Text: H.R.1588 — 108th Congress (2003-2004)All Information (Except Text)

Text available as:

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Public Law No: 108-136 (11/24/2003)

 
[108th Congress Public Law 136]
[From the U.S. Government Printing Office]


[DOCID: f:publ136.108]

[[Page 1391]]

         NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2004

[[Page 117 STAT. 1392]]

Public Law 108-136
108th Congress

                                 An Act


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

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

SECTION 1. SHORT TITLE.

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

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

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

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

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

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

                        Subtitle B--Army Programs

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

                        Subtitle C--Navy Programs

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

[[Page 117 STAT. 1393]]

                     Subtitle D--Air Force Programs

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

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

               Subtitle A--Authorization of Appropriations

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

     Subtitle B--Program Requirements, Restrictions, and Limitations

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

                  Subtitle C--Ballistic Missile Defense

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

                        Subtitle D--Other Matters

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

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

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

                  Subtitle B--Environmental Provisions

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

[[Page 117 STAT. 1394]]

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

                 Subtitle C--Workplace and Depot Issues

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

                        Subtitle D--Other Matters

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

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

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

                       Subtitle B--Reserve Forces

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

              Subtitle C--Authorizations of Appropriations

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

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Matters

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

[[Page 117 STAT. 1395]]

                  Subtitle B--Reserve Component Matters

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

             Subtitle C--ROTC and Military Service Academies

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

        Subtitle D--Other Military Education and Training Matters

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

                   Subtitle E--Administrative Matters

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

                  Subtitle F--Military Justice Matters

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

[[Page 117 STAT. 1396]]

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

                          Subtitle G--Benefits

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

                      Subtitle H--Domestic Violence

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

                        Subtitle I--Other Matters

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

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

[[Page 117 STAT. 1397]]

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

            Subtitle C--Travel and Transportation Allowances

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

              Subtitle D--Retired Pay and Survivor Benefits

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

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

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

                        Subtitle F--Other Matters

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

                    TITLE VII--HEALTH CARE PROVISIONS

               Subtitle A--Enhanced Benefits for Reserves

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

                 Subtitle B--Other Benefits Improvements

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

[[Page 117 STAT. 1398]]

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

            Subtitle C--Planning, Programming, and Management

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

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

              Subtitle A--Acquisition Policy and Management

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

      Subtitle B--United States Defense Industrial Base Provisions

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

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

            Part II--Requirements Relating to Specific Items

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

              Part III--Other Domestic Source Requirements

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

    Subtitle C--Defense Acquisition and Support Workforce Flexibility

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

[[Page 117 STAT. 1399]]

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

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

        Subtitle E--Acquisition-Related Reports and Other Matters

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

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

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

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

                      Subtitle B--Space Activities

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

        Subtitle C--Department of Defense Intelligence Components

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

                        Subtitle D--Other Matters

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

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec. 1001. Transfer authority.

[[Page 117 STAT. 1400]]

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

                 Subtitle B--Naval Vessels and Shipyards

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

                     Subtitle C--Counterdrug Matters

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

                           Subtitle D--Reports

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

    Subtitle E--Codifications, Definitions, and Technical Amendments

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

                        Subtitle F--Other Matters

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

[[Page 117 STAT. 1401]]

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

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

  Subtitle A--Department of Defense National Security Personnel System

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

     Subtitle B--Department of Defense Civilian Personnel Generally

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

     Subtitle C--Other Federal Government Civilian Personnel Matters

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

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

                  Subtitle A--Matters Relating to Iraq

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

           Subtitle B--Matters Relating to Export Protections

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

         Subtitle C--Administrative Requirements and Authorities

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

       Subtitle D--Other Reports and Sense of Congress Statements

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

[[Page 117 STAT. 1402]]

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

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

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

                 TITLE XIV--SERVICES ACQUISITION REFORM

Sec. 1401. Short title.

             Subtitle A--Acquisition Workforce and Training

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

        Subtitle B--Adaptation of Business Acquisition Practices

           Part I--Adaptation of Business Management Practices

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

                 Part II--Other Acquisition Improvements

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

              Subtitle C--Acquisitions of Commercial Items

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

                        Subtitle D--Other Matters

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

           TITLE XV--VETERANS' DISABILITY BENEFITS COMMISSION

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

              TITLE XVI--DEFENSE BIOMEDICAL COUNTERMEASURES

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

[[Page 117 STAT. 1403]]

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

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

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

                             TITLE XXI--ARMY

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

                            TITLE XXII--NAVY

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

                         TITLE XXIII--AIR FORCE

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

                      TITLE XXIV--DEFENSE AGENCIES

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

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                 PROGRAM

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

             TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

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

         TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

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

[[Page 117 STAT. 1404]]

                    TITLE XXVIII--GENERAL PROVISIONS

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

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

         Subtitle B--Real Property and Facilities Administration

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

                Subtitle C--Base Closure and Realignment

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

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

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

                        Part II--Navy Conveyances

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

                     Part III--Air Force Conveyances

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

                       Part IV--Other Conveyances

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

                        Subtitle E--Other Matters

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

[[Page 117 STAT. 1405]]

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

       TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

          Subtitle A--National Security Programs Authorizations

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

    Subtitle B--Program Authorizations, Restrictions, and Limitations

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

                    Subtitle C--Proliferation Matters

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

                        Subtitle D--Other Matters

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

        Subtitle E--Consolidation of National Security Provisions

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

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

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

                  TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

[[Page 117 STAT. 1406]]

                   TITLE XXXV--MARITIME ADMINISTRATION

Sec. 3501. Short title.

           Subtitle A--Maritime Administration Reauthorization

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

        Subtitle B--Amendments to Title XI Loan Guarantee Program

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

                   Subtitle C--Maritime Security Fleet

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

    Subtitle D--National Defense Tank Vessel Construction Assistance

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

                TITLE XXXVI--NUCLEAR SECURITY INITIATIVE

Sec. 3601. Short title.

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

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

       Subtitle B--Relations Between the United States and Russia

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

                        Subtitle C--Other Matters

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

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

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

[[Page 117 STAT. 1407]]

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

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

                        Subtitle B--Army Programs

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

                        Subtitle C--Navy Programs

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

                     Subtitle D--Air Force Programs

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

               Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

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

SEC. 102. NAVY AND MARINE CORPS.

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

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

[[Page 117 STAT. 1408]]

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

SEC. 103. AIR FORCE.

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

SEC. 104. DEFENSE-WIDE ACTIVITIES.

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

                        Subtitle B--Army Programs

SEC. 111. STRYKER VEHICLE PROGRAM.

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

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

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

SEC. 112. CH-47 HELICOPTER PROGRAM.

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

[[Page 117 STAT. 1409]]

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

                        Subtitle C--Navy Programs

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

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

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

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

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

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

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

[[Page 117 STAT. 1410]]

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

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

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

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

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

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

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

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

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

[[Page 117 STAT. 1411]]

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

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

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

                     Subtitle D--Air Force Programs

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

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

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

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

[[Page 117 STAT. 1412]]

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

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

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

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

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

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

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

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

[[Page 117 STAT. 1413]]

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

SEC. 135. PROCUREMENT OF TANKER <<NOTE: 10 USC 2401a note.>>  AIRCRAFT.

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

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

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

[[Page 117 STAT. 1414]]

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

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

               Subtitle A--Authorization of Appropriations

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

     Subtitle B--Program Requirements, Restrictions, and Limitations

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

                  Subtitle C--Ballistic Missile Defense

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

                        Subtitle D--Other Matters

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

               Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

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

SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY.

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

[[Page 117 STAT. 1415]]

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

     Subtitle B--Program Requirements, Restrictions, and Limitations

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

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

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

[[Page 117 STAT. 1416]]

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

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

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

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

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

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

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

[[Page 117 STAT. 1417]]

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

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

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

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

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

SEC. 214. FUTURE COMBAT SYSTEMS.

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

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

[[Page 117 STAT. 1418]]

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

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

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

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

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

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

[[Page 117 STAT. 1419]]

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

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

                  Subtitle C--Ballistic Missile Defense

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

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

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

SEC. 222. FIELDING OF BALLISTIC MISSILE DEFENSE CAPABILITIES.

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

[[Page 117 STAT. 1420]]

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

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

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

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

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

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

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

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

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

[[Page 117 STAT. 1421]]

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

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

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

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

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

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

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

                        Subtitle D--Other Matters

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

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

``Sec. 2365. Global Research Watch Program

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

[[Page 117 STAT. 1422]]

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

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

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

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

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

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

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

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

[[Page 117 STAT. 1423]]

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

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

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

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

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

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

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

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

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

[[Page 117 STAT. 1424]]

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

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

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

[[Page 117 STAT. 1425]]

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

SEC. 235. BLUE FORCES TRACKING INITIATIVE.

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

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

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

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

                  Subtitle B--Environmental Provisions

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

[[Page 117 STAT. 1426]]

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

                 Subtitle C--Workplace and Depot Issues

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

                        Subtitle D--Other Matters

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

               Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

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

[[Page 117 STAT. 1427]]

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

SEC. 302. WORKING CAPITAL FUNDS.

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

SEC. 303. OTHER DEPARTMENT OF DEFENSE PROGRAMS.

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

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

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

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

[[Page 117 STAT. 1428]]

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

                  Subtitle B--Environmental Provisions

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

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

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

[[Page 117 STAT. 1429]]

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

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

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

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

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

[[Page 117 STAT. 1430]]

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

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

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

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

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

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

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

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

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

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

[[Page 117 STAT. 1431]]

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

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

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

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

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

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

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

[[Page 117 STAT. 1432]]

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

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

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

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

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

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

[[Page 117 STAT. 1433]]

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

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

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

SEC. 319. MILITARY READINESS AND MARINE MAMMAL PROTECTION.

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

[[Page 117 STAT. 1434]]

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

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

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

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

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

[[Page 117 STAT. 1435]]

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

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

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

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

[[Page 117 STAT. 1436]]

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

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

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

[[Page 117 STAT. 1437]]

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

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

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

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

[[Page 117 STAT. 1438]]

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

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

[[Page 117 STAT. 1439]]

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

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

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

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

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

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

[[Page 117 STAT. 1440]]

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

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

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

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

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

[[Page 117 STAT. 1441]]

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

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

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

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

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

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

[[Page 117 STAT. 1442]]

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

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

                 Subtitle C--Workplace and Depot Issues

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

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

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

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

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

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

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

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

[[Page 117 STAT. 1443]]

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

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

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

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

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

[[Page 117 STAT. 1444]]

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

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

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

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

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

[[Page 117 STAT. 1445]]

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

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

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

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

[[Page 117 STAT. 1446]]

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

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

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

[[Page 117 STAT. 1447]]

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

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

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

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

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

[[Page 117 STAT. 1448]]

                        Subtitle D--Other Matters

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

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

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

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

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

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

SEC. 344. DEPARTMENT OF DEFENSE TELECOMMUNICATIONS BENEFIT.

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

[[Page 117 STAT. 1449]]

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

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

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

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

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

[[Page 117 STAT. 1450]]

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

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

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

                       Subtitle B--Reserve Forces

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

              Subtitle C--Authorizations of Appropriations

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

                        Subtitle A--Active Forces

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

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

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

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

SEC. 403. PERSONNEL STRENGTH AUTHORIZATION AND ACCOUNTING PROCESS.

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

[[Page 117 STAT. 1451]]

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

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

[[Page 117 STAT. 1452]]

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

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

                       Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED <<NOTE: 10 USC 12001 note.>>  
            RESERVE.

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

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

[[Page 117 STAT. 1453]]

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

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

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

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

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

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

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

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

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

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

[[Page 117 STAT. 1454]]

              Subtitle C--Authorizations of Appropriations

SEC. 421. MILITARY PERSONNEL.

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

SEC. 422. ARMED FORCES RETIREMENT HOME.

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

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Matters

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

                  Subtitle B--Reserve Component Matters

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

             Subtitle C--ROTC and Military Service Academies

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

[[Page 117 STAT. 1455]]

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

        Subtitle D--Other Military Education and Training Matters

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

                   Subtitle E--Administrative Matters

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

                  Subtitle F--Military Justice Matters

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

                          Subtitle G--Benefits

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

                      Subtitle H--Domestic Violence

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

                        Subtitle I--Other Matters

Sec. 581. Recognition of military families.

[[Page 117 STAT. 1456]]

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

                  Subtitle A--Officer Personnel Matters

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

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

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

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

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

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

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

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

[[Page 117 STAT. 1457]]

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

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

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

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

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

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

[[Page 117 STAT. 1458]]

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

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

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

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

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

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

SEC. 508. <<NOTE: 10 USC 5033 note.>> REAPPOINTMENT OF INCUMBENT CHIEF 
            OF NAVAL OPERATIONS.

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

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

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

[[Page 117 STAT. 1459]]

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

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

                  Subtitle B--Reserve Component Matters

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

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

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

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

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

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

[[Page 117 STAT. 1460]]

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

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

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

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

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

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

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

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

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

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

[[Page 117 STAT. 1461]]

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

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

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

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

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

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

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

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

[[Page 117 STAT. 1462]]

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

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

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

             Subtitle C--ROTC and Military Service Academies

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

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

[[Page 117 STAT. 1463]]

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

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

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

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

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

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

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

[[Page 117 STAT. 1464]]

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

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

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

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

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

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

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

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

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

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

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

[[Page 117 STAT. 1465]]

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

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

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

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

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

[[Page 117 STAT. 1466]]

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

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

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

[[Page 117 STAT. 1467]]

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

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

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

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

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

[[Page 117 STAT. 1468]]

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

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

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

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

[[Page 117 STAT. 1469]]

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

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

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

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

[[Page 117 STAT. 1470]]

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

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

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

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

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

[[Page 117 STAT. 1471]]

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

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

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

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

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

[[Page 117 STAT. 1472]]

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

        Subtitle D--Other Military Education and Training Matters

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

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

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

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

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

[[Page 117 STAT. 1473]]

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

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

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

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

[[Page 117 STAT. 1474]]

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

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

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

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

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

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

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

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

[[Page 117 STAT. 1475]]

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

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

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

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

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

                   Subtitle D--Administrative Matters

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

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

[[Page 117 STAT. 1476]]

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

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

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

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

[[Page 117 STAT. 1477]]

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

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

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

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

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

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

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

[[Page 117 STAT. 1478]]

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

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

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

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

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

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

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

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

[[Page 117 STAT. 1479]]

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

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

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

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

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

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

SEC. 546. POLICY <<NOTE: 10 USC 113 note.>> ON PUBLIC IDENTIFICATION OF 
            CASUALTIES.

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

[[Page 117 STAT. 1480]]

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

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

SEC. 547. SPACE PERSONNEL CAREER <<NOTE: 10 USC 2271 note.>> FIELDS.

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

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

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

[[Page 117 STAT. 1481]]

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

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

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

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

                  Subtitle E--Military Justice Matters

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

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

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

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

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

[[Page 117 STAT. 1482]]

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

                          Subtitle F--Benefits

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

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

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

[[Page 117 STAT. 1483]]

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

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

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

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

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

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

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

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

[[Page 117 STAT. 1484]]

                      Subtitle G--Domestic Violence

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

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

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

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

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

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

[[Page 117 STAT. 1485]]

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

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

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

SEC. 573. EXCEPTIONAL ELIGIBILITY FOR TRANSITIONAL COMPENSATION.

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

[[Page 117 STAT. 1486]]

SEC. 574. TYPES OF ADMINISTRATIVE SEPARATIONS TRIGGERING COVERAGE.

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

SEC. 575. <<NOTE: 10 USC 1562 note.>> COMPTROLLER GENERAL REVIEW AND 
            REPORT.

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

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

SEC. 576. FATALITY REVIEWS.

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

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

``Sec.
``4061. Fatality reviews.

``Sec. 4061. Fatality reviews

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

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

[[Page 117 STAT. 1487]]

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

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

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

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

``Sec. 6036. Fatality reviews

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

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

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

``6036. Fatality reviews.''.

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

[[Page 117 STAT. 1488]]

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

``Sec.
``9061. Fatality reviews.

``Sec. 9061. Fatality reviews

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

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

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

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

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

SEC. 577. SENSE OF CONGRESS.

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

[[Page 117 STAT. 1489]]

                        Subtitle H--Other Matters

SEC. 581. <<NOTE: 10 USC 1781 note.>> RECOGNITION OF MILITARY FAMILIES.

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

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

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

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

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

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

[[Page 117 STAT. 1490]]

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

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

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

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

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

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

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

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

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

[[Page 117 STAT. 1491]]

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

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

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

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

[[Page 117 STAT. 1492]]

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

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

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

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

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

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

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

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

[[Page 117 STAT. 1493]]

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

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

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

SEC. 587. STUDY OF NATIONAL GUARD CHALLENGE PROGRAM.

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

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

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

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

[[Page 117 STAT. 1494]]

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

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

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

            Subtitle C--Travel and Transportation Allowances

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

[[Page 117 STAT. 1495]]

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

              Subtitle D--Retired Pay and Survivor Benefits

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

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

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

                        Subtitle F--Other Matters

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

Subtitle A--Pay and Allowances <<NOTE: 37 USC 1009 note.>> 

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

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

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

[[Page 117 STAT. 1496]]

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


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

[[Page 117 STAT. 1497]]

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


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


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

[[Page 117 STAT. 1498]]

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

SEC. 602. REVISED ANNUAL PAY ADJUSTMENT PROCESS.

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

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

[[Page 117 STAT. 1499]]

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

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

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

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

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

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

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

[[Page 117 STAT. 1500]]

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

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

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

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

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

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

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

[[Page 117 STAT. 1501]]

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

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

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

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

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

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

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

[[Page 117 STAT. 1502]]

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

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

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

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

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

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

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

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

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

[[Page 117 STAT. 1503]]

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

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

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

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

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

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

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

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

[[Page 117 STAT. 1504]]

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

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

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

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

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

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

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

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

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

[[Page 117 STAT. 1505]]

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

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

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

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

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

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

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

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

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

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

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

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

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

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

[[Page 117 STAT. 1506]]

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

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

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

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

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

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

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

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

[[Page 117 STAT. 1507]]

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

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

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

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

[[Page 117 STAT. 1508]]

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

            Subtitle C--Travel and Transportation Allowances

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

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

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

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

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

[[Page 117 STAT. 1509]]

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

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

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

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

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

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

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

[[Page 117 STAT. 1510]]

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

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

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

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

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

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

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

[[Page 117 STAT. 1511]]

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

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

              Subtitle D--Retired Pay and Survivor Benefits

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

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

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

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

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

[[Page 117 STAT. 1512]]

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

[[Page 117 STAT. 1513]]

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

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

[[Page 117 STAT. 1514]]

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

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

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

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

[[Page 117 STAT. 1515]]

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

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

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

Such single level percentages shall be used for the purposes of 
subsection (b)(3).''.

[[Page 117 STAT. 1516]]

            (5) Section 1466(b) of such title is amended--
                    (A) in paragraph (1), by striking ``sections 1465(a) 
                and 1465(c)'' and inserting ``sections 1465(a), 
                1465(b)(3), 1465(c)(2), and 1465(c)(3)''; and
                    (B) by adding at the end of paragraph (2) the 
                following new subparagraph:
            ``(D) The amount for that year determined by the Secretary 
        of Defense under section 1465(b)(3) of this title for the cost 
        to the Fund arising from increased amounts payable from the Fund 
        by reason of section 1413, 1413a, or 1414 of this title.''.
            (6) <<NOTE: Effective date. 10 USC 1413a note.>> The 
        amendments made by this subsection shall take effect as of 
        October 1, 2003. The Secretary of Defense shall provide for such 
        administrative adjustments as necessary to provide for payments 
        made for any period during fiscal year 2004 before the date of 
        the enactment of this Act to be treated as having been made in 
        accordance with such amendments and for the provisions of such 
        amendments to be implemented as if enacted as of September 30, 
        2003.

    (d) Clerical Amendments.--The table of sections at the beginning of 
chapter 71 of such title is amended--
            (1) by striking the item relating to section 1413; and
            (2) by striking the item relating to section 1414 and 
        inserting the following:

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

    (e) <<NOTE: 10 USC 1414 note.>> Effective Date.--The amendments made 
by subsections (a) and (b) shall take effect on January 1, 2004, and 
shall apply to payments for months beginning on or after that date.

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

    (a) Extension of Program to Combat-Related Disabilities Rated Below 
60 Percent.--(1) Subsection (e) of section 1413a of title 10, United 
States Code, is amended to read as follows:
    ``(e) Combat-Related Disability.--In this section, the term `combat-
related disability' means a disability that is compensable under the 
laws administered by the Secretary of Veterans Affairs and that--
            ``(1) is attributable to an injury for which the member was 
        awarded the Purple Heart; or
            ``(2) was incurred (as determined under criteria prescribed 
        by the Secretary of Defense)--
                    ``(A) as a direct result of armed conflict;
                    ``(B) while engaged in hazardous service;
                    ``(C) in the performance of duty under conditions 
                simulating war; or
                    ``(D) through an instrumentality of war.''.

    (2) Subsection (c)(2) of such section is amended by striking 
``qualifying''.
    (b) Clarification of Service Required for Eligibility.--Subsection 
(c)(1) of such section is amended by inserting before the semicolon the 
following: ``or is entitled to retired pay under section 12731 of this 
title (other than by reason of section 12731b of this title)''.
    (c) Clarification of Determination of Amount of Compensation.--
Subsection (b)(1) of such section is amended by

[[Page 117 STAT. 1517]]

striking ``for a'' and all that follows and inserting ``under subsection 
(a) for any month is the amount of compensation to which the retiree is 
entitled under title 38 for that month, determined without regard to any 
disability of the retiree that is not a combat-related disability.''.
    (d) Revised Coordination Provision.--Subsection (f) of such section 
is amended to read as follows:
    ``(f) Coordination With Concurrent Receipt Provision.--Subsection 
(d) of section 1414 of this title provides for coordination between 
benefits under that section and under this section.''.
    (e) Clerical Amendments.--(1) The heading of such section is amended 
to read as follows:

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

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

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

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

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

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

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

    (a) Surviving Spouse Annuity.--Paragraph (1) of section 1448(f) of 
title 10, United States Code, is amended to read as follows:
            ``(1) Surviving spouse annuity.--The Secretary concerned 
        shall pay an annuity under this subchapter to the surviving 
        spouse of a person who--
                    ``(A) is eligible to provide a reserve-component 
                annuity and dies--
                          ``(i) before being notified under section 
                      12731(d) of this title that he has completed the 
                      years of service required for eligibility for 
                      reserve-component retired pay; or

[[Page 117 STAT. 1518]]

                          ``(ii) during the 90-day period beginning on 
                      the date he receives notification under section 
                      12731(d) of this title that he has completed the 
                      years of service required for eligibility for 
                      reserve-component retired pay if he had not made 
                      an election under subsection (a)(2)(B) to 
                      participate in the Plan; or
                    ``(B) is a member of a reserve component not 
                described in subparagraph (A) and dies from an injury or 
                illness incurred or aggravated in the line of duty 
                during inactive-duty training.''.

    (b) Conforming Amendment.--The heading for subsection (f) of section 
1448 of such title is amended by inserting ``or Before'' after ``Dying 
When''.
    (c) <<NOTE: Applicability. 10 USC 1448 note.>> Effective Date.--
Subparagraph (B) of section 1448(f)(1) of title 10, United States Code, 
as added by subsection (a), shall take effect as of September 10, 2001, 
and shall apply with respect to performance of inactive-duty training 
(as defined in section 101(d) of title 10, United States Code) on or 
after that date.

SEC. 645. SURVIVOR BENEFIT PLAN MODIFICATIONS.

    (a) Eligibility of Dependent Children for Survivor Annuities in 
Cases of Deaths of Members on Active Duty.--(1) Paragraph (2) of section 
1448(d) of title 10, United States Code, is amended to read as follows:
            ``(2) Dependent children.--
                    ``(A) Annuity when no eligible surviving spouse.--In 
                the case of a member described in paragraph (1), the 
                Secretary concerned shall pay an annuity under this 
                subchapter to the member's dependent children under 
                section 1450(a)(2) of this title as applicable.
                    ``(B) Optional annuity when there is an eligible 
                surviving spouse.--In the case of a member described in 
                paragraph (1) who dies on or after the date of the 
                enactment of the National Defense Authorization Act for 
                Fiscal Year 2004 and for whom there is a surviving 
                spouse eligible for an annuity under paragraph (1), the 
                Secretary may pay an annuity under this subchapter to 
                the member's dependent children under section 1450(a)(3) 
                of this title, if applicable, instead of paying an 
                annuity to the surviving spouse under paragraph (1), if 
                the Secretary concerned, in consultation with the 
                surviving spouse, determines it appropriate to provide 
                an annuity for the dependent children under this 
                paragraph instead of an annuity for the surviving spouse 
                under paragraph (1).''.

    (2) Paragraph (1) of such section is amended by striking ``The 
Secretary concerned'' and inserting ``Except as provided in paragraph 
(2)(B), the Secretary concerned''.
    (b) Vitiation of Survivor Annuity Elections Made by Disability 
Retirees Who Die of Disability-Related Causes.--(1) Section 1448(b)(1) 
of such title is amended by adding at the end the following new 
subparagraph:
                    ``(F) Vitiation of election by disability retiree 
                who dies of disability-related cause.--If a member 
                retired on or after the date of the enactment of the 
                National Defense Authorization Act for Fiscal Year 2004 
                under chapter 61 of this title dies within one year 
                after the date on which the member is so retired and the 
                cause

[[Page 117 STAT. 1519]]

                of death is related to a disability for which the member 
                was retired under that chapter (as determined under 
                regulations prescribed by the Secretary of Defense)--
                          ``(i) an election made by the member under 
                      paragraph (1) to provide an annuity under the Plan 
                      to any person other than a dependent of that 
                      member (as defined in section 1072(2) of this 
                      title) is vitiated; and
                          ``(ii) the amounts by which the member's 
                      retired pay was reduced under section 1452 of this 
                      title shall be refunded and paid to the person to 
                      whom the annuity under the Plan would have been 
                      paid pursuant to such election.''.

    (2) Section 1458 of such title is amended by adding at the end the 
following new subsection:
    ``(j) Vitiation of Election by Disability Retiree Who Dies of 
Disability-Related Cause.--If a member retired on or after the date of 
the enactment of the National Defense Authorization Act for Fiscal Year 
2004 under chapter 61 of this title dies within one year after the date 
on which the member is so retired and the cause of death is related to a 
disability for which the member was retired under that chapter (as 
determined under regulations prescribed by the Secretary of Defense)--
            ``(1) an election made by the member to provide a 
        supplemental spouse annuity under this subchapter is vitiated; 
        and
            ``(2) the amounts by which the member's retired pay was 
        reduced under section 1460 of this title shall be refunded and 
        paid to the person to whom the supplemental spouse annuity would 
        have been paid pursuant to such election.''.

    (c) Insurable Interest Annuity Deemed Elections.--Section 1448(d) of 
such title is amended by adding at the end the following new paragraph:
            ``(6) Deemed election.--
                    ``(A) Annuity for dependent.--In the case of a 
                member described in paragraph (1) who dies on or after 
                the date of the enactment of the National Defense 
                Authorization Act for Fiscal Year 2004, the Secretary 
                concerned may, if no other annuity is payable on behalf 
                of the member under this subchapter, pay an annuity to a 
                natural person who has an insurable interest in such 
                member as if the annuity were elected by the member 
                under subsection (b)(1). The Secretary concerned may pay 
                such an annuity under this paragraph only in the case of 
                a person who is a dependent of that member (as defined 
                in section 1072(2) of this title).
                    ``(B) Computation of annuity.--An annuity under this 
                subparagraph shall be computed under section 1451(b) of 
                this title as if the member had retired for total 
                disability on the date of death with reductions as 
                specified under section 1452(c) of this title, as 
                applicable to the ages of the member and the natural 
                person with an insurable interest.''.

[[Page 117 STAT. 1520]]

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

    (a) Amount of Death Gratuity.--Section 1478(a) of title 10, United 
States Code, is amended by striking ``$6,000'' and inserting 
``$12,000''.
    (b) <<NOTE: Applicability. 10 USC 1478 note.>> Effective Date.--The 
amendment made by subsection (a) shall take effect as of September 11, 
2001, and shall apply with respect to deaths occurring on or after that 
date.

SEC. 647. DEATH BENEFITS STUDY.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) the sacrifices made by the members of the Armed Forces 
        are significant and are worthy of meaningful expressions of 
        gratitude by the United States, especially in cases of sacrifice 
        through loss of life;
            (2) the tragic events of September 11, 2001, and subsequent 
        worldwide combat operations in the Global War on Terrorism and 
        in Operation Iraqi Freedom have highlighted the significant 
        disparity between the financial benefits for survivors of 
        deceased members of the Armed Forces and the financial benefits 
        for survivors of civilian victims of terrorism;
            (3) the death benefits system composed of the death gratuity 
        paid by the Department of Defense to survivors of members of the 
        Armed Forces, the subsequently established Servicemembers' Group 
        Life Insurance (SGLI) program, and other benefits for survivors 
        of deceased members has evolved over time, but there are 
        increasing indications that the evolution of such benefits has 
        failed to keep pace with the expansion of indemnity and 
        compensation available to segments of United States society 
        outside the Armed Forces, a failure that is especially apparent 
        in a comparison of the benefits for survivors of deceased 
        members with the compensation provided to families of civilian 
        victims of terrorism; and
            (4) while the Servicemembers' Group Life Insurance (SGLI) 
        program provides an assured source of life insurance for members 
        of the Armed Forces that benefits the survivors of such members 
        upon death, that program requires servicemembers to pay for that 
        life insurance coverage and does not provide an assured minimum 
        benefit.

    (b) Study Required.--The Secretary of Defense shall carry out a 
study of the totality of all current and projected death benefits for 
survivors of deceased members of the Armed Forces to determine the 
adequacy of such benefits. In carrying out the study, the Secretary 
shall--
            (1) compare the Federal death benefits for survivors of 
        deceased members of the Armed Forces with--
                    (A) commercial and other private sector death 
                benefits plans for segments of United States society 
                outside the Armed Forces; and
                    (B) the benefits available under Public Law 107-37 
                (115 Stat. 219) (commonly known as the ``Public Safety 
                Officer Benefits Bill'');
            (2) assess the personnel policy effects that would result 
        from a revision of the death gratuity benefit to provide a 
        stratified schedule of entitlement amounts that places a premium 
        on deaths resulting from participation in combat or from acts of 
        terrorism;

[[Page 117 STAT. 1521]]

            (3) assess the adequacy of the current system of Survivor 
        Benefit Plan annuities under title 10, United States Code, and 
        dependency and indemnity compensation under title 38, United 
        States Code, and the anticipated effects (if any) of an 
        elimination of the offset of Survivor Benefit Plan annuities by 
        dependency and indemnity compensation payments;
            (4) examine the commercial insurability of members of the 
        Armed Forces in high-risk military occupational specialties; and
            (5) examine the extent to which private trusts and 
        foundations engage in fundraising or otherwise provide financial 
        benefits for survivors of deceased members of the Armed Forces.

    (c) Report.--Not <<NOTE: Deadline.>>  later than March 1, 2004, the 
Secretary shall submit to the Committees on Armed Services of the Senate 
and the House of Representatives a report on the results of the study 
under subsection (b). The report shall include the following:
            (1) The assessments, analyses, and conclusions resulting 
        from the study.
            (2) Proposed legislation to address the deficiencies in the 
        system of Federal death benefits for survivors of deceased 
        members of the Armed Forces that are identified in the course of 
        the study.
            (3) An estimate of the costs of the system of death benefits 
        provided for in the proposed legislation.

    (d) Comptroller General Study.--The Comptroller General shall 
conduct a study to identify the death benefits that are payable under 
Federal, State, and local laws for employees of the United States, State 
governments, and local governments. Not later than March 1, 2004, the 
Comptroller General shall submit a report containing the results of the 
study to the Committees on Armed Services of the Senate and the House of 
Representatives.

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

SEC. 651. EXPANDED COMMISSARY ACCESS FOR SELECTED RESERVE MEMBERS, 
            RESERVE RETIREES UNDER AGE 60, AND THEIR DEPENDENTS.

    (a) Access to Military Commissaries.--Section 1065 of title 10, 
United States Code, is amended--
            (1) in subsections (a), (b), and (c), by inserting 
        ``commissary stores and'' after ``use'' each place it appears; 
        and
            (2) in subsection (d)--
                    (A) by inserting ``commissary stores and'' after 
                ``use'' the first and third places it appears; and
                    (B) by inserting ``stores and'' after ``use'' the 
                second and fourth places it appears.

    (b) Conforming Amendments; Transfer of Section.--Chapter 54 of such 
title is amended--
            (1) by striking sections 1063 and 1064;
            (2) in section 1063a(c)(2), by striking ``section 1065(e)'' 
        and inserting ``section 1063(e)'';
            (3) by redesignating section 1063a, as amended by paragraph 
        (2), as section 1064;

[[Page 117 STAT. 1522]]

            (4) by transferring section 1065, <<NOTE: 10 USC 1063.>>  as 
        amended by subsection (a), so as to appear after section 1062; 
        and
            (5) by striking the heading of such section, as amended by 
        subsection (a) and transferred by paragraph (4), and inserting 
        the following new heading:

``Sec. 1063. Use of commissary stores and MWR retail facilities: members 
                        of reserve components and reserve retirees under 
                        age 60''.

    (c) Clerical Amendments.--The table of sections at the beginning of 
such chapter is amended by striking the items relating to sections 1063, 
1063a, 1064, and 1065 and inserting the following new items:

``1063. Use of commissary stores and MWR retail facilities: members of 
           reserve components and reserve retirees under age 60.
``1064. Use of commissary stores and MWR retail facilities: members of 
           National Guard serving in federally declared disaster or 
           national emergency.''.

SEC. 652. DEFENSE COMMISSARY SYSTEM AND EXCHANGE STORES SYSTEM.

    (a) Existence of Systems.--Chapter 147 of title 10, United States 
Code, is amended by inserting before section 2482 the following new 
section:

``Sec. 2481. Existence of defense commissary system and exchange stores 
                        system

    ``(a) In General.--The Secretary of Defense shall operate a defense 
commissary system and an exchange stores system in the manner provided 
by this chapter and other provisions of law.
    ``(b) Separate Systems.--(1) Except as provided in paragraph (2), 
the defense commissary system and the exchange stores system shall be 
operated as separate systems of the Department of Defense.
    ``(2) This subsection does not apply to the following:
            ``(A) Combined exchange and commissary stores operated under 
        the authority provided by section 2490a of this title.
            ``(B) NEXMART stores of the Navy Exchange Service Command 
        established before October 1, 2003.''.

    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting before the item relating to section 
2482 the following new item:

``2481. Existence of defense commissary system and exchange stores 
           system.''.

SEC. 653. LIMITATIONS ON PRIVATE OPERATION OF DEFENSE COMMISSARY STORE 
            FUNCTIONS.

    Section 2482(a) of title 10, United States Code, is amended--
            (1) by striking the first and second sentences and inserting 
        the following: ``(1) Under such regulations as the Secretary of 
        Defense may approve, private persons may operate selected 
        commissary store functions, except that such functions may not 
        include functions relating to the procurement of products to be 
        sold in a commissary store or functions relating to the overall 
        management of a commissary system or the management of a 
        commissary store.''; and
            (2) by adding at the end the following new paragraph:

    ``(2) Any change to private operation of a commissary store function 
that is being performed by more than 10 Department of Defense civilian 
employees shall not take effect until the end

[[Page 117 STAT. 1523]]

of the 75-day period beginning on the date on which the Secretary of 
Defense submits to Congress written notice of the change.''.

SEC. 654. USE OF APPROPRIATED FUNDS TO OPERATE DEFENSE COMMISSARY 
            SYSTEM.

    (a) Requirement That Commissary Operating Expenses Be Paid From 
Appropriated Funds.--Section 2484 of title 10, United States Code, is 
amended--
            (1) in subsection (a), by striking ``may'' and inserting 
        ``shall''; and
            (2) in subsection (b), by striking ``may'' in the first 
        sentence and inserting ``shall''.

    (b) Supplemental Funds for Commissary Operations.--Such section is 
further amended by adding at the end the following new subsection:
    ``(c) Supplemental Funds for Commissary Operations.--Amounts 
appropriated to cover the expenses of operating the Defense Commissary 
Agency and the defense commissary system may be supplemented with 
additional funds from manufacturers' coupon redemption fees, handling 
fees for tobacco products, and other amounts received as reimbursement 
for other support activities provided by commissary activities.''.

SEC. 655. RECOVERY OF NONAPPROPRIATED FUND INSTRUMENTALITY AND 
            COMMISSARY STORE INVESTMENTS IN REAL PROPERTY AT MILITARY 
            INSTALLATIONS CLOSED OR REALIGNED.

    (a) 1988 Law.--Section 204(b)(7)(C) of the Defense Authorization 
Amendments and Base Closure and Realignment Act (Public Law 100-526; 10 
U.S.C. 2687 note) is amended--
            (1) in the second sentence of clause (i), by striking ``The 
        Secretary may use amounts in the account (in such an aggregate 
        amount as is provided in advance in appropriation Acts)'' and 
        inserting ``Subject to the limitation in clause (iii), amounts 
        in the reserve account are hereby made available to the 
        Secretary, without appropriation and until expended,'';
            (2) by redesignating clause (iii) as clause (iv); and
            (3) by inserting after clause (ii) the following new clause 
        (iii):

    ``(iii) The aggregate amount obligated from the reserve account 
established under clause (i) may not exceed the following:
            ``(I) In fiscal year 2004, $31,000,000.
            ``(II) In fiscal year 2005, $24,000,000.
            ``(III) In fiscal year 2006, $15,000,000.''.

    (b) 1990 Law.--Section 2906(d)(3) of the Defense Base Closure and 
Realignment Act of 1990 (part A of title XXIX of Public Law 101-510; 10 
U.S.C. 2687 note) is amended by striking ``The Secretary may use amounts 
in the account (in such an aggregate amount as is provided in advance in 
appropriation Acts)'' and inserting ``Subject to the limitation 
contained in section 204(b)(7)(C)(iii) of the Defense Authorization 
Amendments and Base Closure and Realignment Act, amounts in the reserve 
account are hereby made available to the Secretary, without 
appropriation and until expended,''.

[[Page 117 STAT. 1524]]

                        Subtitle F--Other Matters

SEC. 661. COMPTROLLER GENERAL REPORT ON ADEQUACY OF SPECIAL PAYS AND 
            ALLOWANCES FOR FREQUENTLY DEPLOYED MEMBERS.

    Not <<NOTE: Deadline.>> later than April 1, 2004, the Comptroller 
General shall submit to Congress a report regarding the adequacy of 
special pays and allowances for members of the Armed Forces who are 
frequently deployed away from their permanent duty stations for periods 
of less than 30 days. The report shall include an assessment of the 
eligibility requirements for the family separation allowance under 
section 427 of title 37, United States Code, including those relating to 
required duration of absences from the permanent duty station.

                    TITLE VII--HEALTH CARE PROVISIONS

               Subtitle A--Enhanced Benefits for Reserves

Sec. 701. Medical and dental screening for Ready Reserve members alerted 
           for mobilization.
Sec. 702. Coverage for Ready Reserve members under TRICARE program.
Sec. 703. Earlier eligibility date for TRICARE benefits for members of 
           reserve components.
Sec. 704. Temporary extension of transitional health care benefits.
Sec. 705. Assessment of needs of Reserves for health care benefits.
Sec. 706. Limitation on fiscal year 2004 outlays for temporary Reserve 
           health care programs.
Sec. 707. TRICARE beneficiary counseling and assistance coordinators for 
           reserve component beneficiaries.
Sec. 708. Eligibility of Reserve officers for health care pending orders 
           to active duty following commissioning.

                 Subtitle B--Other Benefits Improvements

Sec. 711. Acceleration of implementation of chiropractic health care for 
           members on active duty.
Sec. 712. Reimbursement of covered beneficiaries for certain travel 
           expenses relating to specialized dental care.
Sec. 713. Eligibility for continued health benefits coverage extended to 
           certain members of uniformed services.
Sec. 714. Authority for designated providers to enroll covered 
           beneficiaries with other primary health insurance coverage.

            Subtitle C--Planning, Programming, and Management

Sec. 721. Permanent extension of authority to enter into personal 
           services contracts for the performance of health care 
           responsibilities at locations other than military medical 
           treatment facilities.
Sec. 722. Department of Defense Medicare-Eligible Retiree Health Care 
           Fund valuations and contributions.
Sec. 723. Surveys on continued viability of TRICARE Standard.
Sec. 724. Plan for providing health coverage information to members, 
           former members, and dependents eligible for certain health 
           benefits.
Sec. 725. Transfer of certain members of the Pharmacy and Therapeutics 
           Committee to the Uniform Formulary Beneficiary Advisory Panel 
           under the pharmacy benefits program.
Sec. 726.  Working group on military health care for persons reliant on 
           health care facilities at military installations to be closed 
           or realigned.
Sec. 727. Joint program for development and evaluation of integrated 
           healing care practices for members of the Armed Forces and 
           veterans.

[[Page 117 STAT. 1525]]

               Subtitle A--Enhanced Benefits for Reserves

SEC. 701. MEDICAL AND DENTAL SCREENING FOR READY RESERVE MEMBERS ALERTED 
            FOR MOBILIZATION.

    Subsection (f) of section 1074a of title 10, United States Code, as 
amended by section 1114 of the Emergency Supplemental Appropriations Act 
for Defense and for the Reconstruction of Iraq and Afghanistan, 2004, is 
amended to read as follows:
    ``(f)(1) <<NOTE: Notification.>> At any time after the Secretary 
concerned notifies members of the Ready Reserve that the members are to 
be called or ordered to active duty for a period of more than 30 days, 
the administering Secretaries may provide to each such member any 
medical and dental screening and care that is necessary to ensure that 
the member meets the applicable medical and dental standards for 
deployment.

    ``(2) The notification to members of the Ready Reserve described in 
paragraph (1) shall include notice that the members are eligible for 
screening and care under this section.
    ``(3) A member provided medical or dental screening or care under 
paragraph (1) may not be charged for the screening or care.''.

SEC. 702. COVERAGE FOR READY RESERVE MEMBERS UNDER TRICARE PROGRAM.

    Section 1076b of title 10, United States Code, as added by section 
1115 of the Emergency Supplemental Appropriations Act for Defense and 
for the Reconstruction of Iraq and Afghanistan, 2004, is amended to read 
as follows:

``Sec. 1076b. TRICARE program: coverage for members of the Ready Reserve

    ``(a) Eligibility.--Each member of the Selected Reserve of the Ready 
Reserve and each member of the Individual Ready Reserve described in 
section 10144(b) of this title is eligible, subject to subsection (h), 
to enroll in TRICARE and receive benefits under such enrollment for any 
period that the member--
            ``(1) is an eligible unemployment compensation recipient; or
            ``(2) is not eligible for health care benefits under an 
        employer-sponsored health benefits plan.

    ``(b) Types of Coverage.--(1) A member eligible under subsection (a) 
may enroll for either of the following types of coverage:
            ``(A) Self alone coverage.
            ``(B) Self and family coverage.

    ``(2) An enrollment by a member for self and family covers the 
member and the dependents of the member who are described in 
subparagraph (A), (D), or (I) of section 1072(2) of this title.
    ``(c) Open Enrollment Periods.--The Secretary of Defense shall 
provide for at least one open enrollment period each year. During an 
open enrollment period, a member eligible under subsection (a) may 
enroll in the TRICARE program or change or terminate an enrollment in 
the TRICARE program.
    ``(d) Scope of Care.--(1) A member and the dependents of a member 
enrolled in the TRICARE program under this section shall be entitled to 
the same benefits under this chapter as a

[[Page 117 STAT. 1526]]

member of the uniformed services on active duty or a dependent of such a 
member, respectively.
    ``(2) <<NOTE: Applicability.>> Section 1074(c) of this title shall 
apply with respect to a member enrolled in the TRICARE program under 
this section.

    ``(e) Premiums.--(1) The Secretary of Defense shall charge premiums 
for coverage pursuant to enrollments under this section. The Secretary 
shall prescribe for each of the TRICARE program options a premium for 
self alone coverage and a premium for self and family coverage.
    ``(2) The monthly amount of the premium in effect for a month for a 
type of coverage under this section shall be the amount equal to 28 
percent of the total amount determined by the Secretary on an 
appropriate actuarial basis as being reasonable for the coverage.
    ``(3) The premiums payable by a member under this subsection may be 
deducted and withheld from basic pay payable to the member under section 
204 of title 37 or from compensation payable to the member under section 
206 of such title. The Secretary shall prescribe the requirements and 
procedures applicable to the payment of premiums by members not entitled 
to such basic pay or compensation.
    ``(4) Amounts collected as premiums under this subsection shall be 
credited to the appropriation available for the Defense Health Program 
Account under section 1100 of this title, shall be merged with sums in 
such Account that are available for the fiscal year in which collected, 
and shall be available under subparagraph (B) of such section for such 
fiscal year.
    ``(f) Other Charges.--A person who receives health care pursuant to 
an enrollment in a TRICARE program option under this section, including 
a member who receives such health care, shall be subject to the same 
deductibles, copayments, and other nonpremium charges for health care as 
apply under this chapter for health care provided under the same TRICARE 
program option to dependents described in subparagraph (A), (D), or (I) 
of section 1072(2) of this title.
    ``(g) Termination of Enrollment.--(1) A member enrolled in the 
TRICARE program under this section may terminate the enrollment only 
during an open enrollment period provided under subsection (c), except 
as provided in subsection (h).
    ``(2) An enrollment of a member for self alone or for self and 
family under this section shall terminate on the first day of the first 
month beginning after the date on which the member ceases to be eligible 
under subsection (a).
    ``(3) The enrollment of a member under this section may be 
terminated on the basis of failure to pay the premium charged the member 
under this section.
    ``(h) Relationship to Transition TRICARE Coverage Upon Separation 
From Active Duty.--(1) A member may not enroll in the TRICARE program 
under this section while entitled to transitional health care under 
subsection (a) of section 1145 of this title or while authorized to 
receive health care under subsection (c) of such section.
    ``(2) A member who enrolls in the TRICARE program under this section 
within 90 days after the date of the termination of the member's 
entitlement or eligibility to receive health care under subsection (a) 
or (c) of section 1145 of this title may terminate

[[Page 117 STAT. 1527]]

the enrollment at any time within one year after the date of the 
enrollment.
    ``(i) Certification of Noncoverage by Other Health Benefits Plan.--
The Secretary of Defense may require a member to submit any 
certification that the Secretary considers appropriate to substantiate 
the member's assertion that the member is not covered for health care 
benefits under any other health benefits plan.
    ``(j) Eligible Unemployment Compensation Recipient Defined.--In this 
section, the term `eligible unemployment compensation recipient' means, 
with respect to any month, any individual who is determined eligible for 
any day of such month for unemployment compensation under State law (as 
defined in section 205(9) of the Federal-State Extended Unemployment 
Compensation Act of 1970), including Federal unemployment compensation 
laws administered through the State.
    ``(k) Regulations.--The Secretary of Defense, in consultation with 
the other administering Secretaries, shall prescribe regulations for the 
administration of this section.
    ``(l) Termination of Authority.--An enrollment in TRICARE under this 
section may not continue after December 31, 2004.''.

