NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2005
(House of Representatives - May 19, 2004)

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[Pages H3260-H3358]
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        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2005

  The SPEAKER pro tempore. Pursuant to House Resolution 648 and rule 
XVIII, the Chair declares the House in the Committee of the Whole House 
on the State of the Union for the consideration of the bill, H.R. 4200.

                              {time}  1433


                     In the Committee of the Whole

  Accordingly, the House resolved itself into the Committee of the 
Whole House on the State of the Union for the consideration of the bill 
(H.R. 4200) to authorize appropriations for fiscal year 2005 for 
military activities of the Department of Defense, to prescribe military 
personnel strengths for fiscal year 2005, and for other purposes, with 
Mr. Hastings of Washington in the chair.
  The Clerk read the title of the bill.
  The CHAIRMAN. Pursuant to the rule, the bill is considered as having 
been read the first time.
  Under the rule, the gentleman from California (Mr. Hunter) and the 
gentleman from Missouri (Mr. Skelton) each will control 60 minutes.
  The Chair recognizes the gentleman from California (Mr. Hunter).
  Mr. HUNTER. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, this is a bill that was put together with the 
bipartisan work of all members of the House Committee on Armed 
Services, the defense bill for the United States. It was engaged in 
with a great deal of detail by Republicans and Democrats to try to do 
the very best we could for the people that wear the uniform of the 
United States.
  Beyond that, Mr. Chairman, we have had enormous publicity the last 
number of days about the mess at Abu Ghraib. I estimated we have 
probably devoted as much media attention to that mess involving now, as 
identified, some seven personnel, as we did to the Normandy invasion, 
and that is an imbalance. It is time to refocus.
  The subjects of the refocus should be the 135,000 great personnel 
doing their job in Iraq and the tens of thousands doing their job in 
Afghanistan and around the world in this war against terrorism. So I 
just thought I might start out, Mr. Chairman, by reminding my 
colleagues that while that much-publicized mess was taking place with 
just a few people at Abu Ghraib Prison, Master Sergeant Tony Prior was 
taking on an enemy position in Afghanistan and was single-handedly 
taking out four insurgents, the last one in hand-to-hand combat to win 
the Silver Star.
  Jeffrey Bohr, Gunnery Sergeant Jeffrey Bohr was over in Iraq laying 
down a field of fire to protect his wounded Marines who otherwise would 
have been killed, and he laid down that field of fire until he himself 
was killed.
  I have dozens of such citations, Mr. Chairman, on the leadership 
desk, and I would hope that Members walk down. And if their heads are 
filled with all of the publicity about a few bad apples at Abu Ghraib 
Prison, I want them to pick up those citations and read about the good 
apples, the great Americans who fill out this 2.5-million-person force 
that wear the uniform of the United States, active, Guard and Reserve.
  This bill is a big bill, and my great partner, the gentleman from 
Missouri (Mr. Skelton), the ranking member, have worked on it along 
with all of the members of the committee. Almost all of our members 
have gone to Iraq now. A lot of them have also gone to Afghanistan, 
some of them multiple times. We have visited troops, held extensive 
hearings, and we put together a bill that we think supplies the 
wherewithal, the equipment for our troops to get the job done.
  Let me go over a couple of those things, and then I want to listen to 
my colleagues on the Democrat side of the aisle who have been such 
great partners in this endeavor.
  First, we have tried to focus on this theater in Iraq because our 
people need equipment, they need to have the very best equipment. They 
are over there in the heat and in enemy fire with oppressive living 
conditions. We have devoted and focused our dollars on that theater, so 
we pulled some money out of some areas that are not right now relevant, 
closely relevant, to that warfighting theater, more long-range things, 
things that are peripheral.
  We focused that money on things like force protection, up-armored 
Humvees, steel for the trucks, the 5-ton trucks for the Army, 7-ton 
trucks for the Marine Corps, replenishment of ammunition, surveillance 
capability so we can see the bad guys and engage them before they can 
get in tight to our troops. All of the leverage we can give them with 
high technology, we give them in this bill.
  We also look to their families. We have this 3.5 percent pay raise 
across the board, we have an expansion of the amount of money that our 
troops now get for hazardous duty and for separation from their family. 
We have also put in a survivor benefit for the widows of our military 
people and for the widowers of our military people so they will not 
have this offset against Social Security.
  We have tried to do a lot of things on the people's side. We have a 
great bill with our military housing, our MILCON projects. We have 
privatization, the cap removed from 2006 on, and we are going to work 
to make sure there is no seam between 2005 and 2006.
  Beyond that, the ranking member and I and a number of other folks 
have been working and looking at force levels. We now have 10 Army 
divisions; we used to have 18 in 1991. We have a relatively small 
Marine Corps, roughly 177,000. We realize we are going to need more 
people.
  And for families who say, How come Joe is not here again for 
Christmas, whether he is Guard, Reserve, or active, one answer is, we 
have such a small force that the people have to go more often. And so 
we have increased in strength by some 10,000 this year, 10,000 next 
year and 10,000 the next year, and that coincides with Chief of Staff 
of the Army Schumacher's plan to increase the fighting strength of the 
U.S. Army by three brigades this year, three brigades next year, and 
four brigades the year after to add 10 new fighting brigades to the 
Army for a total of 43. We have also increased the U.S. Marines Corps 
by 3,000 personnel per year for the next 3 years.
  To do that and to do a lot of the other things that we are flowing to 
the troops, we have also bolted onto this package a supplemental for 
$25 billion. That supplemental will handle the closing months of this 
year to make sure that our troops do not run thin on supplies or 
replenishment or new capabilities in the last few months of this year. 
It also helps General Schumacher to stand up this new modular force 
that he is putting into effect and reshaping the Army.
  So we have that $25 billion bolted on, and that has lots of good 
stuff for the troops. It helps to sustain us through any tough things 
that we may see in the last several months of this year.
  Now, we are going to need a new supplemental. We all know that. The 
chairman of the Committee on the Budget, the gentleman from Iowa (Mr. 
Nussle) talked about that and put a $50 billion wedge in the budget, 
acknowledging that fact; and we are going to have to come around at 
some point and have a new supplemental to get through 2005. It all 
depends on how far we can reasonably project. We think this $25 billion 
bolt-on that we are doing will do the right things for the troops.
  We have gone right down through the unfunded requirements list, 
things that our Army, Navy, Marine Corps, and our Air Force sent to us, 
things that they said we need, Congress, we do not have the money for 
them. And we went in and paid for those things so we can pull them out 
and deliver them to the troops in this supplemental we have bolted on.
  So this is a great bill. I want to commend the ranking member and all 
of the great members of the Armed Services Committee. We have great 
subcommittee chairmen who have worked some very tough issues; their 
ranking members have worked them hard, and we have brought this bill, 
in what is a

[[Page H3261]]

contentious political season, we brought this bill out on a 60-0 vote. 
It was a 60-0 vote because we have common ground, and that common 
ground is the Armed Forces of the United States and their well-being.
  Mr. Chairman, I reserve the balance of my time.
  Mr. SKELTON. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I rise to urge my colleagues to support this national 
defense authorization bill. I will leave aside my disappointment on the 
rule. We are past that, and we are now discussing the bill in general 
debate.
  This bill is a good bill. It is a solid bill, and I wish first to 
thank the chairman, the gentleman from California (Mr. Hunter) for his 
work, for his collegial markup, and for his leadership on the bill, as 
it was in the committee and reported to the House. We thank the 
gentleman for that.
  This bill is an important one because it funds the military for a 
year, which is good news for the United States military. For those in 
uniform at the individual level, it makes a number of improvements on 
how our soldiers live. Most significantly, it raises the cap on family 
housing construction. Military service can weigh heavy on a family, and 
I believe it is much easier for a deployed soldier to know that the 
family back home is living in decent conditions.
  The 3.5 percent larger paycheck, of course, helps. The bill also 
increases the end strength, that is, the troop strength of the Army and 
Marine Corps. Since 1995, I have been urging this and as a result in 
the supplemental part, the $25 billion part of this bill, which is 
something which should have been done and is done, we are increasing 
the Army in strength by 10,000, 30,000 over 3 years; and the Marine 
Corps by 3,000, 9,000 over 3 years.
  More broadly, the bill provides funding for the next few months of 
operations in Iraq and Afghanistan. I was disappointed to receive a 
budget request that pretended we could not foresee at least some of the 
level of military activity. I recently wrote that, based on historical 
precedent, U.S. forces may be in Iraq for the next 50 years.

