudi Arabia with 
instruction regarding the prohibition in subsection (a). Such 
instruction shall be provided immediately upon or not more than 48 hours 
prior to the arrival of the member at a United States military 
installation within the Kingdom of Saudi Arabia. The instruction shall 
be presented orally and in writing. The written instruction shall 
include the full text of this section.
    (2) In carrying out paragraph (1), the Secretary shall act through 
the Commander in Chief, United States Central Command and Joint Task 
Force Southwest Asia, and the commanders of the Army, Navy, Air Force, 
and Marine Corps components of the United States Central Command and 
Joint Task Force Southwest Asia.
    (c) Prohibition on Use of Funds for Procurement of Abayas.--Funds 
appropriated or otherwise made available to the Department of Defense 
may not be used to procure abayas for regular or routine issuance to 
members of the Armed Forces serving in the Kingdom of Saudi Arabia or 
for any personnel of contractors accompanying the Armed Forces in the 
Kingdom of Saudi Arabia in the performance of contracts entered into by 
the United States with such contractors.

                          Subtitle H--Benefits

SEC. 571. DEPARTMENT OF DEFENSE SUPPORT FOR PERSONS PARTICIPATING IN 
            MILITARY FUNERAL HONORS DETAILS.

    Section 1491(d) of title 10, United States Code, is amended--
            (1) by striking ``To provide a'' after ``Support.--'' and 
        inserting ``(1) To support a'';
            (2) by redesignating paragraph (1) as subparagraph (A) and 
        amending such subparagraph, as so redesignated, to read as 
        follows:
            ``(A) For a person who participates in a funeral honors 
        detail (other than a person who is a member of the armed forces 
        not in a retired status or an employee of the United States), 
        either transportation (or reimbursement for transportation) and 
        expenses or the daily stipend prescribed under paragraph (2).'';
            (3) by redesignating paragraph (2) as subparagraph (B) and 
        in that subparagraph--

[[Page 116 STAT. 2557]]

                    (A) by striking ``Materiel, equipment, and training 
                for'' and inserting ``For''; and
                    (B) by inserting before the period at the end ``and 
                for members of the armed forces in a retired status, 
                materiel, equipment, and training'';
            (4) by redesignating paragraph (3) as subparagraph (C) and 
        in that subparagraph--
                    (A) by striking ``Articles of clothing for'' and 
                inserting ``For''; and
                    (B) by inserting ``, articles of clothing'' after 
                ``subsection (b)(2)''; and
            (5) by adding at the end the following new paragraphs:

    ``(2) The Secretary of Defense shall prescribe annually a flat rate 
daily stipend for purposes of paragraph (1)(A). Such stipend shall be 
set at a rate so as to encompass typical costs for transportation and 
other miscellaneous expenses for persons participating in funeral honors 
details who are members of the armed forces in a retired status and 
other persons who are not members of the armed forces or employees of 
the United States.
    ``(3) A stipend paid under this subsection to a member of the armed 
forces in a retired status is in addition to any compensation to which 
the member is entitled under section 435(a)(2) of title 37 and any other 
compensation to which the member may be entitled.''.

SEC. 572. EMERGENCY LEAVE OF ABSENCE PROGRAM.

    (a) In General.--Chapter 40 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 709. Emergency leave of absence

    ``(a) Emergency Leave of Absence.--The Secretary concerned may grant 
a member of the armed forces emergency leave of absence for a qualifying 
emergency.
    ``(b) Limitations.--An emergency leave of absence under this 
section--
            ``(1) may be granted only once for any member;
            ``(2) may be granted only to prevent the member from 
        entering unearned leave status or excess leave status; and
            ``(3) may not extend for a period of more than 14 days.

    ``(c) Qualifying Emergency.--In this section, the term `qualifying 
emergency', with respect to a member of the armed forces, means a 
circumstance that--
            ``(1) is due to--
                    ``(A) a medical condition of a member of the 
                immediate family of the member; or
                    ``(B) any other hardship that the Secretary 
                concerned determines appropriate for purposes of this 
                section; and
            ``(2) is verified to the Secretary's satisfaction based upon 
        information or opinion from a source in addition to the member 
        that the Secretary considers to be objective and reliable.

    ``(d) Military Department Regulations.--Regulations prescribed under 
this section by the Secretaries of the military department shall be as 
uniform as practicable and shall be subject to approval by the Secretary 
of Defense.
    ``(e) Definitions.--In this section:
            ``(1) The term `unearned leave status' means leave approved 
        to be used by a member of the armed forces that exceeds

[[Page 116 STAT. 2558]]

        the amount of leave credit that has been accrued as a result of 
        the member's active service and that has not been previously 
        used by the member.
            ``(2) The term `excess leave status' means leave approved to 
        be used by a member of the armed forces that is unearned leave 
        for which a member is unable to accrue leave credit during the 
        member's current term of service before the member's 
        separation.''.

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

``709. Emergency leave of absence.''.

SEC. 573. ENHANCED FLEXIBILITY IN MEDICAL LOAN REPAYMENT PROGRAM.

    (a) Eligible Persons.--Subsection (d) of section 2173 of title 10, 
United States Code, is amended by striking ``Participants'' and all that 
follows through ``and students'' and inserting ``Students''.
    (b) Loan Repayment Amounts.--Subsection (e)(2) of such section is 
amended by striking the last sentence.

SEC. 574. DESTINATIONS AUTHORIZED FOR GOVERNMENT PAID TRANSPORTATION OF 
            ENLISTED PERSONNEL FOR REST AND RECUPERATION ABSENCE UPON 
            EXTENDING DUTY AT DESIGNATED LOCATIONS OVERSEAS.

    (a) Expansion of Benefits.--Subsection (b)(2) of section 705 of 
title 10, United States Code, is amended by inserting before the period 
at the end the following: ``, or to an alternative destination and 
return at a cost not to exceed the cost of round-trip transportation 
from the location of the extended tour of duty to such nearest port''.
    (b) Change in Terminology.--(1) Subsection (b) of such section is 
further amended by striking ``recuperative'' in paragraphs (1) and (2) 
and inserting ``recuperation''.
    (2)(A) The heading of such section is amended to read as follows:

``Sec. 705. Rest and recuperation absence: qualified enlisted members 
                        extending duty at designated locations 
                        overseas''.

    (B) The item relating to such section in the table of sections at 
the beginning of chapter 40 of such title is amended to read as follows:

``705. Rest and recuperation absence: qualified enlisted members 
           extending duty at designated locations overseas.''.

SEC. 575. VEHICLE STORAGE IN LIEU OF TRANSPORTATION WHEN MEMBER IS 
            ORDERED TO A NONFOREIGN DUTY STATION OUTSIDE CONTINENTAL 
            UNITED STATES.

    (a) Storage Costs Authorized.--Subsection (b) of section 2634 of 
title 10, United States Code, is amended by striking paragraphs (1) and 
(2) and inserting the following:
    ``(b)(1) When a member receives a vehicle storage qualifying order, 
the member may elect to have a motor vehicle described in subsection (a) 
stored at the expense of the United States at a location approved by the 
Secretary concerned. In the case of a vehicle storage qualifying order 
that is to make a change of

[[Page 116 STAT. 2559]]

permanent station, such storage is in lieu of transportation authorized 
by subsection (a).
    ``(2) In this subsection, the term `vehicle storage qualifying 
order' means any of the following:
            ``(A) An order to make a change of permanent station to a 
        foreign country in a case in which the laws, regulations, or 
        other restrictions imposed by the foreign country or by the 
        United States either--
                    ``(i) preclude entry of a motor vehicle described in 
                subsection (a) into that country; or
                    ``(ii) would require extensive modification of the 
                vehicle as a condition to entry.
            ``(B) An order to make a change of permanent station to a 
        nonforeign area outside the continental United States in a case 
        in which the laws, regulations, or other restrictions imposed by 
        that area or by the United States either--
                    ``(i) preclude entry of a motor vehicle described in 
                subsection (a) into that area; or
                    ``(ii) would require extensive modification of the 
                vehicle as a condition to entry.
            ``(C) An order under which a member is transferred or 
        assigned in connection with a contingency operation to duty at a 
        location other than the permanent station of the member for a 
        period of more than 30 consecutive days but which is not 
        considered a change of permanent station.''.

    (b) Nonforeign Area Outside the Continental United States Defined.--
Subsection (h) of such section is amended by adding at the end the 
following new paragraph:
            ``(3) The term `nonforeign area outside the continental 
        United States' means any of the following: the States of Alaska 
        and Hawaii, the Commonwealths of Puerto Rico and the Northern 
        Mariana Islands, and any possession of the United States.''.

    (c) Effective <<NOTE: 10 USC 2634 note.>> Date.--The amendments made 
by this section apply to orders to make a change of permanent station to 
a nonforeign area outside the continental United States (as such term is 
defined in subsection (h)(3) of section 2634 of title 10, United States 
Code, as added by subsection (b)) that are issued on or after the date 
of the enactment of this Act.

                           Subtitle I--Reports

SEC. 581. QUADRENNIAL QUALITY OF LIFE REVIEW.

    (a) Requirement for Review.--(1) Chapter 2 of title 10, United 
States Code, is amended by inserting after section 118 the following new 
section:

``Sec. 118a. Quadrennial quality of life review

    ``(a) Review Required.--(1) The Secretary of Defense shall every 
four years conduct a comprehensive examination of the quality of life of 
the members of the armed forces (to be known as the `quadrennial quality 
of life review'). The review shall include examination of the programs, 
projects, and activities of the Department of Defense, including the 
morale, welfare, and recreation activities.
    ``(2) The quadrennial quality of life review shall be designed to 
result in determinations, and to foster policies and actions, that

[[Page 116 STAT. 2560]]

reflect the priority given the quality of life of members of the armed 
forces as a primary concern of the Department of Defense leadership.
    ``(b) Conduct of Review.--Each quadrennial quality of life review 
shall be conducted so as--
            ``(1) to assess quality of life priorities and issues 
        consistent with the most recent National Security Strategy 
        prescribed by the President pursuant to section 108 of the 
        National Security Act of 1947 (50 U.S.C. 404a);
            ``(2) to identify actions that are needed in order to 
        provide members of the armed forces with the quality of life 
        reasonably necessary to encourage the successful execution of 
        the full range of missions that the members are called on to 
        perform under the national security strategy; and
            ``(3) to identify other actions that have the potential for 
        improving the quality of life of the members of the armed 
        forces.

    ``(c) Considerations.--The Secretary shall consider addressing the 
following matters as part of the quadrennial quality of life review:
            ``(1) Infrastructure.
            ``(2) Military construction.
            ``(3) Physical conditions at military installations and 
        other Department of Defense facilities.
            ``(4) Budget plans.
            ``(5) Adequacy of medical care for members of the armed 
        forces and their dependents.
            ``(6) Adequacy of housing and the basic allowance for 
        housing and basic allowance for subsistence.
            ``(7) Housing-related utility costs.
            ``(8) Educational opportunities and costs.
            ``(9) Length of deployments.
            ``(10) Rates of pay and pay differentials between the pay of 
        members and the pay of civilians.
            ``(11) Retention and recruiting efforts.
            ``(12) Workplace safety.
            ``(13) Support services for spouses and children.
            ``(14) Other elements of Department of Defense programs and 
        Government policies and programs that affect the quality of life 
        of members.

    ``(d) Submission <<NOTE: Reports.>> to Congressional Committees.--
(1) The Secretary shall submit a report on each quadrennial quality of 
life review to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives. The report 
shall include the following:
            ``(A) The assumptions used in the review.
            ``(B) The results of the review, including a comprehensive 
        discussion of how the quality of life of members of the armed 
        forces affects the national security strategy of the United 
        States.

    ``(2) <<NOTE: Deadline.>> The report shall be submitted in the year 
following the year in which the review is conducted, but not later than 
the date on which the President submits the budget for the next fiscal 
year to Congress under section 1105(a) of title 31.''.

[[Page 116 STAT. 2561]]

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 118 the 
following new item:

``118a. Quadrennial quality of life review.''.

    (b) First <<NOTE: Deadline. 10 USC 118a note.>> Quadrennial Quality 
of Life Review.--The first quadrennial quality of life review under 
section 118a of title 10, United States Code, as added by subsection 
(a), shall be conducted during 2003, and the report on that review 
required to be submitted to Congress under subsection (d) of such 
section shall be submitted not later than the date on which the 
President submits the budget for fiscal year 2005 to Congress.

SEC. 582. REPORT ON DESIRABILITY AND FEASIBILITY OF CONSOLIDATING 
            SEPARATE COURSES OF BASIC INSTRUCTION FOR JUDGE ADVOCATES.

    Not <<NOTE: Deadline.>> later than February 1, 2003, 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 desirability and feasibility of consolidating the separate 
Army, Navy, and Air Force courses of basic instruction for judge 
advocates into a single course to be conducted at a single location. The 
report shall include--
            (1) an assessment of the advantages and disadvantages of 
        such a consolidation;
            (2) a recommendation as to whether such a consolidation is 
        desirable and feasible; and
            (3) any proposal for legislative action that the Secretary 
        considers appropriate for carrying out such a consolidation.

SEC. 583. REPORTS ON EFFORTS TO RESOLVE STATUS OF CAPTAIN MICHAEL SCOTT 
            SPEICHER, UNITED STATES NAVY.

    (a) Reports.--Not <<NOTE: Deadline.>> later than 90 days after the 
date of the enactment of this Act, and every 120 days thereafter, the 
Secretary of Defense shall submit to Congress a report on the efforts of 
the United States Government to determine the status of Captain Michael 
Scott Speicher, United States Navy, whose aircraft was shot down over 
Iraq on the night of January 17, 1991. Each such report shall be 
prepared in consultation with the Secretary of State and the Director of 
Central Intelligence.

    (b) Period Covered by Reports.--The first report under subsection 
(a) shall cover efforts described in that subsection from the time that 
Michael Scott Speicher's aircraft was shot down over Iraq until the date 
of the report, and each subsequent report shall cover efforts described 
in that subsection since the last such report.
    (c) Report Elements.--Each report under subsection (a) shall 
describe, for the period covered by such report, the following:
            (1) All direct and indirect contacts by the United States 
        Government with the Government of Iraq regarding the status of 
        Michael Scott Speicher.
            (2) Any request made by the United States Government to the 
        government of another country, including the intelligence 
        service of such country, for assistance in resolving the status 
        of Michael Scott Speicher, including the response to such 
        request.

[[Page 116 STAT. 2562]]

            (3) Each current lead on the status of Michael Scott 
        Speicher, including an assessment of the utility of such lead in 
        resolving the status of Michael Scott Speicher.
            (4) Any cooperation with nongovernmental organizations or 
        international organizations in resolving the status of Michael 
        Scott Speicher, including the results of such cooperation.

    (d) Form of Reports.--Each report under subsection (a) shall be 
submitted in classified or unclassified form. To the extent submitted in 
classified form, such report shall include an unclassified summary.
    (e) Duration.--The requirement to submit reports under this section 
shall cease to be effective upon a final determination regarding the 
status of Michael Scott Speicher by the Secretary of Defense.

SEC. 584. REPORT ON VOLUNTEER SERVICES OF MEMBERS OF THE RESERVE 
            COMPONENTS IN EMERGENCY RESPONSE TO THE TERRORIST ATTACKS OF 
            SEPTEMBER 11, 2001.

    (a) Requirement <<NOTE: Deadline.>> for Report.--Not later than 180 
days after the date of the enactment of this Act, the Secretary of 
Defense shall submit to the Committees on Armed Services of the Senate 
and House of Representatives a report on volunteer services described in 
subsection (b) that were provided by members of the reserve components 
of the Armed Forces, while not in a duty status pursuant to orders, 
during the period of September 11 through September 14, 2001. The report 
shall include a discussion of any recognition that the Secretary 
considers appropriate for those members regarding the provision of such 
services.

    (b) Covered Volunteer Services.--The volunteer services referred to 
in subsection (a) are volunteer services of a military-unique nature 
that were provided--
            (1) in the vicinity of the site of the World Trade Center, 
        New York, New York, in support of emergency response to the 
        terrorist attack on the World Trade Center on September 11, 
        2001;
            (2) in the vicinity of the Pentagon, Arlington, Virginia, in 
        support of emergency response to the terrorist attack on the 
        Pentagon on September 11, 2001; or
            (3) in the vicinity of Shanksville, Pennsylvania, in support 
        of emergency response to the terrorist-caused crash of United 
        Airlines Flight 93 in Shanksville, Pennsylvania, on September 
        11, 2001.

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2003.
Sec. 602. Basic allowance for housing in cases of low-cost or no-cost 
           moves.
Sec. 603. Rate of basic allowance for subsistence for enlisted personnel 
           occupying single Government quarters without adequate 
           availability of meals.

           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.

[[Page 116 STAT. 2563]]

Sec. 614. One-year extension of other bonus and special pay authorities.
Sec. 615. Increase in maximum rates for certain special pays, bonuses, 
           and financial assistance for health care professionals.
Sec. 616. Assignment incentive pay.
Sec. 617. Increase in maximum rates for prior service enlistment bonus.
Sec. 618. Retention incentives for health care professionals qualified 
           in a critical military skill.

            Subtitle C--Travel and Transportation Allowances

Sec. 621. Extension of leave travel deferral period for members 
           performing consecutive overseas tours of duty.
Sec. 622. Transportation of motor vehicles for members reported missing.

              Subtitle D--Retired Pay and Survivor Benefits

Sec. 631. Permanent reduction from eight to six in number of years of 
           reserve service required for eligibility for retired pay for 
           non-regular service.
Sec. 632. Increased retired pay for enlisted Reserves credited with 
           extraordinary heroism.
Sec. 633. Elimination of possible inversion in retired pay cost-of-
           living adjustment for initial COLA computation.
Sec. 634. Technical revisions to so-called ``forgotten widows'' annuity 
           program.
Sec. 635. Expansion of authority of Secretary of Defense to waive time 
           limitations on claims against the Government for military 
           personnel benefits.
Sec. 636. Special compensation for certain combat-related disabled 
           uniformed services retirees.

                     Subtitle E--Montgomery GI Bill

Sec. 641. Time limitation for use of Montgomery GI Bill entitlement by 
           members of the Selected Reserve.
Sec. 642. Repayment requirements under Reserve Component Montgomery GI 
           Bill arising from failure to participate satisfactorily in 
           military service to be considered debts owed to the United 
           States.
Sec. 643. Technical adjustments to authority for certain members to 
           transfer educational assistance under Montgomery GI Bill to 
           dependents.

                        Subtitle F--Other Matters

Sec. 651. Payment of interest on student loans.
Sec. 652. Additional authority to provide assistance for families of 
           members of the Armed Forces.
Sec. 653. Repeal of authority for acceptance of honoraria by personnel 
           at certain Department of Defense schools.
Sec. 654. Addition of definition of continental United States in title 
           37.

                     Subtitle A--Pay and Allowances

SEC. 601. <<NOTE: 37 USC 1009 note.>> INCREASE IN BASIC PAY FOR FISCAL 
            YEAR 2003.

    (a) Waiver of Section 1009 Adjustment.--The adjustment to become 
effective during fiscal year 2003 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 <<NOTE: Effective date.>> in Basic Pay.--Effective on 
January 1, 2003, the rates of monthly basic pay for members of the 
uniformed services within each pay grade are as follows:
      

                        COMMISSIONED OFFICERS \1\
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade     2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
O-10 \2\........      $0.00      $0.00      $0.00      $0.00       $0.00
O-9.............       0.00       0.00       0.00       0.00        0.00
O-8.............   7,474.50   7,719.30   7,881.60   7,927.20    8,129.40
O-7.............   6,210.90   6,499.20   6,633.00   6,739.20    6,930.90
O-6.............   4,603.20   5,057.10   5,388.90   5,388.90    5,409.60

[[Page 116 STAT. 2564]]

 
O-5.............   3,837.60   4,323.00   4,622.40   4,678.50    4,864.80
O-4.............   3,311.10   3,832.80   4,088.70   4,145.70    4,383.00
O-3 \3\.........   2,911.20   3,300.30   3,562.20   3,883.50    4,069.50
O-2 \3\.........   2,515.20   2,864.70   3,299.40   3,410.70    3,481.20
O-1 \3\.........   2,183.70   2,272.50   2,746.80   2,746.80    2,746.80
                 -------------------------------------------------------
                    Over 8    Over 10    Over 12    Over 14     Over 16
                 -------------------------------------------------------
O-10 \2\........      $0.00      $0.00      $0.00      $0.00       $0.00
O-9.............       0.00       0.00       0.00       0.00        0.00
O-8.............   8,468.70   8,547.30   8,868.90   8,961.30    9,238.20
O-7.............   7,120.80   7,340.40   7,559.40   7,779.00    8,468.70
O-6.............   5,641.20   5,672.10   5,672.10   5,994.60    6,564.30
O-5.............   4,977.00   5,222.70   5,403.00   5,635.50    5,991.90
O-4.............   4,637.70   4,954.50   5,201.40   5,372.70    5,471.10
O-3 \3\.........   4,273.50   4,405.80   4,623.30   4,736.10    4,736.10
O-2 \3\.........   3,481.20   3,481.20   3,481.20   3,481.20    3,481.20
O-1 \3\.........   2,746.80   2,746.80   2,746.80   2,746.80    2,746.80
                 -------------------------------------------------------
                   Over 18    Over 20    Over 22    Over 24     Over 26
                 -------------------------------------------------------
O-10 \2\........      $0.00  $12,077.7  $12,137.1  $12,389.4  $12,829.20
                                     0          0          0
O-9.............       0.00  10,563.60  10,715.70  10,935.60   11,319.60
O-8.............   9,639.00  10,008.90  10,255.80  10,255.80   10,255.80
O-7.............   9,051.30   9,051.30   9,051.30   9,051.30    9,096.90
O-6.............   6,898.80   7,233.30   7,423.50   7,616.10    7,989.90
O-5.............   6,161.70   6,329.10   6,519.60   6,519.60    6,519.60
O-4.............   5,528.40   5,528.40   5,528.40   5,528.40    5,528.40
O-3 \3\.........   4,736.10   4,736.10   4,736.10   4,736.10    4,736.10
O-2 \3\.........   3,481.20   3,481.20   3,481.20   3,481.20    3,481.20
O-1 \3\.........   2,746.80   2,746.80   2,746.80   2,746.80    2,746.80
------------------------------------------------------------------------
\1\ Notwithstanding the basic pay rates specified in this table, the
  actual rate of basic pay for commissioned officers in pay grades 0-7
  through O-10 may not exceed the rate of pay for level III of the
  Executive Schedule and the actual rate of basic pay for all other
  officers may not exceed the rate of pay for level V of the Executive
  Schedule.
\2\ Subject to the preceding footnote, the rate of basic pay for an
  officer in this grade while serving as Chairman or Vice Chairman of
  the Joint Chiefs of Staff, Chief of Staff of the Army, Chief of Naval
  Operations, Chief of Staff of the Air Force, Commandant of the Marine
  Corps, or Commandant of the Coast Guard is $14,155.50, regardless of
  cumulative years of service computed under section 205 of title 37,
  United States Code.
\3\ This table does not apply to commissioned officers in pay grade O-1,
  O-2, or O-3 who have been credited with over 4 years of active duty
  service as an enlisted member or warrant officer.


  COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE AS AN
                   ENLISTED MEMBER OR WARRANT OFFICER
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade     2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
O-3E............      $0.00      $0.00      $0.00  $3,883.50   $4,069.50
O-2E............       0.00       0.00       0.00   3,410.70    3,481.20
O-1E............       0.00       0.00       0.00   2,746.80    2,933.70
                 -------------------------------------------------------
                    Over 8    Over 10    Over 12    Over 14     Over 16
                 -------------------------------------------------------
O-3E............  $4,273.50  $4,405.80  $4,623.30  $4,806.30   $4,911.00
O-2E............   3,591.90   3,778.80   3,923.40   4,031.10    4,031.10

[[Page 116 STAT. 2565]]

 
O-1E............   3,042.00   3,152.70   3,261.60   3,410.70    3,410.70
                 -------------------------------------------------------
                   Over 18    Over 20    Over 22    Over 24     Over 26
                 -------------------------------------------------------
O-3E............  $5,054.40  $5,054.40  $5,054.40  $5,054.40   $5,054.40
O-2E............   4,031.10   4,031.10   4,031.10   4,031.10    4,031.10
O-1E............   3,410.70   3,410.70   3,410.70   3,410.70    3,410.70
------------------------------------------------------------------------


                          WARRANT OFFICERS \1\
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade      2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
W-5..............      $0.00      $0.00      $0.00      $0.00      $0.00
W-4..............   3,008.10   3,236.10   3,329.10   3,420.60   3,578.10
W-3..............   2,747.10   2,862.00   2,979.30   3,017.70   3,141.00
W-2..............   2,416.50   2,554.50   2,675.10   2,763.00   2,838.30
W-1..............   2,133.90   2,308.50   2,425.50   2,501.10   2,662.50
                  ------------------------------------------------------
                     Over 8    Over 10    Over 12    Over 14    Over 16
                  ------------------------------------------------------
W-5..............      $0.00      $0.00      $0.00      $0.00      $0.00
W-4..............   3,733.50   3,891.00   4,044.60   4,203.60   4,356.00
W-3..............   3,281.70   3,467.40   3,580.50   3,771.90   3,915.60
W-2..............   2,993.10   3,148.50   3,264.00   3,376.50   3,453.90
W-1..............   2,782.20   2,888.40   3,006.90   3,085.20   3,203.40
                  ------------------------------------------------------
                    Over 18    Over 20    Over 22    Over 24    Over 26
                  ------------------------------------------------------
W-5..............      $0.00  $5,169.30  $5,346.60  $5,524.50  $5,703.30
W-4..............   4,512.00   4,664.40   4,822.50   4,978.20   5,137.50
W-3..............   4,058.40   4,201.50   4,266.30   4,407.00   4,548.00
W-2..............   3,579.90   3,705.90   3,831.00   3,957.30   3,957.30
W-1..............   3,320.70   3,409.50   3,409.50   3,409.50   3,409.50
------------------------------------------------------------------------
\1\ Notwithstanding the basic pay rates specified in this table, the
  actual rate of basic pay for warrant officers may not exceed the rate
  of pay for level V of the Executive Schedule.


                          ENLISTED MEMBERS \1\
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade      2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
E-9 \2\..........      $0.00      $0.00      $0.00      $0.00      $0.00
E-8..............       0.00       0.00       0.00       0.00       0.00
E-7..............   2,068.50   2,257.80   2,343.90   2,428.20   2,516.40
E-6..............   1,770.60   1,947.60   2,033.70   2,117.10   2,204.10
E-5..............   1,625.40   1,733.70   1,817.40   1,903.50   2,037.00
E-4..............   1,502.70   1,579.80   1,665.30   1,749.30   1,824.00
E-3..............   1,356.90   1,442.10   1,528.80   1,528.80   1,528.80
E-2..............   1,290.00   1,290.00   1,290.00   1,290.00   1,290.00
E-1..............        \3\   1,150.80   1,150.80   1,150.80   1,150.80
                    1,150.80
                  ------------------------------------------------------

[[Page 116 STAT. 2566]]

 
                     Over 8    Over 10    Over 12    Over 14    Over 16
                  ------------------------------------------------------
E-9 \2\..........      $0.00  $3,564.30  $3,645.00  $3,747.00  $3,867.00
E-8..............   2,975.40   3,061.20   3,141.30   3,237.60   3,342.00
E-7..............   2,667.90   2,753.40   2,838.30   2,990.40   3,066.30
E-6..............   2,400.90   2,477.40   2,562.30   2,636.70   2,663.10
E-5..............   2,151.90   2,236.80   2,283.30   2,283.30   2,283.30
E-4..............   1,824.00   1,824.00   1,824.00   1,824.00   1,824.00
E-3..............   1,528.80   1,528.80   1,528.80   1,528.80   1,528.80
E-2..............   1,290.00   1,290.00   1,290.00   1,290.00   1,290.00
E-1..............   1,150.80   1,150.80   1,150.80   1,150.80   1,150.80
                  ------------------------------------------------------
                    Over 18    Over 20    Over 22    Over 24    Over 26
                  ------------------------------------------------------
E-9 \2\..........  $3,987.30  $4,180.80  $4,344.30  $4,506.30  $4,757.40
E-8..............   3,530.10   3,625.50   3,787.50   3,877.50   4,099.20
E-7..............   3,138.60   3,182.70   3,331.50   3,427.80   3,671.40
E-6..............   2,709.60   2,709.60   2,709.60   2,709.60   2,709.60
E-5..............   2,283.30   2,283.30   2,283.30   2,283.30   2,283.30
E-4..............   1,824.00   1,824.00   1,824.00   1,824.00   1,824.00
E-3..............   1,528.80   1,528.80   1,528.80   1,528.80   1,528.80
E-2..............   1,290.00   1,290.00   1,290.00   1,290.00   1,290.00
E-1..............   1,150.80   1,150.80   1,150.80   1,150.80   1,150.80
------------------------------------------------------------------------
\1\ Notwithstanding the basic pay rates specified in this table, the
  actual rate of basic pay for enlisted members may not exceed the rate
  of pay for level V of the Executive Schedule.
\2\ Subject to the preceding footnote, the rate of basic pay for an
  enlisted member in this grade while serving as Sergeant Major of the
  Army, Master Chief Petty Officer of the Navy, Chief Master Sergeant of
  the Air Force, Sergeant Major of the Marine Corps, or Master Chief
  Petty Officer of the Coast Guard, basic pay is $5,732.70, regardless
  of cumulative years of service computed under section 205 of title 37,
  United States Code.
\3\ In the case of members in pay grade E-1 who have served less than 4
  months on active duty, the rate of basic pay is $1,064.70.

SEC. 602. BASIC ALLOWANCE FOR HOUSING IN CASES OF LOW-COST OR NO-COST 
            MOVES.

    Section 403 of title 37, United States Code, is amended--
            (1) by transferring paragraph (7) of subsection (b) to the 
        end of the section; and
            (2) in such paragraph--
                    (A) by striking ``(7)'' and all that follows through 
                ``circumstances of which make it necessary that the 
                member be'' and inserting ``(o) Treatment of Low-Cost 
                and No-Cost Moves as Not Being Reassignments.--In the 
                case of a member who is assigned to duty at a location 
                or under circumstances that make it necessary for the 
                member to be''; and
                    (B) by inserting ``for the purposes of this 
                section'' after ``may be treated''.

SEC. 603. RATE OF BASIC ALLOWANCE FOR SUBSISTENCE FOR ENLISTED PERSONNEL 
            OCCUPYING SINGLE GOVERNMENT QUARTERS WITHOUT ADEQUATE 
            AVAILABILITY OF MEALS.

    Section 402(d) of title 37, United States Code, is amended to read 
as follows:

[[Page 116 STAT. 2567]]

    ``(d) Special Rate for Enlisted Members Occupying Single Quarters 
Without Adequate Availability of Meals.--The Secretary of Defense, and 
the Secretary of the department in which the Coast Guard is operating, 
may pay an enlisted member the basic allowance for subsistence under 
this section at a monthly rate that is twice the amount in effect under 
subsection (b)(2) while--
            ``(1) the member is assigned to single Government quarters 
        which have no adequate food storage or preparation facility in 
        the quarters; and
            ``(2) there is no Government messing facility serving those 
        quarters that is capable of making meals available to the 
        occupants of the quarters.''.

           Subtitle B--Bonuses and Special and Incentive Pays

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

    (a) Selected Reserve Reenlistment Bonus.--Section 308b(f ) of title 
37, United States Code, is amended by striking ``December 31, 2002'' and 
inserting ``December 31, 2003''.
    (b) Selected Reserve Enlistment Bonus.--Section 308c(e) of such 
title is amended by striking ``December 31, 2002'' and inserting 
``December 31, 2003''.
    (c) Special Pay for Enlisted Members Assigned to Certain High 
Priority Units.--Section 308d(c) of such title is amended by striking 
``December 31, 2002'' and inserting ``December 31, 2003''.
    (d) Selected Reserve Affiliation Bonus.--Section 308e(e) of such 
title is amended by striking ``December 31, 2002'' and inserting 
``December 31, 2003''.
    (e) Ready Reserve Enlistment and Reenlistment Bonus.--Section 
308h(g) of such title is amended by striking ``December 31, 2002'' and 
inserting ``December 31, 2003''.
    (f) Prior Service Enlistment Bonus.--Section 308i(f ) of such title 
is amended by striking ``December 31, 2002'' and inserting ``December 
31, 2003''.

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, 
2002'' and inserting ``December 31, 2003''.
    (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, 2003'' and inserting ``January 1, 
2004''.
    (c) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of 
title 37, United States Code, is amended by striking ``December 31, 
2002'' and inserting ``December 31, 2003''.
    (d) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of such title is amended by striking ``December 31, 2002'' 
and inserting ``December 31, 2003''.
    (e) Special Pay for Selected Reserve Health Professionals in 
Critically Short Wartime Specialties.--Section

[[Page 116 STAT. 2568]]

302g(f ) of such title is amended by striking ``December 31, 2002'' and 
inserting ``December 31, 2003''.
    (f) Accession Bonus for Dental Officers.--Section 302h(a)(1) of such 
title is amended by striking ``December 31, 2002'' and inserting 
``December 31, 2003''.

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, 2002'' and inserting ``December 31, 
2003''.
    (b) Nuclear Career Accession Bonus.--Section 312b(c) of such title 
is amended by striking ``December 31, 2002'' and inserting ``December 
31, 2003''.
    (c) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of such 
title is amended by striking ``December 31, 2002'' and inserting 
``December 31, 2003''.

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, 2002'' and 
inserting ``December 31, 2003''.
    (b) Reenlistment Bonus for Active Members.--Section 308(g) of such 
title is amended by striking ``December 31, 2002'' and inserting 
``December 31, 2003''.
    (c) Enlistment Bonus for Active Members.--Section 309(e) of such 
title is amended by striking ``December 31, 2002'' and inserting 
``December 31, 2003''.
    (d) Retention Bonus for Members With Critical Military Skills.--
Section 323(i) of such title is amended by striking ``December 31, 
2002'' and inserting ``December 31, 2003''.
    (e) Accession Bonus for New Officers in Critical Skills.--Section 
324(g) of such title is amended by striking ``December 31, 2002'' and 
inserting ``December 31, 2003''.

SEC. 615. INCREASE IN MAXIMUM RATES FOR CERTAIN SPECIAL PAYS, BONUSES, 
            AND FINANCIAL ASSISTANCE FOR HEALTH CARE PROFESSIONALS.

    (a) Retention Bonus for Medical Officers.--Section 301d(a)(2) of 
title 37, United States Code, is amended by striking ``$14,000'' and 
inserting ``$50,000''.
    (b) Retention Bonus for Dental Officers.--Section 301e(a)(2) of such 
title is amended by striking ``$14,000'' and inserting ``$50,000''.
    (c) Incentive Special Pay for Medical Officers.--Section 302(b)(1) 
of such title is amended by striking the second sentence and inserting 
the following new sentence: ``The amount of incentive special pay paid 
to an officer under this subsection may not exceed $50,000 for any 12-
month period.''.
    (d) Retention Special Pay Optometrists.--Section 302a(b)(1) of such 
title is amended by striking ``$6,000'' and inserting ``$15,000''.
    (e) Accession Bonus for Registered Nurses.--Section 302d(a)(2) of 
such title is amended by striking ``$5,000'' and inserting ``$30,000''.

[[Page 116 STAT. 2569]]

    (f) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of such title is amended by striking ``$15,000'' and 
inserting ``$50,000''.
    (g) Retention Special Pay for Pharmacy Officers.--Section 302i of 
such title is amended--
            (1) in subsections (a) and (b), by striking ``special pay at 
        the rates specified in subsection (d)'' both places it appears 
        and inserting ``retention special pay under this section'';
            (2) in subsection (c), by striking ``Limitation.--'' and 
        inserting ``Limitation on Eligibility for Special Pay.--''; and
            (3) by striking subsection (d) and inserting the following 
        new subsection:

    ``(d) Limitation on Amount of Special Pay.--The amount of retention 
special pay paid to an officer under this section may not exceed $15,000 
for any 12-month period.''.
    (h) Financial Assistance for Nurse Officer Candidates.--Section 
2130a(a) of title 10, United States Code, is amended--
            (1) in paragraph (1), by striking ``$5,000'' in the first 
        sentence and inserting ``$10,000'' and by striking ``$2,500'' in 
        the second sentence and inserting ``$5,000''; and
            (2) in paragraph (2), by striking ``$500'' and inserting 
        ``$1,000''.

    (i) Application <<NOTE: 37 USC 301d note.>> of Increase.--In the 
case of an amendment made by this section to increase the maximum amount 
of a special pay or bonus that may be paid during any 12-month period, 
the amended limitation shall apply to 12-month periods beginning after 
September 30, 2002.

SEC. 616. ASSIGNMENT INCENTIVE PAY.

    (a) Authority.--(1) Chapter 5 of title 37, United States Code, is 
amended by inserting after section 307 the following new section:

``Sec. 307a. Special pay: assignment incentive pay

    ``(a) Authority.--The Secretary concerned may pay monthly incentive 
pay under this section to a member of a uniformed service who performs 
service, while entitled to basic pay, in an assignment designated by the 
Secretary concerned.
    ``(b) Written Agreement.--The period for which incentive pay will be 
provided under this section and the monthly rate of the incentive pay 
for a member shall be specified in a written agreement between the 
Secretary concerned and the member. Agreements entered into by the 
Secretary of a military department shall require the concurrence of the 
Secretary of Defense.
    ``(c) Maximum Rate.--The maximum monthly rate of incentive pay 
payable to a member under this section is $1,500.
    ``(d) Relationship to Other Pay and Allowances.--Incentive pay paid 
to a member under this section is in addition to any other pay and 
allowances to which the member is entitled.
    ``(e) Status Not Affected by Temporary Duty or Leave.--The service 
of a member in an assignment referred to in subsection (a) shall not be 
considered discontinued during any period that the member is not 
performing service in the assignment by reason of temporary duty 
performed by the member pursuant to orders or absence of the member for 
authorized leave.
    ``(f) Termination of Authority.--No agreement under this section may 
be entered into after December 31, 2005.''.

[[Page 116 STAT. 2570]]

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 307 the 
following new item:

``307a. Special pay: assignment incentive pay.''.

    (b) Annual <<NOTE: Deadlines. 37 USC 307a note.>> Report.--Not later 
than February 28, 2004, and February 28, 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 on 
the use of the authority provided under section 307a of title 37, United 
States Code, as added by subsection (a), including an assessment of the 
utility of that authority.

SEC. 617. INCREASE IN MAXIMUM RATES FOR PRIOR SERVICE ENLISTMENT BONUS.

    Section 308i(b)(1) of title 37, United States Code, is amended--
            (1) in subparagraph (A), by striking ``$5,000'' and 
        inserting ``$8,000'';
            (2) in subparagraph (B), by striking ``$2,500'' and 
        inserting ``$4,000''; and
            (3) in subparagraph (C), by striking ``$2,000'' and 
        inserting ``$3,500''.

SEC. 618. RETENTION INCENTIVES FOR HEALTH CARE PROFESSIONALS QUALIFIED 
            IN A CRITICAL MILITARY SKILL.

    (a) Exception to Limitation on Maximum Bonus Amount.--Subsection (d) 
of section 323 of title 37, United States Code, is amended--
            (1) by inserting ``(1)'' before ``A member''; and
            (2) by adding at the end the following new paragraph:

    ``(2) The limitation in paragraph (1) on the total bonus payments 
that a member may receive under this section does not apply with respect 
to an officer who is assigned duties as a health care professional.''.
    (b) Exception to Years of Service Limitation.--Subsection (e) of 
such section is amended--
            (1) by redesignating paragraphs (1) and (2) as subparagraphs 
        (A) and (B), respectively;
            (2) by inserting ``(1)'' before ``A retention''; and
            (3) by adding at the end the following new paragraph:

    ``(2) The limitations in paragraph (1) do not apply with respect to 
an officer who is assigned duties as a health care professional during 
the period of active duty for which the bonus is being offered.''.

            Subtitle C--Travel and Transportation Allowances

SEC. 621. EXTENSION OF LEAVE TRAVEL DEFERRAL PERIOD FOR MEMBERS 
            PERFORMING CONSECUTIVE OVERSEAS TOURS OF DUTY.

    (a) Authorized Deferral Period.--Section 411b of title 37, United 
States Code is amended by inserting after subsection (a) the following 
new subsection:
    ``(b) Authority to Defer Travel; Limitations.--(1) Under the 
regulations referred to in subsection (a), a member may defer

[[Page 116 STAT. 2571]]

the travel for which the member is paid travel and transportation 
allowances under this section until any time before the completion of 
the consecutive tour at the same duty station or the completion of the 
tour of duty at the new duty station under the order involved, as the 
case may be.
    ``(2) If a member is unable to undertake the travel before 
expiration of the deferral period under paragraph (1) because of duty in 
connection with a contingency operation, the member may defer the travel 
until not more than one year after the date on which the member's duty 
in connection with the contingency operation ends.''.
    (b) Conforming and Clerical Amendments.--Such section is further 
amended--
            (1) in subsection (a)--
                    (A) by striking ``(a)(1)'' and inserting ``(a) 
                Allowances Authorized.--''; and
                    (B) by striking paragraph (2); and
            (2) by striking ``(b) The allowances'' and inserting ``(c) 
        Limitation on Allowance Rate.--The allowances''.

    (c) Application <<NOTE: 37 USC 411b note.>> of Amendment.--
Subsection (b) of section 411b of title 37, United States Code, as added 
by subsection (a), shall apply with respect to members of the uniformed 
services in a deferred leave travel status under such section as of the 
date of the enactment of this Act or becomes entitled to travel and 
transportation allowances under such section on or after that date.

SEC. 622. TRANSPORTATION OF MOTOR VEHICLES FOR MEMBERS REPORTED MISSING.

    (a) Authority To Ship Two Motor Vehicles.--Subsection (a) of section 
554 of title 37, United States Code, is amended by striking ``one 
privately owned motor vehicle'' both places it appears and inserting 
``two privately owned motor vehicles''.
    (b) Payments for Late Delivery.--Subsection (i) of such section is 
amended by adding at the end the following new sentence: ``In a case in 
which two motor vehicles of a member (or the dependent or dependents of 
a member) are transported at the expense of the United States, no 
reimbursement is payable under this subsection unless both motor 
vehicles do not arrive at the authorized destination of the vehicles by 
the designated delivery date.''.
    (c) Applicability.--The <<NOTE: 37 USC 554 note.>> amendments made 
by subsection (a) shall apply with respect to members whose eligibility 
for benefits under section 554 of title 37, United States Code, 
commences on or after the date of the enactment of this Act.

              Subtitle D--Retired Pay and Survivor Benefits

SEC. 631. PERMANENT REDUCTION FROM EIGHT TO SIX IN NUMBER OF YEARS OF 
            RESERVE SERVICE REQUIRED FOR ELIGIBILITY FOR RETIRED PAY FOR 
            NON-REGULAR SERVICE.

    (a) Reduction in Requirement for Years of Reserve Component Service 
Before Retired Pay Eligibility.--Subsection (a)(3) of section 12731 of 
title 10, United States Code, is amended--
            (1) by striking ``eight years'' and inserting ``six years''; 
        and

[[Page 116 STAT. 2572]]

            (2) by inserting before the semicolon ``, except that in the 
        case of a person who completed the service requirements of 
        paragraph (2) before October 5, 1994, the number of years of 
        such qualifying service under this paragraph shall be eight''.

    (b) Conforming Amendment.--Subsection (f) of such section is 
repealed.
    (c) Effective <<NOTE: 10 USC 12731 note.>> Date.--The amendments 
made by subsection (a) shall take effect on October 1, 2002. No benefit 
shall accrue to any person for any period before that date by reason of 
the enactment of those amendments.

SEC. 632. INCREASED RETIRED PAY FOR ENLISTED RESERVES CREDITED WITH 
            EXTRAORDINARY HEROISM.

    (a) Authority.--Section 12739 of title 10, United States Code, is 
amended--
            (1) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively; and
            (2) by inserting after subsection (a) the following new 
        subsection (b):

    ``(b) If a person entitled to retired pay under this chapter has 
been credited by the Secretary concerned with extraordinary heroism in 
the line of duty and if the highest grade held satisfactorily by that 
person at any time in the armed forces is an enlisted grade, the 
person's retired pay shall be increased by 10 percent of the amount 
determined under subsection (a). The Secretary's determination as to 
extraordinary heroism is conclusive for all purposes.''.
    (b) Conforming Amendment.--Subsection (c) of such section, as 
redesignated by subsection (a)(1), is amended by striking ``amount 
computed under subsection (a)'' and inserting ``total amount of the 
monthly retired pay computed under subsections (a) and (b)''.
    (c) Effective <<NOTE: 10 USC 12739 note.>> Date.--The amendments 
made by subsections (a) and (b) shall take effect on October 1, 2002, 
and shall apply with respect to retired pay for months beginning on or 
after that date.

SEC. 633. ELIMINATION OF POSSIBLE INVERSION IN RETIRED PAY COST-OF-
            LIVING ADJUSTMENT FOR INITIAL COLA COMPUTATION.

    (a) Elimination of Possible COLA Inversion.--Section 1401a of title 
10, United States Code, is amended--
            (1) in subsections (c)(1), (d), and (e), by inserting ``but 
        subject to subsection (f)(2)'' after ``Notwithstanding 
        subsection (b)'';
            (2) in subsection (c)(2), by inserting ``(subject to 
        subsection (f)(2) as applied to other members whose retired pay 
        is computed on the current rates of basic pay in the most recent 
        adjustment under this section)'' after ``shall be increased''; 
        and
            (3) in subsection (f)--
                    (A) by designating the text after the subsection 
                heading as paragraph (1), indenting that text two ems, 
                and inserting ``Prevention of retired pay inversions.--
                '' before ``Notwithstanding''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(2) Prevention of cola inversions.--The percentage of the 
        first adjustment under this section in the retired pay of any 
        person, as determined under subsection (c)(1), (c)(2), (d),

[[Page 116 STAT. 2573]]

        or (e), may not exceed the percentage increase in retired pay 
        determined under subsection (b)(2) that is effective on the same 
        date as the effective date of such first adjustment.''.

    (b) Technical Amendments.--Such section is further amended--
            (1) in subsection (d), by inserting ``or on or after August 
        1, 1986, if the member or former member did not elect to receive 
        a bonus under section 322 of title 37'' after ``August 1, 
        1986,''; and
            (2) in subsection (e), by inserting ``and elected to receive 
        a bonus under section 322 of title 37'' after ``August 1, 
        1986,''.

SEC. 634. <<NOTE: 10 USC 1448 note.>> TECHNICAL REVISIONS TO SO-CALLED 
            ``FORGOTTEN WIDOWS'' ANNUITY PROGRAM.

    (a) Clarification of Eligibility.--Subsection (a)(1) of section 644 
of the National Defense Authorization Act for Fiscal Year 1998 (Public 
Law 105-85; 10 U.S.C. 1448 note) is amended--
            (1) in subparagraph (A), by inserting after ``(A)'' the 
        following: ``became entitled to retired or retainer pay before 
        September 21, 1972,''; and
            (2) in subparagraph (B), by striking ``was a member of a 
        reserve component of the Armed Forces'' and inserting ``died''.

    (b) Clarification of Interaction With Other Benefits.--(1) 
Subsection (a)(2) of such section is amended by striking ``and who'' and 
all that follows through ``note)''.
    (2) Subsection (b)(2) of such section is amended to read as follows:
    ``(2) The amount of an annuity to which a surviving spouse is 
entitled under this section for any period shall be reduced (but not 
below zero) by any amount paid to that surviving spouse for the same 
period under any of the following provisions of law:
            ``(A) Section 1311(a) of title 38, United States Code 
        (relating to dependency and indemnity compensation payable by 
        the Secretary of Veterans Affairs).
            ``(B) Chapter 73 of title 10, United States Code.
            ``(C) Section 4 of Public Law 92-425 (10 U.S.C. 1448 
        note).''.

    (c) Clarification of Definition of Surviving Spouse.--Subsection 
(d)(2) of such section is amended by striking ``the terms'' and all that 
follows through ``and (8)'' and inserting ``such term in paragraph 
(9)''.
    (d) Specification in Law of Current Benefit Amount.--Subsection (b) 
of such section is amended--
            (1) in paragraph (1), by striking ``$165'' and inserting 
        ``$185.58''; and
            (2) in paragraph (3)--
                    (A) by striking ``the date of the enactment of this 
                Act'' and inserting ``May 1, 2002,''; and
                    (B) by striking the last sentence.

    (e) Specification of Enactment Month.--Subsection (e) of such 
section is amended--
            (1) in paragraph (1), by striking ``the month in which this 
        Act is enacted'' and inserting ``November 1997''; and
            (2) in paragraph (2), by striking ``the first month that 
        begins after the month in which this Act is enacted'' and 
        inserting ``December 1997''.

[[Page 116 STAT. 2574]]

SEC. 635. EXPANSION OF AUTHORITY OF SECRETARY OF DEFENSE TO WAIVE TIME 
            LIMITATIONS ON CLAIMS AGAINST THE GOVERNMENT FOR MILITARY 
            PERSONNEL BENEFITS.

    (a) Authority for Waiver of Time Limitations.--Paragraph (1) of 
section 3702(e) of title 31, United States Code, is amended by striking 
``a claim'' and all that follows through ``title 10'' and inserting ``a 
claim referred to in subsection (a)(1)(A)''.
    (b) Technical Amendments.--(1) Such paragraph is further amended--
            (A) by striking ``Upon the request'' and all that follows 
        through ``the Secretary of Defense'' and inserting ``The 
        Secretary of Defense'';
            (B) by striking ``and, subject to paragraph (2), settle the 
        claim''; and
            (C) by adding at the end the following new sentence: ``In 
        the case of a claim by or with respect to a member of the 
        uniformed services who is not under the jurisdiction of the 
        Secretary of a military department, such a waiver may be made 
        only upon the request of the Secretary concerned (as defined in 
        section 101 of title 37).''.

    (2) Paragraph (2) of such section is amended--
            (A) by striking ``under paragraph (1)' and inserting ``under 
        subsection (a)(1)(A)''; and
            (B) by inserting before the period at the end the following: 
        ``, except that in the case of a claim for retired pay or 
        survivor benefits, if the obligation claimed would have been 
        paid from a trust fund if timely paid, the payment of the claim 
        shall be made from that trust fund''.

    (c) Effective <<NOTE: 31 USC 3702 note.>> Date.--The amendment made 
by subsection (a) shall apply with respect to claims against the United 
States presented to the Secretary of Defense under section 3702 of title 
31, United States Code, on or after the date of the enactment of this 
Act.

SEC. 636. SPECIAL COMPENSATION FOR CERTAIN COMBAT-RELATED DISABLED 
            UNIFORMED SERVICES RETIREES.