SEC. 703. EARLIER ELIGIBILITY DATE FOR TRICARE BENEFITS FOR MEMBERS OF 
            RESERVE COMPONENTS.

    Subsection (d) of section 1074 of title 10, United States Code, as 
added by section 1116 of the Emergency Supplemental Appropriations Act 
for Defense and for the Reconstruction of Iraq and Afghanistan, 2004, is 
amended to read as follows:
    ``(d)(1) For the purposes of this chapter, a member of a reserve 
component of the armed forces who is issued a delayed-effective-date 
active-duty order, or is covered by such an order, shall be treated as 
being on active duty for a period of more than 30 days beginning on the 
later of the date that is--
            ``(A) the date of the issuance of such order; or
            ``(B) 90 days before the date on which the period of active 
        duty is to commence under such order for that member.

    ``(2) In this subsection, the term `delayed-effective-date active-
duty order' means an order to active duty for a period of more than 30 
days in support of a contingency operation under a provision of law 
referred to in section 101(a)(13)(B) of this title that provides for 
active-duty service to begin under such order on a date after the date 
of the issuance of the order.
    ``(3) <<NOTE: Termination date.>> This subsection shall cease to be 
effective on December 31, 2004.''.

SEC. <<NOTE: 10 USC 1145 note.>> 704. TEMPORARY EXTENSION OF 
            TRANSITIONAL HEALTH CARE BENEFITS.

    (a) Extension.--Subject to subsection (b), and notwithstanding 
section 1117 of the Emergency Supplemental Appropriations Act for 
Defense and for the Reconstruction of Iraq and Afghanistan, 2004, during 
the period beginning on the date of the enactment of this Act and ending 
on December 31, 2004, section 1145(a) of title 10, United States Code, 
shall be administered by substituting for paragraph (3) the following:
            ``(3) Transitional health care for a member under subsection 
        (a) shall be available for 180 days beginning on the date on 
        which the member is separated from active duty.''.

[[Page 117 STAT. 1528]]

    (b) Effective Date.--(1) Subsection (a) shall apply with respect to 
separations from active duty that take effect on or after the date of 
the enactment of this Act.
    (2) Beginning on January 1, 2005, the period for which a member is 
provided transitional health care benefits under section 1145(a) of 
title 10, United States Code, shall be adjusted as necessary to comply 
with the limits provided under paragraph (3) of such section.

SEC. 705. ASSESSMENT OF NEEDS OF RESERVES FOR HEALTH CARE BENEFITS.

    (a) GAO Evaluation of Needs of Reserve Components for Health Care 
Benefits.--The Comptroller General shall evaluate the needs of members 
of the reserve components of the Armed Forces and their families for 
obtaining and maintaining coverage for health care benefits under health 
care benefits plans and programs.
    (b) Special Concern.--In conducting the evaluation under this 
section, the Comptroller General shall give special consideration to the 
implications of the increased use of the reserve components for carrying 
out and supporting operations of the Armed Forces that has been 
experienced since the 1980s and is anticipated to continue, particularly 
the increased frequency and magnitude of the mobilization of Reserves 
and the increased length of the periods of active duty of Reserves when 
mobilized.
    (c) Matters Covered.--The evaluation under this section shall 
include the following matters:
            (1) An examination of the extent to which Reserves and the 
        members of their families are covered by health care benefits 
        plans when the Reserves are not on active duty, including--
                    (A) the sources of the coverage;
                    (B) the scope of the benefits; and
            (C) the extent to which the Reserves and the members of 
        their families use the benefits available.
            (2) An identification of options for providing health care 
        benefits to Reserves and the members of their families not 
        covered by health care benefits plans without creating an 
        incentive for other Reserves to terminate coverage by such 
        plans.
            (3) A review of Department of Defense initiatives during 
        fiscal years 2003 and 2004 to address the problems of access of 
        mobilized Reserves and their families to health care and health 
        care benefits, including--
                    (A) a determination of the effectiveness of such 
                initiatives; and
                    (B) a determination of the extent to which the 
                problems continue.
            (4) An identification of options for continuing, after a 
        Reserve is mobilized, any coverage of the Reserve and the 
        Reserve's family that exists under a health benefits plan before 
        the Reserve is mobilized.
            (5) An assessment of the effects of--
                    (A) the provisions of this title that authorize or 
                require the Department of Defense to provide assistance 
                specifically to Reserves to facilitate the access to and 
                use of TRICARE benefits by Reserves or members of their 
                families; and
                    (B) the provisions of this title that provide 
                eligibility for health care under chapter 55 of title 
                10, United States

[[Page 117 STAT. 1529]]

                Code, for Reserves who are alerted by the Department of 
                Defense to prepare to be mobilized imminently.
            (6) An examination of the existing programs under which the 
        Department of Defense provides health care benefits to mobilized 
        Reserves during a transitional period immediately following the 
        release of the Reserves from the active duty for which 
        mobilized, including an assessment of the extent to which those 
        programs meet the needs of such Reserves for health care 
        benefits on a transitional basis.

    (d) Report.--Not <<NOTE: Deadline.>>  later than May 1, 2004, the 
Comptroller General shall submit to the Committees on Armed Services of 
the Senate and the House of Representatives a report on the results of 
the evaluation required by this subsection, including findings and 
recommendations.

    (e) Definitions.--In this section:
            (1) The term ``mobilized'' means called or ordered to active 
        duty for a period of more than 30 days (as defined in section 
        101(d)(2) of title 10, United States Code).
            (2) The term ``Reserves'' means members of the reserve 
        components of the Armed Forces.

SEC. 706. <<NOTE: 10 USC 1076b note.>> LIMITATION ON FISCAL YEAR 2004 
            OUTLAYS FOR TEMPORARY RESERVE HEALTH CARE PROGRAMS.

    (a) Outlay Limitation.--In the administration of the temporary 
Reserve health care programs, the Secretary of Defense shall carry out 
those program so as to limit the total Department of Defense 
expenditures under those programs during fiscal year 2004 to an amount 
not in excess $400,000,000.
    (b) Continuity of Care.--In the administration of the temporary 
Reserve health care programs, the Secretary of Defense shall carry out 
the implementation and termination of those programs so as to ensure the 
least amount of disruption to the continuity of care for persons 
provided care under those programs.
    (c) Temporary Reserve Health Care Programs.--For purposes of this 
section, the term ``temporary Reserve health care programs'' means the 
following:
            (1) The program under section 1076b of title 10, United 
        States Code, as amended by section 702.
            (2) The program under section 1074(d) of title 10, United 
        States Code, as amended by section 703.
            (3) The program under section 704.

SEC. 707. TRICARE BENEFICIARY COUNSELING AND ASSISTANCE COORDINATORS FOR 
            RESERVE COMPONENT BENEFICIARIES.

    Section 1095e(a)(1) of title 10, United States Code, is amended--
            (1) by striking ``and'' at the end of subparagraph (A);
            (2) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (3) by inserting after subparagraph (A) the following new 
        subparagraph (B):
                    ``(B) designate for each of the TRICARE program 
                regions at least one person (other than a person 
                designated under subparagraph (A)) to serve full-time as 
                a beneficiary counseling and assistance coordinator 
                solely for members of the reserve components and their 
                dependents who are beneficiaries under the TRICARE 
                program; and''.

[[Page 117 STAT. 1530]]

SEC. 708. ELIGIBILITY OF RESERVE OFFICERS FOR HEALTH CARE PENDING ORDERS 
            TO ACTIVE DUTY FOLLOWING COMMISSIONING.

    Section 1074(a) of title 10, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(a)'';
            (2) by striking ``who is on active duty'' and inserting 
        ``described in paragraph (2)''; and
            (3) by adding at the end the following new paragraph:

    ``(2) Members of the uniformed services referred to in paragraph (1) 
are as follows:
            ``(A) A member of a uniformed service on active duty.
            ``(B) A member of a reserve component of a uniformed service 
        who has been commissioned as an officer if--
                    ``(i) the member has requested orders to active duty 
                for the member's initial period of active duty following 
                the commissioning of the member as an officer;
                    ``(ii) the request for orders has been approved;
                    ``(iii) the orders are to be issued but have not 
                been issued; and
                    ``(iv) the member does not have health care 
                insurance and is not covered by any other health 
                benefits plan.''.

                 Subtitle B--Other Benefits Improvements

SEC. 711. <<NOTE: 10 USC 1092 note.>> ACCELERATION OF IMPLEMENTATION OF 
            CHIROPRACTIC HEALTH CARE FOR MEMBERS ON ACTIVE DUTY.

    The Secretary of Defense shall accelerate the implementation of the 
plan required by section 702 of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (Public Law 106-398; 114 Stat. 
1654A-173) (relating to chiropractic health care services and benefits), 
with a goal of completing implementation of the plan by October 1, 2005.

SEC. 712. REIMBURSEMENT OF COVERED BENEFICIARIES FOR CERTAIN TRAVEL 
            EXPENSES RELATING TO SPECIALIZED DENTAL CARE.

    Section 1074i of title 10, United States Code, is amended--
            (1) by inserting ``(a) In General.--'' before ``In any 
        case''; and
            (2) by adding at the end the following new subsection:

    ``(b) Definitions.--In this section:
            ``(1) The term `specialty care provider' includes a dental 
        specialist.
            ``(2) The term `dental specialist' means an oral surgeon, 
        orthodontist, prosthodontist, periodontist, endodontist, or 
        pediatric dentist, and includes such other providers of dental 
        care and services as determined appropriate by the Secretary of 
        Defense.''.

SEC. 713. ELIGIBILITY FOR CONTINUED HEALTH BENEFITS COVERAGE EXTENDED TO 
            CERTAIN MEMBERS OF UNIFORMED SERVICES.

    (a) Extension.--Section 1078a(b) of title 10, United States Code, is 
amended in paragraphs (1), (2)(A), and (3)(A) by striking ``armed 
forces'' and inserting ``uniformed services'' each place it appears.

[[Page 117 STAT. 1531]]

    (b) Effective Date.--The <<NOTE: Applicability. 10 USC 1078a 
note.>>  amendments made by subsection (a) shall apply to members of the 
uniformed services who are not otherwise covered by section 1078a of 
title 10, United States Code, before the date of the enactment of this 
Act and who, on or after such date, first meet the eligibility criteria 
specified in subsection (b) of that section.

SEC. 714. AUTHORITY FOR DESIGNATED PROVIDERS TO ENROLL COVERED 
            BENEFICIARIES WITH OTHER PRIMARY HEALTH INSURANCE COVERAGE.

    Subsection (d) of section 724 of the National Defense Authorization 
Act for Fiscal Year 1997 (Public Law 104-201; 10 U.S.C. 1073 note) is 
amended to read as follows:
    ``(d) Additional Enrollment Authority.--(1) Subject to paragraph 
(2), other covered beneficiaries may also receive health care services 
from a designated provider.
    ``(2)(A) The designated provider may market such services to, and 
enroll, covered beneficiaries who--
            ``(i) subject to the limitation in subparagraph (B), have 
        other primary health insurance coverage (other than Medicare 
        coverage) covering basic primary care and inpatient and 
        outpatient services; or
            ``(ii) are enrolled in the direct care system under the 
        TRICARE program, regardless of whether the covered beneficiaries 
        were users of the health care delivery system of the uniformed 
        services in prior years.

    ``(B) For each fiscal year beginning after September 30, 2003, the 
number of covered beneficiaries who are newly enrolled by a designated 
provider pursuant to subparagraph (A)(i) may not exceed 10 percent of 
the excess (if any) of--
            ``(i) the number of enrollees in managed care plans offered 
        by designated providers as of the first day of such fiscal year; 
        over
            ``(ii) the number of such enrollees as of the first day of 
        the immediately preceding fiscal year.

    ``(3) For purposes of this subsection, a covered beneficiary who has 
other primary health insurance coverage includes any covered beneficiary 
who has primary health insurance coverage--
            ``(A) on the date of enrollment with a designated provider 
        pursuant to paragraph (2)(A)(i); or
            ``(B) on such date of enrollment and during the period after 
        such date while the beneficiary is enrolled with the designated 
        provider.''.

            Subtitle C--Planning, Programming, and Management

SEC. 721. PERMANENT EXTENSION OF AUTHORITY TO ENTER INTO PERSONAL 
            SERVICES CONTRACTS FOR THE PERFORMANCE OF HEALTH CARE 
            RESPONSIBILITIES AT LOCATIONS OTHER THAN MILITARY MEDICAL 
            TREATMENT FACILITIES.

    Section 1091(a)(2) of title 10, United States Code, is amended by 
striking ``The Secretary may not enter into a contract under this 
paragraph after December 31, 2003.''.

[[Page 117 STAT. 1532]]

SEC. 722. DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE RETIREE HEALTH CARE 
            FUND VALUATIONS AND CONTRIBUTIONS.

    (a) Separate Periodic Actuarial Valuation for Single Uniformed 
Service.--Section 1115(c) of title 10, United States Code, is amended by 
adding at the end of paragraph (1) the following: ``The Secretary of 
Defense may determine a separate single level dollar amount under 
subparagraph (A) or (B) for any participating uniformed service, if, in 
the judgment of the Secretary, such a determination would produce a more 
accurate and appropriate actuarial valuation for that uniformed 
service.''.
    (b) Associated Calculations of Payments Into the Fund.--Section 1116 
of such title is amended--
            (1) in subsection (a), by striking ``the amount that'' in 
        the matter preceding paragraph (1) and inserting ``the amount 
        that, subject to subsection (b),'';
            (2) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively; and
            (3) by inserting after subsection (a) the following new 
        subsection (b):

    ``(b) If an actuarial valuation referred to in paragraph (1) or (2) 
of subsection (a) has been calculated as a separate single level dollar 
amount for a participating uniformed service under section 1115(c)(1) of 
this title, the administering Secretary for the department in which such 
uniformed service is operating shall calculate the amount under such 
paragraph separately for such uniformed service. If the administering 
Secretary is not the Secretary of Defense, the administering Secretary 
shall notify the Secretary of Defense of the amount so calculated. To 
determine a single amount for the purpose of paragraph (1) or (2) of 
subsection (a), as the case may be, the Secretary of Defense shall 
aggregate the amount calculated under this subsection for a uniformed 
service for the purpose of such paragraph with the amount or amounts 
calculated (whether separately or otherwise) for the other uniformed 
services for the purpose of such paragraph.''.
    (c) Conforming Amendment.--Subsections (a) and (c)(5) of section 
1115 of such title are amended by striking ``section 1116(b) of this 
title'' and inserting ``section 1116(c) of this title''.

SEC. 723. <<NOTE: 10 USC 1073 note.>> SURVEYS ON CONTINUED VIABILITY OF 
            TRICARE STANDARD.

    (a) Requirement for Surveys.--(1) The Secretary of Defense shall 
conduct surveys in the TRICARE market areas in the United States to 
determine how many health care providers are accepting new patients 
under TRICARE Standard in each such market area.
    (2) The Secretary shall carry out the surveys in at least 20 TRICARE 
market areas in the United States each fiscal year after fiscal year 
2003 until all such market areas in the United States have been 
surveyed. The Secretary shall complete <<NOTE: Deadline.>>  six of the 
fiscal year 2004 surveys not later than March 31, 2004.

    (3) In prioritizing the market areas for the sequence in which 
market areas are to be surveyed under this subsection, the Secretary 
shall consult with representatives of TRICARE beneficiaries and health 
care providers to identify locations where TRICARE Standard 
beneficiaries are experiencing significant levels of access-to-care 
problems under TRICARE Standard and shall give a high priority to 
surveying health care providers in such areas.
    (b) Supervision.--(1) The Secretary shall designate a senior 
official of the Department of Defense to take the actions necessary

[[Page 117 STAT. 1533]]

for achieving and maintaining participation of health care providers in 
TRICARE Standard in each TRICARE market area in a number that is 
adequate to ensure the viability of TRICARE Standard for TRICARE 
beneficiaries in that market area.
    (2) The official designated under paragraph (1) shall have the 
following duties:
            (A) To educate health care providers about TRICARE Standard.
            (B) To encourage health care providers to accept patients 
        under TRICARE Standard.
            (C) To ensure that TRICARE beneficiaries have the 
        information necessary to locate TRICARE Standard providers 
        readily.
            (D) To recommend adjustments in TRICARE Standard provider 
        payment rates that the official considers necessary to ensure 
        adequate availability of TRICARE Standard providers for TRICARE 
        Standard beneficiaries.

    (c) GAO Review.--(1) The Comptroller General shall, on an ongoing 
basis, review--
            (A) the processes, procedures, and analysis used by the 
        Department of Defense to determine the adequacy of the number of 
        health care providers--
                    (i) that currently accept TRICARE Standard 
                beneficiaries as patients under TRICARE Standard in each 
                TRICARE market area (as of the date of completion of the 
                review); and
                    (ii) that would accept TRICARE Standard 
                beneficiaries as new patients under TRICARE Standard in 
                each TRICARE market area (within a reasonable time after 
                the date of completion of the review); and
            (B) the actions taken by the Department of Defense to ensure 
        ready access of TRICARE Standard beneficiaries to health care 
        under TRICARE Standard in each TRICARE market area.

    (2)(A) <<NOTE: Reports.>> The Comptroller General shall submit to 
the Committees on Armed Services of the Senate and the House of 
Representatives a semiannual report on the results of the review under 
paragraph (1). The first semiannual report shall be submitted not later 
than June 30, 2004.

    (B) The semiannual report under subparagraph (A) shall include the 
following:
            (i) An analysis of the adequacy of the surveys under 
        subsection (a).
            (ii) The adequacy of existing statutory authority to address 
        inadequate levels of participation by health care providers in 
        TRICARE Standard.
            (iii) Identification of policy-based obstacles to achieving 
        adequacy of availability of TRICARE Standard health care in the 
        TRICARE market areas.
            (iv) An assessment of the adequacy of Department of Defense 
        education programs to inform health care providers about TRICARE 
        Standard.
            (v) An assessment of the adequacy of Department of Defense 
        initiatives to encourage health care providers to accept 
        patients under TRICARE Standard.

[[Page 117 STAT. 1534]]

            (vi) An assessment of the adequacy of information available 
        to TRICARE Standard beneficiaries to facilitate access by such 
        beneficiaries to health care under TRICARE Standard.
            (vii) Any need for adjustment of health care provider 
        payment rates to attract participation in TRICARE Standard by 
        appropriate numbers of health care providers.

    (d) Definitions.--In this section:
            (1) The term ``TRICARE Standard'' means the option of the 
        TRICARE program that is also known as the Civilian Health and 
        Medical Program of the Uniformed Services, as defined in section 
        1072(4) of title 10, United States Code.
            (2) The term ``United States'' means the United States (as 
        defined in section 101(a) of title 10, United States Code), its 
        possessions (as defined in such section), and the Commonwealth 
        of Puerto Rico.

SEC. 724. <<NOTE: 10 USC 1079 note.>> PLAN FOR PROVIDING HEALTH COVERAGE 
            INFORMATION TO MEMBERS, FORMER MEMBERS, AND DEPENDENTS 
            ELIGIBLE FOR CERTAIN HEALTH BENEFITS.

    (a) Health Information Plan Required.--The Secretary of Defense 
shall develop a plan to--
            (1) ensure that each household that includes one or more 
        eligible persons is provided information concerning--
                    (A) the extent of health coverage provided by 
                sections 1079 or 1086 of title 10, United States Code, 
                for each such person;
                    (B) the costs, including the limits on such costs, 
                that each such person is required to pay for such health 
                coverage;
                    (C) sources of information for locating TRICARE-
                authorized providers in the household's locality; and
                    (D) methods to obtain assistance in resolving 
                difficulties encountered with billing, payments, 
                eligibility, locating TRICARE-authorized providers, 
                collection actions, and such other issues as the 
                Secretary considers appropriate;
            (2) provide mechanisms to ensure that each eligible person 
        has access to information identifying TRICARE-authorized 
        providers in the person's locality who have agreed to accept new 
        patients under section 1079 or 1086 of title 10, United States 
        Code, and to ensure that such information is periodically 
        updated;
            (3) provide mechanisms to ensure that each eligible person 
        who requests assistance in locating a TRICARE-authorized 
        provider is provided such assistance;
            (4) provide information and recruitment materials and 
        programs aimed at attracting participation of health care 
        providers as necessary to meet health care access requirements 
        for all eligible persons; and
            (5) provide mechanisms to allow for the periodic 
        identification by the Department of Defense of the number and 
        locality of eligible persons who may intend to rely on TRICARE-
        authorized providers for health care services.

    (b) Implementation of Plan.--The Secretary of Defense shall 
implement the plan required by subsection (a) with respect to any 
contract entered into by the Department of Defense after May 31, 2003, 
for managed health care.
    (c) Definitions.--In this section:

[[Page 117 STAT. 1535]]

            (1) The term ``eligible person'' means a person eligible for 
        health benefits under section 1079 or 1086 of title 10, United 
        States Code.
            (2) The term ``TRICARE-authorized provider'' means a 
        facility, doctor, or other provider of health care services--
                    (A) that meets the licensing and credentialing 
                certification requirements in the State where the 
                services are rendered;
                    (B) that meets requirements under regulations 
                relating to TRICARE for the type of health care services 
                rendered; and
                    (C) that has accepted reimbursement by the Secretary 
                of Defense as payment for services rendered during the 
                12-month period preceding the date of the most recently 
                updated provider information provided to households 
                under the plan required by subsection (a).

    (d) <<NOTE: Deadline.>> Submission of Plan.--Not later than March 
31, 2004, the Secretary shall submit to the Committees on Armed Services 
of the Senate and House of Representatives the plan required by 
subsection (a), together with a schedule for implementation of the plan.

SEC. 725. TRANSFER OF CERTAIN MEMBERS OF THE PHARMACY AND THERAPEUTICS 
            COMMITTEE TO THE UNIFORM FORMULARY BENEFICIARY ADVISORY 
            PANEL UNDER THE PHARMACY BENEFITS PROGRAM.

    Section 1074g of title 10, United States Code, is amended--
            (1) in subsection (b)(1) in the second sentence, by striking 
        ``facilities,'' and all that follows through the end of the 
        sentence and inserting ``facilities and representatives of 
        providers in facilities of the uniformed services.''; and
            (2) in subsection (c)(2)--
                    (A) by striking ``represent nongovernmental'' and 
                inserting the following: ``represent--
            ``(A) nongovernmental'';
                    (B) by striking the period at the end and inserting 
                a semicolon; and
                    (C) by adding at the end the following new 
                subparagraphs:
            ``(B) contractors responsible for the TRICARE retail 
        pharmacy program;
            ``(C) contractors responsible for the national mail-order 
        pharmacy program; and
            ``(D) TRICARE network providers.''.

SEC. 726. WORKING GROUP ON MILITARY HEALTH CARE FOR PERSONS RELIANT ON 
            HEALTH CARE FACILITIES AT MILITARY INSTALLATIONS TO BE 
            CLOSED OR REALIGNED.

    (a) In General.--Section 722 of the National Defense Authorization 
Act for Fiscal Year 1993 (Public Law 102-484; 10 U.S.C. 1073 note) is 
amended by striking subsections (a), (b), (c), and (d) and inserting the 
following new subsections:
    ``(a) Establishment.--Not <<NOTE: Deadline.>>  later than December 
31, 2003, the Secretary of Defense shall establish a working group on 
the provision of military health care to persons who rely for health 
care on health care facilities located at military installations--
            ``(1) inside the United States that are selected for closure 
        or realignment in the 2005 round of realignments and closures

[[Page 117 STAT. 1536]]

        authorized by sections 2912, 2913, and 2914 of the Defense Base 
        Closure and Realignment Act of 1990 (part A of title XXIX of 
        Public Law 101-510; 10 U.S.C. 2687 note), as added by title XXX 
        of the National Defense Authorization Act for Fiscal Year 2002 
        (Public Law 107-107; 155 Stat. 1342); or
            ``(2) outside the United States that are selected for 
        closure or realignment as a result of force posture changes.

    ``(b) Membership.--The members of the working group shall include, 
at a minimum, the following:
            ``(1) The Assistant Secretary of Defense for Health Affairs, 
        or a designee of the Assistant Secretary.
            ``(2) The Surgeon General of the Army, or a designee of that 
        Surgeon General.
            ``(3) The Surgeon General of the Navy, or a designee of that 
        Surgeon General.
            ``(4) The Surgeon General of the Air Force, or a designee of 
        that Surgeon General.
            ``(5) At least one independent member (appointed by the 
        Secretary of Defense) from each TRICARE region, but not to 
        exceed a total of 12 members appointed under this paragraph, 
        whose experience in matters within the responsibility of the 
        working group qualify that person to represent persons 
        authorized health care under chapter 55 of title 10, United 
        States Code.

    ``(c) Duties.--(1) In developing the recommendations for the 2005 
round of realignments and closures required by sections 2913 and 2914 of 
the Defense Base Closure and Realignment Act of 1990, the Secretary of 
Defense shall consult with the working group.
    ``(2) The working group shall be available to provide assistance to 
the Defense Base Closure and Realignment Commission.
    ``(3) In the case of each military installation referred to in 
paragraph (1) or (2) of subsection (a) whose closure or realignment will 
affect the accessibility to health care services for persons entitled to 
such services under chapter 55 of title 10, United States Code, the 
working group shall provide to the Secretary of Defense a plan for the 
provision of the health care services to such persons.
    ``(d) Special Considerations.--In carrying out its duties under 
subsection (c), the working group--
            ``(1) shall conduct meetings with persons entitled to health 
        care services under chapter 55 of title 10, United States Code, 
        or representatives of such persons;
            ``(2) may use reliable sampling techniques;
            ``(3) may visit the areas where closures or realignments of 
        military installations will adversely affect the accessibility 
        of health care for such persons and may conduct public meetings; 
        and
            ``(4) shall ensure that members of the uniformed services on 
        active duty, members and former members of the uniformed 
        services entitled to retired or retainer pay, and dependents and 
        survivors of such members and retired personnel are afforded the 
        opportunity to express their views.''.

    (b) Termination.--Section 722 of such Act is further amended by 
adding at the end the following new subsection:
    ``(f) Termination.--The working group established pursuant to 
subsection (a) shall terminate on December 31, 2006.''.

[[Page 117 STAT. 1537]]

    (c) Conforming Amendment.--Subsection (e) of such section is amended 
by striking ``joint services''.

SEC. 727. <<NOTE: 38 USC 320 note.>> JOINT PROGRAM FOR DEVELOPMENT AND 
            EVALUATION OF INTEGRATED HEALING CARE PRACTICES FOR MEMBERS 
            OF THE ARMED FORCES AND VETERANS.

    (a) Program.--The Secretary of Defense and the Secretary of Veterans 
Affairs may conduct a program to develop and evaluate integrated healing 
care practices for members of the Armed Forces and veterans. Any such 
program shall be carried out through the Department of Veterans Affairs-
Department of Defense Joint Executive Committee established under 
section 320 of title 38, United States Code.
    (b) Source of DOD Funds.--Amounts authorized to be appropriated by 
this Act for the Defense Health Program may be used for the program 
under subsection (a).

   TITLE VIII--AQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                 MATTERS

              Subtitle A--Acquisition Policy and Management

Sec. 801. Consolidation of contract requirements.
Sec. 802. Quality control in procurement of aviation critical safety 
           items and related services.
Sec. 803. Federal support for enhancement of State and local anti-
           terrorism response capabilities.
Sec. 804. Special temporary contract closeout authority.
Sec. 805. Competitive award of contracts for reconstruction activities 
           in Iraq.

      Subtitle B--United States Defense Industrial Base Provisions

     Part I--Essential Items Identification and Domestic Production 
                    Capabilities Improvement Program

Sec. 811. Consistency with United States obligations under international 
           agreements.
Sec. 812. Assessment of United States defense industrial base 
           capabilities.
Sec. 813. Identification of essential items: military system breakout 
           list.
Sec. 814. Production capabilities improvement for certain essential 
           items using defense industrial base capabilities fund.

            Part II--Requirements Relating to Specific Items

Sec. 821. Elimination of unreliable sources of defense items and 
           components.
Sec. 822. Incentive program for major defense acquisition programs to 
           use machine tools and other capital assets produced within 
           the United States.
Sec. 823. Technical assistance relating to machine tools.
Sec. 824. Study of beryllium industrial base.

              Part III--Other Domestic Source Requirements

Sec. 826. Exceptions to Berry amendment for contingency operations and 
           other urgent situations.
Sec. 827. Inapplicability of Berry amendment to procurements of waste 
           and byproducts of cotton and wool fiber for use in the 
           production of propellants and explosives.
Sec. 828. Buy American exception for ball bearings and roller bearings 
           used in foreign products.

    Subtitle C--Defense Acquisition and Support Workforce Flexibility

Sec. 831. Management structure.
Sec. 832. Elimination of role of Office of Personnel Management.
Sec. 833. Single acquisition corps.
Sec. 834. Consolidation of certain education and training program 
           requirements.
Sec. 835. General management provisions.

[[Page 117 STAT. 1538]]

Sec. 836. Clerical amendments.

 Subtitle D--Amendments to General Contracting Authorities, Procedures, 
                             and Limitations

Sec. 841. Additional authority to enter into personal services 
           contracts.
Sec. 842. Elimination of certain subcontract notification requirements.
Sec. 843. Multiyear task and delivery order contracts.
Sec. 844. Elimination of requirement to furnish written assurances of 
           technical data conformity.
Sec. 845. Access to information relevant to items deployed under rapid 
           acquisition and deployment procedures.
Sec. 846. Applicability of requirement for reports on maturity of 
           technology at initiation of major defense acquisition 
           programs.
Sec. 847. Certain weapons-related prototype projects.
Sec. 848. Limited acquisition authority for commander of United States 
           Joint Forces Command.

        Subtitle E--Acquisition-Related Reports and Other Matters

Sec. 851. Report on contract payments to small businesses.
Sec. 852. Contracting with employers of persons with disabilities.
Sec. 853. Demonstration project for contractors employing persons with 
           disabilities.

              Subtitle A--Acquisition Policy and Management

SEC. 801. CONSOLIDATION OF CONTRACT REQUIREMENTS.

    (a) Amendment to Title 10.--(1) Chapter 141 of title 10, United 
States Code, is amended by inserting after section 2381 the following 
new section:

``Sec. 2382. Consolidation of contract requirements: policy and 
                        restrictions

    ``(a) Policy.--The Secretary of Defense shall require the Secretary 
of each military department, the head of each Defense Agency, and the 
head of each Department of Defense Field Activity to ensure that the 
decisions made by that official regarding consolidation of contract 
requirements of the department, agency, or field activity, as the case 
may be, are made with a view to providing small business concerns with 
appropriate opportunities to participate in Department of Defense 
procurements as prime contractors and appropriate opportunities to 
participate in such procurements as subcontractors.
    ``(b) Limitation on Use of Acquisition Strategies Involving 
Consolidation.--(1) An official of a military department, Defense 
Agency, or Department of Defense Field Activity may not execute an 
acquisition strategy that includes a consolidation of contract 
requirements of the military department, agency, or activity with a 
total value in excess of $5,000,000, unless the senior procurement 
executive concerned first--
            ``(A) conducts market research;
            ``(B) identifies any alternative contracting approaches that 
        would involve a lesser degree of consolidation of contract 
        requirements; and
            ``(C) determines that the consolidation is necessary and 
        justified.

    ``(2) A senior procurement executive may determine that an 
acquisition strategy involving a consolidation of contract requirements 
is necessary and justified for the purposes of paragraph (1) if the 
benefits of the acquisition strategy substantially exceed

[[Page 117 STAT. 1539]]

the benefits of each of the possible alternative contracting approaches 
identified under subparagraph (B) of that paragraph. However, savings in 
administrative or personnel costs alone do not constitute, for such 
purposes, a sufficient justification for a consolidation of contract 
requirements in a procurement unless the total amount of the cost 
savings is expected to be substantial in relation to the total cost of 
the procurement.
    ``(3) Benefits considered for the purposes of paragraphs (1) and (2) 
may include cost and, regardless of whether quantifiable in dollar 
amounts--
            ``(A) quality;
            ``(B) acquisition cycle;
            ``(C) terms and conditions; and
            ``(D) any other benefit.

    ``(c) Definitions.--In this section:
            ``(1) The terms `consolidation of contract requirements' and 
        `consolidation', with respect to contract requirements of a 
        military department, Defense Agency, or Department of Defense 
        Field Activity, mean a use of a solicitation to obtain offers 
        for a single contract or a multiple award contract to satisfy 
        two or more requirements of that department, agency, or activity 
        for goods or services that have previously been provided to, or 
        performed for, that department, agency, or activity under two or 
        more separate contracts smaller in cost than the total cost of 
        the contract for which the offers are solicited.
            ``(2) The term `multiple award contract' means--
                    ``(A) a contract that is entered into by the 
                Administrator of General Services under the multiple 
                award schedule program referred to in section 2302(2)(C) 
                of this title;
                    ``(B) a multiple award task order contract or 
                delivery order contract that is entered into under the 
                authority of sections 2304a through 2304d of this title 
                or sections 303H through 303K of the Federal Property 
                and Administrative Services Act of 1949 (41 U.S.C. 253h 
                through 253k); and
                    ``(C) any other indeterminate delivery, 
                indeterminate quantity contract that is entered into by 
                the head of a Federal agency with two or more sources 
                pursuant to the same solicitation.
            ``(3) The term `senior procurement executive concerned' 
        means--
                    ``(A) with respect to a military department, the 
                official designated under section 16(3) of the Office of 
                Federal Procurement Policy Act (41 U.S.C. 414(3)) as the 
                senior procurement executive for the military 
                department; or
                    ``(B) with respect to a Defense Agency or a 
                Department of Defense Field Activity, the official so 
                designated for the Department of Defense.
            ``(4) The term `small business concern' means a business 
        concern that is determined by the Administrator of the Small 
        Business Administration to be a small-business concern by 
        application of the standards prescribed under section 3(a) of 
        the Small Business Act (15 U.S.C. 632(a)).''.

[[Page 117 STAT. 1540]]

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2381 the 
following new item:

``2382. Consolidation of contract requirements: policy and 
           restrictions.''.

    (b) <<NOTE: 10 USC 2382 note.>> Data Review.--(1) The Secretary of 
Defense shall revise the data collection systems of the Department of 
Defense to ensure that such systems are capable of identifying each 
procurement that involves a consolidation of contract requirements 
within the department with a total value in excess of $5,000,000.

    (2) The Secretary shall ensure that appropriate officials of the 
Department of Defense periodically review the information collected 
pursuant to paragraph (1) in cooperation with the Small Business 
Administration--
            (A) to determine the extent of the consolidation of contract 
        requirements in the Department of Defense; and
            (B) to assess the impact of the consolidation of contract 
        requirements on the availability of opportunities for small 
        business concerns to participate in Department of Defense 
        procurements, both as prime contractors and as subcontractors.

    (3) In this subsection:
            (A) The term ``consolidation of contract requirements'' has 
        the meaning given that term in section 2382(c)(1) of title 10, 
        United States Code, as added by subsection (a).
            (B) The term ``small business concern'' means a business 
        concern that is determined by the Administrator of the Small 
        Business Administration to be a small-business concern by 
        application of the standards prescribed under section 3(a) of 
        the Small Business Act (15 U.S.C. 632(a)).

    (c) <<NOTE: 10 USC 2382 note.>> Applicability.--This section applies 
with respect to procurements for which solicitations are issued after 
the date occurring 180 days after the date of the enactment of this Act.

SEC. 802. <<NOTE: 10 USC 2382 note.>> QUALITY CONTROL IN PROCUREMENT OF 
            AVIATION CRITICAL SAFETY ITEMS AND RELATED SERVICES.

    (a) Quality Control Policy.--The Secretary of Defense shall 
prescribe in regulations a quality control policy for the procurement of 
aviation critical safety items and the procurement of modifications, 
repair, and overhaul of such items.
    (b) Content of Regulations.--The policy set forth in the regulations 
shall include the following requirements:
            (1) That the head of the design control activity for 
        aviation critical safety items establish processes to identify 
        and manage the procurement, modification, repair, and overhaul 
        of aviation critical safety items.
            (2) That the head of the contracting activity for an 
        aviation critical safety item enter into a contract for the 
        procurement, modification, repair, or overhaul of such item only 
        with a source approved by the design control activity in 
        accordance with section 2319 of title 10, United States Code.
            (3) That the aviation critical safety items delivered, and 
        the services performed with respect to aviation critical safety 
        items, meet all technical and quality requirements specified by 
        the design control activity.

    (c) Definitions.--In this section, the terms ``aviation critical 
safety item'' and ``design control activity'' have the meanings given

[[Page 117 STAT. 1541]]

such terms in section 2319(g) of title 10, United States Code, as 
amended by subsection (d).
    (d) Conforming Amendment to Title 10.--Section 2319 of title 10, 
United States Code, is amended--
            (1) in subsection (c)(3), by inserting after ``the 
        contracting officer'' the following: ``(or, in the case of a 
        contract for the procurement of an aviation critical safety 
        item, the head of the design control activity for such item)''; 
        and
            (2) by adding at the end the following new subsection:

    ``(g) Definitions.--In this section:
            ``(1) The term `aviation critical safety item' means a part, 
        an assembly, installation equipment, launch equipment, recovery 
        equipment, or support equipment for an aircraft or aviation 
        weapon system if the part, assembly, or equipment contains a 
        characteristic any failure, malfunction, or absence of which 
        could cause a catastrophic or critical failure resulting in the 
        loss of or serious damage to the aircraft or weapon system, an 
        unacceptable risk of personal injury or loss of life, or an 
        uncommanded engine shutdown that jeopardizes safety.
            ``(2) The term `design control activity', with respect to an 
        aviation critical safety item, means the systems command of a 
        military department that is specifically responsible for 
        ensuring the airworthiness of an aviation system or equipment in 
        which the item is to be used.''.

SEC. 803. <<NOTE: 40 USC 405 note.>> FEDERAL SUPPORT FOR ENHANCEMENT OF 
            STATE AND LOCAL ANTI-TERRORISM RESPONSE CAPABILITIES.

    (a) Procurements of Anti-Terrorism Technologies and Services by 
State and Local Governments.--The Administrator for Federal Procurement 
Policy shall establish a program under which States and units of local 
government may procure through contracts entered into by the Department 
of Defense or the Department of Homeland Security anti-terrorism 
technologies or anti-terrorism services for the purpose of preventing, 
detecting, identifying, deterring, or recovering from acts of terrorism.
    (b) Authorities.--Under the program, the Secretary of Defense and 
the Secretary of Homeland Security may, but shall not be required to, 
award contracts using the procedures established by the Administrator of 
General Services for the multiple awards schedule program of the General 
Services Administration.
    (c) Definition.--In this section, the term ``State or local 
government'' has the meaning provided in section 502(c)(3) of title 40, 
United States Code.

SEC. 804. SPECIAL TEMPORARY CONTRACT CLOSEOUT AUTHORITY.

    (a) Authority.--The Secretary of Defense may settle any financial 
account for a contract entered into by the Secretary or the Secretary of 
a military department before October 1, 1996, that is administratively 
complete if the financial account has an unreconciled balance, either 
positive or negative, that is less than $100,000.
    (b) Finality of Decision.--A settlement under this section shall be 
final and conclusive upon the accounting officers of the United States.
    (c) Regulations.--The Secretary of Defense shall prescribe 
regulations for the administration of the authority under this section.

[[Page 117 STAT. 1542]]

    (d) Termination of Authority.--A financial account may not be 
settled under this section after September 30, 2006.

SEC. 805. <<NOTE: 10 USC 2302 note.>> COMPETITIVE AWARD OF CONTRACTS FOR 
            RECONSTRUCTION ACTIVITIES IN IRAQ.

    (a) Competitive Award of Contracts.--The Department of Defense shall 
fully comply with chapter 137 of title 10, United States Code, and other 
applicable procurement laws and regulations for any contract awarded for 
reconstruction activities in Iraq, and shall conduct a full and open 
competition for performing work needed for the reconstruction of the 
Iraqi oil industry.
    (b) Report.--If <<NOTE: Deadline.>> the Department of Defense does 
not have a fully competitive contract in place to replace the March 8, 
2003, contract for the reconstruction of the Iraqi oil industry on the 
date of the enactment of this Act, the Secretary of Defense shall submit 
to Congress, not later than 30 days after such date of enactment, a 
report detailing the reasons for allowing the March 8, 2003, contract to 
continue.

      Subtitle B--United States Defense Industrial Base Provisions

Part I--Essential <<NOTE: 10 USC 2501 note.>>  Items Identification and 
Domestic Production Capabilities Improvement Program

SEC. 811. CONSISTENCY WITH UNITED STATES OBLIGATIONS UNDER INTERNATIONAL 
            AGREEMENTS.

    No provision of this subtitle or any amendment made by this subtitle 
shall apply to the extent the Secretary of Defense, in consultation with 
the Secretary of Commerce, the United States Trade Representative, and 
the Secretary of State, determines that it is inconsistent with United 
States obligations under an international agreement.

SEC. 812. ASSESSMENT OF UNITED STATES DEFENSE INDUSTRIAL BASE 
            CAPABILITIES.

    (a) Assessment Program.--(1) The Secretary of Defense shall 
establish a program to assess--
            (A) the degree to which the United States is dependent on 
        foreign sources of supply; and
            (B) the capabilities of the United States defense industrial 
        base to produce military systems necessary to support the 
        national security objectives set forth in section 2501 of title 
        10, United States Code.

    (2) For purposes of the assessment program, the Secretary shall use 
existing data, as required under subsection (b), and submit an annual 
report, as required under subsection (c).

    (b) Use of Existing Data.--(1) At a minimum, with respect to each 
prime contract with a value greater than $25,000 for the procurement of 
defense items and components, the following information from existing 
sources shall be used for purposes of the assessment program:
            (A) Whether the contractor is a United States or foreign 
        contractor.

[[Page 117 STAT. 1543]]

            (B) The principal place of business of the contractor and 
        the principal place of performance of the contract.
            (C) Whether the contract was awarded on a sole source basis 
        or after receipt of competitive offers.
            (D) The dollar value of the contract.

    (2) The Federal Procurement Data System described in section 
6(d)(4)(A) of the Office of Federal Procurement Policy Act (41 U.S.C. 
405(d)(4)(A)), or any successor system, shall collect from contracts 
described in paragraph (1) the information specified in that paragraph.
    (3) Information obtained in the implementation of this section is 
subject to the same limitations on disclosure, and penalties for 
violation of such limitations, as is provided under section 2507 of 
title 10, United States Code. Such information also shall be exempt from 
release under section 552 of title 5, United States Code.
    (4) For purposes of meeting the requirements set forth in this 
section, the Secretary of Defense may not require the provision of 
information beyond the information that is currently provided to the 
Department of Defense through existing data collection systems by non-
Federal entities with respect to contracts and subcontracts with the 
Department of Defense or any military department.
    (c) Annual Report.--(1) Not <<NOTE: Deadline.>>  later than February 
1 of each year, the Secretary of Defense shall submit to the Committees 
on Armed Services of the Senate and the House of Representatives a 
report on the assessment program covering the preceding fiscal year. The 
first report under this subsection shall cover fiscal year 2004 and 
shall be submitted to the Committees no later than February 1, 2005.

    (2)(A) The report shall include the following with respect to 
contracts described in subsection (b):
            (i) The total number and value of such contracts awarded by 
        the Department of Defense.
            (ii) The total number and value of such contracts awarded on 
        a sole source basis.
            (iii) The total number and value of contracts described in 
        clause (ii) awarded to foreign contractors, summarized by 
        country.
            (iv) The total number and value of contracts awarded to 
        foreign contractors through competitive procedures, summarized 
        by country.

    (B) The report also shall include--
            (i) the status of the matters described in subparagraphs (A) 
        and (B) of subsection (a)(1);
            (ii) the status of implementation of successor procurement 
        data management systems; and
            (iii) such other matters as the Secretary considers 
        appropriate.

SEC. 813. IDENTIFICATION OF ESSENTIAL ITEMS: MILITARY SYSTEM BREAKOUT 
            LIST.

    (a) Identification Process.--(1) The Secretary of Defense shall 
establish a process, using the Defense Logistics Information System 
existing database, to identify, with respect to each military system--

[[Page 117 STAT. 1544]]

            (A) the essential items, assemblies, and components of the 
        system that are active items, assemblies, and components;
            (B) foreign and domestic sources of supply for active items, 
        assemblies, and components of the system;
            (C) the active items, assemblies, and components of the 
        system that are commercial; and
            (D) Federal Supply Class and North American Industry 
        Classification System Codes for active items, assemblies, and 
        components of the system.

    (2) Any modification to the logistics management system or any 
successor system of the Department of Defense shall maintain the 
capability to identify--
            (A) essential items, assemblies, and components described in 
        paragraph (1)(A);
            (B) foreign and domestic sources of supply for active items, 
        assemblies, and components;
            (C) the active items, assemblies, and components of the 
        system that are commercial; and
            (D) Federal Supply Class and North American Industry 
        Classification System Codes for active items, assemblies, and 
        components.