                              {time}  1445

  Whether that is true or not, we can be sure they will be there for 
more than 3 months.
  We are in a war. Neither the country nor this Congress was united in 
initiating the conflict, but we stand now as one with the soldiers, 
sailors, airmen and Marines fighting it. I expect that much of the 
debate over the next 2 days will concern Iraq, and rightly so. Let me 
mention two points, if I may.
  First, events of recent weeks, from open questions relating to the 
transition of sovereignty, to real questions about the role of private 
military contractors providing security services, to the disturbing 
events at Abu Ghraib prison highlight the Congress's need to get better 
information and to take our oversight role more seriously. These are 
issues critical to our country's security and to our role in the world. 
This bill makes some steps in those directions.
  Second, though, it is important that we not let a focus on the 
current conflict blind us to the needs of the future. This bill says 
fiscal year 2005; but the force structures, platforms and policies 
addressed in it will shape the military for 40 years or more. We have 
to be prepared for the full range of threats to our Nation and its 
interests.
  We have learned lessons from the past. We have learned some real-life 
lessons from attempting to rapidly acquire equipment to protect our 
forces in Iraq. Those lessons have been incorporated into this bill 
where there is streamlining acquisition language to help protect those 
who are in harm's way.
  I am disappointed in the bill's approach to nuclear weapons 
development and not going further to fund the foreseeable costs of our 
current operations. I was disappointed, too, that the amendment of the 
gentlewoman from California (Ms. Linda Sanchez) to conform the Uniform 
Code of Military Justice was not allowed to be on this floor.
  But, Mr. Chairman, we are at war. A few moments ago, we paid tribute 
to those who have served and do serve in uniform on a resolution 
involving the poppy, which we all wear. But the best thing we can do 
for those currently serving is to pass this bill to make sure they have 
the wherewithal to continue fighting and keeping the peace and 
stability in those far corners of the world. It is one way to say thank 
you, we support you, not just in words but by our votes today.
  Mr. Chairman, I reserve the balance of my time.
  Mr. HUNTER. Mr. Chairman, I yield 3 minutes to the very distinguished 
gentleman from Colorado (Mr. Hefley), chairman of the Subcommittee on 
Readiness, the subcommittee which oversees the biggest increment of the 
defense budget, all operations, maintenance and military construction.
  Mr. HEFLEY. Mr. Chairman, today the U.S. military is deployed around 
the world in support of the war against terrorism, the efforts to 
rebuild Afghanistan and Iraq, and defense of the American homeland and 
U.S. interests abroad. H.R. 4200, the National Defense Authorization 
Act For Fiscal Year 2005, provides the resources necessary to keep the 
U.S. military ready to overcome any challenge.
  H.R. 4200 includes operations and maintenance funds for training, 
peacetime operational tempo and depot maintenance, as well as resources 
to support the troops in Iraq and Afghanistan for the first months of 
fiscal year 2005. Of the $25 billion included in the bill for Operation 
Iraqi Freedom and Operation Enduring Freedom, $16 billion is directly 
dedicated to maintaining or improving our military readiness.
  H.R. 4200 fully funds the President's environmental programs, 
including $3.8 billion for pollution prevention, conservation, 
compliance, and cleanup activities of the Department of Defense. The 
bill also recognizes and rewards the civilian personnel who support the 
global war on terror by authorizing additional pay for civilians who 
are proficient in foreign languages and extending health benefits to 
government employees who are mobilized Reservists.
  In keeping with the theme of this year's bill, The Year of the 
Soldier, H.R. 4200 contains additional funds for soldier equipment and 
protective gear, authorizes the Secretary of Defense to reimburse those 
soldiers who needed protective body armor, but had to buy it 
themselves, and provides $9.9 billion for military construction and 
family housing. The bill also contains a provision to eliminate the cap 
on military housing privatization program as of October 1, 2005, saving 
this successful program which has improved housing for tens of 
thousands of military families from termination.
  Finally, H.R. 4200 contains a provision that would delay the next 
base closure round until 2007, pending DoD reports to Congress on a 
number of absolutely critical, yet still unresolved, infrastructure-
related issues. This provision is neither an election-year stunt nor an 
effort to kill BRAC forever. To the contrary, it is reflective of deep 
bipartisan concern that the U.S. military is undergoing too much 
turbulence to allow the 2005 BRAC round to be a fully informed, 
effective process.
  We are a Nation at war against terrorism. Our military is rebuilding 
Afghanistan and Iraq. The Department of Defense is contemplating the 
most significant overseas basing changes since World War II. The 
military requirements to defend the homeland continue to evolve and 
military transformation continues to change the basic training and 
operational requirements of our Nation's forces. Each of these issues 
is a significant factor in determining the domestic basing needs of our 
Nation's military, and each of these issues is not yet resolved. Until 
the Department resolves these issues and Congress has the opportunity 
to review and approve these decisions, a base closure round is 
premature and is sure to result in poor closure and realignment 
decisions. As a Nation, we simply cannot afford to close a military 
installation in the 2005 BRAC round only to discover in 2010 that the 
assets at that base were both irreplaceable and now lost forever.
  Mr. Chairman, this is a good bill. I encourage the support of 
everyone for this piece of legislation.
  Mr. SKELTON. Mr. Chairman, I yield 3 minutes to the gentleman from 
Texas (Mr. Ortiz), the ranking member on the Subcommittee on Readiness.

[[Page H3262]]

  (Mr. ORTIZ asked and was given permission to revise and extend his 
remarks.)
  Mr. ORTIZ. Mr. Chairman, I want to thank the gentleman from 
California and the gentleman from Missouri for the fine work that they 
have done in putting this bill together; and, of course, as the ranking 
member of the Subcommittee on Readiness, I am pleased to join the 
gentleman from Colorado in commending H.R. 4200 to my colleagues' 
attention and urge them to vote for this great bill because we have 
worked together as a nonpartisan group. We have every reason to be 
proud of this bill as a whole and the readiness-related portions in 
particular. It reflects fair and thoughtful leadership and a lot of 
hard, bipartisan work on the part of the committee. Again I thank the 
gentleman from Colorado for that. Also I want to say thank you to our 
staff because it is not easy when you are working on a $400 billion 
bill to be able to put everything together and bring it to the floor. 
So to the staff, thank you for a great job.
  I would first like to say how proud I am of our military forces and 
of the thousands of civilian workers who work night and day to support 
our military. We owe them a debt of gratitude for their service.
  Mr. Chairman, we are a Nation at war. This bill that we have put 
together is a prudent way to approach the difficult balancing of 
competing demands to assure that our troops have what they need for 
success. To that end, we have authorized nearly $120 billion for their 
peacetime operating and maintenance requirements. But, of course, we 
are not in a peacetime environment. For example, the Army testified 
that coming into this fiscal year it had $1.2 billion of unfunded 
maintenance requirements as it began bringing its equipment back from 
Iraq and Afghanistan.
  Not only that, we are now depending a little too much on the Reserves 
and the National Guard. It has come to my attention that sometimes this 
equipment stays behind. They do not bring it back with them. The 
gentlemen who serve as National Guardsmen and Reserves are first 
responders in our communities. When they come back, they might not even 
have the equipment to train with because it is left behind. H.R. 4200 
makes some progress on those concerns, but we know that we can expect a 
significant bill to come due when we begin to reset the force, repair 
the equipment as it returns from the war, and restock our prepositioned 
assets. That bill will be billions of dollars.
  Today I ask my colleagues to support this bill. It is a good bill. It 
is a bipartisan bill. This is exactly what our troops need.
  Mr. HUNTER. Mr. Chairman, I want to thank the gentleman from Colorado 
and the gentleman from Texas for their great work.
  Mr. Chairman, I yield 5 minutes to the gentleman from New Jersey (Mr. 
Saxton), who chairs the Subcommittee on Terrorism which oversees all of 
our special operators and who has spent a ton of his time this last 
year going to some very inconvenient places to make sure that our 
troops get what they need.
  Mr. SAXTON. Mr. Chairman, let me begin by thanking and congratulating 
the chairman and the ranking member for the great leadership that they 
have each shown in bringing us through this process beginning in 
January, working through February, March and April; and here we are on 
May 20 taking another step forward in this process of making sure that 
we provide the resources that are needed by our troops in this, The 
Year of the Troops, which is what this bill is named after.
  I rise in strong support of the bill, the National Defense 
Authorization Act for Fiscal Year 2005. Last week the Committee on 
Armed Services approved this bill unanimously, continuing the 
committee's tradition of bipartisanship in addressing the defense needs 
for our Nation. The bill contains several initiatives that will aid the 
armed services and the Federal Government as a whole in the ongoing war 
against terrorism and contains several promising provisions that will 
help to transform the military services.
  At the request of the gentleman from California (Mr. Hunter), we 
adopted the theme The Year of the Soldier and emphasized initiatives 
that would directly assist our deployed forces. We are aware of the 
challenges they face in Iraq and Afghanistan and want to do everything 
we can to make conditions safer for them and to make it possible for 
them to be ever so effective. An important element in the committee's 
Year of the Soldier theme is force protection, and that is a concern 
that influenced all we did this year.
  We have taken a number of actions in this bill to provide the 
resources and direction to better equip our men and women who are 
serving selflessly in dangerous conditions overseas. In this bill, we 
provide for our valiant warriors in the Special Operations Command. We 
have authorized funds, for example, for several items in the SOCOM 
commander's unfunded requirements priority list and have authorized 
additional funding that would provide some necessary operational 
flexibility for special operations forces on the ground.
  We continue to believe that the best way to fight terrorism is to 
keep terrorists far from our shores. I continue to believe that the 
Special Operations Command is one of our most effective weapons in this 
mission. This bill bolsters the command's capabilities in several ways.
  Next, the bill provides increased funding to accelerate the 
development and fielding of advanced technologies for emerging critical 
operations needs, including projection of our forces against improvised 
explosive devices and rocket and mortar attack and to provide real-time 
surveillance of suspected enemy activities.
  I could add here, Mr. Chairman, there is a very strong provision 
which we added late in the game because at a hearing on April 21 it 
became apparent that it took just too long to field new kinds of 
technologies. We have provided a special program to provide 
capabilities for the chief of staff of the Army and his staff to 
provide in a more quick fashion the capabilities that are needed by our 
soldiers.
  In addition, this bill provides increased funding for combating 
terrorism in terms of technological support to accelerate the 
development and fielding of advanced technologies for the fight against 
terrorism.
  Finally, we continue to expand our successful initiative of last year 
to develop chemical and biological defense countermeasures.
  Mr. Chairman, I would be remiss if I did not say a word about 
something that we are doing for those who have fought in previous wars. 
We have found the resources this year to add $7 billion over a 10-year 
period to bolster and bring up to date the survivors benefit program 
that retired individuals and their spouses are able to avail themselves 
of.