    (a) Authority.--(1) Chapter 71 of title 10, United States Code, is 
amended by inserting after section 1413 the following new section:

``Sec. 1413a. Special compensation for certain combat-related disabled 
                        uniformed services retirees

    ``(a) Authority.--The Secretary concerned shall pay to each eligible 
combat-related disabled uniformed services retiree who elects benefits 
under this section a monthly amount for the combat-related disability of 
the retiree determined under subsection (b).
    ``(b) Amount.--
            ``(1) Determination of monthly amount.--Subject to 
        paragraphs (2) and (3), the monthly amount to be paid an 
        eligible combat-related disabled uniformed services retiree for 
        a combat-related disability under subsection (a) is the monthly 
        amount of compensation to which the retiree would be entitled 
        solely for the combat-related disability consistent with chapter 
        11 of title 38.
            ``(2) Maximum amount.--The amount paid to an eligible 
        combat-related disabled uniformed services retiree for any month 
        under paragraph (1) may not exceed the amount of

[[Page 116 STAT. 2575]]

        the reduction in retired pay that is applicable to the retiree 
        for that month under sections 5304 and 5305 of title 38.
            ``(3) Special rules for chapter 61  disability retirees.--In 
        the case of an eligible combat-related disabled uniformed 
        services retiree who is retired under chapter 61 of this title, 
        the amount of the payment under paragraph (1) for any month 
        shall be reduced by the amount (if any) by which the amount of 
        the member's retired pay under chapter 61 of this title exceeds 
        the amount of retired pay to which the member would have been 
        entitled under any other provision of law based upon the 
        member's service in the uniformed services if the member had not 
        been retired under chapter 61 of this title.

    ``(c) Eligible Retirees.--For purposes of this section, an eligible 
combat-related disabled uniformed services retiree referred to in 
subsection (a) is a member of the uniformed services entitled to retired 
pay who--
            ``(1) has completed at least 20 years of service in the 
        uniformed services that are creditable for purposes of computing 
        the amount of retired pay to which the member is entitled; and
            ``(2) has a qualifying combat-related disability.

    ``(d) Procedures.--The Secretary of Defense shall prescribe 
procedures and criteria under which a disabled uniformed services 
retiree may apply to the Secretary of a military department to be 
considered to be an eligible combat-related disabled uniformed services 
retiree. Such procedures shall apply uniformly throughout the Department 
of Defense.
    ``(e) Qualifying Combat-Related Disability.--In this section, the 
term `qualifying combat-related disability' means either of the 
following:
            ``(1) A disability that--
                    ``(A) is attributable to an injury for which the 
                member was awarded the Purple Heart; and
                    ``(B) is rated as not less than 10 percent 
                disabling--
                          ``(i) by the Secretary concerned, as of the 
                      date on which the member is retired from the 
                      uniformed services, under criteria prescribed by 
                      the Secretary of Defense; or
                          ``(ii) by the Secretary of Veterans Affairs.
            ``(2) A service-connected disability that--
                    ``(A) was incurred (as determined under criteria 
                prescribed by the Secretary of Defense)--
                          ``(i) as a direct result of armed conflict;
                          ``(ii) while engaged in hazardous service;
                          ``(iii) in the performance of duty under 
                      conditions simulating war; or
                          ``(iv) through an instrumentality of war; and
                    ``(B) is rated as not less than 60 percent 
                disabling--
                          ``(i) by the Secretary concerned, as of the 
                      date on which the member is retired from the 
                      uniformed services, under criteria prescribed by 
                      the Secretary of Defense; or
                          ``(ii) by the Secretary of Veterans Affairs.

    ``(f) Construction with Special Compensation for Severely Disabled 
Uniformed Services Retirees.--

[[Page 116 STAT. 2576]]

            ``(1) Single source of compensation.--An individual who is 
        paid special compensation under this section may not receive 
        special compensation under section 1413 of this title.
            ``(2) Election of source.--An individual who is eligible for 
        special compensation under this section and special compensation 
        under section 1413 of this title shall elect which special 
        compensation to receive.
            ``(3) Regulations.--The Secretary of Defense shall prescribe 
        in regulations the manner and form of an election under this 
        subsection.

    ``(g) Status of Payments.--Payments under this section are not 
retired pay.
    ``(h) Source of Payments.--Payments under this section for any 
fiscal year shall be paid out of funds appropriated for pay and 
allowances payable by the Secretary concerned for that fiscal year.
    ``(i) Other Definitions.--In this section:
            ``(1) The term `service-connected' has the meaning given 
        such term in section 101 of title 38.
            ``(2) The term `retired pay' includes retainer pay, 
        emergency officers' retirement pay, and naval pension.''.

    (2) <<NOTE: 10 USC 1413a note.>> Section 1413a of title 10, United 
States Code, as added by paragraph (1), shall take effect not later than 
180 days after the date of the enactment of this Act.

    (3) The table of sections at the beginning of chapter 71 of such 
title is amended by inserting after the item relating to section 1413 
the following new item:

``1413a. Special compensation for certain combat-related disabled 
           uniformed services retirees.''.

    (b) Special Compensation for Certain Severely Disabled Uniformed 
Services Retirees.--Section 1413 of title 10, United States Code, is 
amended--
            (1) by redesignating subsections (e), (f) and (g) as 
        subsections (f), (g), and (h), respectively; and
            (2) by inserting after subsection (d) the following new 
        subsection (e):

    ``(e) Construction with Special Compensation for Combat-Disabled 
Uniformed Services Retirees.--(1) An individual who is paid special 
compensation under this section may not receive special compensation 
under section 1413a of this title.
    ``(2) An individual who is eligible for special compensation under 
this section and special compensation under section 1413a of this title 
shall elect which special compensation to receive.
    ``(3) <<NOTE: Regulations.>> The Secretary of Defense shall 
prescribe in regulations the manner and form of an election under this 
subsection.''.

                     Subtitle E--Montgomery GI Bill

SEC. 641. TIME LIMITATION FOR USE OF MONTGOMERY GI BILL ENTITLEMENT BY 
            MEMBERS OF THE SELECTED RESERVE.

    (a) Extension of Limitation Period.--Section 16133(a)(1) of title 
10, United States Code, is amended by striking ``10-year'' and inserting 
``14-year''.

[[Page 116 STAT. 2577]]

    (b) Effective <<NOTE: 10 USC 16133 note.>> Date and Applicability.--
The amendment made by subsection (a) shall take effect on October 1, 
2002, and shall apply with respect to periods of entitlement to 
educational assistance under chapter 1606 of title 10, United States 
Code, that begin on or after October 1, 1992.

SEC. 642. REPAYMENT REQUIREMENTS UNDER RESERVE COMPONENT MONTGOMERY GI 
            BILL ARISING FROM FAILURE TO PARTICIPATE SATISFACTORILY IN 
            MILITARY SERVICE TO BE CONSIDERED DEBTS OWED TO THE UNITED 
            STATES.

    Section 16135 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(c)(1) Subject to subsection (a)(2), an obligation to pay a refund 
to the United States under subsection (a)(1)(B) in an amount determined 
under subsection (b) is, for all purposes, a debt owed to the United 
States.
    ``(2) A discharge in bankruptcy under title 11 that is entered less 
than five years after the termination of an enlistment or other 
agreement under this section does not discharge the person signing such 
enlistment or other agreement from a debt arising under the enlistment 
or agreement, respectively, under this subsection.''.

SEC. 643. TECHNICAL ADJUSTMENTS TO AUTHORITY FOR CERTAIN MEMBERS TO 
            TRANSFER EDUCATIONAL ASSISTANCE UNDER MONTGOMERY GI BILL TO 
            DEPENDENTS.

    (a) Clarification of Rate of Educational Assistance for Dependents 
to Whom Entitlement is Transferred.--Section 3020(h) of title 38, United 
States Code, is amended--
            (1) in paragraph (2)--
                    (A) by striking ``paragraphs (4) and (5)'' and 
                inserting ``paragraphs (5) and (6)''; and
                    (B) by striking ``and at the same rate'';
            (2) by redesignating paragraphs (3) through (6) as 
        paragraphs (4) through (7), respectively; and
            (3) by inserting after paragraph (2) the following new 
        paragraph (3):

    ``(3)(A) Subject to subparagraph (B), the monthly rate of 
educational assistance payable to a dependent to whom entitlement is 
transferred under this section shall be the monthly amount payable under 
sections 3015 and 3022 of this title to the individual making the 
transfer.
    ``(B) The monthly rate of assistance payable to a dependent under 
subparagraph (A) shall be subject to the provisions of section 3032 of 
this title, except that the provisions of subsection (a)(1) of that 
section shall not apply even if the individual making the transfer to 
the dependent under this section is on active duty during all or any 
part of enrollment period of the dependent in which such entitlement is 
used.''.
    (b) Source of Funds from Increased Usage.--Section 3035(b) of such 
title is amended--
            (1) in paragraph (1), by striking ``paragraphs (2) and (3) 
        of this subsection'' and inserting ``paragraphs (2), (3), and 
        (4)''; and
            (2) by adding at the end the following new paragraph:

    ``(4) Payments attributable to the increased usage of benefits as a 
result of transfers of entitlement to basic educational assistance under 
section 3020 of this title shall be made from the Department

[[Page 116 STAT. 2578]]

of Defense Education Benefits Fund established under section 2006 of 
title 10 or from appropriations made to the Department of 
Transportation, as appropriate.''.
    (c) Effective <<NOTE: 38 USC 3020 note.>> Date.--(1) The amendments 
made by subsection (a) shall take effect as if included in the enactment 
of section 3020 of title 38, United States Code, by section 654(a)(1) of 
the National Defense Authorization Act for Fiscal Year 2002 (Public Law 
107-107; 115 Stat. 1153).

    (2) <<NOTE: 38 USC 3035 note.>> The amendments made by subsection 
(b) shall take effect as if made by section 654 of the National Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107-107; 115 Stat. 
1153).

                        Subtitle F--Other Matters

SEC. 651. PAYMENT OF INTEREST ON STUDENT LOANS.

    (a) Authority.--(1) Chapter 109 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 2174. Interest payment program: members on active duty

    ``(a) Authority.--(1) The Secretary concerned may pay in accordance 
with this section the interest and any special allowances that accrue on 
one or more student loans of an eligible member of the armed forces.
    ``(2) The Secretary of a military department may exercise the 
authority under paragraph (1) only if approved by the Secretary of 
Defense and subject to such requirements, conditions, and restrictions 
as the Secretary of Defense may prescribe.
    ``(b) Eligible Members.--A member of the armed forces is eligible 
for the benefit under subsection (a) while the member--
            ``(1) is serving on active duty in fulfillment of the 
        member's first enlistment in the armed forces or, in the case of 
        an officer, is serving on active duty and has not completed more 
        than three years of service on active duty;
            ``(2) is the debtor on one or more unpaid loans described in 
        subsection (c); and
            ``(3) is not in default on any such loan.

    ``(c) Student Loans.--The authority to make payments under 
subsection (a) may be exercised with respect to the following loans:
            ``(1) A loan made, insured, or guaranteed under part B of 
        title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et 
        seq.).
            ``(2) A loan made under part D of such title (20 U.S.C. 
        1087a et seq.).
            ``(3) A loan made under part E of such title (20 U.S.C. 
        1087aa et seq.).

    ``(d) Maximum Benefit.--The months for which interest and any 
special allowance may be paid on behalf of a member of the armed forces 
under this section are any 36 consecutive months during which the member 
is eligible under subsection (b).
    ``(e) Funds for Payments.--Appropriations available for the pay and 
allowances of military personnel shall be available for payments under 
this section.
    ``(f) Coordination.--(1) The Secretary of Defense and, with respect 
to the Coast Guard when it is not operating as a service in the Navy, 
the Secretary of the Department in which the Coast

[[Page 116 STAT. 2579]]

Guard is operating shall consult with the Secretary of Education 
regarding the administration of the authority under this section.
    ``(2) The Secretary concerned shall transfer to the Secretary of 
Education the funds necessary--
            ``(A) to pay interest and special allowances on student 
        loans under this section (in accordance with sections 428(o), 
        455(l), and 464(j) of the Higher Education Act of 1965 (20 
        U.S.C. 1078(o), 1087e(l), and 1087dd(j)); and
            ``(B) to reimburse the Secretary of Education for any 
        reasonable administrative costs incurred by the Secretary in 
        coordinating the program under this section with the 
        administration of the student loan programs under parts B, D, 
        and E of title IV of the Higher Education Act of 1965.

    ``(g) Special Allowance Defined.--In this section, the term `special 
allowance' means a special allowance that is payable under section 438 
of the Higher Education Act of 1965 (20 U.S.C. 1087-1).''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``2174. Interest payment program: members on active duty.''.

    (b) Federal Family Education Loans and Direct Loans.--(1) Subsection 
(c)(3) of section 428 of the Higher Education Act of 1965 (20 U.S.C. 
1078) is amended--
            (A) in clause (i) of subparagraph (A)--
                    (i) by striking ``or'' at the end of subclause (II);
                    (ii) by inserting ``or'' at the end of subclause 
                (III); and
                    (iii) by adding at the end the following new 
                subclause:
                                    ``(IV) is eligible for interest 
                                payments to be made on such loan for 
                                service in the Armed Forces under 
                                section 2174 of title 10, United States 
                                Code, and, pursuant to that eligibility, 
                                the interest is being paid on such loan 
                                under subsection (o);'';
            (B) in clause (ii)(II) of subparagraph (A), by inserting 
        ``or (IV)'' after ``clause (i)(II)''; and
            (C) by striking subparagraph (C) and inserting the 
        following:
                    ``(C) shall contain provisions that specify that--
                          ``(i) the form of forbearance granted by the 
                      lender pursuant to this paragraph, other than 
                      subparagraph (A)(i)(IV), shall be temporary 
                      cessation of payments, unless the borrower selects 
                      forbearance in the form of an extension of time 
                      for making payments, or smaller payments than were 
                      previously scheduled; and
                          ``(ii) the form of forbearance granted by the 
                      lender pursuant to subparagraph (A)(i)(IV) shall 
                      be the temporary cessation of all payments on the 
                      loan other than payments of interest on the loan 
                      that are made under subsection (o); and''.

    (2) Section 428 of such Act is further amended by adding at the end 
the following new subsection:
    ``(o) Armed Forces Student Loan Interest Payment Program.--
            ``(1) Authority.--Using funds received by transfer to the 
        Secretary under section 2174 of title 10, United States Code, 
        for the payment of interest and any special allowance on a

[[Page 116 STAT. 2580]]

        loan to a member of the Armed Forces that is made, insured, or 
        guaranteed under this part, the Secretary shall pay the interest 
        and special allowance on such loan as due for a period not in 
        excess of 36 consecutive months. The Secretary may not pay 
        interest or any special allowance on such a loan out of any 
        funds other than funds that have been so transferred.
            ``(2) Forbearance.--During the period in which the Secretary 
        is making payments on a loan under paragraph (1), the lender 
        shall grant the borrower forbearance in accordance with the 
        guaranty agreement under subsection (c)(3)(A)(i)(IV).
            ``(3) Special allowance defined.--For the purposes of this 
        subsection, the term `special allowance', means a special 
        allowance that is payable with respect to a loan under section 
        438.''.

    (c) Federal Direct Loans.--Section 455 of the Higher Education Act 
of 1965 (20 U.S.C. 1087e) is amended by adding at the end the following 
new subsection:
    ``(l) Armed Forces Student Loan Interest Payment Program.--
            ``(1) Authority.--Using funds received by transfer to the 
        Secretary under section 2174 of title 10, United States Code, 
        for the payment of interest on a loan made under this part to a 
        member of the Armed Forces, the Secretary shall pay the interest 
        on the loan as due for a period not in excess of 36 consecutive 
        months. The Secretary may not pay interest on such a loan out of 
        any funds other than funds that have been so transferred.
            ``(2) Forbearance.--During the period in which the Secretary 
        is making payments on a loan under paragraph (1), the Secretary 
        shall grant the borrower forbearance, in the form of a temporary 
        cessation of all payments on the loan other than the payments of 
        interest on the loan that are made under that paragraph.''.

    (d) Federal Perkins Loans.--Section 464 of the Higher Education Act 
of 1965 (20 U.S.C. 1087dd) is amended--
            (1) in subsection (e)--
                    (A) by striking ``or'' at the end of paragraph (1);
                    (B) by striking the period at the end of paragraph 
                (2) and inserting ``; or''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(3) the borrower is eligible for interest payments to be 
        made on such loan for service in the Armed Forces under section 
        2174 of title 10, United States Code, and, pursuant to that 
        eligibility, the interest on such loan is being paid under 
        subsection (j), except that the form of a forbearance under this 
        paragraph shall be a temporary cessation of all payments on the 
        loan other than payments of interest on the loan that are made 
        under subsection (j).''; and
            (2) by adding at the end the following new subsection:

    ``(j) Armed Forces Student Loan Interest Payment Program.--
            ``(1) Authority.--Using funds received by transfer to the 
        Secretary under section 2174 of title 10, United States Code, 
        for the payment of interest on a loan made under this part to a 
        member of the Armed Forces, the Secretary shall pay the interest 
        on the loan as due for a period not in excess of 36 consecutive 
        months. The Secretary may not pay interest

[[Page 116 STAT. 2581]]

        on such a loan out of any funds other than funds that have been 
        so transferred.
            ``(2) Forbearance.--During the period in which the Secretary 
        is making payments on a loan under paragraph (1), the 
        institution of higher education shall grant the borrower 
        forbearance in accordance with subsection (e)(3).''.

    (e) Effective <<NOTE: 10 USC 2174 note.>> Date.--The amendments made 
by this section shall apply with respect to interest, and any special 
allowance under section 438 of the Higher Education Act of 1965, that 
accrue for months beginning on or after October 1, 2003, on student 
loans described in subsection (c) of section 2174 of title 10, United 
States Code (as added by subsection (a)), that were made before, on, or 
after such date to members of the Armed Forces who are on active duty 
(as defined in section 101(d) of title 10, United States Code) on or 
after that date.

SEC. 652. ADDITIONAL AUTHORITY TO PROVIDE ASSISTANCE FOR FAMILIES OF 
            MEMBERS OF THE ARMED FORCES.

    (a) Authority.--(1) Subchapter I of chapter 88 of title 10, United 
States Code, is amended by adding at the end the following new section:

``Sec. 1788. Additional family assistance

    ``(a) Authority.--The Secretary of Defense may provide for the 
families of members of the armed forces serving on active duty, in 
addition to any other assistance available for such families, any 
assistance that the Secretary considers appropriate to ensure that the 
children of such members obtain needed child care, education, and other 
youth services.
    ``(b) Primary Purpose of Assistance.--The assistance authorized by 
this section should be directed primarily toward providing needed family 
support, including child care, education, and other youth services, for 
children of members of the Armed Forces who are deployed, assigned to 
duty, or ordered to active duty in connection with a contingency 
operation.''.
    (2) The table of sections at the beginning of such subchapter is 
amended by adding at the end the following new item:

``1788. Additional family assistance.''.

    (b) Effective <<NOTE: 10 USC 1788 note.>> Date.--Section 1788 of 
title 10, United States Code, as added by subsection (a), shall take 
effect on October 1, 2002.

SEC. 653. REPEAL OF AUTHORITY FOR ACCEPTANCE OF HONORARIA BY PERSONNEL 
            AT CERTAIN DEPARTMENT OF DEFENSE SCHOOLS.

    (a) Repeal of Exemption.--Section 542 of the National Defense 
Authorization Act for Fiscal Year 1993 (Public Law 102-484; 106 Stat. 
2413; 10 U.S.C. prec. 2161 note) <<NOTE: 10 USC note prec. 2161.>> is 
repealed.

    (b) Effective <<NOTE: 10 USC note prec. 2161.>> Date.--The repeal 
made by subsection (a) shall apply with respect to appearances made, 
speeches presented, and articles published on or after October 1, 2002.

SEC. 654. ADDITION OF DEFINITION OF CONTINENTAL UNITED STATES IN TITLE 
            37.

    (a) Definition.--Section 101(1) of title 37, United States Code, is 
amended--
            (1) by inserting ``(A)'' after ``(1)''; and

[[Page 116 STAT. 2582]]

            (2) by adding at the end the following new subparagraph:
            ``(B) The term `continental United States' means the 48 
        contiguous States and the District of Columbia.''.

    (b) Conforming Amendments.--Title 37, United States Code, is amended 
as follows:
            (1) Section 314(a)(3) is amended by striking ``the 48 
        contiguous States and the District of Columbia'' and inserting 
        ``the continental United States''.
            (2) Section 403b(i) is amended by striking paragraph (6).
            (3) Section 409 is amended by striking subsection (e).
            (4) Section 411b(a) is amended by striking ``the 48 
        contiguous States and the District of Columbia'' both places it 
        appears and inserting ``the continental United States''.
            (5) Section 411d is amended by striking subsection (d).
            (6) Section 430 is amended by striking subsection (f) and 
        inserting the following new subsection (f):

    ``(f) Definitions.--In this section:
            ``(1) The term `formal education' means the following:
                    ``(A) A secondary education.
                    ``(B) An undergraduate college education.
                    ``(C) A graduate education pursued on a full-time 
                basis at an institution of higher education.
                    ``(D) Vocational education pursued on a full-time 
                basis at a postsecondary vocational institution.
            ``(2) The term `institution of higher education' has the 
        meaning given that term in section 101 of the Higher Education 
        Act of 1965 (20 U.S.C. 1001).
            ``(3) The term `postsecondary vocational institution' has 
        the meaning given that term in section 102(c) of the Higher 
        Education Act of 1965 (20 U.S.C. 1002(c)).''.

                    TITLE VII--HEALTH CARE PROVISIONS

              Subtitle A--Health Care Program Improvements

Sec. 701. Elimination of requirement for TRICARE preauthorization of 
           inpatient mental health care for medicare-eligible 
           beneficiaries.
Sec. 702. Continued TRICARE eligibility of dependents residing at remote 
           locations after departure of sponsors for unaccompanied 
           assignments and eligibility of dependents of reserve 
           component members ordered to active duty.
Sec. 703. Eligibility of surviving dependents for TRICARE dental program 
           benefits after discontinuance of former enrollment.
Sec. 704. Department of Defense Medicare-Eligible Retiree Health Care 
           Fund.
Sec. 705. Approval of medicare providers as TRICARE providers.
Sec. 706. Technical corrections relating to transitional health care for 
           members separated from active duty.
Sec. 707. Extension of temporary authority to enter into personal 
           services contracts for the performance of health care 
           responsibilities at locations other than military medical 
           treatment facilities.
Sec. 708. Access to health care services for beneficiaries eligible for 
           TRICARE and Department of Veterans Affairs health care.
Sec. 709. Disclosure of information on Project 112 to Department of 
           Veterans Affairs.

                           Subtitle B--Reports

Sec. 711. Claims information.
Sec. 712. Comptroller General report on provision of care under the 
           TRICARE program.
Sec. 713. Repeal of report requirement.

[[Page 116 STAT. 2583]]

Subtitle C--Department of Defense-Department of Veterans Affairs Health 
                            Resources Sharing

Sec. 721. Revised coordination and sharing guidelines.
Sec. 722. Health care resources sharing and coordination project.
Sec. 723. Report on improved coordination and sharing of health care and 
           health care resources following domestic acts of terrorism or 
           domestic use of weapons of mass destruction.
Sec. 724. Interoperability of Department of Veterans Affairs and 
           Department of Defense pharmacy data systems.
Sec. 725. Joint pilot program for providing graduate medical education 
           and training for physicians.
Sec. 726. Repeal of certain limits on Department of Veterans Affairs 
           resources.

              Subtitle A--Health Care Program Improvements

SEC. 701. ELIMINATION OF REQUIREMENT FOR TRICARE PREAUTHORIZATION OF 
            INPATIENT MENTAL HEALTH CARE FOR MEDICARE-ELIGIBLE 
            BENEFICIARIES.

    (a) Elimination of Requirement.--Section 1079(i)(3) of title 10, 
United States Code, is amended--
            (1) by inserting ``(A)'' after ``(3)'';
            (2) by striking ``Except in the case of an emergency,'' and 
        inserting ``Except as provided in subparagraph (B),''; and
            (3) by adding at the end the following new subparagraphs:

    ``(B) Preadmission authorization for inpatient mental health 
services is not required under subparagraph (A) in the following cases:
            ``(i) In the case of an emergency.
            ``(ii) In a case in which any benefits are payable for such 
        services under part A of title XVIII of the Social Security Act 
        (42 U.S.C. 1395c et seq.), subject to subparagraph (C).

    ``(C) In a case of inpatient mental health services to which 
subparagraph (B)(ii) applies, the Secretary shall require advance 
authorization for a continuation of the provision of such services after 
benefits cease to be payable for such services under such part A.''.
    (b) Effective <<NOTE: 10 USC 1079 note.>> Date.--The amendments made 
by subsection (a) shall take effect October 1, 2003.

SEC. 702. CONTINUED TRICARE ELIGIBILITY OF DEPENDENTS RESIDING AT REMOTE 
            LOCATIONS AFTER DEPARTURE OF SPONSORS FOR UNACCOMPANIED 
            ASSIGNMENTS AND ELIGIBILITY OF DEPENDENTS OF RESERVE 
            COMPONENT MEMBERS ORDERED TO ACTIVE DUTY.

    Section 1079(p) of title 10, United States Code, is amended--
            (1) in paragraph (1), by striking ``dependents referred to 
        in subsection (a) of a member of the uniformed services referred 
        to in section 1074(c)(3) of this title who are residing with the 
        member'' and inserting ``dependents described in paragraph 
        (3)'';
            (2) by redesignating paragraph (3) as paragraph (4); and
            (3) by inserting after paragraph (2) the following new 
        paragraph (3):

    ``(3) This subsection applies with respect to a dependent referred 
to in subsection (a) who--

[[Page 116 STAT. 2584]]

            ``(A) is a dependent of a member of the uniformed services 
        referred to in section 1074(c)(3) of this title and is residing 
        with the member;
            ``(B) is a dependent of a member who, after having served in 
        a duty assignment described in section 1074(c)(3) of this title, 
        has relocated without the dependent pursuant to orders for a 
        permanent change of duty station from a remote location 
        described in subparagraph (B)(ii) of such section where the 
        member and the dependent resided together while the member 
        served in such assignment, if the orders do not authorize 
        dependents to accompany the member to the new duty station at 
        the expense of the United States and the dependent continues to 
        reside at the same remote location, or
            ``(C) is a dependent of a reserve component member ordered 
        to active duty for a period of more than 30 days and is residing 
        with the member, and the residence is located more than 50 
        miles, or approximately one hour of driving time, from the 
        nearest military medical treatment facility adequate to provide 
        the needed care.''.

SEC. 703. ELIGIBILITY OF SURVIVING DEPENDENTS FOR TRICARE DENTAL PROGRAM 
            BENEFITS AFTER DISCONTINUANCE OF FORMER ENROLLMENT.

    Section 1076a(k)(2) of title 10, United States Code, is amended by 
striking ``if the dependent is enrolled on the date of the death of the 
member in a dental benefits plan established under subsection (a)'' and 
inserting ``if, on the date of the death of the member, the dependent is 
enrolled in a dental benefits plan established under subsection (a) or 
is not enrolled in such a plan by reason of a discontinuance of a former 
enrollment under subsection (f)''.

SEC. 704. DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE RETIREE HEALTH CARE 
            FUND.

    (a) Source of Funds for Monthly Accrual Payments Into the Fund.--
Section 1116(c) of title 10, United States Code, is amended by striking 
``health care programs'' and inserting ``pay of members''.
    (b) Mandatory Participation of Other Uniformed Services.--Section 
1111(c) of such title is amended--
            (1) in the first sentence, by striking ``may enter into an 
        agreement with any other administering Secretary'' and inserting 
        ``shall enter into an agreement with each other administering 
        Secretary''; and
            (2) in the second sentence, by striking ``Any such'' and 
        inserting ``The''.

SEC. 705. APPROVAL OF MEDICARE PROVIDERS AS TRICARE PROVIDERS.

    (a) In General.--Section 1079 of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(q) Subject to subsection (a), a physician or other health care 
practitioner who is eligible to receive reimbursement for services 
provided under medicare (as defined in section 1086(d)(3)(C) of this 
title) shall be considered approved to provide medical care authorized 
under this section and section 1086 of this title unless the 
administering Secretaries have information indicating medicare,

[[Page 116 STAT. 2585]]

TRICARE, or other Federal health care program integrity violations by 
the physician or other health care practitioner.''.
    (b) Applicability.--The <<NOTE: 10 USC 1079 note.>> amendment made 
by subsection (a) shall apply with respect to any contract under the 
TRICARE program entered into on or after the date of the enactment of 
this Act.

SEC. 706. TECHNICAL CORRECTIONS RELATING TO TRANSITIONAL HEALTH CARE FOR 
            MEMBERS SEPARATED FROM ACTIVE DUTY.

    (a) Continued Applicability to Dependents.--Subsection (a)(1) of 
section 736 of the National Defense Authorization Act for Fiscal 
Year <<NOTE: 10 USC 1145.>> 2002 (Public Law 107-107; 115 Stat. 1172) is 
amended to read as follows:
            ``(1) in paragraph (1), by striking `paragraph (2), a 
        member' and all that follows through `of the member),' and 
        inserting `paragraph (3), a member of the armed forces who is 
        separated from active duty as described in paragraph (2) (and 
        the dependents of the member)';''.

    (b) Clarification Regarding the Coast Guard.--Subsection (b)(2) of 
such section is amended to read as follows:
            ``(2) in subsection (e)--
                    ``(A) by striking the first sentence; and
                    ``(B) by striking `the Coast Guard' in the second 
                sentence and inserting `the members of the Coast Guard 
                and their dependents'.''.

    (c) Effective <<NOTE: 10 USC 1145 note.>> Date.--The amendments made 
by this section shall take effect as of December 28, 2001, and as if 
included in the National Defense Authorization Act for Fiscal Year 2002 
as enacted.

SEC. 707. EXTENSION OF TEMPORARY AUTHORITY TO ENTER INTO PERSONAL 
            SERVICES CONTRACTS FOR THE PERFORMANCE OF HEALTH CARE 
            RESPONSIBILITIES AT LOCATIONS OTHER THAN MILITARY MEDICAL 
            TREATMENT FACILITIES.

    Section 1091(a)(2) of title 10, United States Code, is amended by 
striking ``December 31, 2002'' and inserting ``December 31, 2003''.

SEC. 708. <<NOTE: 10 USC 1071 note.>> ACCESS TO HEALTH CARE SERVICES FOR 
            BENEFICIARIES ELIGIBLE FOR TRICARE AND DEPARTMENT OF 
            VETERANS AFFAIRS HEALTH CARE.

    (a) Requirement <<NOTE: Regulations.>> To Establish Process.--(1) 
The Secretary of Defense shall prescribe in regulations a process for 
resolving issues relating to patient safety and continuity of care for 
covered beneficiaries who are concurrently entitled to health care under 
the TRICARE program and eligible for health care services provided by 
the Department of Veterans Affairs. The Secretary shall--
            (A) ensure that the process provides for coordination of, 
        and access to, health care from the two sources in a manner that 
        prevents diminution of access to health care from either source; 
        and
            (B) in consultation with the Secretary of Veterans Affairs, 
        prescribe a clear definition of an ``episode of care'' for use 
        in the resolution of patient safety and continuity of care 
        issues under such process.

    (2) <<NOTE: Deadline. Reports.>> Not later than May 1, 2003, the 
Secretary shall submit to the Committees on Armed Services of the Senate 
and of the 


[[Page 116 STAT. 2586]]

House of Representatives a report describing the process prescribed 
under paragraph (1).
    (3) While prescribing the process under paragraph (1) and upon 
completion of the report under paragraph (2), the Secretary shall 
provide to the Comptroller General information that would be relevant in 
carrying out the study required by subsection (b).
    (b) Comptroller General Study and Report.--(1) The Comptroller 
General shall conduct a study of the health care issues of covered 
beneficiaries described in subsection (a). The study shall include the 
following:
            (A) An analysis of whether covered beneficiaries who seek 
        services through the Department of Veterans Affairs are 
        receiving needed health care services in a timely manner from 
        the Department of Veterans Affairs, as compared to the 
        timeliness of the care available to covered beneficiaries under 
        TRICARE Prime (as set forth in access to care standards under 
        TRICARE program policy that are applicable to the care being 
        sought).
            (B) An evaluation of the quality of care for covered 
        beneficiaries who do not receive needed services from the 
        Department of Veterans Affairs within a time period that is 
        comparable to the time period provided for under such access to 
        care standards and who then must seek alternative care under the 
        TRICARE program.
            (C) Recommendations to improve access to, and timeliness and 
        quality of, care for covered beneficiaries described in 
        subsection (a).
            (D) An evaluation of the feasibility and advisability of 
        making access to care standards applicable jointly under the 
        TRICARE program and the Department of Veterans Affairs health 
        care system.
            (E) A review of the process prescribed by the Secretary of 
        Defense under subsection (a) to determine whether the process 
        ensures the adequacy and quality of the health care services 
        provided to covered beneficiaries under the TRICARE program and 
        through the Department of Veterans Affairs, together with 
        timeliness of access to such services and patient safety.

    (2) <<NOTE: Deadline.>> Not later than 60 days after the 
congressional committees specified in subsection (a)(2) receive the 
report required under that subsection, the Comptroller General shall 
submit to those committees a report on the study conducted under this 
subsection.

    (c) Definitions.--In this section:
            (1) The term ``covered beneficiary'' has the meaning 
        provided by section 1072(5) of title 10, United States Code.
            (2) The term ``TRICARE program'' has the meaning provided by 
        section 1072(7) of such title.
            (3) The term ``TRICARE Prime'' has the meaning provided by 
        section 1097a(f) of such title.

SEC. 709. <<NOTE: 10 USC 1074.>> DISCLOSURE OF INFORMATION ON PROJECT 
            112 TO DEPARTMENT OF VETERANS AFFAIRS.

    (a) Plan <<NOTE: Deadline.>> for Disclosure of Information.--Not 
later than 90 days after the date of the enactment of this Act, the 
Secretary of Defense shall submit to Congress and the Secretary of 
Veterans Affairs a comprehensive plan for the review, declassification, 
and submittal to the Department of Veterans Affairs of all records 


[[Page 116 STAT. 2587]]

and information of the Department of Defense on Project 112 that are 
relevant to the provision of benefits by the Secretary of Veterans 
Affairs to members of the Armed Forces who participated in that project.
    (b) Plan Requirements.--(1) The records and information covered by 
the plan under subsection (a) shall be the records and information 
necessary to permit the identification of members of the Armed Forces 
who were or may have been exposed to chemical or biological agents as a 
result of Project 112.
    (2) The plan shall provide for completion of all activities 
contemplated by the plan not later than one year after the date of the 
enactment of this Act.
    (c) Identification of Other Projects or Tests.--The Secretary of 
Defense also shall work with veterans and veterans service organizations 
to identify other projects or tests conducted by the Department of 
Defense that may have exposed members of the Armed Forces to chemical or 
biological agents.
    (d) GAO <<NOTE: Deadline.>> Reports on Plan and Implementation.--(1) 
Not later than 30 days after submission of the plan under subsection 
(a), the Comptroller General shall submit to Congress a report reviewing 
the plan. The report shall include an examination of whether adequate 
resources have been committed, the timeliness of the information to be 
released to the Department of Veterans Affairs, and the adequacy of the 
procedures to notify affected veterans of potential exposure.

    (2) <<NOTE: Deadline.>> Not later than six months after 
implementation of the plan begins, the Comptroller General shall submit 
to Congress a report evaluating the progress in the implementation of 
the plan.

    (e) DOD <<NOTE: Deadline.>> Reports on Implementation.--(1) Not 
later than six months after the date of the enactment of this Act, and 
upon completion of all activities contemplated by the plan under 
subsection (a), the Secretary of Defense shall submit to Congress and 
the Secretary of Veterans Affairs a report on progress in the 
implementation of the plan.

    (2) Each report under paragraph (1) shall include, for the period 
covered by such report--
            (A) the number of records reviewed;
            (B) each test, if any, under Project 112 identified during 
        such review;
            (C) for each test so identified--
                    (i) the test name;
                    (ii) the test objective;
                    (iii) the chemical or biological agent or agents 
                involved; and
                    (iv) the number of members of the Armed Forces, and 
                civilian personnel, potentially effected by such test; 
                and
            (D) the extent of submittal of records and information to 
        the Secretary of Veterans Affairs under this section.

    (f) Project 112.--For purposes of this section, Project 112 refers 
to the chemical and biological weapons vulnerability-testing program of 
the Department of Defense conducted by the Deseret Test Center from 1963 
to 1969. The project included the Shipboard Hazard and Defense (SHAD) 
project of the Navy.

[[Page 116 STAT. 2588]]

                           Subtitle B--Reports

SEC. 711. CLAIMS INFORMATION.

    (a) Correspondence to Medicare Claims Information Requirements.--
Section 1095c of title 10, United States Code, is amended by adding at 
the end the following new subsection:
    ``(d) Correspondence to Medicare Claims Information Requirements.--
The Secretary of Defense, in consultation with the other administering 
Secretaries, shall limit the information required in support of claims 
for payment for health care items and services provided under the 
TRICARE program to that information that is identical to the information 
that would be required for claims for reimbursement for those items and 
services under title XVIII of the Social Security Act (42 U.S.C. 1395 et 
seq.) except for that information, if any, that is uniquely required by 
the TRICARE program. 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 any information that is 
excepted under this provision, and the justification for that 
exception.''.
    (b) Applicability.--The <<NOTE: 10 USC 1095c note.>> Secretary of 
Defense, in consultation with the other administering Secretaries 
referred to in section 1072(3) of title 10, United States Code, shall 
apply the limitations required under subsection (d) of section 1095c of 
such title (as added by subsection (a)) with respect to contracts 
entered into under the TRICARE program on or after October 1, 2002.

    (c) Comptroller General Report on TRICARE Claims Processing.--Not 
later <<NOTE: Deadline.>> than March 31, 2003, the Comptroller General 
shall submit to Congress an evaluation of the continuing impediments to 
cost effective claims processing under the TRICARE program. The 
evaluation shall include a discussion of the following:
            (1) The extent of progress implementing improvements in 
        claims processing, particularly regarding the application of 
        best industry practices.
            (2) The extent of progress in simplifying claims processing 
        procedures, including the elimination of, or reduction in, the 
        complexity of the Health Care Service Record requirements.
            (3) The cost effectiveness of the data collection and fraud 
        prevention capabilities of existing claims processing practices.
            (4) Recommendations for improving the claims processing 
        system that will reduce processing and administration costs, 
        create greater competition, and improve fraud-prevention 
        activities.

SEC. 712. COMPTROLLER GENERAL REPORT ON PROVISION OF CARE UNDER THE 
            TRICARE PROGRAM.

    Not <<NOTE: Deadline.>> later than March 31, 2003, the Comptroller 
General shall submit to Congress an evaluation of the nature of, reasons 
for, extent of, and trends regarding network provider instability under 
the TRICARE program, and the effectiveness of efforts by the Department 
of Defense and managed care support contractors to measure and mitigate 
such instability. The evaluation shall include a discussion of the 
following:
            (1) The adequacy of measurement tools of TRICARE network 
        instability and their use by the Department of Defense

[[Page 116 STAT. 2589]]

        and managed care support contractors to assess network adequacy 
        and stability.
            (2) Recommendations for improvements needed in measurement 
        tools or their application.
            (3) The relationship of reimbursement rates and 
        administration requirements (including preauthorization 
        requirements) to TRICARE network instability.
            (4) The extent of problems under the TRICARE program and 
        likely future trends with and without intervention using 
        existing authority.
            (5) Use of existing authority by the Department of Defense 
        and TRICARE managed care support contractors to apply higher 
        reimbursement rates in specific geographic areas.
            (6) Recommendations for specific fiscally prudent measures 
        that could mitigate negative trends or improve provider and 
        network stability.

SEC. 713. <<NOTE: 42 USC 1395ggg.>> REPEAL OF REPORT REQUIREMENT.

    Notwithstanding subsection (f)(2) of section 712 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-179), the 
amendment made by subsection (e) of such section shall not take effect 
and the paragraph amended by such subsection is repealed.

Subtitle C--Department of Defense-Department of Veterans Affairs Health 
                            Resources Sharing

SEC. 721. REVISED COORDINATION AND SHARING GUIDELINES.

    (a) In General.--(1) Section 8111 of title 38, United States Code, 
is amended to read as follows:

``Sec. 8111. Sharing of Department of Veterans Affairs and Department of 
                        Defense health care resources

    ``(a) Required Coordination and Sharing of Health Care Resources.--
The Secretary of Veterans Affairs and the Secretary of Defense shall 
enter into agreements and contracts for the mutually beneficial 
coordination, use, or exchange of use of the health care resources of 
the Department of Veterans Affairs and the Department of Defense with 
the goal of improving the access to, and quality and cost effectiveness 
of, the health care provided by the Veterans Health Administration and 
the Military Health System to the beneficiaries of both Departments.
    ``(b) Joint Requirements for Secretaries of Veterans Affairs and 
Defense.--To facilitate the mutually beneficial coordination, use, or 
exchange of use of the health care resources of the two Departments, the 
two Secretaries shall carry out the following functions:
            ``(1) Develop and publish a joint strategic vision statement 
        and a joint strategic plan to shape, focus, and prioritize the 
        coordination and sharing efforts among appropriate elements

[[Page 116 STAT. 2590]]

        of the two Departments and incorporate the goals and 
        requirements of the joint sharing plan into the strategic and 
        performance plan of each Department under the Government 
        Performance and Results Act.
            ``(2) Jointly fund the interagency committee provided for 
        under subsection (c).
            ``(3) Continue to facilitate and improve sharing between 
        individual Department of Veterans Affairs and Department of 
        Defense health care facilities, but giving priority of effort to 
        initiatives (A) that improve sharing and coordination of health 
        resources at the intraregional and nationwide levels, and (B) 
        that improve the ability of both Departments to provide 
        coordinated health care.
            ``(4) Establish a joint incentive program under subsection 
        (d).

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

    ``(2)(A) During odd-numbered fiscal years, the Deputy Secretary of 
Veterans Affairs shall chair the Committee. During even-numbered fiscal 
years, the Under Secretary of Defense shall chair the Committee.
    ``(B) The Deputy Secretary and the Under Secretary shall determine 
the size and structure of the Committee, as well as the administrative 
and procedural guidelines for the operation of the Committee. The two 
Departments shall share equally the Committee's cost of personnel and 
administrative support and services. Support for such purposes shall be 
provided at a level sufficient for the efficient operation of the 
Committee, including a permanent staff and, as required, other temporary 
working groups of appropriate departmental staff and outside experts.
    ``(3) The Committee shall recommend to the Secretaries strategic 
direction for the joint coordination and sharing efforts between and 
within the two Departments under this section and shall oversee 
implementation of those efforts.
    ``(4) <<NOTE: Reports.>> The Committee shall submit to the two 
Secretaries and to Congress an annual report containing such 
recommendations as the Committee considers appropriate.

    ``(5) In order to enable the Committee to make recommendations in 
its annual report under paragraph (4), the Committee shall do the 
following:
            ``(A) Review existing policies, procedures, and practices 
        relating to the coordination and sharing of health care 
        resources between the two Departments.
            ``(B) Identify changes in policies, procedures, and 
        practices that, in the judgment of the Committee, would promote 
        mutually beneficial coordination, use, or exchange of use of the 
        health care resources of the two Departments, with the goal

[[Page 116 STAT. 2591]]

        of improving the access to, and quality and cost effectiveness 
        of, the health care provided by the Veterans Health 
        Administration and the Military Health System to the 
        beneficiaries of both Departments.
            ``(C) Identify and assess further opportunities for the 
        coordination and sharing of health care resources between the 
        Departments that, in the judgment of the Committee, would not 
        adversely affect the range of services, the quality of care, or 
        the established priorities for care provided by either 
        Department.
            ``(D) Review the plans of both Departments for the 
        acquisition of additional health care resources, especially new 
        facilities and major equipment and technology, in order to 
        assess the potential effect of such plans on further 
        opportunities for the coordination and sharing of health care 
        resources.
            ``(E) Review the implementation of activities designed to 
        promote the coordination and sharing of health care resources 
        between the Departments.

    ``(6) The Committee chairman, under procedures jointly developed by 
the two Secretaries, may require the Inspector General of either or both 
Departments to assist in activities under paragraph (5)(E).
    ``(d) Joint Incentives Program.--(1) Pursuant to subsection (b)(4), 
the two Secretaries shall carry out a program to identify, provide 
incentives to, implement, fund, and evaluate creative coordination and 
sharing initiatives at the facility, intraregional, and nationwide 
levels. The program shall be administered by the Committee established 
in subsection (c), under procedures jointly prescribed by the two 
Secretaries.
    ``(2) <<NOTE: Effective date.>> To facilitate the incentive program, 
effective October 1, 2003, there is established in the Treasury a fund 
to be known as the `DOD-VA Health Care Sharing Incentive Fund'. Each 
Secretary shall annually contribute to the fund a minimum of $15,000,000 
from the funds appropriated to that Secretary's Department. Such funds 
shall remain available until expended.

    ``(3)(A) For each fiscal year during which the program under this 
subsection is in effect, the Comptroller General shall conduct a review 
of the implementation and effectiveness of the incentives program under 
this subsection. <<NOTE: Reports.>> Upon completion of each such annual 
review, the Comptroller General shall submit to the Committees on Armed 
Services and Veterans' Affairs of the Senate and House of 
Representatives a report on the results of that review. Each such report 
shall be submitted not later than <<NOTE: Deadline.>> February 28 of the 
year following the fiscal year covered <<NOTE: Deadline. Reports.>> by 
the report. In addition, the Comptroller General shall conduct such a 
review during the first five months of fiscal year 2004 and, not later 
than February 28, 2004, shall submit to those committees a report on the 
implementation and effectiveness of the incentives program under this 
subsection to that date.

    ``(B) Each report under this paragraph shall describe activities 
carried out under the program under this subsection during the preceding 
fiscal year (or, in the case of the first such report, to the date of 
the submission of the report). Each report shall include at least the 
following:
            ``(i) An analysis of the initiatives funded by the 
        Committee, and the funds so expended by such initiatives, from 
        the DOD-VA Health Care Sharing Incentive Fund, including the 
        purposes

[[Page 116 STAT. 2592]]

        and effects of those initiatives on improving access to care by 
        beneficiaries, improvements in the quality of care received by 
        those beneficiaries, and efficiencies gained in delivering 
        services to those beneficiaries.
            ``(ii) Other matters of interest, including recommendations 
        from the Comptroller General for legislative improvements to the 
        program.

    ``(4) <<NOTE: Termination date.>> The program under this subsection 
shall terminate on September 30, 2007.

    ``(e) Guidelines and Policies for Implementation of Coordination and 
Sharing Recommendations, Contracts, and Agreements.--(1) To implement 
the recommendations made by the Committee under subsection (c)(2), as 
well as to carry out other health care contracts and agreements for 
coordination and sharing initiatives as they consider appropriate, the 
two Secretaries shall jointly issue guidelines and policy directives. 
Such guidelines and policies shall provide for coordination and sharing 
that--
            ``(A) is consistent with the health care responsibilities of 
        the Department of Veterans Affairs under this title and with the 
        health care responsibilities of the Department of Defense under 
        chapter 55 of title 10;
            ``(B) will not adversely affect the range of services, the 
        quality of care, or the established priorities for care provided 
        by either Department; and
            ``(C) will not reduce capacities in certain specialized 
        programs of the Department of Veterans Affairs that the 
        Secretary is required to maintain in accordance with section 
        1706(b) of this title.

    ``(2) To facilitate the sharing and coordination of health care 
services between the two Departments, the two Secretaries shall jointly 
develop and implement guidelines for a standardized, uniform payment and 
reimbursement schedule for those services. Such schedule shall be 
implemented no later than October 1, 2003, and shall be revised 
periodically as necessary. The two Secretaries, following implementation 
of the schedule, may on a case-by-case basis waive elements of the 
schedule if they jointly agree that such a waiver is in the best 
interests of both Departments.
    ``(3)(A) The guidelines established under paragraph (1) shall 
authorize the heads of individual Department of Defense and Department 
of Veterans Affairs medical facilities and service regions to enter into 
health care resources coordination and sharing agreements.
    ``(B) Under any such agreement, an individual who is a primary 
beneficiary of one Department may be provided health care, as provided 
in the agreement, at a facility or in the service region of the other 
Department that is a party to the sharing agreement.
    ``(C) Each such agreement shall identify the health care resources 
to be shared.
    ``(D) Each such agreement shall provide, and shall specify 
procedures designed to ensure, that the availability of direct health 
care to individuals who are not primary beneficiaries of the providing 
Department is (i) on a referral basis from the facility or service 
region of the other Department, and (ii) does not (as determined by the 
head of the providing facility or region) adversely affect the range of 
services, the quality of care, or the established priorities for care 
provided to the primary beneficiaries of the providing Department.

[[Page 116 STAT. 2593]]

    ``(E) Each such agreement shall provide that a providing Department 
or service region shall be reimbursed for the cost of the health care 
resources provided under the agreement and that the rate of such 
reimbursement shall be as determined in accordance with paragraph (2).
    ``(F) Each proposal for an agreement under this paragraph shall be 
effective (i) on the 46th day after the receipt of such proposal by the 
Committee, unless earlier disapproved, or (ii) if earlier approved by 
the Committee, on the date of such approval.
    ``(G) Any funds received through such a uniform payment and 
reimbursement schedule shall be credited to funds that have been 
allotted to the facility of either Department that provided the care or 
services, or is due the funds from, any such agreement.
    ``(f) Annual Joint Report.--(1) At the time the President's budget 
is transmitted to Congress in any year pursuant to section 1105 of title 
31, the two Secretaries shall submit to Congress a joint report on 
health care coordination and sharing activities under this section 
during the fiscal year that ended during the previous calendar year.
    ``(2) Each report under this section shall include the following:
            ``(A) The guidelines prescribed under subsection (e) (and 
        any revision of such guidelines).
            ``(B) The assessment of further opportunities identified 
        under subparagraph (C) of subsection (c)(5) for the sharing of 
        health-care resources between the two Departments.
            ``(C) Any recommendation made under subsection (c)(4) during 
        such fiscal year.
            ``(D) A review of the sharing agreements entered into under 
        subsection (e) and a summary of activities under such agreements 
        during such fiscal year and a description of the results of such 
        agreements in improving access to, and the quality and cost 
        effectiveness of, the health care provided by the Veterans 
        Health Administration and the Military Health System to the 
        beneficiaries of both Departments.
            ``(E) A summary of other planning and activities involving 
        either Department in connection with promoting the coordination 
        and sharing of Federal health-care resources during the 
        preceding fiscal year.
            ``(F) Such recommendations for legislation as the two 
        Secretaries consider appropriate to facilitate the sharing of 
        health-care resources between the two Departments.

    ``(3) In addition to the matters specified in paragraph (2), the two 
Secretaries shall include in the annual report under this subsection an 
overall status report of the progress of health resources sharing 
between the two Departments as a consequence of subtitle C of title VII 
of the Bob Stump National Defense Authorization Act for Fiscal Year 2003 
and of other sharing initiatives taken during the period covered by the 
report. Such status report shall indicate the status of such sharing and 
shall include appropriate data as well as analyses of that data. The 
annual report shall include the following:
            ``(A) Enumerations and explanations of major policy 
        decisions reached by the two Secretaries during the period 
        covered by the report period with respect to sharing between the 
        two Departments.
            ``(B) A description of progress made in new ventures or 
        particular areas of sharing and coordination that would be

[[Page 116 STAT. 2594]]

        of policy interest to Congress consistent with the intent of 
        such subtitle.
            ``(C) A description of enhancements of access to care of 
        beneficiaries of both Departments that came about as a result of 
        new sharing approaches brought about by such subtitle.
            ``(D) A description of proposals for which funds are 
        provided through the joint incentives program under subsection 
        (d), together with a description of their results or status at 
        the time of the report, including access improvements, savings, 
        and quality-of-care enhancements they brought about, and a 
        description of any additional use of funds made available under 
        subsection (d).