    (3) For purposes of meeting the requirements set forth in this 
section, the Secretary of Defense may not require the provision of 
information beyond the information that is currently provided to the 
Department of Defense through existing data collection systems by non-
Federal entities with respect to contracts and subcontracts with the 
Department of Defense or any military department.
    (b) Military System Essential Item Breakout List.--The Secretary of 
Defense shall produce a list, to be known as the ``military system 
essential item breakout list'', consisting of the items, assemblies, and 
components identified under subsection (a)(1)(A). In producing the list, 
the Secretary of Defense shall consider the results of the report under 
subsection (c).
    (c) Assessment.--Not <<NOTE: Deadline.>>  later than 18 months after 
the date of the enactment of this Act, the Secretary of Defense, acting 
through a federally funded research and development center, shall 
prepare a report that--
            (1) assesses the criteria that should be used for 
        identifying whether an item, assembly, or component is essential 
        to a military system; and
            (2) recommends which items, assemblies, and components 
        should be included on the military system essential item 
        breakout list under subsection (b).

    (d) Report.--(1) Not <<NOTE: Deadline.>>  later than November 1 of 
each year, beginning with November 1, 2005, the Secretary of Defense 
shall submit to the Committees on Armed Services of the Senate and the 
House of Representatives a report on the implementation of this section. 
The report may be submitted in classified and unclassified form.

    (2) The report shall include the following:
            (A) A list of each military system covered by the process 
        established under subsection (a).
            (B) A list of the items, assemblies, and components on the 
        military system essential item breakout list that are 
        manufactured or produced outside the United States, setting 
        forth military and commercial separately.

[[Page 117 STAT. 1545]]

            (C) The portion of the entire military system essential item 
        breakout list that consists of the items, assemblies, and 
        components listed under subparagraph (B) (stated as a 
        percentage).
            (D) A list of each Federal Supply Class and North American 
        Industry Classification System Code represented on the military 
        system essential item breakout list, and the portion of the 
        entire military system essential item breakout list that 
        consists of items, assemblies, or components in such classes or 
        codes (stated as a percentage).
            (E) A list of each country outside the United States where 
        the items, assemblies, and components listed under subparagraph 
        (B) are manufactured or produced, and the portion of the entire 
        military system essential item breakout list that consists of--
                    (i) the items, assemblies, or components 
                manufactured or produced in that country, setting forth 
                military and commercial separately (stated as a 
                percentage); and
                    (ii) the Federal Supply Classes and North American 
                Industry Classification System Codes represented by 
                those items, assemblies, or components (stated as a 
                percentage).

    (3) <<NOTE: Reports. Deadline.>> The Secretary shall submit an 
interim version of the report required by this subsection not later than 
February 1, 2005, containing as much information as is practicable to be 
included by such date.

SEC. 814. PRODUCTION CAPABILITIES IMPROVEMENT FOR CERTAIN ESSENTIAL 
            ITEMS USING DEFENSE INDUSTRIAL BASE CAPABILITIES FUND.

    (a) Establishment of Fund.--There is established in the Treasury of 
the United States a separate fund to be known as the Defense Industrial 
Base Capabilities Fund (hereafter in this section referred to as the 
``Fund'').
    (b) Moneys in Fund.--There shall be credited to the Fund amounts 
appropriated to it.
    (c) Use of Fund.--The Secretary of Defense is authorized to use all 
amounts in the Fund, subject to appropriation, for the purposes of 
enhancing or reconstituting United States industrial capability to 
produce items on the military system essential item breakout list (as 
described in section 812(b)) or items subject to section 2534 of title 
10, United States Code, in the quantity and of the quality necessary to 
achieve national security objectives.
    (d) Limitation on Use of Fund.--Before the obligation of any amounts 
in the Fund, the Secretary of Defense shall submit to Congress a report 
describing the Secretary's plans for implementing the Fund established 
in subsection (a), including the priorities for the obligation of 
amounts in the Fund, the criteria for determining the recipients of such 
amounts, and the mechanisms through which such amounts may be provided 
to the recipients.
    (e) Availability of Funds.--Amounts in the Fund shall remain 
available until expended.
    (f) Fund Manager.--The Secretary of Defense shall designate a Fund 
manager. The duties of the Fund manager shall include--
            (1) ensuring the visibility and accountability of 
        transactions engaged in through the Fund; and
            (2) reporting to Congress each year regarding activities of 
        the Fund during the previous fiscal year.

[[Page 117 STAT. 1546]]

            Part II--Requirements Relating to Specific Items

SEC. 821. <<NOTE: 10 USC 2534 note.>> ELIMINATION OF UNRELIABLE SOURCES 
            OF DEFENSE ITEMS AND COMPONENTS.

    (a) Identification of Certain Countries.--The Secretary of Defense, 
in coordination with the Secretary of State, shall identify and list 
foreign countries that restrict the provision or sale of military goods 
or services to the United States because of United States 
counterterrorism or military operations after the date of the enactment 
of this Act. The Secretary shall review and update the list as 
appropriate. The Secretary may remove a country from the list, if the 
Secretary determines that doing so would be in the interest of national 
defense.
    (b) Prohibition on Procurement of Items From Identified Countries.--
The Secretary of Defense may not procure any items or components 
contained in military systems if the items or components, or the 
systems, are manufactured in any foreign country identified under 
subsection (a).
    (c) Waiver Authority.--The Secretary of Defense may waive the 
limitation in subsection (b) if the Secretary determines in writing and 
notifies Congress that the Department of Defense's need for the item is 
of such an unusual and compelling urgency that the Department would be 
unable to meet national security objectives.
    (d) Effective Date.--(1) <<NOTE: Applicability.>>  Subject to 
paragraph (2), subsection (b) applies to contracts in existence on the 
date of the enactment of this Act or entered into after such date.

    (2) With <<NOTE: Deadline.>> respect to contracts in existence on 
the date of the enactment of this Act, the Secretary of Defense shall 
take such action as is necessary to ensure that such contracts are in 
compliance with subsection (b) not later than 24 months after such date.

SEC. 822. INCENTIVE PROGRAM FOR MAJOR DEFENSE ACQUISITION PROGRAMS TO 
            USE MACHINE TOOLS AND OTHER CAPITAL ASSETS PRODUCED WITHIN 
            THE UNITED STATES.

    (a) In General.--(1) Chapter 144 of title 10, United States Code, is 
amended by inserting after section 2435 the following new section:

``Sec. 2436. Major defense acquisition programs: incentive program for 
                        contractors to purchase capital assets 
                        manufactured in United States

    ``(a) Establishment of Incentive Program.--The Secretary of Defense 
shall plan and establish an incentive program in accordance with this 
section for contractors to purchase capital assets manufactured in the 
United States in part with funds available to the Department of Defense.
    ``(b) Defense Industrial Capabilities Fund May Be Used.--The 
Secretary of Defense may use the Defense Industrial Capabilities Fund, 
established under section 814 of the National Defense Authorization Act 
for Fiscal Year 2004, for incentive payments under the program 
established under this section.
    ``(c) Applicability to Major Defense Acquisition Program 
Contracts.--The incentive program shall apply to contracts for the 
procurement of a major defense acquisition program.
    ``(d) Consideration.--The Secretary of Defense shall provide 
consideration in source selection in any request for proposals for

[[Page 117 STAT. 1547]]

a major defense acquisition program for offerors with eligible capital 
assets.''.

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2435 the 
following new item:

``2436. Major defense acquisition programs: incentive program for 
           contractors to purchase capital assets manufactured in United 
           States.''.

    (b) <<NOTE: 10 USC 2436 note.>> Regulations.--(1) The Secretary of 
Defense shall prescribe regulations as necessary to carry out section 
2436 of title 10, United States Code, as added by this section.

    (2) The Secretary may prescribe interim regulations as necessary to 
carry out such section. For this purpose, the Secretary is excepted from 
compliance with the notice and comment requirements of section 553 of 
title 5, United States Code. All interim rules prescribed under the 
authority of this paragraph that are not earlier superseded by final 
rules shall expire no later than 270 days after the effective date of 
section 2436 of title 10, United States Code, as added by this section.
    (c) <<NOTE: 10 USC 2436 note.>> Effective Date.--Section 2436 of 
title 10, United States Code, as added by subsection (a), shall apply 
with respect to contracts entered into after the expiration of the 18-
month period beginning on the date of the enactment of this Act.

SEC. 823. <<NOTE: 10 USC 2521 note.>> TECHNICAL ASSISTANCE RELATING TO 
            MACHINE TOOLS.

    (a) Technical Assistance.--The Secretary of Defense shall publish in 
the Federal Register information on Government contracting for purposes 
of assisting machine tool companies in the United States and entities 
that use machine tools. The information shall contain, at a minimum, the 
following:
            (1) An identification of resources with respect to 
        Government contracting regulations, including compliance 
        procedures and information on the availability of counseling.
            (2) An identification of resources for locating 
        opportunities for contracting with the Department of Defense, 
        including information about defense contracts that are expected 
        to be carried out that may require the use of machine tools.

    (b) Science and Technology Initiatives.--The Secretary of Defense 
shall incorporate into the Department of Defense science and technology 
initiatives on manufacturing technology an objective of developing 
advanced machine tool capabilities. Such technologies shall be used to 
improve the technological capabilities of the United States domestic 
machine tool industrial base in meeting national security objectives.

SEC. 824. <<NOTE: 10 USC 2505 note.>> STUDY OF BERYLLIUM INDUSTRIAL 
            BASE.

    (a) Requirement for Study.--The Secretary of Defense shall conduct a 
study of the adequacy of the industrial base of the United States to 
meet defense requirements of the United States for beryllium.
    (b) <<NOTE: Deadline.>> Report.--Not later than March 31, 2005, the 
Secretary shall submit a report on the results of the study to Congress. 
The report shall contain, at a minimum, the following information:
            (1) A discussion of the issues identified with respect to 
        the long-term supply of beryllium.
            (2) An assessment of the need, if any, for modernization of 
        the primary sources of production of beryllium.

[[Page 117 STAT. 1548]]

            (3) A discussion of the advisability of, and concepts for, 
        meeting the future defense requirements of the United States for 
        beryllium and maintaining a stable domestic industrial base of 
        sources of beryllium through--
                    (A) cooperative arrangements commonly referred to as 
                public-private partnerships;
                    (B) the administration of the National Defense 
                Stockpile under the Strategic and Critical Materials 
                Stock Piling Act; and
                    (C) any other means that the Secretary identifies as 
                feasible.

              Part III--Other Domestic Source Requirements

SEC. 826. EXCEPTIONS TO BERRY AMENDMENT FOR CONTINGENCY OPERATIONS AND 
            OTHER URGENT SITUATIONS.

    Section 2533a(d) of title 10, United States Code, is amended--
            (1) by striking ``Outside the United States'' in the 
        subsection heading;
            (2) in paragraph (1), by inserting ``or procurements of any 
        item listed in subsection (b)(1)(A), (b)(2), or (b)(3) in 
        support of contingency operations'' after ``in support of combat 
        operations''; and
            (3) by adding at the end the following new paragraph:
            ``(4) Procurements of any item listed in subsection 
        (b)(1)(A), (b)(2), or (b)(3) for which the use of procedures 
        other than competitive procedures has been approved on the basis 
        of section 2304(c)(2) of this title, relating to unusual and 
        compelling urgency of need.''.

SEC. 827. INAPPLICABILITY OF BERRY AMENDMENT TO PROCUREMENTS OF WASTE 
            AND BYPRODUCTS OF COTTON AND WOOL FIBER FOR USE IN THE 
            PRODUCTION OF PROPELLANTS AND EXPLOSIVES.

    Section 2533a(f) of title 10, United States Code, is amended--
            (1) by striking ``(f) Exception'' and all that follows 
        through ``the procurement of'' and inserting the following:

    ``(f) Exceptions for Certain Other Commodities and Items.--
Subsection (a) does not preclude the procurement of the following:
            ``(1)'';
            (2) by capitalizing the initial letter of the word following 
        ``(1)'', as added by paragraph (1); and
            (3) by adding at the end the following new paragraph:
            ``(2) Waste and byproducts of cotton and wool fiber for use 
        in the production of propellants and explosives.''.

SEC. 828. BUY AMERICAN EXCEPTION FOR BALL BEARINGS AND ROLLER BEARINGS 
            USED IN FOREIGN PRODUCTS.

    Section 2534(a)(5) of title 10, United States Code, is amended by 
inserting before the period at the end the following: ``, except ball 
bearings and roller bearings being procured for use in an end product 
manufactured by a manufacturer that does not satisfy the requirements of 
subsection (b) or in a component part manufactured by such a 
manufacturer''.

[[Page 117 STAT. 1549]]

    Subtitle C--Defense Acquisition and Support Workforce Flexibility

SEC. 831. MANAGEMENT STRUCTURE.

    (a) Repeal of Requirements for Certain Career Management Directors, 
Boards, and Policies.--Sections 1703, 1705, 1706, and 1707 of title 10, 
United States Code, are repealed.
    (b) Conforming Amendments.--Chapter 87 of such title is amended--
            (1) in section 1724(d)--
                    (A) in the first sentence, by striking ``The 
                acquisition career program board concerned'' and all 
                that follows through ``if the board certifies'' and 
                inserting ``The Secretary of Defense may waive any or 
                all of the requirements of subsections (a) and (b) with 
                respect to an employee of the Department of Defense or 
                member of the armed forces if the Secretary 
                determines'';
                    (B) in the second sentence, by striking ``the 
                board'' and inserting ``the Secretary''; and
                    (C) by striking the third sentence;
            (2) in section 1732(b)--
                    (A) in paragraph (1)(C), by striking ``, as 
                validated by the appropriate career program management 
                board''; and
                    (B) in paragraph (2)(A)(ii), by striking ``has been 
                certified by the acquisition career program board of the 
                employing military department as possessing'' and 
                inserting ``possess'';
            (3) in section 1732(d)--
                    (A) in paragraph (1)--
                          (i) in the first sentence, by striking ``the 
                      acquisition career program board of a military 
                      department'' and all that follows through ``if the 
                      board certifies'' and inserting ``the Secretary of 
                      Defense may waive any or all of the requirements 
                      of subsection (b) with respect to an employee if 
                      the Secretary determines'';
                          (ii) in the second sentence, by striking ``the 
                      board'' and inserting ``the Secretary''; and
                          (iii) by striking the third sentence; and
                    (B) in paragraph (2), by striking ``The acquisition 
                career program board of a military department'' and 
                inserting ``The Secretary'';
            (4) in section 1734--
                    (A) in subsection (d)--
                          (i) by striking paragraph (2); and
                          (ii) by redesignating paragraph (3) as 
                      paragraph (2), and in that paragraph by striking 
                      the second sentence; and
                    (B) in subsection (e)(2), by striking ``, by the 
                acquisition career program board of the department 
                concerned,''; and
            (5) in section 1737(c)--
                    (A) by striking paragraph (2); and
                    (B) by striking ``(1) The Secretary'' and inserting 
                ``The Secretary''.

[[Page 117 STAT. 1550]]

SEC. 832. ELIMINATION OF ROLE OF OFFICE OF PERSONNEL MANAGEMENT.

    (a) Workforce Qualification Requirements and Examinations.--Section 
1725 of such title is repealed.
    (b) Acquisition Corps Requirements.--Subchapter III of chapter 87 of 
title 10, United States Code, is amended--
            (1) in section 1731, by striking subsection (c);
            (2) in section 1732(c)(2), by striking the second and third 
        sentences;
            (3) in section 1734(g)--
                    (A) by striking paragraph (2); and
                    (B) in paragraph (1), by striking ``(1) The 
                Secretary'' and inserting ``The Secretary''; and
            (4) in section 1737, by striking subsection (d).

    (c) Appointment of Scholarship Recipient in Competitive Service.--
Section 1744(c)(3)(A)(i) of such title is amended by striking ``and such 
other requirements as the Office of Personnel Management may 
prescribe''.

SEC. 833. SINGLE ACQUISITION CORPS.

    Subchapter III of chapter 87 of title 10, United States Code, as 
amended by section 832, is further amended--
            (1) in section 1731--
                    (A) in subsection (a)--
                          (i) by striking ``each of the military 
                      departments and one or more Corps, as he considers 
                      appropriate, for the other components of'' in the 
                      first sentence; and
                          (ii) by striking the second sentence; and
                    (B) in subsection (b), by striking ``an Acquisition 
                Corps'' and inserting ``the Acquisition Corps'';
            (2) in sections 1732(a), 1732(e)(1), 1732(e)(2), 1733(a), 
        1734(e)(1), and 1737(a)(1), by striking ``an Acquisition Corps'' 
        and inserting ``the Acquisition Corps''; and
            (3) in section 1734--
                    (A) in subsection (g), by striking ``each 
                Acquisition Corps, a test program in which members of a 
                Corps'' and inserting ``the Acquisition Corps, a test 
                program in which members of the Corps''; and
                    (B) in subsection (h), by striking ``making 
                assignments of civilian and military members of the 
                Acquisition Corps of that military department'' and 
                inserting ``making assignments of civilian and military 
                personnel of that military department who are members of 
                the Acquisition Corps''.

SEC. 834. CONSOLIDATION OF CERTAIN EDUCATION AND TRAINING PROGRAM 
            REQUIREMENTS.

    (a) Consolidation of Authority.--Section 1742 of such title is 
amended to read as follows:

``Sec. 1742. Internship, cooperative education, and scholarship programs

    ``The Secretary of Defense shall conduct the following education and 
training programs:

[[Page 117 STAT. 1551]]

            ``(1) An intern program for purposes of providing highly 
        qualified and talented individuals an opportunity for 
        accelerated promotions, career broadening assignments, and 
        specified training to prepare them for entry into the 
        Acquisition Corps.
            ``(2) A cooperative education credit program under which the 
        Secretary arranges, through cooperative arrangements entered 
        into with one or more accredited institutions of higher 
        education, for such institutions to grant undergraduate credit 
        for work performed by students who are employed by the 
        Department of Defense in acquisition positions.
            ``(3) A scholarship program for the purpose of qualifying 
        personnel for acquisition positions in the Department of 
        Defense.''.

    (b) Conforming Amendments.--Sections 1743 and 1744 of such title are 
repealed.

SEC. 835. GENERAL MANAGEMENT PROVISIONS.

    Subchapter V of chapter 87 of title 10, United States Code, is 
amended--
            (1) by striking section 1763; and
            (2) by adding at the end the following new section 1764:

``Sec. 1764. Authority to establish different minimum requirements

    ``(a) Authority.--(1) The Secretary of Defense may prescribe a 
different minimum number of years of experience, different minimum 
education qualifications, and different tenure of service qualifications 
to be required for eligibility for appointment or advancement to an 
acquisition position referred to in subsection (b) than is required for 
such position under or pursuant to any provision of this chapter.
    ``(2) Any requirement prescribed under paragraph (1) for a position 
referred to in any paragraph of subsection (b) shall be applied 
uniformly to all positions referred to in such paragraph.
    ``(b) Applicability.--This section applies to the following 
acquisition positions in the Department of Defense:
            ``(1) Contracting officer, except a position referred to in 
        paragraph (5).
            ``(2) Program executive officer.
            ``(3) Senior contracting official.
            ``(4) Program manager.
            ``(5) A position in the contract contingency force of an 
        armed force that is filled by a member of that armed force.

    ``(c) Definition.--In this section, the term `contract contingency 
force', with respect to an armed force, has the meaning given such term 
in regulations prescribed by the Secretary concerned.''.

SEC. 836. CLERICAL AMENDMENTS.

    The tables of sections for chapter 87 of title 10, United States 
Code, are amended as follows:
            (1) The table of sections at the beginning of subchapter I 
        is amended by striking the items relating to sections 1703, 
        1705, 1706, and 1707.
            (2) The table of sections at the beginning of subchapter II 
        is amended by striking the item relating to section 1725.

[[Page 117 STAT. 1552]]

            (3) The table of sections at the beginning of subchapter IV 
        is amended by striking the items relating to sections 1742, 
        1743, and 1744 and inserting the following:

``1742. Internship, cooperative education, and scholarship programs.''.

            (4) The table of sections at the beginning of subchapter V 
        is amended by striking the item relating to section 1763 and 
        inserting the following:

``1764. Authority to establish different minimum requirements.''.

 Subtitle D--Amendments to General Contracting Authorities, Procedures, 
                             and Limitations

SEC. 841. ADDITIONAL AUTHORITY TO ENTER INTO PERSONAL SERVICES 
            CONTRACTS.

    (a) Additional Authority.--Section 129b of title 10, United States 
Code, is amended by adding at the end the following new subsection:
    ``(d) Additional Authority for Personal Services Contracts.--(1) In 
addition to the authority provided under subsection (a), the Secretary 
of Defense may enter into personal services contracts if the personal 
services--
            ``(A) are to be provided by individuals outside the United 
        States, regardless of their nationality, and are determined by 
        the Secretary to be necessary and appropriate for supporting the 
        activities and programs of the Department of Defense outside the 
        United States;
            ``(B) directly support the mission of a defense intelligence 
        component or counter-intelligence organization of the Department 
        of Defense; or
            ``(C) directly support the mission of the special operations 
        command of the Department of Defense.

    ``(2) The contracting officer for a personal services contract under 
this subsection shall be responsible for ensuring that--
            ``(A) the services to be procured are urgent or unique; and
            ``(B) it would not be practicable for the Department to 
        obtain such services by other means.

    ``(3) The requirements of section 3109 of title 5 shall not apply to 
a contract entered into under this subsection.''.
    (b) Conforming Amendments.--(1) The heading for section 129b of such 
title is amended to read as follows:

``Sec. 129b. Authority to procure personal services''.

    (2) The item relating to section 129b in the table of sections at 
the beginning of chapter 3 of such title is amended to read as follows:

``129b. Authority to procure personal services.''.

SEC. 842. ELIMINATION OF CERTAIN SUBCONTRACT NOTIFICATION REQUIREMENTS.

    Subsection (e) of section 2306 of title 10, United States Code, is 
amended--

[[Page 117 STAT. 1553]]

            (1) by striking ``(A)'' and ``(B)'' and inserting ``(i)'' 
        and ``(ii)'', respectively;
            (2) by redesignating paragraphs (1) and (2) as subparagraphs 
        (A) and (B), respectively;
            (3) by striking ``Each'' and inserting ``(1) Except as 
        provided in paragraph (2), each''; and
            (4) by adding at the end the following new paragraph:

    ``(2) Paragraph (1) shall not apply to a prime contract with a 
contractor that maintains a purchasing system approved by the 
contracting officer for the contract.''.

SEC. 843. MULTIYEAR TASK AND DELIVERY ORDER CONTRACTS.

    (a) Repeal of Applicability of Existing Authority and Limitations.--
Section 2306c of title 10, United States Code, is amended by striking 
subsection (g).
    (b) Contract Period.--Section 2304a of such title is amended--
            (1) by redesignating subsections (f) and (g) as subsections 
        (g) and (h), respectively; and
            (2) by inserting after subsection (e) the following new 
        subsection (f):

    ``(f) Contract Period.--The head of an agency entering into a task 
or delivery order contract under this section may provide for the 
contract to cover a total period of not more than five years.''.

SEC. 844. ELIMINATION OF REQUIREMENT TO FURNISH WRITTEN ASSURANCES OF 
            TECHNICAL DATA CONFORMITY.

    Section 2320(b) of title 10, United States Code, is amended--
            (1) by striking paragraph (7); and
            (2) by redesignating paragraphs (8) and (9) as paragraphs 
        (7) and (8), respectively.

SEC. 845. ACCESS TO INFORMATION RELEVANT TO ITEMS DEPLOYED UNDER RAPID 
            ACQUISITION AND DEPLOYMENT PROCEDURES.

    Section 806(c) of the Bob Stump National Defense Authorization Act 
for Fiscal Year 2003 (Public Law 107-314; 116 Stat. 2607; 10 U.S.C. 2302 
note) is amended by adding at the end the following new paragraph:
    ``(3) If items are deployed under the rapid acquisition and 
deployment procedures prescribed pursuant to this section, or under any 
other authority, before the completion of operational test and 
evaluation of the items, the Director of Operational Test and Evaluation 
shall have access to operational records and data relevant to such items 
in accordance with section 139(e)(3) of title 10, United States Code, 
for the purpose of completing operational test and evaluation of the 
items. The access to the operational records and data shall be provided 
in a time and manner determined by the Secretary of Defense consistent 
with requirements of operational security and other relevant operational 
requirements.''.

SEC. 846. APPLICABILITY OF REQUIREMENT FOR REPORTS ON MATURITY OF 
            TECHNOLOGY AT INITIATION OF MAJOR DEFENSE ACQUISITION 
            PROGRAMS.

    Section 804(a) of the National Defense Authorization Act for Fiscal 
Year 2002 (Public Law 107-107; 115 Stat. 1180) is amended by striking 
``, as in effect on the date of enactment of this Act,''

[[Page 117 STAT. 1554]]

and inserting ``(as in effect on the date of the enactment of this Act), 
and the corresponding provision of any successor to such Instruction,''.

SEC. 847. CERTAIN WEAPONS-RELATED PROTOTYPE PROJECTS.

    (a) Extension of Authority.--Subsection (g) of section 845 of the 
National Defense Authorization Act for Fiscal Year 1994 (10 U.S.C. 2371 
note) is amended by striking ``September 30, 2004'' and inserting 
``September 30, 2008''.
    (b) Increased Scope of Authority.--Subsection (a) of such section is 
amended by inserting before the period at the end the following: ``, or 
to improvement of weapons or weapon systems in use by the Armed 
Forces''.
    (c) Pilot Program for Transition to Follow-on Contracts.--Such 
section, as amended by subsection (a), is further amended--
            (1) by redesignating subsections (e), (f), and (g) as 
        subsections (f), (g), and (h), respectively; and
            (2) by inserting after subsection (d) the following new 
        subsection (e):

    ``(e) Pilot Program for Transition to Follow-on Contracts.--(1) The 
Secretary of Defense is authorized to carry out a pilot program for 
follow-on contracting for the production of items or processes under 
prototype projects carried out under this section.
    ``(2) Under the pilot program--
            ``(A) a qualifying contract for the procurement of such an 
        item or process, or a qualifying subcontract under a contract 
        for the procurement of such an item or process, may be treated 
        as a contract or subcontract, respectively, for the procurement 
        of commercial items, as defined in section 4(12) of the Office 
        of Federal Procurement Policy Act (41 U.S.C. 403(12)); and
            ``(B) the item or process may be treated as an item or 
        process, respectively, that is developed in part with Federal 
        funds and in part at private expense for the purposes of section 
        2320 of title 10, United States Code.

    ``(3) For the purposes of the pilot program, a qualifying contract 
or subcontract is a contract or subcontract, respectively, with a 
nontraditional defense contractor that--
            ``(A) does not exceed $50,000,000; and
            ``(B) is either--
                    ``(i) a firm, fixed-price contract or subcontract; 
                or
                    ``(ii) a fixed-price contract or subcontract with 
                economic price adjustment.

    ``(4) The authority to conduct a pilot program under this subsection 
shall terminate on September 30, 2008. The termination of the authority 
shall not affect the validity of contracts or subcontracts that are 
awarded or modified during the period of the pilot program, without 
regard to whether the contracts or subcontracts are performed during the 
period.''.

SEC. 848. LIMITED ACQUISITION AUTHORITY FOR COMMANDER OF UNITED STATES 
            JOINT FORCES COMMAND.

    (a) Three-Year Authority to Delegate Acquisition Authority.--(1) 
Chapter 6 of title 10, United States Code, is amended by inserting after 
section 167 the following new section:

[[Page 117 STAT. 1555]]

``Sec. 167a. Unified combatant command for joint warfighting 
                        experimentation: acquisition authority

    ``(a) Limited Acquisition Authority for Commander of Certain Unified 
Combatant Command.--The Secretary of Defense may delegate to the 
commander of the unified combatant command referred to in subsection (b) 
authority of the Secretary under chapter 137 of this title sufficient to 
enable the commander to develop and acquire equipment described in 
subsection (c). The exercise of authority so delegated is subject to the 
authority, direction, and control of the Secretary.
    ``(b) Command Described.--The commander to whom authority is 
delegated under subsection (a) is the commander of the unified combatant 
command that has the mission for joint warfighting experimentation, as 
assigned by the Secretary of Defense.
    ``(c) Equipment.--The equipment referred to in subsection (a) is as 
follows:
            ``(1) Equipment for battle management command, control, 
        communications, and intelligence.
            ``(2) Any other equipment that the commander referred to in 
        subsection (b) determines necessary and appropriate for--
                    ``(A) facilitating the use of joint forces in 
                military operations; or
                    ``(B) enhancing the interoperability of equipment 
                used by the various components of joint forces.

    ``(d) Exceptions.--The authority delegated under subsection (a) does 
not apply to the development or acquisition of a system for which--
            ``(1) the total expenditure for research, development, test, 
        and evaluation is estimated to be $10,000,000 or more; or
            ``(2) the total expenditure for procurement is estimated to 
        be $50,000,000 or more.

    ``(e) Internal Audits and Inspections.--The commander referred to in 
subsection (b) shall require the inspector general of that command to 
conduct internal audits and inspections of purchasing and contracting 
administered by the commander under the authority delegated under 
subsection (a).
    ``(f) Termination.--The Secretary may delegate the authority 
referred to in subsection (a) only during fiscal years 2004 through 
2006, and any authority so delegated shall not be in effect after 
September 30, 2006.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 167 the 
following new item:

``167a. Unified combatant command for joint warfighting experimentation: 
           acquisition authority.''.

    (b) <<NOTE: 10 USC 167a note.>> Comptroller General Report.--The 
Comptroller General shall review the implementation of section 167a of 
title 10, United States Code, as added by subsection (a), and submit to 
Congress a report on such review not later than two years after the date 
of the enactment of this Act. The review shall cover the extent to which 
the authority provided under such section 167a has been used.

[[Page 117 STAT. 1556]]

        Subtitle E--Acquisition-Related Reports and Other Matters

SEC. 851. REPORT ON CONTRACT PAYMENTS TO SMALL BUSINESSES.

    (a) Report.--The Comptroller General shall prepare and submit to the 
congressional defense committees a report on the timeliness of contract 
payments made to small businesses during fiscal years 2001 and 2002 by 
the Department of Defense. The report shall include an estimate of the 
following:
            (1) The total amount of contract payments made by the 
        Department to small businesses.
            (2) The percentage of total contract payments to small 
        businesses that were not made in a timely manner.
            (3) The reasons that contract payments to small businesses 
        were not made in a timely manner.
            (4) The amount of interest owed and paid by the Department 
        to small businesses due to contract payments not made in a 
        timely manner.
            (5) Such recommendations as the Comptroller General 
        considers appropriate to improve the process for making contract 
        payments to small businesses in a timely manner.

    (b) Definitions.--For purposes of subsection (a)--
            (1) a payment is considered not made in a timely manner if 
        it caused interest to accrue under chapter 39 of title 31, 
        United States Code (relating to prompt payment); and
            (2) the term ``small business'' means an entity that 
        qualifies as a small business concern under the Small Business 
        Act.

SEC. 852. CONTRACTING WITH EMPLOYERS OF PERSONS WITH DISABILITIES.

    (a) Inapplicability of Randolph-Sheppard Act.--The Randolph-Sheppard 
Act does not apply to any contract described in subsection (b) for so 
long as the contract is in effect, including for any period for which 
the contract is extended pursuant to an option provided in the contract.
    (b) Javits-Wagner-O'Day Contracts.--Subsection (a) applies to any 
contract for the operation of a military mess hall, military troop 
dining facility, or any similar dining facility operated for the purpose 
of providing meals to members of the Armed Forces that--
            (1) was entered into before the date of the enactment of 
        this Act with a nonprofit agency for the blind or an agency for 
        other severely handicapped in compliance with section 3 of the 
        Javits-Wagner-O'Day Act (41 U.S.C. 48); and
            (2) is in effect on such date.

    (c) <<NOTE: 20 USC 107 note.>> Enactment of Popular Name as Short 
Title.--The Act entitled ``An Act to authorize the operation of stands 
in Federal buildings by blind persons, to enlarge the economic 
opportunities of the blind, and for other purposes'', approved June 20, 
1936 (commonly known as the ``Randolph-Sheppard Act'') (20 U.S.C. 107 et 
seq.), is amended by adding at the end the following new section:

    ``Sec. 11. This Act may be cited as the `Randolph-Sheppard Act'.''.

[[Page 117 STAT. 1557]]

SEC. 853. <<NOTE: 10 USC 2302 note.>> DEMONSTRATION PROJECT FOR 
            CONTRACTORS EMPLOYING PERSONS WITH DISABILITIES.

    (a) Authority.--The Secretary of Defense may carry out a 
demonstration project by entering into one or more contracts with an 
eligible contractor for the purpose of providing defense contracting 
opportunities for severely disabled individuals.
    (b) Evaluation Factor.--In evaluating an offer for a contract under 
the demonstration program, the percentage of the total workforce of the 
offeror consisting of severely disabled individuals employed by the 
offeror shall be one of the evaluation factors.
    (c) Definitions.--In this section:
            (1) Eligible contractor.--The term ``eligible contractor'' 
        means a business entity operated on a for-profit or nonprofit 
        basis that--
                    (A) employs severely disabled individuals at a rate 
                that averages not less than 33 percent of its total 
                workforce over a period prescribed by the Secretary;
                    (B) pays not less than the minimum wage prescribed 
                pursuant to section 6 of the Fair Labor Standards Act of 
                1938 (29 U.S.C. 206) to the employees who are severely 
                disabled individuals; and
                    (C) provides for its employees health insurance and 
                a retirement plan comparable to those provided for 
                employees by business entities of similar size in its 
                industrial sector or geographic region.
            (2) Severely disabled individual.--The term ``severely 
        disabled individual'' means an individual with a disability (as 
        defined in section 3 of the Americans with Disabilities Act of 
        1990 (42 U.S.C. 12102)) who has a severe physical or mental 
        impairment that seriously limits one or more functional 
        capacities.

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

 Subtitle A--Duties and Functions of Department of Defense Officers and 
                              Organizations

Sec. 901. Clarification of responsibility of military departments to 
           support combatant commands.
Sec. 902. Combatant Commander Initiative Fund.
Sec. 903. Biennial review of national military strategy by Chairman of 
           the Joint Chiefs of Staff.
Sec. 904. Report on changing roles of United States Special Operations 
           Command.
Sec. 905. Sense of Congress regarding continuation of mission and 
           functions of Army Peacekeeping Institute.
Sec. 906. Transfer to Office of Personnel Management of personnel 
           investigative functions and related personnel of the 
           Department of Defense.
Sec. 907. Defense acquisition workforce freeze for fiscal year 2004.

                      Subtitle B--Space Activities

Sec. 911. Coordination of space science and technology activities of the 
           Department of Defense.
Sec. 912. Policy regarding assured access to space for United States 
           national security payloads.
Sec. 913. Pilot program for provision of space surveillance network 
           services to non-United States Government entities.
Sec. 914. Content of biennial global positioning system report.
Sec. 915. Report on processes-related space systems.

[[Page 117 STAT. 1558]]

        Subtitle C--Department of Defense Intelligence Components

Sec. 921. Redesignation of National Imagery and Mapping Agency as 
           National Geospatial-Intelligence Agency.
Sec. 922. Protection of operational files of the National Security 
           Agency.
Sec. 923. Integration of defense intelligence, surveillance, and 
           reconnaissance capabilities.
Sec. 924. Management of National Security Agency Modernization Program.
Sec. 925. Modification of obligated service requirements under National 
           Security Education Program.
Sec. 926. Authority to provide living quarters for certain students in 
           cooperative and summer education programs of the National 
           Security Agency.
Sec. 927. Commercial imagery industrial base.

                        Subtitle D--Other Matters

Sec. 931. Authority for Asia-Pacific Center for Security Studies to 
           accept gifts and donations.
Sec. 932. Repeal of rotating chairmanship of Economic Adjustment 
           Committee.
Sec. 933. Extension of certain authorities applicable to the Pentagon 
           Reservation to include a designated Pentagon continuity-of-
           Government location.

 Subtitle A--Duties and Functions of Department of Defense Officers and 
                              Organizations

SEC. 901. CLARIFICATION OF RESPONSIBILITY OF MILITARY DEPARTMENTS TO 
            SUPPORT COMBATANT COMMANDS.

    Sections 3013(c)(4), 5013(c)(4), and 8013(c)(4) of title 10, United 
States Code, are amended by striking ``(to the maximum extent 
practicable)''.

SEC. 902. COMBATANT COMMANDER INITIATIVE FUND.

    (a) <<NOTE: 10 USC 166a note.>> Redesignation of CINC Initiative 
Fund.--(1) The CINC Initiative Fund administered under section 166a of 
title 10, United States Code, is redesignated as the ``Combatant 
Commander Initiative Fund''.

    (2) Section 166a of title 10, United States Code, is amended--
            (A) by striking the heading for subsection (a) and inserting 
        ``Combatant Commander Initiative Fund.--``; and
            (B) by striking ``CINC Initiative Fund'' in subsections (a), 
        (c), and (d), and inserting ``Combatant Commander Initiative 
        Fund''.

    (3) <<NOTE: 10 USC 166a note.>> Any reference to the CINC Initiative 
Fund in any other provision of law or in any regulation, document, 
record, or other paper of the United States shall be considered to be a 
reference to the Combatant Commander Initiative Fund.

    (b) Authorized Activities.--Subsection (b) of section 166a of title 
10, United States Code, is amended by adding at the end the following 
new paragraph:
            ``(10) Joint warfighting capabilities.''.

    (c) Increased Maximum Amounts Authorized for Use.--Subsection (e)(1) 
of such section is amended--
            (1) in subparagraph (A), by striking ``$7,000,000'' and 
        inserting ``$10,000,000'';
            (2) in subparagraph (B), by striking ``$1,000,000'' and 
        inserting ``$10,000,000''; and
            (3) in subparagraph (C), by striking ``$2,000,000'' and 
        inserting ``$5,000,000''.

SEC. 903. BIENNIAL REVIEW OF NATIONAL MILITARY STRATEGY BY CHAIRMAN OF 
            THE JOINT CHIEFS OF STAFF.

    (a) Biennial Review.--Section 153 of title 10, United States Code, 
by adding at the end the following new subsection:

[[Page 117 STAT. 1559]]

    ``(d) Biennial Review of 
National <<NOTE: Deadline. Reports.>> Military Strategy.--(1) Not later 
then February 15 of each even-numbered year, the Chairman shall submit 
to the Committee on Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives a report containing the 
results of a comprehensive examination of the national military 
strategy. Each such examination shall be conducted by the Chairman in 
conjunction with the other members of the Joint Chiefs of Staff and the 
commanders of the unified and specified commands.

    ``(2) Each report on the examination of the national military 
strategy under paragraph (1) shall include the following:
            ``(A) Delineation of a national military strategy consistent 
        with--
                    ``(i) the most recent National Security Strategy 
                prescribed by the President pursuant to section 108 of 
                the National Security Act of 1947 (50 U.S.C. 404a);
                    ``(ii) the most recent annual report of the 
                Secretary of Defense submitted to the President and 
                Congress pursuant to section 113 of this title; and
                    ``(iii) the most recent Quadrennial Defense Review 
                conducted by the Secretary of Defense pursuant to 
                section 118 of this title.
            ``(B) A description of the strategic environment and the 
        opportunities and challenges that affect United States national 
        interests and United States national security.
            ``(C) A description of the regional threats to United States 
        national interests and United States national security.
            ``(D) A description of the international threats posed by 
        terrorism, weapons of mass destruction, and asymmetric 
        challenges to United States national security.
            ``(E) Identification of United States national military 
        objectives and the relationship of those objectives to the 
        strategic environment, regional, and international threats.
            ``(F) Identification of the strategy, underlying concepts, 
        and component elements that contribute to the achievement of 
        United States national military objectives.
            ``(G) Assessment of the capabilities and adequacy of United 
        States forces (including both active and reserve components) to 
        successfully execute the national military strategy.
            ``(H) Assessment of the capabilities, adequacy, and 
        interoperability of regional allies of the United States and or 
        other friendly nations to support United States forces in combat 
        operations and other operations for extended periods of time.

    ``(3)(A) As part of the assessment under this subsection, the 
Chairman, in conjunction with the other members of the Joint Chiefs of 
Staff and the commanders of the unified and specified commands, shall 
undertake an assessment of the nature and magnitude of the strategic and 
military risks associated with successfully executing the missions 
called for under the current National Military Strategy.
    ``(B) In preparing the assessment of risk, the Chairman should make 
assumptions pertaining to the readiness of United States forces (in both 
the active and reserve components), the length of conflict and the level 
of intensity of combat operations, and the levels of support from allies 
and other friendly nations.

[[Page 117 STAT. 1560]]

    ``(4) Before submitting a report under this subsection to the 
Committees on Armed Services of the Senate and House of Representatives, 
the Chairman shall provide the report to the Secretary of Defense. The 
Secretary's assessment and comments thereon (if any) shall be included 
with the report. If the Chairman's assessment in such report in any year 
is that the risk associated with executing the missions called for under 
the National Military Strategy is significant, the Secretary shall 
include with the report as submitted to those committees the Secretary's 
plan for mitigating the risk.''.
    (b) Conforming Amendment.--Subsection (b)(1) of such section is 
amended by striking ``each year'' and inserting ``of each odd-numbered 
year''.

SEC. 904. REPORT ON CHANGING ROLES OF UNITED STATES SPECIAL OPERATIONS 
            COMMAND.

    (a) Report Required.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives a report on the changing roles of the United States 
Special Operations Command.
    (b) Content of Report.--(1) The report shall specifically discuss in 
detail the following matters:
            (A) The expanded role of the United States Special 
        Operations Command in the global war on terrorism.
            (B) The reorganization of that command to function as a 
        supported combatant command for planning and executing 
        operations.
            (C) The role of that command as a supporting combatant 
        command.

    (2) The report shall also include, in addition to the matters 
discussed pursuant to paragraph (1), a discussion of the following 
matters:
            (A) The military strategy to employ the United States 
        Special Operations Command to fight the global war on terrorism 
        and how that strategy contributes to the overall national 
        security strategy with regard to the global war on terrorism.
            (B) The scope of the authority granted to the commander of 
        that command to act as a supported commander and to prosecute 
        the global war on terrorism.
            (C) The operational and legal parameters within which the 
        commander of that command is to exercise command authority in 
        foreign countries when taking action against foreign and United 
        States citizens engaged in terrorist activities.
            (D) The decisionmaking procedures for authorizing, planning, 
        and conducting individual missions by that command, including--
                    (i) the requirement in section 167(d)(2) of title 
                10, United States Code, that the conduct of a special 
                operations mission under the command of the commander of 
                the United States Special Operations Command be 
                authorized by the President or the Secretary of Defense; 
                and
                    (ii) procedures for consultation with Congress.
            (E) The procedures for the commander of that command to use 
        to coordinate with commanders of other combatant commands, 
        especially geographic commands.

[[Page 117 STAT. 1561]]

            (F) Future organization plans and resource requirements for 
        that command conducting the global counterterrorism mission.
            (G) The effect of the changing role of that command on other 
        special operations missions, including foreign internal defense, 
        psychological operations, civil affairs, unconventional warfare, 
        counterdrug activities, and humanitarian activities.

    (c) Forms of Report.--The report shall be submitted in unclassified 
form and, as necessary, in classified form.

SEC. 905. SENSE OF CONGRESS REGARDING CONTINUATION OF MISSION AND 
            FUNCTIONS OF ARMY PEACEKEEPING INSTITUTE.

    It is the sense of Congress that the Secretary of Defense should 
maintain the functions and missions of the Army Peacekeeping Institute 
at the Army War College in Carlisle, Pennsylvania, or within a joint 
entity of the Department of Defense, such as the National Defense 
University or the Joint Forces Command, to ensure that members of the 
Armed Forces continue to study the strategic challenges and uses of 
peacekeeping missions and to prepare the Armed Forces for conducting 
such missions.

SEC. 906. <<NOTE: 5 USC 1101 note.>> TRANSFER TO OFFICE OF PERSONNEL 
            MANAGEMENT OF PERSONNEL INVESTIGATIVE FUNCTIONS AND RELATED 
            PERSONNEL OF THE DEPARTMENT OF DEFENSE.

    (a) Transfer of Functions.--(1) Subject to subsection (b), the 
Secretary of Defense may transfer to the Office of Personnel Management 
the personnel security investigations functions that, as of the date of 
the enactment of this Act, are performed by the Defense Security Service 
of the Department of Defense. Such a transfer may be made only with the 
concurrence of the Director of the Office of Personnel Management.
    (2) The Director of the Office of Personnel Management may accept a 
transfer of functions under paragraph (1).
    (3) Any transfer of a function under this subsection is a transfer 
of function within the meaning of section 3503 of title 5, United States 
Code.
    (b) Limitation.--(1) The Secretary of Defense may not make a 
transfer of functions under subsection (a) unless the Secretary 
determines, and certifies in writing to the Committee on Armed Services 
of the House of Representatives and the Committee on Armed Services of 
the Senate, that each of the conditions specified in paragraph (2) has 
been met. Such a transfer may then be made only after a period of 30 
days has elapsed after the date on which the certification is received 
by those committees.
    (2) The conditions referred to in paragraph (1) are the following:
            (A) That the Office of Personnel Management is fully capable 
        of carrying out high-priority investigations required by the 
        Secretary of Defense within a timeframe set by the Secretary of 
        Defense.
            (B) That the Office of Personnel Management has undertaken 
        necessary and satisfactory steps to ensure that investigations 
        performed on Department of Defense contract personnel will be 
        conducted in an expeditious manner sufficient to ensure that 
        those contract personnel are available to the Department of 
        Defense within a timeframe set by the Secretary of Defense.
            (C) That the Department of Defense will retain capabilities 
        in the form of Federal employees to monitor and investigate

[[Page 117 STAT. 1562]]

        Department of Defense and contractor personnel as necessary to 
        perform counterintelligence functions and polygraph activities 
        of the Department.
            (D) That the authority to adjudicate background 
        investigations will remain with the Department of Defense and 
        that the transfer of Defense Security Service personnel to the 
        Office of Personnel Management will improve the speed and 
        efficiency of the adjudication process.
            (E) That the Department of Defense will retain within the 
        Defense Security Service sufficient personnel and capabilities 
        to improve Department of Defense industrial security programs 
        and practices.

    (c) Transfer of Personnel.--(1) If the Director of the Office of 
Personnel Management accepts a transfer of functions under subsection 
(a), the Secretary of Defense shall also transfer to the Office of 
Personnel Management, and the Director shall accept--
            (A) the Defense Security Service employees who perform those 
        functions immediately before the transfer of functions; and
            (B) the Defense Security Service employees who, as of such 
        time, are first level supervisors of employees transferred under 
        subparagraph (A).