                              {time}  1500

  We move the percentage of survivors benefits, that is, generally 
widows, from a 35 percent level to a 55 percent level.
  This SBP program is an extremely important program because what 
happened was that in the past, when a member who served in the military 
passed away, his surviving spouse, usually, of course, his widow, would 
receive 55 percent of his retired pay up until she turned 62 and then 
that percentage would drop to 35 percent.
  We have fixed that in providing $7 billion over 10 years to bring 
that 35 percent back up over a 4-year period to the 55 percent level. 
This is important. It is a way of saying thank you to those who have 
served our country and is a very important part of our bill.
  In closing, I just want to express my appreciation to the members of 
the Terrorism, Unconventional Threats and Capabilities Subcommittee, 
who contributed so mightily to this bill, and particularly thank the 
gentleman from Massachusetts (Mr. Meehan), the ranking member, with 
whom I have worked closely over the years.
  This is an excellent bill. I congratulate the chairman for bringing 
it here. I urge all Members to vote ``yes'' on this bill.
  Mr. SKELTON. Mr. Chairman, I yield 2 minutes to the gentleman from 
New

[[Page H3263]]

York (Mr. Israel), a member of the committee.
  Mr. ISRAEL. Mr. Chairman, I thank the gentleman for yielding me this 
time.
  I rise in strong support of this authorization. And, of course, we 
have to give credit where credit is due, and that is to the gentleman 
from California (Mr. Hunter), chairman, and to the gentleman from 
Missouri (Mr. Skelton), ranking member.
  This bill includes funding for transformational weapons systems that 
will help our military meet the challenges of the 21st century, 
billions of dollars for new naval destroyers, Army combat systems, and 
fighter aircraft programs.
  These programs may be worthwhile, but I remember back in January when 
I was on a C-130 traveling from Kuwait to Baghdad, a member of the 1st 
Armored Division looked at me and said, Congressman, you have got to do 
something about these improvised explosive devices, these roadside 
bombs. They are the biggest threat that we face.
  There has been a lot of talk in Washington about countering these 
threats with hardware, with systems that are lighter and leaner and 
faster, more precise, more agile, more lethal; and I understand the 
need for that hardware transformation, but we also need a software 
transformation. Our committee had Major General Robert Scales before 
us, he is the former Commandant of the U.S. Army War College; and he 
talked about the fact that our troops have exquisite situational 
awareness, but we need to invest them with more cultural awareness.
  They know where every tank is, their speed, their direction, their 
firepower, how they are arrayed. What we need to make sure of is that 
they know who is in the tank, what language they are speaking, not just 
their firepower but their willpower. And that is why I want to thank 
our chairman and ranking member for including in this authorization two 
amendments that I offered which will establish a Defense Language 
Office within the Department of Defense and require the Secretary of 
Defense to assess the military's foreign language and cultural 
awareness capabilities. Those skills are just essential to success in 
the future.
  Mr. Chairman, it is indisputable to us that our current forces are 
doing an extraordinary job of adapting to challenges on the ground. 
They deserve defense budgets that anticipate 21st century changes, not 
Cold War challenges. They deserve defense budgets that value their 
minds as well as their arms. And I want to again thank the gentleman 
from California (Chairman Hunter) and the gentleman from Missouri (Mr. 
Skelton), ranking member, for including the amendments that I proposed 
in this authorization; and I urge the other body to accept those 
amendments.
  Mr. HUNTER. Mr. Chairman, I yield 2 minutes to the very distinguished 
gentlewoman from Texas (Ms. Granger), who has great expertise in the 
area of defense.
  Ms. GRANGER. Mr. Chairman, I rise in strong support of the National 
Defense Authorization Act for Fiscal Year 2005. I want to commend the 
gentleman from California (Chairman Hunter); the gentleman from 
Missouri (Mr. Skelton), ranking member; and the entire committee for 
bringing this bill to the House floor at this crucial time for 
America's Armed Forces. The committee had to balance many difficult 
needs and did a great job.
  The last several months have been very difficult for our men and 
women serving in the United States military. The actions of a few at 
Abu Ghraib Prison in Iraq must not reflect badly on their fellow 
soldiers, sailors, Marines and airmen serving so bravely in the war on 
terrorism. The barbaric murder of an American civilian captured on 
videotape has reminded us of the true nature of our enemy and why we 
must win this war. Our troops are on the front lines fighting this war 
for each and every one of us, and they deserve our full support and 
gratitude.
  By passing the defense authorization bill this week, the House of 
Representatives will send a strong message of support to our troops and 
a resolve to friends and enemies across the globe. We must stand firm 
and continue our fight against terrorism. There is no more important 
battle today.
  The bill authorizes over $420 billion for the Department of Defense 
and the national security programs at the Department of Energy. It 
includes many important provisions for our troops, their families, and 
America's veterans.
  The bill also authorizes an additional $25 billion in supplemental 
funding to ensure that our men and women fighting in Iraq and 
Afghanistan will have all the resources they need.
  Finally, the bill funds many important weapons programs that will 
ensure our military strength for decades to come. I want to focus on 
some of those critical weapons programs: the F-34 Joint Strike Fighter, 
the F/A-22 Raptor, and the V-22 Osprey.
  The F-35 Joint Strike Fighter, or JSF as we call it, will be the 
prime multirole fighter for the Air Force, Navy, and Marine Corps for 
the 21st century. The defense authorization bill fully funds the 
President's budget request for continued development of the JSF.
  The basic JSF design, with several modifications to meet each 
service's needs, will be used for all three services. The aircraft will 
have the best next-generation avionics, weapons systems, and stealth 
capabilities. It will also have dramatically increased range over our 
current fighters. We simply must continue to develop the Joint Strike 
Fighter, and the underlying bill fully supports the program.
  The F/A-22 Raptor is the Air Force's state-of-the-art, next-
generation fighter aircraft. As with the JSF, the committee has fully 
funded the President's request for the F/A-22. Specifically, the bill 
includes funding to build 24 new F/A-22s over the next fiscal year.
  Mr. SKELTON. Mr. Chairman, I yield 3 minutes to the gentleman from 
Texas (Mr. Reyes), ranking member on the Strategic Forces Subcommittee.
  Mr. REYES. Mr. Chairman, I thank the ranking member for yielding me 
this time, and I thank our chairman for always working together in a 
very strong bipartisan manner on this very important committee as it 
involves the national security of our country.
  Mr. Chairman, the Strategic Forces Subcommittee has jurisdiction over 
some of the most contentious and controversial issues considered by the 
overall committee, including ballistic missile defense and nuclear 
weapon development programs. While we did not reach complete bipartisan 
accord on these two issues, the subcommittee and the committee 
generally had substantive and cordial debates on all of these matters.
  I am somewhat disappointed, Mr. Chairman, that even though the bill 
contains $10 billion for various ballistic missile defense programs, no 
amendment was made in order to allow for legitimate debate and a vote 
on important policy issues related to those programs.
  I am, however, pleased that we will have an opportunity to debate the 
wisdom of developing new nuclear weapons. The mark contains the 
President's budget request for both the Robust Nuclear Earth Penetrator 
and an initiative to study new nuclear weapons designs called Advanced 
Concepts. I will encourage my colleagues to vote in favor of the 
Tauscher amendment which would transfer these funds to a more realistic 
and conventional alternative to ``bunker busting.''
  Our committee reached bipartisan agreement on the space programs 
within this mark. We reduced funding for the Transformational Satellite 
Communications program by $100 million and prevent the Air Force from 
downselecting a prime contractor on space-based radar until they 
provide a report to Congress. Members on both sides of the aisle are 
concerned about the affordability and the technological readiness of 
these programs.
  Overall, the mark of the Strategic Forces Subcommittee is one that I 
support. I am especially pleased that we were able to reach a 
bipartisan agreement to add funding for THAAD, which is critical and 
important to better protecting our troops in the field of theater-range 
ballistic missiles. I want to thank the gentleman from Alabama (Mr. 
Everett), my partner and my chairman, for his leadership on this issue 
and our subcommittee in general. Even on those areas where we disagree, 
he has always been a straightforward and fair individual, and it has 
been a pleasure to work with him.
  I also want to state today my concern about the number of troops in 
our armed services. I am pleased that the