    ``(4) In addition to the matters specified in paragraphs (2) and 
(3), the two Secretaries shall include in the annual report under this 
subsection for each year through 2008 the following:
            ``(A) A description of the measures taken, or planned to be 
        taken, to implement the health resources sharing project under 
        section 722 of the Bob Stump National Defense Authorization Act 
        for Fiscal Year 2003 and any cost savings anticipated, or cost 
        sharing achieved, at facilities participating in the project, 
        including information on improvements in access to care, 
        quality, and timeliness, as well as impediments encountered and 
        legislative recommendations to ameliorate such impediments.
            ``(B) A description of the use of the waiver authority 
        provided by section 722(d)(1) of the Bob Stump National Defense 
        Authorization Act for Fiscal Year 2003, including--
                    ``(i) a statement of the numbers and types of 
                requests for waivers under that section of 
                administrative policies that have been made during the 
                period covered by the report and, for each such request, 
                an explanation of the content of each request, the 
                intended purpose or result of the requested waiver, and 
                the disposition of each request; and
                    ``(ii) descriptions of any new administrative 
                policies that enhance the success of the project.

    ``(5) In addition to the matters specified in paragraphs (2), (3), 
and (4), the two Secretaries shall include in the annual report under 
this subsection for each year through 2009 a report on the pilot program 
for graduate medical education under section 725 of the Bob Stump 
National Defense Authorization Act for Fiscal Year 2003, including 
activities under the program during the preceding year and each 
Secretary's assessment of the efficacy of providing education and 
training under that program.
    ``(g) Definitions.--For the purposes of this section:
            ``(1) The term `beneficiary' means a person who is a primary 
        beneficiary of the Department of Veterans Affairs or of the 
        Department of Defense.
            ``(2) The term `direct health care' means health care 
        provided to a beneficiary in a medical facility operated by the 
        Department of Veterans Affairs or the Department of Defense.
            ``(3) The term `head of a medical facility' (A) with respect 
        to a medical facility of the Department of Veterans Affairs, 
        means the director of the facility, and (B) with respect to a 
        medical facility of the Department of Defense, means the medical 
        or dental officer in charge or the contract surgeon in charge.

[[Page 116 STAT. 2595]]

            ``(4) The term `health-care resource' includes hospital 
        care, medical services, and rehabilitative services, as those 
        terms are defined in paragraphs (5), (6), and (8), respectively, 
        of section 1701 of this title, services under sections 1782 and 
        1783 of this title, any other health-care service, and any 
        health-care support or administrative resource.
            ``(5) The term `primary beneficiary' (A) with respect to the 
        Department means a person who is eligible under this title 
        (other than under section 1782, 1783, or 1784 or subsection (d) 
        of this section) or any other provision of law for care or 
        services in Department medical facilities, and (B) with respect 
        to the Department of Defense, means a member or former member of 
        the Armed Forces who is eligible for care under section 1074 of 
        title 10.
            ``(6) The term `providing Department' means the Department 
        of Veterans Affairs, in the case of care or services furnished 
        by a facility of the Department of Veterans Affairs, and the 
        Department of Defense, in the case of care or services furnished 
        by a facility of the Department of Defense.
            ``(7) The term `service region' means a geographic service 
        area of the Veterans Health Administration, in the case of the 
        Department of Veterans Affairs, and a service region, in the 
        case of the Department of Defense.''.

    (2) The item relating to that section in the table of sections at 
the beginning of chapter 81 of title 38, United States Code, is amended 
to read as follows:

``8111. Sharing of Department of Veterans Affairs and Department of 
           Defense health care resources.''.

    (b) Conforming Amendment.--Section 1104(a) of title 10, United 
States Code, is amended by striking ``may'' and inserting ``shall''.
    (c) Effective <<NOTE: 38 USC 8111 note.>> Date.--The amendments made 
by this section shall take effect on October 1, 2003.

SEC. 722. <<NOTE: 38 USC 8111 note.>> HEALTH CARE RESOURCES SHARING AND 
            COORDINATION PROJECT.

    (a) Establishment.--(1) The Secretary of Veterans Affairs and the 
Secretary of Defense shall conduct a health care resources sharing 
project to serve as a test for evaluating the feasibility, and the 
advantages and disadvantages, of measures and programs designed to 
improve the sharing and coordination of health care and health care 
resources between the Department of Veterans Affairs and the Department 
of Defense. The project shall be carried out, as a minimum, at the sites 
identified under subsection (b).
    (2) Reimbursement between the two Departments with respect to the 
project under this section shall be made in accordance with the 
provisions of section 8111(e)(2) of title 38, United States Code, as 
amended by section 721(a).
    (b) Site <<NOTE: Deadline.>> Identification.--(1) Not later than 90 
days after the date of the enactment of this Act, the Secretaries shall 
jointly identify not less than three sites for the conduct of the 
project under this section.

    (2) For purposes of this section, a site at which the resource 
sharing project shall be carried out is an area in the United States in 
which--

[[Page 116 STAT. 2596]]

            (A) one or more military treatment facilities and one or 
        more VA health care facilities are situated in relative 
        proximity to each other, including facilities engaged in joint 
        ventures as of the date of the enactment of this Act; and
            (B) for which an agreement to coordinate care and programs 
        for patients at those facilities could be implemented not later 
        than October 1, 2004.

    (c) Conduct of Project.--(1) At sites at which the project is 
conducted, the Secretaries shall provide a test of a coordinated 
management system for the military treatment facilities and VA health 
care facilities participating in the project. Such a coordinated 
management system for a site shall include at least one of the elements 
specified in paragraph (2), and each of the elements specified in that 
paragraph must be included in the coordinated management system for at 
least one of the participating sites.
    (2) Elements of a coordinated management system referred to in 
paragraph (1) are the following:
            (A) A budget and financial management system for those 
        facilities that--
                    (i) provides managers with information about the 
                costs of providing health care by both Departments at 
                the site; and
                    (ii) allows managers to assess the advantages and 
                disadvantages (in terms of relative costs, benefits, and 
                opportunities) of using resources of either Department 
                to provide or enhance health care to beneficiaries of 
                either Department.
            (B) A coordinated staffing and assignment system for the 
        personnel (including contract personnel) employed at or assigned 
        to those facilities, including clinical practitioners of either 
        Department.
            (C) Medical information and information technology systems 
        for those facilities that--
                    (i) are compatible with the purposes of the project;
                    (ii) communicate with medical information and 
                information technology systems of corresponding elements 
                of those facilities; and
                    (iii) incorporate minimum standards of information 
                quality that are at least equivalent to those adopted 
                for the Departments at large in their separate health 
                care systems.

    (d) Authority To Waive Certain Administrative Policies.--(1)(A) In 
order to carry out subsection (c), the Secretary of Defense may, in the 
Secretary's discretion, waive any administrative policy of the 
Department of Defense otherwise applicable to that subsection that 
specifically conflicts with the purposes of the project, in instances in 
which the Secretary determines that the waiver is necessary for the 
purposes of the project.
    (B) In order to carry out subsection (c), the Secretary of Veterans 
Affairs may, in the Secretary's discretion, waive any administrative 
policy of the Department of Veterans Affairs otherwise applicable to 
that subsection that specifically conflicts with the purposes of the 
project, in instances in which the Secretary determines that the waiver 
is necessary for the purposes of the project.
    (C) The two Secretaries shall establish procedures for resolving 
disputes that may arise from the effects of policy changes that are not 
covered by other agreements or existing procedures.

[[Page 116 STAT. 2597]]

    (2) No waiver under paragraph (1) may alter any labor-management 
agreement in effect as of the date of the enactment of this Act or 
adopted by either Department during the period of the project.
    (e) Use by DOD of Certain Title 38 Personnel Authorities.--(1) In 
order to carry out subsection (c), the Secretary of Defense may apply to 
civilian personnel of the Department of Defense assigned to or employed 
at a military treatment facility participating in the project any of the 
provisions of subchapters I, III, and IV of chapter 74 of title 38, 
United States Code, determined appropriate by the Secretary.
    (2) For purposes of paragraph (1), any reference in chapter 74 of 
title 38, United States Code--
            (A) to the ``Secretary'' or the ``Under Secretary for 
        Health'' shall be treated as referring to the Secretary of 
        Defense; and
            (B) to the ``Veterans Health Administration'' shall be 
        treated as referring to the Department of Defense.

    (f) Funding.--From amounts available for health care for a fiscal 
year, each Secretary shall make available to carry out the project not 
less than--
            (1) $3,000,000 for fiscal year 2003;
            (2) $6,000,000 for fiscal year 2004; and
            (3) $9,000,000 for each succeeding year during which the 
        project is in effect.

    (g) Definitions.--For purposes of this section:
            (1) The term ``military treatment facility'' means a medical 
        facility under the jurisdiction of the Secretary of a military 
        department.
            (2) The term ``VA health care facility'' means a facility 
        under the jurisdiction of the Veterans Health Administration of 
        the Department of Veterans Affairs.

    (h) Performance Review.--(1) The Comptroller General shall provide 
for an annual on-site review at each of the project locations selected 
by the Secretaries under this section.
    (2) Not later than 90 days after completion of the annual review 
under paragraph (1), the Comptroller General shall submit a report on 
such review to the Committees on Armed Services and Veterans' Affairs of 
the Senate and House of Representatives.
    (3) Each such report shall include the following:
            (A) The strategic mission coordination between shared 
        activities.
            (B) The accuracy and validity of performance data used to 
        evaluate sharing performance and changes in standards of care or 
        services at the shared facilities.
            (C) A statement that all appropriated funds designated for 
        sharing activities are being used for direct support of sharing 
        initiatives.
            (D) Recommendations concerning continuance of the project at 
        each site for the succeeding 12-month period.

    (4) Whenever there is a recommendation under paragraph (3)(D) to 
discontinue a resource sharing project under this section, the two 
Secretaries shall act upon that recommendation as soon as practicable.
    (5) In the initial report under this subsection, the Comptroller 
General shall validate the baseline information used for comparative 
analysis.

[[Page 116 STAT. 2598]]

    (i) Termination.--(1) The project, and the authority provided by 
this section, shall terminate on September 30, 2007.
    (2) The two Secretaries jointly may terminate the performance of the 
project at any site when the performance of the project at that site 
fails to meet performance expectations of the Secretaries, based on 
recommendations from the Comptroller General under subsection (h) or on 
other information available to the Secretaries to warrant such action.

SEC. 723. REPORT ON IMPROVED COORDINATION AND SHARING OF HEALTH CARE AND 
            HEALTH CARE RESOURCES FOLLOWING DOMESTIC ACTS OF TERRORISM 
            OR DOMESTIC USE OF WEAPONS OF MASS DESTRUCTION.

    (a) Joint Review.--The Secretary of Defense and the Secretary of 
Veterans Affairs shall jointly review the adequacy of current processes 
and existing statutory authorities and policy governing the capability 
of the Department of Defense and the Department of Veterans Affairs to 
provide health care to members of the Armed Forces following domestic 
acts of terrorism or domestic use of weapons of mass destruction, both 
before and after any declaration of national emergency. Such review 
shall include a determination of the adequacy of current authorities in 
providing for the coordination and sharing of health care resources 
between the two Departments in such cases, particularly before the 
declaration of a national emergency.
    (b) Report to Congress.--The two Secretaries shall include a joint 
report on the review under subsection (a), including any recommended 
legislative changes, shall be submitted to Congress as part of the 
fiscal year 2004 budget submission to Congress.

SEC. 724. <<NOTE: 10 USC 1074g note.>> INTEROPERABILITY OF DEPARTMENT OF 
            VETERANS AFFAIRS AND DEPARTMENT OF DEFENSE PHARMACY DATA 
            SYSTEMS.

    (a) Interoperability.--The Secretary of Veterans Affairs and the 
Secretary of Defense shall seek to ensure that on or before October 1, 
2004, the Department of Veterans Affairs pharmacy data system and the 
Department of Defense pharmacy data system (known as the ``Pharmacy Data 
Transaction System'') are interoperable for both Department of Defense 
beneficiaries and Department of Veterans Affairs beneficiaries by 
achieving real-time interface, data exchange, and checking of 
prescription drug data of outpatients, and using national standards for 
the exchange of outpatient medication information.
    (b) Alternative Requirement.--If the interoperability specified in 
subsection (a) is not achieved by October 1, 2004, as determined jointly 
by the Secretary of Defense and the Secretary of Veterans Affairs, the 
Secretary of Veterans Affairs shall adopt the Department of Defense 
Pharmacy Data Transaction System for use by the Department of Veterans 
Affairs health care system. Such system <<NOTE: Deadline.>> shall be 
fully operational not later than October 1, 2005.

    (c) Implementation Funding for Alternative Requirement.--The 
Secretary of Defense shall transfer to the Secretary of Veterans 
Affairs, or shall otherwise bear the cost of, an amount sufficient to 
cover three-fourths of the cost to the Department

[[Page 116 STAT. 2599]]

of Veterans Affairs for computer programming activities and relevant 
staff training expenses related to implementation of subsection (b). 
Such amount shall be determined in such manner as agreed to by the two 
Secretaries.

SEC. 725. JOINT PILOT PROGRAM FOR PROVIDING GRADUATE MEDICAL EDUCATION 
            AND TRAINING FOR PHYSICIANS.

    (a) In <<NOTE: 10 USC 1094a note.>> General.--The Secretary of 
Defense and the Secretary of Veterans Affairs shall jointly carry out a 
pilot program under which graduate medical education and training is 
provided to military physicians and physician employees of the 
Department of Defense and the Department of Veterans Affairs through one 
or more programs carried out in military medical treatment facilities of 
the Department of Defense and medical centers of the Department of 
Veterans Affairs. The pilot program shall begin not later than January 
1, 2003.

    (b) Cost-Sharing Agreement.--The Secretaries shall enter into an 
agreement for carrying out the pilot program. The agreement shall 
establish means for each Secretary to assist in paying the costs, with 
respect to individuals under the jurisdiction of that Secretary, 
incurred by the other Secretary in providing medical education and 
training under the pilot program.
    (c) Use of Existing Authorities.--To carry out the pilot program, 
the Secretary of Defense and the Secretary of Veterans Affairs may use 
authorities provided to them under this subtitle, section 8111 of title 
38, United States Code (as amended by section 721(a)), and other laws 
relating to the furnishing or support of medical education and the 
cooperative use of facilities.
    (d) Termination of Program.--The pilot program under this section 
shall terminate on July 31, 2008.
    (e) Repeal of Superseded Provision.--Section 738 of the National 
Defense Authorization Act for Fiscal Year 2002 (Public Law 107-107; 10 
U.S.C. 1094 note; 115 Stat.1173) <<NOTE: 10 USC 1094a note.>> is 
repealed.

SEC. 726. REPEAL OF CERTAIN LIMITS ON DEPARTMENT OF VETERANS AFFAIRS 
            RESOURCES.

    (a) Repeal of VA Bed Limits.--Section 8110(a)(1) of title 38, United 
States Code, is amended--
            (1) in the first sentence, by striking ``at not more than 
        125,000 and not less than 100,000'';
            (2) in the third sentence, by striking ``shall operate and 
        maintain a total of not less than 90,000 hospital beds and 
        nursing home beds and''; and
            (3) in the fourth sentence, by striking ``to enable the 
        Department to operate and maintain a total of not less than 
        90,000 hospital and nursing home beds in accordance with this 
        paragraph and''.

    (b) Effective <<NOTE: 38 USC 8110 note.>> Date.--The amendments made 
by subsection (a) shall take effect on October 1, 2003.

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

              Subtitle A--Acquisition Policy and Management

Sec. 801. Buy-to-budget acquisition of end items.

[[Page 116 STAT. 2600]]

Sec. 802. Report to Congress on evolutionary acquisition of major 
           defense acquisition programs.
Sec. 803. Spiral development under major defense acquisition programs.
Sec. 804. Improvement of software acquisition processes.
Sec. 805. Performance goals for procuring services pursuant to multiple 
           award contracts.
Sec. 806. Rapid acquisition and deployment procedures.
Sec. 807. Quick-reaction special projects acquisition team.

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

Sec. 811. Limitation period for task and delivery order contracts.
Sec. 812. One-year extension of program applying simplified procedures 
           to certain commercial items; report.
Sec. 813. Extension and improvement of personnel demonstration policies 
           and procedures applicable to the civilian acquisition 
           workforce.
Sec. 814. Past performance given significant weight in renewal of 
           procurement technical assistance cooperative agreements.
Sec. 815. Increased maximum amount of assistance for tribal 
           organizations or economic enterprises carrying out 
           procurement technical assistance programs in two or more 
           service areas.
Sec. 816. Extension of contract goal for small disadvantaged businesses 
           and certain institutions of higher education.
Sec. 817. Grants of exceptions to cost or pricing data certification 
           requirements and waivers of cost accounting standards.
Sec. 818. Timing of certification in connection with waiver of 
           survivability and lethality testing requirements.
Sec. 819. Contracting with Federal Prison Industries.
Sec. 820. Revisions to multiyear contracting authority.

        Subtitle C--Acquisition-Related Reports and Other Matters

Sec. 821. Evaluation of training, knowledge, and resources regarding 
           negotiation of intellectual property arrangements.
Sec. 822. Independent technology readiness assessments.
Sec. 823. Extension and amendment of requirement for annual report on 
           defense commercial pricing management improvement.
Sec. 824. Assessment of purchases of products and services through 
           contracts with other Federal departments and agencies.
Sec. 825. Repeal of certain requirements and Comptroller General reviews 
           of the requirements.
Sec. 826. Multiyear procurement authority for purchase of dinitrogen 
           tetroxide, hydrazine, and hydrazine-related products.
Sec. 827. Multiyear procurement authority for environmental services for 
           military installations.
Sec. 828. Report on effects of Army Contracting Agency.
Sec. 829. Authorization to take actions to correct the industrial 
           resource shortfall for radiation-hardened electronics.

              Subtitle A--Acquisition Policy and Management

SEC. 801. BUY-TO-BUDGET ACQUISITION OF END ITEMS.

    (a) Authority.--(1) Chapter 137 of title 10, United States Code, is 
amended by inserting after section 2307 the following new section:

``Sec. 2308. Buy-to-budget acquisition: end items

    ``(a) Authority To Acquire Additional End Items.--Using funds 
available to the Department of Defense for the acquisition of an end 
item, the head of an agency making the acquisition may acquire a higher 
quantity of the end item than the quantity specified for the end item in 
a law providing for the funding of that acquisition if that head of an 
agency makes each of the following findings:

[[Page 116 STAT. 2601]]

            ``(1) The agency has an established requirement for the end 
        item that is expected to remain substantially unchanged 
        throughout the period of the acquisition.
            ``(2) It is possible to acquire the higher quantity of the 
        end item without additional funding because of production 
        efficiencies or other cost reductions.
            ``(3) The amount of the funds used for the acquisition of 
        the higher quantity of the end item will not exceed the amount 
        provided under that law for the acquisition of the end item.
            ``(4) The amount so provided is sufficient to ensure that 
        each unit of the end item acquired within the higher quantity is 
        fully funded as a complete end item.

    ``(b) Regulations.--The Secretary of Defense shall prescribe 
regulations for the administration of this section. The regulations 
shall include, at a minimum, the following:
            ``(1) The level of approval within the Department of Defense 
        that is required for a decision to acquire a higher quantity of 
        an end item under subsection (a).
            ``(2) Authority (subject to subsection (a)) to acquire up to 
        10 percent more than the quantity of an end item approved in a 
        justification and approval of the use of procedures other than 
        competitive procedures for the acquisition of the end item under 
        section 2304 of this title.

    ``(c) Notification <<NOTE: Deadline.>> of Congress.--The head of an 
agency is not required to notify Congress in advance regarding a 
decision under the authority of this section to acquire a higher 
quantity of an end item than is specified in a law described in 
subsection (a), but shall notify the congressional defense committees of 
the decision not later than 30 days after the date of the decision.

    ``(d) Waiver by Other Law.--A provision of law may not be construed 
as prohibiting the acquisition of a higher quantity of an end item under 
this section unless that provision of law--
            ``(1) specifically refers to this section; and
            ``(2) specifically states that the acquisition of the higher 
        quantity of the end item is prohibited notwithstanding the 
        authority provided in this section.

    ``(e) Definitions.--(1) For the purposes of this section, a quantity 
of an end item shall be considered specified in a law if the quantity is 
specified either in a provision of that law or in any related 
representation that is set forth separately in a table, chart, or 
explanatory text included in a joint explanatory statement or governing 
committee report accompanying the law.
    ``(2) In this section:
                    ``(A) The term `congressional defense committees' 
                means--
                          ``(i) the Committee on Armed Services and the 
                      Committee on Appropriations of the Senate; and
                          ``(ii) the Committee on Armed Services and the 
                      Committee on Appropriations of the House of 
                      Representatives.
                    ``(B) The term `end item' means a production product 
                assembled, completed, and ready for issue or deployment.
                    ``(C) The term `head of an agency' means the 
                Secretary of Defense, the Secretary of the Army, the 
                Secretary of the Navy, and the Secretary of the Air 
                Force.''.

[[Page 116 STAT. 2602]]

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2307 the 
following new item:

``2308. Buy-to-budget acquisition: end items.''.

    (b) Time <<NOTE: 10 USC 2308 note.>> for Issuance of Final 
Regulations.--The Secretary of Defense shall issue the final regulations 
under section 2308(b) of title 10, United States Code (as added by 
subsection (a)), not later than 120 days after the date of the enactment 
of this Act.

SEC. 802. REPORT TO CONGRESS ON EVOLUTIONARY ACQUISITION OF MAJOR 
            DEFENSE ACQUISITION PROGRAMS.

    (a) Report <<NOTE: Deadline.>> Required.--(1) Not later than 120 
days after the date of the enactment of this Act, the Secretary of 
Defense shall submit to the congressional defense committees a report on 
the approach that the Secretary plans to take to apply the requirements 
listed in paragraph (2) to major defense acquisition programs that 
follow the evolutionary acquisition process.

    (2) The requirements referred to in paragraph (1) are--
            (A) the requirements of chapter 144 of title 10, United 
        States Code;
            (B) sections 139, 181, 2366, 2399, and 2400 of such title;
            (C) Department of Defense Directive 5000.1;
            (D) Department of Defense Instruction 5000.2;
            (E) Chairman of the Joint Chiefs of Staff Instruction 
        3170.01B; and
            (F) other provisions of law and regulations (including 
        successor documents) that are applicable to such programs.

    (b) Content of Report.--The report shall, at a minimum, address the 
following matters:
            (1) The manner in which the Secretary plans to establish and 
        approve, for each increment of an evolutionary acquisition 
        process--
                    (A) operational requirements; and
                    (B) cost and schedule goals.
            (2) The manner in which the Secretary plans, for each 
        increment of an evolutionary acquisition process--
                    (A) to meet requirements for operational testing and 
                live fire testing;
                    (B) to monitor cost and schedule performance; and
                    (C) to comply with laws requiring reports to 
                Congress on results testing and on cost and schedule 
                performance.
            (3) The manner in which the Secretary plans to ensure that 
        each increment of an evolutionary acquisition process is 
        designed--
                    (A) to achieve interoperability within and among 
                United States forces and United States coalition 
                partners; and
                    (B) to optimize total system performance and 
                minimize total ownership costs by giving appropriate 
                consideration to--
                          (i) logistics planning;
                          (ii) manpower, personnel, and training;
                          (iii) human, environmental, safety, 
                      occupational health, accessibility, survivability, 
                      operational continuity, and security factors;
                          (iv) protection of critical program 
                      information; and

[[Page 116 STAT. 2603]]

                          (v) spectrum management.

    (c) Definitions.--In this section:
            (1) The term ``evolutionary acquisition process'' means a 
        process by which an acquisition program is conducted through 
        discrete phases or blocks, with each phase or block consisting 
        of the planned definition, development, production or 
        acquisition, and fielding of hardware or software that provides 
        operationally useful capability.
            (2) The term ``increment'', with respect to an evolutionary 
        acquisition program, means one of the discrete phases or blocks 
        of such program.
            (3) The term ``major defense acquisition program'' has the 
        meaning given such term in section 139(a)(2)(B) of title 10, 
        United States Code.

SEC. 803. <<NOTE: 10 USC 2430 note.>> SPIRAL DEVELOPMENT UNDER MAJOR 
            DEFENSE ACQUISITION PROGRAMS.

    (a) Authority.--The Secretary of Defense is authorized to conduct 
major defense acquisition programs as spiral development programs.
    (b) Limitation on Spiral Development Programs.--A research and 
development program for a major defense acquisition program of a 
military department or Defense Agency may not be conducted as a spiral 
development program unless the Secretary of Defense approves the spiral 
development plan for that research and development program in accordance 
with subsection (c). The Secretary of Defense may delegate authority to 
approve the plan to the Under Secretary of Defense for Acquisition, 
Technology, and Logistics, or to the senior acquisition executive of the 
military department or Defense Agency concerned, but such authority may 
not be further delegated.
    (c) Spiral Development Plans.--A spiral development plan for a 
research and development program for a major defense acquisition program 
shall, at a minimum, include the following matters:
            (1) A rationale for dividing the research and development 
        program into separate spirals, together with a preliminary 
        identification of the spirals to be included.
            (2) A program strategy, including overall cost, schedule, 
        and performance goals for the total research and development 
        program.
            (3) Specific cost, schedule, and performance parameters, 
        including measurable exit criteria, for the first spiral to be 
        conducted.
            (4) A testing plan to ensure that performance goals, 
        parameters, and exit criteria are met.
            (5) An appropriate limitation on the number of prototype 
        units that may be produced under the research and development 
        program.
            (6) Specific performance parameters, including measurable 
        exit criteria, that must be met before the major defense 
        acquisition program proceeds into production of units in excess 
        of the limitation on the number of prototype units.

    (d) Guidance.--Not <<NOTE: Deadline.>> later than 120 days after the 
date of the enactment of this Act, the Secretary of Defense shall issue 
guidance for the implementation of spiral development programs 
authorized by this section. The guidance shall include appropriate 
processes for ensuring the independent validation of exit criteria being 
met, 


[[Page 116 STAT. 2604]]

the operational assessment of fieldable prototypes, and the management 
of spiral development programs.
    (e) Reporting Requirement.--The Secretary shall submit to Congress 
by September 30 of each of 2003 through 2008 a status report on each 
research and development program that is a spiral development program. 
The report shall contain information on unit costs that is similar to 
the information on unit costs under major defense acquisition programs 
that is required to be provided to Congress under chapter 144 of title 
10, United States Code, except that the information on unit costs shall 
address projected prototype costs instead of production costs.
    (f) Applicability of Existing Law.--Nothing in this section shall be 
construed to exempt any program of the Department of Defense from the 
application of any provision of chapter 144 of title 10, United States 
Code, section 139, 181, 2366, 2399, or 2400 of such title, or any 
requirement under Department of Defense Directive 5000.1, Department of 
Defense Instruction 5000.2, or Chairman of the Joint Chiefs of Staff 
Instruction 3170.01B in accordance with the terms of such provision or 
requirement.
    (g) Definitions.--In this section:
            (1) The term ``spiral development program'', with respect to 
        a research and development program, means a program that--
                    (A) is conducted in discrete phases or blocks, each 
                of which will result in the development of fieldable 
                prototypes; and
                    (B) will not proceed into acquisition until specific 
                performance parameters, including measurable exit 
                criteria, have been met.
            (2) The term ``spiral'' means one of the discrete phases or 
        blocks of a spiral development program.
            (3) The term ``major defense acquisition program'' has the 
        meaning given such term in section 139(a)(2)(B) of title 10, 
        United States Code.

SEC. 804. <<NOTE: 10 USC 2302 note.>> IMPROVEMENT OF SOFTWARE 
            ACQUISITION PROCESSES.

    (a) Establishment of Programs.--(1) The Secretary of each military 
department shall establish a program to improve the software acquisition 
processes of that military department.
    (2) The head of each Defense Agency that manages a major defense 
acquisition program with a substantial software component shall 
establish a program to improve the software acquisition processes of 
that Defense Agency.
    (3) <<NOTE: Deadline.>> The programs required by this subsection 
shall be established not later than 120 days after the date of the 
enactment of this Act.

    (b) Program Requirements.--A program to improve software acquisition 
processes under this section shall, at a minimum, include the following:
            (1) A documented process for software acquisition planning, 
        requirements development and management, project management and 
        oversight, and risk management.
            (2) Efforts to develop appropriate metrics for performance 
        measurement and continual process improvement.
            (3) A process to ensure that key program personnel have an 
        appropriate level of experience or training in software 
        acquisition.

[[Page 116 STAT. 2605]]

            (4) A process to ensure that each military department and 
        Defense Agency implements and adheres to established processes 
        and requirements relating to the acquisition of software.

    (c) Department of Defense Guidance.--The Assistant Secretary of 
Defense for Command, Control, Communications, and Intelligence, in 
consultation with the Under Secretary of Defense for Acquisition, 
Technology, and Logistics, shall--
            (1) prescribe uniformly applicable guidance for the 
        administration of all of the programs established under 
        subsection (a) and take such actions as are necessary to ensure 
        that the military departments and Defense Agencies comply with 
        the guidance; and
            (2) assist the Secretaries of the military departments and 
        the heads of the Defense Agencies to carry out such programs 
        effectively by--
                    (A) ensuring that the criteria applicable to the 
                selection of sources provides added emphasis on past 
                performance of potential sources, as well as on the 
                maturity of the software products offered by the 
                potential sources; and
                    (B) identifying, and serving as a clearinghouse for 
                information regarding, best practices in software 
                development and acquisition in both the public and 
                private sectors.

    (d) Definitions.--In this section:
            (1) The term ``Defense Agency'' has the meaning given the 
        term in section 101(a)(11) of title 10, United States Code.
            (2) The term ``major defense acquisition program'' has the 
        meaning given such term in section 139(a)(2)(B) of title 10, 
        United States Code.

SEC. 805. PERFORMANCE GOALS FOR PROCURING SERVICES PURSUANT TO MULTIPLE 
            AWARD CONTRACTS.

    (a) Performance Goals.--Subsection (a) of section 802 of the 
National Defense Authorization Act for Fiscal Year 2002 (Public Law 107-
107; 115 Stat. 1178; 10 U.S.C. 2330 note) is amended to read as follows:
    ``(a) Goals.--(1) It shall be an objective of the Department of 
Defense to achieve efficiencies in procurements of services pursuant to 
multiple award contracts through the use of--
            ``(A) performance-based services contracting;
            ``(B) appropriate competition for task orders under services 
        contracts;
            ``(C) program review, spending analyses, and improved 
        management of services contracts.

    ``(2) In furtherance of such objective, the Department of Defense 
shall have the following goals:
            ``(A) To increase, as a percentage of all of the individual 
        purchases of services made by or for the Department of Defense 
        under multiple award contracts for a fiscal year (calculated on 
        the basis of dollar value), the volume of the individual 
        purchases of services that are made on a competitive basis and 
        involve receipt of more than one offer from qualified 
        contractors to a percentage as follows:
                    ``(i) For fiscal year 2003, a percentage not less 
                than 40 percent.
                    ``(ii) For fiscal year 2004, a percentage not less 
                than 50 percent.

[[Page 116 STAT. 2606]]

                    ``(iii) For fiscal year 2011, a percentage not less 
                than 75 percent.
            ``(B) To increase, as a percentage of all of the individual 
        purchases of services made by or for the Department of Defense 
        under multiple award contracts for a fiscal year (calculated on 
        the basis of dollar value), the use of performance-based 
        purchasing specifying firm fixed prices for the specific tasks 
        to be performed to a percentage as follows:
                    ``(i) For fiscal year 2003, a percentage not less 
                than 25 percent.
                    ``(ii) For fiscal year 2004, a percentage not less 
                than 35 percent.
                    ``(iii) For fiscal year 2005, a percentage not less 
                than 50 percent.
                    ``(iv) For fiscal year 2011, a percentage not less 
                than 70 percent.

    ``(3) The Secretary of Defense may adjust any percentage goal 
established in paragraph (2) if the Secretary determines in writing that 
such a goal is too high and cannot reasonably be achieved. In the event 
that the Secretary chooses to adjust such a goal, the Secretary shall--
            ``(A) establish a percentage goal that the Secretary 
        determines would create an appropriate incentive for Department 
        of Defense components to use competitive procedures or 
        performance-based services contracting, as the case may be; and
            ``(B) submit to the congressional defense committees a 
        report containing an explanation of the reasons for the 
        Secretary's determination and a statement of the new goal that 
        the Secretary has established.''.

    (b) Extension and Revision of Reporting Requirement.--Subsection (b) 
of such section is amended--
            (1) by striking ``March 1, 2006'' and inserting ``March 1, 
        2011''; and
            (2) by amending paragraph (5) to read as follows:
            ``(5) Regarding the individual purchases of services that 
        were made by or for the Department of Defense under multiple 
        award contracts in the fiscal year preceding the fiscal year in 
        which the report is required to be submitted, information 
        (determined using the data collection system established under 
        section 2330a of title 10, United States Code) as follows:
                    ``(A) The percentage (calculated on the basis of 
                dollar value) of such purchases that are purchases that 
                were made on a competitive basis and involved receipt of 
                more than one offer from qualified contractors.
                    ``(B) The percentage (calculated on the basis of 
                dollar value) of such purchases that are performance-
                based purchases specifying firm fixed prices for the 
                specific tasks to be performed.''.

    (c) Definitions.--Such section is further amended by adding at the 
end the following new subsection:
    ``(c) Definitions.--(1) In this section, the terms `individual 
purchase' and `multiple award contract' have the meanings given such 
terms in section 803(c) of this Act.
    ``(2) For the purposes of this section, an individual purchase of 
services is made on a competitive basis only if it is made pursuant

[[Page 116 STAT. 2607]]

to procedures described in paragraphs (2), (3), and (4) of section 
803(b) of this Act.''.
    (d) Conforming Amendment.--The heading for such section is amended 
by striking ``savings goals'' and inserting ``performance goals''.

SEC. 806. <<NOTE: 10 USC 2302 note.>> RAPID ACQUISITION AND DEPLOYMENT 
            PROCEDURES.

    (a) Requirement <<NOTE: Deadline.>> To Establish Procedures.--Not 
later than 180 days after the date of the enactment of this Act, the 
Secretary of Defense shall prescribe procedures for the rapid 
acquisition and deployment of items that are--
            (1) currently under development by the Department of Defense 
        or available from the commercial sector; and
            (2) urgently needed to react to an enemy threat or to 
        respond to significant and urgent safety situations.

    (b) Issues To Be Addressed.--The procedures prescribed under 
subsection (a) shall include the following:
            (1) A process for streamlined communications between the 
        Chairman of the Joint Chiefs of Staff, the acquisition 
        community, and the research and development community, 
        including--
                    (A) a process for the commanders of the combatant 
                commands and the Joint Chiefs of Staff to communicate 
                their needs to the acquisition community and the 
                research and development community; and
                    (B) a process for the acquisition community and the 
                research and development community to propose items that 
                meet the needs communicated by the combatant commands 
                and the Joint Chiefs of Staff.
            (2) Procedures for demonstrating, rapidly acquiring, and 
        deploying items proposed pursuant to paragraph (1)(B), 
        including--
                    (A) a process for demonstrating performance and 
                evaluating for current operational purposes the existing 
                capability of an item;
                    (B) a process for developing an acquisition and 
                funding strategy for the deployment of an item; and
                    (C) a process for making deployment determinations 
                based on information obtained pursuant to subparagraphs 
                (A) and (B).

    (c) Testing Requirement.--(1) The process for demonstrating 
performance and evaluating for current operational purposes the existing 
capability of an item prescribed under subsection (b)(2)(A) shall 
include--
            (A) an operational assessment in accordance with procedures 
        prescribed by the Director of Operational Test and Evaluation; 
        and
            (B) a requirement to provide information about any 
        deficiency of the item in meeting the original requirements for 
        the item (as stated in an operational requirements document or 
        similar document) to the deployment decisionmaking authority.

    (2) The process may not include a requirement for any deficiency of 
an item to be the determining factor in deciding whether to deploy the 
item.
    (d) Limitation.--The quantity of items of a system procured using 
the procedures prescribed pursuant to this section may not exceed the 
number established for low-rate initial production for

[[Page 116 STAT. 2608]]

the system. Any such items shall be counted for purposes of the number 
of items of the system that may be procured through low-rate initial 
production.

SEC. 807. <<NOTE: 10 USC 1702 note.>> QUICK-REACTION SPECIAL PROJECTS 
            ACQUISITION TEAM.

    (a) Establishment.--The Under Secretary of Defense for Acquisition, 
Technology, and Logistics shall establish a team of highly qualified 
acquisition professionals who shall be available to advise the Under 
Secretary on actions that can be taken to expedite the acquisition of 
urgently needed systems.
    (b) Duties.--The issues on which the team may provide advice shall 
include the following:
            (1) Industrial base issues, including the limited 
        availability of suppliers.
            (2) Technology development and technology transition issues.
            (3) Issues of acquisition policy, including the length of 
        the acquisition cycle.
            (4) Issues of testing policy and ensuring that weapon 
        systems perform properly in combat situations.
            (5) Issues of procurement policy, including the impact of 
        socio-economic requirements.
            (6) Issues relating to compliance with environmental 
        requirements.

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

SEC. 811. LIMITATION PERIOD FOR TASK AND DELIVERY ORDER CONTRACTS.

    (a) Limitation Period.--Section 2306c of title 10, United States 
Code, is amended by adding at the end the following new subsection:
    ``(g) Limitation Period for Task and Delivery Order Contracts.--(1) 
The authority and restrictions of this section, including the authority 
to enter into contracts for periods of not more than five years, shall 
apply with respect to task order and delivery order contracts entered 
into under the authority of section 2304a, 2304b, or 2304c of this 
title.
    ``(2) The regulations implementing this subsection shall establish a 
preference that, to the maximum extent practicable, multi-year 
requirements for task order and delivery order contracts be met with 
separate awards to two or more sources under the authority of section 
2304a(d)(1)(B) of this title.''.
    (b) Effective <<NOTE: 10 USC 2306c note.>> Date.--Subsection (g) of 
section 2306c of title 10, United States Code, as added by subsection 
(a), shall apply to all task order and delivery order contracts entered 
into on or after the date of the enactment of this Act.

    (c) Comptroller General Report.--Not later than March 15, 2003, the 
Comptroller General shall submit to the Committee on Armed Services of 
the Senate and the Committee on Armed Services of the House of 
Representatives a report on the contract periods (including any options 
or extensions) for all single and multiple contract awards entered into 
under section 2304a(d) of

[[Page 116 STAT. 2609]]

title 10, United States Code, before the effective date in subsection 
(b).

SEC. 812. ONE-YEAR EXTENSION OF PROGRAM APPLYING SIMPLIFIED PROCEDURES 
            TO CERTAIN COMMERCIAL ITEMS; REPORT.

    (a) Extension of Pilot Program.--Section 4202 of the Clinger-Cohen 
Act of 1996 (divisions D and E of Public Law 104-106; 10 U.S.C. 2304 
note) is amended in subsection (e) by striking ``January 1, 2003'' and 
inserting ``January 1, 2004''.
    (b) Report Required.--(1) Not later than March 15, 2003, the 
Comptroller General shall submit to Congress a report on the authority 
to issue solicitations for purchases of commercial items in excess of 
the simplified acquisition threshold pursuant to the special simplified 
procedures authorized by section 2304(g)(1) of title 10, United States 
Code, and section 31(a) of the Office of Federal Procurement Policy Act 
(41 U.S.C. 427(a)).
    (2) The report required by paragraph (1) shall address, at a 
minimum--
            (A) the extent to which such authority has been used by the 
        Secretary of Defense;
            (B) the benefits realized by the Department of Defense 
        through the use of such authority;
            (C) the impact of the use of such authority on competition 
        for contracts with the Department of Defense; and
            (D) any recommendations of the Comptroller General for the 
        continuation or modification of such authority.

SEC. 813. EXTENSION AND IMPROVEMENT OF PERSONNEL DEMONSTRATION POLICIES 
            AND PROCEDURES APPLICABLE TO THE CIVILIAN ACQUISITION 
            WORKFORCE.

    (a) Plan Required.--(1) The Secretary of Defense shall develop a 
plan for improving the personnel management policies and procedures 
applicable to the Department of Defense civilian acquisition workforce 
based on the results of the demonstration project described in section 
4308 of the Clinger-Cohen Act of 1996 (divisions D and E of Public Law 
104-106; 10 U.S.C. 1701 note).
    (2) Not later than February 15, 2003, the Secretary shall submit to 
Congress the plan required under paragraph (1) and a report on the plan, 
including any recommendations for legislative action necessary to 
implement the plan.
    (b) Extension of Demonstration Project Authority.--Section 4308 of 
the Clinger-Cohen Act of 1996 (divisions D and E of Public Law 104-106; 
10 U.S.C. 1701 note) is amended--
            (1) in subsection (b)(2)(C), by striking ``subsection 
        (d)(1)(A)'' and inserting ``subsection (d)(1)'';
            (2) by amending subparagraph (B) of subsection (b)(3) to 
        read as follows:
                    ``(B) commences before October 1, 2007.''; and
            (3) by adding at the end the following new subsection:

    ``(e) Termination of Authority.--The authority to conduct a 
demonstration program under this section shall terminate on September 
30, 2012.''.

[[Page 116 STAT. 2610]]

SEC. 814. PAST PERFORMANCE GIVEN SIGNIFICANT WEIGHT IN RENEWAL OF 
            PROCUREMENT TECHNICAL ASSISTANCE COOPERATIVE AGREEMENTS.

    Section 2413 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(d) In conducting a competition for the award of a cooperative 
agreement under subsection (a), and in determining the level of funding 
to provide under an agreement under subsection (b), the Secretary shall 
give significant weight to successful past performance of eligible 
entities under a cooperative agreement under this section.''.

SEC. 815. INCREASED MAXIMUM AMOUNT OF ASSISTANCE FOR TRIBAL 
            ORGANIZATIONS OR ECONOMIC ENTERPRISES CARRYING OUT 
            PROCUREMENT TECHNICAL ASSISTANCE PROGRAMS IN TWO OR MORE 
            SERVICE AREAS.

    Section 2414(a)(4) of title 10, United States Code, is amended by 
striking ``$300,000'' and inserting ``$600,000''.

SEC. 816. EXTENSION OF CONTRACT GOAL FOR SMALL DISADVANTAGED BUSINESSES 
            AND CERTAIN INSTITUTIONS OF HIGHER EDUCATION.

    Section 2323(k) of title 10, United States Code, is amended by 
striking ``2003'' both places it appears and inserting ``2006''.

SEC. 817. <<NOTE: 10 USC 2306a note.>> GRANTS OF EXCEPTIONS TO COST OR 
            PRICING DATA CERTIFICATION REQUIREMENTS AND WAIVERS OF COST 
            ACCOUNTING STANDARDS.

    (a) Guidance for Exceptions in Exceptional Circumstances.--
Not <<NOTE: Deadline.>> later than 60 days after the date of the 
enactment of this Act, the Secretary of Defense shall issue guidance on 
the circumstances under which it is appropriate to grant an exceptional 
case exception or waiver with respect to certified cost and pricing data 
and cost accounting standards.

    (b) Determination Required for Exceptional Case Exception or 
Waiver.--The guidance shall, at a minimum, include a limitation that a 
grant of an exceptional case exception or waiver is appropriate with 
respect to a contract, subcontract, or (in the case of submission of 
certified cost and pricing data) modification only upon a determination 
that--
            (1) the property or services cannot reasonably be obtained 
        under the contract, subcontract, or modification, as the case 
        may be, without the grant of the exception or waiver;
            (2) the price can be determined to be fair and reasonable 
        without the submission of certified cost and pricing data or the 
        application of cost accounting standards, as the case may be; 
        and
            (3) there are demonstrated benefits to granting the 
        exception or waiver.

    (c) Applicability of New Guidance.--The guidance issued under 
subsection (a) shall apply to each exceptional case exception or waiver 
that is granted on or after the date on which the guidance is issued.
    (d) Annual Report on Both Commercial Item and Exceptional Case 
Exceptions and Waivers With Price or Value Greater Than $15,000,000.--
(1) The Secretary of Defense shall transmit to the congressional defense 
committees promptly after the end of each fiscal year a report on 
commercial item exceptions,

[[Page 116 STAT. 2611]]

and exceptional case exceptions and waivers, described in paragraph (2) 
that were granted during that fiscal year.
    (2) The report for a fiscal year shall include--
            (A) with respect to any commercial item exception granted in 
        the case of a contract, subcontract, or contract or subcontract 
        modification that is expected to have a price of $15,000,000 or 
        more, an explanation of the basis for the determination that the 
        products or services to be purchased are commercial items, 
        including an identification of the specific steps taken to 
        ensure price reasonableness; and
            (B) with respect to any exceptional case exception or waiver 
        granted in the case of a contract or subcontract that is 
        expected to have a value of $15,000,000 or more, an explanation 
        of the basis for the determination described in subsection (b), 
        including an identification of the specific steps taken to 
        ensure that the price was fair and reasonable.

    (e) Definitions.--In this section:
            (1) The term ``exceptional case exception or waiver'' means 
        either of the following:
                    (A) An exception pursuant to section 2306a(b)(1)(C) 
                of title 10, United States Code, relating to submission 
                of certified cost and pricing data.
                    (B) A waiver pursuant to section 26(f)(5)(B) of the 
                Office of Federal Procurement Policy Act (41 U.S.C. 
                422(f)(5)(B)), relating to the applicability of cost 
                accounting standards to contracts and subcontracts.
            (2) The term ``commercial item exception'' means an 
        exception pursuant to section 2306a(b)(1)(B) of title 10, United 
        States Code, relating to submission of certified cost and 
        pricing data.

SEC. 818. TIMING OF CERTIFICATION IN CONNECTION WITH WAIVER OF 
            SURVIVABILITY AND LETHALITY TESTING REQUIREMENTS.

    (a) Certification for Expedited Programs.--Paragraph (1) of 
subsection (c) of section 2366 of title 10, United States Code, is 
amended to read as follows:
    ``(1) The Secretary of Defense may waive the application of the 
survivability and lethality tests of this section to a covered system, 
munitions program, missile program, or covered product improvement 
program if the Secretary determines that live-fire testing of such 
system or program would be unreasonably expensive and impractical and 
submits a certification of that determination to Congress--
            ``(A) before Milestone B approval for the system or program; 
        or
            ``(B) in the case of a system or program initiated at--
                    ``(i) Milestone B, as soon as is practicable after 
                the Milestone B approval; or
                    ``(ii) Milestone C, as soon as is practicable after 
                the Milestone C approval.''.

    (b) Definitions.--Subsection (e) of such section is amended by 
adding at the end the following new paragraphs:
            ``(8) The term `Milestone B approval' means a decision to 
        enter into system development and demonstration pursuant to 
        guidance prescribed by the Secretary of Defense for the 
        management of Department of Defense acquisition programs.

[[Page 116 STAT. 2612]]

            ``(9) The term `Milestone C approval' means a decision to 
        enter into production and deployment pursuant to guidance 
        prescribed by the Secretary of Defense for the management of 
        Department of Defense acquisition programs.''.

SEC. 819. CONTRACTING WITH FEDERAL PRISON INDUSTRIES.

    (a) Assurance of Best Value for National Defense.--(1) Section 2410n 
of title 10, United States Code, is amended--
            (A) in subsection (a)--
                    (i) by amending the heading to read as follows: 
                ``Market Research.--''; and
                    (ii) by striking ``comparable in price, quality, and 
                time of delivery to products available from the private 
                sector'' and inserting ``comparable to products 
                available from the private sector that best meet the 
                Department's needs in terms of price, quality, and time 
                of delivery'';
            (B) by striking subsection (b) and inserting the following:

    ``(b) Competition Requirement.--If the Secretary determines that a 
Federal Prison Industries product is not comparable in price, quality, 
or time of delivery to products available from the private sector that 
best meet the Department's needs in terms of price, quality, and time of 
delivery, the Secretary shall use competitive procedures for the 
procurement of the product or shall make an individual purchase under a 
multiple award contract. In conducting such a compeititon or making such 
a purchase, the Secretary shall consider a timely offer from Federal 
Prison Industries.''; and
            (C) by adding at the end the following new subsections:

    ``(c) Implementation by Secretary of Defense.--The Secretary of 
Defense shall ensure that--
            ``(1) the Department of Defense does not purchase a Federal 
        Prison Industries product or service unless a contracting 
        officer of the Department determines that the product or service 
        is comparable to products or services available from the private 
        sector that best meet the Department's needs in terms of price, 
        quality, and time of delivery; and
            ``(2) Federal Prison Industries performs its contractual 
        obligations to the same extent as any other contractor for the 
        Department of Defense.

    ``(d) Market Research Determination Not Subject to Review.--A 
determination by a contracting officer regarding whether a product or 
service offered by Federal Prison Industries is comparable to products 
or services available from the private sector that best meet the 
Department's needs in terms of price, quality, and time of delivery 
shall not be subject to review pursuant to section 4124(b) of title 18.
    ``(e) Performance as a Subcontractor.--(1) A contractor or potential 
contractor of the Department of Defense may not be required to use 
Federal Prison Industries as a subcontractor or supplier of products or 
provider of services for the performance of a Department of Defense 
contract by any means, including means such as--
            ``(A) a contract solicitation provision requiring a 
        contractor to offer to make use of products or services of 
        Federal Prison Industries in the performance of the contract;

[[Page 116 STAT. 2613]]

            ``(B) a contract specification requiring the contractor to 
        use specific products or services (or classes of products or 
        services) offered by Federal Prison Industries in the 
        performance of the contract; or
            ``(C) any contract modification directing the use of 
        products or services of Federal Prison Industries in the 
        performance of the contract.

    ``(2) In this subsection, the term `contractor', with respect to a 
contract, includes a subcontractor at any tier under the contract.
    ``(f) Protection of Classified and Sensitive Information.--The 
Secretary of Defense may not enter into any contract with Federal Prison 
Industries under which an inmate worker would have access to--
            ``(1) any data that is classified;
            ``(2) any geographic data regarding the location of--
                    ``(A) surface and subsurface infrastructure 
                providing communications or water or electrical power 
                distribution;
                    ``(B) pipelines for the distribution of natural gas, 
                bulk petroleum products, or other commodities; or
                    ``(C) other utilities; or
            ``(3) any personal or financial information about any 
        individual private citizen, including information relating to 
        such person's real property however described, without the prior 
        consent of the individual.

    ``(g) Definitions.--In this section:
            ``(1) The term `competitive procedures' has the meaning 
        given such term in section 2302(2) of this title.
            ``(2) The term `market research' means obtaining specific 
        information about the price, quality, and time of delivery of 
        products available in the private sector through a variety of 
        means, which may include--
                    ``(A) contacting knowledgeable individuals in 
                government and industry;
                    ``(B) interactive communication among industry, 
                acquisition personnel, and customers; and
                    ``(C) interchange meetings or pre-solicitation 
                conferences with potential offerors.''.