    (2) The Secretary may also transfer to the Office of Personnel 
Management any Defense Security Service employees (including higher 
level supervisors) who provide support services for the performance of 
the functions transferred under subsection (a) or for the personnel 
(including supervisors) transferred under paragraph (1) if the 
Director--
            (A) determines that the transfer of such additional 
        employees and the positions of such employees to the Office of 
        Personnel Management is necessary in the interest of effective 
        performance of the transferred functions; and
            (B) accepts the transfer of the additional employees.

    (3) In the case of an employee transferred to the Office of 
Personnel Management under paragraph (1) or (2), whether a full-time or 
part-time employee--
            (A) subsections (b) and (c) of section 5362 of title 5, 
        United States Code, relating to grade retention, shall apply to 
        the employee, except that--
                    (i) the grade retention period shall be the one-year 
                period beginning on the date of the transfer; and
                    (ii) paragraphs (1), (2), and (3) of such subsection 
                (c) shall not apply to the employee; and
            (B) the employee may not be separated, other than pursuant 
        to chapter 75 of title 5, United States Code, during such one-
        year period.

    (d) Actions After Transfer.--(1) Not <<NOTE: Deadline.>>  later than 
one year after a transfer of functions to the Office of Personnel 
Management under subsection (a), the Director of the Office of Personnel 
Management, in coordination with the Secretary of Defense, shall review 
all functions performed by personnel of the Defense Security Service at 
the time of the transfer and make a written determination regarding 
whether each such function is inherently governmental or is otherwise 
inappropriate for performance by contractor personnel.

    (2) A function performed by Defense Security Service employees as of 
the date of the enactment of this Act may not be converted

[[Page 117 STAT. 1563]]

to contractor performance by the Director of the Office of Personnel 
Management until--
            (A) the Director reviews the function in accordance with the 
        requirements of paragraph (1) and makes a written determination 
        that the function is not inherently governmental and is not 
        otherwise inappropriate for contractor performance; and
            (B) the Director conducts a public-private competition 
        regarding the performance of that function in accordance with 
        the requirements of the Office of Management and Budget Circular 
        A-76.

SEC. 907. DEFENSE ACQUISITION WORKFORCE FREEZE FOR FISCAL YEAR 2004.

    (a) Defense Acquisition Workforce Freeze.--During fiscal year 2004, 
the number of defense acquisition and support personnel may not at any 
time be greater than one percent above, or less than one percent below, 
the baseline number, and any variation from the baseline number (within 
such one percent variance) shall be only to exercise normal hiring and 
firing flexibility during the fiscal year.
    (b) Baseline Number.--For purposes of subsection (a), the baseline 
number is the number of defense acquisition and support personnel as of 
October 1, 2003.
    (c) Use of Full-Time Equivalent Positions.--All determinations of 
personnel strengths for purposes of this section shall be on the basis 
of full-time equivalent positions.
    (d) Waiver Authority.--The Secretary of Defense may waive the 
limitation in subsection (a) upon a determination that such waiver is 
necessary to protect a significant national security interest of the 
United States. If the Secretary makes such a determination, the 
Secretary shall, within 30 days after making the determination, notify 
the Committees on Armed Services of the Senate and House of 
Representatives of the determination and the reasons for the 
determination.
    (e) Definition.--In this section, the term ``defense acquisition and 
support personnel'' means members of the Armed Forces and civilian 
personnel (other than civilian personnel who are employed at a 
maintenance depot) who are assigned to, or employed in, acquisition 
organizations of the Department of Defense (as specified in Department 
of Defense Instruction numbered 5000.58, dated January 14, 1992), and 
any other organization that, as determined by the Secretary, has 
acquisition as its predominant mission.

                      Subtitle B--Space Activities

SEC. 911. COORDINATION OF SPACE SCIENCE AND TECHNOLOGY ACTIVITIES OF THE 
            DEPARTMENT OF DEFENSE.

    (a) In General.--(1) Chapter 135 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 2272. Space science and technology strategy: coordination

    ``(a) Space Science and Technology Strategy.--(1) The Secretary of 
Defense shall develop and implement a space science and technology 
strategy and shall review and, as appropriate, revise the strategy 
annually. Functions of the Secretary under this subsection shall be 
carried out jointly by the Director of Defense Research and Engineering 
and the official of the Department of

[[Page 117 STAT. 1564]]

Defense designated as the Department of Defense Executive Agent for 
Space.
    ``(2) The strategy under paragraph (1) shall, at a minimum, address 
the following issues:
            ``(A) Short-term and long-term goals of the space science 
        and technology programs of the Department of Defense.
            ``(B) The process for achieving the goals identified under 
        subparagraph (A), including an implementation plan for achieving 
        those goals.
            ``(C) The process for assessing progress made toward 
        achieving those goals.

    ``(3) The strategy under paragraph (1) shall be included as part of 
the annual National Security Space Plan developed pursuant to Department 
of Defense regulations and shall be provided to Department of Defense 
components and science and technology entities of the Department of 
Defense to support the planning, programming, and budgeting processes of 
the Department.
    ``(4) The strategy under paragraph (1) shall be developed in 
consultation with the directors of research laboratories of the 
Department of Defense, the directors of the other Department of Defense 
research components, and the heads of other organizations of the 
Department of Defense as identified by the Director of Defense Research 
and Engineering and the Department of Defense Executive Agent for Space.
    ``(5) The strategy shall be available for review by the 
congressional defense committees.
    ``(b) Required Coordination.--In carrying out the space science and 
technology strategy developed under subsection (a), the directors of the 
research laboratories of the Department of Defense, the directors of the 
other Department of Defense research components, and the heads of all 
other appropriate organizations identified jointly by the Director of 
Defense Research and Engineering and the Department of Defense Executive 
Agent for Space shall each--
            ``(1) identify research projects in support of that strategy 
        that contribute directly and uniquely to the development of 
        space technology; and
            ``(2) inform the Director of Defense Research and 
        Engineering and the Department of Defense Executive Agent for 
        Space of the planned budget and planned schedule for executing 
        those projects.

    ``(c) Definitions.--In this section:
            ``(1) The term `research laboratory of the Department of 
        Defense' means any of the following:
                    ``(A) The Air Force Research Laboratory.
                    ``(B) The Naval Research Laboratory.
                    ``(C) The Office of Naval Research.
                    ``(D) The Army Research Laboratory.
            ``(2) The term `other Department of Defense research 
        component' means either of the following:
                    ``(A) The Defense Advanced Research Projects Agency.
                    ``(B) The National Reconnaissance Office.''.

    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``2272. Space science and technology strategy: coordination.''.


[[Page 117 STAT. 1565]]



    (b) General Accounting Office Review.--(1) The Comptroller General 
shall review and assess the space science and technology strategy 
developed under subsection (a) of section 2272 of title 10, United 
States Code, as added by subsection (a), and the effectiveness of the 
coordination process required under subsection (b) of that section.
    (2) <<NOTE: Deadline. Reports.>> Not later than September 1, 2004, 
the Comptroller General shall submit to the Committees on Armed Services 
of the Senate and the House of Representatives a report containing the 
findings and assessment under paragraph (1).

SEC. 912. POLICY REGARDING ASSURED ACCESS TO SPACE FOR UNITED STATES 
            NATIONAL SECURITY PAYLOADS.

    (a) In General.--(1) Chapter 135 of title 10, United States Code, is 
amended by adding after section 2272, as added by section 911(a)(1), the 
following new section:

``Sec. 2273. Policy regarding assured access to space: national security 
                        payloads

    ``(a) Policy.--It is the policy of the United States for the 
President to undertake actions appropriate to ensure, to the maximum 
extent practicable, that the United States has the capabilities 
necessary to launch and insert United States national security payloads 
into space whenever such payloads are needed in space.
    ``(b) Included Actions.--The appropriate actions referred to in 
subsection (a) shall include, at a minimum, providing resources and 
policy guidance to sustain--
            ``(1) the availability of at least two space launch vehicles 
        (or families of space launch vehicles) capable of delivering 
        into space any payload designated by the Secretary of Defense or 
        the Director of Central Intelligence as a national security 
        payload; and
            ``(2) a robust space launch infrastructure and industrial 
        base.

    ``(c) Coordination.--The Secretary of Defense shall, to the maximum 
extent practicable, pursue the attainment of the capabilities described 
in subsection (a) in coordination with the Administrator of the National 
Aeronautics and Space Administration.''.

    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding after the item relating to section 
2272, as added by section 911(a)(2), the following new item:

``2273. Policy regarding assured access to space: national security 
           payloads.''.

SEC. 913. PILOT PROGRAM FOR PROVISION OF SPACE SURVEILLANCE NETWORK 
            SERVICES TO NON-UNITED STATES GOVERNMENT ENTITIES.

    (a) In General.--Chapter 135 of title 10, United States Code, is 
amended by adding after section 2273, as added by section 912(a), the 
following new section:

``Sec. 2274. Space surveillance network: pilot program for provision of 
                        satellite tracking support to entities outside 
                        United States Government

    ``(a) Pilot Program.--The Secretary of Defense may carry out a pilot 
program to determine the feasibility and desirability of

[[Page 117 STAT. 1566]]

providing to non-United States Government entities space surveillance 
data support described in subsection (b).
    ``(b) Space Surveillance Data Support.--Under such a pilot program, 
the Secretary may provide to a non-United States Government entity, 
subject to an agreement described in subsection (d), the following:
            ``(1) Satellite tracking services from assets owned or 
        controlled by the Department of Defense, but only if the 
        Secretary determines, in the case of any such agreement, that 
        providing such services to that entity is in the national 
        security interests of the United States.
            ``(2) Space surveillance data and the analysis of space 
        surveillance data, but only if the Secretary determines, in the 
        case of any such agreement, that providing such data and 
        analysis to that entity is in the national security interests of 
        the United States.

    ``(c) Eligible Entities.--Under the pilot program, the Secretary may 
provide space surveillance data support to non-United States Government 
entities including the following:
            ``(1) State governments.
            ``(2) Governments of political subdivisions of States.
            ``(3) United States commercial entities.
            ``(4) Governments of foreign countries.
            ``(5) Foreign commercial entities.

    ``(d) Required Agreement.--The Secretary may not provide space 
surveillance data support to a non-United States Government entity under 
the pilot program unless that entity enters into an agreement with the 
Secretary under which the entity--
            ``(1) agrees to pay an amount that may be charged by the 
        Secretary under subsection (e); and
            ``(2) agrees not to transfer any data or technical 
        information received under the agreement, including the analysis 
        of tracking data, to any other entity without the express 
        approval of the Secretary.

    ``(e) Rule of Construction Concerning Provision of Intelligence 
Assets or Data.--Nothing in this section shall be considered to 
authorize the provision of services or information concerning, or 
derived from, United States intelligence assets or data.
    ``(f) Charges.--(1) As a condition of an agreement under subsection 
(d), the Secretary may (except as provided in paragraph (2)) require the 
non-United States Government entity entering into the agreement to pay 
to the Department of Defense such amounts as the Secretary determines to 
be necessary to reimburse the Department for the costs of the Department 
of providing space surveillance data support under the agreement.
    ``(2) The Secretary may not require the government of a State or of 
a political subdivision of a State to pay any amount under paragraph 
(1).
    ``(g) Crediting of Funds Received.--Funds received for the provision 
of space surveillance data support pursuant to an agreement under this 
section shall be credited to accounts of the Department of Defense that 
are current when the funds are received and that are available for the 
same purposes as the accounts originally charged to provide such 
support. Funds so credited shall merge with and become available for 
obligation for the same period as the accounts to which they are 
credited.

[[Page 117 STAT. 1567]]

    ``(h) Procedures.--The Secretary shall establish procedures for the 
conduct of the pilot program. As part of those procedures, the Secretary 
may allow space surveillance data and analysis of space surveillance 
data to be provided through a contractor of the Department of Defense.
    ``(i) <<NOTE: Deadline.>> Duration of Pilot Program.--The pilot 
program under this section shall be conducted during the three-year 
period beginning on a date specified by the Secretary of Defense, which 
date shall be not later than 180 days after the date of the enactment of 
this section.''.

    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding after the item relating to section 
2273, as added by section 912(b), the following new item:

``2274. Space surveillance network: pilot program for provision of 
           satellite tracking support to entities outside United States 
           Government.''.

SEC. 914. CONTENT OF BIENNIAL GLOBAL POSITIONING SYSTEM REPORT.

    (a) Revised Content.--Paragraph (1) of section 2281(d) of title 10, 
United States Code, is amended--
            (1) by striking subparagraph (C);
            (2) by redesignating subparagraph (D) as subparagraph (C);
            (3) by redesignating subparagraph (E) as subparagraph (D) 
        and in that subparagraph striking ``Any progress made toward'' 
        and inserting ``Progress and challenges in''; and
            (4) by striking subparagraph (F) and inserting the 
        following:
            ``(E) Progress and challenges in protecting GPS from 
        jamming, disruption, and interference.
            ``(F) Progress and challenges in developing the enhanced 
        Global Positioning System required by section 218(b) of the 
        Strom Thurmond National Defense Authorization Act for Fiscal 
        Year 1999 (Public Law 105-261; 112 Stat. 1951; 10 U.S.C. 2281 
        note).''.

    (b) Conforming Amendment.--Paragraph (2) of such section is amended 
by inserting ``(C),'' after ``under subparagraphs''.

SEC. 915. REPORT ON PROCESSES-RELATED SPACE SYSTEMS.

    Not later <<NOTE: Deadline.>> than March 15, 2004, the Secretary of 
Defense shall submit to the Committees on Armed Services of the Senate 
and House of Representatives a report to provide the--
            (1) the Secretary's assessment of the role of the United 
        States Strategic Command in planning and requirements 
        development for space systems to support the warfighter;
            (2) the Secretary's assessment of the processes by which 
        space systems capabilities are integrated into training and 
        doctrine of the Armed Forces; and
            (3) the Secretary's recommendations for improvements in the 
        processes identified pursuant to paragraphs (1) and (2).

[[Page 117 STAT. 1568]]

        Subtitle C--Department of Defense Intelligence Components

SEC. 921. REDESIGNATION OF NATIONAL IMAGERY AND MAPPING AGENCY AS 
            NATIONAL GEOSPATIAL-INTELLIGENCE AGENCY.

    (a) <<NOTE: 10 USC 441 note.>> Redesignation.--The National Imagery 
and Mapping Agency of the Department of Defense is hereby redesignated 
as the National Geospatial-Intelligence Agency.

    (b) Definition of Geospatial Intelligence.--Section 467 of title 10, 
United States Code, is amended by adding at the end the following new 
paragraph:
            ``(5) The term `geospatial intelligence' means the 
        exploitation and analysis of imagery and geospatial information 
        to describe, assess, and visually depict physical features and 
        geographically referenced activities on the earth. Geospatial 
        intelligence consists of imagery, imagery intelligence, and 
        geospatial information.''.

    (c) Agency Missions.--(1) Section 442(a) of title 10, United States 
Code, is amended--
            (A) in paragraph (1), by inserting ``geospatial intelligence 
        consisting of'' after ``provide''; and
            (B) in paragraph (2), by striking ``Imagery, intelligence, 
        and information'' and inserting ``Geospatial intelligence''.

    (2) Section 110(a) of the National Security Act of 1947 (50 U.S.C. 
404e(a)) is amended by striking ``imagery'' and inserting ``geospatial 
intelligence''.
    (d) Technical and Conforming Amendments to Title 10, United States 
Code.--Title 10, United States Code, is amended as follows:
            (1) The heading of chapter 22 is amended to read as follows:

        ``CHAPTER 22--NATIONAL GEOSPATIAL-INTELLIGENCE AGENCY''.

            (2) Chapter 22 is amended--
                    (A) <<NOTE: 10 USC 441-444, 451-457, 461, 462.>> by 
                striking ``National Imagery and Mapping Agency'' each 
                place it appears (other than in section 461(b)) and 
                inserting ``National Geospatial-Intelligence Agency'';
                    (B) in section 453(b), by striking ``NIMA'' in 
                paragraphs (1) and (2) and inserting ``NGA''; and
                    (C) in section 461(b)--
                          (i) by striking ``The National Imagery and 
                      Mapping Agency'' and inserting ``The Director of 
                      the National Geospatial-Intelligence Agency''; and
                          (ii) by striking ``on the day before'' and all 
                      that follows through the period and inserting ``on 
                      September 30, 1996.''.
            (3) Section 193 is amended--
                    (A) by striking ``National Imagery and Mapping 
                Agency'' in subsections (d)(1), (d)(2), (e), and (f)(4) 
                and inserting ``National Geospatial-Intelligence 
                Agency'';
                    (B) in the heading for subsection (d), by striking 
                ``National Imagery and Mapping Agency'' and inserting 
                ``National Geospatial-Intelligence Agency''; and
                    (C) in the heading for subsection (e), by striking 
                ``NIMA'' and inserting ``NGA''.

[[Page 117 STAT. 1569]]

            (4) Section 201 is amended by striking ``National Imagery 
        and Mapping Agency'' in subsections (b)(2)(C) and (c)(2)(C) and 
        inserting ``National Geospatial-Intelligence Agency''.
            (5)(A) Section 424 is amended by striking ``National Imagery 
        and Mapping Agency'' in subsection (b)(3) and inserting 
        ``National Geospatial-Intelligence Agency''.
            (B)(i) The heading of such section is amended to read as 
        follows:

``Sec. 424. Disclosure of organizational and personnel information: 
                        exemption for specified intelligence agencies''.

            (ii) The item relating to that section in the table of 
        sections at the beginning of subchapter I of chapter 21 is 
        amended to read as follows:

``424. Disclosure of organizational and personnel information: exemption 
           for specified intelligence agencies.''.

            (6) Section 425(a) is amended by adding at the end the 
        following new paragraph:
            ``(5) The words `National Geospatial-Intelligence Agency', 
        the initials `NGA,' or the seal of the National Geospatial-
        Intelligence Agency.''.
            (7) Section 1614(2)(C) is amended by striking ``National 
        Imagery and Mapping Agency'' and inserting ``National 
        Geospatial-Intelligence Agency''.
            (8) The tables of chapters at the beginning of subtitle A, 
        and at the beginning of part I of subtitle A, are each amended 
        by striking ``Imagery and Mapping'' in the item relating to 
        chapter 22 and inserting ``Geospatial-Intelligence''.

    (e) Conforming Amendments to National Security Act of 1947.--The 
National Security Act of 1947 is amended as follows:
            (1) Section 3 (50 U.S.C. 401a) is amended by striking 
        ``National Imagery and Mapping Agency'' in paragraph (4)(E) and 
        inserting ``National Geospatial-Intelligence Agency''.
            (2) Section 105 (50 U.S.C. 403-5) is amended by striking 
        ``National Imagery and Mapping Agency'' in subsections (b)(2) 
        and (d)(3) and inserting ``National Geospatial-Intelligence 
        Agency''.
            (3) Section 105A (50 U.S.C. 403-5a) is amended by striking 
        ``National Imagery and Mapping Agency'' in subsection (b)(1)(C) 
        and inserting ``National Geospatial-Intelligence Agency''.
            (4) Section 105C (50 U.S.C. 403-5c) is amended--
                    (A) by striking ``National Imagery and Mapping 
                Agency'' each place it appears and inserting ``National 
                Geospatial-Intelligence Agency'';
                    (B) by striking ``NIMA'' each place it appears and 
                inserting ``NGA''; and
                    (C) by striking ``NIMA's'' in subsection 
                (a)(6)(B)(iv)(II) and inserting ``NGA's''.
            (5) Section 106 (50 U.S.C. 403-6) is amended by striking 
        ``National Imagery and Mapping Agency'' in subsection (a)(2)(C) 
        and inserting ``National Geospatial-Intelligence Agency''.
            (6) Section 110 (50 U.S.C. 404e) is amended--
                    (A) by striking ``National Imagery and Mapping 
                Agency'' in subsections (a), (b), and (c) and inserting 
                ``National Geospatial-Intelligence Agency''; and

[[Page 117 STAT. 1570]]

                    (B) by striking ``national imagery and mapping 
                agency'' in the section heading and inserting ``national 
                geospatial-intelligence agency''.
            (7) The item relating to section 110 in the table of 
        contents in the first section is amended to read as follows:

``Sec. 110. National mission of National Geospatial-Intelligence 
           Agency.''.

    (f) Cross Reference Correction.--Section 442(d) of title 10, United 
States Code, is amended by striking ``section 120(a) of the National 
Security Act of 1947'' and inserting ``section 110(a) of the National 
Security Act of 1947 (50 U.S.C. 404e(a))''.
    (g) <<NOTE: 10 USC 441 note.>> References.--Any reference to the 
National Imagery and Mapping Agency in any law, regulation, map, 
document, record, or other paper of the United States shall be 
considered to be a reference to the National Geospatial-Intelligence 
Agency.

SEC. 922. PROTECTION OF OPERATIONAL FILES OF THE NATIONAL SECURITY 
            AGENCY.

    (a) Protection of Operational Files of NSA.--Title VII of the 
National Security Act of 1947 (50 U.S.C. 431 et seq.) is amended by 
              adding at the end the following new section:

    ``Sec. 704. <<NOTE: 50 USC 432b.>> (a) Exemption of Certain 
Operational Files From Search, Review, Publication, or Disclosure.--The 
Director of the National Security Agency, in coordination with the 
Director of Central Intelligence, may exempt operational files of the 
National Security Agency from the provisions of section 552 of title 5, 
United States Code, which require publication, disclosure, search, or 
review in connection therewith.

    ``(b) Operational Files Defined.--(1) In this section, the term 
`operational files' means--
            ``(A) files of the Signals Intelligence Directorate of the 
        National Security Agency (and any successor organization of that 
        directorate) that document the means by which foreign 
        intelligence or counterintelligence is collected through 
        technical systems; and
            ``(B) files of the Research Associate Directorate of the 
        National Security Agency (and any successor organization of that 
        directorate) that document the means by which foreign 
        intelligence or counterintelligence is collected through 
        scientific and technical systems.

    ``(2) Files that are the sole repository of disseminated 
intelligence, and files that have been accessioned into the National 
Security Agency Archives (or any successor organization) are not 
operational files.
    ``(c) Search and Review for Information.--Notwithstanding subsection 
(a), exempted operational files shall continue to be subject to search 
and review for information concerning any of the following:
            ``(1) United States citizens or aliens lawfully admitted for 
        permanent residence who have requested information on themselves 
        pursuant to the provisions of section 552 or 552a of title 5, 
        United States Code.
            ``(2) Any special activity the existence of which is not 
        exempt from disclosure under the provisions of section 552 of 
        title 5, United States Code.

[[Page 117 STAT. 1571]]

            ``(3) The specific subject matter of an investigation by any 
        of the following for any impropriety, or violation of law, 
        Executive order, or Presidential directive, in the conduct of an 
        intelligence activity:
                    ``(A) The Committee on Armed Services and the 
                Permanent Select Committee on Intelligence of the House 
                of Representatives.
                    ``(B) The Committee on Armed Services and the Select 
                Committee on Intelligence of the Senate.
                    ``(C) The Intelligence Oversight Board.
                    ``(D) The Department of Justice.
                    ``(E) The Office of General Counsel of the National 
                Security Agency.
                    ``(F) The Office of the Inspector General of the 
                Department of Defense.
                    ``(G) The Office of the Director of the National 
                Security Agency.

    ``(d) Information Derived or Disseminated from Exempted Operational 
Files.--(1) Files that are not exempted under subsection (a) that 
contain information derived or disseminated from exempted operational 
files shall be subject to search and review.
    ``(2) The inclusion of information from exempted operational files 
in files that are not exempted under subsection (a) shall not affect the 
exemption under subsection (a) of the originating operational files from 
search, review, publication, or disclosure.
    ``(3) The declassification of some of the information contained in 
exempted operational files shall not affect the status of the 
operational file as being exempt from search, review, publication, or 
disclosure.
    ``(4) Records from exempted operational files that have been 
disseminated to and referenced in files that are not exempted under 
subsection (a) and that have been returned to exempted operational files 
for sole retention shall be subject to search and review.
    ``(e) Supercedure of Other Laws.--The provisions of subsection (a) 
may not be superseded except by a provision of law that is enacted after 
the date of the enactment of this section and that specifically cites 
and repeals or modifies such provisions.
    ``(f) Allegation; Improper Withholding of Records; Judicial 
Review.--(1) Except as provided in paragraph (2), whenever any person 
who has requested agency records under section 552 of title 5, United 
States Code, alleges that the National Security Agency has withheld 
records improperly because of failure to comply with any provision of 
this section, judicial review shall be available under the terms set 
forth in section 552(a)(4)(B) of title 5, United States Code.
    ``(2) Judicial review shall not be available in the manner provided 
for under paragraph (1) as follows:
            ``(A) In any case in which information specifically 
        authorized under criteria established by an Executive order to 
        be kept secret in the interests of national defense or foreign 
        relations is filed with, or produced for, the court by the 
        National Security Agency, such information shall be examined ex 
        parte, in camera by the court.
            ``(B) The court shall determine, to the fullest extent 
        practicable, the issues of fact based on sworn written 
        submissions of the parties.

[[Page 117 STAT. 1572]]

            ``(C) When a complainant alleges that requested records are 
        improperly withheld because of improper placement solely in 
        exempted operational files, the complainant shall support such 
        allegation with a sworn written submission based upon personal 
        knowledge or otherwise admissible evidence.
            ``(D)(i) When a complainant alleges that requested records 
        were improperly withheld because of improper exemption of 
        operational files, the National Security Agency shall meet its 
        burden under section 552(a)(4)(B) of title 5, United States 
        Code, by demonstrating to the court by sworn written submission 
        that exempted operational files likely to contain responsible 
        records currently perform the functions set forth in subsection 
        (b).
            ``(ii) The court may not order the National Security Agency 
        to review the content of any exempted operational file or files 
        in order to make the demonstration required under clause (i), 
        unless the complainant disputes the National Security Agency's 
        showing with a sworn written submission based on personal 
        knowledge or otherwise admissible evidence.
            ``(E) In proceedings under subparagraphs (C) and (D), the 
        parties may not obtain discovery pursuant to rules 26 through 36 
        of the Federal Rules of Civil Procedure, except that requests 
        for admissions may be made pursuant to rules 26 and 36.
            ``(F) If the court finds under this subsection that the 
        National Security Agency has improperly withheld requested 
        records because of failure to comply with any provision of this 
        subsection, the court shall order the Agency to search and 
        review the appropriate exempted operational file or files for 
        the requested records and make such records, or portions 
        thereof, available in accordance with the provisions of section 
        552 of title 5, United States Code, and such order shall be the 
        exclusive remedy for failure to comply with this section (other 
        than subsection (g)).
            ``(G) If at any time following the filing of a complaint 
        pursuant to this paragraph the National Security Agency agrees 
        to search the appropriate exempted operational file or files for 
        the requested records, the court shall dismiss the claim based 
        upon such complaint.
            ``(H) Any information filed with, or produced for the court 
        pursuant to subparagraphs (A) and (D) shall be coordinated with 
        the Director of Central Intelligence before submission to the 
        court.

    ``(g) Decennial Review of Exempted Operational Files.--(1) Not less 
than once every 10 years, the Director of the National Security Agency 
and the Director of Central Intelligence shall review the exemptions in 
force under subsection (a) to determine whether such exemptions may be 
removed from a category of exempted files or any portion thereof. The 
Director of Central Intelligence must approve any determination to 
remove such exemptions.
    ``(2) The review required by paragraph (1) shall include 
consideration of the historical value or other public interest in the 
subject matter of a particular category of files or portions thereof and 
the potential for declassifying a significant part of the information 
contained therein.
    ``(3) A complainant that alleges that the National Security Agency 
has improperly withheld records because of failure to comply

[[Page 117 STAT. 1573]]

with this subsection may seek judicial review in the district court of 
the United States of the district in which any of the parties reside, or 
in the District of Columbia. In such a proceeding, the court's review 
shall be limited to determining the following:
            ``(A) Whether the National Security Agency has conducted the 
        review required by paragraph (1) before the expiration of the 
        10-year period beginning on the date of the enactment of this 
        section or before the expiration of the 10-year period beginning 
        on the date of the most recent review.
            ``(B) Whether the National Security Agency, in fact, 
        considered the criteria set forth in paragraph (2) in conducting 
        the required review.''.

    (b) Consolidation of Current Provisions on Protection of Operational 
Files of CIA.--Title VII of such Act is further amended--
            (1) in section 701(b) (50 U.S.C. 431(b)), by striking ``For 
        purposes of this title'' and inserting ``In this section,''; and
            (2) in section 702 (50 U.S.C. 432)--
                    (A) by striking the section heading;
                    (B) by redesignating the text of that section as 
                subsection (g) of section 701 and redesignating 
                subsections (a), (b), and (c) thereof as paragraphs (1), 
                (2), and (3), respectively;
                    (C) by inserting ``Decennial Review of Exempted 
                Operational Files.--'' after the subsection designation 
                (as designated by subparagraph (B));
                    (D) in paragraph (1) (as redesignated by 
                subparagraph (B)), by striking ``of section 701 of this 
                Act'';
                    (E) in paragraph (2) (as redesignated by 
                subparagraph (B)), by striking ``of subsection (a) of 
                this section'' and inserting ``paragraph (1)''; and
                    (F) in paragraph (3) (as redesignated by 
                subparagraph (B))--
                          (i) by striking ``with this section'' in the 
                      first sentence and inserting ``with this 
                      subsection''; and
                          (ii) by striking ``to determining'' in the 
                      second sentence and all that follows and inserting 
                      ``to determining the following:
            ``(A) Whether the Central Intelligence Agency has conducted 
        the review required by paragraph (1) before October 15, 1994, or 
        before the expiration of the 10-year period beginning on the 
        date of the most recent review.
            ``(B) Whether the Central Intelligence Agency, in fact, 
        considered the criteria set forth in paragraph (2) in conducting 
        the required review.''.

    (c) Consolidation <<NOTE: 50 USC 403-5c, 403-5e, 432, 432a.>>  of 
Current Provisions on Protection of Operational Files of Certain Other 
Intelligence Agencies.--The National Security Act of 1947 (50 U.S.C. 401 
et seq.) is further amended--
            (1) by transferring section 105C (50 U.S.C. 403-5c), as 
        amended by section 921(e)(4), and section 105D (50 U.S.C. 403-
        5e) to title VII of that Act and inserting them after section 
        701, as amended by subsection (b); and
            (2) by redesignating those sections, as so transferred, as 
        sections 702 and 703, respectively.

    (d) Clerical Amendments.--The National Security Act of 1947 is 
further amended as follows:

[[Page 117 STAT. 1574]]

            (1)(A) The heading for title VII is amended to read as 
        follows:

             ``TITLE VII--PROTECTION OF OPERATIONAL FILES''.

            (B) <<NOTE: 50 USC 431. ``operational files of the central 
        intelligence agency''.>> The heading for section 701 is amended 
                               to read as follows:

            (C) The heading for section 702, <<NOTE: 50 USC 
        432. ``operational files of the national geospatial-intelligence 
        agency''.>> as transferred and redesignated by subsection (c), 
                         is amended to read as follows:

            (D) The heading for section 703, <<NOTE: 50 USC 432a.>> as 
        transferred and redesignated by subsection (c), is amended by 
        striking the first two words.
            (2) The table of contents in the first section of the 
        National Security Act of 1947 is amended--
                    (A) by striking the items relating to sections 105C 
                and 105D; and
                    (B) by striking the items relating to title VII and 
                sections 701 and 702 and inserting the following new 
                items:

              ``Title VII--Protection of Operational Files

``Sec. 701. Operational files of the Central Intelligence Agency.
``Sec. 702. Operational files of the National Geospatial-Intelligence 
           Agency.
``Sec. 703. Operational files of the National Reconnaissance Office.
``Sec. 704. Operational files of the National Security Agency.''.

SEC. 923. INTEGRATION OF DEFENSE INTELLIGENCE, SURVEILLANCE, AND 
            RECONNAISSANCE CAPABILITIES.

    (a) <<NOTE: 10 USC 426 note.>> Findings.--Congress makes the 
following findings:
            (1) As part of transformation efforts within the Department 
        of Defense, each of the Armed Forces is developing intelligence, 
        surveillance, and reconnaissance capabilities that best support 
        future war fighting as envisioned by the leadership of the 
        military department concerned.
            (2) Concurrently, intelligence agencies of the Department of 
        Defense outside the military departments are developing 
        transformation roadmaps to best support the future 
        decisionmaking and war fighting needs of their principal 
        customers, but are not always closely coordinating those efforts 
        with the intelligence, surveillance, and reconnaissance 
        development efforts of the military departments.
            (3) A senior official of each military department has been 
        designated as the integrator of intelligence, surveillance, and 
        reconnaissance for each of the Armed Forces in such military 
        department, but there is not currently a well-defined forum 
        through which the integrators of intelligence, surveillance, and 
        reconnaissance capabilities for each of the Armed Forces can 
        routinely interact with each other and with senior 
        representatives of Department of Defense intelligence agencies, 
        as well as with other members of the intelligence community, to 
        ensure unity of effort and to preclude unnecessary duplication 
        of effort.

[[Page 117 STAT. 1575]]

            (4) The current funding structure of a National Foreign 
        Intelligence Program (NFIP), Joint Military Intelligence Program 
        (JMIP), and Tactical Intelligence and Related Activities Program 
        (TIARA) may not be the best approach for supporting the 
        development of an intelligence, surveillance, and reconnaissance 
        structure that is integrated to meet the national security 
        requirements of the United States in the 21st century.
            (5) The position of Under Secretary of Defense for 
        Intelligence was established in 2002 by Public Law 107-314 in 
        order to facilitate resolution of the challenges to achieving an 
        integrated intelligence, surveillance, and reconnaissance 
        structure in the Department of Defense to meet such 21st century 
        requirements.

    (b) <<NOTE: 10 USC 426 note.>> Goal.--It shall be a goal of the 
Department of Defense to fully integrate the intelligence, surveillance, 
and reconnaissance capabilities and coordinate the developmental 
activities of the military departments, intelligence agencies of the 
Department of Defense, and relevant combatant commands as those 
departments, agencies, and commands transform their intelligence, 
surveillance, and reconnaissance systems to meet current and future 
needs.

    (c) ISR Integration Requirements.--(1) Subchapter I of chapter 21 of 
title 10, United States Code, is amended by adding at the end the 
following new section:

``Sec. 426. Integration of Department of Defense intelligence, 
                        surveillance, and reconnaissance capabilities

    ``(a) ISR Integration Council.--(1) The Under Secretary of Defense 
for Intelligence shall establish an Intelligence, Surveillance, and 
Reconnaissance Integration Council--
            ``(A) to assist the Under Secretary with respect to matters 
        relating to the integration of intelligence, surveillance, and 
        reconnaissance capabilities, and coordination of related 
        developmental activities, of the military departments, 
        intelligence agencies of the Department of Defense, and relevant 
        combatant commands; and
            ``(B) otherwise to provide a means to facilitate the 
        integration of such capabilities and the coordiation of such 
        developmental activities.

    ``(2) The Council shall be composed of--
            ``(A) the senior intelligence officers of the armed forces 
        and the United States Special Operations Command;
            ``(B) the Director of Operations of the Joint Staff; and
            ``(C) the directors of the intelligence agencies of the 
        Department of Defense.

    ``(3) The Under Secretary of Defense for Intelligence shall invite 
the participation of the Director of Central Intelligence (or that 
Director's representative) in the proceedings of the Council.
    ``(b) ISR Integration Roadmap.--(1) The Under Secretary of Defense 
for Intelligence shall develop a comprehensive plan, to be known as the 
`Defense Intelligence, Surveillance, and Reconnaissance Integration 
Roadmap', to guide the development and integration of the Department of 
Defense intelligence, surveillance, and reconnaissance capabilities for 
the 15-year period of fiscal years 2004 through 2018.

[[Page 117 STAT. 1576]]

    ``(2) The Under Secretary shall develop the Defense Intelligence, 
Surveillance, and Reconnaissance Integration Roadmap in consultation 
with the Intelligence, Surveillance, and Reconnaissance Integration 
Council and the Director of Central Intelligence.''.
    (2) The table of sections at the beginning of such subchapter is 
amended by adding at the end the following new item:

``426. Integration of Department of Defense intelligence, surveillance, 
           and reconnaissance capabilities.''.

    (d) Report.--(1) Not <<NOTE: Deadline.>>  later than September 30, 
2004, the Under Secretary of Defense for Intelligence shall submit to 
the committees of Congress specified in paragraph (2) a report on the 
Defense Intelligence, Surveillance, and Reconnaissance Integration 
Roadmap developed under subsection (b) of section 426 of title 10, 
United States Code, as added by subsection (c). The report shall include 
the following matters:
            (A) The fundamental goals established in the roadmap.
            (B) An overview of the intelligence, surveillance, and 
        reconnaissance integration activities of the military 
        departments and the intelligence agencies of the Department of 
        Defense.
            (C) An investment strategy for achieving--
                    (i) an integration of Department of Defense 
                intelligence, surveillance, and reconnaissance 
                capabilities that ensures sustainment of needed tactical 
                and operational efforts; and
                    (ii) efficient investment in new intelligence, 
                surveillance, and reconnaissance capabilities.
            (D) A discussion of how intelligence gathered and analyzed 
        by the Department of Defense can enhance the role of the 
        Department of Defense in fulfilling its homeland security 
        responsibilities.
            (E) A discussion of how counterintelligence activities of 
        the Armed Forces and the Department of Defense intelligence 
        agencies can be better integrated.
            (F) Recommendations on how annual funding authorizations and 
        appropriations can be optimally structured to best support the 
        development of a fully integrated Department of Defense 
        intelligence, surveillance, and reconnaissance architecture.

    (2) The committees of Congress referred to in paragraph (1) are as 
follows:
            (A) The Committee on Armed Services, the Committee on 
        Appropriations, and the Select Committee on Intelligence of the 
        Senate.
            (B) The Committee on Armed Services, the Committee on 
        Appropriations, and the Permanent Select Committee on 
        Intelligence of the House of Representatives.

SEC. 924. <<NOTE: 10 USC 2430 note.>> MANAGEMENT OF NATIONAL SECURITY 
            AGENCY MODERNIZATION PROGRAM.

    (a) Management of Acquisition Programs Through USD (AT&L).--The 
Secretary of Defense shall direct that, effective as of the date of the 
enactment of this Act, acquisitions under the National Security Agency 
Modernization Program shall be directed and managed by the Under 
Secretary of Defense for Acquisition, Technology, and Logistics.
    (b) Applicability of Major Defense Acquisition Program 
Authorities.--(1) Each project designated as a major defense

[[Page 117 STAT. 1577]]

acquisition program under paragraph (2) shall be managed under the laws, 
policies, and procedures that are applicable to major defense 
acquisition programs (as defined in section 2430 of title 10, United 
States Code).
    (2) The Secretary of Defense (acting through the Under Secretary of 
Defense for Acquisition, Technology, and Logistics) shall designate 
those projects under the National Security Agency Modernization Program 
that are to be managed as major defense acquisition programs.
    (c) Milestone Decision Authority.--(1) The authority to make a 
decision that a program is authorized to proceed from one milestone 
stage into another (referred to as the milestone decision authority) may 
only be exercised by the Under Secretary of Defense for Acquisition, 
Technology, and Logistics for the following:
            (A) Each project of the National Security Agency 
        Modernization Program that is to be managed as a major defense 
        acquisition program, as designated under subsection (b).
            (B) Each major system under the National Security Agency 
        Modernization Program.

    (2) <<NOTE: Termination date.>> The limitation in paragraph (1) 
shall terminate on, and the Under Secretary may delegate the milestone 
decision authority referred to in paragraph (1) to the Director of the 
National Security Agency at any time after, the date that is the later 
of--
            (A) September 30, 2005, or
            (B) the date on which the Under Secretary submits to the 
        appropriate committees of Congress a notification described in 
        paragraph (3).

    (3) A notification described in this paragraph is a notification by 
the Under Secretary of the Under Secretary's intention to delegate the 
milestone decision authority referred to in paragraph (1) to the 
Director of the National Security Agency, together with a detailed 
discussion of the justification for that delegation. Such a notification 
may not be submitted until--
            (A) the Under Secretary has determined (after consultation 
        with the Under Secretary of Defense for Intelligence and the 
        Deputy Director of Central Intelligence for Community 
        Management) that the Director has implemented acquisition 
        management policies, procedures, and practices that are 
        sufficient to ensure that acquisitions by the National Security 
        Agency are conducted in a manner consistent with sound, 
        efficient acquisition practices;
            (B) the Under Secretary has consulted with the Under 
        Secretary of Defense for Intelligence and the Deputy Director of 
        Central Intelligence for Community Management on the delegation 
        of such milestone decision authority to the Director; and
            (C) the Secretary of Defense has approved the delegation of 
        such milestone decision authority to the Director.

    (d) Projects Comprising Program.--The National Security Agency 
Modernization Program consists of the following projects of the National 
Security Agency:
            (1) The Trailblazer project.
            (2) The Groundbreaker project.
            (3) Each cryptological mission management project.
            (4) Each other project of that Agency that--

[[Page 117 STAT. 1578]]

                    (A) meets either of the dollar thresholds in effect 
                under paragraph (2) of section 2430(a) of title 10, 
                United States Code; and
                    (B) is determined by the Under Secretary of Defense 
                for Acquisition, Technology, and Logistics as being a 
                major project that is within, or properly should be 
                within, the National Security Agency Modernization 
                Project.

    (e) Definitions.--In this section:
            (1) Major system.--The term ``major system'' has the meaning 
        given that term in section 2302(5) of title 10, United States 
        Code.
            (2) Appropriate committees of congress.--The term 
        ``appropriate committees of Congress'' means the following:
                    (A) The Committee on Armed Services and the Select 
                Committee on Intelligence of the Senate.
                    (B) The Committee on Armed Services and the 
                Permanent Select Committee on Intelligence of the House 
                of Representatives.

SEC. 925. MODIFICATION OF OBLIGATED SERVICE REQUIREMENTS UNDER NATIONAL 
            SECURITY EDUCATION PROGRAM.

    (a) In General.--Section 802(b)(2) of the David L. Boren National 
Security Education Act of 1991 (50 U.S.C. 1902(b)(2)) is amended by 
striking subparagraphs (A) and (B) and inserting the following new 
subparagraphs (A) and (B):
                    ``(A) in the case of a recipient of a scholarship, 
                after the recipient's completion of the study for which 
                scholarship assistance was provided under the program, 
                work in a position in the Department of Defense or other 
                element of the intelligence community that is certified 
                by the Secretary as appropriate to utilize the unique 
                language and region expertise acquired by the recipient 
                pursuant to such study for a period specified by the 
                Secretary, which period shall include one year of 
                service for each year, or portion thereof, for which 
                such scholarship assistance was provided; or
                    ``(B) in the case of a recipient of a fellowship, 
                after the recipient's completion of the study for which 
                the fellowship assistance was provided under the 
                program, work in a position described in subparagraph 
                (A) that is certified by the Secretary as appropriate to 
                utilize the unique language and region expertise 
                acquired by the recipient pursuant to such study for a 
                period specified by the Secretary, which period shall 
                (at the discretion of the Secretary) include not less 
                than one nor more than three years for each year, or 
                portion thereof, for which such fellowship assistance 
                was provided; and''.

    (b) <<NOTE: 50 USC 1902 note.>> Applicability.--(1) The amendment 
made by subsection (a) shall apply with respect to service agreements 
entered into under the David L. Boren National Security Education Act of 
1991 on or after the date of the enactment of this Act.

    (2) The amendment made by subsection (a) shall not affect the force, 
validity, or terms of any service agreement entered into under the David 
L. Boren National Security Education Act of 1991 before the date of the 
enactment of this Act that is in force as of that date.

[[Page 117 STAT. 1579]]

SEC. 926. AUTHORITY TO PROVIDE LIVING QUARTERS FOR CERTAIN STUDENTS IN 
            COOPERATIVE AND SUMMER EDUCATION PROGRAMS OF THE NATIONAL 
            SECURITY AGENCY.

    Section 2195 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(d)(1) The Director of the National Security Agency may provide a 
qualifying employee of a defense laboratory of that Agency with living 
quarters at no charge, or at a rate or charge prescribed by the Director 
by regulation, without regard to section 5911(c) of title 5.
    ``(2) In this subsection, the term `qualifying employee' means a 
student who is employed at the National Security Agency under--
            ``(A) a Student Educational Employment Program of the Agency 
        conducted under this section or any other provision of law; or
            ``(B) a similar cooperative or summer education program of 
        the Agency that meets the criteria for Federal cooperative or 
        summer education programs prescribed by the Office of Personnel 
        Management.''.

SEC. 927. COMMERCIAL IMAGERY INDUSTRIAL BASE.

    (a) Requirement.--Of the total amount authorized to be appropriated 
for fiscal year 2004 for the acquisition, processing, and licensing of 
imagery from commercial sources (including amounts authorized to be 
appropriated under that title for experimentation related to such 
imagery), not less than 90 percent shall be used for the following 
purposes:
            (1) Acquisition of space-based imagery from commercial 
        sources.
            (2) Support for the development of next-generation 
        commercial imagery satellites.
            (3) Support for infrastructure improvements that meet unique 
        requirements related to commercial imagery.

    (b) Waiver.--(1) The Secretary of Defense may waive the requirement 
in subsection (a) if the Secretary determines that the waiver is in the 
national security interest of the United States. Any such waiver shall 
be made in consultation with the Director of Central Intelligence.
    (2) <<NOTE: Reports.>> If the Secretary makes the waiver authorized 
by paragraph (1), the Secretary shall, within 30 days of issuing the 
waiver, submit to the appropriate congressional committees a report that 
includes the following:
            (A) The Secretary's reasons for determining that the waiver 
        is in the national security interest of the United States.
            (B) The Secretary's plan for use of the amount referred to 
        in subsection (a).

    (c) Report on Department of Defense Implementation of President's 
Commercial Remote <<NOTE: Deadline.>> Sensing Policy.--(1) Not later 
than March 1, 2004, the Secretary of Defense shall submit to the 
appropriate congressional committees a report on the actions taken, and 
to be taken, by the Secretary to implement the President's policy issued 
on May 13, 2003, with the title ``U.S. Commercial Remote Sensing Space 
Policy''. The Secretary shall consult with the Director of Central 
Intelligence in preparing the report.