[[Page H3264]]

bill increases the end-strength levels for the Army and Marine Corps 
over the next 3 years, but I remain concerned that this surely is not 
enough. Simply put, we do not have enough troops to sustain our 
commitments around the world, facing the current challenge. We are 
starting to crack around the end-strength issue, and this may be an 
indicator that we may have to reevaluate and reprioritize the various 
theaters.
  Mr. HUNTER. Mr. Chairman, I yield myself such time as I may consume.
  I want to thank the gentleman for his hard work and the fact that he 
has been in Iraq and Afghanistan more than any other member, which is 
very important to this committee.
  Mr. Chairman, I yield 4 minutes to the gentleman from Maryland (Mr. 
Bartlett), the very thoughtful chairman of the Projection Forces 
Subcommittee.
  Mr. BARTLETT of Maryland. Mr. Chairman, before proceeding, as 
chairman of the Projection Forces Subcommittee, I believe it 
appropriate to first underscore the magnificent service rendered the 
Nation by the men and women serving in our Armed Forces around the 
world. We have called upon them and continue to call upon them to be 
ready to make the ultimate sacrifice in their service to the Nation. 
They continue to meet every challenge with true dedication and 
commitment. We thank each and every one of them for their service, and 
we thank all Americans for their unwavering support of our servicemen 
and women.
  History has repeatedly taught us that peace is only achieved through 
strength. We have sought to apply the lessons learned from the ongoing 
war on terrorism and operations in Iraq and Afghanistan to the 
committee markup of the National Defense Authorization Act for Fiscal 
Year 2005, in order to strengthen our Armed Forces.
  Oceans cover three-fourths of the Earth's surface. The vast majority 
of the world's population lives within 2 miles of a seacoast. Seventy 
percent of our trade moves by sea. Clearly, maintaining America's naval 
superiority is an imperative, not an option.
  I am pleased to report that the National Defense Authorization Act 
that we will consider increases the requested authorization for 
Department of Defense programs within the jurisdiction of the 
Projection Forces Subcommittee by $890 million; $296 million of the 
additional authorization is for programs on the military service 
chiefs' unfunded requirements list.
  Authorization is included for the administration's request of one 
Virginia Class submarine, three DDG-51 destroyers, one LPD-17 
amphibious assault ship, and two cargo and ammunition ships.
  We have also taken several initiatives to begin to address shortfalls 
in important requirements of the Department of Defense. All of these 
programs are viewed as critical enablers for operations in Iraq and 
Afghanistan.
  These programs include $150 million additional authorization to begin 
development of the amphibious assault ship replacement; $96 million as 
the fiscal year 2005 increment to begin the regeneration process to 
restore 10 additional B-1s to combat-ready condition; $98 million to 
upgrade the fleet of B-2 bombers; $100 million to continue a next-
generation bomber program to replace the now 42-year-old B-52 bomber 
fleet; $95 million to begin the recapitalization of the Air Force's 
aging aerial refueling tanker fleet; and $23 million to complete 
development and evaluation of the Affordable Weapon System, a low-cost 
cruise missile that is the successful result of an Office of Naval 
Research advanced technology initiative to demonstrate the ability to 
design, develop, and build a capable and affordable precision-guided 
weapons system at a cost that would be an order of magnitude cheaper 
than comparable weapons systems; and increased authorization for 
several procurement and research and development programs of the 
services.
  In addition, the recommended mark includes important legislative 
proposals: to accelerate the DDG-51 Aegis guided missile destroyer 
modernization program; and to establish an independent body of 
manufacturing experts to find ways to again make the United States 
shipbuilding industry competitive. Ad hoc government policy and 
business management adjustments to reductions in the fleet from 600 to 
less than 300 are not adequate or acceptable to make the necessary 
short-term and long-term decisions to maintain the capacity and 
capability of this critical and complex industrial base. Once lost, 
that industrial base cannot be easily reconstituted.
  This study will rigorously analyze all of the relevant factors and 
make recommendations to ensure the capability of America's shipyards to 
build the ships for our Navy and to be competitive against other 
shipyards in the global marketplace.
  While there is much more to do, the National Defense Authorization 
Act for Fiscal Year 2005 is an important step in making our country 
more secure. I urge all of my colleagues to support this bill.
  I would like to thank the gentleman from Mississippi (Mr. Taylor), 
the ranking member of our subcommittee, for his extraordinary 
partnership, dedication, and support in completing this bill. I would 
like to thank all of my other colleagues on the subcommittee for their 
diligence, commitment, and hard work.
  I would also like to thank the gentleman from California (Mr. 
Hunter), our chairman, for his leadership; and the gentleman from 
Missouri (Mr. Skelton), our ranking member.
  In conclusion, I would especially like to thank and recognize the 
contributions of the many staff members for their invaluable assistance 
in preparing H.R. 4200.

                              {time}  1515

  Mr. SKELTON. Mr. Chairman, I yield 3 minutes to the gentleman from 
Texas (Mr. Turner), the ranking member of the Select Committee on 
Homeland Security and a member of the Committee on Armed Services.
  Mr. TURNER of Texas. Mr. Chairman, I would like to thank the chairman 
and ranking member of the Committee on Armed Services for their 
leadership on this bill today.
  Mr. Chairman, I rise in support of our troops and in support of this 
defense authorization bill, but I urge my colleagues to be up front 
with the American people about the true cost of our operations in Iraq. 
The supplemental $25 billion included in this bill for operations is 
not enough. We all know that at the rate we are spending money in Iraq, 
this will only last a few more months.
  Democrats on the Committee on Armed Services unanimously supported a 
$67 billion authorization to ensure we can do what is necessary to 
provide stability in Iraq, and we have been denied the opportunity to 
have a vote on this issue on the floor by the Committee on Rules.
  To accomplish our goal in Iraq, we need additional troop strength; we 
must commit whatever is necessary to force protection; we need to 
increase recruiting and training for the Iraqi military and police 
forces; and, finally, we need a bold and urgent plan that gives the 
Iraqi people the opportunity to determine their own destiny.
  We have set a June 30 deadline for the handover of political 
authority to the interim Iraqi Government. The President has correctly 
said we must keep this deadline. Deadlines are important motivators; 
they give purpose and direction and urgency to both planning and 
execution. The Iraqi people must also keep the deadline to adopt a 
permanent constitution on or before October 15, 2005.
  It is equally clear that we should also establish a clear and 
unambiguous deadline of December 31, 2005, to turn over complete 
responsibility for peacekeeping to the Iraqi civilian police and the 
Iraqi military. Thereafter, we should commit, if invited by the new 
government to participate in an international advisory group, to assist 
the Iraqi people in a successful transition to stability and democracy.
  The Iraqi people are capable, resourceful, and educated; and we know 
that stability can be achieved with hard work and strong commitment. We 
can and should encourage and support democracy in Iraq; but in the 
final analysis, the Iraqi people must choose democracy and a form of 
government fashioned by their own history, their own values, and their 
own initiatives.
  Our brave soldiers and the American people have already and will 
continue to pay in blood and treasure to achieve this goal. A clear 
timetable will more likely achieve a successful outcome. Both the 
people of America and the people of Iraq deserve no less.

[[Page H3265]]