    (2) <<NOTE: Effective date. 10 USC 2410n note.>> Paragraph (1) and 
the amendments made by such paragraph shall take effect as of October 1, 
2001.

    (b) Regulatory <<NOTE: Publication. Deadlines. 10 USC 2410n 
note.>> Implementation.--(1) Proposed revisions to the Department of 
Defense Supplement to the Federal Acquisition Regulation to implement 
this section shall be published not later than 90 days after the date of 
the enactment of this Act, and not less than 60 days shall be provided 
for public comment on the proposed revisions.

    (2) Final regulations shall be published not later than 180 days 
after the date of the enactment of this Act and shall be effective on 
the date that is 30 days after the date of the publication.

SEC. 820. REVISIONS TO MULTIYEAR CONTRACTING AUTHORITY.

    (a) Use of Procurement and Advance Procurement Funds.--Section 
2306b(i) of title 10, United States Code, is amended by adding at the 
end the following new paragraph:
    ``(4)(A) The Secretary of Defense may obligate funds for procurement 
of an end item under a multiyear contract for the purchase of property 
only for procurement of a complete and usable end item.

[[Page 116 STAT. 2614]]

    ``(B) The Secretary of Defense may obligate funds appropriated for 
any fiscal year for advance procurement under a contract for the 
purchase of property only for the procurement of those long-lead items 
necessary in order to meet a planned delivery schedule for complete 
major end items that are programmed under the contract to be acquired 
with funds appropriated for a subsequent fiscal year (including an 
economic order quantity of such long-lead items when authorized by 
law).''.
    (b) Effective <<NOTE: 10 USC 2306b note.>> Date.--(1) Paragraph (4) 
of section 2306b(i) of title 10, United States Code, as added by 
subsection (a), shall not apply with respect to any contract awarded 
before the date of the enactment of this Act.

    (2) Nothing in this section shall be construed to authorize the 
expenditure of funds under any contract awarded before the date of the 
enactment of this Act for any purpose other than the purpose for which 
such funds have been authorized and appropriated.

        Subtitle C--Acquisition-Related Reports and Other Matters

SEC. 821. EVALUATION OF TRAINING, KNOWLEDGE, AND RESOURCES REGARDING 
            NEGOTIATION OF INTELLECTUAL PROPERTY ARRANGEMENTS.

    (a) Availability of Training, Knowledge, and Resources.--The 
Secretary of Defense shall evaluate the training, knowledge, and 
resources needed by the Department of Defense in order to effectively 
negotiate intellectual property rights using the principles of the 
Defense Federal Acquisition Regulation Supplement and determine whether 
the Department of Defense currently has in place the training, 
knowledge, and resources available to meet those Departmental needs.
    (b) Report.--Not <<NOTE: Deadline.>> later than February 1, 2003, 
the Secretary of Defense shall submit to Congress a report describing--
            (1) the results of the evaluation performed under subsection 
        (a);
            (2) to the extent the Department does not have adequate 
        training, knowledge, and resources available, actions to be 
        taken to improve training and knowledge and to make resources 
        available to meet the Department's needs; and
            (3) the number of Department of Defense legal personnel 
        trained in negotiating intellectual property arrangements.

SEC. 822. INDEPENDENT TECHNOLOGY READINESS ASSESSMENTS.

    Section 804(b) of the National Defense Authorization Act for Fiscal 
Year 2002 (Public Law 107-107; 115 Stat. 1180) is amended--
            (1) by striking ``and'' at the end of paragraph (1);
            (2) by striking the period at the end of paragraph (2) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(3) identify each case in which an authoritative decision 
        has been made within the Department of Defense not to conduct an 
        independent technology readiness assessment for a critical 
        technology on a major defense acquisition program and explain 
        the reasons for the decision.''.

[[Page 116 STAT. 2615]]

SEC. 823. EXTENSION AND AMENDMENT OF REQUIREMENT FOR ANNUAL REPORT ON 
            DEFENSE COMMERCIAL PRICING MANAGEMENT IMPROVEMENT.

    Section 803(c)(4) of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (Public Law 105-261; 112 Stat. 
2082; 10 U.S.C. 2306a note) is amended--
            (1) by striking ``2000, 2001, and 2002,'' and inserting 
        ``2000 through 2006,'';
            (2) by inserting after ``were conducted'' the following: 
        ``by the Secretary of each military department and the Director 
        of the Defense Logistics Agency''; and
            (3) by inserting after ``actions taken'' the following: ``by 
        each Secretary and the Director''.

SEC. 824. ASSESSMENT OF PURCHASES OF PRODUCTS AND SERVICES THROUGH 
            CONTRACTS WITH OTHER FEDERAL DEPARTMENTS AND AGENCIES.

    (a) Requirement for Assessment.--The Secretary of Defense shall 
carry out an assessment of purchases by the Department of Defense of 
products and services through contracts entered into with other Federal 
departments and agencies.
    (b) Period Covered by Assessment.--The assessment required by 
subsection (a) shall cover purchases made during fiscal years 2000 
through 2002.
    (c) Report.--Not <<NOTE: Deadline.>> later than February 1, 2003, 
the Secretary of Defense shall submit to the Committees on Armed 
Services of the Senate and the House of Representatives a report on the 
results of the assessment conducted under subsection (a). The report 
shall include the following:
            (1) The total amount paid by the Department of Defense as 
        fees for the acquisition of such products and services.
            (2) A determination of whether such total amount paid is 
        excessive and should be reduced.
            (3) A description of the benefits received by the Department 
        as a result of purchasing such products and services through 
        such contracts.

SEC. 825. REPEAL OF CERTAIN REQUIREMENTS AND COMPTROLLER GENERAL REVIEWS 
            OF THE REQUIREMENTS.

    (a) Termination of Authority To Transfer Funds into Defense 
Modernization Account.--(1) Paragraph (1) of section 912(c) of the 
National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
106; 110 Stat. 410; 10 U.S.C. 2216 note) is amended by striking 
``September 30, 2003'' and inserting ``September 30, 2002''.
    (2) Section 912(d) of such Act (110 Stat. 410; 10 U.S.C. 2216 note), 
relating to Comptroller General reviews of the administration of the 
Defense Modernization Account, is repealed.
    (b) Repeal of Solutions-Based Contracting Pilot Program.--(1) 
Section 11522 of title 40, United States Code, is repealed.
    (2)(A) Section 11501 of title 40, United States Code, is amended--
            (i) in the section heading, by striking ``programs'' and 
        inserting ``program'';
            (ii) in subsection (a)(1), by striking ``conduct pilot 
        programs'' and inserting ``conduct a pilot program pursuant to 
        the requirements of section 11521 of this title'';

[[Page 116 STAT. 2616]]

            (iii) in subsection (a)(2), by striking ``each pilot 
        program'' and inserting ``the pilot program'';
            (iv) in subsection (b)--
                    (I) by striking ``Limitations.--'' and all that 
                follows through ``pilot programs conducted'' and 
                inserting the following: ``Limitation on Amount.--The 
                total amount obligated for contracts entered into under 
                the pilot program conducted''; and
                    (II) by striking ``paragraph.'' and inserting 
                ``subsection.''; and
            (v) in subsection (c)(1), by striking ``a pilot'' and 
        inserting ``the pilot''.

    (B) The following provisions of chapter 115 of such title are each 
amended by striking ``a pilot'' each place it appears and inserting 
``the pilot'':
            (i) Section 11502(a).
            (ii) Section 11502(b).
            (iii) Section 11503(a).
            (iv) Section 11504.

    (C) Section 11505 of such chapter is amended by striking 
``programs'' and inserting ``program''.
    (3)(A) The chapter heading for chapter 115 of such title is amended 
by striking ``PROGRAMS'' and inserting ``PROGRAM''.
    (B) The subchapter heading for subchapter I and for subchapter II of 
such chapter are each amended by striking ``PROGRAMS'' and inserting 
``PROGRAM''.
    (C) The item relating to subchapter I in the table of sections at 
the beginning of such chapter is amended to read as follows:

               ``SUBCHAPTER I--CONDUCT OF PILOT PROGRAM''.

    (D) The item relating to subchapter II in the table of sections at 
the beginning of such chapter is amended to read as follows:

               ``SUBCHAPTER II--SPECIFIC PILOT PROGRAM''.

    (E) The item relating to section 11501 in the table of sections at 
the beginning of such is amended by striking ``programs'' and inserting 
``program''.
    (F) The table of sections at the beginning of such chapter is 
amended by striking the item relating to section 11522.
    (G) The item relating to chapter 115 in the table of chapters for 
subtitle III of title 40, United States Code, is amended to read as 
follows:

``115. INFORMATION TECHNOLOGY ACQUISITION PILOT PROGRAM.........11501''.

    (c) Repeal of On-Line Multiple Award Schedule Contracting 
Requirements.--(1) Section 11701 of title 40, United States Code, is 
repealed.
    (2) Sections 11702, 11703, and 11704 of such title are redesignated 
as sections 11701, 11702, and 11703, respectively.
    (3) The table of sections for chapter 117 of such title is amended--
            (A) by striking the item relating to section 11701; and
            (B) by redesignating the items relating to sections 11702, 
        11703, and 11704 as sections 11701, 11702, and 11703, 
        respectively.

[[Page 116 STAT. 2617]]

SEC. 826. MULTIYEAR PROCUREMENT AUTHORITY FOR PURCHASE OF DINITROGEN 
            TETROXIDE, HYDRAZINE, AND HYDRAZINE-RELATED PRODUCTS.

    (a) In General.--Chapter 141 of title 10, United States Code, is 
amended by inserting after section 2410n the following new section:

``Sec. 2410o. Multiyear procurement authority: purchase of dinitrogen 
                        tetroxide, hydrazine, and hydrazine-related 
                        products

    ``(a) Ten-Year Contract Period.--The Secretary of Defense may enter 
into a contract for a period of up to 10 years for the purchase of 
dinitrogen tetroxide, hydrazine, and hydrazine-related products for the 
support of a United States national security program or a United States 
space program.
    ``(b) Extensions.--A contract entered into for more than one year 
under the authority of subsection (a) may be extended for a total of not 
more than 10 years pursuant to any option or options set forth in the 
contract.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following item:

``2410o. Multiyear procurement authority: purchase of dinitrogen 
           tetroxide, hydrazine, and hydrazine-related products.''.

SEC. 827. MULTIYEAR PROCUREMENT AUTHORITY FOR ENVIRONMENTAL SERVICES FOR 
            MILITARY INSTALLATIONS.

    (a) Authority.--Subsection (b) of section 2306c of title 10, United 
States Code, is amended by adding at the end the following new 
paragraph:
            ``(5) Environmental remediation services for--
                    ``(A) an active military installation;
                    ``(B) a military installation being closed or 
                realigned under a base closure law; or
                    ``(C) a site formerly used by the Department of 
                Defense.''.

    (b) Definitions.--Such section, as amended by section 811, is 
further amended by adding at the end the following new subsection:
    ``(h) Additional Definitions.--In this section:
            ``(1) The term `base closure law' has the meaning given such 
        term in section 2667(h)(2) of this title.
            ``(2) The term `military installation' has the meaning given 
        such term in section 2801(c)(2) of this title.''.

SEC. 828. REPORT ON EFFECTS OF ARMY CONTRACTING AGENCY.

    (a) In general.--The Secretary of the Army shall submit a report on 
the effects of the establishment of an Army Contracting Agency on small 
business participation in Army procurements during the first year of 
operation of such an agency to--
            (1) the Committee on Armed Services of the House of 
        Representatives;
            (2) the Committee on Armed Services of the Senate;
            (3) the Committee on Small Business of the House of 
        Representatives; and
            (4) the Committee on Small Business and Entrepreneurship of 
        the Senate.

[[Page 116 STAT. 2618]]

    (b) Content.--The report required under subsection (a) shall 
include, in detail--
            (1) the justification for the establishment of an Army 
        Contracting Agency;
            (2) the impact of the creation of an Army Contracting Agency 
        on--
                    (A) Army compliance with--
                          (i) Department of Defense Directive 4205.1;
                          (ii) section 15(g) of the Small Business Act 
                      (15 U.S.C. 644(g)); and
                          (iii) section 15(k) of the Small Business Act 
                      (15 U.S.C. 644(k)); and
                    (B) small business participation in Army procurement 
                of products and services for affected Army 
                installations, including--
                          (i) the impact on small businesses located 
                      near Army installations, including--
                                    (I) the increase or decrease in the 
                                total value of Army prime contracting 
                                with local small businesses; and
                                    (II) the opportunities for small 
                                business owners to meet and interact 
                                with Army procurement personnel; and
                          (ii) any change or projected change in the use 
                      of consolidated contracts and bundled contracts; 
                      and
            (3) a description of the Army's plan to address any negative 
        impact on small business participation in Army procurement, to 
        the extent such impact is identified in the report.

    (c) Time for Submission.--The report under this section shall be 
submitted 15 months after the date of the establishment of the Army 
Contracting Agency.

SEC. 829. <<NOTE: 50 USC app. 2093 note.>> AUTHORIZATION TO TAKE ACTIONS 
            TO CORRECT THE INDUSTRIAL RESOURCE SHORTFALL FOR RADIATION-
            HARDENED ELECTRONICS.

    Notwithstanding the limitation in section 303(a)(6)(C) of the 
Defense Production Act of 1950 (50 U.S.C. App. 2093(a)(6)(C)), action or 
actions may be taken under section 303 of that Act to correct the 
industrial resource shortfall for radiation-hardened electronics, if 
such actions do not cause the aggregate outstanding amount of all such 
actions to exceed $106,000,000.

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

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

Sec. 901. Under Secretary of Defense for Intelligence.
Sec. 902. Reorganization of Office of Secretary of Defense for 
           administration of duties relating to homeland defense and 
           combating terrorism.

                      Subtitle B--Space Activities

Sec. 911. Oversight of acquisition for defense space programs.
Sec. 912. Report regarding assured access to space for the United 
           States.

                           Subtitle C--Reports

Sec. 921. Report on establishment of United States Northern Command.
Sec. 922. Time for submittal of report on Quadrennial Defense Review.
Sec. 923. National defense mission of Coast Guard to be included in 
           future Quadrennial Defense Reviews.

[[Page 116 STAT. 2619]]

Sec. 924. Report on establishment of a Joint National Training Complex 
           and joint opposing forces.

                        Subtitle D--Other Matters

Sec. 931. Authority to accept gifts for National Defense University.
Sec. 932. Western Hemisphere Institute for Security Cooperation.
Sec. 933. Conforming amendment to reflect disestablishment of Department 
           of Defense Consequence Management Program Integration Office.
Sec. 934. Increase in number of Deputy Commandants of the Marine Corps.

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

SEC. 901. UNDER SECRETARY OF DEFENSE FOR INTELLIGENCE.

    (a) Establishment of Position.--Chapter 4 of title 10, United States 
Code, is amended--
            (1) by transferring section 137 within such chapter to 
        appear after section 139 and redesignating that section as 
        section 139a; and
            (2) by inserting after section 136a the following new 
        section 137:

``Sec. 137. Under Secretary of Defense for Intelligence

    ``(a) There is an Under Secretary of Defense for Intelligence, 
appointed from civilian life by the President, by and with the advice 
and consent of the Senate.
    ``(b) Subject to the authority, direction, and control of the 
Secretary of Defense, the Under Secretary of Defense for Intelligence 
shall perform such duties and exercise such powers as the Secretary of 
Defense may prescribe in the area of intelligence.
    ``(c) The Under Secretary of Defense for Intelligence takes 
precedence in the Department of Defense after the Under Secretary of 
Defense for Personnel and Readiness.''.
    (b) Conforming Amendments.--(1) Section 131(b) of such title is 
amended--
            (A) by striking paragraphs (2) through (5) and inserting the 
        following:
            ``(2) The Under Secretaries of Defense, as follows:
                    ``(A) The Under Secretary of Defense for 
                Acquisition, Technology, and Logistics.
                    ``(B) The Under Secretary of Defense for Policy.
                    ``(C) The Under Secretary of Defense (Comptroller).
                    ``(D) The Under Secretary of Defense for Personnel 
                and Readiness.
                    ``(E) The Under Secretary of Defense for 
                Intelligence.''; and
            (B) by redesignating paragraphs (6), (7), (8), (9), (10), 
        and (11) as paragraphs (3), (4), (5), (6), (7), and (8), 
        respectively.

    (2) The table of sections at the beginning of chapter 4 of such 
title is amended--
            (A) by striking the item relating to section 137 and 
        inserting the following:

``137. Under Secretary of Defense for Intelligence.'';

        and

[[Page 116 STAT. 2620]]

            (B) by inserting after the item relating to section 139 the 
        following new item:

``139a. Director of Defense Research and Engineering.''.

    (c) Executive Level III.--Section 5314 of title 5, United States 
Code, is amended by inserting after ``Under Secretary of Defense for 
Personnel and Readiness.'' the following:
            ``Under Secretary of Defense for Intelligence.''.

    (d) Relationship <<NOTE: 10 USC 137 note.>> to Authorities Under 
National Security Act of 1947.--Nothing in section 137 of title 10, 
United States Code, as added by subsection (a), shall supersede or 
modify the authorities of the Secretary of Defense and the Director of 
Central Intelligence as established by the National Security Act of 1947 
(50 U.S.C. 401 et seq.).

    (e) Report.--Not <<NOTE: Deadline.>> later than 90 days after the 
date of the enactment of this Act, the Secretary of Defense shall submit 
to Congress a report on the establishment of the position of Under 
Secretary of Defense for Intelligence. The report shall set forth the 
following:
            (1) The mission prescribed for that Under Secretary.
            (2) The organizational structure established for the office 
        of that Under Secretary.
            (3) The relationship of that Under Secretary with the Under 
        Secretary of Defense for Acquisition, Technology, and Logistics 
        and the Under Secretary of Defense for Policy.
            (4) The relationship of that Under Secretary with each of 
        the following intelligence components of the Department of 
        Defense: the National Security Agency, the Defense Intelligence 
        Agency, the National Imagery and Mapping Agency, and the 
        National Reconnaissance Office.
            (5) The mission of the position designated, as of the date 
        of the enactment of this Act, as Assistant Secretary of Defense 
        for Command, Control, Communications, and Intelligence and the 
        relationship of that position to the Under Secretary of Defense 
        for Intelligence.

SEC. 902. REORGANIZATION OF OFFICE OF SECRETARY OF DEFENSE FOR 
            ADMINISTRATION OF DUTIES RELATING TO HOMELAND DEFENSE AND 
            COMBATING TERRORISM.

    (a) Assistant Secretary of Defense for Homeland Defense.--Section 
138(b) of title 10, United States Code, is amended by inserting after 
paragraph (2) the following new paragraph:
    ``(3) One of the Assistant Secretaries shall be the Assistant 
Secretary of Defense for Homeland Defense. He shall have as his 
principal duty the overall supervision of the homeland defense 
activities of the Department of Defense.''.
    (b) Transfer to Under Secretary of Defense for Policy of 
Responsibility for Combating Terrorism.--Section 134(b) of such title is 
amended by adding at the end the following new paragraph:
    ``(4) Subject to the authority, direction, and control of the 
Secretary of Defense, the Under Secretary of Defense for Policy shall 
have overall direction and supervision for policy, program planning and 
execution, and allocation and use of resources for the activities of the 
Department of Defense for combating terrorism.''.

[[Page 116 STAT. 2621]]

    (c) Conforming Amendment.--Section 138(b) of such title is amended 
by striking paragraph (6).
    (d) Repeal of Previous Contingent Reduction in Number of Assistant 
Secretaries of Defense.--Subsections (c) and (d) of section 901 of the 
National Defense Authorization Act for Fiscal Year 2002 (Public Law 107-
107; 115 Stat. 1194) <<NOTE: 5 USC 5315; 10 USC 138.>> are repealed.

                      Subtitle B--Space Activities

SEC. 911. OVERSIGHT OF ACQUISITION FOR DEFENSE SPACE PROGRAMS.

    (a) In General.--The Secretary of Defense shall provide for 
oversight of acquisition for defense space programs through appropriate 
organizations of the Office of the Secretary of Defense.
    (b) Report <<NOTE: Deadline.>> on Oversight.--(1) Not later than 
March 15, 2003, the Secretary of Defense shall submit to the 
congressional defense committees a detailed plan on how the Office of 
the Secretary of Defense shall provide oversight of acquisition for 
defense space programs.

    (2) The plan shall set forth the following:
            (A) The organizations in the Office of the Secretary of 
        Defense, and the Joint Staff organizations, to be involved in 
        oversight of acquisition for defense space programs.
            (B) The process for the review of acquisition for defense 
        space programs by the organizations specified under subparagraph 
        (A).
            (C) The process for the provision by such organizations of 
        technical, programmatic, scheduling, and budgetary oversight of 
        acquisition for defense space programs.
            (D) The process for the development of independent cost 
        estimates for acquisition for defense space programs, including 
        the organization responsible for developing such cost estimates 
        and when such cost estimates shall be required.
            (E) The process by which the military departments, Defense 
        Agencies, and organizations in the Office of the Secretary of 
        Defense develop and coordinate the budgets for acquisition for 
        defense space programs.
            (F) The process for the resolution of conflicts among the 
        Department of Defense elements referred to in subparagraphs (A) 
        and (E) regarding acquisition for defense space programs.

    (c) Defense Space Program Defined.--In this section, the term 
``defense space program'' means a program of the Department of Defense 
that--
            (1) is included in the ``virtual major force program'' for 
        space activities that was established by the Secretary of 
        Defense and was to have been submitted with the 2003 fiscal year 
        budget for the Department of Defense; or
            (2) after the date of the enactment of this Act, is included 
        in a virtual major force program for space categories or in a 
        major force program for space activities established after such 
        date.

SEC. 912. REPORT REGARDING ASSURED ACCESS TO SPACE FOR THE UNITED 
            STATES.

    (a) Plan.--The Secretary of Defense shall--

[[Page 116 STAT. 2622]]

            (1) evaluate all options for sustaining the space launch 
        industrial base of the United States; and
            (2) develop an integrated, long-range, and adequately funded 
        plan for assuring access to space by the United States.

    (b) Report.--Not <<NOTE: Deadline.>> later than March 1, 2003, the 
Secretary of Defense shall submit to Congress a report on the plan 
developed under subsection (a)(2).

                           Subtitle C--Reports

SEC. 921. <<NOTE: Deadline.>> REPORT ON ESTABLISHMENT OF UNITED STATES 
            NORTHERN COMMAND.

    Not later than March 1, 2003, the Secretary of Defense shall submit 
to the Committees on Armed Services of the Senate and the House of 
Representatives a report providing an implementation plan for the 
establishment of the United States Northern Command, which is 
established effective October 1, 2002. The report shall address the 
following:
            (1) The required budget for standing-up and maintaining that 
        command over the period of the future-years defense program.
            (2) The rationale for the selection of Peterson Air Force 
        Base, Colorado, as the headquarters of that command, the 
        criteria used in the selection of Peterson Air Force Base, and 
        the alternative locations considered for that headquarters.
            (3) The required military and civilian personnel levels for 
        the headquarters of that command and a specification of the 
        combatant commands and other Department of Defense sources from 
        which such headquarters personnel will be transferred, shown by 
        the number of military and civilian personnel from each such 
        command or other Department of Defense source.
            (4) The organization of the command, a justification of any 
        components of the command, and a review of organizations and 
        units permanently assigned or tasked to the command.
            (5) The relationship of that command (A) to the Office of 
        Homeland Security, the Department of Homeland Security, the 
        Homeland Security Council, and any other Federal coordinating 
        entity, (B) to other Federal departments and agencies, and (C) 
        to State and local law enforcement agencies.
            (6) The relationship of that command with the National Guard 
        Bureau, individual State National Guard Headquarters, and State 
        and local officials the command may be called upon to provide 
        support.
            (7) The legal implications of members of the Armed Forces, 
        including the National Guard in both Federal and State status, 
        operating on United States territory pursuant to missions, 
        operations, or activities of that command.
            (8) The status of Department of Defense consultations--
                    (A) with Canada regarding Canada's role in, or 
                relationship with, and any expansion of mission for, the 
                North American Air Defense Command; and
                    (B) with Mexico regarding Mexico's role in, or 
                relationship with, the United States Northern Command.
            (9) The status of United States consultations with the North 
        Atlantic Treaty Organization relating to the position

[[Page 116 STAT. 2623]]

        of Supreme Allied Commander, Atlantic, and the new chain of 
        command for that position.
            (10) The effect of the creation of the United States 
        Northern Command on the mission, budget, and resource levels of 
        other combatant commands, particularly the United States Joint 
        Forces Command.

SEC. 922. TIME FOR SUBMITTAL OF REPORT ON QUADRENNIAL DEFENSE REVIEW.

    Section 118(d) of title 10, United States Code, is amended by 
striking ``not later than September 30 of the year in which the review 
is conducted'' in the second sentence and inserting ``in the year 
following the year in which the review is conducted, but not later than 
the date on which the President submits the budget for the next fiscal 
year to Congress under section 1105(a) of title 31''.

SEC. 923. NATIONAL DEFENSE MISSION OF COAST GUARD TO BE INCLUDED IN 
            FUTURE QUADRENNIAL DEFENSE REVIEWS.

    Section 118(d) of title 10, United States Code, is amended--
            (1) by redesignating paragraph (14) as paragraph (15); and
            (2) by inserting after paragraph (13) the following new 
        paragraph:
            ``(14) The national defense mission of the Coast Guard.''.

SEC. 924. REPORT ON ESTABLISHMENT OF A JOINT NATIONAL TRAINING COMPLEX 
            AND JOINT OPPOSING FORCES.

    (a) Report Required.--The commander of the United States Joint 
Forces Command shall submit to the Secretary of Defense a report that 
outlines a plan that would provide for the development and 
implementation of a joint national training concept together with the 
establishment of a joint training complex for supporting the 
implementation of that concept. Such a concept and complex--
            (1) may include various training sites, mobile training 
        ranges, public and private modeling and simulation centers, and 
        appropriate joint opposing forces; and
            (2) shall be capable of supporting field exercises and 
        experimentation at the operational level of war across a broad 
        spectrum of adversary capabilities.

    (b) Submission <<NOTE: Deadline.>> of Report.--Not later than six 
months after the date of the enactment of this Act, the Secretary shall 
submit the report under subsection (a), together with any comments that 
the Secretary considers appropriate and any comments that the Chairman 
of the Joint Chiefs of Staff considers appropriate, to the Committee on 
Armed Services of the Senate and the Committee on Armed Services of the 
House of Representatives. The report may be included in the next annual 
report submitted under section 485 of title 10, United States Code, 
after the date of the enactment of this Act or it may be submitted 
separately.

    (c) Matters To Be Included.--The report under subsection (a) shall 
include the following:
            (1) An identification and description of the types of joint 
        training and experimentation that would be conducted at such a 
        joint national training complex, together with a description of 
        how such training and experimentation would enhance 
        accomplishment of the six critical operational goals for the

[[Page 116 STAT. 2624]]

        Department of Defense specified at page 30 of the Quadrennial 
        Defense Review Report of the Secretary of Defense issued on 
        September 30, 2001.
            (2) A discussion of how establishment of such a complex 
        (including joint opposing forces) would promote innovation and 
        transformation throughout the Department of Defense.
            (3) A discussion of how results from training and 
        experiments conducted at such a complex would be taken into 
        consideration in the Department of Defense plans, programs, and 
        budgeting process and by appropriate decision making bodies 
        within the Department of Defense.
            (4) A methodology, framework, and options for selecting 
        sites for such a complex, including consideration of current 
        training facilities that would accommodate requirements among 
        all the Armed Forces.
            (5) Options for development as part of such a complex of a 
        joint urban warfare training center that could also be used for 
        homeland defense and consequence management training for 
        Federal, State, and local training.
            (6) Cost estimates and resource requirements to establish 
        and maintain such a complex, including estimates of costs and 
        resource requirements for the use of contract personnel for the 
        performance of management, operational, and logistics activities 
        for such a complex.
            (7) An explanation of the relationship between and among 
        such a complex and the Department of Defense Office of 
        Transformation, the Joint Staff, the United States Joint Forces 
        Command, the United States Northern Command, and each element of 
        the major commands within the separate Armed Forces with 
        responsibility for experimentation and training.
            (8) A discussion of how implementation of a joint opposing 
        force would be established, including the feasibility of using 
        qualified contractors for the function of establishing and 
        maintaining joint opposing forces and the role of foreign 
        forces.
            (9) A timeline for the establishment of such a complex and 
        for such a complex to achieve (A) initial operational 
        capability, and (B) full operational capability.

                        Subtitle D--Other Matters

SEC. 931. AUTHORITY TO ACCEPT GIFTS FOR NATIONAL DEFENSE UNIVERSITY.

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

``Sec. 2612. National Defense University: acceptance of gifts

    ``(a) The Secretary of Defense may accept, hold, administer, and 
spend any gift, including a gift from an international organization and 
a foreign gift or donation (as defined in section 2611(f) of this 
title), that is made on the condition that it be used in connection with 
the operation or administration of the National Defense University. The 
Secretary may pay all necessary expenses in connection with the 
acceptance of a gift under this subsection.
    ``(b) There is established in the Treasury a fund to be known as the 
`National Defense University Gift Fund'. Gifts of money, and the 
proceeds of the sale of property, received under subsection

[[Page 116 STAT. 2625]]

(a) shall be deposited in the fund. The Secretary may disburse funds 
deposited under this subsection for the benefit or use of the National 
Defense University.
    ``(c) Subsection (c) of section 2601 of this title applies to 
property that is accepted under subsection (a) in the same manner that 
such subsection applies to property that is accepted under subsection 
(a) of that section.
    ``(d)(1) Upon request of the Secretary of Defense, the Secretary of 
the Treasury may--
            ``(A) retain money, securities, and the proceeds of the sale 
        of securities, in the National Defense University Gift Fund; and
            ``(B) invest money and reinvest the proceeds of the sale of 
        securities in that fund in securities of the United States or in 
        securities guaranteed as to principal and interest by the United 
        States.

    ``(2) The interest and profits accruing from those securities shall 
be deposited to the credit of the fund and may be disbursed as provided 
in subsection (b).
    ``(e) In this section:
            ``(1) the term `gift' includes a devise of real property or 
        a bequest of personal property and any gift of an interest in 
        real property.
            ``(2) The term `National Defense University' includes any 
        school or other component of the National Defense University 
        specified under section 2165(b) of this title.

    ``(f) The Secretary of Defense shall prescribe regulations to carry 
out this section.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2612. National Defense University: acceptance of gifts.''.

SEC. 932. WESTERN HEMISPHERE INSTITUTE FOR SECURITY COOPERATION.

    (a) Authority To Accept Foreign Gifts and Donations.--Section 2166 
of title 10, United States Code, is amended--
            (1) by redesignating subsections (f), (g), and (h), as 
        subsections (g), (h), and (i), respectively; and
            (2) by inserting after subsection (e) the following new 
        subsection (f):

    ``(f) Authority To Accept Foreign Gifts and Donations.--(1) The 
Secretary of Defense may, on behalf of the Institute, accept foreign 
gifts or donations in order to defray the costs of, or enhance the 
operation of, the Institute.
    ``(2) Funds received by the Secretary under paragraph (1) shall be 
credited to appropriations available for the Department of Defense for 
the Institute. Funds so credited shall be merged with the appropriations 
to which credited and shall be available for the Institute for the same 
purposes and same period as the appropriations with which merged.
    ``(3) <<NOTE: Notification.>> The Secretary of Defense shall notify 
Congress if the total amount of money accepted under paragraph (1) 
exceeds $1,000,000 in any fiscal year. Any such notice shall list each 
of the contributors of such money and the amount of each contribution in 
such fiscal year.

[[Page 116 STAT. 2626]]

    ``(4) For the purposes of this subsection, a foreign gift or 
donation is a gift or donation of funds, materials (including research 
materials), property, or services (including lecture services and 
faculty services) from a foreign government, a foundation or other 
charitable organization in a foreign country, or an individual in a 
foreign country.''.
    (b) Content of Annual Report to Congress.--Subsection (i) of such 
section, as redesignated by subsection (a)(1), is amended by inserting 
after the first sentence the following: ``The report shall include a 
copy of the latest report of the Board of Visitors received by the 
Secretary under subsection (e)(5), together with any comments of the 
Secretary on the Board's report.''.

SEC. 933. CONFORMING AMENDMENT TO REFLECT DISESTABLISHMENT OF DEPARTMENT 
            OF DEFENSE CONSEQUENCE MANAGEMENT PROGRAM INTEGRATION 
            OFFICE.

    Section 12310(c)(3) of title 10, United States Code, is amended by 
striking ``only--'' and all that follows through ``(B) while assigned'' 
and inserting ``only while assigned''.

SEC. 934. INCREASE IN NUMBER OF DEPUTY COMMANDANTS OF THE MARINE CORPS.

    Section 5045 of title 10, United States Code, is amended by striking 
``five'' and inserting ``six''.

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Authorization of supplemental appropriations for fiscal year 
           2002.
Sec. 1003. United States contribution to NATO common-funded budgets in 
           fiscal year 2003.
Sec. 1004. Development and implementation of financial management 
           enterprise architecture.
Sec. 1005. Accountable officials in the Department of Defense.
Sec. 1006. Uniform standards throughout Department of Defense for 
           exposure of personnel to pecuniary liability for loss of 
           Government property.
Sec. 1007. Improvements in purchase card management.
Sec. 1008. Improvements in travel card management.
Sec. 1009. Clearance of certain transactions recorded in Treasury 
           suspense accounts and resolution of certain check issuance 
           discrepancies.
Sec. 1010. Authorization of funds for ballistic missile defense programs 
           or combating terrorism programs of the Department of Defense.
Sec. 1011. Reduction in overall authorization due to inflation savings.

                 Subtitle B--Naval Vessels and Shipyards

Sec. 1021. Number of Navy combatant surface vessels in active and 
           reserve service.
Sec. 1022. Annual long-range plan for the construction of naval vessels.
Sec. 1023. Assessment of the feasibility of the expedited equipping of a 
           Navy ship with a version of the 155-millimeter Advanced Gun 
           System.
Sec. 1024. Report on initiatives to increase operational days of Navy 
           ships.
Sec. 1025. Ship combat system industrial base.
Sec. 1026. Sense of Congress concerning aircraft carrier force 
           structure.
Sec. 1027. Conveyance, Navy drydock, Portland, Oregon.

                      Subtitle C--Strategic Matters

Sec. 1031. Strategic force structure plan for nuclear weapons and 
           delivery systems.
Sec. 1032. Annual report on weapons to defeat hardened and deeply buried 
           targets.
Sec. 1033. Report on effects of nuclear earth-penetrator weapon and 
           other weapons.

                           Subtitle D--Reports

Sec. 1041. Repeal and modification of various reporting requirements 
           applicable to the Department of Defense.

[[Page 116 STAT. 2627]]

Sec. 1042. Requirement that Department of Defense reports to Congress be 
           accompanied by electronic version.
Sec. 1043. Annual report on the conduct of military operations conducted 
           as part of Operation Enduring Freedom.
Sec. 1044. Report on efforts to ensure adequacy of fire fighting staffs 
           at military installations.
Sec. 1045. Report on designation of certain Louisiana highway as Defense 
           Access Road.

              Subtitle E--Extension of Expiring Authorities

Sec. 1051. Extension of authority for Secretary of Defense to sell 
           aircraft and aircraft parts for use in responding to oil 
           spills.
Sec. 1052. Six-month extension of expiring Governmentwide information 
           security requirements; continued applicability of expiring 
           Governmentwide information security requirements to the 
           Department of Defense.
Sec. 1053. Two-year extension of authority of the Secretary of Defense 
           to engage in commercial activities as security for 
           intelligence collection activities abroad.

                        Subtitle F--Other Matters

Sec. 1061. Time for transmittal of annual defense authorization 
           legislative proposal.
Sec. 1062. Technical and clerical amendments.
Sec. 1063. Use for law enforcement purposes of DNA samples maintained by 
           Department of Defense for identification of human remains.
Sec. 1064. Enhanced authority to obtain foreign language services during 
           periods of emergency.
Sec. 1065. Rewards for assistance in combating terrorism.
Sec. 1066. Provision of space and services to military welfare 
           societies.
Sec. 1067. Prevention and mitigation of corrosion of military equipment 
           and infrastructure.
Sec. 1068. Transfer of historic DF-9E Panther aircraft to Women Airforce 
           Service Pilots Museum.
Sec. 1069. Increase in amount authorized to be expended for Department 
           of Defense program to commemorate 50th anniversary of the 
           Korean War.

                      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 
2003 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 paragraph (1) may not exceed 
$2,000,000,000.
    (b) Limitations.--The authority provided by subsection (a) 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 subsection (a) 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).

[[Page 116 STAT. 2628]]

    (e) Increase in Amount of Transfer Authority Authorized for FY02.--
Section 1001 of the National Defense Authorization Act for Fiscal Year 
2002 (Public Law 107-107; 115 Stat. 1201) is amended by striking 
``$2,000,000,000'' and inserting ``$2,500,000,000''.

SEC. 1002. AUTHORIZATION OF SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 
            2002.

    (a) DOD Authorizations.--Amounts authorized to be appropriated to 
the Department of Defense for fiscal year 2002 in the National Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107-107) are hereby 
adjusted, with respect to any such authorized amount, by the amount by 
which appropriations pursuant to such authorization are increased (by a 
supplemental appropriation) or decreased (by a rescission), or both, or 
are increased by a transfer of funds, pursuant to chapter 3 or chapter 
10 of title I of Public Law 107-206 (116 Stat. 835, 878).
    (b) NNSA Authorizations.--Amounts authorized to be appropriated to 
the Department of Energy for fiscal year 2002 in the National Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107-107) are hereby 
adjusted, with respect to any such authorized amount, by the amount by 
which appropriations pursuant to such authorization are increased (by a 
supplemental appropriation) or decreased (by a rescission), or both, or 
are increased by a transfer of funds, pursuant to chapter 5 of title I 
of Public Law 107-206 (116 Stat. 848).
    (c) Report <<NOTE: Deadline.>> on Fiscal Year 2002 Transfers.--Not 
later than January 15, 2003, the Secretary of Defense shall submit to 
the congressional defense committees a report stating, for each transfer 
during fiscal year 2002 of an amount provided for the Department of 
Defense for that fiscal year through a so-called ``transfer account'', 
including the Defense Emergency Response Fund or any other similar 
account, the amount of the transfer, the appropriation account to which 
the transfer was made, and the specific purpose for which the 
transferred funds were used.

SEC. 1003. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED BUDGETS IN 
            FISCAL YEAR 2003.

    (a) Fiscal Year 2003 Limitation.--The total amount contributed by 
the Secretary of Defense in fiscal year 2003 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 2002, of funds appropriated for fiscal years before 
        fiscal year 2003 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), $750,000 for 
        the Civil Budget.

[[Page 116 STAT. 2629]]

            (2) Of the amount provided in section 301(1), $205,623,000 
        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. 1004. <<NOTE: 10 USC 113 note.>> DEVELOPMENT AND IMPLEMENTATION OF 
            FINANCIAL MANAGEMENT ENTERPRISE ARCHITECTURE.

    (a) Requirement for Enterprise Architecture and for Transition 
Plan.--Not <<NOTE: Deadline.>> later than May 1, 2003, the Secretary of 
Defense shall develop--
            (1) a financial management enterprise architecture for all 
        budgetary, accounting, finance, enterprise resource planning, 
        and mixed information systems of the Department of Defense; and
            (2) a transition plan for implementing that financial 
        management enterprise architecture.

    (b) Composition of Enterprise Architecture.--(1) The financial 
management enterprise architecture developed under subsection (a)(1) 
shall describe 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) That enterprise architecture shall also include policies, 
procedures, data standards, and system interface requirements that are 
to apply uniformly throughout the Department of Defense.
    (c) Composition of Transition Plan.--The transition plan developed 
under subsection (a)(2) shall include the following:
            (1) The acquisition strategy for the enterprise 
        architecture, including specific time-phased milestones, 
        performance metrics, and financial and nonfinancial resource 
        needs.
            (2) A listing of the mission critical or mission essential 
        operational and developmental financial and nonfinancial 
        management systems of the Department of Defense, as defined by 
        the Under Secretary of Defense (Comptroller), consistent with 
        budget justification documentation, together with--

[[Page 116 STAT. 2630]]

                    (A) the costs to operate and maintain each of those 
                systems during fiscal year 2002; and
                    (B) the estimated cost to operate and maintain each 
                of those systems during fiscal year 2003.
            (3) A listing of the operational and developmental financial 
        management systems of the Department of Defense as of the date 
        of the enactment of this Act (known as ``legacy systems'') that 
        will not be part of the objective financial and nonfinancial 
        management system, together with the schedule for terminating 
        those legacy systems that provides for reducing the use of those 
        legacy systems in phases.

    (d) Conditions for Obligation of Significant Amounts for Financial 
System Improvements.--An amount in excess of $1,000,000 may be obligated 
for a defense financial system improvement only if the Under Secretary 
of Defense (Comptroller) makes a determination regarding that 
improvement as follows:
            (1) Before the date of an approval specified in paragraph 
        (2), a determination that the defense financial system 
        improvement is necessary for either of the following reasons:
                    (A) To achieve a critical national security 
                capability or address a critical requirement in an area 
                such as safety or security.
                    (B) To prevent a significant adverse effect (in 
                terms of a technical matter, cost, or schedule) on a 
                project that is needed to achieve an essential 
                capability, taking into consideration in the 
                determination the alternative solutions for preventing 
                the adverse effect.
            (2) On and after the date of any approval by the Secretary 
        of Defense of a financial management enterprise architecture and 
        a transition plan that satisfy the requirements of this section, 
        a determination that the defense financial system improvement is 
        consistent with both the enterprise architecture and the 
        transition plan.

    (e) Congressional Reports.--Not <<NOTE: Deadline.>> later than March 
15 of each year from 2004 through 2007, the Secretary of Defense shall 
submit to the congressional defense committees a report on the progress 
of the Department of Defense in implementing the enterprise architecture 
and transition plan required by this section. Each report shall include, 
at a minimum--
            (1) a description of the actions taken during the preceding 
        fiscal year to implement the enterprise architecture and 
        transition plan (together with the estimated costs of such 
        actions);
            (2) an explanation of any action planned in the enterprise 
        architecture and transition plan to be taken during the 
        preceding fiscal year that was not taken during that fiscal 
        year;
            (3) a description of the actions taken and planned to be 
        taken during the current fiscal year to implement the enterprise 
        architecture and transition plan (together with the estimated 
        costs of such actions); and
            (4) a description of the actions taken and planned to be 
        taken during the next fiscal year to implement the enterprise 
        architecture and transition plan (together with the estimated 
        costs of such actions).

    (f) Comptroller <<NOTE: Deadlines.>> General Review.--Not later than 
60 days after the approval of an enterprise architecture and transition 
plan in accordance with the requirements of subsection (a), and not 
later than 60 days after the submission of an annual report required 


[[Page 116 STAT. 2631]]

by subsection (e), 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 this 
section.
    (g) Definitions.--In this section:
            (1) The term ``defense financial system improvement'' means 
        the acquisition of a new budgetary, accounting, finance, 
        enterprise resource planning, or mixed information system for 
        the Department of Defense or a modification of an existing 
        budgetary, accounting, finance, enterprise resource planning, or 
        mixed information system of the Department of Defense. Such term 
        does not include routine maintenance and operation of any such 
        system.
            (2) The term ``mixed information system'' means an 
        information system that supports financial and non-financial 
        functions of the Federal Government as defined in Office of 
        Management and Budget Circular A-127 (Financial management 
        Systems).

    (h) Repeal.--(1) Section 2222 of title 10, United States Code, is 
repealed. The table of sections at the beginning of chapter 131 of such 
title is amended by striking the item relating to such section.
    (2) Section 185(d) of such title is amended by striking ``has the 
meaning given that term in section 2222(c)(2) of this title'' and 
inserting ``means an automated or manual system from which information 
is derived for a financial management system or an accounting system''.

SEC. 1005. ACCOUNTABLE OFFICIALS IN THE DEPARTMENT OF DEFENSE.

    (a) Accountable Officials Within the Department of Defense.--Chapter 
165 of title 10, United States Code, is amended by inserting after 
section 2773 the following new section:

``Sec. 2773a. Departmental accountable officials

    ``(a) Designation by Secretary of Defense.--The Secretary of Defense 
may designate any civilian employee of the Department of Defense or 
member of the armed forces under the Secretary's jurisdiction who is 
described in subsection (b) as an employee or member who, in addition to 
any other potential accountability, may be held accountable through 
personal monetary liability for an illegal, improper, or incorrect 
payment made the Department of Defense described in subsection (c). Any 
such designation shall be in writing. Any employee or member who is so 
designated may be referred to as a `departmental accountable official'.
    ``(b) Covered Employees and Members.--An employee or member of the 
armed forces described in this subsection is an employee or member who--
            ``(1) is responsible in the performance of the employee's or 
        member's duties for providing to a certifying official of the 
        Department of Defense information, data, or services that are 
        directly relied upon by the certifying official in the 
        certification of vouchers for payment; and
            ``(2) is not otherwise accountable under subtitle III of 
        title 31 or any other provision of law for payments made on the 
        basis of such vouchers.

[[Page 116 STAT. 2632]]

    ``(c) Pecuniary Liability.--(1) The Secretary of Defense may subject 
a departmental accountable official to pecuniary liability for an 
illegal, improper, or incorrect payment made by the Department of 
Defense if the Secretary determines that such payment--
            ``(A) resulted from information, data, or services that that 
        official provided to a certifying official and upon which that 
        certifying official directly relies in certifying the voucher 
        supporting that payment; and
            ``(B) was the result of fault or negligence on the part of 
        that departmental accountable official.

    ``(2) Pecuniary liability under this subsection shall apply in the 
same manner and to the same extent as applies to an official accountable 
under subtitle III of title 31.
    ``(3) Any pecuniary liability of a departmental accountable official 
under this subsection for a loss to the United States resulting from an 
illegal, improper, or incorrect payment is joint and several with that 
of any other officer or employee of the United States or member of the 
uniformed services who is pecuniarily liable for such loss.
    ``(d) Certifying Official Defined.--In this section, the term 
`certifying official' means an employee who has the responsibilities 
specified in section 3528(a) of title 31.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2773 the following new item:

``2773a. Departmental accountable officials.''.

SEC. 1006. UNIFORM STANDARDS THROUGHOUT DEPARTMENT OF DEFENSE FOR 
            EXPOSURE OF PERSONNEL TO PECUNIARY LIABILITY FOR LOSS OF 
            GOVERNMENT PROPERTY.

    (a) Extension of Army and Air Force Report-of-Survey Procedures to 
Navy and Marine Corps and all DOD Civilian Employees.--(1) Chapter 165 
of title 10, United States Code, is amended by adding at the end the 
following new section:

``Sec. 2787. Reports of survey

    ``(a) Action on Reports of Survey.--Under regulations prescribed 
pursuant to subsection (c), any officer of the Army, Navy, Air Force, or 
Marine Corps or any civilian employee of the Department of Defense 
designated in accordance with those regulations may act upon reports of 
surveys and vouchers pertaining to the loss, spoilage, unserviceability, 
unsuitability, or destruction of, or damage to, property of the United 
States under the control of the Department of Defense.
    ``(b) Finality of Action.--(1) Action taken under subsection (a) is 
final except as provided in paragraph (2).
    ``(2) An action holding a person pecuniarily liable for loss, 
spoilage, destruction, or damage is not final until approved by a person 
designated to do so by the Secretary of a military department, commander 
of a combatant command, or Director of a Defense Agency, as the case may 
be, who has jurisdiction of the person held pecuniarily liable. The 
person designated to provide final approval shall be an officer of an 
armed force, or a civilian employee, under the jurisdiction of the 
official making the designation.
    ``(c) Regulations.--The Secretary of Defense shall prescribe 
regulations to carry out this section.''.

[[Page 116 STAT. 2633]]

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

``2787. Reports of survey.''.

    (b) Extension to Members of Navy and Marine Corps of Pay Deduction 
Authority Pertaining to Damage or Repair of Arms and Equipment.--Section 
1007(e) of title 37, United States Code, is amended by striking ``Army 
or the Air Force'' and inserting ``Army, Navy, Air Force, or Marine 
Corps''.
    (c) Repeal of Superseded Provisions.--(1) Sections 4835 and 9835 of 
title 10, United States Code, are repealed.
    (2) The tables of sections at the beginning of chapters 453 and 953 
of such title are amended by striking the items relating to sections 
4835 and 9835, respectively.
    (d) Effective <<NOTE: 10 USC 2787 note.>> Date.--The amendments made 
by this section shall apply with respect to the loss, spoilage, 
unserviceability, unsuitability, or destruction of, or damage to, 
property of the United States under the control of the Department of 
Defense occurring on or after the effective date of regulations 
prescribed pursuant to section 2787 of title 10, United States Code, as 
added by subsection (a).

SEC. 1007. IMPROVEMENTS IN PURCHASE CARD MANAGEMENT.

    (a) Purchase Card Management Improvements.--Section 2784 of title 
10, United States Code, is amended--
            (1) in subsection (a), by striking ``, acting through the 
        Under Secretary of Defense (Comptroller),''; and
            (2) by adding at the end of subsection (b) the following:
            ``(7) That periodic reviews are performed to determine 
        whether each purchase card holder has a need for the purchase 
        card.
            ``(8) That the Inspector General of the Department of 
        Defense, the Inspector General of the Army, the Naval Inspector 
        General, and the Inspector General of the Air Force perform 
        periodic audits to identify--
                    ``(A) potentially fraudulent, improper, and abusive 
                uses of purchase cards;
                    ``(B) any patterns of improper card holder 
                transactions, such as purchases of prohibited items; and
                    ``(C) categories of purchases that should be made by 
                means other than purchase cards in order to better 
                aggregate purchases and obtain lower prices.
            ``(9) That appropriate training is provided to each purchase 
        card holder and each official with responsibility for overseeing 
        the use of purchase cards issued by the Department of Defense.
            ``(10) That the Department of Defense has specific policies 
        regarding the number of purchase cards issued by various 
        organizations and categories of organizations, the credit limits 
        authorized for various categories of card holders, and 
        categories of employees eligible to be issued purchase cards, 
        and that those policies are designed to minimize the financial 
        risk to the Federal Government of the issuance of the purchase 
        cards and to ensure the integrity of purchase card holders.

    ``(c) Penalties for Violations.--The regulations prescribed under 
subsection (a) shall--
            ``(1) provide for appropriate adverse personnel actions or 
        other punishment to be imposed in cases in which employees

[[Page 116 STAT. 2634]]

        of the Department of Defense violate such regulations or are 
        negligent or engage in misuse, abuse, or fraud with respect to a 
        purchase card, including removal in appropriate cases; and
            ``(2) provide that a violation of such regulations by a 
        person subject to chapter 47 of this title (the Uniform Code of 
        Military Justice) is punishable as a violation of section 892 of 
        this title (article 92 of the Uniform Code of Military 
        Justice).''.

    (b) Conforming and Clerical Amendments.--(1) Section 2784 of such 
title is further amended--
            (A) in the section heading, by striking ``credit'' and 
        inserting ``purchase'';
            (B) in the heading of subsection (a), by striking ``Credit'' 
        and inserting ``Purchase''; and
            (C) in subsection (a) and paragraphs (1) through (6) of 
        subsection (b), by striking ``credit'' and inserting 
        ``purchase'' each place it appears.