    (2) The report under paragraph (1) shall include an assessment of 
the following matters:

[[Page 117 STAT. 1580]]

            (A) The sufficiency for the sustainment of a viable 
        commercial imagery industrial base in the United States of--
                    (i) the President's policy referred to in paragraph 
                (1);
                    (ii) the amount provided for the Department of 
                Defense for fiscal year 2004 for the acquisition of 
                imagery from commercial sources; and
                    (iii) the amounts scheduled in the future-years 
                defense program (as of the submission of the report) for 
                the acquisition of imagery from commercial sources.
            (B) The extent to which the President's policy referred to 
        in paragraph (1) and Department of Defense programs relating to 
        the procurement of imagery from commercial sources are 
        sufficient to ensure that imagery is available to the Department 
        of Defense from United States commercial sources to meet the 
        needs of the Department of Defense in a timely manner.

    (d) Appropriate Congressional Committees.--For the purposes of this 
section, the term ``appropriate congressional committees'' means--
            (1) the Committee on Armed Services, the Select Committee on 
        Intelligence, and the Committee on Appropriations of the Senate; 
        and
            (2) the Committee on Armed Services, the Permanent Select 
        Committee on Intelligence, and the Committee on Appropriations 
        of the House of Representatives.

                        Subtitle D--Other Matters

SEC. 931. AUTHORITY FOR ASIA-PACIFIC CENTER FOR SECURITY STUDIES TO 
            ACCEPT GIFTS AND DONATIONS.

    (a) Authorized Sources of Gifts and Donations.--Subsection (a) of 
section 2611 of title 10, United States Code, is amended--
            (1) in paragraph (1), by striking ``foreign gifts and 
        donations'' and inserting ``gifts and donations from sources 
        described in paragraph (2)'';
            (2) by redesignating paragraph (2) as paragraph (3); and
            (3) by inserting after paragraph (1) the following new 
        paragraph (2):

    ``(2) The sources from which gifts and donations may be accepted 
under paragraph (1) are the following:
            ``(A) The government of a State or a political subdivision 
        of a State.
            ``(B) The government of a foreign country.
            ``(C) A foundation or other charitable organization, 
        including a foundation or charitable organization that is 
        organized or operates under the laws of a foreign country.
            ``(D) Any source in the private sector of the United States 
        or a foreign country.''.

    (b) Conforming Amendments.--(1) Section 2611 of such title is 
further amended--
            (A) by striking ``Foreign'' in the headings for subsections 
        (a) and (f);
            (B) in subsection (c), by striking ``foreign''; and
            (C) in subsection (f)--
                    (i) by striking ``foreign'' after ``section, a''; 
                and

[[Page 117 STAT. 1581]]

                    (ii) by striking ``from a foreign'' and all that 
                follows through ``country.'' and inserting a period.

    (2) Section 184(b)(4) of such title is amended by striking 
``foreign''.
    (c) Clerical Amendments.--The heading of section 2611 of such title, 
and the item relating to such section in the table of sections at the 
beginning of chapter 155 of such title, are each amended by striking the 
third word after the colon.
    (d) Cross Reference Correction.--Section 2612(a) of such title is 
amended by striking ``2611(f)'' and inserting ``2166(f)(4)''.

SEC. 932. REPEAL OF ROTATING CHAIRMANSHIP OF ECONOMIC ADJUSTMENT 
            COMMITTEE.

    Section 4004(b) of the Defense Economic Adjustment, Diversification, 
Conversion, and Stabilization Act of 1990 (division D of Public Law 101-
510; 10 U.S.C. 2391 note) is amended--
            (1) by striking ``Until October 1, 1997, the'' and inserting 
        ``The''; and
            (2) by striking the second sentence.

SEC. 933. EXTENSION OF CERTAIN AUTHORITIES APPLICABLE TO THE PENTAGON 
            RESERVATION TO INCLUDE A DESIGNATED PENTAGON CONTINUITY-OF-
            GOVERNMENT LOCATION.

    Section 2674 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(g) For purposes of subsections (b), (c), (d), and (e), the terms 
`Pentagon Reservation' and `National Capital Region' shall be treated as 
including the land and physical facilities at the Raven Rock Mountain 
Complex.''.

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. United States contribution to NATO common-funded budgets in 
           fiscal year 2004.
Sec. 1003. Authorization of supplemental appropriations for fiscal year 
           2003.
Sec. 1004. Authorization of supplemental appropriations for fiscal year 
           2004.
Sec. 1005. Reestablishment of authority for short-term leases of real or 
           personal property across fiscal years.
Sec. 1006. Reimbursement rate for certain airlift services provided to 
           Department of State.
Sec. 1007. Limitation on payment of facilities charges assessed by 
           Department of State.
Sec. 1008. Use of the Defense Modernization Account for life cycle cost 
           reduction initiatives.
Sec. 1009. Provisions relating to defense travel cards.

                 Subtitle B--Naval Vessels and Shipyards

Sec. 1011. Repeal of requirement regarding preservation of surge 
           capability for naval surface combatants.
Sec. 1012. Enhancement of authority relating to use for experimental 
           purposes of vessels stricken from Naval Vessel Register.
Sec. 1013. Transfer of vessels stricken from the Naval Vessel Register 
           for use as artificial reefs.
Sec. 1014. Priority for title XI assistance.
Sec. 1015. Support for transfers of decommissioned vessels and shipboard 
           equipment.
Sec. 1016. Advanced shipbuilding enterprise.
Sec. 1017. Report on Navy plans for basing aircraft carriers.
Sec. 1018. Limitation on disposal of obsolete naval vessel.

[[Page 117 STAT. 1582]]

                     Subtitle C--Counterdrug Matters

Sec. 1021. Expansion and extension of authority to provide additional 
           support for counter-drug activities.
Sec. 1022. Authority for joint task forces to provide support to law 
           enforcement agencies conducting counter-terrorism activities.
Sec. 1023. Use of funds for unified counterdrug and counterterrorism 
           campaign in Colombia.
Sec. 1024. Sense of Congress on reconsideration of decision to terminate 
           border and seaport inspection duties of National Guard under 
           National Guard drug interdiction and counter-drug mission.

                           Subtitle D--Reports

Sec. 1031. Repeal and modification of various reporting requirements 
           applicable to the Department of Defense.
Sec. 1032. Plan for prompt global strike capability.
Sec. 1033. Annual report concerning dismantling of strategic nuclear 
           warheads.
Sec. 1034. Report on use of unmanned aerial vehicles for support of 
           homeland security missions.

    Subtitle E--Codifications, Definitions, and Technical Amendments

Sec. 1041. Codification and revision of defense counterintelligence 
           polygraph program authority.
Sec. 1042. General definitions applicable to facilities and operations 
           of Department of Defense.
Sec. 1043. Additional definitions for purposes of title 10, United 
           States Code.
Sec. 1044. Inclusion of annual military construction authorization 
           request in annual defense authorization request.
Sec. 1045. Technical and clerical amendments.

                        Subtitle F--Other Matters

Sec. 1051. Assessment of effects of specified statutory limitations on 
           the granting of security clearances.
Sec. 1052. Acquisition of historical artifacts through exchange of 
           obsolete or surplus property.
Sec. 1053. Conveyance of surplus T-37 aircraft to Air Force Aviation 
           Heritage Foundation, Incorporated.
Sec. 1054. Department of Defense biennial strategic plan for management 
           of electromagnetic spectrum.
Sec. 1055. Revision of Department of Defense directive relating to 
           management and use of radio frequency spectrum.
Sec. 1056. Sense of Congress on deployment of airborne chemical agent 
           monitoring systems at chemical stockpile disposal sites in 
           the United States.
Sec. 1057. Expansion of pre-September 11, 2001, fire grant program of 
           United States Fire Administration.
Sec. 1058. Review and enhancement of existing authorities for using Air 
           Force and Air National Guard Modular Airborne Fire-Fighting 
           Systems and other Department of Defense assets to fight 
           wildfires.

                      Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

    (a) Authority To Transfer Authorizations.--(1) Upon determination by 
the Secretary of Defense that such action is necessary in the national 
interest, the Secretary may transfer amounts of authorizations made 
available to the Department of Defense in this division for fiscal year 
2004 between any such authorizations for that fiscal year (or any 
subdivisions thereof). Amounts of authorizations so transferred shall be 
merged with and be available for the same purposes as the authorization 
to which transferred.
    (2) The total amount of authorizations that the Secretary may 
transfer under the authority of this section may not exceed 
$2,500,000,000.
    (b) Limitations.--The authority provided by this section to transfer 
authorizations--
            (1) may only be used to provide authority for items that 
        have a higher priority than the items from which authority is 
        transferred; and

[[Page 117 STAT. 1583]]

            (2) may not be used to provide authority for an item that 
        has been denied authorization by Congress.

    (c) Effect on Authorization Amounts.--A transfer made from one 
account to another under the authority of this section shall be deemed 
to increase the amount authorized for the account to which the amount is 
transferred by an amount equal to the amount transferred.
    (d) Notice to Congress.--The Secretary shall promptly notify 
Congress of each transfer made under subsection (a).

SEC. 1002. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED BUDGETS IN 
            FISCAL YEAR 2004.

    (a) Fiscal Year 2004 Limitation.--The total amount contributed by 
the Secretary of Defense in fiscal year 2004 for the common-funded 
budgets of NATO may be any amount up to, but not in excess of, the 
amount specified in subsection (b) (rather than the maximum amount that 
would otherwise be applicable to those contributions under the fiscal 
year 1998 baseline limitation).
    (b) Total Amount.--The amount of the limitation applicable under 
subsection (a) is the sum of the following:
            (1) The amounts of unexpended balances, as of the end of 
        fiscal year 2003, of funds appropriated for fiscal years before 
        fiscal year 2004 for payments for those budgets.
            (2) The amount specified in subsection (c)(1).
            (3) The amount specified in subsection (c)(2).
            (4) The total amount of the contributions authorized to be 
        made under section 2501.

    (c) Authorized Amounts.--Amounts authorized to be appropriated by 
titles II and III of this Act are available for contributions for the 
common-funded budgets of NATO as follows:
            (1) Of the amount provided in section 201(1), $853,000 for 
        the Civil Budget.
            (2) Of the amount provided in section 301(1), $207,125,000 
        for the Military Budget.

    (d) Definitions.--For purposes of this section:
            (1) Common-funded budgets of nato.--The term ``common-funded 
        budgets of NATO'' means the Military Budget, the Security 
        Investment Program, and the Civil Budget of the North Atlantic 
        Treaty Organization (and any successor or additional account or 
        program of NATO).
            (2) Fiscal year 1998 baseline limitation.--The term ``fiscal 
        year 1998 baseline limitation'' means the maximum annual amount 
        of Department of Defense contributions for common-funded budgets 
        of NATO that is set forth as the annual limitation in section 
        3(2)(C)(ii) of the resolution of the Senate giving the advice 
        and consent of the Senate to the ratification of the Protocols 
        to the North Atlantic Treaty of 1949 on the Accession of Poland, 
        Hungary, and the Czech Republic (as defined in section 4(7) of 
        that resolution), approved by the Senate on April 30, 1998.

SEC. 1003. AUTHORIZATION OF SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 
            2003.

    (a) DOD and DOE Authorizations.--Amounts authorized to be 
appropriated to the Department of Defense and the Department of Energy 
for fiscal year 2003 in the Bob Stump National Defense Authorization Act 
for Fiscal Year 2003 (Public Law 107-314) are hereby adjusted, with 
respect to any such authorized amount, by

[[Page 117 STAT. 1584]]

the amount by which appropriations pursuant to such authorization are 
increased (by a supplemental appropriation) or decreased (by a 
rescission), or both, or are increased by a transfer of funds, pursuant 
to title I of Public Law 108-11.
    (b) Report on Fiscal Year 2003 Transfers.--Not <<NOTE: Deadline.>>  
later than 30 days after the end of each fiscal quarter for which 
unexpended balances of funds appropriated under title I of Public Law 
108-11 are available for the Department of Defense, the Secretary of 
Defense shall submit to the congressional defense committees a report 
stating, for each transfer of such funds during such fiscal quarter of 
an amount provided for the Department of Defense through a so-called 
``transfer account'', including the Iraqi Freedom Fund or any other 
similar account--
            (1) the amount of the transfer;
            (2) the appropriation account to which the transfer was 
        made; and
            (3) the specific purpose for which the transferred funds 
        were used or are to be used.

SEC. 1004. AUTHORIZATION OF SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 
            2004.

    (a) Department of Defense Authorizations.--Amounts authorized to be 
appropriated to the Department of Defense for fiscal year 2004 in this 
Act are hereby increased, with respect to any such amount, by the amount 
by which the corresponding appropriation account of the Department of 
Defense for fiscal year 2004 is increased by a supplemental 
appropriation, or by a transfer of funds, pursuant to title I of the 
Emergency Supplemental Appropriations Act for Defense and for the 
Reconstruction of Iraq and Afghanistan, 2004.
    (b) Designation as Emergency.--Amounts by which authorizations of 
appropriations are increased in accordance with subsection (a) are 
designated as emergency requirements pursuant to section 502 of House 
Concurrent Resolution 95 of the 108th Congress.

SEC. 1005. REESTABLISHMENT OF AUTHORITY FOR SHORT-TERM LEASES OF REAL OR 
            PERSONAL PROPERTY ACROSS FISCAL YEARS.

    (a) Reestablishment of Authority.--Subsection (a) of section 2410a 
of title 10, United States Code, is amended--
            (1) by inserting ``(1)'' before ``The Secretary of 
        Defense'';
            (2) by striking ``for procurement of severable services'' 
        and inserting ``for a purpose described in paragraph (2)''; and
            (3) by adding at the end the following new paragraph:

    ``(2) The purpose of a contract described in this paragraph is as 
follows:
            ``(A) The procurement of severable services.
            ``(B) The lease of real or personal property, including the 
        maintenance of such property when contracted for as part of the 
        lease agreement.''.

    (b) Clerical Amendments.--(1) The heading of such section is amended 
to read as follows:

[[Page 117 STAT. 1585]]

``Sec. 2410a. Contracts for periods crossing fiscal years: severable 
                        service contracts; leases of real or personal 
                        property''.

    (2) The item relating to such section in the table of sections at 
the beginning of chapter 141 of such title is amended to read as 
follows:

``2410a. Contracts for periods crossing fiscal years: severable service 
           contracts; leases of real or personal property.''.

    (c) <<NOTE: 10 USC 2410a note.>> Effective Date.--The amendments 
made by this section shall not apply to funds appropriated for a fiscal 
year before fiscal year 2004.

SEC. 1006. REIMBURSEMENT RATE FOR CERTAIN AIRLIFT SERVICES PROVIDED TO 
            DEPARTMENT OF STATE.

    (a) Authority.--Subsection (a) of section 2642 of title 10, United 
States Code, is amended--
            (1) by striking ``(a) Authority'' and all that follows 
        through ``the Department of Defense'' the second place it 
        appears and inserting the following:

    ``(a) Authority.--The Secretary of Defense may authorize the use of 
the Department of Defense reimbursement rate for military airlift 
services provided by a component of the Department of Defense as 
follows:
            ``(1) For military airlift services provided''; and
            (2) by adding at the end the following new paragraph:
            ``(2) For military airlift services provided to the 
        Department of State for the transportation of armored motor 
        vehicles to a foreign country to meet requirements of the 
        Department of State for armored motor vehicles associated with 
        the overseas travel of the Secretary of State in that 
        country.''.

    (b) Clerical Amendments.--(1) The heading for such section is 
amended to read as follows:

``Sec. 2642. Airlift services provided to certain other agencies: use of 
                        Department of Defense reimbursement rate''.

    (2) The item relating to such section in the table of sections at 
the beginning of chapter 157 of such title is amended to read as 
follows:

``2642. Airlift services provided to certain other agencies: use of 
           Department of Defense reimbursement rate.''.

SEC. 1007. <<NOTE: 10 USC 2241 note.>> LIMITATION ON PAYMENT OF 
            FACILITIES CHARGES ASSESSED BY DEPARTMENT OF STATE.

    (a) Costs of Goods and Services Provided to Department of State.--
Funds appropriated for the Department of Defense may be transferred to 
the Department of State as remittance for a fee charged to the 
Department of Defense by the Department of State for any year for the 
maintenance, upgrade, or construction of United States diplomatic 
facilities only to the extent that the amount charged (when added to 
other amounts previously so charged for that fiscal year) exceeds the 
total amount of the unreimbursed costs incurred by the Department of 
Defense during that year in providing goods and services to the 
Department of State.
    (b) Effective Date.--Subsection (a) shall take effect as of October 
1, 2003.

[[Page 117 STAT. 1586]]

SEC. 1008. USE OF THE DEFENSE MODERNIZATION ACCOUNT FOR LIFE CYCLE COST 
            REDUCTION INITIATIVES.

    (a) Funds Available for Defense Modernization Account.--Section 2216 
of title 10, United States Code, is amended--
            (1) by striking subsection (c);
            (2) by redesignating subsection (b) as subsection (c); and
            (3) by inserting after subsection (a) the following new 
        subsection (b):

    ``(b) Funds Available for Account.--The Defense Modernization 
Account shall consist of the following:
            ``(1) Amounts appropriated to the Defense Modernization 
        Account for the costs of commencing projects described in 
        subsection (d)(1), and amounts reimbursed to the Defense 
        Modernization Account under subsections (c)(1)(B)(iii) out of 
        savings derived from such projects.
            ``(2) Amounts transferred to the Defense Modernization 
        Account under subsection (c).''.

    (b) Start-Up Funding.--Subsection (d) of such section is amended--
            (1) by striking ``available from the Defense Modernization 
        Account pursuant to subsection (f) or (g)'' and inserting ``in 
        the Defense Modernization Account'';
            (2) by redesignating paragraphs (1) and (2) as paragraphs 
        (2) and (3), respectively; and
            (3) by inserting after ``purposes:'' the following new 
        paragraph (1):
            ``(1) For paying the costs of commencing any project that, 
        in accordance with criteria prescribed by the Secretary of 
        Defense, is undertaken by the Secretary of a military department 
        or the head of a Defense Agency or other element of the 
        Department of Defense to reduce the life cycle cost of a new or 
        existing system.''.

    (c) Reimbursement of Account Out of Savings.--(1) Paragraph (1)(B) 
of subsection (c) of such section, as redesignated by subsection (a)(2), 
is amended by adding at the end the following new clause:
            ``(iii) Unexpired funds in appropriations accounts that are 
        available for procurement or operation and maintenance of a 
        system, if and to the extent that savings are achieved for such 
        accounts through reductions in life cycle costs of such system 
        that result from one or more projects undertaken with respect to 
        such systems with funds made available from the Defense 
        Modernization Account under subsection (b)(1).''.

    (2) Paragraph (2) of such subsection is amended by inserting ``, 
other than funds referred to in subparagraph (B)(iii) of such 
paragraph,'' after ``Funds referred to in paragraph (1)''.
    (d) Regulations.--Subsection (h) of such section is amended--
            (1) by inserting ``(1)'' after ``Comptroller.--''; and
            (2) by adding at the end the following new paragraph (2):

    ``(2) The regulations prescribed under paragraph (1) shall, at a 
minimum, provide for--
            ``(A) the submission of proposals by the Secretaries 
        concerned or heads of Defense Agencies or other elements of the 
        Department of Defense to the Comptroller for the use of Defense

[[Page 117 STAT. 1587]]

        Modernization Account funds for purposes set forth in subsection 
        (d);
            ``(B) the use of a competitive process for the evaluation of 
        such proposals and the selection of programs, projects, and 
        activities to be funded out of the Defense Modernization Account 
        from among those proposed for such funding; and
            ``(C) the calculation of--
                    ``(i) the savings to be derived from projects 
                described in subsection (d)(1) that are to be funded out 
                of the Defense Modernization Account; and
                    ``(ii) the amounts to be reimbursed to the Defense 
                Modernization Account out of such savings pursuant to 
                subsection (c)(1)(B)(iii).''.

    (e) Annual Report.--Subsection (i) of such section is amended--
            (1) by striking ``Quarterly Reports.--(1) 
        Not <<NOTE: Deadline.>>  later than 15 days after the end of 
        each calendar quarter,'' and inserting ``Annual Report.--(1) Not 
        later than 15 days after the end of each fiscal year,''; and
            (2) in paragraph (1), by striking ``quarter'' in 
        subparagraphs (A), (B), and (C), and inserting ``fiscal year''.

    (f) Codification and Extension of Expiration of Authority.--(1) Such 
section is further amended by adding at the end the following new 
subsection:
    ``(k) Expiration of Authority and Account.--(1) The authority under 
subsection (c) to transfer funds into the Defense Modernization Account 
terminates at the close of September 30, 2006.
    ``(2) Three years after the termination date specified in paragraph 
(1), the Defense Modernization Account shall be closed and any remaining 
balance in the account shall be canceled and thereafter shall not be 
available for any purpose.''.
    (2) Subsection (c) of section 912 of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 
410; 10 U.S.C. 2216 note) is repealed.

SEC. 1009. PROVISIONS RELATING TO DEFENSE TRAVEL CARDS.

    (a) Mandatory Disbursement of Travel Allowances Directly to Travel 
Card Creditors.--Section 2784a(a) of title 10, United States Code, is 
amended--
            (1) in paragraph (1), by striking ``The Secretary of Defense 
        may require'' and inserting ``The Secretary of Defense shall 
        require'';
            (2) by redesignating paragraph (2) as paragraph (3); and
            (3) by inserting after paragraph (1) the following new 
        paragraph (2):

    ``(2) The Secretary of Defense may waive the requirement for a 
direct payment to a travel care issuer under paragraph (1) in any case 
the Secretary determines appropriate.''.
    (b) Determinations of Creditworthiness for Issuance of Defense 
Travel Card.--Section 2784a of title 10, United States Code, is 
amended--
            (1) by redesignating subsections (d) and (e) as subsections 
        (f) and (g), respectively; and
            (2) by inserting after subsection (c) the following new 
        subsection (d):

[[Page 117 STAT. 1588]]

    ``(d) Determinations of Creditworthiness for Issuance of Defense 
Travel Card.--(1) The Secretary of Defense shall evaluate the 
creditworthiness of an employee of the Department of Defense or a member 
of armed forces before issuing a Defense travel card to such an employee 
or member. The evaluation may include an examination of the individual's 
credit history in available credit records.
    ``(2) An individual may not be issued a Defense travel card if the 
individual is found not creditworthy as a result of the evaluation 
required under paragraph (1).''.
    (c) Disciplinary actions and assessing penalties for misuse of 
defense travel cards.--
            (1) Requirement for regulations.--Section 2784a of title 10, 
        United States Code, is further amended by inserting after 
        subsection (d) (as added by subsection (b)) the following new 
        subsection (e):

    ``(e) Regulations on Disciplinary Action.--(1) The Secretary of 
Defense shall prescribe regulations for making determinations regarding 
the taking of disciplinary action, including assessment of penalties, 
against Department of Defense personnel for improper, fraudulent, or 
abusive use of Defense travel cards by such personnel.
    ``(2) The regulations prescribed under paragraph (1) shall--
            ``(A) provide for appropriate adverse personnel actions or 
        other punishment to be imposed in cases in which employees of 
        the Department of Defense violate such regulations or are 
        negligent or engage in misuse, abuse, or fraud with respect to a 
        Defense travel card, including removal in appropriate cases; and
            ``(B) provide that a violation of such regulations by a 
        person subject to chapter 47 of this title (the Uniform Code of 
        Military Justice) is punishable as a violation of section 892 of 
        this title (article 92 of the Uniform Code of Military 
        Justice).''.
            (2) <<NOTE: Deadline.>> Report.--Not later than February 1, 
        2004, the Secretary of Defense shall submit to the Committees on 
        Armed Services of the Senate and the House of Representatives a 
        report on the regulations prescribed under section 2784a(e) of 
        title 10, United States Code, as added by paragraph (1). The 
        report shall include the following:
                    (A) The regulations.
                    (B) A discussion of the implementation of the 
                regulations.
                    (C) A discussion of any additional administrative 
                action, or any recommended legislation, that the 
                Secretary considers necessary to effectively take 
                disciplinary action against and penalize Department of 
                Defense personnel for improper, fraudulent, or abusive 
                use of Defense travel cards by such personnel.
            (3) Defense Travel Card Defined.--In this subsection, the 
        term ``Defense travel card'' has the meaning given such term in 
        section 2784a(f)(1) of title 10, United States Code (as 
        redesignated by subsection (b)).

[[Page 117 STAT. 1589]]

                 Subtitle B--Naval Vessels and Shipyards

SEC. 1011. REPEAL OF REQUIREMENT REGARDING PRESERVATION OF SURGE 
            CAPABILITY FOR NAVAL SURFACE COMBATANTS.

    (a) Repeal.--Section 7296 of title 10, United States Code, is 
amended by striking subsection (b).
    (b) Clerical Amendments.--Such section is further amended--
            (1) by striking ``(3) Any notification under paragraph 
        (1)(A)'' and inserting ``(b) Content of Notification.--Any 
        notification under subsection (a)(1)(A)'';
            (2) by redesignating subparagraphs (A), (B), and (C) of 
        subsection (b) (as redesignated by paragraph (1)) as paragraphs 
        (1), (2), and (3), respectively; and
            (3) by striking ``subparagraph (B)'' in subsection (b)(3) 
        (as redesignated by paragraphs (1) and (2)) and inserting 
        ``paragraph (2)''.

SEC. 1012. ENHANCEMENT OF AUTHORITY RELATING TO USE FOR EXPERIMENTAL 
            PURPOSES OF VESSELS STRICKEN FROM NAVAL VESSEL REGISTER.

    (a) Environmental Remediation.--Paragraph (1) of subsection (b) of 
section 7306a of title 10, United States Code, is amended--
            (1) by inserting ``and Environmental Remediation of'' in the 
        subsection heading after ``Stripping''; and
            (2) by inserting before the period at the end the following: 
        ``and such environmental remediation of the vessel as is 
        required for the use of the vessel for experimental purposes''.

    (b) Sale of Material and Equipment Stripped From Vessel.--Subsection 
(b) of such section is further amended--
            (1) by redesignating paragraph (2) as paragraph (3);
            (2) by inserting after paragraph (1) the following new 
        paragraph (2):

    ``(2) Material and equipment stripped from a vessel under paragraph 
(1) may be sold by the contractor or by a sales agent approved by the 
Secretary.''; and
            (3) in paragraph (3), as redesignated by paragraph (1), by 
        striking ``scrapping services'' and all that follows through the 
        end of such subsection and inserting ``services needed for such 
        stripping and for environmental remediation required for the use 
        of the vessel for experimental purposes. Amounts received in 
        excess of amounts needed for reimbursement of those costs shall 
        be deposited into the account from which the stripping and 
        environmental remediation expenses were incurred and shall be 
        available for stripping and environmental remediation of other 
        vessels to be used for experimental purposes.''.

    (c) Clarification of Covered Experimental Purposes.--Such section is 
further amended by adding at the end the following new subsection:
    ``(c) Use for Experimental Purposes Defined.--In this section, the 
term `use for experimental purposes', with respect to a vessel, includes 
use of the vessel in a Navy sink exercise or for target purposes.''.

[[Page 117 STAT. 1590]]

SEC. 1013. TRANSFER OF VESSELS STRICKEN FROM THE NAVAL VESSEL REGISTER 
            FOR USE AS ARTIFICIAL REEFS.

    (a) Authority To Make Transfer.--Chapter 633 of title 10, United 
States Code, is amended by inserting after section 7306a the following 
new section:

``Sec. 7306b. Vessels stricken from Naval Vessel Register: transfer by 
                        gift or otherwise for use as artificial reefs

    ``(a) Authority To Make Transfer.--The Secretary of the Navy may 
transfer, by gift or otherwise, any vessel stricken from the Naval 
Vessel Register to any State, Commonwealth, or possession of the United 
States, or any municipal corporation or political subdivision thereof, 
for use as provided in subsection (b).
    ``(b) Vessel To Be Used as Artificial Reef.--An agreement for the 
transfer of a vessel under subsection (a) shall require that--
            ``(1) the recipient use, site, construct, monitor, and 
        manage the vessel only as an artificial reef in accordance with 
        the requirements of the National Fishing Enhancement Act of 1984 
        (33 U.S.C. 2101 et seq.), except that the recipient may use the 
        artificial reef to enhance diving opportunities if that use does 
        not have an adverse effect on fishery resources (as that term is 
        defined in section 2(14) of the Magnuson-Stevens Fishery 
        Conservation and Management Act (16 U.S.C. 1802(14)); and
            ``(2) the recipient obtain, and bear all responsibility for 
        complying with, applicable Federal, State, interstate, and local 
        permits for using, siting, constructing, monitoring, and 
        managing the vessel as an artificial reef.

    ``(c) Preparation of Vessel for Use as Artificial Reef.--The 
Secretary shall ensure that the preparation of a vessel transferred 
under subsection (a) for use as an artificial reef is conducted in 
accordance with--
            ``(1) the environmental best management practices developed 
        pursuant to section 3504(b) of the Bob Stump National Defense 
        Authorization Act for Fiscal Year 2003 (Public Law 107-314; 16 
        U.S.C. 1220 note); and
            ``(2) any applicable environmental laws.

    ``(d) Cost Sharing.--The Secretary may share with the recipient of a 
vessel transferred under subsection (a) any costs associated with 
transferring the vessel under that subsection, including costs of the 
preparation of the vessel under subsection (c).
    ``(e) No Limitation on Number of Vessels Transferable to Particular 
Recipient.--A State, Commonwealth, or possession of the United States, 
or any municipal corporation or political subdivision thereof, may be 
the recipient of more than one vessel transferred under subsection (a).
    ``(f) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with a transfer 
authorized by subsection (a) as the Secretary considers appropriate.
    ``(g) Construction.--Nothing in this section shall be construed to 
establish a preference for the use as artificial reefs of vessels 
stricken from the Naval Vessel Register in lieu of other authorized uses 
of such vessels, including the domestic scrapping of such

[[Page 117 STAT. 1591]]

vessels, or other disposals of such vessels, under this chapter or other 
applicable authority.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
7306a the following new item:

``7306b. Vessels stricken from Naval Vessel Register: transfer by gift 
           or otherwise for use as artificial reefs.''.

SEC. 1014. PRIORITY FOR TITLE XI ASSISTANCE.

    (a) In General.--Section 1103 of the Merchant Marine Act, 1936 (46 
U.S.C. App. 1273) is amended--
            (1) in subsection (i) (as added by section 3544 of this Act) 
        by striking ``Priority''and inserting ``Priority for National 
        Defense Tank Vessels''; and
            (2) by adding at the end the following:

    ``(j) Priority for Other Vessels Suitable for Service as a Naval 
Auxiliary.--In guaranteeing and entering commitments to guarantee under 
this section, the Secretary shall, after applying subsection (i), give 
priority to a guarantee or commitment for a vessel that is otherwise 
eligible for a guarantee under this section and that the Secretary of 
Defense determines--
            ``(1) is suitable for service as a naval auxiliary in time 
        of war or national emergency; and
            ``(2) meets a shortfall in sealift capacity or 
        capability.''.

    (b) Report.--Within 180 days after the date of the enactment of this 
Act, the Secretary of Transportation and the Secretary of Defense shall 
transmit a report to the Senate Committee on Armed Services, the Senate 
Committee on Commerce, Science, and Transportation, and the House of 
Representatives Committee on Armed Services that--
            (1) sets forth the criteria to be used by the Secretary of 
        Defense in making, for purposes of section 1103(j) of the 
        Merchant Marine Act, 1936 (46 U.S.C. App. 1273(j)), as amended 
        by this section, the determinations described in paragraphs (1) 
        and (2) of that section; and
            (2) describes the procedure that the Secretary of Defense 
        will follow--
                    (A) in reviewing applications for which priority 
                treatment is sought under section 1103(j) of that Act; 
                and
                    (B) in reporting to the Secretary of Transportation 
                with respect to such applications.

SEC. 1015. SUPPORT FOR TRANSFERS OF DECOMMISSIONED VESSELS AND SHIPBOARD 
            EQUIPMENT.

    (a) In General.--Chapter 633 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 7316. Support for transfers of decommissioned vessels and 
                        shipboard equipment

    ``(a) Authority To Provide Assistance.--The Secretary of the Navy 
may provide an entity described in subsection (b) with assistance in 
support of a transfer of a vessel or shipboard equipment described in 
such subsection that is being executed under section 2572, 7306, 7307, 
or 7545 of this title, or under any other authority.
    ``(b) Covered Vessels and Equipment.--The authority under this 
section applies--

[[Page 117 STAT. 1592]]

            ``(1) in the case of a decommissioned vessel that--
                    ``(A) is owned and maintained by the Navy, is 
                located at a Navy facility, and is not in active use; 
                and
                    ``(B) is being transferred to an entity designated 
                by the Secretary of the Navy or by law to receive 
                transfer of the vessel; and
            ``(2) in the case of any shipboard equipment that--
                    ``(A) is on a vessel described in paragraph (1)(A); 
                and
                    ``(B) is being transferred to an entity designated 
                by the Secretary of the Navy or by law to receive 
                transfer of the equipment.

    ``(c) Reimbursement.--The Secretary may require a recipient of 
assistance under subsection (a) to reimburse the Navy for amounts 
expended by the Navy in providing the assistance.
    ``(d) Deposit of Funds Received.--Funds received in a fiscal year 
under subsection (c) shall be credited to the appropriation available 
for such fiscal year for operation and maintenance for the office of the 
Navy managing inactive ships, shall be merged with other sums in the 
appropriation that are available for such office, and shall be available 
for the same purposes and period as the sums with which merged.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``7316. Support for transfers of decommissioned vessels and shipboard 
           equipment.''.

SEC. 1016. ADVANCED SHIPBUILDING ENTERPRISE.

    (a) Findings.--Congress makes the following findings:
            (1) The President's budget for fiscal year 2004, as 
        submitted to Congress, includes $10,300,000 for the Advanced 
        Shipbuilding Enterprise of the National Shipbuilding Research 
        Program.
            (2) The Advanced Shipbuilding Enterprise is an innovative 
        program to encourage greater efficiency among shipyards in the 
        defense industrial base.
            (3) The leaders of the Nation's shipbuilding industry have 
        embraced the Advanced Shipbuilding Enterprise as a method of 
        exploring and collaborating on innovation in shipbuilding and 
        ship repair that collectively benefits all manufacturers in the 
        industry.

    (b) Sense of the Congress.--It is the sense of the Congress that--
            (1) the Congress strongly supports the innovative Advanced 
        Shipbuilding Enterprise of the National Shipbuilding Research 
        Program that has yielded new processes and techniques to reduce 
        the cost of building and repairing ships in the United States;
            (2) the Congress is concerned that the future-years defense 
        program submitted to Congress for fiscal year 2004 does not 
        reflect any funding for the Advanced Shipbuilding Enterprise 
        after fiscal year 2004; and
            (3) the Secretary of Defense and the Secretary of the Navy 
        should continue funding the Advanced Shipbuilding Enterprise at 
        a sustaining level through the future-years defense program to 
        support subsequent rounds of research that reduce the cost of 
        designing, building, and repairing ships.

[[Page 117 STAT. 1593]]

SEC. 1017. REPORT ON NAVY PLANS FOR BASING AIRCRAFT CARRIERS.

    (a) Findings.--Congress finds that--
            (1) the Committee on Armed Services of the Senate, in its 
        report to accompany the bill S. 2514 of the 107th Congress 
        (Senate Report 107-151, filed May 15, 2002), at page 442 of that 
        report directed that the Chief of Naval Operations submit to the 
        congressional defense committees, not later than 180 days after 
        enactment of the defense authorization Act for fiscal year 2003, 
        a report on plans of the Navy for basing aircraft carriers 
        through 2015;
            (2) the Bob Stump National Defense Authorization Act for 
        Fiscal Year 2003 (Public Law 107-314) was enacted on December 2, 
        2002; and
            (3) as of October 24, 2003, the Chief of Naval Operations 
        has not submitted the report referred to in paragraph (1).

    (b) Report on Aircraft Carrier Basing <<NOTE: Deadline.>> Plans.--
Not later than 120 days after the date of the enactment of this Act, the 
Secretary of Defense shall submit to the congressional defense 
committees a report on plans of the Navy for basing aircraft carriers 
through 2020.

SEC. 1018. LIMITATION ON DISPOSAL OF OBSOLETE NAVAL VESSEL.

    The Secretary of the Navy may not dispose of the decommissioned 
destroyer ex-Forrest Sherman (DD-931) before October 1, 2004, to an 
entity that is not a nonprofit organization unless the Secretary first 
determines that there is no nonprofit organization that meets the 
criteria for donation of that vessel under section 7306(a)(3) of title 
10, United States Code.

                     Subtitle C--Counterdrug Matters

SEC. 1021. EXPANSION AND EXTENSION OF AUTHORITY TO PROVIDE ADDITIONAL 
            SUPPORT FOR COUNTER-DRUG ACTIVITIES.

    (a) General Extension of Authority.--Subsection (a) of section 1033 
of the National Defense Authorization Act for Fiscal Year 1998 (Public 
Law 105-85; 111 Stat. 1881) is amended--
            (1) by inserting ``(1)'' before ``Subject to'';
            (2) by striking ``either or both'' and inserting ``any''; 
        and
            (3) by inserting after the second sentence the following new 
        paragraph:

    ``(2) <<NOTE: Expiration date.>> The authority to provide support to 
a government under this section expires September 30, 2006.''.

    (b) Additional Governments Eligible To Receive Support.--Subsection 
(b) of such section is amended by adding at the end the following new 
paragraphs:
            ``(3) The Government of Afghanistan.
            ``(4) The Government of Bolivia.
            ``(5) The Government of Ecuador.
            ``(6) The Government of Pakistan.
            ``(7) The Government of Tajikistan.
            ``(8) The Government of Turkmenistan.
            ``(9) The Government of Uzbekistan.''.

    (c) Types of Support.--Subsection (c) of such section is amended--
            (1) in paragraph (2), by striking ``riverine''; and
            (2) in paragraph (3), by inserting ``or upgrade'' after 
        ``maintenance and repair''.

[[Page 117 STAT. 1594]]

    (d) Maximum Annual Amount of Support.--Subsection (e)(2) of such 
section is amended by striking ``$20,000,000 during any of the fiscal 
years 1999 through 2006'' and inserting ``$20,000,000 during any of the 
fiscal years 1999 through 2003, or $40,000,000 during any of the fiscal 
years 2004 through 2006''.
    (e) Counter-Drug Plan.--(1) Subsection (h) of such section is 
amended--
            (A) in the subsection caption, by striking ``Riverine'';
            (B) in the matter preceding paragraph (1)--
                    (i) by striking ``fiscal year 1998'' and inserting 
                ``fiscal year 2004''; and
                    (ii) by striking ``riverine''; and
            (C) by striking ``riverine'' each place it appears in 
        paragraphs (2), (7), (8), and (9).

    (2) Subsection (f)(2)(A) of such section is amended by striking 
``riverine''.
    (f) Clerical and Conforming Amendments.--(1) Subsection (b) of such 
section is further amended--
            (A) in paragraph (1), by striking ``, for fiscal years 1998 
        through 2002''; and
            (B) in paragraph (2), by striking ``, for fiscal years 1998 
        through 2006''.

    (2) The heading for such section is amended by striking ``peru and 
colombia'' and inserting ``other countries''.

SEC. 1022. <<NOTE: 10 USC 371 note.>> AUTHORITY FOR JOINT TASK FORCES TO 
            PROVIDE SUPPORT TO LAW ENFORCEMENT AGENCIES CONDUCTING 
            COUNTER-TERRORISM ACTIVITIES.

    (a) Authority.--A joint task force of the Department of Defense that 
provides support to law enforcement agencies conducting counter-drug 
activities may also provide, subject to all applicable laws and 
regulations, support to law enforcement agencies conducting counter-
terrorism activities.
    (b) Conditions.--Any support provided under subsection (a) may only 
be provided in the geographic area of responsibility of the joint task 
force.

SEC. 1023. USE OF FUNDS FOR UNIFIED COUNTERDRUG AND COUNTERTERRORISM 
            CAMPAIGN IN COLOMBIA.

    (a) Authority.--(1) In fiscal year 2004, funds available to the 
Department of Defense to provide assistance to the Government of 
Colombia may be used by the Secretary of Defense to support a unified 
campaign by the Government of Colombia against narcotics trafficking and 
against activities by organizations designated as terrorist 
organizations, such as the Revolutionary Armed Forces of Colombia 
(FARC), the National Liberation Army (ELN), and the United Self-Defense 
Forces of Colombia (AUC).
    (2) The authority to provide assistance for a campaign under this 
subsection includes authority to take actions to protect human health 
and welfare in emergency circumstances, including the undertaking of 
rescue operations.
    (b) Applicability of Certain Laws and Limitations.--The use of funds 
pursuant to the authority in subsection (a) shall be subject to the 
following:
            (1) Sections 556, 567, and 568 of the Foreign Operations, 
        Export Financing, and Related Programs Appropriations Act, 2002 
        (Public Law 107-115; 115 Stat. 2160, 2165, and 2166).

[[Page 117 STAT. 1595]]

            (2) Section 8077 of the Department of Defense Appropriations 
        Act, 2004 (Public Law 108-87; 115 Stat. 2267).
            (3) The numerical limitations on the number of United States 
        military personnel and United States individual civilian 
        contractors in section 3204(b)(1) of the Emergency Supplemental 
        Act, 2000 (division B of Public Law 106-246; 114 Stat. 575), as 
        amended by the Foreign Operations, Export Financing, and Related 
        Programs Appropriations Act, 2002 (Public Law 107-115; 115 Stat. 
        2131).

    (c) Limitation on Participation of United States Personnel.--No 
United States Armed Forces personnel, United States civilian employees, 
or United States civilian contractor personnel employed by the United 
States may participate in any combat operation in connection with 
assistance using funds pursuant to the authority in subsection (a), 
except for the purpose of acting in self defense or of rescuing any 
United States citizen, including any United States Armed Forces 
personnel, United States civilian employee, or civilian contractor 
employed by the United States.
    (d) Relation to Other Authority.--The authority provided by 
subsection (a) is in addition to any other authority in law to provide 
assistance to the Government of Colombia.

SEC. 1024. SENSE OF CONGRESS ON RECONSIDERATION OF DECISION TO TERMINATE 
            BORDER AND SEAPORT INSPECTION DUTIES OF NATIONAL GUARD UNDER 
            NATIONAL GUARD DRUG INTERDICTION AND COUNTER-DRUG MISSION.

    (a) Findings.--Congress makes the following findings:
            (1) The counter-drug inspection mission of the National 
        Guard is highly important in preventing the entry of illegal 
        narcotics into the United States.
            (2) The expertise of members of the National Guard in 
        conducting vehicle inspections at United States borders and 
        seaports has contributed to the identification and seizure of 
        illegal narcotics being smuggled into the United States.
            (3) The support provided by the National Guard to the United 
        States Customs Service and the Bureau of Border Security of the 
        Department of Homeland Security greatly enhances the capability 
        of these agencies to perform counter-terrorism surveillance and 
        other border protection duties.

    (b) Sense of Congress.--It is the sense of Congress that the 
Secretary of Defense should reconsider the decision of the Department of 
Defense to terminate the border inspection and seaport inspection duties 
of the National Guard as part of the drug interdiction and counter-drug 
mission of the National Guard.

                           Subtitle D--Reports

SEC. 1031. REPEAL AND MODIFICATION OF VARIOUS REPORTING REQUIREMENTS 
            APPLICABLE TO THE DEPARTMENT OF DEFENSE.

    (a) Title 10, United States Code.--Title 10, United States Code, is 
amended as follows:
            (1) Section 117(e) is amended by striking ``each month'' and 
        all that follows through ``subsection (d)'' and inserting ``each 
        quarter submit to the congressional defense committees a report 
        in writing containing the results of the most recent joint 
        readiness review under subsection (d)(1)(A)''.

[[Page 117 STAT. 1596]]

            (2) Section 127(d) is amended to read as follows:

    ``(d) Annual Report.--Not later than December 1 each year, the 
Secretary of Defense shall submit to the congressional defense 
committees a report on expenditures during the preceding fiscal year 
under subsections (a) and (b).''.
            (3) Section 127a is amended by striking subsection (d).
            (4) Section 128 is amended by striking subsection (d).
            (5) Section 226(a) is amended--
                    (A) by striking ``December 15'' and inserting 
                ``January 15''; and
                    (B) by striking ``in the following year'' in 
                paragraph (1) and inserting ``in that year''.
            (6)(A) Section 228 is amended--
                    (i) in subsection (a)--
                          (I) by striking ``Monthly'' in the subsection 
                      heading and inserting ``Quarterly'';
                          (II) by striking ``monthly'' and inserting 
                      ``quarterly''; and
                          (III) by striking ``month'' and inserting 
                      ``fiscal-year quarter''; and
                    (ii) in subsection (c), by striking ``month'' each 
                place it appears and inserting ``quarter''.
            (B)(i) The heading of such section is amended to read as 
        follows:

``Sec. 228. Quarterly reports on allocation of funds within operation 
                        and maintenance budget subactivities''.

            (ii) The item relating to section 228 in the table of 
        sections at the beginning of chapter 9 is amended to read as 
        follows:

``228. Quarterly reports on allocation of funds within operation and 
           maintenance budget subactivities.''.

            (7) Section 437 is amended--
                    (A) by striking the second sentence of subsection 
                (b); and
                    (B) in subsection (c)--
                          (i) by striking ``report)--'' in the matter 
                      preceding paragraph (1) and inserting ``report) 
                      the following:'';
                          (ii) by striking ``a'' in paragraphs (1), (2), 
                      and (3) after the paragraph designation and 
                      inserting ``A'';
                          (iii) by striking the semicolon at the end of 
                      paragraph (1) and inserting a period;
                          (iv) by striking ``; and'' at the end of 
                      paragraph (2) and inserting a period; and
                          (v) by adding at the end the following new 
                      paragraph:
            ``(4) A description of each corporation, partnership, or 
        other legal entity that was established.''.
            (8)(A) Section 520c is amended--
                    (i) by striking subsection (b);
                    (ii) by striking ``(a) Provision of Meals and 
                Refreshments.--''; and
                    (iii) by striking the heading for such section and 
                inserting the following:

[[Page 117 STAT. 1597]]

``Sec. 520c. Recruiting functions: provision of meals and 
                        refreshments''.