  Mr. HUNTER. Mr. Chairman, I yield 4 minutes to the gentleman from 
Alabama (Mr. Everett), the chairman of our Subcommittee on Strategic 
Forces which oversees our nuclear component, space assets, and many 
critical aspects of national security.
  (Mr. EVERETT asked and was given permission to revise and extend his 
remarks.)
  Mr. EVERETT. Mr. Chairman, first of all, let me say how much I enjoy 
being on this great committee. There is not a member of this committee 
that is not interested in serving the American fighting man and woman. 
We owe much of our attitude to our great leadership from our full 
committee chairman, the gentleman from California (Mr. Hunter), and our 
ranking member, the gentleman from Missouri (Mr. Skelton). I would be 
remiss if I did not also note it is a pleasure for me to work with my 
ranking member and partner, the gentleman from Texas (Mr. Reyes). He 
has made great contributions to this markup.
  Mr. Chairman, ongoing operations in Iraq and against terrorism at 
large call for a fresh look at military requirements. These lessons 
learned illustrate that today's defense forces must be powerful, 
versatile, and be able to deploy globally with great speed.
  Moreover, our national security investment must continue the 
development of transformational capabilities of future systems. Given 
that, this bill supports the administration's objectives while making 
significant improvements to the budget request and incorporating the 
chairman's theme of supporting the war fighter.
  Mr. Chairman, the Subcommittee on Strategic Forces' effort continues 
to fund missile defense, military space and atomic energy programs. As 
we quickly approach the deployment of the Nation's first national 
missile defense capability later this summer, this bill fully funds the 
GMD system.
  In the area of military space, the bill shifts funds from longer-term 
follow-on systems to more near-term capabilities, including the 
Operationally Responsive Satellite and the Advanced EHF Satellite. The 
bill adds funding for the SBIRS High program and ensures sufficient 
technological maturity for the Space Based Radar and the TSAT program.
  Within Atomic Energy Defense Activities, the bill funds the National 
Nuclear Security Administration at the budget request. The bill 
includes modest reductions for directed stockpile work and campaigns 
while adding $50 million for infrastructure upgrades that are badly 
needed. The committee recommends $5.88 billion for defense site 
acceleration completion, an increase of $62 million over fiscal year 
2004.
  Mr. Chairman, the committee's recommendation addresses the 
administration's objectives, many of DoD's unfunded requirements, and 
Member priorities. I urge my colleagues to support this important 
legislation.
  Mr. SKELTON. Mr. Chairman, I yield 5 minutes to the gentleman from 
South Carolina (Mr. Spratt), the ranking member on the Committee on the 
Budget and also a distinguished member of the Committee on Armed 
Services.
  (Mr. SPRATT asked and was given permission to revise and extend his 
remarks.)
  Mr. SPRATT. Mr. Chairman, first of all, I commend my good friend, the 
chairman. We do not agree about everything; nevertheless, I hope that 
is not a sign of what is about to come. He does a wonderful job of 
chairing the committee, and he has brought to the floor a good piece of 
legislation. We thought it could be better. I wish there were more 
amendments in order, but I do not want to diminish the significance of 
what is in the bill.
  Mr. Chairman, with troops in the field being bombed and shot at, we 
cannot be stinting about what we provide our troops. We have got to 
give them the resources they need to do the tough tasks that they have 
taken on. But with the defense bill before us running at a level of 
$422 billion, that is an increase of $125 billion in 3 years, and with 
the costs of our operations in Iraq alone approaching $200 billion by 
the end of next year, military and economic reconstruction, Congress 
also cannot relax its oversight responsibilities and we should not 
rubber-stamp what the administration sends us.
  That is why I thought more of the 100-odd amendments we offered 
should have been made in order. We could have a good, full debate on 
the House floor about priorities. That is why I wanted to take the 
ballistic missile defense account, which the administration wants to 
increase by $1.2 billion, to make it twice as big as any other program 
in the procurement and R accounts; why I wanted to take just a little 
bit, $400 million off the top of that, leaving an increase of $800 
million; take a little off the top of that and then spread it to 
someplace else in the budget where I think it would do a lot more good, 
and that is in compensating the backbone of our military services, our 
NCOs and warrant officers, with a pay raise above the level provided 
other troops, at least in the rate of increase.
  In addition, I wanted to provide $25 million to $50 million, that is 
all, so we could say to every troop we send into combat, Uncle Sam will 
pick up the premium and we will see to it that every one of you has 
$250,000 of group life insurance.
  Now, there are some good things in this bill, as I said. I want to 
congratulate the chairman for leaning on DoD to send us a supplemental, 
because we were sailing into the next year under the artificial 
representation that we had enough money and we could move it around and 
we could get to the next calendar year. We cannot do it.
  But I do not think we should give the administration a blank check, 
and, to a great extent, we have not done that; and I commend the 
chairman for that. We have provided some line item specificity in title 
15 of this bill. We have also, in response to the administration's 
request for transfer authority, we said to them you can have transfer 
authority for $3 billion, but not for $25 billion. All of that is an 
improvement over the request.
  But nobody should think that $25 billion is going to get us through 
the year. We will be lucky if it takes us to March. That is because we 
are spending $4 billion to $5 billion easily every month in Iraq; it is 
not likely to go down. We are spending $700 million to $900 million 
every month in Afghanistan; it is not likely to go down. We are 
spending $500 million a month for Noble Eagle, United States air 
defense and other things like that. It is close to $6 billion a month.
  The arithmetic is easy, even on the back of an envelope. $6 billion 
times 12 months is $72 billion. We have only provided $25 billion of 
it. We could easily have another supplemental coming in 2005 of $50 
billion.
  That is why I want to remind everybody of the budget. It just so 
happens we are going to have the defense bill back to back with the 
budget; and let us keep in mind when the administration talks about 
runaway spending, the increase in spending in the budget, that much of 
it is occurring in the defense accounts. That is not to diminish or 
damn the amount of money that is being spent there; it is essential. 
But it also gets added into the calculation, and it is having an 
impact.
  If you look at current services for everything in the discretionary 
budget and look at the spikes that are really standing out, what you 
will find is that 90 to 95 percent of the increase in discretionary 
spending over the last 4 fiscal years, every year has either been 
defense, homeland security, and our response to 9/11.
  Quickly, let me show you a chart that is almost too much to read from 
this perspective. Basically, what we show here is the FYDP, the Future 
Years Defense Program, run out of 10 years, when Mr. Bush came to 
office was about $3.6 trillion in 2001. If you include what he has 
added, plus the costs just through this year of Iraq, it is about $4.6 
trillion. If you go back and make some reasonable adjustments for 
policy changes in procurement and also add in the cost of Iraq and 
Afghanistan after 2005, you are easily up to a $1.5 trillion increase 
in spending.
  Mr. Chairman, what I am saying is that we cannot forget the budget; 
we cannot forget the deficit. It has a huge impact on the economy. The 
economy is the first instrument of our national defense.
  Secondly, sooner or later, if these costs keep running at this level, 
we have got to turn to the American people and ask more than our troops 
to share the sacrifice; we have to ask the American people to pick up 
some of the

[[Page H3266]]

costs that we are running here for our defense and homeland security. 
The bill has to be paid sooner or later, the day of reckoning is 
coming, and we are only postponing it with the budget we will take up 
after this bill is considered today.
  Mr. HUNTER. Mr. Chairman, I yield 3 minutes to the gentleman from 
California (Mr. McKeon), a very distinguished member of the committee.
  Mr. McKEON. Mr. Chairman, I rise today in strong support of H.R. 
4200, the National Defense Authorization Act For Fiscal Year 2005.
  First, I would like to commend the gentleman from California 
(Chairman Hunter) and the ranking member, the gentleman from Missouri 
(Mr. Skelton), for their leadership in bringing this good bill to the 
floor. The gentleman from California (Mr. Hunter) was referred to this 
morning in our conference as the troop's chairman, and I think that is 
exactly what he is; and he has brought a bill that is great for the 
troops.
  Mr. Chairman, hundreds of thousands of brave American soldiers, 
including mothers, fathers, sisters and brothers, are fighting to 
protect our freedom and liberty throughout the world; and we owe it to 
them and to their families to pass this bill today.
  The cornerstone of H.R. 4200 is the $2 billion plan to equip our 
troops with the latest and most state-of-the-art safety equipment, 
including body armor, armored Humvees, and armor add-on kits for thin-
skinned vehicles.
  Many times the best and most innovative of these technologies are 
developed by our Nation's small businesses who are able to produce 
cutting-edge military equipment at a lower cost. That is why we have 
included language in the bill to encourage the Department of Defense to 
provide greater consideration to the advantages and innovations offered 
by small business.
  The bill also directs the Department to award more contracts to small 
businesses through broader utilization of phase 3 of the Small Business 
Innovative Research Program. I thank the gentleman from California 
(Chairman Hunter), the gentleman from Pennsylvania (Chairman Weldon), 
and the committee staff for working with me to include this language in 
the bill.
  I cannot overstate the strong impact that small businesses have on 
the Department of Defense. Our country's small businesses are the 
engines of American technological innovation, and they will 
significantly enhance the ability of the American war fighter and help 
save many lives.
  Mr. Chairman, H.R. 4200 is a solid bill which focuses on protecting 
our troops on the battlefield and strengthening our support for them at 
home. It contains several other provisions that I support, including a 
solid pay raise for our troops, increases in their hardship pay, and 
elimination of their out-of-pocket expenses for housing, among other 
things.

                              {time}  1530

  This package is the least we could do for our brave men and women of 
the Armed Forces who risk their lives every day to protect America and 
our freedoms around the world. I urge all of my colleagues to vote 
``yes'' on H.R. 4200.
  Mr. SKELTON. Mr. Chairman, I yield 3\1/2\ minutes to the gentleman 
from Mississippi (Mr. Taylor), the ranking member of the Subcommittee 
on Projection Forces.
  Mr. TAYLOR of Mississippi. Mr. Chairman, the young men and women who 
serve in our Nation's Armed Forces are not Democrats, they are not 
Republicans; they are Americans. And I am happy to say that I feel like 
the package that was put together was not put together by Democrats or 
Republicans, but by Americans who care about our Nation's defense. And 
I think it does some very good things.
  First and foremost, I would like to commend my colleague, the 
gentleman from Colorado (Mr. Hefley) for his efforts in working with us 
to delay the next round of base closures. As we have pointed out, we 
are growing the Army. Almost everyone in the Army is spoken for. They 
are either in Iraq, just got home from Iraq or getting ready to go to 
Iraq.
  This is a time of great uncertainty, and we do not need to further 
complicate that uncertainty by closing bases with a number that was 
artificially picked prior to September 11.
  It is my understanding that there will be efforts to put the next 
round of base closures back into the bill. I would encourage my 
colleagues to vote against that. We have come to a very fair compromise 
when people like me, who would just as soon do away with BRAC entirely, 
and a level head like the gentleman from Colorado (Mr. Hefley) said, we 
should delay it. And I support that delay.
  We should continue to work and we continue to work on programs that 
protect our troops. With things like up-armored Humvees, with things 
like jammers to prevent improvised explosive devices from unnecessarily 
taking the lives of young Americans. We have worked to provide 
hazardous duty pay for those people whose primary military mission is 
fire-fighting.
  As my great colleague from Maryland has said, we have taken several 
significant steps to help our Nation's Navy and shipbuilding programs 
with three destroyers, a submarine, an amphibious cargo ship, an 
amphibious assault ship for the Marine Corps, and the LHD, which is 
also an amphibious assault ship for the Marine Corps.
  We have taken steps to limit the amount of foreign flag vessels that 
can be leased by our Nation's Navy. Again, my chairman, the gentleman 
from Maryland (Mr. Bartlett) is doing a great job of trying to 
revitalize American shipbuilding. We do not help that one bit when we 
go out and lease foreign-flag vessels. They should be made here in our 
country, instead of being built and leased from overseas.
  We have worked, and again, I want to compliment all of my colleagues, 
I think this passed unanimously, to fix the problem with the survivor 
benefits program where the widows of the people who served in our 
Nation's military were not given what they were promised. Their 
retirement benefit was reduced by their Social Security. That should 
not be the case and I commend everyone who worked on that, in 
particular, my friend from Pensacola, Florida (Mr. Miller), who is a 
sponsor of that amendment.
  The last thing I would like to mention to my colleagues is, we are 
indeed at war. Over 700 young Americans have lost their lives in Iraq. 
More, including a great football player, have lost their lives in 
Afghanistan; and we are truly blessed by every single person who 
chooses to serve our Nation in its Armed Forces.
  I would point out that in just a little while we will be having a 
vote on the conference report to our Nation's budget. And I would like 
to ask my colleagues, in addition to supporting this bill, to keep in 
mind that those who are fortunate enough not to have to fight in this 
war ought to, at the very least, be willing to pay for it now, not with 
borrowed money and not with sticking future generations of Americans 
with a bill that we are not willing to pay.
  So I would encourage Members to vote for the defense authorization 
bill. I would encourage Members to vote against bringing BRAC back into 
this bill; and I would encourage Members to vote against the budget 
that does not pay for this bill with today's dollars, but pays for this 
bill with borrowed money that our children will have to pay.
  Mr. HUNTER. Mr. Chairman, I want to thank the gentleman who just 
spoke for his hard work on this bill.
  Mr. Chairman, I yield 2 minutes to the gentleman from Indiana (Mr. 
Chocola).
  Mr. CHOCOLA. Mr. Chairman, I want to thank the chairman for yielding 
me time and for his leadership on bringing this very important 
legislation to the floor.
  This legislation supports our American men and women in uniform and 
it helps give them the tools to defend the freedoms that we all hold so 
dear and to keep our country safe. Specifically, I want to thank the 
chairman for his wisdom in investing $830 million approximately in 
Humvee production.
  Humvees are manufactured in my district in Mishawaka, Indiana, by AM 
General. The men and women at AM General certainly do a tremendous job 
in manufacturing this very effective tool in the war on terror. And the 
investment in this production is certainly good for the 2,500 employees 
at AM General, it is good for our local economy, but most importantly, 
it provides a force protection tool for our soldiers that saves 
American lives.