    (2) The table of sections at the beginning of chapter 165 of such 
title is amended by striking the item relating to section 2784 and 
inserting the following:

``2784. Management of purchase cards.''.

SEC. 1008. IMPROVEMENTS IN TRAVEL CARD MANAGEMENT.

    (a) Travel Card Management Improvements.--Chapter 165 of title 10, 
United States Code, is amended by inserting after section 2784 the 
following new section:

``Sec. 2784a. Management of travel cards

    ``(a) Disbursement of Travel Allowances Directly to Creditors.--(1) 
The Secretary of Defense may require that any part of a travel or 
transportation allowance of an employee of the Department of Defense or 
a member of the armed forces be disbursed directly to the issuer of a 
Defense travel card if the amount is disbursed to the issuer in payment 
of amounts of expenses of official travel that are charged by the 
employee or member on the Defense travel card.
    ``(2) For the purposes of this subsection, the travel and 
transportation allowances referred to in paragraph (1) are amounts to 
which an employee of the Department of Defense is entitled under section 
5702 of title 5 or a member of the armed forces is entitled under 
section 404 of title 37.
    ``(b) Offsets for Delinquent Travel Card Charges.--(1) The Secretary 
of Defense may require that there be deducted and withheld from any 
basic pay payable to an employee of the Department of Defense or a 
member of the armed forces any amount that is owed by the employee or 
member to a creditor by reason of one or more charges of expenses of 
official travel of the employee or member on a Defense travel card 
issued by the creditor if the employee or member--
            ``(A) is delinquent in the payment of such amount under the 
        terms of the contract under which the card is issued; and
            ``(B) does not dispute the amount of the delinquency.

    ``(2) The amount deducted and withheld from pay under paragraph (1) 
with respect to a debt owed a creditor as described in that paragraph 
shall be disbursed to the creditor to reduce the amount of the debt.

[[Page 116 STAT. 2635]]

    ``(3) The amount of pay deducted and withheld from the pay owed to 
an employee or member with respect to a pay period under paragraph (1) 
may not exceed 15 percent of the disposable pay of the employee or 
member for that pay period, except that a higher amount may be deducted 
and withheld with the written consent of the employee or member.
    ``(4) The Secretary of Defense shall prescribe procedures for 
deducting and withholding amounts from pay under this subsection. The 
procedures shall be substantially equivalent to the procedures under 
section 3716 of title 31.
    ``(c) Offsets of Retired Pay.--In the case of a former employee of 
the Department of Defense or a retired member of the armed forces who is 
receiving retired pay and who owes an amount to a creditor by reason of 
one or more charges on a Defense travel card that were made before the 
retirement of the employee or member, the Secretary may require amounts 
to be deducted and withheld from any retired pay of the former employee 
or retired member in the same manner and subject to the same conditions 
as the Secretary deducts and withholds amounts from basic pay payable to 
an employee or member under subsection (b).
    ``(d) Definitions.--In this section:
            ``(1) The term `Defense travel card' means a charge or 
        credit card that--
                    ``(A) is issued to an employee of the Department of 
                Defense or a member of the armed forces under a contract 
                entered into by the Department of Defense with the 
                issuer of the card; and
                    ``(B) is to be used for charging expenses incurred 
                by the employee or member in connection with official 
                travel.
            ``(2) The term `disposable pay', with respect to a pay 
        period, means the amount equal to the excess of the amount of 
        basic pay or retired pay, as the case may be, payable for the 
        pay period over the total of the amounts deducted and withheld 
        from such pay.
            ``(3) The term `retired pay' means--
                    ``(A) in the case of a former employee of the 
                Department of Defense, any retirement benefit payable to 
                that individual, out of the Civil Service Retirement and 
                Disability Fund, based (in whole or in part) on service 
                performed by such individual as a civilian employee of 
                the Department of Defense; and
                    ``(B) in the case of a retired member of the armed 
                forces or member of the Fleet Reserve or Fleet Marine 
                Corps Reserve, retired or retainer pay to which the 
                member is entitled.

    ``(e) Exclusion of Coast Guard.--This section does not apply to the 
Coast Guard.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 165 of such title is amended by inserting after the item 
relating to section 2784 the following new item:

``2784a. Management of travel cards.''.

SEC. 1009. CLEARANCE OF CERTAIN TRANSACTIONS RECORDED IN TREASURY 
            SUSPENSE ACCOUNTS AND RESOLUTION OF CERTAIN CHECK ISSUANCE 
            DISCREPANCIES.

    (a) Clearance of Certain Suspense Accounts.--(1) In the case of any 
transaction that was entered into by or on behalf

[[Page 116 STAT. 2636]]

of the Department of Defense before March 1, 2001, that is recorded in 
the Department of Treasury Budget Clearing Account (Suspense) designated 
as account F3875, the Unavailable Check Cancellations and Overpayments 
Account (Suspense) designated as account F3880, or an Undistributed 
Intergovernmental Payments account designated as account F3885, and for 
which no appropriation for the Department of Defense has been 
identified--
            (A) any undistributed collection credited to such account in 
        such case shall be deposited to the miscellaneous receipts of 
        the Treasury; and
            (B) subject to paragraph (2), any undistributed disbursement 
        recorded in such account in such case shall be canceled.

    (2) An undistributed disbursement may not be canceled under 
paragraph (1)(B) until the Secretary of Defense has made a written 
determination that the appropriate official or officials of the 
Department of Defense have attempted without success to locate the 
documentation necessary to identify which appropriation should be 
charged with such disbursement and that further efforts to do so are not 
in the best interests of the United States.
    (b) Resolution of Check Issuance Discrepancies.--(1) In the case of 
any check drawn on the Treasury that was issued by or on behalf of the 
Department of Defense before October 31, 1998, for which the Secretary 
of the Treasury has reported to the Department of Defense a discrepancy 
between the amount paid and the amount of the check as transmitted to 
the Department of Treasury, and for which no specific appropriation for 
the Department of Defense can be identified as being associated with the 
check, the discrepancy shall be canceled, subject to paragraph (2).
    (2) A discrepancy may not be canceled under paragraph (1) until the 
Secretary of Defense has made a written determination that the 
appropriate official or officials of the Department of Defense have 
attempted without success to locate the documentation necessary to 
identify which appropriation should be charged with the amount of the 
check and that further efforts to do so are not in the best interests of 
the United States.
    (c) Consultation.--The Secretary of Defense shall consult the 
Secretary of the Treasury in the exercise of the authority granted by 
subsections (a) and (b).
    (d) Duration of Cancellation Authority Following Determination.--(1) 
A particular undistributed disbursement may not be canceled under 
paragraph (1)(B) of subsection (a) more than 30 days after the date of 
the written determination made by the Secretary of Defense under 
paragraph (2) of such subsection regarding that undistributed 
disbursement.
    (2) A particular discrepancy may not be canceled under paragraph (1) 
of subsection (b) more than 30 days after the date of the written 
determination made by the Secretary of Defense under paragraph (2) of 
such subsection regarding that discrepancy.
    (e) Program Termination.--No authority may be exercised under this 
section after the date that is two years after the date of the enactment 
of this Act.

[[Page 116 STAT. 2637]]

SEC. 1010. AUTHORIZATION OF FUNDS FOR BALLISTIC MISSILE DEFENSE PROGRAMS 
            OR COMBATING TERRORISM PROGRAMS OF THE DEPARTMENT OF 
            DEFENSE.

    (a) Authorization.--There is hereby authorized to be appropriated 
for fiscal year 2003 for the military functions of the Department of 
Defense, in addition to amounts authorized to be appropriated in titles 
I, II, and III, the amount of $814,300,000, to be available, in 
accordance with subsection (b), for the following purposes:
            (1) Research, development, test, and evaluation for 
        ballistic missile defense programs of the Missile Defense Agency 
        of the Department of Defense.
            (2) Activities of the Department of Defense for combating 
        terrorism at home and abroad.

    (b) Allocation by President.--(1) The amount authorized to be 
appropriated by subsection (a) shall be allocated between the purposes 
stated in paragraphs (1) and (2) of that subsection in such manner as 
may be determined by the President based upon the national security 
interests of the United States. The amount authorized in subsection (a) 
shall not be available for any other purpose.
    (2) Upon an allocation of such amount by the President, the amount 
so allocated shall be transferred to the appropriate regular 
authorization account under this division in the same manner as provided 
in section 1001. Transfers under this paragraph shall not be counted for 
the purposes of section 1001(a)(2).
    (3) <<NOTE: Deadline. Reports.>> Not later than 15 days after an 
allocation is made under this subsection, the Secretary of Defense shall 
submit to the congressional defense committees a report describing the 
President's allocation, the basis for the President's determination in 
making such allocation, and the Secretary's plan for the use by the 
Department of Defense of the funds made available pursuant to such 
allocation.

SEC. 1011. REDUCTION IN OVERALL AUTHORIZATION DUE TO INFLATION SAVINGS.

    (a) Reduction.--The total amount authorized to be appropriated by 
titles I, II, and III is the amount equal to the sum of the individual 
authorizations in those titles reduced by $1,000,000,000.
    (b) Source of Savings.--Reductions required in order to comply with 
subsection (a) shall be derived from savings resulting from lower-than-
expected inflation as a result of the midsession review of the budget 
conducted by the Office of Management and Budget.
    (c) Allocation of Reduction.--The Secretary of Defense shall 
allocate the reduction required by subsection (a) among the accounts in 
titles I, II, and III to reflect the extent to which net inflation 
savings are available in those accounts.

                 Subtitle B--Naval Vessels and Shipyards

SEC. 1021. NUMBER OF NAVY COMBATANT SURFACE VESSELS IN ACTIVE AND 
            RESERVE SERVICE.

    (a) Contingent <<NOTE: Deadline.>> Requirement for Report.--(1) If, 
on the date of the enactment of this Act, the number of combatant 
surface 


[[Page 116 STAT. 2638]]

vessels of the Navy is less than 116, the Secretary of the Navy shall, 
not later than 90 days after such date, submit to the Committees on 
Armed Services of the Senate and the House of Representatives a report 
on the size of the force of combatant surface vessels of the Navy. The 
report shall include a risk assessment for a force of combatant surface 
vessels in the number as of the date of the enactment of this Act that 
is based on the same assumptions as were applied in the QDR 2001 
combatant surface force risk assessment.
    (2) The definitions in subsection (c) of section 7296 of title 10, 
United States Code, as added by subsection (b), apply to this 
subsection.
    (b) Number of Combatant Surface Vessels.--(1) Chapter 633 of title 
10, United States Code, is amended by inserting after section 7295 the 
following new section:

``Sec. 7296. Combatant surface vessels: notice before reduction in 
                        number; preservation of surge capability

    ``(a) Notice-and-Wait Before Reductions.--(1) A reduction described 
in paragraph (2) in the number of combatant surface vessels may only be 
carried out after--
            ``(A) the Secretary of the Navy submits to the Committee on 
        Armed Services of the Senate and the Committee on Armed Services 
        of the House of Representatives a written notification of the 
        proposed reduction; and
            ``(B) a period of 90 days has expired after the date on 
        which such notification is received.

    ``(2) A reduction described in this paragraph in the number of 
combatant surface vessels is a reduction--
            ``(A) from 116, or a number greater than 116, to a number 
        less than 116; or
            ``(B) from a number less than 116 to a lesser number.

    ``(3) Any notification under paragraph (1)(A) shall include the 
following:
            ``(A) The schedule for the proposed reduction.
            ``(B) The number of vessels that are to comprise the force 
        of combatant surface vessels after the reduction.
            ``(C) A risk assessment for a force of combatant surface 
        vessels of the number specified under subparagraph (B) that is 
        based on the same assumptions as were applied in the QDR 2001 
        combatant surface force risk assessment.

    ``(b) Preservation of Surge Capability.--Whenever the number of 
combatant surface vessels is less than 116, the Secretary of the Navy 
shall maintain on the Naval Vessel Register a sufficient number of 
combatant surface vessels to enable the Navy to regain a force of 
combatant surface vessels numbering not less than 116 within 120 days 
after the date of any decision by the President to increase the number 
of combatant surface vessels.
    ``(c) Definitions.--In this section:
            ``(1) The term `combatant surface vessels' means cruisers, 
        destroyers, and frigates that are in active service in the Navy 
        or in active reserve service in the Navy.
            ``(2) The term `QDR 2001 combatant surface force risk 
        assessment' means the risk assessment associated with a force of 
        combatant surface vessels numbering 116 that is set forth in the 
        report on the quadrennial defense review submitted

[[Page 116 STAT. 2639]]

        to Congress on September 30, 2001, under section 118 of this 
        title.''.

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 7295 the 
following new item:

``7296. Combatant surface vessels: notice before reduction in number; 
           preservation of surge capability.''.

    (c) Effective <<NOTE: 10 USC 7296 note.>> Date for 90-Day Waiting 
Period.--The provisions of subparagraph (B) of subsection (a)(1) of 
section 7296 of title 10, United States Code, as added by subsection 
(b)(1) of this section, shall apply only with respect to notifications 
submitted under subparagraph (A) of that subsection on or after January 
15, 2003.

SEC. 1022. ANNUAL LONG-RANGE PLAN FOR THE CONSTRUCTION OF NAVAL VESSELS.

    (a) Annual Naval Vessel Construction Plan.--(1) Chapter 9 of title 
10, United States Code, is amended by adding at the end the following 
new section:

``Sec. 231. Budgeting for construction of naval vessels: annual plan and 
                        certification

    ``(a) Annual Naval Vessel Construction Plan and Certification.--The 
Secretary of Defense shall include with the defense budget materials for 
a fiscal year--
            ``(1) a plan for the construction of combatant and support 
        vessels for the Navy developed in accordance with this section; 
        and
            ``(2) a certification by the Secretary that both the budget 
        for that fiscal year and the future-years defense program 
        submitted to Congress in relation to such budget under section 
        221 of this title provide for funding of the construction of 
        naval vessels at a level that is sufficient for the procurement 
        of the vessels provided for in the plan under paragraph (1) on 
        the schedule provided in that plan.

    ``(b) Annual Naval Vessel Construction Plan.--(1) The annual naval 
vessel construction plan developed for a fiscal year for purposes of 
subsection (a)(1) should be designed so that the naval vessel force 
provided for under that plan is capable of supporting the national 
security strategy of the United States as set forth in the most recent 
national security strategy report of the President under section 108 of 
the National Security Act of 1947 (50 U.S.C. 404a), except that, if at 
the time such plan is submitted with the defense budget materials for 
that fiscal year, a national security strategy report required under 
such section 108 has not been submitted to Congress as required by 
paragraph (2) or paragraph (3), if applicable, of subsection (a) of such 
section, then such annual plan should be designed so that the naval 
vessel force provided for under that plan is capable of supporting the 
ship force structure recommended in the report of the most recent 
Quadrennial Defense Review.
    ``(2) Each such naval vessel construction plan shall include the 
following:
            ``(A) A detailed program for the construction of combatant 
        and support vessels for the Navy over the next 30 fiscal years.

[[Page 116 STAT. 2640]]

            ``(B) A description of the necessary naval vessel force 
        structure to meet the requirements of the national security 
        strategy of the United States or the most recent Quadrennial 
        Defense Review, whichever is applicable under paragraph (1).
            ``(C) The estimated levels of annual funding necessary to 
        carry out the program, together with a discussion of the 
        procurement strategies on which such estimated levels of annual 
        funding are based.

    ``(c) Assessment When Vessel Construction Budget is Insufficient To 
Meet Applicable Requirements.--If the budget for a fiscal year provides 
for funding of the construction of naval vessels at a level that is not 
sufficient to sustain the naval vessel force structure specified in the 
naval vessel construction plan for that fiscal year under subsection 
(a), the Secretary shall include with the defense budget materials for 
that fiscal year an assessment that describes and discusses the risks 
associated with the reduced force structure of naval vessels that will 
result from funding naval vessel construction at such level. Such 
assessment shall be coordinated in advance with the commanders of the 
combatant commands.
    ``(d) Definitions.--In this section:
            ``(1) The term `budget', with respect to a fiscal year, 
        means the budget for that fiscal year that is submitted to 
        Congress by the President under section 1105(a) of title 31.
            ``(2) The term `defense budget materials', with respect to a 
        fiscal year, means the materials submitted to Congress by the 
        Secretary of Defense in support of the budget for that fiscal 
        year.
            ``(3) The term `Quadrennial Defense Review' means the review 
        of the defense programs and policies of the United States that 
        is carried out every four years under section 118 of this 
        title.''.

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

``231. Budgeting for construction of naval vessels: annual plan and 
           certification.''.

SEC. 1023. ASSESSMENT OF THE FEASIBILITY OF THE EXPEDITED EQUIPPING OF A 
            NAVY SHIP WITH A VERSION OF THE 155-MILLIMETER ADVANCED GUN 
            SYSTEM.

    (a) Feasibility Assessment Required.--(1) The Secretary of the Navy 
shall conduct an assessment of the feasibility of the expedited 
equipping of a Navy ship in active or inactive service with a version of 
the 155-millimeter Advanced Gun System that is being developed for the 
DD(X) next generation, multi-mission, land attack surface combatant 
vessel.
    (2) The assessment shall include an analysis of--
            (A) the actions required to achieve such equipping and the 
        technical and programmatic risks associated with those actions;
            (B) the plan, schedule, and funding required to achieve such 
        equipping; and
            (C) the effect (if any) that such equipping might have on 
        the development program and schedule for the DD(X) vessel.

    (b) Equipping on Expedited Schedule.--The schedule to be considered 
in the assessment under subsection (a) shall provide for equipping of a 
ship with a version of the 155-millimeter Advanced Gun System on an 
expedited schedule that is consistent

[[Page 116 STAT. 2641]]

with the achievement of safety of operation, but not later than October 
1, 2006.
    (c) Report Required.--The Secretary shall submit to the 
congressional defense committees a report on the results of the 
assessment under subsection (a). The report shall be submitted at the 
same time that the President submits the budget for fiscal year 2004 to 
Congress under section 1105(a) of title 31, United States Code.

SEC. 1024. REPORT ON INITIATIVES TO INCREASE OPERATIONAL DAYS OF NAVY 
            SHIPS.

    (a) Requirement for Report on Initiatives.--(1) The Under Secretary 
of Defense for Acquisition, Technology, and Logistics 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 Department of 
Defense initiatives to increase the number of operational days of Navy 
ships as described in subsection (b).
    (2) The report shall cover the ongoing Department of Defense 
initiatives as well as any potential initiatives that are under 
consideration within the Department of Defense.
    (b) Initiatives Within Limits of Existing Fleet and Deployment 
Policy.--In the report, the Under Secretary shall assess the feasibility 
and identify the projected effects of conducting initiatives that have 
the potential to increase the number of operational days of Navy ships 
available to the commanders-in-chief of the regional unified combatant 
commands without increasing the number of Navy ships and without 
increasing the routine lengths of deployments of Navy ships above six 
months.
    (c) Required Focus Areas.--The report shall address, at a minimum, 
the following focus areas:
            (1) Assignment of additional ships, including submarines, to 
        home ports closer to the areas of operation for the ships (known 
        as ``forward homeporting'').
            (2) Assignment of ships to remain in a forward area of 
        operations, together with rotation of crews for each ship so 
        assigned.
            (3) Retention of ships for use until the end of the full 
        service life, together with investment of the funds necessary to 
        support retention to that extent.
            (4) Prepositioning of additional ships with, under normal 
        circumstances, small crews in a forward area of operations.

    (d) Ship Maintenance.--The report shall include an assessment of how 
routine programmed ship maintenance would be accomplished for Navy ships 
that would remain in a forward area of operations.
    (e) Time for Submittal.--The report shall be submitted at the same 
time that the President submits the budget for fiscal year 2004 to 
Congress under section 1105(a) of title 31, United States Code.

SEC. 1025. SHIP COMBAT SYSTEM INDUSTRIAL BASE.

    (a) Review.--The Secretary of Defense shall conduct a review of the 
effect of the contract award announced on April 29, 2002, for the lead 
design agent for the DD(X) ship program on the industrial base for ship 
combat system development, including the industrial base for each of the 
following: ship systems integration, radar, electronic warfare, and 
launch systems.

[[Page 116 STAT. 2642]]

    (b) Report <<NOTE: Deadline.>> Required.--Not later than March 31, 
2003, the Secretary shall submit to the congressional defense committees 
a report based on the review under subsection (a). The report shall 
include the following:
            (1) The Secretary's assessment of the effect of the contract 
        award referred to in that subsection on ship combat system 
        development and on the associated industrial base.
            (2) A description of any actions that the Secretary proposes 
        to ensure future competition in the ship combat system 
        development and industrial base.

SEC. 1026. SENSE OF CONGRESS CONCERNING AIRCRAFT CARRIER FORCE 
            STRUCTURE.

    (a) Findings.--Congress makes the following findings:
            (1) The aircraft carrier has been an integral component in 
        Operation Enduring Freedom and in the homeland defense mission 
        of Operation Noble Eagle beginning on September 11, 2001. The 
        aircraft carriers that have participated in Operation Enduring 
        Freedom, as of May 1, 2002, are the USS Enterprise (CVN-65), the 
        USS Carl Vinson (CVN-70), the USS Kitty Hawk (CV-63), the USS 
        Theodore Roosevelt (CVN-71), the USS John C. Stennis (CVN-74), 
        and the USS John F. Kennedy (CV-67). The aircraft carriers that 
        have participated in Operation Noble Eagle, as of May 1, 2002, 
        are the USS George Washington (CVN-73), the USS John F. Kennedy 
        (CV-67), and the USS John C. Stennis (CVN-74).
            (2) Since 1945, the United States has built 172 bases 
        overseas, of which only 24 are currently in use.
            (3) The aircraft carrier provides an independent base of 
        operations should no land base be available for aircraft, with 
        carrier air wings providing the United States sea-based forward-
        deployed offensive strike capability.
            (4) The aircraft carrier is an essential component of the 
        Navy.
            (5) The naval tactical aircraft modernization programs are 
        proceeding on schedule.
            (6) As established by the Navy, the United States requires 
        the service of 15 aircraft carriers to completely fulfill all 
        the naval commitments assigned to the Navy without gapping 
        carrier presence.

    (b) Sense of Congress.--It is the sense of Congress that the number 
of aircraft carriers of the Navy in active service should not be less 
than 12.
    (c) Operation Enduring Freedom and Operation Noble Eagle 
Commendation.--Congress hereby commends the military and civilian 
personnel who have participated in Operation Enduring Freedom and 
Operation Noble Eagle.

SEC. 1027. CONVEYANCE, NAVY DRYDOCK, PORTLAND, OREGON.

    (a) Conveyance Authorized.--The Secretary of the Navy may sell Navy 
Drydock No. YFD-69, located in Portland, Oregon, to Portland Shipyard, 
LLC, which is the current user of the drydock.
    (b) Condition of Conveyance.--The conveyance under subsection (a) 
shall be subject to the condition that the purchaser agree to retain the 
drydock on Swan Island in Portland, Oregon, until at least September 30, 
2007.
    (c) Consideration.--As consideration for the conveyance of the 
drydock under subsection (a), the purchaser shall pay to the

[[Page 116 STAT. 2643]]

Secretary an amount equal to the fair market value of the drydock at the 
time of the conveyance, as determined by the Secretary.
    (d) Additional Terms and Conditions.--The Secretary may require such 
additional terms and conditions in connection with the conveyance under 
subsection (a) as the Secretary considers appropriate to protect the 
interests of the United States.

                      Subtitle C--Strategic Matters

SEC. 1031. STRATEGIC FORCE STRUCTURE PLAN FOR NUCLEAR WEAPONS AND 
            DELIVERY SYSTEMS.

    (a) Plan Required.--The Secretary of Defense and the Secretary of 
Energy shall jointly prepare a plan for the United States strategic 
force structure for nuclear weapons and nuclear weapons delivery systems 
for the period of fiscal years from 2003 through 2012. The plan shall--
            (1) define the range of missions assigned to strategic 
        nuclear forces in the national defense strategy consistent 
        with--
                    (A) the Quadrennial Defense Review dated September 
                30, 2001, under section 118 of title 10, United States 
                Code;
                    (B) the Nuclear Posture Review dated December 2001 
                under section 1041 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-
                262); and
                    (C) other relevant planning documents;
            (2) delineate a baseline strategic force structure for such 
        weapons and systems over such period consistent with such 
        Nuclear Posture Review;
            (3) define sufficient force structure, force modernization 
        and life extension plans, infrastructure, and other elements of 
        the defense program of the United States associated with such 
        weapons and systems that would be required to execute 
        successfully the full range of missions defined under paragraph 
        (1);
            (4) identify the budget plan that would be required to 
        provide sufficient resources to execute successfully the full 
        range of missions using such force structure called for in that 
        national defense strategy; and
            (5)(A) evaluate options for achieving, prior to fiscal year 
        2012, a posture under which the United States maintains a number 
        of operationally deployed nuclear warheads at a level of from 
        1,700 to 2,200 such warheads, as outlined in the Nuclear Posture 
        Review referred to in paragraph (1)(B); and
            (B) contain an assessment of the advantages and 
        disadvantages of options for achieving such posture as early as 
        2007, including effects on cost, the dismantlement workforce, 
        and any other affected matter.

    (b) Report.--Not <<NOTE: Deadline.>> later than March 1, 2003, the 
Secretary of Defense and the Secretary of Energy shall submit a report 
on the plan to the congressional defense committees.

SEC. 1032. ANNUAL REPORT ON WEAPONS TO DEFEAT HARDENED AND DEEPLY BURIED 
            TARGETS.

    (a) Annual <<NOTE: Deadline. 10 USC 2358 note.>> Report.--Not later 
than April 1 of each year, the Secretary of Defense, the Secretary of 
Energy, and the Director of Central Intelligence shall jointly submit to 
the congressional 


[[Page 116 STAT. 2644]]

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 research and development, procurement, 
and other activities undertaken during the preceding fiscal year by the 
Department of Defense, the Department of Energy, and the intelligence 
community to develop weapons to defeat hardened and deeply buried 
targets.
    (b) Report Elements.--The report for a fiscal year under subsection 
(a) shall--
            (1) include a discussion of the integration and 
        interoperability of the activities referred to in that 
        subsection that were undertaken during that fiscal year, 
        including a discussion of the relevance of such activities to 
        applicable recommendations by the Chairman of the Joint Chiefs 
        of Staff, assisted under section 181(b) of title 10, United 
        States Code, by the Joint Requirements Oversight Council; and
            (2) set forth separately a description of the activities 
        referred to in that subsection, if any, that were undertaken 
        during such fiscal year by each element of--
                    (A) the Department of Defense;
                    (B) the Department of Energy; and
                    (C) the intelligence community.

    (c) Definition.--In this section, the term ``intelligence 
community'' has the meaning given such term in section 3(4) of the 
National Security Act of 1947 (50 U.S.C. 401a(4)).
    (d) Termination.--No report is required under this section after the 
submission of the report that is due on April 1, 2007.

SEC. 1033. REPORT ON EFFECTS OF NUCLEAR EARTH-PENETRATOR WEAPON AND 
            OTHER WEAPONS.

    (a) National Academy of Sciences Study.--The Secretary of Defense 
shall request the National Academy of Sciences to conduct a study and 
prepare a report on the following:
            (1) The anticipated short-term effects and long-term effects 
        of the use by the United States of a nuclear earth-penetrator 
        weapon on the target area, including the effects on civilian 
        populations in proximity to the target area at the time of or 
        after such use and the effects on United States military 
        personnel who after such use carry out operations or battle 
        damage assessments in the target area.
            (2) The anticipated short-term and long-term effects on 
        civilian population in proximity to a target area--
                    (A) if a non-penetrating nuclear weapon is used to 
                attack a hard or deeply-buried target; and
                    (B) if a conventional high-explosive weapon is used 
                to attack an adversary's facilities for storage or 
                production of weapons of mass destruction and, as a 
                result of such attack, radioactive, nuclear, biological, 
                or chemical weapons materials, agents, or other 
                contaminants are released or spread into populated 
                areas.

    (b) Report.--Not <<NOTE: Deadline.>> later than 180 days after the 
date of the enactment of this Act, the Secretary shall submit to 
Congress the report under subsection (a), together with any comments the 
Secretary may consider appropriate on the report. The report shall be 
submitted in unclassified form to the maximum extent possible, with a 
classified annex if needed.

[[Page 116 STAT. 2645]]

                           Subtitle D--Reports

SEC. 1041. REPEAL AND MODIFICATION OF VARIOUS REPORTING REQUIREMENTS 
            APPLICABLE TO THE DEPARTMENT OF DEFENSE.

    (a) Provisions of Title 10, United States Code.--Title 10, United 
States Code, is amended as follows:
            (1)(A) Section 183 is repealed.
            (B) The table of sections at the beginning of chapter 7 is 
        amended by striking the item relating to section 183.
            (2)(A) Section 230 is repealed.
            (B) The table of sections at the beginning of chapter 9 is 
        amended by striking the items relating to section 230.
            (3) Section 526 is amended by striking subsection (c).
            (4) Section 721(d) is amended--
                    (A) by striking paragraph (2); and
                    (B) by striking ``(1)'' before ``If an officer''.
            (5) Section 1095(g) is amended--
                    (A) by striking paragraph (2); and
                    (B) by striking ``(1)'' after ``(g)''.
            (6) Section 1798 is amended by striking subsection (d).
            (7) Section 1799 is amended by striking subsection (d).
            (8) Section 2220 is amended--
                    (A) by striking subsections (b) and (c);
                    (B) by striking ``(1)'' after ``Establishment of 
                Goals.--''; and
                    (C) by striking ``(2) The'' and inserting ``(b) 
                Evaluation of Cost Goals.--The''.
            (9) Section 2350a(g) is amended by striking paragraph (4).
            (10) Section 2350f is amended by striking subsection (c).
            (11) Section 2350k is amended by striking subsection (d).
            (12) Section 2367(d) is amended by striking ``Effort.--(1) 
        In the'' and all that follows through ``(2) After the close of'' 
        and inserting ``Effort.--After the close of''.
            (13) Section 2391 is amended by striking subsection (c).
            (14) Section 2486(b)(12) is amended by striking ``, except 
        that'' and all that follows and inserting the following: ``, 
        except that the Secretary shall notify Congress of any addition 
        of, or change in, a merchandise category under this 
        paragraph.''.
            (15) Section 2492 is amended by striking subsection (c) and 
        inserting the following:

    ``(c) Notification of Conditions Necessitating Restrictions.--The 
Secretary of Defense shall notify Congress of any change proposed or 
made to any of the host nation laws or any of the treaty obligations of 
the United States, and any changed conditions within host nations, if 
the change would necessitate the use of quantity or other restrictions 
on purchases in commissary and exchange stores located outside the 
United States.''.
            (16) Section 2537(a) is amended by striking ``$100,000'' and 
        inserting ``$10,000,000''.
            (17) Section 2611 is amended by striking subsection (e).
            (18) Section 2667(d) is amended by striking paragraph (3).
            (19) Section 4416 is amended by striking subsection (f).
            (20) Section 5721(f) is amended--

[[Page 116 STAT. 2646]]

                    (A) by striking paragraph (2); and
                    (B) by striking ``(1)'' after the subsection 
                heading.

    (b) National Defense Authorization Act for Fiscal Year 1995.--
Section 553(b) of the National Defense Authorization Act for Fiscal Year 
1995 (Public Law 103-337; 108 Stat. 2772; 10 U.S.C. 4331 note) is 
amended by striking the last sentence.
    (c) Ballistic Missile Defense Act of 1995.--Section 234 of the 
Ballistic Missile Defense Act of 1995 (subtitle C of title II of Public 
Law 104-106; 10 U.S.C. 2431 note) is amended by striking subsection (f).

SEC. 1042. REQUIREMENT THAT DEPARTMENT OF DEFENSE REPORTS TO CONGRESS BE 
            ACCOMPANIED BY ELECTRONIC VERSION.

    Section 480(a) of title 10, United States Code, is amended by 
striking ``shall, upon request'' and all that follows through ``(or 
each'' and inserting ``shall provide to Congress (or''.

SEC. 1043. <<NOTE: 10 USC 113 note.>> ANNUAL REPORT ON THE CONDUCT OF 
            MILITARY OPERATIONS CONDUCTED AS PART OF OPERATION ENDURING 
            FREEDOM.

    (a) Reports Required.--(1) The Secretary of Defense shall submit to 
the congressional committees specified in subsection (d) an annual 
report on the conduct of military operations conducted as part of 
Operation Enduring Freedom. <<NOTE: Deadlines.>> The first report, which 
shall include a definition of the military operations carried out as 
part of Operation Enduring Freedom, shall be submitted not later than 
June 15, 2003. Subsequent reports shall be submitted not later than June 
15 each year, and the final report shall be submitted not later than 180 
days after the date (as determined by the Secretary of Defense) of the 
cessation of hostilities undertaken as part of Operation Enduring 
Freedom.

    (2) Each report under this section shall be prepared in consultation 
with the Chairman of the Joint Chiefs of Staff, the commander of the 
United States Central Command, the Director of Central Intelligence, and 
such other officials as the Secretary considers appropriate.
    (3) Each such report shall be submitted in both a classified form 
and an unclassified form, as necessary.
    (b) Special Matters To Be Included.--Each report under this section 
shall include the following:
            (1) A discussion of the command, control, coordination, and 
        support relationship between United States special operations 
        forces and Central Intelligence Agency elements participating in 
        Operation Enduring Freedom and any lessons learned from the 
        joint conduct of operations by those forces and elements.
            (2) Recommendations to improve operational readiness and 
        effectiveness of these forces and elements.

    (c) Other Matters To Be Included.--Each report under this section 
shall include a discussion, with a particular emphasis on 
accomplishments and shortcomings, of the following matters with respect 
to Operation Enduring Freedom:
            (1) The political and military objectives of the United 
        States.
            (2) The military strategy of the United States to achieve 
        those political and military objectives.

[[Page 116 STAT. 2647]]

            (3) The concept of operations, including any new operational 
        concepts, for the operation.
            (4) The benefits and disadvantages of operating with local 
        opposition forces.
            (5) The benefits and disadvantages of operating in a 
        coalition with the military forces of allied and friendly 
        nations.
            (6) The cooperation of nations in the region for overflight, 
        basing, command and control, and logistic and other support.
            (7) The conduct of relief operations both during and after 
        the period of hostilities.
            (8) The conduct of close air support (CAS), particularly 
        with respect to the timeliness, efficiency, and effectiveness of 
        such support.
            (9) The use of unmanned aerial vehicles for intelligence, 
        surveillance, reconnaissance, and combat support to operational 
        forces.
            (10) The use and performance of United States and coalition 
        military equipment, weapon systems, and munitions.
            (11) The effectiveness of reserve component forces, 
        including their use and performance in the theater of 
        operations.
            (12) The importance and effectiveness of the International 
        Security Assistance Force.
            (13) The importance and effectiveness of United States civil 
        affairs forces.
            (14) The anticipated duration of the United States military 
        presence in Afghanistan.
            (15) The most critical lessons learned that could lead to 
        long-term doctrinal, organizational, and technological changes.

    (d) Congressional Committees.--The committees referred to in 
subsection (a)(1) are the following:
            (1) The Committee on Armed Services and the Select Committee 
        on Intelligence of the Senate.
            (2) The Committee on Armed Services and the Permanent Select 
        Committee on Intelligence of the House of Representatives.

SEC. 1044. REPORT ON EFFORTS TO ENSURE ADEQUACY OF FIRE FIGHTING STAFFS 
            AT MILITARY INSTALLATIONS.

    Not <<NOTE: Deadline.>> later than May 31, 2003, the Secretary of 
Defense shall submit to Congress a report on the actions being 
undertaken to ensure that the fire fighting staffs at military 
installations are adequate under applicable Department of Defense 
regulations.

SEC. 1045. REPORT ON DESIGNATION OF CERTAIN LOUISIANA HIGHWAY AS DEFENSE 
            ACCESS ROAD.

    Not <<NOTE: Deadline.>> later than March 1, 2003, the Secretary of 
the Army shall submit to the congressional defense committees a report 
containing the results of a study on the advisability of designating 
Louisiana Highway 28 between Alexandria, Louisiana, and Leesville, 
Louisiana, a road providing access to the Joint Readiness Training 
Center, Louisiana, and to Fort Polk, Louisiana, as a defense access road 
for purposes of section 210 of title 23, United States Code.

[[Page 116 STAT. 2648]]

              Subtitle E--Extension of Expiring Authorities

SEC. 1051. EXTENSION OF AUTHORITY FOR SECRETARY OF DEFENSE TO SELL 
            AIRCRAFT AND AIRCRAFT PARTS FOR USE IN RESPONDING TO OIL 
            SPILLS.

    (a) Four-Year Extension.--Section 740 of the Wendell H. Ford 
Aviation Investment and Reform Act for the 21st Century (Public Law 106-
181; 114 Stat. 173; 10 U.S.C. 2576 note) is amended--
            (1) in subsection (a)(1), by striking ``, during the period 
        beginning on the date of the enactment of this Act and ending 
        September 30, 2002,''; and
            (2) by adding at the end the following new subsection:

    ``(i) Expiration of Authority.--The authority to sell aircraft and 
aircraft parts under this section expires on September 30, 2006.''.
    (b) Additional Report.--Subsection (f) of such section is amended by 
striking ``March 31, 2002'' and inserting ``March 31, 2006''.

SEC. 1052. SIX-MONTH EXTENSION OF EXPIRING GOVERNMENTWIDE INFORMATION 
            SECURITY REQUIREMENTS; CONTINUED APPLICABILITY OF EXPIRING 
            GOVERNMENTWIDE INFORMATION SECURITY REQUIREMENTS TO THE 
            DEPARTMENT OF DEFENSE.

    (a) Six-Month Extension of Expiring Governmentwide Requirements.--
Section 3536 of title 44, United States Code, is amended to read as 
follows:

``Sec. 3536. Expiration

    ``This subchapter shall not be in effect after May 31, 2003.''.
    (b) Continued Applicability of Expiring Governmentwide Requirements 
to Department of Defense.--(1) Chapter 131 of title 10, United States 
Code, is amended by inserting after section 2224 the following new 
section:

``Sec. 2224a. Information security: continued applicability of expiring 
                        Governmentwide requirements to the Department of 
                        Defense

    ``(a) In General.--The provisions of subchapter II of chapter 35 of 
title 44 shall continue to apply through September 30, 2004, with 
respect to the Department of Defense, notwithstanding the expiration of 
authority under section 3536 of such title.
    ``(b) Responsibilities.--In administering the provisions of 
subchapter II of chapter 35 of title 44 with respect to the Department 
of Defense after the expiration of authority under section 3536 of such 
title, the Secretary of Defense shall perform the duties set forth in 
that subchapter for the Director of the Office of Management and 
Budget.''.

[[Page 116 STAT. 2649]]

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2224 the 
following new item:

``2224a. Information security: continued applicability of expiring 
           Governmentwide requirements to the Department of Defense.''.

SEC. 1053. 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, 2002'' and inserting ``December 31, 2004''.

                        Subtitle F--Other Matters

SEC. 1061. TIME FOR TRANSMITTAL OF ANNUAL DEFENSE AUTHORIZATION 
            LEGISLATIVE PROPOSAL.

    (a) In General.--Chapter 2 of title 10, United States Code, is 
amended by inserting after section 113 the following new section:

``Sec. 113a. Transmission of annual defense authorization request

    ``(a) Time for Transmittal.--The Secretary of Defense shall transmit 
to Congress the annual defense authorization request for a fiscal year 
during the first 30 days after the date on which the President transmits 
to Congress the budget for that fiscal year pursuant to section 1105 of 
title 31.
    ``(b) Defense Authorization Request Defined.--In this section, the 
term `defense authorization request', with respect to a fiscal year, 
means a legislative proposal submitted to Congress for the enactment of 
the following:
            ``(1) Authorizations of appropriations for that fiscal year, 
        as required by section 114 of this title.
            ``(2) Personnel strengths for that fiscal year, as required 
        by section 115 of this title.
            ``(3) Any other matter that is proposed by the Secretary of 
        Defense to be enacted as part of the annual defense 
        authorization bill for that fiscal year.''.

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

``113a. Transmission of annual defense authorization request.''.

SEC. 1062. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) Title 10, United States Code.--Title 10, United States Code, is 
amended as follows:
            (1) Section 153 is amended--
                    (A) by inserting ``(a) Planning; Advice; Policy 
                Formulation.--'' at the beginning of the text; and
                    (B) by redesignating subsections (c) and (d) as 
                subsections (b) and (c), respectively.
            (2) Section 624(d)(1) is amended by striking ``subsection 
        (d)(2)'' in the second sentence and inserting ``paragraph (2)''.
            (3) Section 661(b)(2) is amended by striking ``the date of 
        the enactment of the National Defense Authorization Act for 
        Fiscal Year 2002'' and inserting ``December 28, 2001,''.

[[Page 116 STAT. 2650]]

            (4) Section 662(a)(2) is amended--
                    (A) in subparagraph (A), by striking ``during the 
                three-year period beginning on the date of the enactment 
                of the National Defense Authorization Act for Fiscal 
                Year 2002,'' and inserting ``during the period beginning 
                on December 28, 2001, and ending on December 27, 
                2004,''; and
                    (B) in subparagraph (B), by striking ``after the end 
                of the period specified in subparagraph (A)'' and 
                inserting ``after December 27, 2004''.
            (5) Section 663(e)(2) is amended by striking ``Armed Forces 
        Staff College'' and inserting ``Joint Forces Staff College''.
            (6) Section 1451(c)(3) is amended by striking ``section'' 
        before ``clause''.
            (7) Section 2162(b)(2) is amended by striking ``the date of 
        the enactment of this paragraph'' and inserting ``December 28, 
        2001,''.
            (8) Section 2330(c) is amended by inserting a comma after 
        ``a task order''.
            (9) Section 2399(a)(2) is amended--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``means--'' and inserting ``means a 
                conventional weapons system that--''; and
                    (B) in subparagraph (A), by striking ``a 
                conventional weapons system that''.
            (10)(A) Section 2410h is transferred to the end of 
        subchapter IV of chapter 87 and redesignated as section 1747.
            (B) The item relating to that section in the table of 
        sections at the beginning of chapter 141 is transferred to the 
        end of the table of sections at the beginning of subchapter IV 
        of chapter 87 and amended to reflect the redesignation made by 
        subparagraph (A).
            (11) Section 2676(a) is amended by inserting an open 
        parenthesis before ``41 U.S.C.''.
            (12) Section 2677 is amended by striking subsection (c).
            (13) Section 2680(e) is amended by striking ``the'' after 
        ``the Committee on'' the first place it appears.
            (14) Section 2815(b) is amended by striking ``for fiscal 
        year 2003 and each fiscal year thereafter'' and inserting ``for 
        any fiscal year''.
            (15) Section 2828(b)(2) is amended by inserting ``time'' 
        after ``from time to''.
            (16) Sections 3755, 6257, and 8755, as added by section 
        8143(c) of Public Law 107-248 (116 Stat. 1570), are amended by 
        striking ``the date of the enactment of this section'' and 
        inserting ``October 23, 2002''.

    (b) Title 14, United States Code.--Title 14, United States Code, is 
amended as follows:
            (1) Section 505, as added by section 8143(c)(4) of Public 
        Law 107-248 (116 Stat. 1571), is amended by striking ``the date 
        of the enactment of this section'' and inserting ``October 23, 
        2002''.
            (2) Section 516(c) is amended by striking ``his section'' 
        and inserting ``this section''.

    (c) Title 37, United States Code.--Title 37, United States Code, is 
amended as follows:

[[Page 116 STAT. 2651]]

            (1) Section 302j(a) is amended by striking ``subsection 
        (c)'' and inserting ``subsection (d)''.
            (2) Section 324(b) is amended by striking ``(1)'' before 
        ``The Secretary''.

    (d) Public Law 107-248.--Section 8118(a) of Public Law 107-248 (116 
Stat. 1565) is amended by striking ``subsection (i)'' and inserting 
``subsection (j)''.
    (e) Public Law 107-217.--Effective as if included therein as 
originally enacted, section 3(b) of <<NOTE: 10 USC 2562 note.>> Public 
Law 107-217 is amended--
            (1) in paragraph (8) (116 Stat. 1295), <<NOTE: 10 USC 
        2562.>> by inserting ``the second place it appears'' before the 
        semicolon; and
            (2) in paragraph (34) (116 Stat. 1298), <<NOTE: 10 USC 
        7545.>> by striking ``section 7545(a)'' and inserting ``section 
        7545(c)''.

    (f) Public <<NOTE: 10 USC 2350a note.>> Law 107-107.--Effective as 
of December 28, 2001, and as if included therein as enacted, the 
National Defense Authorization Act for Fiscal Year 2002 (Public Law 107-
107) is amended as follows:
            (1) <<NOTE: 37 USC 203.>> Section 602(a)(2) (115 Stat. 1132) 
        is amended by striking ``an'' in the first quoted matter.
            (2) <<NOTE: 10 USC 2350a.>> Section 1212(a)(5) (115 Stat. 
        1249) is amended by inserting ``in'' after the paragraph 
        designation.
            (3) <<NOTE: 24 USC 420.>> Section 1410(a)(3)(C) (115 Stat. 
        1266) by inserting ``both places it appears'' before ``and 
        inserting''.
            (4) <<NOTE: 10 USC 2687 note.>> Section 3007(d)(1)(C) (115 
        Stat. 1352) is amended by striking ``2905(b)(7)(B)(iv)'' and 
        inserting ``2905(b)(7)(C)(iv)''.

    (g) Public <<NOTE: 32 USC 509 note.>> Law 106-398.--Effective as of 
October 30, 2000, and as if included therein as enacted, the Floyd D. 
Spence National Defense Authorization Act for Fiscal Year 2001 (as 
enacted into law by Public Law 106-398) is amended as follows:
            (1) <<NOTE: 32 USC 509.>> Section 577(b)(2) (114 Stat. 
        1654A-140) is amended by striking ``Federal'' in the quoted 
        matter and inserting ``Department of Defense''.
            (2) <<NOTE: 32 USC 209.>> Section 612(c)(4)(B) (114 Stat. 
        1654A-150) is amended by striking the comma at the end of the 
        first quoted matter.

    (h) Public Law 106-246.--Section 136 of Public Law 106-246 (114 
Stat. 520) is amended--
            (1) in subsection (d)(7), by striking subparagraphs (B) and 
        (C) and inserting the following new subparagraphs:
            ``(B) Section 1302 of title 40, United States Code.
            ``(C) Subtitle I of title 40, United States Code.''; and
            (2) in subsection (e)(3), by striking subparagraph (B) and 
        inserting the following new subparagraph:
            ``(B) Subtitle I of title 40, United States Code.''.

    (i) Public Law 106-181.--Section 740(a)(1) of the Wendell H. Ford 
Aviation Investment and Reform Act for the 21st Century (10 U.S.C. 2576 
note) is amended by striking ``section 202 of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 483)'' and inserting 
``subchapter II of chapter 5 of title 40, United States Code,''.
    (j) Public Law 106-65.--The National Defense Authorization Act for 
Fiscal Year 2000 (Public Law 106-65) is amended as follows:
            (1) Section 573(b) (10 U.S.C. 513 note) is amended by 
        inserting a period at the end of paragraph (2).
            (2) Section 1305(6) (22 U.S.C. 5952 note) is amended by 
        striking the first period after ``facility''.

    (k) Public Law 104-307.--Section 2(a)(1) of the Wildfire Suppression 
Aircraft Transfer Act of 1996 (10 U.S.C. 2576 note)

[[Page 116 STAT. 2652]]

is amended by striking ``section 202 of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 483)'' and inserting 
``subchapter II of chapter 5 of title 40, United States Code,''.
    (l) Public Law 103-337.--Section 2814 of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337) <<NOTE: 10 
USC 2687 note.>> is amended by striking ``the Public Buildings Act of 
1959 (40 U.S.C. 601 et seq.) and the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 471 et seq.)'' and inserting ``chapter 5 
or 33 of title 40, United States Code''.

    (m) Public Law 101-510.--The National Defense Authorization Act for 
Fiscal Year 1991 (Public Law 101-510) is amended as follows:
            (1) Section 2905(b)(1) (10 U.S.C. 2687 note) is amended--
                    (A) in subparagraph (A), by striking ``section 202 
                of the Federal Property and Administrative Services Act 
                of 1949 (40 U.S.C. 483)'' and inserting ``subchapter II 
                of chapter 5 of title 40, United States Code''; and
                    (B) in subparagraph (B), by striking ``section 203 
                of that Act (40 U.S.C. 484)'' and inserting ``subchapter 
                III of chapter 5 of title 40, United States Code''.
            (2) Section 2905(b)(4)(F) is amended by striking ``sections 
        202 and 203 of the Federal Property and Administrative Services 
        Act of 1949 (40 U.S.C. 483, 484)'' and inserting ``subchapters 
        II and III of chapter 5 of title 40, United States Code,''.
            (3) Section 2905(b)(7) is amended by striking ``section 
        203(k) of the Federal Property and Administrative Services Act 
        of 1949 (40 U.S.C. 484(k))'' in subparagraphs (K)(v), 
        (L)(iv)(V), and (P) and inserting ``section 550 of title 40, 
        United States Code,''.
            (4) <<NOTE: 10 USC 2687 note.>> Section 2926(d)(2) is 
        amended by striking ``title IX of the Federal Property and 
        Administrative Services Act (Public Law 92-582; 40 U.S.C. 541 et 
        seq., as amended)'' and inserting ``chapter 11 of title 40, 
        United States Code''.

    (n) Public Law 100-526.--The Defense Authorization Amendments and 
Base Closure and Realignment Act (Public Law 100-526) is amended as 
follows:
            (1) Section 204(b)(1) (10 U.S.C. 2687 note) is amended--
                    (A) in subparagraph (A), by striking ``section 202 
                of the Federal Property and Administrative Services Act 
                of 1949 (40 U.S.C. 483)'' and inserting ``subchapter II 
                of chapter 5 of title 40, United States Code''; and
                    (B) in subparagraph (B), by striking ``section 203 
                of that Act (40 U.S.C. 484)'' and inserting ``subchapter 
                III of chapter 5 of title 40, United States Code''.
            (2) Section 204(b)(4)(F) is amended by striking ``sections 
        202 and 203 of the Federal Property and Administrative Services 
        Act of 1949 (40 U.S.C. 483, 484)'' and inserting ``subchapters 
        II and III of chapter 5 of title 40, United States Code,''.

    (o) Other Laws.--(1) Section 502(a) of the National Emergencies Act 
(50 U.S.C. 1651(a)) is amended by striking paragraph (2) and 
redesignating paragraphs (3) through (7) as paragraphs (1) through (5), 
respectively.
    (2) Section 10(b)(8) of the Military Selective Service Act (50 
U.S.C. App. 460(b)(8)) is amended by striking ``Public Law 26'' and all 
that follows through the period at the end of the paragraph

[[Page 116 STAT. 2653]]

and inserting ``the Act of March 31, 1947 (50 U.S.C. App. 321 et 
seq.).''.
    (3) The Defense Production Act of 1950 is amended in both section 
305(i) and section 306(j) (50 U.S.C. App. 2095(i), 2096(j))--
            (A) in the first sentence, by striking ``the Act entitled'' 
        and all that follows through the period at the end of the 
        sentence and inserting ``subchapter IV of chapter 31 of title 
        40, United States Code.''; and
            (B) in the last sentence, by striking ``and section 276(c) 
        of title 40''.