            (B) The item relating to such section in the table of 
        sections at the beginning of chapter 31 is amended to read as 
        follows:

``520c. Recruiting functions: provision of meals and refreshments.''.

            (9) Section 1060 is amended by striking subsection (d).
            (10)(A) Section 1130 is amended--
                    (i) in subsection (a), by striking ``and the other 
                determinations necessary to comply with subsection 
                (b)''; and
                    (ii) in subsection (b), by striking ``to the 
                requesting'' and all that follows and inserting ``to the 
                requesting Member of Congress a detailed discussion of 
                the rationale supporting the determination.''.
            (B) The heading for such section, and the item relating to 
        such section in the table of sections at the beginning of 
        chapter 57, are each amended by striking the last two words.
            (11)(A) Section 1563 is amended--
                    (i) in subsection (a), by striking ``and the other 
                determinations necessary to comply with subsection 
                (b)''; and
                    (ii) in subsection (b), by striking ``notice in 
                writing'' and all that follows and inserting ``a 
                detailed discussion of the rationale supporting the 
                determination.''.
            (B) The heading for such section, and the item relating to 
        such section in the table of sections at the beginning of 
        chapter 80, are each amended by striking the last two words.
            (12) Section 2224 is amended by striking subsection (e).
            (13) Section 2255(b) is amended--
                    (A) by striking paragraph (2);
                    (B) by striking ``(1)'' after ``(b) Exception.--'';
                    (C) by redesignating subparagraphs (A) and (B) as 
                paragraphs (1) and (2), respectively; and
                    (D) by redesignating clauses (i), (ii), and (iii) of 
                paragraph (1), as redesignated by subparagraph (C), as 
                subparagraphs (A), (B), and (C), respectively.
            (14) Section 2282 is amended by inserting ``through 2008'' 
        after ``March 1 of each year''.
            (15) Section 2323(i) is amended by striking paragraph (3).
            (16) Section 2327(c)(1) is amended--
                    (A) in subparagraph (A), by striking ``after the 
                date on which such head of an agency submits to Congress 
                a report on the contract'' and inserting ``if in the 
                best interests of the Government'';
                    (B) in subparagraph (B), by striking ``A report 
                under subparagraph (A)'' and inserting ``The Secretary 
                shall maintain records of each contract entered into by 
                reason of subparagraph (A). Such records''; and
                    (C) by striking subparagraph (C).
            (17) Section 2350a is amended by striking subsection (f).
            (18) Section 2350j(e)(2) is amended by inserting before the 
        period the following: ``or, if earlier, the end of the 14-day 
        period beginning on the date on which a copy of that report is 
        provided in an electronic medium pursuant to section 480 of this 
        title''.
            (19) Section 2371(h) is amended by adding at the end the 
        following new paragraph:

    ``(3) No report is required under this subsection for a fiscal year 
after fiscal year 2006.''.

[[Page 117 STAT. 1598]]

            (20) Section 2374a(e) is amended by inserting ``during which 
        one or more prizes are awarded under the program under 
        subsection (a)'' in the first sentence after ``each fiscal 
        year''.
            (21) Section 2410m(c) is amended--
                    (A) by striking ``Reporting Requirement.--Each 
                year'' and inserting ``Annual Report.--Not later than 60 
                days after the end of each fiscal year'';
                    (B) by inserting ``at the end of such fiscal year'' 
                in paragraph (1) before the period;
                    (C) by striking ``during the year preceding the year 
                in which the report is submitted'' in paragraph (2) and 
                inserting ``under this section during that fiscal 
                year'';
                    (D) by striking ``in such preceding year'' in 
                paragraph (3) and inserting ``under this section during 
                that fiscal year''; and
                    (E) by striking ``in such preceding year'' in 
                paragraph (4) and inserting ``under this section during 
                that fiscal year''.
            (22) Section 2457 is amended by striking subsection (d).
            (23) Section 2515(d) is amended--
                    (A) by striking ``Annual'' in the subsection heading 
                and inserting ``Biennial''; and
                    (B) in paragraph (1)--
                          (i) in the first sentence, by striking ``an 
                      annual report'' and inserting ``a biennial 
                      report'';
                          (ii) in the second sentence, by striking 
                      ``each year'' and inserting ``each even-numbered 
                      year''; and
                          (iii) in the third sentence, by striking 
                      ``during the fiscal year'' and inserting ``during 
                      the two fiscal years''.
            (24) Section 2521 is amended by striking subsection (e).
            (25) Section 2541d is amended--
                    (A) by striking subsection (b); and
                    (B) in subsection (a), by striking ``(a)'' and all 
                that follows through ``The Secretary of Defense'' and 
                inserting ``The Secretary of Defense''.
            (26) Section 2645 is amended--
                    (A) in subsection (d)--
                          (i) by striking ``to Congress'' and all that 
                      follows through ``notification of the loss'' in 
                      paragraph (1) and inserting ``to Congress 
                      notification of the loss'';
                          (ii) by striking ``loss; and'' and inserting 
                      ``loss.''; and
                          (iii) by striking paragraph (2); and
                    (B) by striking subsection (g).
            (27) Section 2662 is amended--
                    (A) in subsection (a)--
                          (i) by redesignating paragraphs (1) through 
                      (6) as subparagraphs (A) through (F), 
                      respectively, and by designating the sentences 
                      following subparagraph (F), as so redesignated, as 
                      paragraph (2);
                          (ii) in paragraph (2), as so designated, by 
                      striking ``clause (1) or (2)'' and inserting 
                      ``subparagraph (A) or (B) of paragraph (1)'' and 
                      by striking ``clause (5)'' and inserting 
                      ``subparagraph (E)'';
                          (iii) by inserting ``(1)'' before ``The 
                      Secretary'';

[[Page 117 STAT. 1599]]

                          (iv) by striking ``after the expiration of 30 
                      days'' and all that follows through ``is 
                      submitted'' and inserting ``the Secretary submits 
                      a report, subject to paragraph (3),'';
                          (v) by striking ``$500,000'' each place it 
                      appears and inserting ``$750,000''; and
                          (vi) by adding at the end the following new 
                      paragraphs:

    ``(3) The authority of the Secretary of a military department to 
enter into a transaction described in paragraph (1) commences only 
after--
            ``(A) the end of the 30-day period beginning on the first 
        day of the month with respect to which the report containing the 
        facts concerning such transaction, and all other such proposed 
        transactions for that month, is submitted under paragraph (1); 
        or
            ``(B) the end of the 14-day period beginning on the first 
        day of that month when a copy of the report is provided in an 
        electronic medium pursuant to section 480 of this title on or 
        before the first day of that month.

    ``(4) The report for a month under this subsection may not be 
submitted later than the first day of that month.'';
                    (B) in subsection (b), by striking ``more than'' and 
                all that follows through ``$500,000'' and inserting 
                ``more than $250,000, but not more than $750,000''; and
                    (C) in subsection (e)--
                          (i) by striking ``$500,000'' and inserting 
                      ``$750,000''; and
                          (ii) by striking ``the expiration'' and all 
                      that follows through the period at the end and 
                      inserting the following: ``the end of the 30-day 
                      period beginning on the date on which a report of 
                      the facts concerning the proposed occupancy is 
                      submitted to the congressional committees named in 
                      subsection (a) or, if earlier, the end of the 14-
                      day period beginning on the date on which a copy 
                      of the report is provided in an electronic medium 
                      pursuant to section 480 of this title.''.
            (28) Section 2667a(c)(2) is amended--
                    (A) by striking ``Not later than 45 days before'' 
                and inserting ``Before''; and
                    (B) by adding at the end the following new sentence: 
                ``The Secretary may then enter into the lease only after 
                the end of the 30-day period beginning on the date on 
                which the report is submitted or, if earlier, the end of 
                the 14-day period beginning on the date on which a copy 
                of the report is provided in an electronic medium 
                pursuant to section 480 of this title.''.
            (29) Section 2672a is amended--
                    (A) in subsection (a)(1), by striking ``he or his 
                designee'' and inserting ``the Secretary'';
                    (B) in subsection (b), by striking the last 
                sentence; and
                    (C) by adding at the end the following new 
                subsection:

    ``(c) Not <<NOTE: Deadline.>> later than 10 days after the date on 
which the Secretary of a military department determines to acquire an 
interest in land under the authority of this section, the Secretary 
shall submit

[[Page 117 STAT. 1600]]

to the Committee on Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives written notice containing 
a description of the property and interest to be acquired and the 
reasons for the acquisition.''.
            (30) Section 2676(d) is amended by inserting before the 
        period at the end of the last sentence the following: ``or, if 
        over sooner, a period of 14 days elapses from the date on which 
        a copy of that notification is provided in an electronic medium 
        pursuant to section 480 of this title''.
            (31) Section 2680 is amended by striking subsection (e).
            (32) Section 2688(e) is amended to read as follows:

    ``(e) Quarterly Report.--Not <<NOTE: Deadline.>> later than 30 days 
after the end of each quarter of a fiscal year, the Secretary shall 
submit to the congressional defense committees a report on the 
conveyances made under subsection (a) during such fiscal quarter. The 
report shall include, for each such conveyance, an economic analysis 
(based upon accepted life-cycle costing procedures approved by the 
Secretary of Defense) demonstrating that--
            ``(1) the long-term economic benefit of the conveyance to 
        the United States exceeds the long-term economic cost of the 
        conveyance to the United States; and
            ``(2) the conveyance will reduce the long-term costs of the 
        United States for utility services provided by the utility 
        system concerned.''.
            (33) Section 2696 is amended--
                    (A) in subsection (b)--
                          (i) in paragraph (1), by inserting ``and 
                      Congress'' after ``the Secretary concerned'' the 
                      second place it appears; and
                          (ii) in paragraph (2), by inserting ``and 
                      Congress'' after ``the Secretary concerned'' the 
                      first place it appears;
                    (B) by striking subsection (c); and
                    (C) by striking subsection (d) and inserting the 
                following new subsection (d):

    ``(d) Effect of Submission of Notice.--If the Administrator of 
General Services submits notice under subsection (b)(1) that further 
Federal use of a parcel of real property is requested by a Federal 
agency, the Secretary concerned may not proceed with the conveyance of 
the real property as provided in the provision of law authorizing or 
requiring the conveyance until the end of the 180-day period beginning 
on the date on which the notice is submitted to Congress.''.
            (34) Section 2803(b) is amended by inserting before the 
        period at the end of the last sentence the following: ``or, if 
        earlier, the end of the seven-day period beginning on the date 
        on which a copy of the notification is provided in an electronic 
        medium pursuant to section 480 of this title''.
            (35) Section 2804(b) is amended by inserting before the 
        period at the end of the last sentence the following: ``or, if 
        earlier, the end of the 14-day period beginning on the date on 
        which a copy of the notification is provided in an electronic 
        medium pursuant to section 480 of this title''.
            (36) Section 2805(b)(2) is amended by inserting before the 
        period at the end of the last sentence the following: ``or, if 
        earlier, the end of the 14-day period beginning on the date

[[Page 117 STAT. 1601]]

        on which a copy of the notification is provided in an electronic 
        medium pursuant to section 480 of this title''.
            (37) Section 2807 is amended--
                    (A) in subsection (b)--
                          (i) by striking ``$500,000'' and inserting 
                      ``$1,000,000'';
                          (ii) by striking ``not less than 21 days''; 
                      and
                          (iii) by adding at the end the following new 
                      sentence: ``The Secretary may then obligate funds 
                      for such services only after the end of the 21-day 
                      period beginning on the date on which the 
                      notification is received by the committees or, if 
                      earlier, the end of the 14-day period beginning on 
                      the date on which a copy of the report is provided 
                      in an electronic medium pursuant to section 480 of 
                      this title.''; and
                    (B) in subsection (c)(2), by inserting before the 
                period at the end the following: ``or, if over sooner, a 
                period of 14 days has elapsed from the date on which a 
                copy of the report is provided in an electronic medium 
                pursuant to section 480 of this title''.
            (38) Section 2809(f)(2) is amended--
                    (A) by striking ``calendar''; and
                    (B) by inserting before the period at the end the 
                following: ``or, if over sooner, a period of 14 days has 
                expired following the date on which a copy of the 
                justification and economic analysis are provided in an 
                electronic medium pursuant to section 480 of this 
                title''.
            (39) Section 2812(c)(1)(B) is amended by inserting before 
        the period at the end the following: ``or, if over sooner, a 
        period of 14 days has expired following the date on which a copy 
        of the justification and economic analysis are provided in an 
        electronic medium pursuant to section 480 of this title''.
            (40) Section 2813(c) is amended--
                    (A) by striking ``the end of the 30-day period 
                beginning on the date''; and
                    (B) by adding at the end the following new sentence: 
                ``After the notification is transmitted, the Secretary 
                may then enter into the contract only after the end of 
                the 30-day period beginning on the date on which the 
                notification is received by the committees or, if 
                earlier, the end of the 21-day period beginning on the 
                date on which a copy of the report is provided in an 
                electronic medium pursuant to section 480 of this 
                title.''.
            (41) Section 2825 is amended--
                    (A) in subsection (b)(1)--
                          (i) by striking ``(i)'' in the last sentence; 
                      and
                          (ii) by striking ``, and (ii)'' and all that 
                      follows and inserting a period and the following 
                      new sentence: ``If the Secretary concerned makes a 
                      determination under the preceding sentence with 
                      respect to an improvement, the waiver under that 
                      sentence with respect to that improvement may take 
                      effect only after the Secretary transmits a notice 
                      of the proposed waiver, together with an economic 
                      analysis demonstrating that the improvement will 
                      be cost effective, to the appropriate committees 
                      of Congress and a period of 21 days has elapsed 
                      after the date on which the

[[Page 117 STAT. 1602]]

                      notification is received by those committees or, 
                      if over sooner, a period of 14 days has elapsed 
                      after the date on which a copy of the notice is 
                      provided in an electronic medium pursuant to 
                      section 480 of this title.''; and
                    (B) in subsection (c)(1)(D), by inserting before the 
                period at the end the following: ``or, if over sooner, a 
                period of 14 days elapses after the date on which a copy 
                of the notice is provided in an electronic medium 
                pursuant to section 480 of this title''.
            (42) Section 2827(b)(2) is amended by inserting before the 
        period at the end the following: ``or, if over sooner, a period 
        of 14 days has elapsed after the date on which a copy of the 
        notification is provided in an electronic medium pursuant to 
        section 480 of this title''.
            (43) Section 2836(f)(2) is amended--
                    (A) by striking ``21 calendar days'' and inserting 
                ``21 days''; and
                    (B) by inserting before the period at the end the 
                following: ``or, if over sooner, a period of 14 days has 
                expired following the date on which a copy of the 
                economic analysis is provided in an electronic medium 
                pursuant to section 480 of this title''.
            (44) Section 2837(c)(2) is amended by inserting before the 
        period at the end of the last sentence the following: ``or, if 
        earlier, the end of the 14-day period beginning on the date on 
        which a copy of the report is provided in an electronic medium 
        pursuant to section 480 of this title''.
            (45) Section 2854(b) is amended by inserting before the 
        period at the end of the last sentence the following: ``or, if 
        earlier, the end of the seven-day period beginning on the date 
        on which a copy of the notification is provided in an electronic 
        medium pursuant to section 480 of this title''.
            (46) Section 2854a(c)(2) is amended--
                    (A) by striking ``calendar''; and
                    (B) by inserting before the period at the end the 
                following: ``or, if over sooner, a period of 14 days has 
                elapsed after the date on which a copy of the 
                justification is provided in an electronic medium 
                pursuant to section 480 of this title''.
            (47) Section 2865(e)(2) is amended by inserting before the 
        period at the end of the last sentence the following: ``or, if 
        earlier, the end of the 14-day period beginning on the date on 
        which a copy of the notification is provided in an electronic 
        medium pursuant to section 480 of this title''.
            (48) Section 2866(c)(2) is amended by inserting before the 
        period at the end of the last sentence the following: ``or, if 
        earlier, the end of the 14-day period beginning on the date on 
        which a copy of the notification is provided in an electronic 
        medium pursuant to section 480 of this title''.
            (49) Section 2867(c) is amended by inserting before the 
        period at the end of the last sentence the following: ``or, if 
        earlier, the end of the 14-day period beginning on the date on 
        which a copy of the notification is provided in an electronic 
        medium pursuant to section 480 of this title''.
            (50) Section 2875(e) is amended by inserting before the 
        period at the end the following: ``or, if earlier, the end of

[[Page 117 STAT. 1603]]

        the 14-day period beginning on the date on which a copy of the 
        notice and justification is provided in an electronic medium 
        pursuant to section 480 of this title''.
            (51) Section 2883(f) is amended by inserting before the 
        period at the end the following: ``or, if earlier, the end of 
        the 14-day period beginning on the date on which a copy of the 
        notice and justification is provided in an electronic medium 
        pursuant to section 480 of this title''.
            (52) Section 2902(g) is amended--
                    (A) by striking paragraph (2); and
                    (B) by striking ``(1)'' after ``(g)''.
            (53) Section 4342(h) is amended by striking ``Secretary of 
        the Army'' and inserting ``Superintendent''.
            (54) Section 4357(c) is amended by inserting before the 
        period at the end the following: ``or, if earlier, the 
        expiration of 14 days following the date on which a copy of the 
        report is provided in an electronic medium pursuant to section 
        480 of this title''.
            (55) Section 6954(f) is amended by striking ``Secretary of 
        the Navy'' and inserting ``Superintendent of the Naval 
        Academy''.
            (56) Section 6975(c) is amended by inserting before the 
        period at the end the following: ``or, if earlier, the 
        expiration of 14 days following the date on which a copy of the 
        report is provided in an electronic medium pursuant to section 
        480 of this title''.
            (57) Section 7049(c) is amended--
                    (A) by striking ``Certification'' in the subsection 
                heading and inserting ``Determination''; and
                    (B) by striking ``, and certifies to'' and all that 
                follows through ``House of Representatives,''.
            (58) Section 9342(h) is amended by striking ``Secretary of 
        the Air Force'' and inserting ``Superintendent''.
            (59) Section 9356(c) is amended by inserting before the 
        period at the end the following: ``or, if earlier, the 
        expiration of 14 days following the date on which a copy of the 
        report is provided in an electronic medium pursuant to section 
        480 of this title''.
            (60) Section 9514 is amended--
                    (A) in subsection (c)--
                          (i) by striking ``to Congress'' and all that 
                      follows through ``notification of the loss'' in 
                      paragraph (1) and inserting ``to Congress 
                      notification of the loss'';
                          (ii) by striking ``loss; and'' and inserting 
                      ``loss.''; and
                          (iii) by striking paragraph (2); and
                    (B) by striking subsection (f).
            (61) Section 12302 is amended by striking subsection (d).

    (b) National Defense Authorization Act for Fiscal Year 1991.--
Section 2921(g) of the National Defense Authorization Act for Fiscal 
Year 1991 (Public Law 101-510; 10 U.S.C. 2687 note) is amended--
            (1) in paragraph (1), by striking ``Not less than 30 days 
        before'' and inserting ``Before'';
            (2) in paragraph (2), by striking ``Not less than 30 days 
        before'' and inserting ``Before''; and
            (3) by adding at the end the following new paragraph:

[[Page 117 STAT. 1604]]

    ``(3) When the Secretary submits a notification of a proposed 
agreement under paragraph (1) or (2), the Secretary may then enter into 
the agreement described in the notification only after the end of the 
30-day period beginning on the date on which the notification is 
submitted or, if earlier, the end of the 14-day period beginning on the 
date on which a copy of the notification is provided in an electronic 
medium pursuant to section 480 of title 10, United States Code.''.
    (c) National Defense Authorization Act for Fiscal Years 1992 and 
1993.--The National Defense Authorization Act for Fiscal Years 1992 and 
1993 (Public Law 102-190) is amended as follows:
            (1) Section 734 (10 U.S.C. 1074 note) is amended by striking 
        subsection (c).
            (2) Section 2868(a) (10 U.S.C. 2802 note) is amended by 
        striking ``The Secretary of Defense'' and all that follows 
        through ``is to be authorized'' and <<NOTE: Deadline.>>  
        inserting ``Not later than 30 days after the date on which a 
        decision is made selecting the site or sites for the permanent 
        basing of a new weapon system, the Secretary of Defense shall 
        submit to Congress''.

    (d) National Defense Authorization Act for Fiscal Year 1993.--The 
National Defense Authorization Act for Fiscal Year 1993 (Public Law 102-
484) is amended as follows:
            (1) Section 324 (10 U.S.C. 2701 note) is amended--
                    (A) by striking ``(a) Sense of Congress.--''; and
                    (B) by striking subsection (b).
            (2) Section 1082(b)(1) (10 U.S.C. 113 note) is amended by 
        striking ``the Secretary of Defense--'' and all that follows and 
        inserting ``the Secretary of Defense determines that it is in 
        the national security interests of the United States for the 
        military departments to do so.''.

    (e) National Defense Authorization Act for Fiscal Year 1995.--
Section 721 of the National Defense Authorization Act for Fiscal Year 
1995 (Public Law 103-337; 10 U.S.C. 1074 note) is amended by striking 
subsection (h).
    (f) National Defense Authorization Act for Fiscal Year 1997.--The 
National Defense Authorization Act for Fiscal Year 1997 (Public Law 104-
201) is amended as follows:
            (1) Section 324 (10 U.S.C. 2706 note) is amended by striking 
        subsection (c).
            (2) Section 1065(b) (10 U.S.C. 113 note) is amended--
                    (A) by striking ``(1)'' before ``Notwithstanding''; 
                and
                    (B) by striking paragraph (2).

    (g) Strom Thurmond National Defense Authorization Act for Fiscal 
Year 1999.--The Strom Thurmond National Defense Authorization Act for 
Fiscal Year 1999 (Public Law 105-261) is amended as follows:
            (1) Section 745(e) (10 U.S.C. 1071 note) is amended--
                    (A) by striking ``(1)'' before ``The Secretary of 
                Defense''; and
                    (B) by striking paragraph (2).
            (2) Section 1223 (22 U.S.C. 1928 note) is repealed.

    (h) National Defense Authorization Act for Fiscal Year 2000.--The 
National Defense Authorization Act for Fiscal Year 2000 (Public Law 106-
65) is amended as follows:
            (1) Section 212 (10 U.S.C. 2501 note) is amended by striking 
        subsection (c).

[[Page 117 STAT. 1605]]

            (2) Section 724 (10 U.S.C. 1092 note) is amended by striking 
        subsection (e).
            (3) Section 1039 (10 U.S.C. 113 note) is amended by striking 
        subsection (b).

    (i) Military Construction Appropriations Act, 2001.--Section 125 of 
the Military Construction Appropriations Act, 2001 (division A of Public 
Law 106-246; 114 Stat. 517), is repealed.
    (j) Department of Defense Appropriations Act, 2002.--Section 8009 of 
the Department of Defense Appropriations Act, 2002 (division A of Public 
Law 107-117; 115 Stat. 2249; 10 U.S.C. 401 note), is amended by striking 
``, and these obligations shall be reported to the Congress''.

SEC. 1032. <<NOTE: 10 USC 113 note.>> PLAN FOR PROMPT GLOBAL STRIKE 
            CAPABILITY.

    (a) Integrated Plan for Prompt Global Strike Capability.--
The <<NOTE: Establishment.>>  Secretary of Defense shall establish an 
integrated plan for developing, deploying, and sustaining a prompt 
global strike capability in the Armed Forces. The Secretary shall update 
the plan annually.

    (b) Annual Reports.--(1) Not later than April 1 of each of 2004, 
2005, and 2006, the Secretary shall submit to the congressional defense 
committees a report on the plan established under subsection (a).
    (2) Each report under paragraph (1) shall include the following:
            (A) A description and assessment of the targets against 
        which long-range strike assets might be directed and the 
        conditions under which those assets might be used.
            (B) The role of, and plans for ensuring, sustainment and 
        modernization of current long-range strike assets, including 
        bombers, intercontinental ballistic missiles, and submarine-
        launched ballistic missiles.
            (C) A description of the capabilities desired for advanced 
        long-range strike assets and plans to achieve those 
        capabilities.
            (D) A description of the capabilities desired for advanced 
        conventional munitions and the plans to achieve those 
        capabilities.
            (E) An assessment of advanced nuclear concepts that could 
        contribute to the prompt global strike mission.
            (F) An assessment of the command, control, and 
        communications capabilities necessary to support prompt global 
        strike capabilities.
            (G) An assessment of intelligence, surveillance, and 
        reconnaissance capabilities necessary to support prompt global 
        strike capabilities.
            (H) A description of how prompt global strike capabilities 
        are to be integrated with theater strike capabilities.
            (I) An estimated schedule for achieving the desired prompt 
        global strike capabilities.
            (J) The estimated cost of achieving the desired prompt 
        global strike capabilities.
            (K) A description of ongoing and future studies necessary 
        for updating the plan appropriately.

SEC. 1033. <<NOTE: 22 USC 5959 note.>> ANNUAL REPORT CONCERNING 
            DISMANTLING OF STRATEGIC NUCLEAR WARHEADS.

    (a) Annual Report.--Concurrent with the submission of the 
President's budget request to Congress each year, the Director of 
Central Intelligence shall submit to the committees specified

[[Page 117 STAT. 1606]]

in subsection (e) a report concerning dismantlement of Russian strategic 
nuclear warheads under the Moscow Treaty. Each such report shall discuss 
nuclear weapons dismantled by Russia during the prior fiscal year and 
the Director's projections for nuclear weapons to be dismantled by 
Russia during the current fiscal year and the fiscal year covered by the 
budget.
    (b) Classification.--The annual report under this section shall be 
transmitted in an unclassified form when possible and classified form as 
necessary.
    (c) Termination of Report Requirement.--The requirement to submit an 
annual report under this section terminates when the Moscow Treaty is no 
longer in effect.
    (d) Moscow Treaty Defined.--For purposes of this section, the term 
``Moscow Treaty'' means the Treaty Between the United States of America 
and the Russian Federation on Strategic Offensive Reductions, done at 
Moscow on May 24, 2002.
    (e) Committees Specified.--The committees to which annual reports 
are to be submitted under this section are the following:
            (1) The Committee on Armed Services, the Select Committee on 
        Intelligence, and the Committee on Foreign Relations of the 
        Senate.
            (2) The Committee on Armed Services, the Permanent Select 
        Committee on Intelligence, and the Committee on International 
        Relations of the House of Representatives.

SEC. 1034. REPORT ON USE OF UNMANNED AERIAL VEHICLES FOR SUPPORT OF 
            HOMELAND SECURITY MISSIONS.

    (a) Requirement for <<NOTE: Deadline.>>  Report.--Not later than 
April 1, 2004, the President shall submit to Congress a report on the 
potential uses of unmanned aerial vehicles for support of the 
performance of homeland security missions.

    (b) Content.--The report shall, at a minimum, include the following 
matters:
            (1) An assessment of the potential for using unmanned aerial 
        vehicles for monitoring activities in remote areas along the 
        northern and southern borders of the United States.
            (2) An assessment of the potential for using long-endurance, 
        land-based unmanned aerial vehicles for supporting the Coast 
        Guard in the performance of its--
                    (A) homeland security missions;
                    (B) drug interdiction missions; and
                    (C) other maritime missions along the approximately 
                95,000 miles of inland waterways in the United States.
            (3) An assessment of the potential for using unmanned aerial 
        vehicles for monitoring the safety and integrity of critical 
        infrastructure within the territory of the United States, 
        including the following:
                    (A) Oil and gas pipelines.
                    (B) Long-distance power transmission lines.
                    (C) Hydroelectric and nuclear power plants.
                    (D) Dams and drinking water utilities.
            (4) An assessment of the potential for using unmanned aerial 
        vehicles for monitoring the transportation of hazardous cargo.
            (5) A discussion of the safety issues involved in--
                    (A) the use of unmanned aerial vehicles by agencies 
                other than the Department of Defense; and

[[Page 117 STAT. 1607]]

                    (B) the operation of unmanned aerial vehicles over 
                populated areas of the United States.
            (6) A discussion of--
                    (A) the effects on privacy and civil liberties that 
                could result from the monitoring uses of unmanned aerial 
                vehicles operated over the territory of the United 
                States; and
                    (B) any restrictions on the domestic use of unmanned 
                aerial vehicles that should be imposed, or any other 
                actions that should be taken, to prevent any adverse 
                effect of such a use of unmanned aerial vehicles on 
                privacy or civil liberties.
            (7) A discussion of what, if any, legislation and 
        organizational changes may be necessary to accommodate the use 
        of unmanned aerial vehicles of the Department of Defense in 
        support of the performance of homeland security missions, 
        including any amendment of section 1385 of title 18, United 
        States Code (popularly referred to as the ``Posse Comitatus 
        Act'').
            (8) An evaluation of the capabilities of manufacturers of 
        unmanned aerial vehicles to produce such vehicles at higher 
        rates if necessary to meet any increased requirements for 
        homeland security and homeland defense missions.

    (c) Referral to Committees.--The report under subsection (a) shall--
            (1) upon receipt in the Senate, be referred to the Committee 
        on Armed Services of the Senate and other committees, as 
        appropriate; and
            (2) upon receipt in the House of Representatives, be 
        referred to the Committee on Armed Services of the House of 
        Representatives and other committees, as appropriate.

    Subtitle E--Codifications, Definitions, and Technical Amendments

SEC. 1041. CODIFICATION AND REVISION OF DEFENSE COUNTERINTELLIGENCE 
            POLYGRAPH PROGRAM AUTHORITY.

    (a) Codification.--(1) Chapter 80 of title 10, United States Code, 
is amended by inserting after section 1564 the following new section:

``Sec. 1564a. Counterintelligence polygraph program

    ``(a) Authority for Program.--The Secretary of Defense may carry out 
a program for the administration of counterintelligence polygraph 
examinations to persons described in subsection (b). The program shall 
be based on Department of Defense Directive 5210.48, dated December 24, 
1984.
    ``(b) Persons Covered.--Except as provided in subsection (c), the 
following persons whose duties involve access to information that has 
been classified at the level of top secret or designated as being within 
a special access program under section 4.4(a) of Executive Order 12958 
(or a successor Executive order) are subject to this section:
            ``(1) Military and civilian personnel of the Department of 
        Defense.
            ``(2) Personnel of defense contractors.

[[Page 117 STAT. 1608]]

            ``(3) A person assigned or detailed to the Department of 
        Defense.
            ``(4) An applicant for a position in the Department of 
        Defense.

    ``(c) Exceptions From Coverage for Certain Intelligence Agencies and 
Functions.--This section does not apply to the following persons:
            ``(1) A person assigned or detailed to the Central 
        Intelligence Agency or to an expert or consultant under a 
        contract with the Central Intelligence Agency.
            ``(2) A person who is--
                    ``(A) employed by or assigned or detailed to the 
                National Security Agency;
                    ``(B) an expert or consultant under contract to the 
                National Security Agency;
                    ``(C) an employee of a contractor of the National 
                Security Agency; or
                    ``(D) a person applying for a position in the 
                National Security Agency.
            ``(3) A person assigned to a space where sensitive 
        cryptographic information is produced, processed, or stored.
            ``(4) A person employed by, or assigned or detailed to, an 
        office within the Department of Defense for the collection of 
        specialized national foreign intelligence through reconnaissance 
        programs or a contractor of such an office.

    ``(d) Oversight.--(1) The Secretary shall establish a process to 
monitor responsible and effective application of polygraph examinations 
within the Department of Defense.
    ``(2) The Secretary shall make information on the use of polygraphs 
within the Department of Defense available to the congressional defense 
committees.
    ``(e) Polygraph Research Program.--The Secretary shall carry out a 
continuing research program to support the polygraph examination 
activities of the Department of Defense. The program shall include--
            ``(1) an on-going evaluation of the validity of polygraph 
        techniques used by the Department;
            ``(2) research on polygraph countermeasures and anti-
        countermeasures; and
            ``(3) developmental research on polygraph techniques, 
        instrumentation, and analytic methods.''.

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1564 the 
following new item:

``1564a. Counterintelligence polygraph program.''.

    (b) Conforming Repeal.--Section 1121 of the National Defense 
Authorization Act for Fiscal Years 1988 and 1989 (10 U.S.C. 113 note), 
is repealed.

SEC. 1042. GENERAL DEFINITIONS APPLICABLE TO FACILITIES AND OPERATIONS 
            OF DEPARTMENT OF DEFENSE.

    (a) General Definitions Applicable to Facilities and Operations.--
Section 101 of title 10, United States Code, is amended--
            (1) by redesignating subsections (e) and (f) as subsections 
        (f) and (g), respectively; and

[[Page 117 STAT. 1609]]

            (2) by inserting after subsection (d) the following new 
        subsection (e):

    ``(e) Facilities and Operations.--The following definitions relating 
to facilities and operations apply in this title:
            ``(1) Range.--The term `range', when used in a geographic 
        sense, means a designated land or water area that is set aside, 
        managed, and used for range activities of the Department of 
        Defense. Such term includes the following:
                    ``(A) Firing lines and positions, maneuver areas, 
                firing lanes, test pads, detonation pads, impact areas, 
                electronic scoring sites, buffer zones with restricted 
                access, and exclusionary areas.
                    ``(B) Airspace areas designated for military use in 
                accordance with regulations and procedures prescribed by 
                the Administrator of the Federal Aviation 
                Administration.
            ``(2) Range activities.--The term `range activities' means--
                    ``(A) research, development, testing, and evaluation 
                of military munitions, other ordnance, and weapons 
                systems; and
                    ``(B) the training of members of the armed forces in 
                the use and handling of military munitions, other 
                ordnance, and weapons systems.
            ``(3) Operational range.--The term `operational range' means 
        a range that is under the jurisdiction, custody, or control of 
        the Secretary of Defense and--
                    ``(A) that is used for range activities, or
                    ``(B) although not currently being used for range 
                activities, that is still considered by the Secretary to 
                be a range and has not been put to a new use that is 
                incompatible with range activities.
            ``(4) Military munitions.--(A) The term `military munitions' 
        means all ammunition products and components produced for or 
        used by the armed forces for national defense and security, 
        including ammunition products or components under the control of 
        the Department of Defense, the Coast Guard, the Department of 
        Energy, and the National Guard.
            ``(B) Such term includes the following:
                    ``(i) Confined gaseous, liquid, and solid 
                propellants.
                    ``(ii) Explosives, pyrotechnics, chemical and riot 
                control agents, smokes, and incendiaries, including bulk 
                explosives, and chemical warfare agents.
                    ``(iii) Chemical munitions, rockets, guided and 
                ballistic missiles, bombs, warheads, mortar rounds, 
                artillery ammunition, small arms ammunition, grenades, 
                mines, torpedoes, depth charges, cluster munitions and 
                dispensers, and demolition charges.
                    ``(iv) Devices and components of any item specified 
                in clauses (i) through (iii).
            ``(C) Such term does not include the following:
                    ``(i) Wholly inert items.
                    ``(ii) Improvised explosive devices.
                    ``(iii) Nuclear weapons, nuclear devices, and 
                nuclear components, other than nonnuclear components of 
                nuclear devices that are managed under the nuclear 
                weapons program of the Department of Energy after all 
                required

[[Page 117 STAT. 1610]]

                sanitization operations under the Atomic Energy Act of 
                1954 (42 U.S.C. 2011 et seq.) have been completed.
            ``(5) Unexploded ordnance.--The term `unexploded ordnance' 
        means military munitions that--
                    ``(A) have been primed, fused, armed, or otherwise 
                prepared for action;
                    ``(B) have been fired, dropped, launched, projected, 
                or placed in such a manner as to constitute a hazard to 
                operations, installations, personnel, or material; and
                    ``(C) remain unexploded, whether by malfunction, 
                design, or any other cause.''.

    (b) References to Military Munitions, Etc.--Section 2710(e) of such 
title is amended--
            (1) by striking paragraphs (3), (5), and (9); and
            (2) by redesignating paragraphs (4), (6), (7), (8), and (10) 
        as paragraphs (3), (4), (5), (6), and (7), respectively.

SEC. 1043. ADDITIONAL DEFINITIONS FOR PURPOSES OF TITLE 10, UNITED 
            STATES CODE.

    (a) General Definitions.--Section 101(a) of title 10, United States 
Code, is amended by adding at the end the following new paragraphs:
            ``(16) The term `congressional defense committees' means--
                    ``(A) the Committee on Armed Services and the 
                Committee on Appropriations of the Senate; and
                    ``(B) the Committee on Armed Services and the 
                Committee on Appropriations of the House of 
                Representatives.
            ``(17) The term `base closure law' means the following:
                    ``(A) Section 2687 of this title.
                    ``(B) The Defense Base Closure and Realignment Act 
                of 1990 (part A of title XXIX of Public Law 101-510; 10 
                U.S.C. 2687 note).
                    ``(C) Title II of the Defense Authorization 
                Amendments and Base Closure and Realignment Act (Public 
                Law 100-526; 10 U.S.C. 2687 note).''.

    (b) References to Congressional Defense Committees.--Title 10, 
United States Code, is further amended as follows:
            (1) Section 135(e) is amended--
                    (A) by striking ``(1)'';
                    (B) by striking ``each congressional committee 
                specified in paragraph (2)'' and inserting ``each of the 
                congressional defense committees''; and
                    (C) by striking paragraph (2).
            (2) Section 153(c) is amended--
                    (A) in paragraph (1), by striking ``committees of 
                Congress named in paragraph (2)'' and inserting 
                ``congressional defense committees'';
                    (B) by striking paragraph (2); and
                    (C) by designating the second sentence of paragraph 
                (1) as paragraph (2) and in that paragraph (as so 
                designated) by striking ``The report'' and inserting 
                ``Each report under paragraph (1)''.
            (3) Section 181(d)(2) is amended--
                    (A) by striking ``subsection:'' and all that follows 
                through `` `oversight'' and inserting ``subsection, the 
                term `oversight''; and
                    (B) by striking subparagraph (B).

[[Page 117 STAT. 1611]]

            (4) Section 224 is amended by striking subsection (f).
            (5) Section 228(e) is amended--
                    (A) by striking ``Definitions'' and all that follows 
                through ``(1) The term'' and inserting ``O&M Budget 
                Activity Defined.--In this section, the term''; and
                    (B) by striking paragraph (2).
            (6) Section 229 is amended by striking subsection (f).
            (7) Section 1107(f)(4) is amended by striking subparagraph 
        (C).
            (8) Section 2216(j) is amended by striking paragraph (3).
            (9) Section 2218(l) is amended--
                    (A) by striking paragraph (4); and
                    (B) by redesignating paragraph (5) as paragraph (4).
            (10) Section 2306b(l) is amended--
                    (A) by striking paragraph (9); and
                    (B) by redesignating paragraph (10) as paragraph 
                (9).
            (11) Section 2308(e)(2) is amended--
                    (A) by striking subparagraph (A); and
                    (B) by redesignating subparagraphs (B) and (C) as 
                subparagraphs (A) and (B), respectively.
            (12) Section 2350j is amended--
                    (A) in subsection (e), by striking ``congressional 
                committees specified in subsection (g)'' in paragraphs 
                (1) and (3) and inserting ``congressional defense 
                committees''; and
                    (B) by striking subsection (g).
            (13) Section 2366(e) is amended--
                    (A) by striking paragraph (7); and
                    (B) by redesignating paragraphs (8) and (9) as 
                paragraphs (7) and (8), respectively.
            (14) Section 2399(h) is amended--
                    (A) by striking ``Definitions.--'' and all that 
                follows through ``(1) The term'' and inserting 
                ``Operational Test and Evaluation Defined.--In this 
                section, the term'';
                    (B) by striking paragraph (2);
                    (C) by redesignating subparagraphs (A), (B), and (C) 
                as paragraphs (1), (2), and (3), respectively; and
                    (D) by realigning those paragraphs (as so 
                redesignated) so as to be indented two ems from the left 
                margin.
            (15) Section 2667(h) is amended by striking paragraph (1).
            (16) Section 2801(c)(4) is amended by striking ``the 
        Committee on'' the first place it appears and all that follows 
        through ``House of Representatives'' and inserting ``the 
        congressional defense committees''.

    (c) References to Base Closure Laws.--Title 10, United States Code, 
is further amended as follows:
            (1) Section 2306c(h) is amended by striking ``Additional'' 
        and all that follows through ``(2) The term'' and inserting 
        ``Military Installation Defined.--In this section, the term''.
            (2) Section 2490a(f) is amended--
                    (A) by striking ``Definitions.--'' and all that 
                follows through ``(1) The term'' and inserting 
                ``Nonappropriated Fund Instrumentality Defined.--In this 
                section, the term''; and
                    (B) by striking paragraph (2).

[[Page 117 STAT. 1612]]

            (3) Section 2667(h), as amended by subsection (b)(15), is 
        further amended by striking ``section:'' and all that follows 
        through ``(3) The term'' and inserting ``section, the term''.
            (4) Section 2696(e) is amended--
                    (A) by striking paragraphs (1), (2), (3), and (4) 
                and inserting the following:
            ``(1) A base closure law.''; and
                    (B) by redesignating paragraphs (5) and (6) as 
                paragraphs (2) and (3), respectively.
            (5) Section 2705 is amended by striking subsection (h).
            (6) Section 2871 is amended by striking paragraph (2).

SEC. 1044. INCLUSION OF ANNUAL MILITARY CONSTRUCTION AUTHORIZATION 
            REQUEST IN ANNUAL DEFENSE AUTHORIZATION REQUEST.

    (a) Inclusion of Military Construction Request.--Section 113a(b) of 
title 10, United States Code, is amended--
            (1) by redesignating paragraph (3) as paragraph (4); and
            (2) by inserting after paragraph (2) the following new 
        paragraph (3):
            ``(3) Authority to carry out military construction projects, 
        as required by section 2802 of this title.''.

    (b) Repeal of Separate Transmission of Request.--(1) Section 2859 of 
such title is repealed.
    (2) The table of sections at the beginning of subchapter III of 
chapter 169 of such title is amended by striking the item relating to 
section 2859.

SEC. 1045. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) Title 10, United States Code.--Title 10, United States Code, is 
amended as follows:
            (1) The tables of chapters at the beginning of subtitle A, 
        and at the beginning of part IV of subtitle A, are amended by 
        striking ``2701'' in the item relating to chapter 160 and 
        inserting ``2700''.
            (2) Section 101(a)(9)(D) is amended by striking 
        ``Transportation'' and inserting ``Homeland Security''.
            (3) Section 1115(c)(1)(B) is amended by striking ``and other 
        than members'' and inserting ``(other than members''.
            (4) Section 2002(a)(2) is amended by striking ``Foreign 
        Service Institute'' and inserting ``George P. Schultz National 
        Foreign Affairs Training Center''.
            (5)(A) Section 2248 is repealed.
            (B) The table of sections at the beginning of subchapter I 
        of chapter 134 is amended by striking the item relating to 
        section 2248.
            (6) Section 2432(h)(1) is amended by inserting ``program'' 
        in the first sentence after ``for such''.
            (7) Section 7305(d) is amended by inserting ``such'' before 
        ``title III'' the second place it appears.

    (b) Title 37, United States Code.--Title 37, United States Code, is 
amended as follows:
            (1) Section 323(a) is amended by striking ``1 year'' in 
        paragraphs (1) and (2) and inserting ``one year''.
            (2) Section 402 is amended--
                    (A) in subsection (b)--
                          (i) by striking paragraph (1);

[[Page 117 STAT. 1613]]

                          (ii) by redesignating paragraphs (2), (3), and 
                      (4) as paragraphs (1), (2), and (3), respectively;
                          (iii) in paragraph (1) (as so redesignated), 
                      by striking ``On and after January 1, 2002, the'' 
                      and inserting ``The''; and
                          (iv) in paragraph (3) (as so redesignated), by 
                      striking ``paragraph (2)'' and inserting 
                      ``paragraph (1)''; and
                    (B) in subsection (d), by striking ``subsection 
                (b)(2)'' and inserting ``subsection (b)(1)''.

    (c) Floyd D. Spence National Defense Authorization Act for Fiscal 
Year 2001.--The Floyd D. Spence National Defense Authorization Act for 
Fiscal Year 2001 (as enacted into law by Public Law 106-398) is amended 
as follows:
            (1) Section 814(g)(1) is amended by striking ``the Clinger-
        Cohen Act of 1996 (divisions D and E of Public Law 104-106)'' 
        and inserting ``subtitle III of title 40, United States Code''.
            (2) Section 1308(c) (22 U.S.C. 5959) is amended--
                    (A) by redesignating paragraph (7) as paragraph (8); 
                and
                    (B) by redesignating the second paragraph (6) as 
                paragraph (7).

    (d) Strom Thurmond National Defense Authorization Act for Fiscal 
Year 1999.--Section 819(a) of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (Public Law 105-261; 112 Stat. 
2089) is amended by striking ``section 201(c) of the Federal Property 
and Administrative Services Act of 1949 (40 U.S.C. 481(c)),'' and 
inserting ``section 503 of title 40, United States Code,''.
    (e) National Defense Authorization Act for Fiscal Year 1997.--
Section 1084(e) of the National Defense Authorization Act for Fiscal 
Year 1997 <<NOTE: 22 USC 1928.>>  (Public Law 104-201; 110 Stat. 2675) 
is amended by striking ``98-515'' and inserting ``98-525''. The 
amendment made by the preceding sentence shall take effect as if 
included in Public Law 104-201.

    (f) Federal Acquisition Streamlining Act of 1994.--Subsection (d) of 
section 1004 of the Federal Acquisition Streamlining Act of 1994 (Public 
Law 103-355; 108 Stat. 3253) <<NOTE: 10 USC 2304a note.>>  is amended by 
striking ``under--'' and all that follows through the end of paragraph 
(2) and inserting ``under chapter 11 of title 40, United States Code.''.

    (g) Armed Forces Retirement Home Act of 1991.--Section 1520(b)(1)(C) 
of the Armed Forces Retirement Home Act of 1991 (24 U.S.C. 420(b)(1)(C)) 
is amended by inserting ``Armed Forces'' before ``Retirement Home Trust 
Fund''.

                        Subtitle F--Other Matters

SEC. 1051. ASSESSMENT OF EFFECTS OF SPECIFIED STATUTORY LIMITATIONS ON 
            THE GRANTING OF SECURITY CLEARANCES.