[[Page H3267]]

  As an example, about a year ago I went to Bethesda Naval Hospital and 
I met with a young Marine who had been injured in combat in Iraq. He 
told the story of the Navy corpsman, after he was hit, that dragged him 
to safety between two Humvees that were strategically placed in the 
battlefield.
  Just 2 weeks ago I met another Marine that had lost his right arm in 
combat in Iraq. I flew to my district with the President, and as the 
President stepped off the plane, the Marine shook his hand and told him 
the story about how he owed his life to the fact that he was in an up-
armored Humvee when he was injured.
  It is because of thousands of stories like this that I urge my 
colleagues to support H.R. 4200, because it does exactly what it should 
do. It provides our troops with the tools they need to win the war on 
terror and supports them in their efforts so they can be successful.
  Mr. SKELTON. Mr. Chairman, I yield 3 minutes to the gentleman from 
Arkansas (Mr. Snyder), the ranking member on the Subcommittee on Total 
Force.
  Mr. SNYDER. Mr. Chairman, I rise in support of this good bill. This 
is a bill that will help the quality of life for both our service 
members and their families. It is a bill for the troops. It is a bill 
for their families.
  I know that as a Nation and as a Congress we have ongoing 
disagreements and discussions about our national security policy, about 
Iraq, about issues all around the world; but while we are having that 
debate and in this discussion, this bill was put together that I think 
accounts for the unanimous support of the committee, 60 to zero, with 
people who are on different sides of these many issues, because it is a 
bill for the troops and their families.
  I wish it could have been a better bill, and I think it could have 
been a better process had we, as a House, today voted to let more than 
100 Members have amendments on the floor that were denied the right to 
be heard. But I do appreciate the work of the chairman of the 
Subcommittee on Total Force, the gentleman from New York (Mr. McHugh) 
as well as the gentleman from California (Mr. Hunter), the chairman of 
the committee.
  I know it is a good process when the chairman of the committee does 
not win all of his amendments during the committee process this year. I 
think we had a full and vigorous debate. Of course, I appreciate the 
work of the gentleman from Missouri (Mr. Skelton), our ranking member.
  It is a bill for the troops. It will provide a 3.5 percent pay raise 
for the troops, which is a half percent more than the average private 
sector pay increase. It also eliminates out-of-pocket housing costs for 
service members and their families. It provides a permanent increase in 
imminent danger pay and family separation allowance, as well as 
increases the hardship duty pay from $300 to $750.
  It includes providing active duty tuition assistance to Reservists 
who are mobilized, and it also makes permanent the TRICARE coverage for 
mobilized Reservists 90 days prior to activation and 180 days of 
transitional assistance following their separation from service.
  I was also glad to see the great work done by the committee on the 
survivors benefits program. I would like to acknowledge two Members who 
are not members of our committee, the gentleman from Florida (Mr. 
Miller) who had the bill's sponsor to change the survivors benefit 
program, and the gentleman from Texas (Mr. Edwards), a former member of 
the committee, who also did good work on advocating on behalf of 
changing that program. I think that will help a lot of spouses of 
military retirees who have lost their mate. It is a very important 
issue.
  Finally, I want to say in conclusion, I do support this bill; 
however, I think we should have allowed more time and had more 
amendments. It is particularly distressing on a committee in which we 
talk about our bipartisanship, that some of the most senior and 
experienced members, such as the gentleman from South Carolina (Mr. 
Spratt) and the gentleman from Missouri (Mr. Skelton) and his 
recommendations for amendments were denied an opportunity.
  We had a bipartisan amendment. The gentleman from North Carolina (Mr. 
Price) and the gentleman from Connecticut (Mr. Shays), who had an 
amendment, both senior Members, not of the committee but of this 
Congress, were denied a right to be heard on the House floor today and 
tomorrow on their amendment. It would have been a better process and a 
better bill if that had gone forward.
  But I do support the bill and urge other Members to do so also.
  Mr. HUNTER. Mr. Chairman, I thank the gentleman from Arkansas (Mr. 
Snyder) for his hard work on the bill.
  Mr. Chairman, I yield 3\1/2\ minutes to the gentleman from North 
Carolina (Mr. Hayes), a gentleman with a real heart for our soldiers.
  Mr. HAYES. Mr. Chairman, I want to recognize my good friend, the 
soldiers' chairman, the gentleman from California (Mr. Hunter) for 
everything he has done to bring this bill together that supports our 
troops.
  I rise today in support of H.R. 4200, legislation we have crafted in 
the Committee on Armed Services that focuses on force protection and 
personnel benefits, designating 2005 as the Year of the Troops. For the 
soldiers and airmen in my district at Fort Bragg and Pope Air Force 
Base, the ability to adequately execute the mission for which they are 
called and care for their families are the two issues that are second 
to none.
  I believe this legislation makes significant progress in these areas 
and will enable our men and women in uniform to continue successfully 
prosecuting the war on terrorism.
  A trip to Iraq this past March, the second I have made, did nothing 
but reinforce my pride in our Nation's warfighters. These brave men and 
women served with honor and distinction as they liberated a nation. 
Troops from the 8th district of North Carolina have been at the very 
tip of the spear that ended the dark reign of Saddam Hussein and 
continued to lead the way in postconflict resolution in Iraq and 
Afghanistan.
  This legislation, first and foremost, takes care of our most vital 
asset, our military, our people. It provides every service member an 
across-the-board 3.5 percent pay raise and increases the force 
structure of the Army and Marine Corps. It also boosts the maximum 
amount of hardship duty pay and eliminates out-of-pocket housing 
expenses. Furthermore, it closes the gap that some deployed Reservists 
and members of the National Guard face when their military pay is less 
than their civilian pay.
  It is the first time in history that steps have been taken to replace 
income loss while Reservists are away from their civilian jobs. 
Currently, about 3,500 members of the North Carolina Guard are deployed 
in support of Operation Iraqi Freedom, the largest deployment in our 
State's history. It is vital that we take every measure to care for 
their families while they are away.
  I am also happy the committee is urging the Department of Defense to 
consider programs being proposed at the University of North Carolina 
and others to help ease the hardship of these families and what they 
face.
  Additionally, I would like to mention the direct effect this 
legislation will have for men and women at Fort Bragg and Pope. There 
is almost $200 million for infrastructure and housing improvements at 
these two installations. It includes $10 million more than was in the 
President's request for a barracks complex at Fort Bragg. I worked hard 
to secure this funding, along with others, because it will help improve 
the living conditions of the 16th MP brigade, the unit that spent many 
months in Iraq.
  The National Defense Authorization Act addresses other critical 
issues, fortifying the defense industrial base, ensuring the Department 
of Defense purchases products that are made in America. My top two 
priorities are national security and economic security. There is 
seldom, if ever, a reason that these two goals should be considered 
mutually exclusive. I have vowed to always work to protect and promote 
the U.S. manufacturing industry, and we must develop transparency 
within the DOD procurement process.
  Providing visibility on the Berry amendment, which stipulates 
domestic sourcing requirements, is crucial and is in this bill. This is 
vital to protect our workers and our soldiers and our national 
security, and it is just as important to protect our economic security 
here at home.