SEC. 1063. USE FOR LAW ENFORCEMENT PURPOSES OF DNA SAMPLES MAINTAINED BY 
            DEPARTMENT OF DEFENSE FOR IDENTIFICATION OF HUMAN REMAINS.

    (a) In General.--Chapter 80 of title 10, United States Code, is 
amended by inserting after section 1565 the following new section:

``Sec. 1565a. DNA samples maintained for identification of human 
                        remains: use for law enforcement purposes

    ``(a) Compliance with Court Order.--(1) Subject to paragraph (2), if 
a valid order of a Federal court (or military judge) so requires, an 
element of the Department of Defense that maintains a repository of DNA 
samples for the purpose of identification of human remains shall make 
available, for the purpose specified in subsection (b), such DNA samples 
on such terms and conditions as such court (or military judge) directs.
    ``(2) A DNA sample with respect to an individual shall be provided 
under paragraph (1) in a manner that does not compromise the ability of 
the Department of Defense to maintain a sample with respect to that 
individual for the purpose of identification of human remains.
    ``(b) Covered Purpose.--The purpose referred to in subsection (a) is 
the purpose of an investigation or prosecution of a felony, or any 
sexual offense, for which no other source of DNA information is 
reasonably available.
    ``(c) Definition.--In this section, the term `DNA sample' has the 
meaning given such term in section 1565(c) of this title.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
1565 the following new item:

``1565a. DNA samples maintained for identification of human remains: use 
           for law enforcement purposes.''.

SEC. 1064. ENHANCED AUTHORITY TO OBTAIN FOREIGN LANGUAGE SERVICES DURING 
            PERIODS OF EMERGENCY.

    (a) National Foreign Language Skills Registry.--(1) Chapter 81 of 
title 10, United States Code, is amended by inserting after section 
1596a the following new section:

``Sec. 1596b. Foreign language proficiency: National Foreign Language 
                        Skills Registry

    ``(a) Establishment.--(1) The Secretary of Defense may establish and 
maintain a registry of persons who--
            ``(A) have proficiency in one or more critical foreign 
        languages;

[[Page 116 STAT. 2654]]

            ``(B) are willing to provide linguistic services to the 
        United States in the interests of national security during war 
        or a national emergency; and
            ``(C) meet the eligibility requirements of subsection (b).

    ``(2) The registry shall be known as the `National Foreign Language 
Skills Registry' (in this section referred to as the `Registry').
    ``(b) Eligible Persons.--To be eligible for listing on the Registry, 
a person--
            ``(1) must be--
                    ``(A) a national of the United States (as defined in 
                section 101(a)(22) of the Immigration and Nationality 
                Act (8 U.S.C. 1101(a)(22))); or
                    ``(B) an alien lawfully admitted for permanent 
                residence (as defined in section 101(a)(20) of the 
                Immigration and Nationality Act (8 U.S.C. 1101(a)(20)));
            ``(2) shall express willingness, in a form and manner 
        prescribed by the Secretary--
                    ``(A) to provide linguistic services for a foreign 
                language as described in subsection (a); and
                    ``(B) to be listed on the Registry; and
            ``(3) shall meet such language proficiency and other 
        selection criteria as may be prescribed by the Secretary.

    ``(c) Registered Information.--The Registry shall consist of the 
following:
            ``(1) The names of eligible persons selected by the 
        Secretary for listing on the Registry.
            ``(2) Such other information on such persons as the 
        Secretary determines pertinent to the use of such persons to 
        provide linguistic services as described in subsection (a).

    ``(d) Protection of Privacy.--The Secretary may withhold from public 
disclosure the information maintained in the Registry in accordance with 
section 552a of title 5.
    ``(e) Designation of Critical Foreign Languages.--The Secretary 
shall designate those languages that are critical foreign languages for 
the purposes of this section. The Secretary shall make such a 
designation for any foreign language for which there is a shortage of 
experts in translation or interpretation available to meet requirements 
of the Secretary or of the head of any other department or agency of the 
United States for translation or interpretation in the national security 
interests of the United States.
    ``(f) Linguistic Services Defined.--In this section, the term 
`linguistic services' means translation or interpretation of 
communication in a foreign language.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after section 1596a the following new item:

``1596b. Foreign language proficiency: National Foreign Language Skills 
           Registry.''.

    (b) Authority To Accept Voluntary Translation and Interpretation 
Services.--Section 1588(a) of title 10, United States Code, is amended 
by adding after paragraph (6), as added by section 553, the following 
new paragraph:
            ``(7) Voluntary translation or interpretation services 
        offered with respect to a foreign language by a person (A) who 
        is registered for such foreign language on the National Foreign 
        Language Skills Registry under section 1596b of this title,

[[Page 116 STAT. 2655]]

        or (B) who otherwise is approved to provide voluntary 
        translation or interpretation services for national security 
        purposes, as determined by the Secretary of Defense.''.

SEC. 1065. REWARDS FOR ASSISTANCE IN COMBATING TERRORISM.

    (a) Authority.--Chapter 3 of title 10, United States Code, is 
amended by inserting after section 127a the following new section:

``Sec. 127b. Assistance in combating terrorism: rewards

    ``(a) Authority.--The Secretary of Defense may pay a monetary 
amount, or provide a payment-in-kind, to a person as a reward for 
providing United States Government personnel with information or 
nonlethal assistance that is beneficial to--
            ``(1) an operation or activity of the armed forces conducted 
        outside the United States against international terrorism; or
            ``(2) force protection of the armed forces.

    ``(b) Limitation.--The amount or value of a reward provided under 
this section may not exceed $200,000.
    ``(c) Delegation of Authority.--(1) The authority of the Secretary 
of Defense under subsection (a) may be delegated only--
            ``(A) to the Deputy Secretary of Defense and an Under 
        Secretary of Defense, without further redelegation; and
            ``(B) to the commander of a combatant command, but only for 
        a reward in an amount or with a value not in excess of $50,000.

    ``(2) A commander of a combatant command to whom authority to 
provide rewards under this section is delegated under paragraph (1) may 
further delegate that authority, but only for a reward in an amount or 
with a value not in excess of $2,500, except that such a delegation may 
be made to the commander's deputy commander without regard to such 
limitation.
    ``(d) Coordination.--(1) The Secretary of Defense shall prescribe 
policies and procedures for the offering and making of rewards under 
this section and otherwise for administering the authority under this 
section. Such polices and procedures shall be prescribed in consultation 
with the Secretary of State and the Attorney General and shall ensure 
that the making of a reward under this section does not duplicate or 
interfere with the payment of a reward authorized by the Secretary of 
State or the Attorney General.
    ``(2) The Secretary of Defense shall consult with the Secretary of 
State regarding the making of any reward under this section in an amount 
or with a value in excess of $100,000.
    ``(e) Persons Not Eligible.--The following persons are not eligible 
to receive a reward under this section:
            ``(1) A citizen of the United States.
            ``(2) An officer or employee of the United States.
            ``(3) An employee of a contractor of the United States.

    ``(f) Annual Report.--(1) <<NOTE: Deadline.>> Not later than 
December 1 of each year, the Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives a report on the administration of the rewards program 
under this section during the preceding fiscal year.

    ``(2) Each report for a fiscal year under this subsection shall 
include the following:

[[Page 116 STAT. 2656]]

            ``(A) Information on the total amount expended during that 
        fiscal year to carry out the rewards program under this section 
        during that fiscal year.
            ``(B) Specification of the amount, if any, expended during 
        that fiscal year to publicize the availability of rewards under 
        this section.
            ``(C) With respect to each reward provided during that 
        fiscal year--
                    ``(i) the amount or value of the reward and whether 
                the reward was provided as a monetary payment or in some 
                other form;
                    ``(ii) the recipient of the reward; and
                    ``(iii) a description of the information or 
                assistance for which the reward was paid, together with 
                an assessment of the significance and benefit of the 
                information or assistance.

    ``(3) The Secretary may submit the report in classified form if the 
Secretary determines that it is necessary to do so.
    ``(g) Determinations by the Secretary.--A determination by the 
Secretary under this section is final and conclusive and is not subject 
to judicial review.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
127a the following new item:

``127b. Assistance in combating terrorism: rewards.''.

SEC. 1066. PROVISION OF SPACE AND SERVICES TO MILITARY WELFARE 
            SOCIETIES.

    (a) Authority To Provide Space and Services.--Chapter 152 of title 
10, United States Code, is amended by adding at the end the following 
new section:

``Sec. 2566. Space and services: provision to military welfare societies

    ``(a) Authority To Provide Space and Services.--The Secretary of a 
military department may provide, without charge, space and services 
under the jurisdiction of that Secretary to a military welfare society.
    ``(b) Definitions.--In this section:
            ``(1) The term `military welfare society' means the 
        following:
                    ``(A) The Army Emergency Relief Society.
                    ``(B) The Navy-Marine Corps Relief Society.
                    ``(C) The Air Force Aid Society, Inc.
            ``(2) The term `services' includes lighting, heating, 
        cooling, electricity, office furniture, office machines and 
        equipment, telephone and other information technology services 
        (including installation of lines and equipment, connectivity, 
        and other associated services), and security systems (including 
        installation and other associated expenses).''.

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

``2566. Space and services: provision to military welfare societies.''.

[[Page 116 STAT. 2657]]

SEC. 1067. PREVENTION AND MITIGATION OF CORROSION OF MILITARY EQUIPMENT 
            AND INFRASTRUCTURE.

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

``Sec. 2228. Military equipment and infrastructure: prevention and 
                        mitigation of corrosion

    ``(a) Designation of Responsible Official or Organization.--The 
Secretary of Defense shall designate an officer or employee of the 
Department of Defense, or a standing board or committee of the 
Department of Defense, as the senior official or organization 
responsible in the Department to the Secretary of Defense (after the 
Under Secretary of Defense for Acquisition, Technology, and Logistics) 
for the prevention and mitigation of corrosion of the military equipment 
and infrastructure of the Department.
    ``(b) Duties.--(1) The official or organization designated under 
subsection (a) shall oversee and coordinate efforts throughout the 
Department of Defense to prevent and mitigate corrosion of the military 
equipment and infrastructure of the Department. The duties under this 
paragraph shall include the duties specified in paragraphs (2) through 
(5).
    ``(2) The designated official or organization shall develop and 
recommend any policy guidance on the prevention and mitigation of 
corrosion to be issued by the Secretary of Defense.
    ``(3) The designated official or organization shall review the 
programs and funding levels proposed by the Secretary of each military 
department during the annual internal Department of Defense budget 
review process as those programs and funding proposals relate to 
programs and funding for the prevention and mitigation of corrosion and 
shall submit to the Secretary of Defense recommendations regarding those 
programs and proposed funding levels.
    ``(4) The designated official or organization shall provide 
oversight and coordination of the efforts within the Department of 
Defense to prevent or mitigate corrosion during--
            ``(A) the design, acquisition, and maintenance of military 
        equipment; and
            ``(B) the design, construction, and maintenance of 
        infrastructure.

    ``(5) The designated official or organization shall monitor 
acquisition practices within the Department of Defense--
            ``(A) to ensure that the use of corrosion prevention 
        technologies and the application of corrosion prevention 
        treatments are fully considered during research and development 
        in the acquisition process; and
            ``(B) to ensure that, to the extent determined appropriate 
        for each acquisition program, such technologies and treatments 
        are incorporated into that program, particularly during the 
        engineering and design phases of the acquisition process.

    ``(c) Long-Term Strategy.--(1) The Secretary of Defense shall 
develop and implement a long-term strategy to reduce corrosion and the 
effects of corrosion on the military equipment and infrastructure of the 
Department of Defense.
    ``(2) The strategy under paragraph (1) shall include the following:

[[Page 116 STAT. 2658]]

            ``(A) Expansion of the emphasis on corrosion prevention and 
        mitigation within the Department of Defense to include coverage 
        of infrastructure.
            ``(B) Application uniformly throughout the Department of 
        Defense of requirements and criteria for the testing and 
        certification of new corrosion-prevention technologies for 
        equipment and infrastructure with similar characteristics, 
        similar missions, or similar operating environments.
            ``(C) Implementation of programs, including supporting 
        databases, to ensure that a focused and coordinated approach is 
        taken throughout the Department of Defense to collect, review, 
        validate, and distribute information on proven methods and 
        products that are relevant to the prevention of corrosion of 
        military equipment and infrastructure.
            ``(D) Establishment of a coordinated research and 
        development program for the prevention and mitigation of 
        corrosion for new and existing military equipment and 
        infrastructure that includes a plan to transition new corrosion 
        prevention technologies into operational systems.

    ``(3) The strategy shall include, for the matters specified in 
paragraph (2), the following:
            ``(A) Policy guidance.
            ``(B) Performance measures and milestones.
            ``(C) An assessment of the necessary personnel and funding 
        necessary to accomplish the long-term strategy.

    ``(d) Definitions.--In this section:
            ``(1) The term `corrosion' means the deterioration of a 
        material or its properties due to a reaction of that material 
        with its chemical environment.
            ``(2) The term `military equipment' includes all weapon 
        systems, weapon platforms, vehicles, and munitions of the 
        Department of Defense, and the components of such items.
            ``(3) The term `infrastructure' includes all buildings, 
        structures, airfields, port facilities, surface and subterranean 
        utility systems, heating and cooling systems, fuel tanks, 
        pavements, and bridges.''.

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

``2228. Military equipment and infrastructure: prevention and mitigation 
           of corrosion.''.

    (b) Deadline <<NOTE: 10 USC 2228 note.>> for Designation of 
Responsible Official or Organization.--The Secretary of Defense shall 
designate an officer, employee, or standing board or committee of the 
Department of Defense under subsection (a) of section 2228 of title 10, 
United States Code, as added by subsection (a), not later than 90 days 
after the date of the enactment of this Act.

    (c) Interim Report.--When the President submits the budget for 
fiscal year 2004 to Congress pursuant to section 1105(a) of title 31, 
United States Code, the Secretary of Defense shall submit to Congress a 
report regarding the actions taken to that date under section 2228 of 
title 10, United States Code, as added by subsection (a). That report 
shall include the following:
            (1) A description of the organizational structure for the 
        personnel carrying out the responsibilities of the official or 
        organization designated under subsection (a) of that section 
        with respect to the prevention and mitigation of corrosion.

[[Page 116 STAT. 2659]]

            (2) An outline for the long-term strategy for prevention and 
        mitigation of corrosion required by subsection (c) of that 
        section and milestones for development of that strategy.

    (d) Deadline for Long-Term Strategy.--The Secretary of Defense shall 
submit to Congress a report setting forth the long-term strategy 
required under subsection (c) of section 2228 of title 10, United States 
Code, as added by subsection (a), not later than one year after the date 
of the enactment of this Act.
    (e) GAO <<NOTE: Deadline.>> Review.--The Comptroller General shall 
monitor the implementation of the long-term strategy required under 
subsection (c) of section 2228 of title 10, United States Code, as added 
by subsection (a), and, not later than 18 months after the date of the 
enactment of this Act, shall submit to Congress an assessment of the 
extent to which that strategy has been implemented.

SEC. 1068. TRANSFER OF HISTORIC DF-9E PANTHER AIRCRAFT TO WOMEN AIRFORCE 
            SERVICE PILOTS MUSEUM.

    (a) Authority to Convey.--The Secretary of the Navy may convey, 
without consideration, to the Women Airforce Service Pilots Museum in 
Quartzsite, Arizona (in this section referred to as the ``W.A.S.P. 
Museum''), all right, title, and interest of the United States in and to 
a DF-9E Panther aircraft (Bureau Number 125316). The conveyance shall be 
made by means of a conditional deed of gift.
    (b) Condition of Aircraft.--The aircraft shall be conveyed under 
subsection (a) in its current unflyable, ``as is'' condition. The 
Secretary is not required to repair or alter the condition of the 
aircraft before conveying ownership of the aircraft.
    (c) Reverter Upon Breach of Conditions.--The Secretary shall include 
in the instrument of conveyance of the aircraft under subsection (a) the 
following conditions:
            (1) The W.A.S.P. Museum may not convey any ownership 
        interest in, or transfer possession of, the aircraft to any 
        other party without the prior approval of the Secretary.
            (2) If the Secretary determines at any time that the 
        W.A.S.P. Museum has conveyed an ownership interest in, or 
        transferred possession of, the aircraft to any other party 
        without the prior approval of the Secretary, all right, title, 
        and interest in and to the aircraft, including any repair or 
        alteration of the aircraft, shall revert to the United States, 
        and the United States shall have the right of immediate 
        possession of the aircraft.

    (d) Conveyance at No Cost to the United States.--The conveyance of 
the aircraft under subsection (a) shall be made at no cost to the United 
States. Any costs associated with the conveyance, costs of determining 
compliance with subsection (b), and costs of operation and maintenance 
of the aircraft conveyed shall be borne by the W.A.S.P. Museum.
    (e) Additional Terms and Conditions.--The Secretary may require such 
additional terms and conditions in connection with a conveyance under 
this section as the Secretary considers appropriate to protect the 
interests of the United States.

[[Page 116 STAT. 2660]]

SEC. 1069. INCREASE IN AMOUNT AUTHORIZED TO BE EXPENDED FOR DEPARTMENT 
            OF DEFENSE PROGRAM TO COMMEMORATE 50TH ANNIVERSARY OF THE 
            KOREAN WAR.

    Section 1083(f)(2) of the National Defense Authorization Act for 
Fiscal Year 1998 (10 U.S.C. 113 note) is amended by striking 
``$7,000,000'' and inserting ``$10,000,000''.

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Sec. 1101. Eligibility of Department of Defense nonappropriated fund 
           employees for long-term care insurance.
Sec. 1102. Extension of Department of Defense authority to make lump-sum 
           severance payments.
Sec. 1103. Continuation of Federal Employee Health Benefits Program 
           eligibility.
Sec. 1104. Certification for Department of Defense professional 
           accounting positions.

SEC. 1101. ELIGIBILITY OF DEPARTMENT OF DEFENSE NONAPPROPRIATED FUND 
            EMPLOYEES FOR LONG-TERM CARE INSURANCE.

    (a) In General.--Section 9001(1) of title 5, United States Code, is 
amended--
            (1) in subparagraph (B), by striking ``and'';
            (2) in subparagraph (C), by striking the comma at the end 
        and inserting ``; and''; and
            (3) by inserting after subparagraph (C) the following new 
        subparagraph:
                    ``(D) an employee of a nonappropriated fund 
                instrumentality of the Department of Defense described 
                in section 2105(c),''.

    (b) Discretionary Authority.--Section 9002 of such title is 
amended--
            (1) by redesignating subsections (b), (c), (d), and (e) as 
        subsections (c), (d), (e), and (f), respectively; and
            (2) by inserting after subsection (a) the following new 
        subsection (b):

    ``(b) Discretionary Authority Regarding Nonappropriated Fund 
Instrumentalities.--The Secretary of Defense may determine that a 
nonappropriated fund instrumentality of the Department of Defense is 
covered under this chapter or is covered under an alternative long-term 
care insurance program.''.

SEC. 1102. EXTENSION OF DEPARTMENT OF DEFENSE AUTHORITY TO MAKE LUMP-SUM 
            SEVERANCE PAYMENTS.

    (a) In General.--Section 5595(i)(4) of title 5, United States Code, 
is amended by striking ``2003'' and inserting ``2006''.
    (b) Report.--Not <<NOTE: Deadline. 5 USC 5595 note.>> later than one 
year after the date of the enactment of this Act, the President shall 
submit to the Committees on Armed Services and on Governmental Affairs 
of the Senate and the Committees on Armed Services and on Government 
Reform of the House of Representatives a report, including 
recommendations, on whether the authority under section 5595(i) of title 
5, United States Code, should be made permanent or expanded to be made 
Governmentwide.

[[Page 116 STAT. 2661]]

SEC. 1103. CONTINUATION OF FEDERAL EMPLOYEE HEALTH BENEFITS PROGRAM 
            ELIGIBILITY.

    Paragraph (4)(B) of section 8905a(d) of title 5, United States Code, 
is amended--
            (1) in clause (i), by striking ``2003'' and inserting 
        ``2006''; and
            (2) in clause (ii)--
                    (A) by striking ``2004'' and inserting ``2007''; and
                    (B) by striking ``2003'' and inserting ``2006''.

SEC. 1104. CERTIFICATION FOR DEPARTMENT OF DEFENSE PROFESSIONAL 
            ACCOUNTING POSITIONS.

    (a) In General.--(1) Chapter 81 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 1599d. Professional accounting positions: authority to prescribe 
                        certification and credential standards

    ``(a) Authority To Prescribe Professional Certification Standards.--
The Secretary of Defense may prescribe professional certification and 
credential standards for professional accounting positions within the 
Department of Defense. Any such standard shall be prescribed as a 
Department of Defense regulation.
    ``(b) Waiver Authority.--The Secretary may waive any standard 
prescribed under subsection (a) whenever the Secretary determines such a 
waiver to be appropriate.
    ``(c) Applicability.--A standard prescribed under subsection (a) 
shall not apply to any person employed by the Department of Defense 
before the standard is prescribed.
    ``(d) Report.--The Secretary of Defense shall submit to Congress a 
report on the Secretary's plans to provide training to appropriate 
Department of Defense personnel to meet any new professional and 
credential standards prescribed under subsection (a). Such report shall 
be prepared in conjunction with the Director of the Office of Personnel 
Management. <<NOTE: Deadline.>> Such a report shall be submitted not 
later than one year after the effective date of any regulations, or any 
revision to regulations, prescribed pursuant to subsection (a).

    ``(e) Definition.--In this section, the term `professional 
accounting position' means a position or group of positions in the GS-
510, GS-511, and GS-505 series that involves professional accounting 
work.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``1599d. Professional accounting positions: authority to prescribe 
           certification and credential standards.''.

    (b) Effective <<NOTE: 10 USC 1599d note.>> Date.--Standards 
established pursuant to section 1599d of title 10, United States Code, 
as added by subsection (a), may take effect no sooner than 120 days 
after the date of the enactment of this Act.

[[Page 116 STAT. 2662]]

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

Sec. 1201. Authority to provide administrative services and support for 
           coalition liaison officers.
Sec. 1202. Authority to pay for certain travel of defense personnel of 
           countries participating in NATO Partnership for Peace 
           program.
Sec. 1203. Limitation on funding for Joint Data Exchange Center in 
           Moscow.
Sec. 1204. Support of United Nations-sponsored efforts to inspect and 
           monitor Iraqi weapons activities.
Sec. 1205. Comprehensive annual report to Congress on coordination and 
           integration of all United States nonproliferation activities.
Sec. 1206. Report requirement regarding Russian proliferation to Iran 
           and other countries of proliferation concern.
Sec. 1207. Monitoring of implementation of 1979 agreement between the 
           United States and China on cooperation in science and 
           technology.
Sec. 1208. Extension of certain counterproliferation activities and 
           programs.
Sec. 1209. Semiannual report by Director of Central Intelligence on 
           contributions by foreign persons to efforts by countries of 
           proliferation concern to obtain weapons of mass destruction 
           and their delivery systems.
Sec. 1210. Report on feasibility and advisability of senior officer 
           exchanges between the Armed Forces of the United States and 
           the military forces of Taiwan.
Sec. 1211. Report on United States force structure in the Pacific. 

SEC. 1201. AUTHORITY TO PROVIDE ADMINISTRATIVE SERVICES AND SUPPORT FOR 
            COALITION LIAISON OFFICERS.

    (a) Authority.--(1) Chapter 53 of title 10, United States Code, is 
amended by inserting after section 1051 the following new section:

``Sec. 1051a. Coalition liaison officers: administrative services and 
                        support; travel, subsistence, and other personal 
                        expenses

    ``(a) Authority.--The Secretary of Defense may provide 
administrative services and support for the performance of duties by a 
liaison officer of another nation involved in a coalition with the 
United States while the liaison officer is assigned temporarily to the 
headquarters of a combatant command, component command, or subordinate 
operational command of the United States in connection with the planning 
for, or conduct of, a coalition operation.
    ``(b) Travel and Subsistence Expenses.--(1) The Secretary may pay 
the expenses specified in paragraph (2) of a liaison officer of a 
developing country in connection with the assignment of that officer to 
the headquarters of a combatant command as described in subsection (a), 
if the assignment is requested by the commander of the combatant 
command.
    ``(2) Expenses of a liaison officer that may be paid under paragraph 
(1) in connection with an assignment described in that paragraph are the 
following:
            ``(A) Travel and subsistence expenses.
            ``(B) Personal expenses directly necessary to carry out the 
        duties of that officer in connection with that assignment.

    ``(c) Reimbursement.--To the extent that the Secretary determines 
appropriate, the Secretary may provide the services and support 
authorized by subsection (a) and the expenses authorized by subsection 
(b) with or without reimbursement from (or on behalf of) the recipients.
    ``(d) Definitions.--In this section:
            ``(1) The term `administrative services and support' 
        includes base or installation support services, office space, 
        utilities,

[[Page 116 STAT. 2663]]

        copying services, fire and police protection, and computer 
        support.
            ``(2) The term `coalition' means an ad hoc arrangement 
        between or among the United States and one or more other nations 
        for common action.

    ``(e) Expiration of Authority.--The authority under this section 
shall expire on September 30, 2005.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1051 the 
following new item:

``1051a. Coalition liaison officers: administrative services and 
           support; travel, subsistence, and other personal expenses.''.

    (b) GAO <<NOTE: Deadline. 10 USC 1051a note.>> Report.--Not later 
than March 1, 2005, the Comptroller General shall submit to the 
Committees on Armed Services of the Senate and House of Representatives 
a report providing an assessment of the implementation of section 1051a 
of title 10, United States Code, as added by subsection (a). The 
assessment shall include the following:
            (1) A description of the benefits to coalition operations of 
        the authority provided by that section.
            (2) A statement of the cost to the Department of Defense of 
        the use of the authority provided by that section.
            (3) A summary of activities carried out under the authority 
        provided by that section, including (A) the number of liaison 
        officers for whom administrative services and support or 
        expenses were provided under that authority and their countries 
        of origin, and (B) the type of services, support, and expenses 
        provided.

SEC. 1202. AUTHORITY TO PAY FOR CERTAIN TRAVEL OF DEFENSE PERSONNEL OF 
            COUNTRIES PARTICIPATING IN NATO PARTNERSHIP FOR PEACE 
            PROGRAM.

    (a) Authority for Use of Funds.--Section 1051(b) of title 10, United 
States Code, is amended--
            (1) in paragraph (1), by striking ``paragraph (2)'' and 
        inserting ``paragraphs (2) and (3)'';
            (2) by redesignating paragraph (3) as paragraph (4); and
            (3) by inserting after paragraph (2) the following new 
        paragraph (3):

    ``(3) In the case of defense personnel of a developing country that 
is not a member of the North Atlantic Treaty Organization and that is 
participating in the Partnership for Peace program of the North Atlantic 
Treaty Organization (NATO), expenses authorized to be paid under 
subsection (a) may be paid in connection with travel of personnel to the 
territory of any of the countries participating in the Partnership for 
Peace program or the territory of any NATO member country.''.
    (b) Effective <<NOTE: 10 USC 1051 note.>> Date.--The amendments made 
by subsection (a) shall apply only with respect to travel performed on 
or after the date of the enactment of this Act.

SEC. 1203. LIMITATION ON FUNDING FOR JOINT DATA EXCHANGE CENTER IN 
            MOSCOW.

    (a) Limitation.--Not more than 50 percent of the funds made 
available to the Department of Defense for fiscal year 2003 for 
activities associated with the Joint Data Exchange Center in

[[Page 116 STAT. 2664]]

Moscow, Russia, may be obligated or expended for any such activity 
until--
            (1) the United States and the Russian Federation enter into 
        a cost-sharing agreement as described in subsection (d) of 
        section 1231 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-329);
            (2) the United States and the Russian Federation enter into 
        an agreement or agreements exempting the United States and any 
        United States person from Russian taxes, and from liability 
        under Russian laws, with respect to activities associated with 
        the Joint Data Exchange Center;
            (3) the Secretary of Defense submits to the Committee on 
        Armed Services of the Senate and the Committee on Armed Services 
        of the House of Representatives a copy of each agreement 
        referred to in paragraphs (1) and (2); and
            (4) a period of 30 days has expired after the date of the 
        final submission under paragraph (3).

    (b) Joint Data Exchange Center.--For purposes of this section, the 
term ``Joint Data Exchange Center'' means the United States-Russian 
Federation joint center for the exchange of data to provide early 
warning of launches of ballistic missiles and for notification of such 
launches that is provided for in a joint United States-Russian 
Federation memorandum of agreement signed in Moscow in June 2000.

SEC. 1204. SUPPORT OF UNITED NATIONS-SPONSORED EFFORTS TO INSPECT AND 
            MONITOR IRAQI WEAPONS ACTIVITIES.

    (a) Limitation on Amount of Assistance in Fiscal Year 2003.--The 
total amount of the assistance for fiscal year 2003 that is provided by 
the Secretary of Defense under section 1505 of the Weapons of Mass 
Destruction Control Act of 1992 (22 U.S.C. 5859a) as activities of the 
Department of Defense in support of activities under that Act may not 
exceed $15,000,000.
    (b) Extension of Authority To Provide Assistance.--Subsection (f) of 
section 1505 of the Weapons of Mass Destruction Control Act of 1992 (22 
U.S.C. 5859a) is amended by striking ``2002'' and inserting ``2003''.

SEC. 1205. <<NOTE: 22 USC 5952 note.>> COMPREHENSIVE ANNUAL REPORT TO 
            CONGRESS ON COORDINATION AND INTEGRATION OF ALL UNITED 
            STATES NONPROLIFERATION ACTIVITIES.

    Section 1205 of the National Defense Authorization Act for Fiscal 
Year 2002 (Public Law 107-107; 115 Stat. 1247) is amended by adding at 
the end the following new subsection:
    ``(d) Annual <<NOTE: Deadline.>> Report on Implementation of Plan.--
(1) Not later than January 31, 2003, and each year thereafter, the 
President shall submit to Congress a report on the implementation of the 
plan required by subsection (a) during the preceding year.

    ``(2) Each report under paragraph (1) shall include--
            ``(A) a discussion of progress made during the year covered 
        by such report in the matters of the plan required by subsection 
        (a);
            ``(B) a discussion of consultations with foreign nations, 
        and in particular the Russian Federation, during such year on 
        joint programs to implement the plan;
            ``(C) a discussion of cooperation, coordination, and 
        integration during such year in the implementation of the plan 
        among

[[Page 116 STAT. 2665]]

        the various departments and agencies of the United States 
        Government, as well as private entities that share objectives 
        similar to the objectives of the plan; and
            ``(D) any recommendations that the President considers 
        appropriate regarding modifications to law or regulations, or to 
        the administration or organization of any Federal department or 
        agency, in order to improve the effectiveness of any programs 
        carried out during such year in the implementation of the 
        plan.''.

SEC. 1206. <<NOTE: 22 USC 5952 note.>> REPORT REQUIREMENT REGARDING 
            RUSSIAN PROLIFERATION TO IRAN AND OTHER COUNTRIES OF 
            PROLIFERATION CONCERN.

    (a) Report <<NOTE: Deadline. President.>> Requirement.--Not later 
than March 15 of 2003 through 2009, the President shall submit to 
Congress a report (in unclassified and classified form as necessary) 
describing in detail Russian proliferation of weapons of mass 
destruction and ballistic missile goods, technology, expertise, and 
information, and of dual-use items that may contribute to the 
development of weapons of mass destruction and ballistic missiles, to 
Iran and to other countries of proliferation concern during the year 
preceding the year in which the report is submitted. The report shall 
include a detailed description of the following, for the year covered by 
the report:
            (1) The number, type, and quality of direct and dual-use 
        weapons of mass destruction and ballistic missile goods, 
        technology, expertise, and information transferred.
            (2) The form, location, and manner in which such transfers 
        took place.
            (3) The contribution that such transfers could make to the 
        recipient countries' weapons of mass destruction and ballistic 
        missile programs, and an estimate of how soon such countries 
        will test, possess, and deploy weapons of mass destruction and 
        ballistic missiles.
            (4) The impact and consequences that such transfers have, 
        and could have over the next 10 years--
                    (A) on United States national security;
                    (B) on United States military forces deployed in the 
                region to which such transfers are being made;
                    (C) on United States allies, friends, and interests 
                in that region; and
                    (D) on the military capabilities of the country 
                receiving such transfers from Russia.
            (5) The policy and strategy that the President intends to 
        employ to halt Russian proliferation, the policy tools that the 
        President intends to use to carry out that policy and strategy, 
        the rationale for employing such tools, and the timeline by 
        which the President expects to see material progress in ending 
        Russian proliferation of direct and dual-use weapons of mass 
        destruction and missile goods, technology, expertise, and 
        information.

    (b) Definition.--In this section, the term ``country of 
proliferation concern'' means any country identified by the Director of 
Central Intelligence as having engaged in the acquisition of dual-use 
and other technology useful for the development or production

[[Page 116 STAT. 2666]]

of weapons of mass destruction (including nuclear weapons, chemical 
weapons, and biological weapons) or advanced conventional munitions--
            (1) in the most recent report under section 721 of the 
        Combatting Proliferation of Weapons of Mass Destruction Act of 
        1996 (title VII of Public Law 104-293; 50 U.S.C. 2366); or
            (2) in any successor report on the acquisition by foreign 
        countries of dual-use and other technology useful for the 
        development or production of weapons of mass destruction.

SEC. 1207. <<NOTE: 22 USC 6901 note.>> MONITORING OF IMPLEMENTATION OF 
            1979 AGREEMENT BETWEEN THE UNITED STATES AND CHINA ON 
            COOPERATION IN SCIENCE AND TECHNOLOGY.

    (a) In General.--The Secretary of State shall--
            (1) monitor the implementation of the Agreement specified in 
        subsection (c);
            (2) keep a systematic account of the protocols to the 
        Agreement;
            (3) coordinate the activities of all agencies of the United 
        States Government that carry out cooperative activities under 
        the Agreement; and
            (4) ensure that all activities conducted under the Agreement 
        comply with applicable laws and regulations concerning the 
        transfer of militarily sensitive technologies and dual-use 
        technologies.

    (b) Responsibilities of the Office of Science and Technology 
Cooperation.--Except as otherwise provided by the Secretary of State, 
the functions of the Secretary under this section shall be carried out 
through the Director of the Office of Science and Technology Cooperation 
of the Department of State.
    (c) Agreement Defined.--For purposes of this section, the term 
``Agreement'' means the agreement between the United States and the 
People's Republic of China known as the ``Agreement between the 
Government of the United States of America and the Government of the 
People's Republic of China on Cooperation in Science and Technology'', 
signed in Washington on January 31, 1979, and its protocols.
    (d) Biennial <<NOTE: Deadline.>> Report to Congress.--(1) Not later 
than April 1 of each even-numbered year, the Secretary of State shall 
submit to Congress a report on the implementation of the Agreement and 
on activities under the Agreement. Each such report shall be submitted 
in both classified and unclassified form, as necessary.

    (2) Each report under this subsection shall provide an evaluation of 
the benefits of the Agreement to the economy, to the military, and to 
the industrial base of the People's Republic of China and shall include 
the following:
            (A) An accounting of all activities conducted under the 
        Agreement since the previous report (or, in the case of the 
        first report, since the Agreement was entered into) and a 
        projection of activities to be undertaken under the Agreement 
        during the next two years.
            (B) An estimate of the costs to the United States to 
        administer the Agreement during the period covered by the 
        report.
            (C) An assessment of how the Agreement has influenced the 
        foreign and domestic policies of the People's Republic of

[[Page 116 STAT. 2667]]

        China and the policy of the People's Republic of China toward 
        scientific and technological cooperation with the United States.
            (D) An analysis by the Director of Central Intelligence of 
        the involvement of military specialists, weapons specialists, 
        and intelligence specialists of the People's Republic of China 
        in the activities of the Joint Commission established under the 
        Agreement and in other activities conducted under the Agreement.
            (E) A determination by the Secretary of Defense, developed 
        with the assistance of the Director of Central Intelligence, of 
        the extent to which the activities conducted under the Agreement 
        have enhanced the military and defense industrial base of the 
        People's Republic of China, and an assessment of the effect that 
        projected activities under the Agreement for the next two years, 
        including the transfer of technology and know-how, could have on 
        the economic and military capabilities of the People's Republic 
        of China.
            (F) An assessment by the Inspector General of the Department 
        of Commerce of--
                    (i) the extent to which programs or activities 
                carried out under the Agreement provide access to 
                technology, information, or know-how that could enhance 
                military capabilities of the People's Republic of China; 
                and
                    (ii) the extent to which those programs or 
                activities are carried out in compliance with export 
                control laws and regulations of the United States, 
                especially those laws and regulations governing so-
                called ``deemed exports''.
            (G) Any recommendations of the Secretary of State, Secretary 
        of Defense, or Director of Central Intelligence for improving 
        the monitoring of the activities of the Joint Commission 
        established under the Agreement.

    (3) The Secretary of State shall prepare each report under this 
subsection in consultation with the Secretary of Defense, the Secretary 
of Energy, the Director of Central Intelligence, the Director of the 
Federal Bureau of Investigation, and the Director of the National 
Science Foundation.
    (e) Interagency Working Group.--The President shall establish an 
interagency working group to oversee the implementation of the Agreement 
by departments and agencies of the United States. The working group 
shall consist of representatives of such departments, agencies, and 
offices of the executive branch as the President considers appropriate. 
The working group shall perform the following functions:
            (1) Assisting the Secretary of State and other appropriate 
        officials in setting standards under the Agreement for science 
        and technology transfers between the United States and the 
        People's Republic of China.
            (2) Monitoring ongoing programs and activities under the 
        Agreement and recommending future programs and activities under 
        the Agreement.
            (3) Developing a comprehensive database of all government-
        to-government programs and United States Government-funded 
        programs under the Agreement.
            (4) Coordinating activities under the Agreement between 
        United States Government agencies, including elements of the 
        intelligence community, as appropriate.

[[Page 116 STAT. 2668]]

SEC. 1208. EXTENSION OF CERTAIN COUNTERPROLIFERATION ACTIVITIES AND 
            PROGRAMS.

    (a) Extension of Interagency Counterproliferation Program Review 
Committee.--Section 1605(f) of the National Defense Authorization Act 
for Fiscal Year 1994 (22 U.S.C. 2751 note) is amended by striking 
``September 30, 2004'' and inserting ``September 30, 2008''.
    (b) Later Deadline for Submission of Annual Report.--Subsection (a) 
of section 1503 of the National Defense Authorization Act for Fiscal 
Year 1995 (22 U.S.C. 2751 note) is amended by striking ``February 1 of 
each year'' and inserting ``May 1 each year''.
    (c) Additional Matters To Be Included in Annual Report.--Subsection 
(b) of such section is amended by adding at the end the following new 
paragraph:
            ``(8) A discussion of the limitations and impediments to the 
        biological weapons counterproliferation efforts of the 
        Department of Defense (including legal, policy, and resource 
        constraints) and recommendations for the removal or mitigation 
        of such impediments and for ways to make such efforts more 
        effective.''.

    (d) Technical Amendment To Reflect Change in Position Title.--
Section 1605(a)(4) of the National Defense Authorization Act for Fiscal 
Year 1994 (22 U.S.C. 2751 note) is amended by striking ``Under Secretary 
of Defense for Acquisition and Technology'' in the first sentence and 
inserting ``Under Secretary of Defense for Acquisition, Technology, and 
Logisitics''.

SEC. 1209. SEMIANNUAL REPORT BY DIRECTOR OF CENTRAL INTELLIGENCE ON 
            CONTRIBUTIONS BY FOREIGN PERSONS TO EFFORTS BY COUNTRIES OF 
            PROLIFERATION CONCERN TO OBTAIN WEAPONS OF MASS DESTRUCTION 
            AND THEIR DELIVERY SYSTEMS.

    (a) Content of Semiannual Report.--The Combatting Proliferation of 
Weapons of Mass Destruction Act of 1996 (title VII of Public Law 104-
293) is amended by inserting after section 721 (50 U.S.C. 2366) the 
following new section:

``SEC. 722. SEMIANNUAL REPORT ON CONTRIBUTIONS OF FOREIGN PERSONS TO 
            WEAPONS OF MASS DESTRUCTION AND DELIVERY SYSTEMS EFFORTS OF 
            COUNTRIES OF PROLIFERATION CONCERN.

    ``(a) Reports.--The <<NOTE: 50 USC 2369.>> Director of Central 
Intelligence shall submit to Congress a semiannual report identifying 
each foreign person that, during the period covered by the report, made 
a material contribution to the research, development, production, or 
acquisition by a country of proliferation concern of--
            ``(1) weapons of mass destruction (including nuclear 
        weapons, chemical weapons, or biological weapons); or
            ``(2) ballistic or cruise missile systems.

    ``(b) Period of Semiannual Reports.--Semiannual reports under 
subsection (a) shall be submitted as follows:
            ``(1) <<NOTE: Deadline.>> One semiannual report shall cover 
        the first six months of the calendar year and shall be submitted 
        not later than January 1 of the following year.

[[Page 116 STAT. 2669]]

            ``(2) <<NOTE: Deadline.>> The other semiannual report shall 
        cover the second six months of the calendar year and shall be 
        submitted not later than July 1 of the following year.

    ``(c) Form of Reports.--(1) A report under subsection (a) may be 
submitted in classified form, in whole or in part, if the Director of 
Central Intelligence determines that submittal in that form is 
advisable.
    ``(2) Any portion of a report under subsection (a) that is submitted 
in classified form shall be accompanied by an unclassified summary of 
such portion.
    ``(d) Definitions.--In this section:
            ``(1) The term `foreign person' means any of the following:
                    ``(A) A natural person who is not a citizen of the 
                United States.
                    ``(B) A corporation, business association, 
                partnership, society, trust, or other nongovernmental 
                entity, organization, or group that is organized under 
                the laws of a foreign country or has its principal place 
                of business in a foreign country.
                    ``(C) Any foreign government or foreign governmental 
                entity operating as a business enterprise or in any 
                other capacity.
                    ``(D) Any successor, subunit, or subsidiary of any 
                entity described in subparagraph (B) or (C).
            ``(2) The term `country of proliferation concern' means any 
        country identified by the Director of Central Intelligence as 
        having engaged in the acquisition of dual-use and other 
        technology useful for the development or production of weapons 
        of mass destruction (including nuclear weapons, chemical 
        weapons, and biological weapons) or advanced conventional 
        munitions--
                    ``(A) in the most recent report under section 721; 
                or
                    ``(B) in any successor report on the acquisition by 
                foreign countries of dual-use and other technology 
                useful for the development or production of weapons of 
                mass destruction.''.

    (b) Effective <<NOTE: 50 USC 2369 note.>> Date.--Section 722 of the 
Combatting Proliferation of Weapons of Mass Destruction Act of 1996, as 
added by subsection (a), shall take effect with the report with respect 
to the first six months of 2003 required to be submitted under that 
section not later than January 1, 2004.

SEC. 1210. REPORT ON FEASIBILITY AND ADVISABILITY OF SENIOR OFFICER 
            EXCHANGES BETWEEN THE ARMED FORCES OF THE UNITED STATES AND 
            THE MILITARY FORCES OF TAIWAN.

    (a) Presidential <<NOTE: Deadline. President.>> Report.--Not later 
than 180 days after the date of the enactment of this Act, the President 
shall submit to Congress a report on--
            (1) the feasibility and advisability of conducting combined 
        operational training with, and exchanges of general and flag 
        officers between, the Armed Forces of the United States and the 
        military forces of Taiwan; and
            (2) the progress being made in meeting United States 
        commitments to the security of Taiwan.

[[Page 116 STAT. 2670]]

    (b) Classification of Report.--The report required by this section 
shall be submitted in unclassified form and, as necessary, in classified 
form.

SEC. 1211. REPORT ON UNITED STATES FORCE STRUCTURE IN THE PACIFIC.

    (a) Secretary <<NOTE: Deadline.>> of Defense Report.--Not later than 
180 days after the date of the enactment of this Act, the Secretary of 
Defense shall submit to Congress a report on the plans of the Department 
of Defense to maintain adequate United States force structure in the 
Pacific, including any efforts (1) to augment current basing 
arrangements, and (2) to implement the recommendations from the most 
recent Quadrennial Defense Review to improve United States military 
capabilities in the Pacific.

    (b) Classification of Report.--The report required by this section 
shall be submitted in unclassified form and, as necessary, in classified 
form.

   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. Prohibition against use of funds until submission of reports.
Sec. 1304. Report on use of revenue generated by activities carried out 
           under Cooperative Threat Reduction programs.
Sec. 1305. Prohibition against use of funds for second wing of fissile 
           material storage facility.
Sec. 1306. Limited waiver of restrictions on use of funds for threat 
           reduction in states of the former Soviet Union.

SEC. 1301. SPECIFICATION OF COOPERATIVE THREAT REDUCTION PROGRAMS AND 
            FUNDS.

    (a) Specification <<NOTE: 22 USC 5952 note.>> of CTR Programs.--For 
purposes of section 301 and other provisions of this Act, Cooperative 
Threat Reduction programs are the programs specified in section 1501(b) 
of the National Defense Authorization Act for Fiscal Year 1997 (Public 
Law 104-201; 110 Stat. 2731; 50 U.S.C. 2362 note).

    (b) Fiscal Year 2003 Cooperative Threat Reduction Funds Defined.--As 
used in this title, the term ``fiscal year 2003 Cooperative Threat 
Reduction funds'' means the funds appropriated pursuant to the 
authorization of appropriations in section 301 for Cooperative Threat 
Reduction programs.
    (c) Availability of Funds.--Funds appropriated pursuant to the 
authorization of appropriations in section 301 for Cooperative Threat 
Reduction programs shall be available for obligation for three fiscal 
years.

SEC. 1302. FUNDING ALLOCATIONS.

    (a) Funding for Specific Purposes.--Of the $416,700,000 authorized 
to be appropriated to the Department of Defense for fiscal year 2003 in 
section 301(23) for Cooperative Threat Reduction programs, the following 
amounts may be obligated for the purposes specified:
            (1) For strategic offensive arms elimination in Russia, 
        $70,500,000.

[[Page 116 STAT. 2671]]

            (2) For strategic nuclear arms elimination in Ukraine, 
        $6,500,000.
            (3) For nuclear weapons transportation security in Russia, 
        $19,700,000.
            (4) For nuclear weapons storage security in Russia, 
        $40,000,000.
            (5) For activities designated as Other Assessments/
        Administrative Support, $14,700,000.
            (6) For defense and military contacts, $18,900,000.
            (7) For weapons of mass destruction infrastructure 
        elimination activities in Kazakhstan, $9,000,000.
            (8) For weapons of mass destruction infrastructure 
        elimination activities in Ukraine, $8,800,000.
            (9) For chemical weapons destruction in Russia, $50,000,000.
            (10) For biological weapons proliferation prevention in the 
        former Soviet Union, $55,000,000.
            (11) For weapons of mass destruction proliferation 
        prevention in the States of the former Soviet Union, 
        $40,000,000.

    (b) Additional Funds Authorized for Certain Purposes.--Of the funds 
authorized to be appropriated to the Department of Defense for fiscal 
year 2003 in section 301(23) for Cooperative Threat Reduction programs, 
$83,600,000 may be obligated for any of the purposes specified in 
paragraphs (1) through (4) and (9) of subsection (a) in addition to the 
amounts specifically authorized in such paragraphs.
    (c) Report on Obligation or Expenditure of Funds for Other 
Purposes.--No fiscal year 2003 Cooperative Threat Reduction funds may be 
obligated or expended for a purpose other than a purpose listed in 
paragraphs (1) through (11) of subsection (a) until 30 days after the 
date that the Secretary of Defense submits to Congress a report on the 
purpose for which the funds will be obligated or expended and the amount 
of funds to be obligated or expended. Nothing in the preceding sentence 
shall be construed as authorizing the obligation or expenditure of 
fiscal year 2003 Cooperative Threat Reduction funds for a purpose for 
which the obligation or expenditure of such funds is specifically 
prohibited under this title or any other provision of law.
    (d) Limited Authority To Vary Individual Amounts.--(1) Subject to 
paragraphs (2) and (3), in any case in which the Secretary of Defense 
determines that it is necessary to do so in the national interest, the 
Secretary may obligate amounts appropriated for fiscal year 2003 for a 
purpose listed in any of the paragraphs in subsection (a) in excess of 
the specific amount authorized for that purpose.
    (2) An obligation of funds for a purpose stated in any of the 
paragraphs in subsection (a) in excess of the specific amount authorized 
for such purpose may be made using the authority provided in paragraph 
(1) only after--
            (A) the Secretary submits to Congress notification of the 
        intent to do so together with a complete discussion of the 
        justification for doing so; and
            (B) 15 days have elapsed following the date of the 
        notification.

    (3) The Secretary may not, under the authority provided in paragraph 
(1), obligate amounts for a purpose stated in any of paragraphs (5) 
through (10) of subsection (a) in excess of 125 percent of the specific 
amount authorized for such purpose.

[[Page 116 STAT. 2672]]

    (4) In this section, the term ``specific amount authorized'' means, 
with respect to a purpose listed in any paragraph in subsection (a)--
            (A) the amount specifically authorized for that purpose in 
        subsection (a), plus
            (B) in the case of a purpose listed in paragraph (1), (2), 
        (3), (4), or (9) of subsection (a), any amount obligated under 
        subsection (b) for that purpose.

SEC. 1303. PROHIBITION AGAINST USE OF FUNDS UNTIL SUBMISSION OF REPORTS.

    Not more than 50 percent of fiscal year 2003 Cooperative Threat 
Reduction funds may be obligated or expended until 30 days after the 
date of the submission of--
            (1) the report required to be submitted in fiscal year 2002 
        under section 1308(a) 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-341); and
            (2) the update for the multiyear plan required to be 
        submitted for fiscal year 2001 under section 1205 of the 
        National Defense Authorization Act for Fiscal Year 1995 (Public 
        Law 103-337; 22 U.S.C. 5952 note).

SEC. 1304. REPORT ON USE OF REVENUE GENERATED BY ACTIVITIES CARRIED OUT 
            UNDER COOPERATIVE THREAT REDUCTION PROGRAMS.

    (a) Additional Report Requirements.--Section 1308(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-341) <<NOTE: 22 
USC 5959.>> is amended by inserting at the end the following new 
paragraphs:
            ``(6) To the maximum extent practicable, a description of 
        how revenue generated by activities carried out under 
        Cooperative Threat Reduction programs in recipient States is 
        being utilized, monitored, and accounted for.
            ``(7) A description of the defense and military activities 
        carried out under Cooperative Threat Reduction programs during 
        the fiscal year ending in the year preceding the year of the 
        report, including--
                    ``(A) the amounts obligated or expended for such 
                activities;
                    ``(B) the purposes, goals, and objectives for which 
                such amounts were obligated and expended;
                    ``(C) a description of the activities carried out, 
                including the forms of assistance provided, and the 
                justification for each form of assistance provided;
                    ``(D) the success of each activity, including the 
                goals and objectives achieved for each;
                    ``(E) a description of participation by private 
                sector entities in the United States in carrying out 
                such activities, and the participation of any other 
                Federal department or agency in such activities; and
                    ``(F) any other information that the Secretary 
                considers relevant to provide a complete description of 
                the operation and success of activities carried out 
                under Cooperative Threat Reduction programs.''.