    Not later <<NOTE: Deadline.>> than 60 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
Committee on Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives an assessment of the effects of 
the provisions of section 986 of title 10, United States

[[Page 117 STAT. 1614]]

Code (relating to limitations on security clearances), on the granting 
(or renewal) of security clearances for Department of Defense personnel 
and defense contractor personnel. The assessment shall review the 
effects of the disqualification factors specified in subsection (c) of 
that section and shall include such recommendations for legislation or 
administrative steps as the Secretary considers necessary.

SEC. 1052. <<NOTE: 10 USC 2572 note.>> ACQUISITION OF HISTORICAL 
            ARTIFACTS THROUGH EXCHANGE OF OBSOLETE OR SURPLUS PROPERTY.

    (a) Acquisition Authorized.--The Secretary of a military department 
may use the authority provided by section 2572 of title 10, United 
States Code, to acquire an historical artifact that directly benefits 
the historical collection of the Armed Forces in exchange for any 
obsolete or surplus property held by that military department, without 
regard to whether the property is described in subsection (c) of such 
section.
    (b) Duration of Authority.--The <<NOTE: Applicability.>> authority 
provided by subsection (a) applies during fiscal years 2004 and 2005.

SEC. 1053. CONVEYANCE OF SURPLUS T-37 AIRCRAFT TO AIR FORCE AVIATION 
            HERITAGE FOUNDATION, INCORPORATED.

    (a) Authority to Convey.--The Secretary of the Air Force may convey 
to the Air Force Aviation Heritage Foundation, Incorporated, of Georgia 
(in this section referred to as the ``Foundation''), all right, title, 
and interest of the United States in and to one surplus T-37 ``Tweet'' 
aircraft for the sole purpose of permitting the Foundation to use the 
aircraft in a static display. The conveyance shall be made by means of a 
conditional deed of gift.
    (b) Condition of Aircraft.--(1) The Secretary may not convey the 
aircraft under subsection (a) until the aircraft has been demilitarized 
in such manner as the Secretary determines necessary to ensure that the 
aircraft is permanently unfit for flight and does not have any 
capability for use as a platform for launching or releasing munitions or 
any other combat capability that it was designed to have.
    (2) The Foundation shall be responsible for the costs of 
demilitarizing the aircraft, as required by paragraph (1). 
Demilitarization shall be carried out in a manner intended to preserve 
the historical and display value of the aircraft.
    (c) Conditions for Conveyance.--(1) The conveyance of a T-37 
aircraft under this section shall be subject to the following 
conditions:
            (A) That the Foundation not convey any right, title, or 
        interest in, or transfer possession of, the aircraft to any 
        other party without the prior approval of the Secretary of the 
        Air Force.
            (B) That the Foundation not alter the aircraft to restore it 
        to flyable condition.
            (C) That if the Secretary of the Air Force determines at any 
        time that the Foundation has conveyed an ownership interest in, 
        or transferred possession of, the aircraft to any other party 
        without the prior approval of the Secretary, or has failed to 
        comply with the condition set forth in subparagraph (B), all 
        right, title, and interest in and to the aircraft, including any 
        repair or alteration of the aircraft, shall revert to the United 
        States, and the United States shall have the right of immediate 
        possession of the aircraft.

[[Page 117 STAT. 1615]]

    (2) The Secretary shall include the conditions under paragraph (1) 
in the instrument of conveyance of the T-37 aircraft.
    (d) Conveyance at No Cost to the United States.--Any conveyance of a 
T-37 aircraft under this section shall be made at no cost to the United 
States. Any costs associated with such conveyance, costs of determining 
compliance by the Foundation with the conditions in subsection (b), and 
costs of restoration and maintenance of the aircraft conveyed shall be 
borne by the Foundation.
    (e) Additional Terms and Conditions.--The Secretary of the Air Force 
may require such additional terms and conditions in connection with the 
conveyance under this section as the Secretary considers appropriate to 
protect the interests of the United States.
    (f) Duration of <<NOTE: Expiration date.>> Conveyance Authority.--
The authority to make the conveyance to the Foundation authorized by 
this section expires on September 30, 2005.

SEC. 1054. DEPARTMENT OF DEFENSE BIENNIAL STRATEGIC PLAN FOR MANAGEMENT 
            OF ELECTROMAGNETIC SPECTRUM.

    (a) Requirement for Plan.--Chapter 23 of title 10, United States 
Code, is amended by inserting after section 487 the following new 
section:

``Sec. 488. Management of electromagnetic spectrum: biennial strategic 
                        plan

    ``(a) Requirement for Strategic Plan.--Every other year, and in time 
for submission to Congress under subsection (b), the Secretary of 
Defense shall prepare a strategic plan for the management of the 
electromagnetic spectrum to ensure the accessibility and efficient use 
of that spectrum needed to support the mission of the Department of 
Defense.
    ``(b) Submission of Plan to Congress.--The Secretary of Defense 
shall submit to Congress the strategic plan most recently prepared under 
subsection (a) at the same time that the President submits to Congress 
the budget for an even-numbered fiscal year under section 1105(a) of 
title 31.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
487 the following new item:

``488. Management of electromagnetic spectrum: biennial strategic 
           plan.''.

SEC. 1055. REVISION OF DEPARTMENT OF DEFENSE DIRECTIVE RELATING TO 
            MANAGEMENT AND USE OF RADIO FREQUENCY SPECTRUM.

    Not <<NOTE: Deadline.>>  later than one year after the date of the 
enactment of this Act, the Secretary of Defense shall revise and reissue 
Department of Defense Directive 4650.1, relating to management and use 
of the radio frequency spectrum, last issued on June 24, 1987, to update 
the procedures applicable to Department of Defense management and use of 
the radio frequency spectrum and to ensure the consideration of 
requirements for usage of such spectrum by a system as early as 
practicable in the acquisition program for such system.

[[Page 117 STAT. 1616]]

SEC. 1056. SENSE OF CONGRESS ON DEPLOYMENT OF AIRBORNE CHEMICAL AGENT 
            MONITORING SYSTEMS AT CHEMICAL STOCKPILE DISPOSAL SITES IN 
            THE UNITED STATES.

    (a) Findings.--The Congress makes the following findings:
            (1) Over 23,700 tons of lethal chemical agents in assembled 
        chemical weapons and bulk storage containers are stored and 
        awaiting destruction at eight chemical agent disposal facilities 
        and stockpile storage sites in the United States. Some of these 
        weapons and storage containers contain GB or VX nerve agents, 
        while others contain blister agents such as HD (mustard agent).
            (2) Approximately 960,000 persons live in the vicinity of 
        the eight chemical weapons disposal facilities and stockpile 
        storage sites.
            (3) Airborne-agent chemical monitoring systems are currently 
        deployed at each of the chemical demilitarization facilities and 
        stockpile storage sites to provide continuous and near-real-time 
        monitoring of the presence of chemical agents.
            (4) The National Research Council has determined that 
        monitoring levels used at the demilitarization facilities are 
        very conservative and highly protective of workers and public 
        health and safety and that the conservative monitoring levels 
        are a contributing factor in false positive alarms.
            (5) The National Research Council has expressed repeated 
        concern about relatively frequent false positive alarms and the 
        lack of real-time monitoring for airborne agents and has noted 
        the poor state of agent monitoring technology for liquid waste 
        streams and solid materials suspected of possible agent 
        contamination.
            (6) The National Research Council has concluded that, 
        although the Program Manager for Chemical Demilitarization has 
        made some efforts to develop better agent-monitoring technology, 
        results to date have been disappointing.
            (7) The National Research Council has concluded that 
        development and deployment of airborne-agent monitors with 
        shorter response time and lower false alarm rates would enhance 
        safety and reduce the tendency to discount agent alarms, and has 
        recommended that the Program Manager for Chemical 
        Demilitarization and the relevant Department of Defense research 
        and development agencies should invigorate and coordinate 
        efforts to develop chemical agent monitors with improved 
        sensitivity, specificity, and response time.

    (b) Sense of Congress.--It is the sense of Congress that the 
Secretary of the Army--
            (1) should, in coordination with relevant Department of 
        Defense research and development agencies, invigorate and 
        coordinate efforts to develop chemical agent monitors with 
        improved sensitivity, specificity, and response time; and
            (2) should deploy improved chemical agent monitors in order 
        to ensure the maximum protection of the general public, 
        personnel involved in the chemical demilitarization program, and 
        the environment.

SEC. 1057. EXPANSION OF PRE-SEPTEMBER 11, 2001, FIRE GRANT PROGRAM OF 
            UNITED STATES FIRE ADMINISTRATION.

    The Federal Fire Prevention and Control Act of 1974 (15 U.S.C. 2201 
et seq.) is amended by redesignating the second section 33

[[Page 117 STAT. 1617]]

and section 34 as <<NOTE: 15 USC 2230, 2231.>> sections 35 and 36, 
respectively, and by inserting after the first section 33 the following 
new section:

``SEC. 34. <<NOTE: 15 USC 2229a.>> EXPANSION OF PRE-SEPTEMBER 11, 2001, 
            FIRE GRANT PROGRAM.

    ``(a) Expanded Authority To Make Grants.--
            ``(1) Hiring grants.--(A) The Administrator shall make 
        grants directly to career, volunteer, and combination fire 
        departments, in consultation with the chief executive of the 
        State in which the applicant is located, for the purpose of 
        increasing the number of firefighters to help communities meet 
        industry minimum standards and attain 24-hour staffing to 
        provide adequate protection from fire and fire-related hazards, 
        and to fulfill traditional missions of fire departments that 
        antedate the creation of the Department of Homeland Security.
            ``(B)(i) Grants made under this paragraph shall be for 4 
        years and be used for programs to hire new, additional 
        firefighters.
            ``(ii) Grantees are required to commit to retaining for at 
        least 1 year beyond the termination of their grants those 
        firefighters hired under this paragraph.
            ``(C) In awarding grants under this subsection, the 
        Administrator may give preferential consideration to 
        applications that involve a non-Federal contribution exceeding 
        the minimums under subparagraph (E).
            ``(D) The Administrator may provide technical assistance to 
        States, units of local government, Indian tribal governments, 
        and to other public entities, in furtherance of the purposes of 
        this section.
            ``(E) The portion of the costs of hiring firefighters 
        provided by a grant under this paragraph may not exceed--
                    ``(i) 90 percent in the first year of the grant;
                    ``(ii) 80 percent in the second year of the grant;
                    ``(iii) 50 percent in the third year of the grant; 
                and
                    ``(iv) 30 percent in the fourth year of the grant.
            ``(F) Notwithstanding any other provision of law, any 
        firefighter hired with funds provided under this subsection 
        shall not be discriminated against for, or be prohibited from, 
        engaging in volunteer activities in another jurisdiction during 
        off-duty hours.
            ``(G) All grants made pursuant to this subsection shall be 
        awarded on a competitive basis through a neutral peer review 
        process.
            ``(H) At the beginning of the fiscal year, the Administrator 
        shall set aside 10 percent of the funds appropriated for 
        carrying out this paragraph for departments with majority 
        volunteer or all volunteer personnel. After awards have been 
        made, if less than 10 percent of the funds appropriated for 
        carrying out this paragraph are not awarded to departments with 
        majority volunteer or all volunteer personnel, the Administrator 
        shall transfer from funds appropriated for carrying out this 
        paragraph to funds available for carrying out paragraph (2) an 
        amount equal to the difference between the amount that is 
        provided to such fire departments and 10 percent.
            ``(2) Recruitment and retention grants.--In addition to any 
        amounts transferred under paragraph (1)(H), the Administrator 
        shall direct at least 10 percent of the total

[[Page 117 STAT. 1618]]

        amount of funds appropriated pursuant to this section annually 
        to a competitive grant program for the recruitment and retention 
        of volunteer firefighters who are involved with or trained in 
        the operations of firefighting and emergency response. Eligible 
        entities shall include volunteer or combination fire 
        departments, and organizations on a local or statewide basis 
        that represent the interests of volunteer firefighters.

    ``(b) Applications.--(1) No grant may be made under this section 
unless an application has been submitted to, and approved by, the 
Administrator.
    ``(2) An application for a grant under this section shall be 
submitted in such form, and contain such information, as the 
Administrator may prescribe.
    ``(3) At a minimum, each application for a grant under this section 
shall--
            ``(A) explain the applicant's inability to address the need 
        without Federal assistance;
            ``(B) in the case of a grant under subsection (a)(1), 
        explain how the applicant plans to meet the requirements of 
        subsection (a)(1)(B)(ii) and (F);
            ``(C) specify long-term plans for retaining firefighters 
        following the conclusion of Federal support provided under this 
        section; and
            ``(D) provide assurances that the applicant will, to the 
        extent practicable, seek, recruit, and hire members of racial 
        and ethnic minority groups and women in order to increase their 
        ranks within firefighting.

    ``(c) Limitation on Use of Funds.--(1) Funds made available under 
this section to fire departments for salaries and benefits to hire new, 
additional firefighters shall not be used to supplant State or local 
funds, or, in the case of Indian tribal governments, funds supplied by 
the Bureau of Indian Affairs, but shall be used to increase the amount 
of funds that would, in the absence of Federal funds received under this 
section, be made available from State or local sources, or in the case 
of Indian tribal governments, from funds supplied by the Bureau of 
Indian Affairs.
    ``(2) No grant shall be awarded pursuant to this section to a 
municipality or other recipient whose annual budget at the time of the 
application for fire-related programs and emergency response has been 
reduced below 80 percent of the average funding level in the 3 years 
prior to the date of enactment of this section.
    ``(3) Funds appropriated by the Congress for the activities of any 
agency of an Indian tribal government or the Bureau of Indian Affairs 
performing firefighting functions on any Indian lands may be used to 
provide the non-Federal share of the cost of programs or projects funded 
under this section.
    ``(4)(A) Total funding provided under this section over 4 years for 
hiring a firefighter may not exceed $100,000.
    ``(B) The $100,000 cap shall be adjusted annually for inflation 
beginning in fiscal year 2005.
    ``(d) Performance Evaluation.--The Administrator may require a grant 
recipient to submit any information the Administrator considers 
reasonably necessary to evaluate the program.
    ``(e) Sunset and Reports.--The authority under this section to make 
grants shall lapse at the conclusion of 10 years from the date of 
enactment of this section. <<NOTE: Deadline.>> Not later than 6 years 
after the date of the enactment of this section, the Administrator shall

[[Page 117 STAT. 1619]]

submit a report to Congress concerning the experience with, and 
effectiveness of, such grants in meeting the objectives of this section. 
The report may include any recommendations the Administrator may have 
for amendments to this section and related provisions of law.

    ``(f) Revocation or Suspension of Funding.--If the Administrator 
determines that a grant recipient under this section is not in 
substantial compliance with the terms and requirements of an approved 
grant application submitted under this section, the Administrator may 
revoke or suspend funding of that grant, in whole or in part.
    ``(g) Access to Documents.--(1) The Administrator shall have access 
for the purpose of audit and examination to any pertinent books, 
documents, papers, or records of a grant recipient under this section 
and to the pertinent books, documents, papers, or records of State and 
local governments, persons, businesses, and other entities that are 
involved in programs, projects, or activities for which assistance is 
provided under this section.
    ``(2) <<NOTE: Applicability.>> Paragraph (1) shall apply with 
respect to audits and examinations conducted by the Comptroller General 
of the United States or by an authorized representative of the 
Comptroller General.

    ``(h) Definitions.--In this section, the term--
            ``(1) `firefighter' has the meaning given the term `employee 
        in fire protection activities' under section 3(y) of the Fair 
        Labor Standards Act (29 U.S.C. 203(y)); and
            ``(2) `Indian tribe' means a tribe, band, pueblo, nation, or 
        other organized group or community of Indians, including an 
        Alaska Native village (as defined in or established under the 
        Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.)), 
        that is recognized as eligible for the special programs and 
        services provided by the United States to Indians because of 
        their status as Indians.

    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated for the purposes of carrying out this section--
            ``(1) $1,000,000,000 for fiscal year 2004;
            ``(2) $1,030,000,000 for fiscal year 2005;
            ``(3) $1,061,000,000 for fiscal year 2006;
            ``(4) $1,093,000,000 for fiscal year 2007;
            ``(5) $1,126,000,000 for fiscal year 2008;
            ``(6) $1,159,000,000 for fiscal year 2009; and
            ``(7) $1,194,000,000 for fiscal year 2010.''.

SEC. 1058. <<NOTE: 31 USC 1535 note.>> REVIEW AND ENHANCEMENT OF 
            EXISTING AUTHORITIES FOR USING AIR FORCE AND AIR NATIONAL 
            GUARD MODULAR AIRBORNE FIRE-FIGHTING SYSTEMS AND OTHER 
            DEPARTMENT OF DEFENSE ASSETS TO FIGHT WILDFIRES.

    (a) Review Required.--The Director of the Office of Management and 
Budget shall conduct a review of existing authorities regarding the use 
of Air Force and Air National Guard Modular Airborne Fire-Fighting 
Systems units and other Department of Defense assets to fight wildfires 
to ensure that, in accordance with applicable legal requirements, such 
assets are available in the most expeditious manner to fight wildfires 
on Federal lands or non-Federal lands at the request of a Federal agency 
or State

[[Page 117 STAT. 1620]]

government. In conducting the review, the Director shall specifically 
consider--
            (1) any adverse impact caused by the restrictions contained 
        in section 1535(a)(4) of title 31, United States Code, or caused 
        by the interpretation of such restrictions, on the ability of 
        the Forest Service and other Federal agencies to procure such 
        firefighting services; and
            (2) whether the authorities under the Robert T. Stafford 
        Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et 
        seq.), including section 403(c) of such Act (42 U.S.C. 5170b), 
        are being properly utilized to facilitate an expeditious 
        Department of Defense response to State requests under, and 
        consistent with, such Act for firefighting services.

    (b) Determination Required.--On the basis of the review, the 
Director shall make a determination regarding whether existing 
authorities are being used in a manner consistent with using the 
available capabilities of Department of Defense assets to fight 
wildfires in the most expeditious and efficacious way to minimize the 
risk to public safety.
    (c) Expedited Economy Act Review Process.--If the Director 
determines under subsection (b) that existing authorities are adequate 
for the deployment of Department of Defense assets to fight wildfires, 
the Director shall develop and implement, subject to subsection (f), 
such modifications to the process for conducting the cost comparison 
required by section 1535(a)(4) of title 31, United States Code, as the 
Director considers appropriate to further expedite the procurement of 
such firefighting services.
    (d) Development and Implementation of Revised Policies.--If the 
Director determines under subsection (b) that the existing authorities 
or their use is inadequate or can be improved, the Director shall 
develop and implement, subject to subsection (f), such regulations, 
policies, and interagency procedures as may be necessary to improve the 
ability of the Department of Defense to respond to a request by a 
Federal agency or State government to assist in fighting wildfires on 
Federal lands or non-Federal lands under section 1535(a) of title 31, 
United States Code, or the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5121 et seq.), or both.
    (e) Reporting Requirement.--Not <<NOTE: Deadline.>>  later than 120 
days after the date of the enactment of this Act, the Director shall 
transmit to Congress a report--
            (1) containing the results of the review conducted under 
        subsection (a) and the determination made under subsection (b); 
        and
            (2) based on such determination, describing the 
        modifications proposed to be made to existing authorities under 
        subsection (c) or (d), including whether there is a need for 
        legislative changes to further improve the procedures for using 
        Department of Defense assets to fight wildfires.

    (f) Delayed Implementation.--The modifications described in the 
report prepared under subsection (e) to be made to existing authorities 
under subsection (c) or (d) shall not take effect until the end of the 
30-day period beginning on the date on which the report is transmitted 
to Congress.

[[Page 117 STAT. 1621]]

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

  Subtitle A--Department of Defense National Security Personnel System

Sec. 1101. Department of Defense national security personnel system.

     Subtitle B--Department of Defense Civilian Personnel Generally

Sec. 1111. Pilot program for improved civilian personnel management.
Sec. 1112. Clarification and revision of authority for demonstration 
           project relating to certain acquisition personnel management 
           policies and procedures.
Sec. 1113. Military leave for mobilized Federal civilian employees.
Sec. 1114. Restoration of annual leave for certain Department of Defense 
           employees.
Sec. 1115. Authority to employ civilian faculty members at the Western 
           Hemisphere Institute for Security Cooperation.
Sec. 1116. Extension of authority for experimental personnel program for 
           scientific and technical personnel.

     Subtitle C--Other Federal Government Civilian Personnel Matters

Sec. 1121. Modification of the overtime pay cap.
Sec. 1122. Common occupational and health standards for differential 
           payments as a consequence of exposure to asbestos.
Sec. 1123. Increase in annual student loan repayment authority.
Sec. 1124. Authorization for cabinet secretaries, secretaries of 
           military departments, and heads of executive agencies to be 
           paid on a biweekly basis.
Sec. 1125. Senior Executive Service and performance.
Sec. 1126. Design elements of pay-for-performance systems in 
           demonstration projects.
Sec. 1127. Federal flexible benefits plan administrative costs.
Sec. 1128. Employee surveys.
Sec. 1129. Human capital performance fund.

  Subtitle A--Department of Defense National Security Personnel System

SEC. 1101. DEPARTMENT OF DEFENSE NATIONAL SECURITY PERSONNEL SYSTEM.

    (a) In General.--(1) Subpart I of part III of title 5, United States 
Code, is amended by adding at the end the following new chapter:

 ``CHAPTER 99--DEPARTMENT OF DEFENSE NATIONAL SECURITY PERSONNEL SYSTEM

``Sec.
``9901. Definitions.
``9902. Establishment of human resources management system.
``9903. Attracting highly qualified experts.
``9904. Special pay and benefits for certain employees outside the 
           United States.

``Sec. 9901. Definitions

    ``For purposes of this chapter--
            ``(1) the term `Director' means the Director of the Office 
        of Personnel Management; and
            ``(2) the term `Secretary' means the Secretary of Defense.

``Sec. 9902. Establishment of human resources management system

    ``(a) In General.--Notwithstanding any other provision of this part, 
the Secretary may, in regulations prescribed jointly with the

[[Page 117 STAT. 1622]]

Director, establish, and from time to time adjust, a human resources 
management system for some or all of the organizational or functional 
units of the Department of Defense. The human resources management 
system established under authority of this section shall be referred to 
as the `National Security Personnel System'.
    ``(b) System Requirements.--Any system established under subsection 
(a) shall--
            ``(1) be flexible;
            ``(2) be contemporary;
            ``(3) not waive, modify, or otherwise affect--
                    ``(A) the public employment principles of merit and 
                fitness set forth in section 2301, including the 
                principles of hiring based on merit, fair treatment 
                without regard to political affiliation or other 
                nonmerit considerations, equal pay for equal work, and 
                protection of employees against reprisal for 
                whistleblowing;
                    ``(B) any provision of section 2302, relating to 
                prohibited personnel practices;
                    ``(C)(i) any provision of law referred to in section 
                2302(b)(1), (8), and (9); or
                    ``(ii) any provision of law implementing any 
                provision of law referred to in section 2302(b)(1), (8), 
                and (9) by--
                          ``(I) providing for equal employment 
                      opportunity through affirmative action; or
                          ``(II) providing any right or remedy available 
                      to any employee or applicant for employment in the 
                      public service;
                    ``(D) any other provision of this part (as described 
                in subsection (d)); or
                    ``(E) any rule or regulation prescribed under any 
                provision of law referred to in this paragraph;
            ``(4) ensure that employees may organize, bargain 
        collectively as provided for in this chapter, and participate 
        through labor organizations of their own choosing in decisions 
        which affect them, subject to the provisions of this chapter and 
        any exclusion from coverage or limitation on negotiability 
        established pursuant to law;
            ``(5) not be limited by any specific law or authority under 
        this title, or by any rule or regulation prescribed under this 
        title, that is waived in regulations prescribed under this 
        chapter, subject to paragraph (3); and
            ``(6) include a performance management system that 
        incorporates the following elements:
                    ``(A) Adherence to merit principles set forth in 
                section 2301.
                    ``(B) A fair, credible, and transparent employee 
                performance appraisal system.
                    ``(C) A link between the performance management 
                system and the agency's strategic plan.
                    ``(D) A means for ensuring employee involvement in 
                the design and implementation of the system.
                    ``(E) Adequate training and retraining for 
                supervisors, managers, and employees in the 
                implementation and operation of the performance 
                management system.
                    ``(F) A process for ensuring ongoing performance 
                feedback and dialogue between supervisors, managers, and

[[Page 117 STAT. 1623]]

                employees throughout the appraisal period, and setting 
                timetables for review.
                    ``(G) Effective safeguards to ensure that the 
                management of the system is fair and equitable and based 
                on employee performance.
                    ``(H) A means for ensuring that adequate agency 
                resources are allocated for the design, implementation, 
                and administration of the performance management system.
                    ``(I) A pay-for-performance evaluation system to 
                better link individual pay to performance, and provide 
                an equitable method for appraising and compensating 
                employees.

    ``(c) Personnel Management at Defense Laboratories.--(1) The 
National Security Personnel System shall not apply with respect to a 
laboratory under paragraph (2) before October 1, 2008, and shall apply 
on or after October 1, 2008, only to the extent that the Secretary 
determines that the flexibilities provided by the National Security 
Personnel System are greater than the flexibilities provided to those 
laboratories pursuant to section 342 of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 
2721) and section 1101 of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (5 U.S.C. 3104 note), 
respectively.
    ``(2) The laboratories to which this subsection applies are--
            ``(A) the Aviation and Missile Research Development and 
        Engineering Center;
            ``(B) the Army Research Laboratory;
            ``(C) the Medical Research and Materiel Command;
            ``(D) the Engineer Research and Development Command;
            ``(E) the Communications-Electronics Command;
            ``(F) the Soldier and Biological Chemical Command;
            ``(G) the Naval Sea Systems Command Centers;
            ``(H) the Naval Research Laboratory;
            ``(I) the Office of Naval Research; and
            ``(J) the Air Force Research Laboratory.

    ``(d) Other Nonwaivable Provisions.--The other provisions of this 
part referred to in subsection (b)(3)(D) are (to the extent not 
otherwise specified in this title)--
            ``(1) subparts A, B, E, G, and H of this part; and
            ``(2) chapters 41, 45, 47, 55 (except subchapter V thereof, 
        apart from section 5545b), 57, 59, 71, 72, 73, and 79, and this 
        chapter.

    ``(e) Limitations Relating to Pay.--(1) Nothing in this section 
shall constitute authority to modify the pay of any employee who serves 
in an Executive Schedule position under subchapter II of chapter 53.
    ``(2) Except as provided for in paragraph (1), the total amount in a 
calendar year of allowances, differentials, bonuses, awards, or other 
similar cash payments paid under this title to any employee who is paid 
under section 5376 or 5383 or under title 10 or under other comparable 
pay authority established for payment of Department of Defense senior 
executive or equivalent employees may not exceed the total annual 
compensation payable to the Vice President under section 104 of title 3.
    ``(3) To the maximum extent practicable, the rates of compensation 
for civilian employees at the Department of Defense shall be adjusted at 
the same rate, and in the same proportion, as are rates of compensation 
for members of the uniformed services.

[[Page 117 STAT. 1624]]

    ``(4) To the maximum extent practicable, for fiscal years 2004 
through 2008, the overall amount allocated for compensation of the 
civilian employees of an organizational or functional unit of the 
Department of Defense that is included in the National Security 
Personnel System shall not be less than the amount that would have been 
allocated for compensation of such employees for such fiscal year if 
they had not been converted to the National Security Personnel System, 
based on, at a minimum--
            ``(A) the number and mix of employees in such organizational 
        or functional unit prior to the conversion of such employees to 
        the National Security Personnel System; and
            ``(B) adjusted for normal step increases and rates of 
        promotion that would have been expected, had such employees 
        remained in their previous pay schedule.

    ``(5) To the maximum extent practicable, the regulations 
implementing the National Security Personnel System shall provide a 
formula for calculating the overall amount to be allocated for fiscal 
years after fiscal year 2008 for compensation of the civilian employees 
of an organization or functional unit of the Department of Defense that 
is included in the National Security Personnel System. The formula shall 
ensure that in the aggregate, employees are not disadvantaged in terms 
of the overall amount of pay available as a result of conversion to the 
National Security Personnel System, while providing flexibility to 
accommodate changes in the function of the organization, changes in the 
mix of employees performing those functions, and other changed 
circumstances that might impact pay levels.
    ``(f) Provisions To Ensure Collaboration With Employee 
Representatives.--(1) In order to ensure that the authority of this 
section is exercised in collaboration with, and in a manner that ensures 
the participation of, employee representatives in the planning, 
development, and implementation of the National Security Personnel 
System, the Secretary and the Director shall provide for the following:
            ``(A) The Secretary and the Director shall, with respect to 
        any proposed system--
                    ``(i) provide to the employee representatives 
                representing any employees who might be affected a 
                written description of the proposed system or adjustment 
                (including the reasons why it is considered necessary);
                    ``(ii) give such representatives at least 30 
                calendar days (unless extraordinary circumstances 
                require earlier action) to review and make 
                recommendations with respect to the proposal; and
                    ``(iii) give any recommendations received from such 
                representatives under clause (ii) full and fair 
                consideration in deciding whether or how to proceed with 
                the proposal.
            ``(B) Following receipt of recommendations, if any, from 
        such employee representatives with respect to a proposal 
        described in subparagraph (A), the Secretary and the Director 
        shall accept such modifications to the proposal in response to 
        the recommendations as they determine advisable and shall, with 
        respect to any parts of the proposal as to which they have not 
        accepted the recommendations--
                    ``(i) <<NOTE: Notification.>> notify Congress of 
                those parts of the proposal, together with the 
                recommendations of the employee representatives;

[[Page 117 STAT. 1625]]

                    ``(ii) meet and confer for not less than 30 calendar 
                days with the employee representatives, in order to 
                attempt to reach agreement on whether or how to proceed 
                with those parts of the proposal; and
                    ``(iii) at the Secretary's option, or if requested 
                by a majority of the employee representatives 
                participating, use the services of the Federal Mediation 
                and Conciliation Service during such meet and confer 
                period to facilitate the process of attempting to reach 
                agreement.
            ``(C)(i) Any part of the proposal as to which the 
        representatives do not make a recommendation, or as to which the 
        recommendations are accepted by the Secretary and the Director, 
        may be implemented immediately.
            ``(ii) With respect to any parts of the proposal as to which 
        recommendations have been made but not accepted by the Secretary 
        and the Director, at any time after 30 calendar days have 
        elapsed since the initiation of the congressional notification, 
        consultation, and mediation procedures set forth in subparagraph 
        (B), if the Secretary, in his discretion, determines that 
        further consultation and mediation is unlikely to produce 
        agreement, the Secretary may implement any or all of such parts 
        (including any modifications made in response to the 
        recommendations as the Secretary determines advisable), but only 
        after 30 days have elapsed after notifying Congress of the 
        decision to implement the part or parts involved (as so 
        modified, if applicable).
            ``(iii) <<NOTE: Notification.>> The Secretary shall notify 
        Congress promptly of the implementation of any part of the 
        proposal and shall furnish with such notice an explanation of 
        the proposal, any changes made to the proposal as a result of 
        recommendations from the employee representatives, and of the 
        reasons why implementation is appropriate under this 
        subparagraph.
            ``(D) If a proposal described in subparagraph (A) is 
        implemented, the Secretary and the Director shall--
                    ``(i) develop a method for the employee 
                representatives to participate in any further planning 
                or development which might become necessary; and
                    ``(ii) give the employee representatives adequate 
                access to information to make that participation 
                productive.

    ``(2) The Secretary may, at the Secretary's discretion, engage in 
any and all collaboration activities described in this subsection at an 
organizational level above the level of exclusive recognition.
    ``(3) In the case of any employees who are not within a unit with 
respect to which a labor organization is accorded exclusive recognition, 
the Secretary and the Director may develop procedures for representation 
by any appropriate organization which represents a substantial 
percentage of those employees or, if none, in such other manner as may 
be appropriate, consistent with the purposes of this subsection.
    ``(4) The procedures under this subsection are the exclusive 
procedures for the participation of employee representatives in the 
planning, development, implementation, or adjustment of the National 
Security Personnel System.

    ``(g) Provisions Regarding National Level Bargaining.--(1) The 
National Security Personnel System implemented or modified under this 
chapter may include employees of the Department of Defense from any 
bargaining unit with respect to which a labor

[[Page 117 STAT. 1626]]

organization has been accorded exclusive recognition under chapter 71.
    ``(2) For any bargaining unit so included under paragraph (1), the 
Secretary may bargain with a labor organization at an organizational 
level above the level of exclusive recognition. The decision to bargain 
at a level above the level of exclusive recognition shall not be subject 
to review or to statutory third-party dispute resolution procedures 
outside the Department of Defense. Any such bargaining shall--
            ``(A) be binding on all subordinate bargaining units of the 
        labor organization at the level of recognition and their 
        exclusive representatives, and the Department of Defense and its 
        subcomponents, without regard to levels of recognition;
            ``(B) supersede all other collective bargaining agreements 
        of the labor organization, including collective bargaining 
        agreements negotiated with an exclusive representative at the 
        level of recognition, except as otherwise determined by the 
        Secretary;
            ``(C) not be subject to further negotiations with the labor 
        organizations for any purpose, including bargaining at the level 
        of recognition, except as provided for by the Secretary; and
            ``(D) be subject to review by an independent third party 
        only to the extent provided and pursuant to procedures 
        established under paragraph (6) of subsection (m).

    ``(3) The National Guard Bureau and the Army and Air Force National 
Guard are excluded from coverage under this subsection.
    ``(4) Any bargaining completed pursuant to this subsection with a 
labor organization not otherwise having national consultation rights 
with the Department of Defense or its subcomponents shall not create any 
obligation on the Department of Defense or its subcomponents to confer 
national consultation rights on such a labor organization.
    ``(h) Provisions Relating to Appellate Procedures.--(1) The 
Secretary--
            ``(A) may establish an appeals process that provides 
        employees of the Department of Defense organizational and 
        functional units that are included in the National Security 
        Personnel System fair treatment in any appeals that they bring 
        in decisions relating to their employment; and
            ``(B) shall in prescribing regulations for any such appeals 
        process--
                    ``(i) ensure that employees in the National Security 
                Personnel System are afforded the protections of due 
                process; and
                    ``(ii) toward that end, be required to consult with 
                the Merit Systems Protection Board before issuing any 
                such regulations.

    ``(2) Regulations implementing the appeals process may establish 
legal standards and procedures for personnel actions, including 
standards for applicable relief, to be taken on the basis of employee 
misconduct or performance that fails to meet expectations. Such 
standards shall be consistent with the public employment principles of 
merit and fitness set forth in section 2301.
    ``(3) Legal standards and precedents applied before the effective 
date of this section by the Merit Systems Protection Board and the 
courts under chapters 43, 75, and 77 of this title shall apply to 
employees of organizational and functional units included in the 
National Security Personnel System, unless such standards

[[Page 117 STAT. 1627]]

and precedents are inconsistent with legal standards established under 
this subsection.
    ``(4) An employee who--
            ``(A) is removed, suspended for more than 14 days, 
        furloughed for 30 days or less, reduced in pay, or reduced in 
        pay band (or comparable reduction) by a final decision under the 
        appeals process established under paragraph (1);
            ``(B) is not serving under probationary period as defined 
        under regulations established under paragraph (2); and
            ``(C) would otherwise be eligible to appeal a performance-
        based or adverse action under chapter 43 or 75, as applicable, 
        to the Merit Systems Protection Board,

shall have the right to petition the full Merit Systems Protection Board 
for review of the record of that decision pursuant to regulations 
established under paragraph (2). The Board may dismiss any petition 
that, in the view of the Board, does not raise substantial questions of 
fact or law. No personnel action shall be stayed and no interim relief 
shall be granted during the pendency of the Board's review unless 
specifically ordered by the Board.
    ``(5) The Board may order such corrective action as the Board 
considers appropriate only if the Board determines that the decision 
was--
            ``(A) arbitrary, capricious, an abuse of discretion, or 
        otherwise not in accordance with law;
            ``(B) obtained without procedures required by law, rule, or 
        regulation having been followed; or
            ``(C) unsupported by substantial evidence.

    ``(6) An employee who is adversely affected by a final order or 
decision of the Board may obtain judicial review of the order or 
decision as provided in section 7703. The Secretary of Defense, after 
notifying the Director, may obtain judicial review of any final order or 
decision of the Board under the same terms and conditions as provided an 
employee.
    ``(7) Nothing in this subsection shall be construed to authorize the 
waiver of any provision of law, including an appeals provision providing 
a right or remedy under section 2302(b) (1), (8) or (9), that is not 
otherwise waivable under subsection (a).
    ``(8) The right of an employee to petition the Merit Systems 
Protection Board of the Department's final decision on an action covered 
by paragraph (4) of this subsection, and the right of the Merit Systems 
Protection Board to review such action or to order corrective action 
pursuant to paragraph (5), is provisional for 7 years after the date of 
the enactment of this chapter, and shall become permanent unless 
Congress acts to revise such provisions.
    ``(i) Provisions Related to Separation and Retirement Incentives.--
(1) The Secretary may establish a program within the Department of 
Defense under which employees may be eligible for early retirement, 
offered separation incentive pay to separate from service voluntarily, 
or both. This authority may be used to reduce the number of personnel 
employed by the Department of Defense or to restructure the workforce to 
meet mission objectives without reducing the overall number of 
personnel. This authority is in addition to, and notwithstanding, any 
other authorities established by law or regulation for such programs.
    ``(2)(A) The Secretary may not authorize the payment of voluntary 
separation incentive pay under paragraph (1) to more than 25,000 
employees in any fiscal year, except that employees who

[[Page 117 STAT. 1628]]

receive voluntary separation incentive pay as a result of a closure or 
realignment of a military installation under the Defense Base Closure 
and Realignment Act of 1990 (title XXIX of Public Law 101-510; 10 U.S.C. 
2687 note) shall not be included in that number.
    ``(B) The Secretary shall prepare a report each fiscal year setting 
forth the number of employees who received such pay as a result of a 
closure or realignment of a military base as described under 
subparagraph (A).
    ``(C) The <<NOTE: Reports.>> Secretary shall submit the report under 
subparagraph (B) to the Committee on Armed Services and the Committee on 
Governmental Affairs of the Senate, and the Committee on Armed Services 
and the Committee on Government Reform of the House of Representatives.

    ``(3) For purposes of this section, the term `employee' means an 
employee of the Department of Defense, serving under an appointment 
without time limitation, except that such term does not include--
            ``(A) a reemployed annuitant under subchapter III of chapter 
        83 or chapter 84, or another retirement system for employees of 
        the Federal Government;
            ``(B) an employee having a disability on the basis of which 
        such employee is or would be eligible for disability retirement 
        under any of the retirement systems referred to in subparagraph 
        (A); or
            ``(C) for purposes of eligibility for separation incentives 
        under this section, an employee who is in receipt of a decision 
        notice of involuntary separation for misconduct or unacceptable 
        performance.

    ``(4) An employee who is at least 50 years of age and has completed 
20 years of service, or has at least 25 years of service, may, pursuant 
to regulations promulgated under this section, apply and be retired from 
the Department of Defense and receive benefits in accordance with 
chapter 83 or 84 if the employee has been employed continuously within 
the Department of Defense for more than 30 days before the date on which 
the determination to conduct a reduction or restructuring within 1 or 
more Department of Defense components is approved.
    ``(5)(A) Separation pay shall be paid in a lump sum or in 
installments and shall be equal to the lesser of--
            ``(i) an amount equal to the amount the employee would be 
        entitled to receive under section 5595(c), if the employee were 
        entitled to payment under such section; or
            ``(ii) $25,000.

    ``(B) Separation pay shall not be a basis for payment, and shall not 
be included in the computation, of any other type of Government benefit. 
Separation pay shall not be taken into account for the purpose of 
determining the amount of any severance pay to which an individual may 
be entitled under section 5595, based on any other separation.
    ``(C) Separation pay, if paid in installments, shall cease to be 
paid upon the recipient's acceptance of employment by the Federal 
Government, or commencement of work under a personal services contract 
as described in paragraph (6).
    ``(6)(A) An employee who receives separation pay under such program 
may not be reemployed by the Department of Defense for a 12-month period 
beginning on the effective date of the

[[Page 117 STAT. 1629]]

employee's separation, unless this prohibition is waived by the 
Secretary on a case-by-case basis.
    ``(B) An employee who receives separation pay under this section on 
the basis of a separation occurring on or after the date of the 
enactment of the Federal Workforce Restructuring Act of 1994 (Public Law 
103-236; 108 Stat. 111) and accepts employment with the Government of 
the United States, or who commences work through a personal services 
contract with the United States within 5 years after the date of the 
separation on which payment of the separation pay is based, shall be 
required to repay the entire amount of the separation pay to the 
Department of Defense. If the employment is with an Executive agency (as 
defined by section 105) other than the Department of Defense, the 
Director may, at the request of the head of that agency, waive the 
repayment if the individual involved possesses unique abilities and is 
the only qualified applicant available for the position. If the 
employment is within the Department of Defense, the Secretary may waive 
the repayment if the individual involved is the only qualified applicant 
available for the position. If the employment is with an entity in the 
legislative branch, the head of the entity or the appointing official 
may waive the repayment if the individual involved possesses unique 
abilities and is the only qualified applicant available for the 
position. If the employment is with the judicial branch, the Director of 
the Administrative Office of the United States Courts may waive the 
repayment if the individual involved possesses unique abilities and is 
the only qualified applicant available for the position.
    ``(7) Under this program, early retirement and separation pay may be 
offered only pursuant to regulations established by the Secretary, 
subject to such limitations or conditions as the Secretary may require.
    ``(j) Provisions Relating to Reemployment.--If an annuitant 
receiving an annuity from the Civil Service Retirement and Disability 
Fund becomes employed in a position within the Department of Defense, 
his annuity shall continue. An annuitant so reemployed shall not be 
considered an employee for purposes of chapter 83 or 84.
    ``(k) Additional Provisions Relating to Personnel Management.--(1) 
Notwithstanding subsection (d), the Secretary of Defense, in 
establishing and implementing the National Security Personnel System 
under subsection (a), shall not be limited by any provision of this 
title or any rule or regulation prescribed under this title in 
establishing and implementing regulations relating to--
            ``(A) the methods of establishing qualification requirements 
        for, recruitment for, and appointments to positions;
            ``(B) the methods of assigning, reassigning, detailing, 
        transferring, or promoting employees; and
            ``(C) the methods of reducing overall agency staff and grade 
        levels, except that performance, veterans' preference, tenure of 
        employment, length of service, and such other factors as the 
        Secretary considers necessary and appropriate shall be 
        considered in decisions to realign or reorganize the 
        Department's workforce.

    ``(2) In implementing this subsection, the Secretary shall comply 
with the provisions of section 2302(b)(11), regarding veterans' 
preference requirements, as provided for in subsection (b)(3).

[[Page 117 STAT. 1630]]

    ``(l) Phase-In.--The Secretary may apply the National Security 
Personnel System--
            ``(1) to an organizational or functional unit that includes 
        up to 300,000 civilian employees of the Department of Defense, 
        without having to make a determination described in paragraph 
        (2); and
            ``(2) to an organizational or functional unit that includes 
        more than 300,000 civilian employees of the Department of 
        Defense, if the Secretary determines in accordance with 
        subsection (a) that the Department has in place a performance 
        management system that meets the criteria specified in 
        subsection (b).

    ``(m) Labor Management Relations in the Department of Defense.--(1) 
Notwithstanding section 9902(d)(2), the Secretary, together with the 
Director, may establish and from time to time adjust a labor relations 
system for the Department of Defense to address the unique role that the 
Department's civilian workforce plays in supporting the Department's 
national security mission.
    ``(2) The system developed or adjusted under paragraph (1) would 
allow for a collaborative issue-based approach to labor management 
relations.
    ``(3) In order to ensure that the authority of this section is 
exercised in collaboration with, and in a manner that ensures the 
participation of, employee representatives in the development and 
implementation of the labor management relations system or adjustments 
to such system under this section, the Secretary shall provide for the 
following:
            ``(A) The Secretary and the Director shall, with respect to 
        any proposed system or adjustment--
                    ``(i) afford employee representatives and management 
                the opportunity to have meaningful discussions 
                concerning the development of the new system;
                    ``(ii) give such representatives at least 30 
                calendar days (unless extraordinary circumstances 
                require earlier action) to review the proposal for the 
                system and make recommendations with respect to it; and
                    ``(iii) give any recommendations received from such 
                representatives under clause (ii) full and fair 
                consideration.
            ``(B) Following receipt of recommendations, if any, from 
        such employee representatives with respect to a proposal 
        described in subparagraph (A), the Secretary and the Director 
        shall accept such modifications to the proposal in response to 
        the recommendations as are determined advisable and shall, with 
        respect to any parts of the proposal as to which they have not 
        accepted the recommendations--
                    ``(i) meet and confer for not less than 30 calendar 
                days with the employee representatives, in order to 
                attempt to reach agreement on whether or how to proceed 
                with those parts of the proposal; and
                    ``(ii) at the Secretary's option, or if requested by 
                a majority of the employee representatives 
                participating, use the services of the Federal Mediation 
                and Conciliation Service during such meet and confer 
                period to facilitate the process of attempting to reach 
                agreement.

[[Page 117 STAT. 1631]]

            ``(C)(i) Any part of the proposal described in subparagraph 
        (A) as to which employee representatives do not make a 
        recommendation, or as to which the recommendations are accepted 
        under subparagraph (B), may be implemented immediately.
            ``(ii) With respect to any parts of the proposal as to which 
        recommendations have been made but not accepted, at any time 
        after 30 calendar days have elapsed since the consultation and 
        mediation procedures set forth in subparagraph (B), if the 
        Secretary, in his discretion, determines that further 
        consultation and mediation is unlikely to produce agreement, the 
        Secretary may implement any or all of such parts (including any 
        modifications made in response to the recommendations as the 
        Secretary determines advisable), but only after 30 days have 
        elapsed after notifying Congress of the decision to implement 
        the part or parts involved (as so modified, if applicable).
            ``(D) <<NOTE: Deadline.>> The process for collaborating with 
        employee representatives provided for under this subsection 
        shall begin no later than 60 calendar days after the date of 
        enactment of this subsection.