[[Page H3268]]

  The gentleman from California (Mr. Hunter) has worked so hard to 
provide this, and I thank him again.
  Mr. Chairman, this is a great bill. It supports our wonderful men and 
women in uniform. I urge our most enthusiastic support.
  Mr. SKELTON. Mr. Chairman, I yield 3 minutes to the gentlewoman from 
California (Ms. Loretta Sanchez), a member of the Committee on Armed 
Services.
  Ms. LORETTA SANCHEZ of California. Tailhook, Aberdeen, Air Force 
Academy rapes, rapes in the Pacific theater, rapes in the Iraqi 
theater.
  Mr. Chairman, I rise today to talk about what is not in this bill. A 
sensible, conservative legislative initiative that would have made it 
easier for the military to prosecute sexual assault offenses in the 
armed services.
  The majority prohibited me from offering an amendment that would have 
made this vital change to the Uniform Code of Military Justice. It 
would have replaced a woefully outdated statute currently being used by 
the military to prosecute sexual assault with a version we use at the 
Federal level, title 18, used also in 37 other States, that was 
approved by this body 18 years ago.
  The current military mechanism for prosecuting sexual assault was 
written in the 1950s, and it really does not reflect today's reality. 
My bill would have emphasized the acts of the perpetrator, rather than 
the reaction of the victim during an assault, which is an all-too-
common complaint within the military justice system.

                              {time}  1545

  It would have expressly provided for cases involving voluntary and 
involuntary intoxication of the victim, which are common fact patterns 
in military sexual assault cases.
  It would have expanded the definition of sexual abuse to include a 
broader scope of sex acts.
  It would have also included a provision which specifically relates to 
the sexual abuse of a prisoner, unlike the current UCMJ. This provision 
is particularly timely given the tragic incidents which have occurred 
in Abu Ghraib prison.
  We are facing a sexual assault crisis within our armed services. Our 
women and our men are being raped in Iraq. The Army currently has 
investigations of 110 counts of sexual abuse in Iraq and Afghanistan.
  Some say this is combat-related stress. Well, in March of this year, 
the Air Force reported that it is investigating 92 reports of rape in 
the Pacific. Those troops are not in combat.
  In a report released by the Department of Defense just this week, it 
was reported that across the Department of Defense there were 901 
reported cases of rape in 2002 and over 1,000 in 2003. Now, I think 
that is a problem, and the Pentagon obviously thinks it is a problem, 
also.
  So this would be an opportunity to make some positive changes on this 
issue because it is our job as Members of Congress to provide oversight 
of the executive departments of this Nation. It is our responsibility 
to provide assurances to men and women in uniform that they are safe 
and that when crimes are committed, our laws assure that justice will 
be served.
  I am disappointed that my amendment is not being considered today. I 
think it is a disservice to the military men and women of our Nation.
  Mr. HUNTER. Mr. Chairman, I yield 3 minutes to the gentleman from 
Florida (Mr. Miller), the gentleman who is the author, the father of 
this great benefit package for military survivors that was embedded in 
this bill and is good news for hundreds of thousands of families.
  Mr. MILLER of Florida. Mr. Chairman, I thank my chairman of the full 
committee for the time; and, Mr. Chairman, I proudly rise today in 
support of H.R. 4200, our National Defense Authorization Act of 2005.
  As the chairman said, this legislation fully restores the survivor 
benefit plan annuity to what was promised to America's surviving 
spouses, and I applaud my Committee on Armed Services colleagues for 
bringing a quarter of a million military widows and widowers one step 
closer to seeing increases in their monthly checks next year. This is a 
Defense authorization measure which this entire body can be proud of.
  Since coming to Congress, I have been working on this issue of 
particular interest, restoration of the minimum survivor benefit plan 
basic annuity to 55 percent for those survivors aged 62 years of age 
and older. Under present law, surviving spouses are subject to a 
reduction to 35 percent as part of the initial SBP law that was enacted 
in 1972, but this critical piece of information did not find its way 
into military retirement briefings and to the SBP election forms until 
many years later.
  Here is a 1982 election form. Nowhere will my colleagues find in this 
form the offset mentioned. Survivors have felt betrayed by this bait-
and-switch; and at 35 percent, SBP provides only a poverty-level or 
lower annuity to most survivors, even those of relatively senior 
officers.
  For nearly 3 years, we have worked with members of the committee, my 
colleagues on the Committee on Veterans' Affairs and numerous VSOs, to 
introduce SBP bills that will bring the needed equity. Both bills that 
I have introduced in Congress have received strong bipartisan support 
with over 300 Members sponsoring one or both measures, and I am proud 
that this committee has produced SBP reform that exceeds even my 
greatest expectation.
  H.R. 4200 will fully eliminate the so-called ``widow's tax'' by April 
1, 2008, in under 5 years. I thank the gentleman from California (Mr. 
Hunter) and the first rate Committee on Armed Services staff who 
literally worked round the clock to make this happen.
  Once again, our Nation is calling upon the members of the U.S. Armed 
Forces to defend democracy and freedom. We have no doubt that these 
brave men and women will rise to the challenge. However, for those who 
have selected to make their career the U.S. military, they face an 
unknown risk.
  This giant leap forward sends a clear message to the men and women 
who have provided our national defense. Today, we are a grateful 
Nation, and this Congress is making good on our promises to our Armed 
Forces. This battle has been hard fought, and its victory is shared by 
so many whose efforts have been tireless and unrelenting.
  I thank my colleagues who have stood by me to realize this victory.
  Mr. SKELTON. Mr. Chairman, I yield 3 minutes to the distinguished 
gentleman from Tennessee (Mr. Cooper), a member of our Committee on 
Armed Services.
  Mr. COOPER. Mr. Chairman, I thank my friend, the gentleman from 
Missouri, for yielding me the time.
  Mr. Chairman, unfortunately, we will not be allowed to debate the 
true cost of this war. That is ironic because I think most Americans, 
whether they are for or against the conflict, at least want honest 
answers from this body. They want to know what the real casualty rate 
is, something that, unfortunately, Secretary Wolfowitz could not recall 
in a hearing the other day. They also want to know about the dollars 
and cents.
  In the first Iraq war, which I proudly supported, the American 
taxpayer really did not have to pay even $10 billion for that war. This 
cost is already approaching $200 billion. That is not necessarily a bad 
thing because I think most Americans not only support the war; they 
want us to win and bring our troops home safely.
  Here with this bill, despite the many fine things that are in the 
legislation, most every Member of this House, Republican or Democrat, 
has already voted for a budget which contained $50 billion for our 
troops, $50 billion, five zero billion dollars. But what is in this 
bill? $25 billion dollars for the troops. Why the difference? Why the 
difference?
  Actually, the $25 billion is a partial victory, and I congratulate 
the chairman because, before, the White House did not want any money in 
the bill for the troops in Iraq or Afghanistan. They wanted that to be 
handled entirely separately. So, finally, we have an acknowledgment of 
$25 billion.
  But is Iraq safer than it was a few months ago? Is that why the 
number is less than the $50 billion that we have all already supported? 
No. Iraq is more dangerous than it was before.
  I am worried a false impression is being created here. There are many 
good things in this legislation, but when it comes to funding Iraq and 
Afghanistan, we are pretending with this

[[Page H3269]]