[[Page 116 STAT. 2673]]

    (b) Effective <<NOTE: Applicability. 22 USC 5959 note. 22 USC 5952 
note.>> Date.--Paragraphs (6) and (7) of section 1308(c) of such Act, as 
added by subsection (a), shall apply beginning with the report submitted 
under that section in 2004.

SEC. 1305. PROHIBITION AGAINST USE OF FUNDS FOR SECOND WING OF FISSILE 
            MATERIAL STORAGE FACILITY.

    No funds authorized to be appropriated for Cooperative Threat 
Reduction programs for any fiscal year may be used for the design, 
planning, or construction of a second wing for a storage facility for 
Russian fissile material.

SEC. 1306. LIMITED WAIVER OF RESTRICTIONS ON USE OF FUNDS FOR THREAT 
            REDUCTION IN STATES OF THE FORMER SOVIET UNION.

    (a) Authority <<NOTE: 22 USC 5952 note.>> To Waive Restrictions and 
Eligibility Requirements.--If the President submits the certification 
and report described in subsection (b) with respect to an independent 
state of the former Soviet Union for a fiscal year--
            (1) the restrictions in subsection (d) of section 1203 of 
        the Cooperative Threat Reduction Act of 1993 (22 U.S.C. 5952) 
        shall cease to apply, and funds may be obligated and expended 
        under that section for assistance, to that state during that 
        fiscal year; and
            (2) funds may be obligated and expended during that fiscal 
        year under section 502 of the FREEDOM Support Act (22 U.S.C. 
        5852) for assistance or other programs and activities for that 
        state even if that state has not met one or more of the 
        requirements for eligibility under paragraphs (1) through (4) of 
        that section.

    (b) Certification and Report.--(1) The certification and report 
referred to in subsection (a) are a written certification submitted by 
the President to Congress that the waiver of the restrictions and 
requirements described in paragraphs (1) and (2) of that subsection 
during such fiscal year is important to the national security interests 
of the United States, together with a report containing the following:
            (A) A description of the activity or activities that prevent 
        the President from certifying that the state is committed to the 
        matters set forth in the provisions of law specified in 
        paragraphs (1) and (2) of subsection (a) in such fiscal year.
            (B) An explanation of why the waiver is important to the 
        national security interests of the United States.
            (C) A description of the strategy, plan, or policy of the 
        President for promoting the commitment of the state to, and 
        compliance by the state with, such matters, notwithstanding the 
        waiver.

    (2) The matter included in the report under paragraph (1) shall be 
submitted in unclassified form, but may include a classified annex.
    (c) Fiscal Years Covered.--The authority under subsection (a) shall 
apply only with respect to fiscal years 2003, 2004, and 2005.
    (d) Expiration of Authority.--The authority under subsection (a) 
shall expire on September 30, 2005.
    (e) Administration of Restrictions on Assistance.--Subsection (d) of 
section 1203 of the Cooperative Threat Reduction Act of 1993 (title XII 
of Public Law 103-160; 107 Stat. 1778; 22 U.S.C. 5952) is amended--

[[Page 116 STAT. 2674]]

            (1) by striking ``any year'' and inserting ``any fiscal 
        year''; and
            (2) by striking ``that year'' and inserting ``such fiscal 
        year''.

                      TITLE XIV--HOMELAND SECURITY

Sec. 1401. Transfer of technology items and equipment in support of 
           homeland security.
Sec. 1402. Comprehensive plan for improving the preparedness of military 
           installations for terrorist incidents.
Sec. 1403. Additional Weapons of Mass Destruction Civil Support Teams.
Sec. 1404. Report on the role of the Department of Defense in supporting 
           homeland security.
Sec. 1405. Sense of Congress on Department of Defense assistance to 
           local first responders.

SEC. 1401. <<NOTE: 50 USC 2312 note.>> TRANSFER OF TECHNOLOGY ITEMS AND 
            EQUIPMENT IN SUPPORT OF HOMELAND SECURITY.

    (a) Responsible Senior Official.--The Secretary of Defense shall 
designate a senior official of the Department of Defense to coordinate 
all Department of Defense efforts to identify, evaluate, deploy, and 
transfer to Federal, State, and local first responders technology items 
and equipment in support of homeland security.
    (b) Duties.--The official designated pursuant to subsection (a) 
shall--
            (1) identify technology items and equipment developed or 
        being developed by Department of Defense components that have 
        the potential to enhance public safety and improve homeland 
        security;
            (2) cooperate with appropriate Federal Government officials 
        outside the Department of Defense to evaluate whether such 
        technology items and equipment would be useful to first 
        responders;
            (3) facilitate the timely transfer, through identification 
        of appropriate private sector manufacturers, of appropriate 
        technology items and equipment to Federal, State, and local 
        first responders, in coordination with appropriate Federal 
        Government officials outside the Department of Defense;
            (4) identify and eliminate redundant and unnecessary 
        research efforts within the Department of Defense with respect 
        to technologies to be deployed to first responders;
            (5) expedite the advancement of high priority Department of 
        Defense projects from research through implementation of initial 
        manufacturing; and
            (6) participate in outreach programs established by 
        appropriate Federal Government officials outside the Department 
        of Defense to communicate with first responders and to 
        facilitate awareness of available technology items and equipment 
        to support responses to crises.

    (c) Support Agreement.--The official designated pursuant to 
subsection (a) shall enter into an appropriate agreement with a 
nongovernment entity for such entity to assist the official designated 
under subsection (a) in carrying out that official's duties under this 
section. Any such agreement shall be entered into using competitive 
procedures in compliance with applicable requirements of law and 
regulation.
    (d) Report.--Not <<NOTE: Deadline.>> later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense shall submit 
to 


[[Page 116 STAT. 2675]]

the congressional defense committees a report on the actions taken to 
carry out this section. The report shall include the following:
            (1) Identification of the senior official designated 
        pursuant to subsection (a).
            (2) A summary of the actions taken or planned to be taken to 
        implement subsection (b), including a schedule for planned 
        actions.
            (3) An initial list of technology items and equipment 
        identified pursuant to subsection (b)(1), together with a 
        summary of any program schedule for the development, deployment, 
        or transfer of such items and equipment.
            (4) A description of any agreement entered into pursuant to 
        subsection (c).

SEC. 1402. <<NOTE: 10 USC 113 note.>> COMPREHENSIVE PLAN FOR IMPROVING 
            THE PREPAREDNESS OF MILITARY INSTALLATIONS FOR TERRORIST 
            INCIDENTS.

    (a) Comprehensive Plan.--The Secretary of Defense shall develop a 
comprehensive plan for improving the preparedness of military 
installations for preventing and responding to terrorist attacks, 
including attacks involving the use or threat of use of weapons of mass 
destruction.
    (b) Preparedness Strategy.--The plan under subsection (a) shall 
include a preparedness strategy that includes each of the following:
            (1) Identification of long-term goals and objectives for 
        improving the preparedness of military installations for 
        preventing and responding to terrorist attacks.
            (2) Identification of budget and other resource requirements 
        necessary to achieve those goals and objectives.
            (3) Identification of factors beyond the control of the 
        Secretary that could impede the achievement of those goals and 
        objectives.
            (4) A discussion of the extent to which local, regional, or 
        national military response capabilities are to be developed, 
        integrated, and used.
            (5) A discussion of how the Secretary will coordinate the 
        capabilities referred to in paragraph (4) with local, regional, 
        or national civilian and other military capabilities.

    (c) Performance Plan.--The plan under subsection (a) shall include a 
performance plan that includes each of the following:
            (1) A reasonable schedule, with milestones, for achieving 
        the goals and objectives of the strategy under subsection (b).
            (2) Performance criteria for measuring progress in achieving 
        those goals and objectives.
            (3) A description of the process, together with a discussion 
        of the resources, necessary to achieve those goals and 
        objectives.
            (4) A description of the process for evaluating results in 
        achieving those goals and objectives.

    (d) Submittal to Congress.--The Secretary shall submit the 
comprehensive plan developed under subsection (a) 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.
    (e) Comptroller <<NOTE: Deadline.>> General Review and Report.--Not 
later than 60 days after the date on which the Secretary submits the 
comprehensive plan under subsection (a), the Comptroller General 


[[Page 116 STAT. 2676]]

shall review the plan and submit to the committees referred to in 
subsection (d) the Comptroller General's assessment of the plan.
    (f) Annual Report.--(1) In each of 2004, 2005, and 2006, the 
Secretary of Defense shall include a report on the comprehensive plan 
developed under subsection (a) with the materials that the Secretary 
submits to Congress in support of the budget submitted by the President 
that year pursuant to section 1105(a) of title 31, United States Code.
    (2) Each such report shall include--
            (A) a discussion of any revision that the Secretary has made 
        in the comprehensive plan developed under subsection (a) since 
        the last report under this subsection or, in the case of the 
        first such report, since the plan was submitted under subsection 
        (d); and
            (B) an assessment of the progress made in achieving the 
        goals and objectives of the strategy set forth in the plan.

    (3) If the Secretary includes in the report for 2004 or 2005 under 
this subsection a declaration that the goals and objectives of the 
preparedness strategy set forth in the comprehensive plan have been 
achieved, no further report is required under this subsection.

SEC. 1403. <<NOTE: 10 USC 12310 note.>> ADDITIONAL WEAPONS OF MASS 
            DESTRUCTION CIVIL SUPPORT TEAMS.

    (a) Establishment of Additional Teams.--The Secretary of Defense 
shall--
            (1) establish 23 additional teams designated as Weapons of 
        Mass Destruction Civil Support Teams, for a total of 55 such 
        teams; and
            (2) ensure that of such 55 teams, there is at least one team 
        established in each State and territory.

    (b) Plan.--Not later than 180 days after the date of the enactment 
of this Act, the Secretary shall submit to Congress a plan, in 
furtherance of subsection (a), for establishing at least one Weapons of 
Mass Destruction Civil Support Team in each State and territory that 
does not have such a team as of the date of the enactment of this Act. 
The plan shall include the following:
            (1) A schedule and budget for manning, training, and 
        equipping the new teams as rapidly as is possible without 
        jeopardizing the attainment of full effectiveness by the new 
        teams.
            (2) A discussion of whether the mission of the Weapons of 
        Mass Destruction Civil Support Teams should be expanded and, if 
        so, how.

    (c) Definitions.--For purposes of this section:
            (1) The term ``Weapons of Mass Destruction Civil Support 
        Team'' means a team of members of the reserve components of the 
        Armed Forces that is established under section 12310(c) of title 
        10, United States Code, in support of emergency preparedness 
        programs to prepare for or to respond to any emergency involving 
        the use of a weapon of mass destruction.
            (2) The term ``State and territory'' means each of the 
        several States, the District of Columbia, Puerto Rico, Guam, and 
        the Virgin Islands.

SEC. 1404. REPORT ON THE ROLE OF THE DEPARTMENT OF DEFENSE IN SUPPORTING 
            HOMELAND SECURITY.

    (a) Report <<NOTE: Deadline.>> Required.--Not later than March 1, 
2003, the Secretary of Defense shall submit to the congressional defense 



[[Page 116 STAT. 2677]]

committees a report on Department of Defense responsibilities, mission, 
and plans for military support of homeland security.
    (b) Contents of Report.--The report shall include, at a minimum, a 
discussion of the following:
            (1) The Department of Defense definition of its homeland 
        security mission, particularly with respect to how it relates to 
        providing military support to civil authorities, managing the 
        consequences of terrorist attacks, and homeland defense, and the 
        actions the Department is taking to implement the homeland 
        security mission as so defined.
            (2) Changes in the roles, missions, responsibilities, 
        organization, and capabilities of the following organizations in 
        order to conduct their homeland security support mission, and 
        the reasons for such changes:
                    (A) The Office of the Secretary of Defense.
                    (B) The Army, Navy, Air Force, and Marine Corps.
                    (C) The Army National Guard and the Air National 
                Guard.
                    (D) The combatant commands of the Department of 
                Defense.
            (3) The relationship between the Department of Defense, 
        including its combatant commands, and the following with regard 
        to homeland security:
                    (A) Other departments and agencies of the Federal 
                Government.
                    (B) State and local governments.
                    (C) The National Guard and Reserve components.
            (4) The current capability of the Department of Defense to 
        respond to terrorist attacks employing chemical, biological, 
        radiological, nuclear, high explosive or cyberterrorism weapons 
        against personnel and critical infrastructure of the Department, 
        including identification of the goals of the Department for 
        being fully capable of responding to such attacks, current 
        deficiencies in that capability, the resources required to 
        achieve that capability, and a long-term plan to reach that 
        capability.
            (5) The roles, missions, and responsibilities of the 
        intelligence components of the Department of Defense in support 
        of its homeland security mission, including the policies and 
        plans for--
                    (A) collecting and analyzing information related to 
                homeland security;
                    (B) sharing that information with other agencies of 
                the Federal Government; and
                    (C) preparing threat and risk assessments and 
                issuing warnings.
            (6) A discussion of plans of the Department of Defense for 
        training, exercising, and preparing to perform its homeland 
        security mission, including--
                    (A) individual and collective training for civilian 
                and military personnel of the Department involved in 
                homeland security;
                    (B) integrated training with other agencies of the 
                Federal Government, and with State and local 
                governments, as appropriate;
                    (C) interagency exercises and simulations; and

[[Page 116 STAT. 2678]]

                    (D) the development of a permanent ``terrorist 
                opposing force'' capable of challenging the Department's 
                plans, policies, and capabilities during training events 
                and exercises.
            (7) A discussion of how the Department of Defense biological 
        defense research program supports its homeland security mission.
            (8) A discussion of the efforts by the Department of Defense 
        to develop, either within the Department or through contracts 
        with private entities, anticyberterrorism technology, including 
        an assessment of whether and how such efforts should be 
        increased.
            (9) An assessment of the need for and feasibility of 
        developing and fielding Department of Defense regional chemical-
        biological incident response teams across the United States, 
        including options for providing the resources and personnel 
        necessary for developing and fielding any such teams.
            (10) A discussion of the Department of Defense plans and 
        efforts to place new emphasis on the unique operational demands 
        associated with homeland security while ensuring that defense of 
        the United States remains the primary mission of the Department 
        of Defense.
            (11) The resource constraints and legal impediments to 
        implementing any of the activities discussed under paragraphs 
        (1) through (10).

SEC. 1405. SENSE OF CONGRESS ON DEPARTMENT OF DEFENSE ASSISTANCE TO 
            LOCAL FIRST RESPONDERS.

    It is the sense of Congress that the Secretary of Defense should, to 
the extent the Secretary considers appropriate and feasible, provide 
assistance, in accordance with otherwise applicable provisions of law, 
to entities that are local first responders for domestic terrorist 
incidents in order to assist those entities in improving their 
capabilities to respond to such incidents.

   TITLE XV--AUTHORIZATION OF APPROPRIATIONS FOR THE WAR ON TERRORISM

Sec. 1501. Authorization of appropriations for continued operations for 
           the war on terrorism.
Sec. 1502. Mobilization and personnel.
Sec. 1503. Operations.
Sec. 1504. Equipment replacement and enhancement.
Sec. 1505. Classified activities.
Sec. 1506. Procurement of munitions.
Sec. 1507. Discretionary restoration of authorizations of appropriations 
           reduced for management efficiencies.
Sec. 1508. General provisions applicable to transfers.

SEC. 1501. AUTHORIZATION OF APPROPRIATIONS FOR CONTINUED OPERATIONS FOR 
            THE WAR ON TERRORISM.

    In addition to any other amounts authorized to be appropriated by 
this Act, there is hereby authorized to be appropriated for the 
Department of Defense for fiscal year 2003, subject to subsection (b), 
$10,000,000,000 only for the conduct of Operation Noble Eagle and 
Operation Enduring Freedom in continuation of the war on terrorism in 
accordance with the purposes stated in section 2(a)

[[Page 116 STAT. 2679]]

of the Authorization for Use of Military Force (Public Law 107-40; 50 
U.S.C. 1541 note).

SEC. 1502. MOBILIZATION AND PERSONNEL.

    Of the amount authorized to be appropriated in section 1501, 
$2,550,000,000 shall be available only for transfer (subject to sections 
1507 and 1508) to fiscal year 2003 military personnel accounts of the 
Department of Defense for the purpose of providing for the personnel and 
personnel support costs of the members of the Armed Forces who are 
participating in Operation Noble Eagle or Operation Enduring Freedom in 
continuation of the war on terrorism in accordance with the purposes 
referred to in section 1501(a).

SEC. 1503. OPERATIONS.

    Of the amount authorized to be appropriated in section 1501, 
$4,270,000,000 shall be available only for transfer (subject to sections 
1507 and 1508) to fiscal year 2003 operation and maintenance accounts 
and working-capital funds of the Department of Defense for operating 
costs of the conduct of Operation Noble Eagle and Operation Enduring 
Freedom in continuation of the war on terrorism in accordance with the 
purposes referred to in section 1501(a).

SEC. 1504. EQUIPMENT REPLACEMENT AND ENHANCEMENT.

    Of the amount authorized to be appropriated in section 1501, 
$1,000,000,000 shall be available only for transfer (subject to sections 
1507 and 1508) to fiscal year 2003 procurement and research, 
development, test, and evaluation accounts of the Department of Defense 
for--
            (1) emergency replacement of equipment and munitions lost or 
        expended in operations conducted as part of Operation Noble 
        Eagle or Operation Enduring Freedom in continuation of the war 
        on terrorism in accordance with the purposes referred to in 
        section 1501(a); or
            (2) enhancement of critical military capabilities necessary 
        to carry out operations as part of those Operations in 
        continuation of the war on terrorism in accordance with those 
        purposes.

SEC. 1505. CLASSIFIED ACTIVITIES.

    Of the amount authorized to be appropriated in section 1501, 
$1,980,000,000 shall be available only for unspecified intelligence and 
classified activities carried out in support of Operation Noble Eagle or 
Operation Enduring Freedom in continuation of the war on terrorism in 
accordance with the purposes referred to in section 1501(a), and only by 
transfer (subject to sections 1507 and 1508) to fiscal year 2003 
accounts of the Department of Defense in amounts as follows:
            (1) To procurement accounts, $1,618,200,000.
            (2) To operation and maintenance accounts, $301,600,000.
            (3) To research, development, test, and evaluation accounts, 
        $60,200,000.

SEC. 1506. PROCUREMENT OF MUNITIONS.

    Of the amount authorized to be appropriated in section 1501, 
$200,000,000 shall be available only for the procurement of munitions 
for the support of Operation Noble Eagle or Operation Enduring Freedom 
in continuation of the war on terrorism in

[[Page 116 STAT. 2680]]

accordance with the purposes referred to in section 1501(a), and only by 
transfer (subject to sections 1507 and 1508) to fiscal year 2003 
procurement accounts of the Department of Defense in amounts as follows:
            (1) To accounts of the Army for the procurement of 
        ammunition $94,000,000.
            (2) To accounts of the Navy for the procurement of weapons, 
        $35,000,000.
            (3) To accounts of the Navy and Marine Corps for the 
        procurement of ammunition, $25,000,000.
            (4) To accounts of the Air Force for the procurement of 
        ammunition, $40,000,000.
            (5) To Defense-wide procurement accounts for special 
        operations forces, $6,000,000.

SEC. 1507. DISCRETIONARY RESTORATION OF AUTHORIZATIONS OF APPROPRIATIONS 
            REDUCED FOR MANAGEMENT EFFICIENCIES.

    (a) Transfer Authority.--(1) The Secretary of Defense may, subject 
to section 1508, transfer up to a total of $1,000,000,000 of the amount 
authorized to be appropriated by section 1501 to Department of Defense 
accounts under titles I, II, and III that are reduced for savings 
described in paragraph (2) if and to the extent that the Secretary 
determines that such savings are not achievable.
    (2) The savings referred to in paragraph (1) are savings that are to 
be achieved from--
            (A) improved management of Department of Defense contracts 
        for the procurement of services; and
            (B) the deferral of expenditures on financial management 
        systems.

    (b) Relationship to Other Title XV Transfer Authorities.--The total 
amount transferred under sections 1502 through 1506 and under section 
1507 may not exceed the total amount authorized to be appropriated by 
section 1501.

SEC. 1508. GENERAL PROVISIONS APPLICABLE TO TRANSFERS.

    (a) Merger of Transferred Amounts.--Amounts transferred pursuant to 
this title shall be merged with, and shall be available for the same 
purposes and the same period as, the account to which transferred.
    (b) Congressional Notice-and-Wait Requirement.--A transfer may not 
be made under section 1502, 1503, 1504, 1505, 1506, or 1507 until the 
Secretary of Defense has submitted a notice in writing to the 
congressional defense committees of the proposed transfer and a period 
of 15 days has elapsed after the date such notice is received. Any such 
notice shall include specification of the amount of the proposed 
transfer, the account to which the transfer is to be made, and the 
purpose of the transfer.
    (c) Relationship to Other Transfer Authority.--The transfer 
authorities provided in this title are in addition to any other transfer 
authority available to the Secretary of Defense under any provision of 
any other title of this Act or under any other provision of law.

[[Page 116 STAT. 2681]]

DIVISION <<NOTE: Military Construction Authorization Act for Fiscal Year 
2003.>> B--MILITARY CONSTRUCTION AUTHORIZATIONS

SEC. 2001. SHORT TITLE.

    This division may be cited as the ``Military Construction 
Authorization Act for Fiscal Year 2003''.

                             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 
           2002 projects.
Sec. 2106. Modification of authority to carry out certain fiscal year 
           2001 project.

SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2104(a)(1), the 
Secretary of the Army may acquire real property and carry out military 
construction projects for the installations and locations inside the 
United States, and in the amounts, set forth in the following table:


                     Army: Inside the United States
------------------------------------------------------------------------
                                    Installation or
             State                      location             Amount
------------------------------------------------------------------------
Alabama........................  Anniston Army Depot..        $1,900,000
                                 Fort Rucker..........       $15,808,000
                                 Redstone Arsenal.....        $1,950,000
Alaska.........................  Fort Greely..........        $2,700,000
                                 Fort Richardson......       $20,011,000
                                 Fort Wainwright......      $139,906,000
Arizona........................  Fort Huachuca........       $10,400,000
                                 Yuma Proving Ground..        $4,500,000
California.....................  Fort Irwin...........        $2,522,000
Colorado.......................  Fort Carson..........        $9,698,000
District of Columbia...........  Walter Reed Army            $13,794,000
                                  Medical Center......
Georgia........................  Fort Benning.........       $86,250,000
                                 Fort Stewart/Hunter         $26,000,000
                                  Army Air Field......
Hawaii.........................  Schofield Barracks...      $191,000,000
Kansas.........................  Fort Leavenworth.....        $7,979,000
                                 Fort Riley...........       $81,095,000
Kentucky.......................  Blue Grass Army Depot        $5,500,000
                                 Fort Campbell........      $106,300,000
                                 Fort Knox............        $5,873,000
Louisiana......................  Fort Polk............       $37,620,000
Maryland.......................  Fort Detrick.........       $22,500,000
Massachusetts..................  Natick Research,             $4,100,000
                                  Development, and
                                  Engineering Center..
Missouri.......................  Fort Leonard Wood....       $24,993,000
New Jersey.....................  Picatinny Arsenal....        $7,500,000
New York.......................  Fort Drum............       $18,300,000
                                 United States                $4,991,000
                                  Military Academy,
                                  West Point..........
North Carolina.................  Fort Bragg...........       $99,632,000

[[Page 116 STAT. 2682]]

 
Oklahoma.......................  Fort Sill............       $39,652,000
Pennsylvania...................  Letterkenny Army             $1,550,000
                                  Depot...............
South Carolina.................  Fort Jackson.........        $3,051,000
Texas..........................  Fort Bliss...........        $5,200,000
                                 Fort Hood............       $83,061,000
Virginia.......................  Fort Eustis..........        $4,133,000
                                 Fort Lee.............        $7,103,000
Washington.....................  Fort Lewis...........       $56,195,000
                                 Yakima Training              $3,000,000
                                  Center.
                                                       -----------------
                                     Total............    $1,155,767,000
------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2104(a)(2), the 
Secretary of the Army may acquire real property and carry out military 
construction projects for the installations and locations outside the 
United States, and in the amounts, set forth in the following table:


                     Army: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Belgium........................  Supreme Headquarters,       $13,600,000
                                  Allied Powers Europe..
Germany........................  Area Support Group,         $17,200,000
                                  Bamberg.
                                 Campbell Barracks......      $8,300,000
                                 Coleman Barracks.......      $1,350,000
                                 Darmstadt..............      $3,500,000
                                 Grafenwoehr............     $69,866,000
                                 Landstuhl..............      $2,400,000
                                 Mannheim...............     $42,000,000
                                 Schweinfurt............      $2,000,000
Italy..........................  Vicenza................     $34,700,000
Korea..........................  Camp Carroll...........     $20,000,000
                                 Camp Castle............      $6,800,000
                                 Camp Hovey.............     $25,000,000
                                 Camp Humphreys.........     $36,000,000
                                 Camp Henry.............     $10,200,000
                                 Camp Tango.............     $12,600,000
                                 K16 Airfield...........     $40,000,000
Qatar..........................  Qatar..................      $8,600,000
                                                         ---------------
                                 Total..................    $354,116,000
------------------------------------------------------------------------

    (c) Unspecified Worldwide.--Using amounts appropriated pursuant to 
the authorization of appropriations in section 2104(a)(3), the Secretary 
of the Army may acquire real property and carry out military 
construction projects for the installation and location, and in the 
amount, set forth in the following table:


                       Army: Unspecified Worldwide
------------------------------------------------------------------------
            Location                   Installation           Amount
------------------------------------------------------------------------
Unspecified Worldwide..........  Unspecified Worldwide..      $4,000,000
------------------------------------------------------------------------

SEC. 2102. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts appropriated 
pursuant to the authorization of appropriations in section

[[Page 116 STAT. 2683]]

2104(a)(6)(A), the Secretary of the Army may construct or acquire family 
housing units (including land acquisition and supporting facilities) at 
the installations, for the purposes, and in the amounts set forth in the 
following table:


                                              Army: Family Housing
----------------------------------------------------------------------------------------------------------------
            State or Country                Installation or location             Purpose               Amount
----------------------------------------------------------------------------------------------------------------
Alaska..................................  Fort Wainwright............  38 Units...................   $17,752,000
Arizona.................................  Yuma Proving Ground........  33 Units...................    $6,100,000
Korea...................................  Yongsan....................  10 Units...................    $3,100,000
                                                                                                   -------------
                                              Total:.................                                $26,952,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated pursuant to the 
authorization of appropriations in section 2104(a)(6)(A), the Secretary 
of the Army may carry out architectural and engineering services and 
construction design activities with respect to the construction or 
improvement of family housing units in an amount not to exceed 
$15,653,000.

SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2104(a)(6)(A), the Secretary of the Army may improve existing 
military family housing units in an amount not to exceed $239,751,000.

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 2002, for military 
construction, land acquisition, and military family housing functions of 
the Department of the Army in the total amount of $3,104,176,000, as 
follows:
            (1) For military construction projects inside the United 
        States authorized by section 2101(a), $949,567,000.
            (2) For military construction projects outside the United 
        States authorized by section 2101(b), $354,116,000.
            (3) For military construction projects at unspecified 
        worldwide locations authorized by section 2101(c), $4,000,000.
            (4) For unspecified minor construction projects authorized 
        by section 2805 of title 10, United States Code, $21,550,000.
            (5) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $160,313,000.
            (6) For military family housing functions:
                    (A) For construction and acquisition, planning and 
                design, and improvement of military family housing and 
                facilities, $282,356,000.
                    (B) For support of military family housing 
                (including the functions described in section 2833 of 
                title 10, United States Code), $1,117,274,000.
            (7) For the construction of phase 2 of Saddle Access Road, 
        Pohakoula Training Facility, Hawaii, authorized by section 
        2101(a) of the Military Construction Authorization Act for 
        Fiscal Year 2001 (division B of the Floyd D. Spence National 
        Defense Authorization Act for Fiscal Year 2001, as enacted

[[Page 116 STAT. 2684]]

        into law by Public Law 106-398; 114 Stat. 1654A-389), 
        $13,000,000.
            (8) For the construction of phase 3 of a barracks complex, 
        Butner Road, at Fort Bragg, North Carolina, authorized by 
        section 2101(a) of the Military Construction Authorization Act 
        for Fiscal Year 2001 (division B of the Floyd D. Spence National 
        Defense Authorization Act for Fiscal Year 2001, as enacted into 
        law by Public Law 106-398; 114 Stat. 1654A-389), $50,000,000.
            (9) For the construction of phase 2 of a barracks complex, D 
        Street, at Fort Richardson, Alaska, authorized by section 
        2101(a) of the Military Construction Authorization Act for 
        Fiscal Year 2002 (division B of Public Law 107-107; 115 Stat. 
        1280), $21,000,000.
            (10) For the construction of phase 2 of a barracks complex, 
        Nelson Boulevard, at Fort Carson, Colorado, authorized by 
        section 2101(a) of the Military Construction Authorization Act 
        for Fiscal Year 2002 (division B of Public Law 107-107; 115 
        Stat. 1280), as amended by section 2105 of this Act, 
        $42,000,000.
            (11) For the construction of phase 2 of a basic combat 
        trainee complex at Fort Jackson, South Carolina, authorized by 
        section 2101(a) of the Military Construction Authorization Act 
        for Fiscal Year 2002 (division B of Public Law 107-107; 115 
        Stat. 1280), as amended by section 2105 of this Act, 
        $39,000,000.
            (12) For the construction of phase 2 of a barracks complex, 
        17th and B Streets, at Fort Lewis, Washington, authorized by 
        section 2101(a) of the Military Construction Authorization Act 
        for Fiscal Year 2002 (division B of Public Law 107-107; 115 
        Stat. 1280), $50,000,000.

    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2101 of this 
Act may not exceed--
            (1) the total amount authorized to be appropriated under 
        paragraphs (1), (2), and (3) of subsection (a);
            (2) $18,000,000 (the balance of the amount authorized under 
        section 2101(a) for construction of a barracks complex, Main 
        Post, at Fort Benning, Georgia);
            (3) $100,000,000 (the balance of the amount authorized under 
        section 2101(a) for construction of a barracks complex, Capron 
        Avenue, at Schofield Barracks, Hawaii);
            (4) $13,200,000 (the balance of the amount authorized under 
        section 2101(a) for construction of a combined arms collective 
        training facility at Fort Riley, Kansas);
            (5) $50,000,000 (the balance of the amount authorized under 
        section 2101(a) for construction of a barracks complex, Range 
        Road, at Fort Campbell, Kentucky); and
            (6) $25,000,000 (the balance of the amount authorized under 
        section 2101(a) for construction of a consolidated maintenance 
        complex at Fort Sill, Oklahoma).

    (c) Adjustments.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (12) of subsection (a) is the sum of 
the amounts authorized to be appropriated in such paragraphs, reduced by 
the following:

[[Page 116 STAT. 2685]]

            (1) $18,596,000, which represents savings resulting from 
        adjustments to foreign currency exchange rates for military 
        construction, military family housing construction, and military 
        family housing support outside the United States.
            (2) $29,350,000, which represents savings resulting from 
        adjustments in the accounting of civilian personnel benefits.
            (3) $16,740,000, which represents savings resulting from 
        reductions in supervision, inspection, and overhead costs.
            (4) $18,000,000, which represents savings resulting from 
        lower-than-expected inflation.

SEC. 2105. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
            2002 PROJECTS.

    (a) Modification.--The table in section 2101(a) of the Military 
Construction Authorization Act for Fiscal Year 2002 (division B of 
Public Law 107-107; 115 Stat. 1281) is amended--
            (1) in the item relating to Fort Carson, Colorado, by 
        striking ``$66,000,000'' in the amount column and inserting 
        ``$67,000,000''; and
            (2) in the item relating to Fort Jackson, South Carolina, by 
        striking ``$65,650,000'' in the amount column and inserting 
        ``$68,650,000''.

    (b) Conforming Amendments.--Section 2104(b) of that Act (115 Stat. 
1284) is amended--
            (1) in paragraph (3), by striking ``$41,000,000'' and 
        inserting ``$42,000,000''; and
            (2) in paragraph (4), by striking ``$36,000,000'' and 
        inserting ``$39,000,000''.

SEC. 2106. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
            2001 PROJECT.

    The table in section 2101(b) of the Military Construction 
Authorization Act for Fiscal Year 2001 (division B of the Floyd D. 
Spence National Defense Authorization Act for Fiscal Year 2001, as 
enacted into law by Public Law 106-398; 114 Stat. 1654A-390) is amended 
by striking ``Camp Page'' in the installation or location column and 
inserting ``Camp Stanley''.

                            TITLE XXII--NAVY

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

SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2204(a)(1), the 
Secretary of the Navy may acquire real property and carry out military 
construction projects for the installations and locations inside the 
United States, and in the amounts, set forth in the following table:


[[Page 116 STAT. 2686]]



                     Navy: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             State                      location              Amount
------------------------------------------------------------------------
Arizona........................  Marine Corps Air             $3,000,000
                                  Station, Yuma.
California.....................  Auxiliary Landing            $6,150,000
                                  Field, San Diego (San
                                  Clemente Island).....
                                 Marine Corps Air-           $39,470,000
                                  Ground Combat Center,
                                  Twentynine Palms.....
                                 Marine Corps Air            $11,930,000
                                  Station, Camp
                                  Pendleton............
                                 Marine Corps Air            $12,210,000
                                  Station, Miramar.....
                                 Marine Corps Base,          $84,040,000
                                  Camp Pendleton.......
                                 Marine Corps Logistics       $4,450,000
                                  Base, Barstow........
                                 Naval Air Station,          $35,855,000
                                  Lemoore.
                                 Naval Air Warfare            $6,760,000
                                  Center, Point Mugu,
                                  San Nicholas Island..
                                 Naval Air Warfare           $10,100,000
                                  Center, China Lake...
                                 Naval Construction          $10,170,000
                                  Training Center, Port
                                  Hueneme..............
                                 Naval Post Graduate          $9,020,000
                                  School, Monterey.....
                                 Naval Station, San          $12,210,000
                                  Diego................
Connecticut....................  Naval Submarine Base,        $7,880,000
                                  New London...........
District of Columbia...........  Marine Corps Barracks.       $3,700,000
                                 Naval District,              $2,690,000
                                  Washington.
Florida........................  Naval Air Station,          $13,342,000
                                  Jacksonville.
                                 Naval Air Station,             $990,000
                                  Pensacola.
                                 Naval School Explosive       $6,350,000
                                  Ordnance Detachment,
                                  Eglin................
                                 Naval Station, Mayport       $1,900,000
                                 Naval Surface Warfare       $10,700,000
                                  Center Coastal
                                  Systems Station,
                                  Panama City..........
Georgia........................  Naval Submarine Base,        $1,580,000
                                  Kings Bay.
Hawaii.........................  Marine Corps Base.....       $9,500,000
                                 Naval Shipyard, Pearl       $18,500,000
                                  Harbor.
                                 Naval Station, Pearl        $34,090,000
                                  Harbor.
Illinois.......................  Naval Training Center,      $83,190,000
                                  Great Lakes.
Indiana........................  Naval Surface Warfare       $11,610,000
                                  Center, Crane........
Maine..........................  Naval Air Station,           $9,830,000
                                  Brunswick.
                                 Naval Shipyard,             $15,200,000
                                  Kittery-Portsmouth.
Maryland.......................  Naval Air Facility,          $9,680,000
                                  Andrews Air Force
                                  Base.................
                                 Naval Surface Warfare       $12,900,000
                                  Center, Carderock
                                  Division.............
                                 United States Naval          $1,800,000
                                  Academy.
Mississippi....................  Naval Air Station,           $2,850,000
                                  Meridian.
                                 Naval Construction           $5,460,000
                                  Battalion Center,
                                  Gulfport.............
                                 Naval Station,              $25,305,000
                                  Pascagoula.
New Jersey.....................  Naval Air Warfare            $5,200,000
                                  Center, Lakehurst.
                                 Naval Weapons Station,       $5,600,000
                                  Earle................
North Carolina.................  Marine Corps Air             $6,040,000
                                  Station, Cherry Point.
                                 Marine Corps Air             $6,920,000
                                  Station, New River.
                                 Marine Corps Base,           $9,570,000
                                  Camp Lejeune.
Rhode Island...................  Naval Station, Newport      $15,900,000
South Carolina.................  Marine Corps Air            $13,700,000
                                  Station, Beaufort....
                                 Marine Corps Recruit        $10,490,000
                                  Depot, Parris Island.
                                 Naval Weapons Station,       $5,740,000
                                  Charleston...........
Texas..........................  Naval Air Station,           $7,150,000
                                  Corpus Christi.

[[Page 116 STAT. 2687]]

 
                                 Naval Station,               $5,000,000
                                  Ingleside.
                                 Naval Air Station,           $6,210,000
                                  Kingsville.
Virginia.......................  Marine Corps Combat         $24,864,000
                                  Development Command,
                                  Quantico.............
                                 Naval Air Station           $16,490,000
                                  Oceana.
                                 Naval Amphibious Base,       $9,770,000
                                  Little Creek.
                                 Naval Shipyard,             $36,470,000
                                  Norfolk, Portsmouth.
                                 Naval Station, Norfolk     $168,965,000
                                 Naval Support                $2,260,000
                                  Activity, Norfolk.
                                 Naval Surface Warfare       $15,830,000
                                  Center, Dahlgren.....
                                 Naval Weapons Station,      $15,020,000
                                  Yorktown.
Washington.....................  Naval Air Station,          $17,580,000
                                  Whidbey Island.
                                 Naval Magazine, Indian       $4,030,000
                                  Island.
                                 Naval Station,              $45,870,000
                                  Bremerton.
                                 Naval Submarine Base,       $22,310,000
                                  Bangor.
                                 Naval Undersea Warfare       $7,500,000
                                  Center, Keyport......
                                 Puget Sound Naval           $57,132,000
                                  Shipyard, Bremerton..
                                 Strategic Weapons            $7,340,000
                                  Facility, Bangor.
Various Locations..............  Host Nation                  $1,000,000
                                  Infrastructure.
                                                        ----------------
                                     Total.............   $1,084,363,000
------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2204(a)(2), the 
Secretary of the Navy may acquire real property and carry out military 
construction projects for the locations outside the United States, and 
in the amounts, set forth in the following table:


                     Navy: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Bahrain........................  Naval Support Activity,     $25,970,000
                                  Bahrain...............
Cuba...........................  Naval Station,               $4,280,000
                                  Guantanamo Bay........
Diego Garcia...................  Diego Garcia, Naval         $11,090,000
                                  Support Facility......
Greece.........................  Naval Support Activity,      $6,800,000
                                  Joint Headquarters
                                  Command, Larissa......
Guam...........................  Commander, United           $13,400,000
                                  States Naval Forces,
                                  Guam..................
Iceland........................  Naval Air Station,          $14,920,000
                                  Keflavik.
Italy..........................  Naval Air Station,          $55,660,000
                                  Sigonella.
Spain..........................  Naval Station, Rota....     $18,700,000
                                                         ---------------
                                     Total..............    $150,820,000
------------------------------------------------------------------------

SEC. 2202. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2204(a)(5)(A), the Secretary of the Navy may construct or acquire family 
housing units (including land acquisition and supporting facilities) at 
the installations, for the purposes, and in the amounts set forth in the 
following table:


[[Page 116 STAT. 2688]]



                                              Navy: Family Housing
----------------------------------------------------------------------------------------------------------------
            State or Country                Installation or location             Purpose               Amount
----------------------------------------------------------------------------------------------------------------
California..............................  Naval Air Station, Lemoore.  178 Units..................   $40,981,000
                                          Twentynine Palms...........  76 Units...................   $19,425,000
Connecticut.............................  Naval Submarine Base, New    100 Units..................   $24,415,000
                                           London....................
Florida.................................  Naval Station, Mayport.....  1 Unit.....................      $329,000
Hawaii..................................  Marine Corps Base, Kaneohe   65 Units...................   $24,797,000
                                           Bay.......................
Maine...................................  Naval Air Station,           22 Units...................    $5,000,000
                                           Brunswick.................
Mississippi.............................  Naval Air Station, Meridian  56 Units...................    $9,755,000
North Carolina..........................  Marine Corps Base, Camp      317 Units..................   $43,650,000
                                           Lejeune...................
Virginia................................  Marine Corps Base, Quantico  290 Units..................   $41,843,000
 United Kingdom.........................  Joint Maritime Facility,     62 Units...................   $18,524,000
                                           St. Mawgan................
                                                                                                   -------------
                                                                           Total..................  $228,719,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated pursuant to the 
authorization of appropriation in section 2204(a)(5)(A), the Secretary 
of the Navy may carry out architectural and engineering services and 
construction design activities with respect to the construction or 
improvement of military family housing units in an amount not to exceed 
$11,281,000.

SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2204(a)(5)(A), the Secretary of the Navy may improve existing 
military family housing units in an amount not to exceed $139,468,000.

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 2002, for military 
construction, land acquisition, and military family housing functions of 
the Department of the Navy in the total amount of $2,576,381,000, as 
follows:
            (1) For military construction projects inside the United 
        States authorized by section 2201(a), $1,025,598,000.
            (2) For military construction projects outside the United 
        States authorized by section 2201(b), $148,250,000.
            (3) For unspecified minor construction projects authorized 
        by section 2805 of title 10, United States Code, $26,187,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $95,570,000.
            (5) For military family housing functions:
                    (A) For construction and acquisition, planning and 
                design, and improvement of military family housing and 
                facilities, $379,468,000.
                    (B) For support of military family housing 
                (including functions described in section 2833 of title 
                10, United States Code), $867,788,000.

[[Page 116 STAT. 2689]]

            (6) For replacement of a pier at Naval Station, Norfolk, 
        Virginia, authorized by section 2201(a) of the Military 
        Construction Authorization Act for Fiscal Year 2002 (division B 
        of Public Law 107-107; 115 Stat. 1287), as amended by section 
        2205 of this Act, $33,520,000.

    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2201 of this 
Act may not exceed--
            (1) the total amount authorized to be appropriated under 
        paragraphs (1) and (2) of subsection (a);
            (2) $10,645,000 (the balance of the amount authorized under 
        section 2201(a) for a bachelors enlisted quarters shipboard 
        ashore, Naval Station, Pascagoula, Mississippi);
            (3) $48,120,000 (the balance of the amount authorized under 
        section 2201(a) for a bachelors enlisted quarters shipboard 
        ashore, Naval Station, Norfolk, Virginia); and
            (4) $2,570,000 (the balance of the amount authorized under 
        section 2201(b) for a quality of life support facility, Naval 
        Air Station Sigonella, Italy).

    (c) Adjustments.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (6) of subsection (a) is the sum of 
the amounts authorized to be appropriated in such paragraphs, reduced by 
the following:
            (1) $3,992,000, which represents savings resulting from 
        adjustments to foreign currency exchange rates for military 
        construction, military family housing construction, and military 
        family housing support outside the United States.
            (2) $10,470,000, which represents savings resulting from 
        adjustments in the accounting of civilian personnel benefits.
            (3) $15,017,000, which represents savings resulting from 
        reductions in supervision, inspection, and overhead costs.
            (4) $14,000,000, which represents savings resulting from 
        lower-than-expected inflation.

SEC. 2205. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
            2002 PROJECTS.

    (a) Military Construction Project at Naval Station, Norfolk, 
Virginia.--The table in section 2201(a) of the Military Construction 
Authorization Act for Fiscal Year 2002 (division B of Public Law 107-
107; 115 Stat. 1286) is amended--
            (1) in the item relating to Naval Station, Norfolk, 
        Virginia, by striking ``$139,270,000'' in the amount column and 
        inserting ``$139,550,000''; and
            (2) by striking the amount identified as the total in the 
        amount column and inserting ``$1,059,030,000''.

    (b) Military Family Housing at Quantico, Virginia.--The table in 
section 2202(a) of that Act (115 Stat. 1288) is amended in the item 
relating to Marine Corps Combat Development Command, Quantico, Virginia, 
by striking ``60 Units'' in the purpose column and inserting ``39 
Units''.
    (c) Conforming Amendment.--Section 2204(b)(2) of that Act (115 Stat. 
1289) is amended by striking ``$33,240,000'' and inserting 
``$33,520,000''.

[[Page 116 STAT. 2690]]

                         TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition 
           projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Authority for use of military construction funds for 
           construction of public road near Aviano Air Base, Italy, to 
           replace road closed for force protection purposes.

SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND ACQUISITION 
            PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2304(a)(1), the 
Secretary of the Air Force may acquire real property and carry out 
military construction projects for the installations and locations 
inside the United States, and in the amounts, set forth in the following 
table:


                   Air Force: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             State                       location             Amount
------------------------------------------------------------------------
Alaska.........................  Clear Air Station......     $14,400,000
                                 Eielson Air Force Base.     $41,100,000
Arizona........................  Davis-Monthan Air Force     $19,270,000
                                  Base.
                                 Luke Air Force Base....     $13,000,000
Arkansas.......................  Little Rock Air Force       $25,600,000
                                  Base.
California.....................  Beale Air Force Base...     $11,740,000
                                 Travis Air Force Base..     $33,469,000
                                 Vandenberg Air Force        $10,500,000
                                  Base.
Colorado.......................  Buckley Air National        $17,700,000
                                  Guard Base.
                                 Peterson Air Force Base      $5,500,000
                                 Schriever Air Force          $5,700,000
                                  Base.
                                 United States Air Force      $4,200,000
                                  Academy.
District of Columbia...........  Bolling Air Force Base.      $5,000,000
Florida........................  Avon Park Air Force          $2,000,000
                                  Range.
                                 Elgin Air Force Base...      $4,250,000
                                 Hurlburt Field.........     $15,000,000
                                 MacDill Air Force Base.     $20,000,000
Georgia........................  Robins Air Force Base..     $29,400,000
Hawaii.........................  Hickam Air Force Base..      $1,350,000
Kansas.........................  McConnell Air Force          $7,500,000
                                  Base.
Louisiana......................  Barksdale Air Force         $22,900,000
                                  Base.
Maryland.......................  Andrews Air Force Base.      $9,600,000
Massachusetts..................  Hanscom Air Force Base.      $7,700,000
Mississippi....................  Keesler Air Force Base.     $22,000,000
Nebraska.......................  Offutt Air Force Base..     $11,000,000
Nevada.........................  Nellis Air Force Base..     $56,850,000
New Jersey.....................  McGuire Air Force Base.     $29,831,000
New Mexico.....................  Cannon Air Force Base..      $4,650,000
                                 Holloman Air Force Base      $4,650,000
                                 Kirtland Air Force Base     $21,900,000
North Carolina.................  Pope Air Force Base....      $9,700,000
North Dakota...................  Minot Air Force Base...      $5,000,000
Ohio...........................  Wright-Patterson Air        $25,000,000
                                  Force Base.
Oklahoma.......................  Altus Air Force Base...     $14,800,000
                                 Vance Air Force Base...      $4,800,000
South Carolina.................  Shaw Air Force Base....      $6,800,000
South Dakota...................  Ellsworth Air Force         $13,200,000
                                  Base.
Texas..........................  Goodfellow Air Force        $10,600,000
                                  Base.
                                 Lackland Air Force Base     $37,300,000
                                 Lackland Air Force Base     $10,000,000
                                  (Camp Bullis).........

[[Page 116 STAT. 2691]]

 
                                 Laughlin Air Force Base      $8,000,000
                                 Sheppard Air Force Base     $16,000,000
Utah...........................  Hill Air Force Base....     $14,500,000
Virginia.......................  Langley Air Force Base.     $70,940,000
                                                         ---------------
                                 Total..................    $724,400,000
------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2304(a)(2), the 
Secretary of the Air Force may acquire real property and carry out 
military construction projects for the installations and locations 
outside the United States, and in the amounts, set forth in the 
following table:


                  Air Force: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Diego Garcia...................  Diego Garcia...........     $17,100,000
Germany........................  Ramstein Air Force Base     $71,783,000
Guam...........................  Andersen Air Force Base     $31,000,000
Italy..........................  Aviano Air Force Base..      $6,600,000
Japan..........................  Kadena Air Force Base..      $6,000,000
Korea..........................  Osan Air Base..........     $15,100,000
Spain..........................  Naval Station, Rota....     $31,818,000
Turkey.........................  Incirlik Air Force Base      $1,550,000
United Kingdom.................  Royal Air Force,            $19,000,000
                                  Fairford.
                                 Royal Air Force,            $13,400,000
                                  Lakenheath.
Wake Island....................  Wake Island............     $24,900,000
                                                         ---------------
                                     Total..............    $238,251,000
------------------------------------------------------------------------

    (c) Unspecified Worldwide.--Using amounts appropriated pursuant to 
the authorization of appropriations in section 2304(a)(3), the Secretary 
of the Air Force may acquire real property and carry out military 
construction projects for the installation and location, and in the 
amount, set forth in the following table:


                    Air Force: Unspecified Worldwide
------------------------------------------------------------------------
            Location                   Installation           Amount
------------------------------------------------------------------------
Unspecified Worldwide..........  Classified Location....     $24,993,000
                                                         ---------------
                                     Total..............     $24,993,000
------------------------------------------------------------------------

SEC. 2302. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2304(a)(6)(A), the Secretary of the Air Force may construct or acquire 
family housing units (including land acquisition and supporting 
facilities) at the installations, for the purposes, and in the amounts 
set forth in the following table:


                                            Air Force: Family Housing
----------------------------------------------------------------------------------------------------------------
            State or Country                Installation or location             Purpose               Amount
----------------------------------------------------------------------------------------------------------------
Arizona.................................  Luke Air Force Base........  140 Units..................   $18,954,000

[[Page 116 STAT. 2692]]

 
California..............................  Travis Air Force Base......  110 Units..................   $24,320,000
Colorado................................  Peterson Air Force Base....  2 Units....................      $959,000
                                          United States Air Force      71 Units...................   $12,424,000
                                           Academy...................
Delaware................................  Dover Air Force Base.......  112 Units..................   $19,615,000
Florida.................................  Eglin Air Force Base.......  Housing Office.............      $597,000
                                          Eglin Air Force Base.......  134 Units..................   $15,906,000
                                          MacDill Air Force Base.....  96 Units...................   $18,086,000
Hawaii..................................  Hickam Air Force Base......  96 Units...................   $29,050,000
Idaho...................................  Mountain Home Air Force      95 Units...................   $24,392,000
                                           Base......................
Kansas..................................  McConnell Air Force Base...  Housing Maintenance            $1,514,000
                                                                        Facility..................
Maryland................................  Andrews Air Force Base.....  53 Units...................    $9,838,000
                                          Andrews Air Force Base.....  52 Units...................    $8,807,000
Mississippi.............................  Columbus Air Force Base....  Housing Office.............      $412,000
                                          Keesler Air Force Base.....  117 Units..................   $16,505,000
Missouri................................  Whiteman Air Force Base....  97 Units...................   $17,107,000
Montana.................................  Malmstrom Air Force Base...  18 Units...................    $4,717,000
New Mexico..............................  Holloman Air Force Base....  101 Units..................   $20,161,000
North Carolina..........................  Pope Air Force Base........  Housing Maintenance              $991,000
                                                                        Facility..................
                                          Seymour Johnson Air Force    126 Units..................   $18,615,000
                                           Base......................
North Dakota............................  Grand Forks Air Force Base.  150 Units..................   $30,140,000
                                          Minot Air Force Base.......  112 Units..................   $21,428,000
                                          Minot Air Force Base.......  102 Units..................   $20,315,000
Oklahoma................................  Vance Air Force Base.......  59 Units...................   $11,423,000
South Dakota............................  Ellsworth Air Force Base...  Housing Maintenance              $447,000
                                                                        Facility..................
                                          Ellsworth Air Force Base...  22 Units...................    $4,794,000
Texas...................................  Dyess Air Force Base.......  85 Units...................   $14,824,000
                                          Randolph Air Force Base....  Housing Maintenance              $447,000
                                                                        Facility..................
                                          Randolph Air Force Base....  112 Units..................   $14,311,000
Virginia................................  Langley Air Force Base.....  Housing Office.............    $1,193,000
Germany.................................  Ramstein Air Force Base....  19 Units...................    $8,534,000
Korea...................................  Osan Air Base..............  113 Units..................   $35,705,000
                                          Osan Air Base..............  Housing Supply Warehouse...      $834,000

[[Page 116 STAT. 2693]]

 
United Kingdom..........................  Royal Air Force, Lakenheath  Housing Office and             $2,203,000
                                                                        Maintenance Facility......
                                                                      ------------------------------
                                          Total......................                               $429,568,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated pursuant to the 
authorization of appropriations in section 2304(a)(6)(A), the Secretary 
of the Air Force may carry out architectural and engineering services 
and construction design activities with respect to the construction or 
improvement of military family housing units in an amount not to exceed 
$34,188,000.

SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, Unites States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2304(a)(6)(A), the Secretary of the Air Force may improve 
existing military family housing units in an amount not to exceed 
$226,068,000.

SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 2002, for military 
construction, land acquisition, and military family housing functions of 
the Department of the Air Force in the total amount of $2,633,738,000, 
as follows:
            (1) For military construction projects inside the United 
        States authorized by section 2301(a), $717,300,000.
            (2) For military construction projects outside the United 
        States authorized by section 2301(b), $238,251,000.
            (3) For military construction projects at unspecified 
        worldwide locations authorized by section 2301(c), $24,993,000.
            (4) For unspecified minor construction projects authorized 
        by section 2805 of title 10, United States Code, $11,500,000.
            (5) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $82,820,000.
            (6) For military housing functions:
                    (A) For construction and acquisition, planning and 
                design, and improvement of military family housing and 
                facilities, $689,824,000.
                    (B) For support of military family housing 
                (including functions described in section 2833 of title 
                10, United States Code), $869,050,000.

    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2301 of this 
Act may not exceed--
            (1) the total amount authorized to be appropriated under 
        paragraphs (1), (2) and (3) of subsection (a); and

[[Page 116 STAT. 2694]]

            (2) $7,100,000 (the balance of the amount authorized under 
        section 2301(a) for construction of a consolidated base engineer 
        complex at Altus Air Force Base, Oklahoma).

    (c) Adjustments.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (6) of subsection (a) is the sum of 
the amounts authorized to be appropriated in such paragraphs, reduced by 
the following:
            (1) $19,063,000, which represents savings resulting from 
        adjustments to foreign currency exchange rates for military 
        construction, military family housing construction, and military 
        family housing support outside the United States.
            (2) $15,306,000, which represents savings resulting from 
        reductions in supervision, inspection, and overhead costs.
            (3) $16,000,000, which represents savings resulting from 
        lower-than-expected inflation.

SEC. 2305. AUTHORITY FOR USE OF MILITARY CONSTRUCTION FUNDS FOR 
            CONSTRUCTION OF PUBLIC ROAD NEAR AVIANO AIR BASE, ITALY, TO 
            REPLACE ROAD CLOSED FOR FORCE PROTECTION PURPOSES.

    (a) Authority To Use Funds.--Using amounts authorized to be 
appropriated by section 2304(a)(2), the Secretary of the Air Force may 
carry out a project to provide a public road, and associated 
improvements, to replace a public road adjacent to Aviano Air Base, 
Italy, that has been closed for force protection purposes.
    (b) Scope of Authority.--(1) The authority of the Secretary to carry 
out the project referred to in subsection (a) shall include authority as 
follows:
            (A) To acquire property for the project for transfer to a 
        host nation authority.
            (B) To provide funds to a host nation authority to acquire 
        property for the project.
            (C) To make a contribution to a host nation authority for 
        purposes of carrying out the project.
            (D) To provide vehicle and pedestrian access to landowners 
        affected by the project.

    (2) The acquisition of property using the authority in subparagraph 
(A) or (B) of paragraph (1) may be made regardless of whether or not 
ownership of such property will vest in the United States.
    (c) Inapplicability of Certain Real Property Management 
Requirement.--Section 2672(a)(1)(B) of title 10, United States Code, 
shall not apply with respect to any acquisition of interests in land for 
purposes of the project authorized by subsection (a).

                      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.
Sec. 2405. Modification of authority to carry out certain fiscal year 
           2000 project.
Sec. 2406. Modification of authority to carry out certain fiscal year 
           1999 project.
Sec. 2407. Modification of authority to carry out certain fiscal year 
           1997 project.

SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND LAND ACQUISITION 
            PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section

[[Page 116 STAT. 2695]]

2404(a)(1), the Secretary of Defense may acquire real property and carry 
out military construction projects for the installations and locations 
inside the United States, and in the amounts, set forth in the following 
table:


               Defense Agencies: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             Agency                      location             Amount
------------------------------------------------------------------------
Chemical Demilitarization......  Pine Bluff, Arkansas...     $18,937,000
Defense Intelligence Agency....  Bolling Air Force Base,    $111,958,000
                                  District of Columbia..
Defense Logistics Agency.......  Defense Supply Center,       $5,500,000
                                  Richmond, Virginia....
                                 Naval Air Station, New       $9,500,000
                                  Orleans, Louisiana....
                                 Travis Air Force Base,      $16,000,000
                                  California............
Defense Threat Reduction Agency  Fort Belvoir, Virginia.     $76,388,000
Department of Defense            Fort Bragg, North            $2,036,000
 Dependents Schools............   Carolina..............
                                 Fort Jackson, South          $2,506,000
                                  Carolina..............
                                 Marine Corps Base, Camp     $12,138,000
                                  Lejeune, North
                                  Carolina..............
                                 Marine Corps Base,           $1,418,000
                                  Quantico, Virginia....
                                 United States Military       $4,347,000
                                  Academy, West Point,
                                  New York..............
Joint Chiefs of Staff..........  Peterson Air Force          $25,000,000
                                  Base, Colorado.
Missile Defense Agency.........  Kauai, Hawaii..........     $23,400,000
National Security Agency.......  Fort Meade, Maryland...      $4,484,000
Special Operations Command.....  Dam Neck, Virginia.....      $3,900,000
                                 Fort Bragg, North           $30,800,000
                                  Carolina.
                                 Hurlburt Field, Florida     $11,100,000
                                 Naval Amphibious Base,      $14,300,000
                                  Little Creek, Virginia
                                 Stennis Space Center,        $5,000,000
                                  Mississippi.
TRICARE Management Activity....  Elmendorf Air Force         $10,400,000
                                  Base, Alaska..........
                                 Hickam Air Force Base,       $2,700,000
                                  Hawaii.
Washington Headquarters          District of Columbia...      $2,500,000
 Services......................
                                                         ---------------
                                     Total..............    $394,312,000
------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2404(a)(2), the 
Secretary of Defense may acquire real property and carry out military 
construction projects for the installations and locations outside the 
United States, and in the amounts, set forth in the following table:


               Defense Agencies: Outside the United States
------------------------------------------------------------------------
                                     Installation or
             Agency                      location             Amount
------------------------------------------------------------------------
Defense Logistics Agency.......  Andersen Air Force          $17,586,000
                                  Base, Guam............
                                 Naval Forces Marianas        $6,000,000
                                  Islands, Guam.........
                                 Naval Station, Rota,        $23,400,000
                                  Spain.................

[[Page 116 STAT. 2696]]

 
                                 Royal Air Force,            $17,000,000
                                  Fairford, United
                                  Kingdom...............
                                 Yokota Air Base, Japan.     $23,000,000
Department of Defense            Kaiserslautern, Germany        $957,000
 Dependents Schools............
                                 Lajes Field, Azores,         $1,192,000
                                  Portugal..............
                                 Seoul, Korea...........     $31,683,000
                                 Supreme Headquarters,        $1,573,000
                                  Allied Powers Europe,
                                  Belgium...............
                                 Spangdahlem Air Base,          $997,000
                                  Germany...............
                                 Vicenza, Italy.........      $2,117,000
TRICARE Management Activity....  Naval Support Activity,     $41,449,000
                                  Naples, Italy.........
                                 Spangdahlem Air Base,       $39,629,000
                                  Germany...............
                                                         ---------------
                                     Total..............    $206,583,000
------------------------------------------------------------------------

SEC. 2402. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2404(a)(8)(A), the Secretary of Defense may improve existing 
military family housing units in an amount not to exceed $5,480,000.

SEC. 2403. ENERGY CONSERVATION PROJECTS.

    Using amounts appropriated pursuant to the authorization of 
appropriations in section 2404(a)(6), the Secretary of Defense may carry 
out energy conservation projects under section 2865 of title 10, United 
States Code, in the amount of $34,531,000.

SEC. 2404. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 2002, for military 
construction, land acquisition, and military family housing functions of 
the Department of Defense (other than the military departments) in the 
total amount of $1,434,795,000, as follows:
            (1) For military construction projects inside the United 
        States authorized by section 2401(a), $357,712,000.
            (2) For military construction projects outside the United 
        States authorized by section 2401(b), $206,583,000.
            (3) For unspecified minor construction projects under 
        section 2805 of title 10, United States Code, $16,293,000.
            (4) For contingency construction projects of the Secretary 
        of Defense under section 2804 of title 10, United States Code, 
        $10,000,000.
            (5) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $45,532,000.
            (6) For energy conservation projects authorized by section 
        2403, $34,531,000.
            (7) For base closure and realignment activities as 
        authorized by the Defense Base Closure and Realignment Act of 
        1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 
        note), $565,138,000.
            (8) For military family housing functions:

[[Page 116 STAT. 2697]]

                    (A) For improvement of military family housing and 
                facilities, $5,480,000.
                    (B) For support of military family housing 
                (including functions described in section 2833 of title 
                10, United States Code), $42,432,000.
                    (C) For credit to the Department of Defense Family 
                Housing Improvement Fund established by section 
                2883(a)(1) of title 10, United States Code, $2,000,000.
            (9) For payment of a claim against the Hospital Replacement 
        project at Elmendorf Air Force Base, Alaska, $10,400,000.
            (10) For the construction of phase 4 of an ammunition 
        demilitarization facility at Pueblo Chemical Activity, Colorado, 
        authorized by section 2401(a) of the Military Construction 
        Authorization Act for Fiscal Year 1997 (division B of Public Law 
        104-201; 110 Stat. 2775), as amended by section 2406 of the 
        Military Construction Authorization Act for Fiscal Year 2000 
        (division B of Public Law 106-65; 113 Stat. 839) and section 
        2407 of this Act, $38,000,000.
            (11) For the construction of phase 5 of an ammunition 
        demilitarization facility at Newport Army Depot, Indiana, 
        authorized by section 2401(a) of the Military Construction 
        Authorization Act for Fiscal Year 1999 (division B of Public Law 
        105-261; 112 Stat. 2193), as amended by section 2406 of this 
        Act, $61,494,000.
            (12) For the construction of phase 5 of an ammunition 
        demilitarization facility at Aberdeen Proving Ground, Maryland, 
        authorized by section 2401(a) of the Military Construction 
        Authorization Act for Fiscal Year 1999 (division B of Public Law 
        105-261; 112 Stat. 2193), as amended by section 2406 of the 
        Military Construction Authorization Act for Fiscal Year 2002 
        (division B of Public Law 107-107; 115 Stat. 1299), $20,600,000.
            (13) For the construction of phase 3 of an ammunition 
        demilitarization facility at Blue Grass Army Depot, Kentucky, 
        authorized by section 2401(a) of the Military Construction 
        Authorization Act for Fiscal Year 2000 (division B of Public Law 
        106-65; 113 Stat. 835), as amended by section 2405 of the 
        Military Construction Authorization Act for Fiscal Year 2002 
        (division B of Public Law 107-107; 115 Stat. 1298) and section 
        2405 of this Act, $10,300,000.
            (14) For the construction of phase 3 of an ammunition 
        demilitarization support facility at Blue Grass Army Depot, 
        Kentucky, authorized by section 2401(a) of the Military 
        Construction Authorization Act for Fiscal Year 2000 (division B 
        of Public Law 106-65; 113 Stat. 835), $8,300,000.

    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2401 of this 
Act may not exceed--
            (1) the total amount authorized to be appropriated under 
        paragraphs (1) and (2) of subsection (a); and
            (2) $26,200,000 (the balance of the amount authorized under 
        section 2401(a) for the construction of the Defense Threat 
        Reduction Center, Fort Belvoir, Virginia).

    (c) Adjustments.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (14) of subsection (a)

[[Page 116 STAT. 2698]]

is the sum of the amounts authorized to be appropriated in such 
paragraphs, reduced by the following:
            (1) $2,976,000, which represents savings resulting from 
        adjustments to foreign currency exchange rates for military 
        construction, military family housing construction, and military 
        family housing support outside the United States.
            (2) $37,000, which represents savings resulting from 
        adjustments in the accounting of civilian personnel benefits.
            (3) $7,414,000, which represents savings resulting from 
        reductions in supervision, inspection, and overhead costs.
            (4) $7,000,000, which represents savings resulting from 
        lower-than-expected inflation.

SEC. 2405. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
            2000 PROJECT.

    (a) Modification.--The table in section 2401(a) of the Military 
Construction Authorization Act for Fiscal Year 2000 (division B of 
Public Law 106-65; 113 Stat. 835), as amended by section 2405 of the 
Military Construction Authorization Act for Fiscal Year 2002 (division B 
of Public Law 107-107; 115 Stat. 1298), is further amended--
            (1) under the agency heading relating to Chemical 
        Demilitarization, in the item relating to Blue Grass Army Depot, 
        Kentucky, by striking ``$254,030,000'' in the amount column and 
        inserting ``$290,325,000''; and
            (2) by striking the amount identified as the total in the 
        amount column and inserting ``$748,245,000''.

    (b) Conforming Amendment.--Section 2405(b)(3) of the Military 
Construction Authorization Act for Fiscal Year 2000 (113 Stat. 839), as 
so amended, is further amended by striking ``$231,230,000'' and 
inserting ``$267,525,000''.

SEC. 2406. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
            1999 PROJECT.

    (a) Modification.--The table in section 2401(a) of the Military 
Construction Authorization Act for Fiscal Year 1999 (division B of 
Public Law 105-261; 112 Stat. 2193), as amended by section 2406 of the 
Military Construction Authorization Act for Fiscal Year 2002 (division B 
of Public Law 107-107; 115 Stat. 1299), is further amended--
            (1) under the agency heading relating to Chemical 
        Demilitarization, in the item relating to Newport Army Depot, 
        Indiana, by striking ``$191,550,000'' in the amount column and 
        inserting ``$293,853,000''; and
            (2) by striking the amount identified as the total in the 
        amount column and inserting ``$829,919,000''.

    (b) Conforming Amendment.--Section 2404(b)(2) of the Military 
Construction Authorization Act for Fiscal Year 1999 (112 Stat. 2196) is 
amended by striking ``$162,050,000'' and inserting ``$264,353,000''.

SEC. 2407. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
            1997 PROJECT.

    (a) Modification.--The table in section 2401(a) of the Military 
Construction Authorization Act for Fiscal Year 1997 (division B of 
Public Law 104-201; 110 Stat. 2775), as amended by section 2406 of the 
Military Construction Authorization Act for Fiscal Year

[[Page 116 STAT. 2699]]

2000 (division B of Public Law 106-65; 113 Stat. 839), is further 
amended--
            (1) under the agency heading relating to Chemical 
        Demilitarization Program, in the item relating to Pueblo 
        Chemical Activity, Colorado, by striking ``$203,500,000'' in the 
        amount column and inserting ``$261,000,000''; and
            (2) by striking the amount identified as the total in the 
        amount column and inserting ``$607,454,000''.

    (b) Conforming Amendment.--Section 2406(b)(2) of the Military 
Construction Authorization Act for Fiscal Year 1997 (110 Stat. 2779), as 
so amended, is further amended by striking ``$203,500,000'' and 
inserting ``$261,000,000''.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                 PROGRAM

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

SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    The Secretary of Defense may make contributions for the North 
Atlantic Treaty Organization Security Investment program as provided in 
section 2806 of title 10, United States Code, in an amount not to exceed 
the sum of the amount authorized to be appropriated for this purpose in 
section 2502 and the amount collected from the North Atlantic Treaty 
Organization as a result of construction previously financed by the 
United States.

SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 2002, for contributions by 
the Secretary of Defense under section 2806 of title 10, United States 
Code, for the share of the United States of the cost of projects for the 
North Atlantic Treaty Organization Security Investment program 
authorized by section 2501, in the amount of $168,200,000.
    (b) Adjustment.--The total amount authorized to be appropriated 
pursuant to subsection (a) is the amount specified in such subsection, 
reduced by $1,000,000, which represents savings resulting from lower-
than-expected inflation.

             TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

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

SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND LAND 
            ACQUISITION PROJECTS.

    (a) In General.--There are authorized to be appropriated for fiscal 
years beginning after September 30, 2002, for the costs of acquisition, 
architectural and engineering services, and construction of facilities 
for the Guard and Reserve Forces, and for contributions

[[Page 116 STAT. 2700]]

therefor, under chapter 1803 of title 10, United States Code (including 
the cost of acquisition of land for those facilities), the following 
amounts:
            (1) For the Department of the Army--
                    (A) for the Army National Guard of the United 
                States, $237,236,000; and
                    (B) for the Army Reserve, $99,399,000.
            (2) For the Department of the Navy, for the Naval and Marine 
        Corps Reserve, $75,801,000.
            (3) For the Department of the Air Force--
                    (A) for the Air National Guard of the United States, 
                $204,215,000; and
                    (B) for the Air Force Reserve, $85,649,000.

    (b) Adjustment.--The total amount authorized to be appropriated 
pursuant to subsection (a)(1)(A) is the amount specified in such 
subsection, reduced by $1,000,000, which represents savings resulting 
from lower-than-expected inflation.

         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 2000 
           projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1999 
           projects.

SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED TO BE 
            SPECIFIED BY LAW.

    (a) Expiration of Authorizations After Three Years.--Except as 
provided in subsection (b), all authorizations contained in titles XXI 
through XXVI for military construction projects, land acquisition, 
family housing projects and facilities, and contributions to the North 
Atlantic Treaty Organization Security Investment program (and 
authorizations of appropriations therefor) shall expire on the later 
of--
            (1) October 1, 2005; or
            (2) the date of the enactment of an Act authorizing funds 
        for military construction for fiscal year 2006.

    (b) Exception.--Subsection (a) shall not apply to authorizations for 
military construction projects, land acquisition, family housing 
projects, and facilities, and contributions to the North Atlantic Treaty 
Organization Security Investment program (and authorizations of 
appropriations therefor) for which appropriated funds have been 
obligated before the later of--
            (1) October 1, 2005; or
            (2) the date of the enactment of an Act authorizing funds 
        for fiscal year 2006 for military construction projects, land 
        acquisition, family housing projects and facilities, and 
        contributions to the North Atlantic Treaty Organization Security 
        Investment program.

SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 2000 
            PROJECTS.

    (a) Extension of Certain Projects.--Notwithstanding section 2701 of 
the Military Construction Authorization Act for Fiscal Year 2000 
(division B of Public Law 106-65; 113 Stat. 841), authorizations set 
forth in the tables in subsection (b), as provided in section

[[Page 116 STAT. 2701]]

2302 or 2601 of that Act, shall remain in effect until October 1, 2003, 
or the date of the enactment of an Act authorizing funds for military 
construction for fiscal year 2004, whichever is later.
    (b) Tables.--The tables referred to in subsection (a) are as 
follows:


                               Air Force: Extension of 2000 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Oklahoma..............................  Tinker Air Force Base....  Replace Family Housing (41         $6,000,000
                                                                    Units)......................
Texas.................................  Lackland Air Force Base..  Dormitory....................      $5,300,000
----------------------------------------------------------------------------------------------------------------


                          Army National Guard: Extension of 2000 Project Authorization
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Virginia..............................  Fort Pickett.............  Multi-Purpose Range Complex-      $13,500,000
                                                                    Heavy.......................
----------------------------------------------------------------------------------------------------------------

SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1999 
            PROJECTS.

    (a) Extension.--Notwithstanding section 2701 of the Military 
Construction Authorization Act for Fiscal Year 1999 (division B of 
Public Law 105-261; 112 Stat. 2199), authorizations set forth in the 
table in subsection (b), as provided in section 2302 of that Act and 
extended by section 2702 of the Military Construction Authorization Act 
for Fiscal Year 2002 (division B of Public Law 107-107; 115 Stat. 1301), 
shall remain in effect until October 1, 2003, or the date of the 
enactment of an Act authorizing funds for military construction for 
fiscal year 2004, whichever is later.
    (b) Table.--The table referred to in subsection (a) is as follows:


                               Air Force: Extension of 1999 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Delaware..............................  Dover Air Force Base.....  Replace Family Housing (55         $8,988,000
                                                                    Units)......................
Florida...............................  Patrick Air Force Base...  Replace Family Housing (46         $9,692,000
                                                                    Units)......................
New Mexico............................  Kirtland Air Force Base..  Replace Family Housing (37         $6,400,000
                                                                    Units)......................
Ohio..................................  Wright-Patterson Air       Replace Family Housing (40         $5,600,000
                                         Force Base..............   Units)......................
----------------------------------------------------------------------------------------------------------------


[[Page 116 STAT. 2702]]

                    TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Lease of military family housing in Korea.
Sec. 2802. Modification of alternative authority for acquisition and 
           improvement of military housing.
Sec. 2803. Pilot housing privatization authority for acquisition or 
           construction of military unaccompanied housing.
Sec. 2804. Repeal of source requirements for family housing construction 
           overseas.
Sec. 2805. Availability of energy cost savings realized at military 
           installations.

         Subtitle B--Real Property and Facilities Administration

Sec. 2811. Agreements to limit encroachments and other constraints on 
           military training, testing, and operations.
Sec. 2812. Conveyance of surplus real property for natural resource 
           conservation purposes.
Sec. 2813. Modification of demonstration program on reduction in long-
           term facility maintenance costs.
Sec. 2814. Expanded authority to transfer property at military 
           installations to be closed to persons who construct or 
           provide military family housing.

                      Subtitle C--Land Conveyances

                        Part I--Army Conveyances

Sec. 2821. Transfer of jurisdiction, Fort McClellan, Alabama, to 
           establish Mountain Longleaf National Wildlife Refuge.
Sec. 2822. Land conveyances, lands in Alaska no longer required for 
           National Guard purposes.
Sec. 2823. Land conveyance, Sunflower Army Ammunition Plant, Kansas.
Sec. 2824. Land conveyances, Bluegrass Army Depot, Richmond, Kentucky.
Sec. 2825. Land conveyance, Fort Campbell, Kentucky.
Sec. 2826. Land conveyance, Army Reserve Training Center, Buffalo, 
           Minnesota.
Sec. 2827. Land conveyance, Fort Monmouth, New Jersey.
Sec. 2828. Land conveyance, Fort Bliss, Texas.
Sec. 2829. Land conveyance, Fort Hood, Texas.
Sec. 2830. Land conveyances, Engineer Proving Ground, Fort Belvoir, 
           Virginia.

                        Part II--Navy Conveyances

Sec. 2831. Land conveyance, Marine Corps Air Station, Miramar, San 
           Diego, California.
Sec. 2832. Modification of authority for land transfer and conveyance, 
           Naval Security Group Activity, Winter Harbor, Maine.
Sec. 2833. Land conveyance, Westover Air Reserve Base, Massachusetts.
Sec. 2834. Land conveyance, Naval Station, Newport, Rhode Island.
Sec. 2835. Land exchange and boundary adjustments, Marine Corps Base, 
           Quantico, and Prince William Forest Park, Virginia.

                     Part III--Air Force Conveyances

Sec. 2841. Modification of land conveyance, Los Angeles Air Force Base, 
           California.
Sec. 2842. Land exchange, Buckley Air Force Base, Colorado.
Sec. 2843. Land conveyances, Wendover Air Force Base Auxiliary Field, 
           Nevada.

                        Subtitle D--Other Matters

Sec. 2851. Master plan for use of Navy Annex, Arlington, Virginia.
Sec. 2852. Sale of excess treated water and wastewater treatment 
           capacity, Marine Corps Base, Camp Lejeune, North Carolina.
Sec. 2853. Conveyance of real property, Adak Naval Complex, Alaska, and 
           related land conveyances.
Sec. 2854. Special requirement for adding military installation to 
           closure list.

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

SEC. 2801. LEASE OF MILITARY FAMILY HOUSING IN KOREA.

    (a) Increase in Number of Units Authorized for Lease at Current 
Maximum Amount.--Paragraph (3) of section 2828(e)

[[Page 116 STAT. 2703]]

of title 10, United States Code, is amended by striking ``800 units'' 
and inserting ``1,175 units''.
    (b) Authority To Lease Additional Number of Units at Increased 
Maximum Amount.--That section is further amended--
            (1) by redesignating paragraphs (4) and (5) as paragraphs 
        (5) and (6), respectively;
            (2) by inserting after paragraph (3) the following new 
        paragraph (4):

    ``(4) In addition to the units of family housing referred to in 
paragraph (1) for which the maximum lease amount is $25,000 per unit per 
year, the Secretary of the Army may lease not more than 2,400 units of 
family housing in Korea subject to a maximum lease amount of $35,000 per 
unit per year.'';
            (3) in paragraph (5), as so redesignated, by striking ``and 
        (3)'' and inserting ``(3), and (4)''; and
            (4) in paragraph (6), as so redesignated, by striking 
        ``53,000'' and inserting ``55,775''.

SEC. 2802. MODIFICATION OF ALTERNATIVE AUTHORITY FOR ACQUISITION AND 
            IMPROVEMENT OF MILITARY HOUSING.

    (a) Authorized Utilities and Services.--Section 2872a(b) of title 
10, United States Code, is amended by adding at the end the following 
new paragraphs:
            ``(11) Firefighting and fire protection services.
            ``(12) Police protection services.''.

    (b) Leasing of Housing.--(1) Section 2874 of such title is amended--
            (A) by redesignating subsection (b) as subsection (c); and
            (B) by striking subsection (a) and inserting the following 
        new subsections:

    ``(a) Lease Authorized.--The Secretary concerned may enter into 
contracts for the lease of housing units that the Secretary determines 
are suitable for use as military family housing or military 
unaccompanied housing.
    ``(b) Use of Leased Units.--The Secretary concerned shall utilize 
housing units leased under this section as military family housing or 
military unaccompanied housing, as appropriate.''.
    (2) The heading for such section is amended to read as follows:

``Sec. 2874. Leasing of housing''.

    (3) The table of sections at the beginning of subchapter IV of 
chapter 169 of such title is amended by striking the item relating to 
section 2874 and inserting the following new item:

``2874. Leasing of housing.''.

    (c) Repeal of Interim Lease Authority.--(1) Section 2879 of such 
title is repealed.
    (2) The table of sections at the beginning of subchapter IV of 
chapter 169 of such title is amended by striking the item relating to 
section 2879.

SEC. 2803. PILOT HOUSING PRIVATIZATION AUTHORITY FOR ACQUISITION OR 
            CONSTRUCTION OF MILITARY UNACCOMPANIED HOUSING.

    (a) In General.--(1) Subchapter IV of chapter 169 of title 10, 
United States Code, is amended by inserting after section 2881 the 
following new section:

[[Page 116 STAT. 2704]]

``Sec. 2881a. Pilot projects for acquisition or construction of military 
                        unaccompanied housing

    ``(a) Pilot Projects Authorized.--The Secretary of the Navy may 
carry out not more than three pilot projects under the authority of this 
section or another provision of this subchapter to use the private 
sector for the acquisition or construction of military unaccompanied 
housing in the United States, including any territory or possession of 
the United States.
    ``(b) Treatment of Housing; Assignment of Members.--The Secretary of 
the Navy may assign members of the armed forces without dependents to 
housing units acquired or constructed under the pilot projects, and such 
housing units shall be considered as quarters of the United States or a 
housing facility under the jurisdiction of the Secretary for purposes of 
section 403 of title 37.
    ``(c) Basic Allowance for Housing.--(1) The Secretary of Defense may 
prescribe and, under section 403(n) of title 37, pay for members of the 
armed forces without dependents in privatized housing acquired or 
constructed under the pilot projects higher rates of partial basic 
allowance for housing than the rates authorized under paragraph (2) of 
such section.
    ``(2) The partial basic allowance for housing paid for a member at a 
higher rate under this subsection may be paid directly to the private 
sector source of the housing to whom the member is obligated to pay rent 
or other charge for residing in such housing if the private sector 
source credits the amount so paid against the amount owed by the member 
for the rent or other charge.
    ``(d) Funding.--(1) The Secretary of the Navy shall use the 
Department of Defense Military Unaccompanied Housing Improvement Fund to 
carry out activities under the pilot projects.
    ``(2) Subject to 90 days prior notification to the appropriate 
committees of Congress, such additional amounts as the Secretary of 
Defense considers necessary may be transferred to the Department of 
Defense Military Unaccompanied Housing Improvement Fund from amounts 
appropriated for construction of military unaccompanied housing in 
military construction accounts. The amounts so transferred shall be 
merged with and be available for the same purposes and for the same 
period of time as amounts appropriated directly to the Fund.
    ``(e) Reports.--(1) The Secretary of the Navy shall transmit to the 
appropriate committees of Congress a report describing--
            ``(A) each contract for the acquisition of military 
        unaccompanied housing that the Secretary proposes to solicit 
        under the pilot projects;
            ``(B) each conveyance or lease proposed under section 2878 
        of this title in furtherance of the pilot projects; and
            ``(C) the proposed partial basic allowance for housing rates 
        for each contract as they vary by grade of the member and how 
        they compare to basic allowance for housing rates for other 
        contracts written under the authority of the pilot programs.

    ``(2) The report shall describe the proposed contract, conveyance, 
or lease and the intended method of participation of the United States 
in the contract, conveyance, or lease and provide a justification of 
such method of participation. <<NOTE: Deadline.>> The report shall be 
submitted not later than 90 days before the date on which the Secretary 
issues the contract solicitation or offers the conveyance or lease.

[[Page 116 STAT. 2705]]

    ``(f) Expiration.--Notwithstanding section 2885 of this title, the 
authority of the Secretary of the Navy to enter into a contract under 
the pilot programs shall expire September 30, 2007.''.
    (2) The table of sections at the beginning of such subchapter is 
amended by inserting after the item relating to section 2881 the 
following new item:

``2881a. Pilot projects for acquisition or construction of military 
           unaccompanied housing.''.

    (b) Conforming Amendment.--Section 2871(7) of title 10, United 
States Code, is amended by inserting before the period at the end the 
following: ``and transient housing intended to be occupied by members of 
the armed forces on temporary duty''.

SEC. 2804. REPEAL OF SOURCE REQUIREMENTS FOR FAMILY HOUSING CONSTRUCTION 
            OVERSEAS.

    Section 803 of the Military Construction Authorization Act, 1984 
(Public Law 98-115; 10 U.S.C. 2821 note) is repealed.

SEC. 2805. AVAILABILITY OF ENERGY COST SAVINGS REALIZED AT MILITARY 
            INSTALLATIONS.

    Section 2865(b) of title 10, United States Code, is amended by 
striking ``through the end of the fiscal year following the fiscal year 
for which the funds were appropriated'' and inserting ``until 
expended''.

         Subtitle B--Real Property and Facilities Administration

SEC. 2811. AGREEMENTS TO LIMIT ENCROACHMENTS AND OTHER CONSTRAINTS ON 
            MILITARY TRAINING, TESTING, AND OPERATIONS.

    (a) In General.--Chapter 159 of title 10, United States Code, is 
amended by inserting after section 2684 the following new section:

``Sec. 2684a. Agreements to limit encroachments and other constraints on 
                        military training, testing, and operations

    ``(a) Agreements Authorized.--The Secretary of Defense or the 
Secretary of a military department may enter into an agreement with an 
eligible entity described in subsection (b) to address the use or 
development of real property in the vicinity of a military installation 
for purposes of--
            ``(1) limiting any development or use of the property that 
        would be incompatible with the mission of the installation; or
            ``(2) preserving habitat on the property in a manner that--
                    ``(A) is compatible with environmental requirements; 
                and
                    ``(B) may eliminate or relieve current or 
                anticipated environmental restrictions that would or 
                might otherwise restrict, impede, or otherwise 
                interfere, whether directly or indirectly, with current 
                or anticipated military training, testing, or operations 
                on the installation.

    ``(b) Eligible Entities.--An agreement under this section may be 
entered into with any of the following:

[[Page 116 STAT. 2706]]

            ``(1) A State or political subdivision of a State.
            ``(2) A private entity that has as its stated principal 
        organizational purpose or goal the conservation, restoration, or 
        preservation of land and natural resources, or a similar purpose 
        or goal, as determined by the Secretary concerned.

    ``(c) Inapplicability of Certain Contract Requirements.--Chapter 63 
of title 31 shall not apply to any agreement entered into under this 
section.
    ``(d) Acquisition and Acceptance of Property and Interests.--(1) An 
agreement with an eligible entity under this section may provide for--
            ``(A) the acquisition by the entity of all right, title, and 
        interest in and to any real property, or any lesser interest in 
        the property, as may be appropriate for purposes of this 
        section; and
            ``(B) the sharing by the United States and the entity of the 
        acquisition costs.

    ``(2) Property or interests may not be acquired pursuant to the 
agreement unless the owner of the property or interests consents to the 
acquisition.
    ``(3) The agreement shall require the entity to transfer to the 
United States, upon the request of the Secretary concerned, all or a 
portion of the property or interest acquired under the agreement or a 
lesser interest therein. The Secretary shall limit such transfer request 
to the minimum property or interests necessary to ensure that the 
property concerned is developed and used in a manner appropriate for 
purposes of this section.
    ``(4) The Secretary concerned may accept on behalf of the United 
States any property or interest to be transferred to the United States 
under the agreement.
    ``(5) For purposes of the acceptance of property or interests under 
the agreement, the Secretary concerned may accept an appraisal or title 
documents prepared or adopted by a non-Federal entity as satisfying the 
applicable requirements of section 301 of the Uniform Relocation 
Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 
4651) or section 3111 of title 40, if the Secretary concerned finds that 
the appraisal or title documents substantially comply with the 
requirements.
    ``(e) Acquisition of Water Rights.--The authority of the Secretary 
concerned to enter into an agreement under this section for the 
acquisition of real property (or an interest therein) includes the 
authority to support the purchase of water rights from any available 
source when necessary to support or protect the mission of a military 
installation.
    ``(f) Additional Terms and Conditions.--The Secretary concerned may 
require such additional terms and conditions in an agreement under this 
section as the Secretary considers appropriate to protect the interests 
of the United States.
    ``(g) Funding.--(1) Except as provided in paragraph (2), funds 
authorized to be appropriated for operation and maintenance of the Army, 
Navy, Marine Corps, Air Force, or Defense-wide activities may be used to 
enter into agreements under this section.
    ``(2) In the case of a military installation operated primarily with 
funds authorized to be appropriated for research, development, test, and 
evaluation, funds authorized to be appropriated for the Army, Navy, 
Marine Corps, Air Force, or Defense-wide activities for research, 
development, test, and evaluation may be used to

[[Page 116 STAT. 2707]]

enter into agreements under this section with respect to the 
installation.
    ``(h) Definitions.--In this section:
            ``(1) The term `Secretary concerned' means the Secretary of 
        Defense or the Secretary of a military department.
            ``(2) The term `State' includes the District of Columbia, 
        the Commonwealth of Puerto Rico, the Commonwealth of the 
        Northern Marianas, and the territories and possessions of the 
        United States.''.

    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2684 the following new item:

``2684a. Agreements to limit encroachments and other constraints on 
           military training, testing, and operations.''.

SEC. 2812. CONVEYANCE OF SURPLUS REAL PROPERTY FOR NATURAL RESOURCE 
            CONSERVATION PURPOSES.

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

``Sec. 2694a. Conveyance of surplus real property for natural resource 
                        conservation

    ``(a) Authority to Convey.--The Secretary of a military department 
may convey to an eligible entity described in subsection (b) any surplus 
real property that--
            ``(1) is under the administrative control of the Secretary;
            ``(2) is suitable and desirable for conservation purposes;
            ``(3) has been made available for public benefit transfer 
        for a sufficient period of time to potential claimants; and
            ``(4) is not subject to a pending request for transfer to 
        another Federal agency or for conveyance to any other qualified 
        recipient for public benefit transfer under the real property 
        disposal processes and authorities under subtitle I of title 40.

    ``(b) Eligible Entities.--The conveyance of surplus real property 
under this section may be made to any of the following:
            ``(1) A State or political subdivision of a State.
            ``(2) A nonprofit organization that exists for the primary 
        purpose of conservation of natural resources on real property.

    ``(c) Revisionary Interest and Other Deed Requirements.--(1) The 
deed of conveyance of any surplus real property conveyed under this 
section shall require the property to be used and maintained for the 
conservation of natural resources in perpetuity. If the Secretary 
concerned determines at any time that the property is not being used or 
maintained for such purpose, then, at the option of the Secretary, all 
or any portion of the property shall revert to the United States.
    ``(2) The deed of conveyance may permit the recipient of the 
property--
            ``(A) to convey the property to another eligible entity, 
        subject to the approval of the Secretary concerned and subject 
        to the same covenants and terms and conditions as provided in 
        the deed from the United States; and
            ``(B) to conduct incidental revenue-producing activities on 
        the property that are compatible with the use of the property 
        for conservation purposes.

[[Page 116 STAT. 2708]]

    ``(3) The deed of conveyance may contain such additional terms, 
reservations, restrictions, and conditions as the Secretary concerned 
considers appropriate to protect the interests of the United States.
    ``(d) Release of Covenants.--With the concurrence of the Secretary 
of Interior, the Secretary concerned may grant a release from a covenant 
included in the deed of conveyance of real property conveyed under this 
section, subject to the condition that the recipient of the property pay 
the fair market value, as determined by the Secretary concerned, of the 
property at the time of the release of the covenant. The Secretary 
concerned may reduce the amount required to be paid under this 
subsection to account for the value of the natural resource conservation 
benefit that has accrued to the United States during the period the 
covenant was in effect, if the benefit was not taken into account in 
determining the original consideration for the conveyance.
    ``(e) Congressional Notification.--The Secretary concerned may not 
approve of the reconveyance of real property under subsection (c) or 
grant the release of a covenant under subsection (d) until the Secretary 
notifies the appropriate committees of Congress of the proposed 
reconveyance or release and a period of 21 days elapses from the date 
the notification is received by the committees.
    ``(f) Limitations.--The conveyance of real property under this 
section shall not be used as a condition of allowing any defense 
activity under any Federal, State, or local permitting or review 
process. The Secretary concerned may make the conveyance, with the 
restrictions specified in subsection (c), to establish a mitigation 
bank, but only if the establishment of the mitigation bank does not 
occur in order to satisfy any condition for permitting military activity 
under a Federal, State, or local permitting or review process.
    ``(g) Consideration.--In fixing the consideration for the conveyance 
of real property under this section, or in determining the amount of any 
reduction of the amount to be paid for the release of a covenant under 
subsection (d), the Secretary concerned shall take into consideration 
any benefit that has accrued or may accrue to the United States from the 
use of such property for the conservation of natural resources.
    ``(h) Relation to Other Conveyance Authorities.--(1) The Secretary 
concerned may not make a conveyance under this section of any real 
property to be disposed of under a base closure law in a manner that is 
inconsistent with the requirements and conditions of the base closure 
law.
    ``(2) In the case of real property on Guam, the Secretary concerned 
may not make a conveyance under this section unless the Government of 
Guam has been first afforded the opportunity to acquire the real 
property as authorized by section 1 of Public Law 106-504 (114 Stat. 
2309).
    ``(i) Definitions.--In this section:
            ``(1) The term `appropriate committees of Congress' has the 
        meaning given such term in section 2801 of this title.
            ``(2) The term `base closure law' means the following:
                    ``(A) Section 2687 of this title.
                    ``(B) Title II of the Defense Authorization 
                Amendments and Base Closure and Realignment Act of 1988 
                (10 U.S.C. 2687 note).

[[Page 116 STAT. 2709]]

                    ``(C) The Defense Base Closure and Realignment Act 
                of 1990 (part A of title XXIX of Public Law 101-510; 10 
                U.S.C. 2687 note).
                    ``(D) Any other similar authority for the closure or 
                realignment of military installations that is enacted 
                after the date of the enactment of the Bob Stump 
                National Defense Authorization Act for Fiscal Year 2003.
            ``(3) The term `Secretary concerned' means the Secretary of 
        a military department.
            ``(4) The term `State' includes the District of Columbia, 
        the Commonwealth of Puerto Rico, the Commonwealth of the 
        Northern Marianas, and the territories and possessions of the 
        United States.''.

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2694 the 
following new item:

``2694a. Conveyance of surplus real property for natural resource 
           conservation.''.

    (b) Acceptance of Funds to Cover Administrative Expenses.--Section 
2695(b) of such title is amended by adding at the end the following new 
paragraph:
            ``(5) The conveyance of real property under section 2694a of 
        this title.''.

    (c) Agreements With Nonprofit Natural Resource Conservation 
Organizations.--Section 2701(d) of such title is amended--
            (1) in the subsection heading, by striking ``Agencies'' and 
        inserting ``Entities'';
            (2) in paragraph (1)--
                    (A) by striking ``with any State or local government 
                agency, or with any Indian tribe,'' and inserting ``any 
                State or local government agency, any Indian tribe, or 
                any nonprofit conservation organization''; and
                    (B) by striking ``the agency'' and inserting ``the 
                agency, Indian tribe, or organization''; and
            (3) by striking paragraph (4), as redesignated by section 
        311(2) of this Act, and inserting the following new paragraph:
            ``(4) Definitions.--In this subsection:
                    ``(A) The term `Indian tribe' has the meaning given 
                such term in section 101(36) of CERCLA (42 U.S.C. 
                9601(36)).
                    ``(B) The term `nonprofit conservation organization' 
                means any non-governmental nonprofit organization whose 
                primary purpose is conservation of open space or natural 
                resources.''.

SEC. 2813. MODIFICATION OF DEMONSTRATION PROGRAM ON REDUCTION IN LONG-
            TERM FACILITY MAINTENANCE COSTS.

    (a) Administrator of Program.--Subsection (a) of section 2814 of the 
Military Construction Authorization Act for Fiscal Year 2002 (division B 
of Public Law 107-107; 115 Stat. 1310; 10 U.S.C. 2809 note) is amended 
by striking ``Secretary of the Army'' and inserting ``Secretary of 
Defense or the Secretary of a military department''.
    (b) Contracts.--Subsection (b) of such section is amended to read as 
follows:

[[Page 116 STAT. 2710]]

    ``(b) Contracts.--(1) Not more than 12 contracts per military 
department may contain requirements referred to in subsection (a) for 
the purpose of the demonstration program.
    ``(2) The demonstration program may only cover contracts entered 
into on or after the date of the enactment of the Bob Stump National 
Defense Authorization Act for Fiscal Year 2003, except that the 
Secretary of the Army shall treat any contract containing requirements 
referred to in subsection (a) that was entered into under the authority 
in such subsection between that date and December 28, 2001, as a 
contract for the purpose of the demonstration program.''.
    (c) Reporting Requirements.--Subsection (d) of such section is 
amended by striking ``Secretary of the Army'' and inserting ``Secretary 
of Defense''.
    (d) Funding.--(1) Subsection (f) of such section is amended by 
striking ``the Army'' and inserting ``the military departments or 
defense-wide''.
    (2) <<NOTE: 10 USC 2809 note.>> The amendment made by paragraph (1) 
shall not affect the availability for the purpose of the demonstration 
program under section 2814 of the Military Construction Authorization 
Act for Fiscal Year 2002, as amended by this section, of any amounts 
authorized to be appropriated before the date of the enactment of this 
Act for the Army for military construction that have been obligated for 
the demonstration program, but not expended, as of that date.

SEC. 2814. EXPANDED AUTHORITY TO TRANSFER PROPERTY AT MILITARY 
            INSTALLATIONS TO BE CLOSED TO PERSONS WHO CONSTRUCT OR 
            PROVIDE MILITARY FAMILY HOUSING.

    (a) 1988 Law.--Section 204(e)(1) of the Defense Authorization 
Amendments and Base Closure and Realignment Act (Public Law 100-526; 10 
U.S.C. 2687 note) is amended by striking the last sentence.
    (b) 1990 Law.--Section 2905(f)(1) of the Defense Base Closure and 
Realignment Act of 1990 (part A of title XXIX of Public Law 101-510; 10 
U.S.C. 2687 note) is amended by striking the last sentence.

                      Subtitle C--Land Conveyances

                        PART I--ARMY CONVEYANCES

SEC. 2821. <<NOTE: 16 USC 668dd note.>> TRANSFER OF JURISDICTION, FORT 
            MCCLELLAN, ALABAMA, TO ESTABLISH MOUNTAIN LONGLEAF NATIONAL 
            WILDLIFE REFUGE.

    (a) Transfer <<NOTE: Deadline.>> Required.--Not later than 180 days 
after the date of the enactment of this Act, the Secretary of the Army 
shall transfer, without reimbursement, to the administrative 
jurisdiction of the Secretary of the Interior a parcel of real property 
at Fort McClellan, Alabama, consisting of approximately 7,600 acres, 
which is described as the ``acquisition area'' in a memorandum of 
agreement between the Secretaries numbered 1448-40181-00-K-014.

    (b) Establishment and Management of Refuge.--(1) The Secretary of 
the Interior shall establish on the real property transferred under 
subsection (a) the Mountain Longleaf National Wildlife

[[Page 116 STAT. 2711]]

Refuge to enhance, manage, and protect the unique mountain longleaf pine 
ecosystem on the property.
    (2) The Secretary of Interior shall manage the Mountain Longleaf 
National Wildlife Refuge in a manner that--
            (A) conserves and enhances populations of fish, wildlife, 
        and plants in the Refuge, including migratory birds and species 
        that are threatened or endangered, with particular emphasis on 
        the protection of the mountain longleaf pine plant ecosystem;
            (B) protects and enhances the quality of aquatic habitat in 
        the Refuge;
            (C) provides, in coordination with the Alabama Department of 
        Conservation and Natural Resources, the public with recreational 
        opportunities, including hunting, fishing, wildlife observation, 
        and photography;
            (D) provides opportunities for scientific research and 
        education on land use and environmental law; and
            (E) is consistent with environmental restoration efforts 
        conducted by the Secretary of the Army on the Refuge or on lands 
        adjacent to the Refuge.

    (c) Environmental Restoration.--(1) The Secretary of the Army shall 
continue to be responsible for unexploded ordnance, discarded military 
munitions, and munitions constituents on the real property transferred 
under subsection (a) and shall continue to follow a remediation process 
in accordance with the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et seq.).
    (2) The Secretary of the Army shall appropriately factor the 
management directives for the Mountain Longleaf National Wildlife 
Refuge, as described in subsection (b), into the remedy selection 
process for the property transferred under subsection (a).
    (d) Relation to Other Environmental Laws.--Nothing in this section 
shall relieve, and no action taken under this section may relieve, the 
Secretary of the Army or the Secretary of the Interior, or any other 
person from any liability or other obligation under the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980, the 
Resource Conservation and Recovery Act of 1976 (42 U.S.C. 6901 et seq.), 
or any other Federal or State law.
    (e) Assistance.--The Secretary of the Army may provide up to 
$500,000 from the funds in the Base Realignment and Closure Account 1990 
to the Secretary of Interior to facilitate the establishment of the 
Mountain Longleaf National Wildlife Refuge and to support environmental 
research at the Refuge during the first two years of the operation of 
the Refuge.

SEC. 2822. LAND CONVEYANCES, LANDS IN ALASKA NO LONGER REQUIRED FOR 
            NATIONAL GUARD PURPOSES.

    (a) Conveyance Authorized.--The Secretary of the Army may convey to 
an eligible entity described in subsection (b) all right, title, and 
interest of the United States in and to any parcel of real property, 
including any improvements thereon, in the State of Alaska described in 
subsection (c) if the Secretary determines the conveyance would be in 
the public interest.
    (b) Eligible Recipients.--The following entities shall be eligible 
to receive real property under subsection (a):
            (1) The State of Alaska.
            (2) A governmental entity in the State of Alaska.

[[Page 116 STAT. 2712]]

            (3) A Native Corporation (as defined in section 3 of the 
        Alaska Native Claims Settlement Act (43 U.S.C. 1602)).
            (4) The Metlakatla Indian Community.

    (c) Covered Property.--Subsection (a) applies to real property 
located in the State of Alaska that--
            (1) is under the jurisdiction of the Department of the Army 
        and, before December 2, 1980, was under such jurisdiction for 
        the use of the Alaska National Guard;
            (2) is located in a unit of the National Wildlife Refuge 
        System designated in the Alaska National Interest Lands 
        Conservation Act (Public Law 96-487; 16 U.S.C. 668dd note);
            (3) is excess to the needs of the Alaska National Guard and 
        the Department of Defense; and
            (4) the Secretary determines that--
                    (A) the anticipated cost to the United States of 
                retaining the property exceeds the value of such 
                property; or
                    (B) the condition of the property makes it 
                unsuitable for retention by the United States.

    (d) Consideration.--The conveyance of real property under this 
section shall, at the election of the Secretary, be for no consideration 
or for consideration in an amount determined by the Secretary to be 
appropriate under the circumstances.
    (e) Use of Consideration.--If consideration is received for the 
conveyance of real property under subsection (a), the Secretary may use 
the amounts received, in such amounts as are provided in appropriations 
Acts, to pay for--
            (1) the cost of a survey described in subsection (f) with 
        respect to the property;
            (2) the cost of carrying out any environmental assessment, 
        study, or analysis, and any remediation, that may be required 
        under Federal law, or is considered appropriate by the 
        Secretary, in connection with the property or the conveyance of 
        the property; and
            (3) any other costs incurred by the Secretary in conveying 
        the property.

    (f) Description of Property.--The exact acreage and legal 
description of any real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary.
    (g) Additional Terms and Conditions.--The Secretary may require such 
additional terms and conditions in connection with a conveyance of real 
property under this section as the Secretary considers appropriate to 
protect the interests of the United States.

SEC. 2823. LAND CONVEYANCE, SUNFLOWER ARMY AMMUNITION PLANT, KANSAS.

    (a) Conveyance Authorized.--The Administrator of General Services 
may convey to the Johnson County Park and Recreation District, Kansas 
(in this section referred to as the ``District''), all right, title, and 
interest of the United States in and to a parcel of real property, 
including any improvements thereon, at the Sunflower Army Ammunition 
Plant in the State of Kansas consisting of approximately 2,0