    ``(4) The Secretary may engage in any and all collaboration 
activities described in this subsection at an organizational level above 
the level of exclusive recognition.
    ``(5) The system developed or adjusted under this subsection may 
incorporate the authority to bargain at a level above the level of 
exclusion recognition provided for in subsection (g) of this section, 
but may not abrogate or modify the authority provided for in that 
subsection. Notwithstanding this subsection, the Secretary may, at his 
discretion, implement the authority in subsection (g) immediately upon 
enactment of this subsection.
    ``(6) The labor relations system developed or adjusted under this 
subsection shall provide for independent third party review of 
decisions, including defining what decisions are reviewable by the third 
party, what third party would conduct the review, and the standard or 
standards for that review.
    ``(7) Nothing in this section, including the authority provided to 
waive, modify, or otherwise affect provisions of law not listed in 
subsections (b) and (c) as nonwaivable, shall be construed to expand the 
scope of bargaining under chapter 71 or this subsection with respect to 
any provision of this title that may be waived, modified, or otherwise 
affected under this section.
    ``(8) The labor relations system developed or adjusted under this 
subsection shall be binding on all bargaining units within the 
Department of Defense, all employee representatives of such units, and 
the Department of Defense and its subcomponents, and shall supersede all 
other collective bargaining agreements for bargaining units in the 
Department of Defense, including collective bargaining agreements 
negotiated with employee representatives at the level of recognition, 
except as otherwise determined by the Secretary.
    ``(9) Unless it is extended or otherwise provided for in law, the 
authority to establish, implement and adjust the labor relations system 
developed under this subsection shall expire six years after the date of 
enactment of this subsection, at which time the provisions of chapter 71 
will apply.

[[Page 117 STAT. 1632]]

``Sec. 9903. Attracting highly qualified experts

    ``(a) In General.--The Secretary may carry out a program using the 
authority provided in subsection (b) in order to attract highly 
qualified experts in needed occupations, as determined by the Secretary.
    ``(b) Authority.--Under the program, the Secretary may--
            ``(1) appoint personnel from outside the civil service and 
        uniformed services (as such terms are defined in section 2101) 
        to positions in the Department of Defense without regard to any 
        provision of this title governing the appointment of employees 
        to positions in the Department of Defense;
            ``(2) prescribe the rates of basic pay for positions to 
        which employees are appointed under paragraph (1) at rates not 
        in excess of the maximum rate of basic pay authorized for 
        senior-level positions under section 5376, as increased by 
        locality-based comparability payments under section 5304, 
        notwithstanding any provision of this title governing the rates 
        of pay or classification of employees in the executive branch; 
        and
            ``(3) pay any employee appointed under paragraph (1) 
        payments in addition to basic pay within the limits applicable 
        to the employee under subsection (d).

    ``(c) Limitation on Term of Appointment.--(1) Except as provided in 
paragraph (2), the service of an employee under an appointment made 
pursuant to this section may not exceed 5 years.
    ``(2) The Secretary may, in the case of a particular employee, 
extend the period to which service is limited under paragraph (1) by up 
to 1 additional year if the Secretary determines that such action is 
necessary to promote the Department of Defense's national security 
missions.
    ``(d) Limitations on Additional Payments.--(1) The total amount of 
the additional payments paid to an employee under this section for any 
12-month period may not exceed the lesser of the following amounts:
            ``(A) $50,000 in fiscal year 2004, which may be adjusted 
        annually thereafter by the Secretary, with a percentage increase 
        equal to one-half of 1 percentage point less than the percentage 
        by which the Employment Cost Index, published quarterly by the 
        Bureau of Labor Statistics, for the base quarter of the year 
        before the preceding calendar year exceeds the Employment Cost 
        Index for the base quarter of the second year before the 
        preceding calendar year.
            ``(B) The amount equal to 50 percent of the employee's 
        annual rate of basic pay.

For purposes of this paragraph, the term `base quarter' has the meaning 
given such term by section 5302(3).
    ``(2) An employee appointed under this section is not eligible for 
any bonus, monetary award, or other monetary incentive for service 
except for payments authorized under this section.
    ``(3) Notwithstanding any other provision of this subsection or of 
section 5307, no additional payments may be paid to an employee under 
this section in any calendar year if, or to the extent that, the 
employee's total annual compensation will exceed the maximum amount of 
total annual compensation payable at the salary set in accordance with 
section 104 of title 3.
    ``(e) Limitation on Number of Highly Qualified Experts.--The number 
of highly qualified experts appointed and retained

[[Page 117 STAT. 1633]]

by the Secretary under subsection (b)(1) shall not exceed 2,500 at any 
time.
    ``(f) Savings Provisions.--In the event that the Secretary 
terminates this program, in the case of an employee who, on the day 
before the termination of the program, is serving in a position pursuant 
to an appointment under this section--
            ``(1) the termination of the program does not terminate the 
        employee's employment in that position before the expiration of 
        the lesser of--
                    ``(A) the period for which the employee was 
                appointed; or
                    ``(B) the period to which the employee's service is 
                limited under subsection (c), including any extension 
                made under this section before the termination of the 
                program; and
            ``(2) the rate of basic pay prescribed for the position 
        under this section may not be reduced as long as the employee 
        continues to serve in the position without a break in service.

``Sec. 9904. Special pay and benefits for certain employees outside the 
                        United States

    ``The Secretary may provide to certain civilian employees of the 
Department of Defense assigned to activities outside the United States 
as determined by the Secretary to be in support of Department of Defense 
activities abroad hazardous to life or health or so specialized because 
of security requirements as to be clearly distinguishable from normal 
Government employment--
            ``(1) allowances and benefits--
                    ``(A) comparable to those provided by the Secretary 
                of State to members of the Foreign Service under chapter 
                9 of title I of the Foreign Service Act of 1980 (Public 
                Law 96-465, 22 U.S.C. 4081 et seq.) or any other 
                provision of law; or
                    ``(B) comparable to those provided by the Director 
                of Central Intelligence to personnel of the Central 
                Intelligence Agency; and
            ``(2) special retirement accrual benefits and disability in 
        the same manner provided for by the Central Intelligence Agency 
        Retirement Act (50 U.S.C. 2001 et seq.) and in section 18 of the 
        Central Intelligence Agency Act of 1949 (50 U.S.C. 403r).''.

    (2) The table of chapters for part III of such title is amended by 
adding at the end of subpart I the following new item:

``99. Department of Defense National Security Personnel System...9901''.

    (b) <<NOTE: 5 USC 9901 note.>> Impact on Department of Defense 
Civilian Personnel.--(1) Any exercise of authority under chapter 99 of 
such title (as added by subsection (a)), including under any system 
established under such chapter, shall be in conformance with the 
requirements of this subsection.

    (2) No other provision of this Act or of any amendment made by this 
Act may be construed or applied in a manner so as to limit, supersede, 
or otherwise affect the provisions of this section, except to the extent 
that it does so by specific reference to this section.

[[Page 117 STAT. 1634]]

     Subtitle B--Department of Defense Civilian Personnel Generally

SEC. 1111. <<NOTE: 5 USC 9902 note.>> PILOT PROGRAM FOR IMPROVED 
            CIVILIAN PERSONNEL MANAGEMENT.

    (a) Pilot Program.--The Secretary of Defense may carry out a pilot 
program using an automated workforce management system to demonstrate 
improved efficiency in the performance of civilian personnel management. 
The automated workforce management system used for the pilot program 
shall be capable of automating the following workforce management 
functions:
            (1) Job definition.
            (2) Position management.
            (3) Recruitment.
            (4) Staffing.
            (5) Performance management.

    (b) Authorities Under Pilot Program.--Under the pilot program, the 
Secretary of Defense shall provide the Secretary of each military 
department with the authority for the following:
            (1) To use an automated workforce management system for the 
        civilian workforce of that military department to assess the 
        potential of such a system to do the following:
                    (A) Substantially reduce hiring cycle times.
                    (B) Lower labor costs.
                    (C) Increase efficiency.
                    (D) Improve performance management.
                    (E) Provide better management reporting.
                    (F) Enable that system to make operational new 
                personnel management flexibilities granted under the 
                civilian personnel transformation program.
            (2) Identify at least one regional civilian personnel center 
        (or equivalent) in that military department for participation in 
        the pilot program.

    (c) Duration of Pilot Program.--The <<NOTE: Deadline.>>  Secretary 
of Defense may carry out the pilot program under this section at each 
selected regional civilian personnel center for a period of two years 
beginning not later than March 1, 2004.

SEC. 1112. CLARIFICATION AND REVISION OF AUTHORITY FOR DEMONSTRATION 
            PROJECT RELATING TO CERTAIN ACQUISITION PERSONNEL MANAGEMENT 
            POLICIES AND PROCEDURES.

    Section 4308 of the National Defense Authorization Act for Fiscal 
Year 1996 (10 U.S.C. 1701 note) is amended--
            (1) in subsection (b), by striking paragraph (3) and 
        inserting the following:
            ``(3) Conditions.--Paragraph (2) shall not apply with 
        respect to a demonstration project unless--
                    ``(A) for each organization or team participating in 
                the demonstration project--
                          ``(i) at least one-third of the workforce 
                      participating in the demonstration project 
                      consists of members of the acquisition workforce; 
                      and

[[Page 117 STAT. 1635]]

                          ``(ii) at least two-thirds of the workforce 
                      participating in the demonstration project 
                      consists of members of the acquisition workforce 
                      and supporting personnel assigned to work directly 
                      with the acquisition workforce; and
                    ``(B) the demonstration project commences before 
                October 1, 2007.'';
            (2) in subsection (d), by striking ``95,000'' and inserting 
        ``120,000'';
            (3) by redesignating subsection (e) as subsection (f); and
            (4) by inserting after subsection (d) the following:

    ``(e) Effect of Reorganizations.--The applicability of paragraph (2) 
of subsection (b) to an organization or team shall not terminate by 
reason that the organization or team, after having satisfied the 
conditions in paragraph (3) of such subsection when it began to 
participate in a demonstration project under this section, ceases to 
meet one or both of the conditions set forth in subparagraph (A) of such 
paragraph (3) as a result of a reorganization, restructuring, 
realignment, consolidation, or other organizational change.''.

SEC. 1113. MILITARY LEAVE FOR MOBILIZED FEDERAL CIVILIAN EMPLOYEES.

    (a) In General.--Subsection (b) of section 6323 of title 5, United 
States Code, is amended--
            (1) in paragraph (2)--
                    (A) by redesignating subparagraphs (A) and (B) as 
                clauses (i) and (ii), respectively, and at the end of 
                clause (ii), as so redesignated, by inserting ``or''; 
                and
                    (B) by inserting ``(A)'' after ``(2)''; and
            (2) by inserting the following before the text beginning 
        with ``is entitled'':
            ``(B) performs full-time military service as a result of a 
        call or order to active duty in support of a contingency 
        operation as defined in section 101(a)(13) of title 10;''.

    (b) <<NOTE: 5 USC 6323 note.>> Effective Date.--The amendments made 
by subsection (a) shall apply to military service performed on or after 
the date of the enactment of this Act.

SEC. 1114. <<NOTE: 5 USC 6304 note.>> RESTORATION OF ANNUAL LEAVE FOR 
            CERTAIN DEPARTMENT OF DEFENSE EMPLOYEES.

    (a) Restoration of Annual Leave.--During the period October 1, 1992, 
through December 31, 1997, all employees transferring from a closing or 
realigning Department of Defense installation or activity as defined 
under section 6304(d)(3) of title 5, United States Code, to another 
Department of Defense installation or activity--
            (1) may be deemed eligible by the Secretary of Defense for 
        automatic restoration of forfeited annual leave under section 
        6304(d)(3) of title 5, United States Code, during the year of 
        transfer; and
            (2) may be deemed by the Secretary of Defense to have used 
        all forfeited annual leave properly restored under section 
        6304(d)(3) of title 5, United States Code, within the 
        appropriate time limits, only if such restored annual leave was 
        used by the employee or paid to the employee in the form of a 
        lump sum payment under section 5551(a) of title 5, United States 
        Code, by the last day of the 2001 leave year.

[[Page 117 STAT. 1636]]

    (b) Payment of Restored Annual Leave.--(1) On or after September 23, 
1996, all employees transferring from a closing or realigning Department 
of Defense installation or activity as defined under section 
6304(d)(3)(A) of title 5, United States Code, to another Department of 
Defense installation or activity who, upon transfer, were entitled to 
payment of a lump sum payment under section 5551(c) of title 5, United 
States Code, for forfeited annual leave properly restored under section 
6304(d)(3) of title 5, United States Code--
            (A) may be paid only for any such restored annual leave 
        currently remaining to their credit at the hourly rate payable 
        on the date of transfer with appropriate back pay interest; and
            (B) shall be deemed paid for all such restored annual leave 
        to which that employee was entitled to payment upon transfer, 
        but subsequently used or was otherwise paid for upon separation.

    (2) This subsection shall take effect on the date of the enactment 
of this Act.

SEC. 1115. AUTHORITY TO EMPLOY CIVILIAN FACULTY MEMBERS AT THE WESTERN 
            HEMISPHERE INSTITUTE FOR SECURITY COOPERATION.

    Section 1595(c) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(6) The Western Hemisphere Institute for Security 
        Cooperation.''.

SEC. 1116. <<NOTE: 5 USC 3104 note.>> EXTENSION OF AUTHORITY FOR 
            EXPERIMENTAL PERSONNEL PROGRAM FOR SCIENTIFIC AND TECHNICAL 
            PERSONNEL.

    (a) Extension of Program.--Subsection (e)(1) of section 1101 of the 
Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 
(Public Law 105-261; 112 Stat. 2139; 5 U.S.C. 3104 note) is amended by 
striking ``October 16, 2005'' and inserting ``September 30, 2008''.
    (b) Commensurate Extension of Requirement for Annual Report.--
Subsection (g) of such section is amended by striking ``2006'' and 
inserting ``2009''.

     Subtitle C--Other Federal Government Civilian Personnel Matters

SEC. 1121. MODIFICATION OF THE OVERTIME PAY CAP.

    Section 5542(a)(2) of title 5, United States Code, is amended--
            (1) by inserting ``the greater of'' before ``one and one-
        half''; and
            (2) by inserting ``or the hourly rate of basic pay of the 
        employee'' after ``law)'' the second place it appears.

SEC. 1122. COMMON OCCUPATIONAL AND HEALTH STANDARDS FOR DIFFERENTIAL 
            PAYMENTS AS A CONSEQUENCE OF EXPOSURE TO ASBESTOS.

    (a) Prevailing Rate Systems.--Section 5343(c)(4) of title 5, United 
States Code, is amended by inserting before the semicolon at the end the 
following: ``, and for any hardship or hazard related

[[Page 117 STAT. 1637]]

to asbestos, such differentials shall be determined by applying 
occupational safety and health standards consistent with the permissible 
exposure limit promulgated by the Secretary of Labor under the 
Occupational Safety and Health Act of 1970''.
    (b) General Schedule Pay Rates.--Section 5545(d) of such title is 
amended by inserting before the period at the end of the first sentence 
the following: ``, and for any hardship or hazard related to asbestos, 
such differentials shall be determined by applying occupational safety 
and health standards consistent with the permissible exposure limit 
promulgated by the Secretary of Labor under the Occupational Safety and 
Health Act of 1970''.
    (c) <<NOTE: 5 USC 5343 note.>> Applicability.--Subject to any vested 
constitutional property rights, any administrative or judicial 
determination after the date of the enactment of this Act concerning 
backpay for a differential established under sections 5343(c)(4) or 
5545(d) of such title shall be based on occupational safety and health 
standards described in the amendments made by subsections (a) and (b).

SEC. 1123. INCREASE IN ANNUAL STUDENT LOAN REPAYMENT AUTHORITY.

    (a) Increase.--Section 5379(b)(2)(A) of title 5, United States Code, 
is amended by striking ``$6,000'' and inserting ``$10,000''.
    (b) Effective Date.--The amendment made by subsection (a) shall take 
effect on January 1, 2004.

SEC. 1124. AUTHORIZATION FOR CABINET SECRETARIES, SECRETARIES OF 
            MILITARY DEPARTMENTS, AND HEADS OF EXECUTIVE AGENCIES TO BE 
            PAID ON A BIWEEKLY BASIS.

    (a) Authorization.--Section 5504 of title 5, United States Code, is 
amended--
            (1) by redesignating subsection (c) as subsection (d);
            (2) by striking the last sentence of both subsection (a) and 
        subsection (b); and
            (3) by inserting after subsection (b) the following:

    ``(c) For the purposes of this section:
            ``(1) The term `employee' means--
                    ``(A) an employee in or under an Executive agency;
                    ``(B) an employee in or under the Office of the 
                Architect of the Capitol, the Botanic Garden, and the 
                Library of Congress, for whom a basic administrative 
                workweek is established under section 6101(a)(5) of this 
                title; and
                    ``(C) an individual employed by the government of 
                the District of Columbia.
            ``(2) The term `employee' does not include--
                    ``(A) an employee on the Isthmus of Panama in the 
                service of the Panama Canal Commission; or
                    ``(B) an employee or individual excluded from the 
                definition of employee in section 5541(2) of this title 
                other than an employee or individual excluded by clauses 
                (ii), (iii), and (xiv) through (xvii) of such section.
            ``(3) Notwithstanding paragraph (2), an individual who 
        otherwise would be excluded from the definition of employee 
        shall be deemed to be an employee for purposes of this section 
        if the individual's employing agency so elects, under guidelines 
        in regulations promulgated by the Office of Personnel Management 
        under subsection (d)(2).''.

[[Page 117 STAT. 1638]]

    (b) Guidelines.--Subsection (d) of section 5504 of such title, as 
redesignated by subsection (a), is amended--
            (1) by inserting ``(1)'' after ``(d)''; and
            (2) by adding at the end the following new paragraph:

    ``(2) The Office of Personnel Management shall provide guidelines by 
regulation for exemptions to be made by the heads of agencies under 
subsection (c)(3). Such guidelines shall provide for such exemptions 
only under exceptional circumstances.''.

SEC. 1125. SENIOR EXECUTIVE SERVICE AND PERFORMANCE.

    (a) Senior Executive Pay.--Chapter 53 of title 5, United States 
Code, is amended--
            (1) in section 5304--
                    (A) in subsection (g)(2)--
                          (i) in subparagraph (A) by striking 
                      ``subparagraphs (A)-(E)'' and inserting 
                      ``subparagraphs (A)-(D)''; and
                          (ii) in subparagraph (B) by striking 
                      ``subsection (h)(1)(F)'' and inserting 
                      ``subsection (h)(1)(D)'';
                    (B) in subsection (h)(1)--
                          (i) by striking subparagraphs (B) and (C);
                          (ii) by redesignating subparagraphs (D), (E), 
                      and (F) as subparagraphs (B), (C), and (D), 
                      respectively;
                          (iii) in clause (ii) by striking ``or'' at the 
                      end;
                          (iv) in clause (iii) by striking the period 
                      and inserting a semicolon; and
                          (v) by adding at the end the following new 
                      clauses:
            ``(iv) a Senior Executive Service position under section 
        3132;
            ``(v) a position in the Federal Bureau of Investigation and 
        Drug Enforcement Administration Senior Executive Service under 
        section 3151; or
            ``(vi) a position in a system equivalent to the system in 
        clause (iv), as determined by the President's Pay Agent 
        designated under subsection (d).''; and
                    (C) in subsection (h)(2)(B)--
                          (i) in clause (i)--
                                    (I) by striking ``subparagraphs (A) 
                                through (E)'' and inserting 
                                ``subparagraphs (A) through (C)''; and
                                    (II) by striking ``clause (i) or 
                                (ii)'' and inserting ``clause (i), (ii), 
                                (iii), (iv), (v), or (vii)''; and
                          (ii) in clause (ii)--
                                    (I) by striking ``paragraph (1)(F)'' 
                                and inserting ``paragraph (1)(D)''; and
                                    (II) by striking ``clause (i) or 
                                (ii)'' and inserting ``clause (i), (ii), 
                                (iii), (iv), (v), or (vi)'';
            (2) by amending section 5382 to read as follows:

``Sec. 5382. Establishment of rates of pay for the Senior Executive 
                        Service

    ``(a) Subject to regulations prescribed by the Office of Personnel 
Management, there shall be established a range of rates of basic pay for 
the Senior Executive Service, and each senior executive shall be paid at 
one of the rates within the range, based on individual performance, 
contribution to the agency's performance, or both, as determined under a 
rigorous performance management system. The lowest rate of the range 
shall not be less than the minimum rate of basic pay payable under 
section 5376, and the

[[Page 117 STAT. 1639]]

highest rate, for any position under this system or an equivalent system 
as determined by the President's Pay Agent designated under section 
5304(d), shall not exceed the rate for level III of the Executive 
Schedule. The payment of the rates shall not be subject to the pay 
limitation of section 5306(e) or 5373.
    ``(b) Notwithstanding the provisions of subsection (a), the 
applicable maximum shall be level II of the Executive Schedule for any 
agency that is certified under section 5307 as having a performance 
appraisal system which, as designed and applied, makes meaningful 
distinctions based on relative performance.
    ``(c) No employee may suffer a reduction in pay by reason of 
transfer from an agency with an applicable maximum rate of pay 
prescribed under subsection (b) to an agency with an applicable maximum 
rate of pay prescribed under subsection (a).''; and
            (3) in section 5383--
                    (A) in subsection (a) by striking ``which of the 
                rates established under section 5382 of this title'' and 
                inserting ``which of the rates within a range 
                established under section 5382''; and
                    (B) in subsection (c) by striking ``for any pay 
                adjustment under section 5382 of this title'' and 
                inserting ``as provided in regulations prescribed by the 
                Office under section 5385''.

    (b) Post-Employment Restrictions.--(1) Clause (ii) of section 
207(c)(2)(A) of title 18, United States Code, is amended to read as 
follows:
                    ``(ii) employed in a position which is not referred 
                to in clause (i) and for which that person is paid at a 
                rate of basic pay which is equal to or greater than 86.5 
                percent of the rate of basic pay for level II of the 
                Executive Schedule, or, for a period of 2 years 
                following the enactment of the National Defense 
                Authorization Act for Fiscal Year 2004, a person who, on 
                the day prior to the enactment of that Act, was employed 
                in a position which is not referred to in clause (i) and 
                for which the rate of basic pay, exclusive of any 
                locality-based pay adjustment under section 5304 or 
                section 5304a of title 5, was equal to or greater than 
                the rate of basic pay payable for level 5 of the Senior 
                Executive Service on the day prior to the enactment of 
                that Act,''.

    (2) Subchapter I of chapter 73 of title 5, United States Code, is 
amended by inserting at the end the following new section:

``Sec. 7302. Post-employment notification

    ``(a) <<NOTE: Deadline.>> Not later than the effective date of the 
amendments made by section 1106 of the National Defense Authorization 
Act for Fiscal Year 2004, or 180 days after the date of the enactment of 
that Act, whichever is later, the Office of Personnel Management shall, 
in consultation with the Attorney General and the Office of Government 
Ethics, promulgate regulations requiring that each Executive branch 
agency notify any employee of that agency who is subject to the 
provisions of section 207(c)(1) of title 18, as a result of the 
amendment to section 207(c)(2)(A)(ii) of that title by that Act.

    ``(b) The regulations shall require that notice be given before, or 
as part of, the action that affects the employee's coverage under 
section 207(c)(1) of title 18, by virtue of the provisions of section

[[Page 117 STAT. 1640]]

207(c)(2)(A)(ii) of that title, and again when employment or service in 
the covered position is terminated.''.
    (3) The table of sections for chapter 73 of title 5, United States 
Code, is amended by adding after the item relating to section 7301 the 
following:

``7302. Post-employment notification.''.

    (c) <<NOTE: 5 USC 5304 note.>> Effective Date and Applicability.--
(1) The amendments made by this section shall take effect on the first 
day of the first pay period beginning on or after the first January 1 
following the date of the enactment of this section.

    (2) The amendments made by subsection (a) may not result in a 
reduction in the rate of basic pay for any senior executive during the 
first year after the effective date of those amendments.
    (3) For the purposes of paragraph (2), the rate of basic pay for a 
senior executive shall be deemed to be the rate of basic pay set for the 
senior executive under section 5383 of title 5, United States Code, plus 
applicable locality pay paid to that senior executive, as of the date of 
the enactment of this Act.
    (4) Until otherwise provided by law, or except as otherwise provided 
by this section, any reference in a provision of law to a rate of basic 
pay that is above the minimum payable and below the maximum payable to a 
member of the Senior Executive Service shall be considered a reference 
to the rate of basic pay payable for level IV of the Executive Schedule.

SEC. 1126. <<NOTE: 5 USC 4701 note.>> DESIGN ELEMENTS OF PAY-FOR-
            PERFORMANCE SYSTEMS IN DEMONSTRATION PROJECTS.

    A pay-for-performance system may not be initiated under chapter 47 
of title 5, United States Code, after the date of the enactment of this 
Act, unless it incorporates the following elements:
            (1) Adherence to merit principles set forth in section 2301 
        of such title.
            (2) A fair, credible, and transparent employee performance 
        appraisal system.
            (3) A link between elements of the pay-for-performance 
        system, the employee performance appraisal system, and the 
        agency's strategic plan.
            (4) A means for ensuring employee involvement in the design 
        and implementation of the system.
            (5) Adequate training and retraining for supervisors, 
        managers, and employees in the implementation and operation of 
        the pay-for-performance system.
            (6) A process for ensuring ongoing performance feedback and 
        dialogue between supervisors, managers, and employees throughout 
        the appraisal period, and setting timetables for review.
            (7) Effective safeguards to ensure that the management of 
        the system is fair and equitable and based on employee 
        performance.
            (8) A means for ensuring that adequate agency resources are 
        allocated for the design, implementation, and administration of 
        the pay-for-performance system.

SEC. 1127. <<NOTE: 5 USC 1101 note.>> FEDERAL FLEXIBLE BENEFITS PLAN 
            ADMINISTRATIVE COSTS.

    (a) In General.--Notwithstanding any other provision of law, an 
agency or other employing entity of the Government which

[[Page 117 STAT. 1641]]

provides or plans to provide a flexible spending account option for its 
employees shall not impose any fee with respect to any of its employees 
in order to defray the administrative costs associated therewith.
    (b) Offset of Administrative Costs.--Each such agency or employing 
entity that offers a flexible spending account option under a program 
established or administered by the Office of Personnel Management shall 
periodically forward to such Office, or entity designated by such 
Office, the amount necessary to offset the administrative costs of such 
program which are attributable to such agency.
    (c) <<NOTE: Deadline.>> Reports.--(1) The Office shall submit a 
report to the Committee on Government Reform of the House of 
Representatives and the Committee on Governmental Affairs of the Senate 
no later than March 31, 2004, specifying the administrative costs 
associated with the Governmentwide program (referred to in subsection 
(b)) for fiscal year 2003, as well as the projected administrative costs 
of such program for each of the 5 fiscal years thereafter.

    (2) At the end of each of the first 3 calendar years in which an 
agency or other employing entity offers a flexible spending account 
option under this section, such agency or entity shall submit a report 
to the Office of Management and Budget showing the amount of its 
employment tax savings in such year which are attributable to such 
option, net of administrative fees paid under subsection (b).

SEC. 1128. <<NOTE: 5 USC 7101 note.>> EMPLOYEE SURVEYS.

    (a) In General.--Each agency shall conduct an annual survey of its 
employees (including survey questions unique to the agency and questions 
prescribed under subsection (b)) to assess--
            (1) leadership and management practices that contribute to 
        agency performance; and
            (2) employee satisfaction with--
                    (A) leadership policies and practices;
                    (B) work environment;
                    (C) rewards and recognition for professional 
                accomplishment and personal contributions to achieving 
                organizational mission;
                    (D) opportunity for professional development and 
                growth; and
                    (E) opportunity to contribute to achieving 
                organizational mission.

    (b) Regulations.--The Office of Personnel Management shall issue 
regulations prescribing survey questions that should appear on all 
agency surveys under subsection (a) in order to allow a comparison 
across agencies.
    (c) Availability of Results.--The results of the agency surveys 
under subsection (a) shall be made available to the public and posted on 
the website of the agency involved, unless the head of such agency 
determines that doing so would jeopardize or negatively impact national 
security.
    (d) Agency defined.--For purposes of this section, the term 
``agency'' means an Executive agency (as defined by section 105 of title 
5, United States Code).

SEC. 1129. HUMAN CAPITAL PERFORMANCE FUND.

    (a) In General.--Subpart D of part III of title 5, United States 
Code, is amended by inserting after chapter 53 the following:

[[Page 117 STAT. 1642]]

              ``CHAPTER 54--HUMAN CAPITAL PERFORMANCE FUND

    ``Sec.
    ``5401. Purpose.
    ``5402. Definitions.
    ``5403. Human Capital Performance Fund.
    ``5404. Human capital performance payments.
    ``5405. Regulations.
    ``5406. Agency plan.
    ``5407. Nature of payment.
    ``5408. Appropriations.

``Sec. 5401. Purpose

    ``The purpose of this chapter is to promote, through the creation of 
a Human Capital Performance Fund, greater performance in the Federal 
Government. Monies from the Fund will be used to reward agencies' 
highest performing and most valuable employees. This Fund will offer 
Federal managers a new tool to recognize employee performance that is 
critical to the achievement of agency missions.

``Sec. 5402. Definitions

    ``For the purpose of this chapter--
            ``(1) `agency' means an Executive agency under section 105, 
        but does not include the General Accounting Office;
            ``(2) `employee' includes--
                    ``(A) an individual paid under a statutory pay 
                system defined in section 5302(1);
                    ``(B) a prevailing rate employee, as defined in 
                section 5342(a)(2); and
                    ``(C) a category of employees included by the Office 
                of Personnel Management following the review of an 
                agency plan under section 5403(b)(1);
        but does not include--
                    ``(i) an individual paid at an annual rate of basic 
                pay for a level of the Executive Schedule, under 
                subchapter II of chapter 53, or at a rate provided for 
                one of those levels under another provision of law;
                    ``(ii) a member of the Senior Executive Service paid 
                under subchapter VIII of chapter 53, or an equivalent 
                system;
                    ``(iii) an administrative law judge paid under 
                section 5372;
                    ``(iv) a contract appeals board member paid under 
                section 5372a;
                    ``(v) an administrative appeals judge paid under 
                section 5372b; and
                    ``(vi) an individual in a position which is excepted 
                from the competitive service because of its 
                confidential, policy-determining, policy-making, or 
                policy-advocating character; and
            ``(3) `Office' means the Office of Personnel Management.

``Sec. 5403. Human Capital Performance Fund

    ``(a) <<NOTE: Establishment.>> There is hereby established the Human 
Capital Performance Fund, to be administered by the Office for the 
purpose of this chapter.

    ``(b)(1)(A) An agency shall submit a plan as described in section 
5406 to be eligible for consideration by the Office for an allocation

[[Page 117 STAT. 1643]]

under this section. An allocation shall be made only upon approval by 
the Office of an agency's plan.
    ``(B)(i) After the reduction for training required under section 
5408, ninety percent of the remaining amount appropriated to the Fund 
may be allocated by the Office to the agencies. Of the amount to be 
allocated, an agency's pro rata distribution may not exceed its pro rata 
share of Executive branch payroll.
    ``(ii) If the Office does not allocate an agency's full pro rata 
share, the undistributed amount remaining from that share will become 
available for distribution to other agencies, as provided in 
subparagraph (C).
    ``(C)(i) After the reduction for training under section 5408, ten 
percent of the remaining amount appropriated to the Fund, as well as the 
amount of the pro rata share not distributed because of an agency's 
failure to submit a satisfactory plan, shall be allocated among agencies 
with exceptionally high-quality plans.
    ``(ii) An agency with an exceptionally high-quality plan is eligible 
to receive an additional distribution in addition to its full pro rata 
distribution.
    ``(2) Each agency is required to provide to the Office such payroll 
information as the Office specifies necessary to determine the Executive 
branch payroll.

``Sec. 5404. Human capital performance payments

    ``(a)(1) Notwithstanding any other provision of law, the Office may 
authorize an agency to provide human capital performance payments to 
individual employees based on exceptional performance contributing to 
the achievement of the agency mission.
    ``(2) The number of employees in an agency receiving payments from 
the Fund, in any year, shall not be more than the number equal to 15 
percent of the agency's average total civilian full- and part-time 
permanent employment for the previous fiscal year.
    ``(b)(1) A human capital performance payment provided to an 
individual employee from the Fund, in any year, shall not exceed 10 
percent of the employee's rate of basic pay.
    ``(2) The aggregate of an employee's rate of basic pay, adjusted by 
any locality-based comparability payments, and human capital performance 
pay, as defined by regulation, may not exceed the rate of basic pay for 
Executive Level IV in any year.
    ``(3) Any human capital performance payment provided to an employee 
from the Fund is in addition to any annual pay adjustment (under section 
5303 or any similar provision of law) and any locality-based 
comparability payment that may apply.
    ``(c) No monies from the Human Capital Performance Fund may be used 
to pay for a new position, for other performance-related payments, or 
for recruitment or retention incentives paid under sections 5753 and 
5754.
    ``(d)(1) An agency may finance initial human capital performance 
payments using monies from the Human Capital Performance Fund, as 
available.
    ``(2) In subsequent years, continuation of previously awarded human 
capital performance payments shall be financed from other agency funds 
available for salaries and expenses.

``Sec. 5405. Regulations

    ``The Office shall issue such regulations as it determines to be 
necessary for the administration of this chapter, including the

[[Page 117 STAT. 1644]]

administration of the Fund. The Office's regulations shall include 
criteria governing--
            ``(1) an agency plan under section 5406;
            ``(2) the allocation of monies from the Fund to agencies;
            ``(3) the nature, extent, duration, and adjustment of, and 
        approval processes for, payments to individual employees under 
        this chapter;
            ``(4) the relationship to this chapter of agency performance 
        management systems;
            ``(5) training of supervisors, managers, and other 
        individuals involved in the process of making performance 
        distinctions; and
            ``(6) the circumstances under which funds may be allocated 
        by the Office to an agency in amounts below or in excess of the 
        agency's pro rata share.

``Sec. 5406. Agency plan

    ``(a) To be eligible for consideration by the Office for an 
allocation under this section, an agency shall--
            ``(1) develop a plan that incorporates the following 
        elements:
                    ``(A) adherence to merit principles set forth in 
                section 2301;
                    ``(B) a fair, credible, and transparent employee 
                performance appraisal system;
                    ``(C) a link between the pay-for-performance system, 
                the employee performance appraisal system, and the 
                agency's strategic plan;
                    ``(D) a means for ensuring employee involvement in 
                the design and implementation of the system;
                    ``(E) adequate training and retraining for 
                supervisors, managers, and employees in the 
                implementation and operation of the pay-for-performance 
                system;
                    ``(F) a process for ensuring ongoing performance 
                feedback and dialogue between supervisors, managers, and 
                employees throughout the appraisal period, and setting 
                timetables for review;
                    ``(G) effective safeguards to ensure that the 
                management of the system is fair and equitable and based 
                on employee performance; and
                    ``(H) a means for ensuring that adequate agency 
                resources are allocated for the design, implementation, 
                and administration of the pay-for-performance system;
            ``(2) upon approval, receive an allocation of funding from 
        the Office;
            ``(3) make payments to individual employees in accordance 
        with the agency's approved plan; and
            ``(4) provide such information to the Office regarding 
        payments made and use of funds received under this section as 
        the Office may specify.

    ``(b) The Office, in consultation with the Chief Human Capital 
Officers Council, shall review and approve an agency's plan before the 
agency is eligible to receive an allocation of funding from the Office.
    ``(c) The Chief Human Capital Officers Council shall include in its 
annual report to Congress under section 1303(d) of the Homeland Security 
Act of 2002 an evaluation of the formulation and implementation of 
agency performance management systems.

[[Page 117 STAT. 1645]]

``Sec. 5407. Nature of payment

    ``Any payment to an employee under this section shall be part of the 
employee's basic pay for the purposes of subchapter III of chapter 83, 
and chapters 84 and 87, and for such other purposes (other than chapter 
75) as the Office shall determine by regulation.

``Sec. 5408. Appropriations

    ``There is authorized to be appropriated $500,000,000 for fiscal 
year 2004, and, for each subsequent fiscal year, such sums as may be 
necessary to carry out the provisions of this chapter. In the first year 
of implementation, up to 10 percent of the amount appropriated to the 
Fund shall be available to participating agencies to train supervisors, 
managers, and other individuals involved in the appraisal process on 
using performance management systems to make meaningful distinctions in 
employee performance and on the use of the Fund.''.
    (b) Clerical Amendment.--The table of chapters for part III of title 
5, United States Code, is amended by inserting after the item relating 
to chapter 53 the following:

            Human Capital Performance Fund                       5401''.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

                  Subtitle A--Matters Relating to Iraq

Sec. 1201. Medical assistance to Iraqi children injured during Operation 
           Iraqi Freedom.
Sec. 1202. Report on the conduct of Operation Iraqi Freedom.
Sec. 1203. Report on Department of Defense security and reconstruction 
           activities in Iraq.
Sec. 1204. Report on acquisition by Iraq of advanced weapons.
Sec. 1205. Sense of Congress on use of small businesses, minority-owned 
           businesses, and women-owned businesses in efforts to rebuild 
           Iraq.

           Subtitle B--Matters Relating to Export Protections

Sec. 1211. Review of export protections for military superiority 
           resources.
Sec. 1212. Report on Department of Defense costs relating to national 
           security controls on satellite exports.

         Subtitle C--Administrative Requirements and Authorities

Sec. 1221. Authority to use funds for payment of costs of attendance of 
           foreign visitors under Regional Defense Counterterrorism 
           Fellowship Program.
Sec. 1222. Recognition of superior noncombat achievements or performance 
           by members of friendly foreign forces and other foreign 
           nationals.
Sec. 1223. Expansion of authority to waive charges for costs of 
           attendance at George C. Marshall European Center for Security 
           Studies.
Sec. 1224. Authority for check cashing and currency exchange services to 
           be provided to foreign military members participating in 
           certain activities with United States forces.
Sec. 1225. Depot maintenance and repair work on certain types of trainer 
           aircraft to be transferred to foreign countries as excess 
           aircraft.

       Subtitle D--Other Reports and Sense of Congress Statements

Sec. 1231. Annual report on the NATO Prague Capabilities Commitment and 
           the NATO Response Force.
Sec. 1232. Report on actions that could be taken regarding countries 
           that initiate certain legal actions against United States 
           officials or members of the Armed Forces.
Sec. 1233. Sense of Congress on redeployment of United States forces in 
           Europe.
Sec. 1234. Sense of Congress concerning Navy port calls in Israel.

[[Page 117 STAT. 1646]]

                  Subtitle A--Matters Relating to Iraq

SEC. 1201. MEDICAL ASSISTANCE TO IRAQI CHILDREN INJURED DURING OPERATION 
            IRAQI FREEDOM.

    (a) Assistance.--Subject to subsections (c) and (d), the Secretary 
of Defense shall, to the maximum extent practicable, provide all 
necessary health care and related support to provide needed medical 
assistance to Iraqi children who, as determined by the Secretary of 
Defense, were injured during and as a result of Operation Iraqi Freedom. 
Such assistance shall be provided in an expeditious manner.
    (b) Related Support.--Related support under subsection (a) includes 
transportation on aeromedical evacuation aircraft of the Department of 
Defense on a space-available basis.
    (c) Limitations Relating to Medical Care.--Assistance may be 
provided to a child under subsection (a)--
            (1) only if adequate treatment from other sources in Iraq or 
        neighboring countries is not available; and
            (2) only after completion of an evaluation by a physician or 
        other appropriate medical personnel of the United States Armed 
        Forces.

    (d) Limitation Relating to United States Military Operations.--
Assistance may be provided to a child under subsection (a) only if the 
provision of such assistance would not adversely affect military 
operations of the United States.

SEC. 1202. REPORT ON THE CONDUCT OF OPERATION IRAQI FREEDOM.

    (a) Report Required.--(1) <<NOTE: Deadline.>> Not later than March 
31, 2004, the Secretary of Defense shall submit to the congressional 
defense committees and the Permanent Select Committee on Intelligence of 
the House of Representatives and the Select Committee on Intelligence of 
the Senate a report on the preparation for and conduct of military 
operations under Operation Iraqi Freedom from March 19, 2003, to May 1, 
2003.

    (2) The report shall be prepared in consultation with the Chairman 
of the Joint Chiefs of Staff, the commander of the United States Central 
Command, and such other officers and officials as the Secretary 
considers appropriate.
    (b) Content.--The report shall include a discussion, with a 
particular emphasis on accomplishments and shortcomings and on near-term 
and long-term corrective actions to address those shortcomings, of the 
following:
            (1) The military objectives of the international coalition 
        conducting Operation Iraqi Freedom, the military strategy 
        selected to achieve the objectives, and an assessment of the 
        execution of the military strategy.
            (2) The deployment process, including the adaptability of 
        the process to unforeseen contingencies and changing 
        requirements.
            (3) The effectiveness of the reserve component forces used 
        in Operation Iraqi Freedom, including the reserve component 
        mobilization process, the timeliness of mobilization 
        notification, training, operational effectiveness in theater, 
        and subsequent demobilization.
            (4) The use and performance of major items of United States 
        military equipment, weapon systems, and munitions

[[Page 117 STAT. 1647]]

        (including items classified under special access procedures and 
        items drawn from prepositioned stocks) and any expected effects 
        of the experience with the use and performance of those items on 
        the doctrinal and tactical employment of such items and on plans 
        for continuing the acquisition of such items.
            (5) The effectiveness of joint air operations, including the 
        doctrine for the employment of close air support in the varied 
        environments of Operation Iraqi Freedom, and the effectiveness 
        of attack helicopter operations.
            (6) The use of special operations forces, including 
        operational and intelligence uses classified under special 
        access procedures.
            (7) The scope of logistics support, including support from 
        other nations.
            (8) The incidence of accidental fratricide, together with a 
        discussion of the effectiveness of the tracking of friendly 
        forces and of the combat identification systems in mitigating 
        friendly fire incidents.
            (9) The adequacy of spectrum and bandwidth to transmit all 
        necessary information to operational forces and assets, 
        including unmanned aerial vehicles, ground vehicles, and 
        individual soldiers.
            (10) The effectiveness of information operations, including 
        the effectiveness of Commando Solo and other psychological 
        operations assets, in achieving established objectives, together 
        with a description of technological and other restrictions on 
        the use of psychological operations capabilities.
            (11) The adequacy of United States and coalition 
        intelligence and counterintelligence systems and personnel, 
        including contributions regarding bomb damage assessments and 
        particularly including United States tactical intelligence and 
        related activities (TIARA) programs and the Joint Military 
        Intelligence Program (JMIP), as well as the adequacy of such 
        support to facilitate searches for weapons of mass destruction.
            (12) The rapid insertion and integration, if any, of 
        developmental but mission-essential equipment during all phases 
        of the operation.
            (13) The most critical lessons learned that could lead to 
        long-term doctrinal, organizational, and technological changes 
        (including new equipment, weapons systems, and munitions) and 
        the probable effects that an implementation of those changes 
        would have on current visions, goals, and plans for 
        transformation of the Armed Forces and for joint and combined 
        operations.
            (14) The role of the law of armed conflict in the planning 
        and execution of military operations by United States forces and 
        the other coalition forces and the effects on operations of 
        Iraqi compliance or noncompliance with the law of armed 
        conflict.
            (15) The policies and procedures relating to the media, 
        including the use of embedded media.
            (16) The results of a study, carried out by the Secretary of 
        Defense, regarding the availability of family support services 
        provided for the dependents of members of the National Guard and 
        other reserve components of the Armed Forces who are called or 
        ordered to active duty.

[[Page 117 STAT. 1648]]

            (17) The direct and indirect cost of military operations, 
        including an assessment of the total incremental expenditures 
        made by the Department of Defense as a result of Operation Iraqi 
        Freedom.

    (c) Forms of Report.--The report shall be submitted in unclassified 
form with a classified annex, if necessary.

SEC. 1203. REPORT ON DEPARTMENT OF DEFENSE SECURITY AND RECONSTRUCTION 
            ACTIVITIES IN IRAQ.

    (a) Report Required.--Not <<NOTE: Deadline.>>  later than 90 days 
after the date of the enactment of this Act, the Secretary of Defense 
shall submit to Congress a report on the security and reconstruction 
activities of the Department of Defense in Iraq.

    (b) Report Elements.--The report shall discuss the range of 
infrastructure reconstruction, civil administration, humanitarian 
assistance, interim governance, and political development activities 
undertaken in Iraq by officials of the Department and by those civilians 
reporting to the Secretary of Defense and the missions undertaken in 
Iraq by United States military forces. In particular, the report shall 
include a discussion of the following:
            (1) The evolution of the organizational structure of the 
        civilian groups reporting to the Secretary, including the Office 
        of Reconstruction and Humanitarian Assistance and the Office of 
        the Coalition Provisional Authority, on issues of Iraqi 
        administration and reconstruction and the factors influencing 
        that evolution.
            (2) The relationship of the Department of Defense with other 
        United States departments and agencies involved in 
        administration and reconstruction planning and execution in 
        Iraq.
            (3) The relationship of Department of Defense entities, 
        including the Office of Reconstruction and Humanitarian 
        Assistance and the Office of the Coalition Provisional 
        Authority, with intergovernmental and nongovernmental 
        organizations contributing to the reconstruction and governance 
        efforts.
            (4) Progress made to the date of the report in--
                    (A) rebuilding Iraqi infrastructure;
                    (B) providing for the humanitarian needs of the 
                Iraqi people;
                    (C) reconstituting the Iraqi governmental 
                bureaucracy and its provision of services;
                    (D) developing mechanisms of fully transitioning 
                Iraq to representative self-government; and
                    (E) recruiting, training, and fielding Iraqi police 
                and military forces.
            (5) Progress made to the date of the report by Department of 
        Defense civilians and military personnel in accounting for any 
        Iraqi weapons of mass destruction and associated weapons 
        capabilities.
            (6) Progress made to the date of the report by United States 
        military personnel in providing security in Iraq and in 
        transferring security functions to a reconstituted Iraqi police 
        force and military.
            (7) The Secretary's assessment of the scope of the ongoing 
        needed commitment of United States military forces and of the 
        remaining tasks to be completed by Departm