bill, and we are allowing no amendments to this section, we are 
pretending that the cost is $25 billion.
  This $25 billion is pretty curious because it really does not kick in 
until October 1 of this fall, the new fiscal year; and then it will 
last us a whopping 3 or 4 months, so that our men and women in uniform 
in Iraq and Afghanistan are going to have to start worrying about 
Christmastime whether the new Congress and a possible new White House 
is going to be as supportive of their efforts. We know our troops are 
going to be there. We know our troops are going to be there in large 
numbers. Why do we not go ahead and properly fund them?
  The current policy in this bill is as silly as knowing you are 
running out of gas when you are on a long car trip, refusing to buy any 
new gas until way down the road somewhere, about October, and then when 
you finally get to the pump, you are buying $25 worth of gas when you 
should be filling up the tank.
  Mr. Chairman, this bill refuses to fill up the tank. It refuses to 
fully fund our troops in Iraq and Afghanistan. It does fund them for 3 
or 4 months; but that is a piecemeal, shortsighted funding scheme that 
does a disservice to our men and women in uniform.
  Mr. SKELTON. Mr. Chairman, may I inquire of the time remaining, 
please.
  The CHAIRMAN pro tempore (Mr. Camp). The gentleman from Missouri (Mr. 
Skelton) has 27 minutes remaining. The gentleman from California (Mr. 
Hunter) has 25 minutes remaining.
  Mr. HUNTER. Mr. Chairman, I yield myself 2 minutes.
  Let me just say in response to my colleague who has just spoken that 
we did something that was unprecedented in this bill, which was look 
into the future, into the last several months of this year, and decide 
that, even though we all agreed and the budget chairman announced on 
the floor and to the world that we were going to need supplementals of 
$50 billion this next year, we decided that we did not want to have any 
strain on the troops in the closing months of this year before 
Congress, after the election, could put together another supplemental.
  So we provided this bridge, which even the gentleman will admit 
carries us well into the next year, into the next calendar year; and we 
did fully provide for the additional forces that we have in the field, 
the 1st Armored Division, which is going to be an additional $750,000. 
For all of the armor upgrades, we have got roughly $1 billion for armor 
upgrades in Humvees and trucks, for all of the modernization that the 
chief of staff of the Army needs for modularity, that is, building this 
new brigade centric force for the U.S. Army.
  The reason we do not go off into the new year and say, okay, should 
it be $50 billion, should it be $75 billion is very simple. We cannot 
see the future. We do not know how much weight this new Iraqi military 
is going to be able to take on their shoulders, how fast we are going 
to be able to make this handoff; and all of those things drive the 
costs of operation. But this takes good care of the troops for a long 
period of time during this bridge period; and that is the reason we did 
it, to give the troops confidence.
  It is above and beyond the $422 billion bill that we have. I think, 
Mr. Chairman, it does a good job in looking out for the troops.
  Mr. Chairman, I yield 3 minutes to the gentleman from Pennsylvania 
(Mr. Weldon), the chairman of the Subcommittee on Tactical Air and Land 
Forces, whose subcommittee oversees the most massive part of 
modernization and our biggest programs for aircraft and land systems, 
who has done a great job working this issue.
  (Mr. WELDON of Pennsylvania asked and was given permission to revise 
and extend his remarks.)
  Mr. WELDON of Pennsylvania. Mr. Chairman, I want to thank our 
chairman of the committee for an outstanding bill. I think it is one of 
the best Defense bills since I have been in Washington in 18 years, and 
I want to also thank the distinguished ranking member who is one of the 
finest gentlemen in this Congress and someone that both the chairman 
and I are proud to serve with.
  I tell my colleagues that the chairman is correct. This bill is for 
the soldier. It directly deals with the issues that our soldiers are 
experiencing and the problems and challenges they are experiencing in 
the Iraq and Afghan theater, and it provides an aggressive and 
appropriate response.
  In fact, we are proud of the fact that under our chairman's 
leadership we have had almost every member of the committee visit Iraq 
and Afghanistan to interact with our troops so that we did not base our 
own decisions in a vacuum on what was told to us by our military 
leaders; but rather, we went over and we talked to the troops. We 
interacted with them in a firsthand way and then came to terms with the 
President's budget request and what we thought was needed.
  We increased funding just within my subcommittee's jurisdiction by 
$4.3 billion for additional programs and modernization. That includes 
$700 million of additional money for up-armored Humvees. It includes 
additional money for improvised explosive devices, for UAVs, for 
personal protection, for surveillance, for the Predator and the Shadow, 
for the Bradley fighting vehicle modernization, for Hellfire missiles; 
and across the board we provide the funding that we know our troops 
need.
  The gentleman referred to a shortfall. I can tell my colleagues, 
after we got the President's budget, we asked the services, what are 
your unfunded priorities. The total amount of unfunded priorities, as 
given to us by the service chiefs, was $12 billion. We more than 
compensated for the unfunded priorities and look forward to what the 
costs are going to be to continue our presence in Iraq and Afghanistan, 
and we took care of that because of the vision of our chairman and our 
ranking member in working together.
  Now, we are going to have to come back and ask for additional 
dollars, yes; but this bill does a more than adequate job to take care 
of the needs that we have identified and that our service chiefs have 
identified, but it goes beyond that.
  We specify in this bill that any modernization must also be given to 
our Guard and Reserve units based on their being deployed in the 
theater. So the new equipment we buy will not just go to our active 
duty forces; but under this legislation, it will go to Guard and 
Reserve units who have been serving over there and who need the latest 
state-of-the-art equipment. But we even go further than this.
  We deal with some tough issues. We deal with the issue of 
outsourcing. Under the chairman's leadership, starting last year, we 
put money into a fund to come up with innovative ways to have 
manufacturing components done here in the U.S. as opposed to overseas.

                              {time}  1600

  This year, we added $50 million of additional money to that pot. And 
we have challenged our companies to work with labor unions so that when 
they contemplate outsourcing 10 or more jobs, we have a financial 
mechanism in place to bring labor and management together to find 
common solutions that will allow that company to reduce costs and keep 
those potential outsourced jobs right here in America.
  So this bill covers a lot of territory. It is good legislation, and I 
encourage my colleagues to accept it and vote for it.
  Mr. SKELTON. Mr. Chairman, I yield 2 minutes to the gentlewoman from 
Texas (Ms. Jackson-Lee).
  (Ms. JACKSON-LEE of Texas asked and was given permission to revise 
and extend her remarks.)
  Ms. JACKSON-LEE of Texas. Mr. Chairman, the evidence of the unity of 
the Committee on Armed Services presents itself in unanimous support of 
this committee on this bill. I thank the gentleman from Missouri (Mr. 
Skelton) and the chairman, the gentleman from California (Mr. Hunter), 
as well, for collaborating at that level. And I guess I rise today 
simply to be united behind our troops, but I do offer my concerns.
  I had an amendment that would direct the Department of Defense to 
award a contract to an independent phone bank for tending to rape and 
sexual assault victims in a confidential manner within 3 months of 
enactment of this bill. It was needed and not made in order.
  My second amendment would have directed the Department of Defense to 
conduct a full review into the situations women are placed in within 
the

[[Page H3270]]

Armed Forces. The review would specifically focus on the intimidation 
many women feel they may face in the Armed Forces in relation to 
higher-ranking male officers, who often place female subordinates in 
compromising situations. But, likewise, it would discuss, of course, 
some of the issues that we see in Iraq.
  But today I rise to say singularly that my vote will be offered to 
provide the kind of funding that we see in this bill for the troops, 
the $705 million for up-armored Humvees, the $332 million for ballistic 
armor for other Humvees, and, yes, the over $104 billion for military 
personnel, in particular the dollars that we will have for Iraq and 
Afghanistan. There is a great need.
  America, however, needs to be told the truth. And as I stand here, 
united with our troops, I demand and call for the accountability of 
those who are responsible for the incidents and the activities in the 
Iraqi prison and the other collapse of the Iraqi effort.
  I want victory in Iraq and in Afghanistan as well. I want democracy 
and security in Afghanistan and Iraq. And I want our troops to be safe, 
I want other veterans to be safe, I want their widows and families to 
be safe. We are unified behind that.
  But I see no reason to continue with the leadership of Secretary 
Rumsfeld. We must hold the higher ranking accountable.
  Today, I stand with the troops in support of this legislation.
  I rise today with grave concerns in regards to the deficiencies of 
this National Defense Authorization Act. It is truly unfortunate that 
the brave men and women of our Armed Forces are fighting around the 
world while the Department of Defense is in the current state it is in. 
Leadership must be accountable for the actions of the Armed Forces; the 
unfortunate events taking place in Iraq have caused our Nation 
irreparable harm.


                 congresswoman jackson-lee's amendments

  I am most disappointed with the decision of the Rules Committee not 
to make my amendments in order. I can find no real substantive or 
procedural reason why my two Amendments would be ruled out of order. 
Unfortunately, there is no substitute to this National Defense 
Authorization Act; therefore there is a greater need for appropriate 
amendments. My two amendments would have addressed two glaring issues 
that continue to trouble members of our Armed Forces.
  My first amendment would direct the Department of Defense to award a 
contract to an independent phone bank for tending to rape and sexual 
assault victims in a confidential manner within 3 months of its 
enactment. That phone bank would be required to have the expertise and 
training programs in place to allow operators to cope with unique 
situations arising from sexual abuse in the military context. This 
phone bank would be open to members of the Armed Forces and their 
families. I hope we all understand the devastation caused by rape and 
sexual assault. However, what we fail to recognize is the fact that 
members of the Armed Forces and their families are in a unique 
situation that is not faced by other Americans. Because of this fact it 
is imperative members of the Armed Forces and their families have an 
outlet to receive counseling and advice for issues related to rape and 
sexual assault without the fear that their report might be sent to 
their superiors in the Armed Forces without their consent.
  My second amendment would have directed the Department of Defense to 
conduct a full review into the situations women are placed in within 
the Armed Forces. This review would specifically focus on the 
intimidation many women in the Armed Forces may face in relation to 
higher ranking male officers who often place female subordinates in 
compromising situations. Also, to have been addressed specifically by 
the review are the delicate situations women in the Armed Forces are 
placed in when stationed abroad especially when in relation to direct 
contact with enemy combatants and prisoners. The Department of Defense 
would then report the full findings of this review and appropriate 
remedies to the problem within 6 months to the Senate and House Armed 
Services Committees. I feel strongly that such a review is necessary 
after the recent torture scandal that took place in Iraq. It has become 
obvious that women stationed abroad in Iraq were not placed in proper 
situations. Pfc. Lynndie England, who is accused of being involved in 
the torture and humiliation of Iraqi prisoners, says that her actions 
were forced by her superiors in the military. I will not pass judgment 
on Pfc. England until her court-martial has taken place, but what I do 
know is that it is entirely possible that she was intimidated. 
Furthermore, why were female soldiers guarding Iraqis in a prison when 
we know that it would be deeply offensive to the Iraqi public to do so? 
I am not saying that women should not be serving in Iraq, what I am 
stating is that women in Iraq shouldn't be placed in precarious 
situations which are not advantageous to them or to the mission we are 
hoping to accomplish in Iraq. The Department of Defense needs to 
conduct this review because no member of the Armed Forces should be 
intimidated into taking actions that they know to be wrong. It must be 
clear to everyone in this body that this review is necessary in light 
of recent events that have unfortunately placed women in the Armed 
Forces in a bad light.


                          iraq torture scandal

  I have great consternation with the fact that this Defense 
Authorization does nothing to address the prison situation that led to 
the Iraq torture scandal. The court-martial of a few enlisted soldiers 
will not solve a problem that is endemic. There are many steps to be 
taken to make sure that our men and women of the Armed Forces are not 
being put in uncertain situations. It must be obvious to all Members of 
this body that we need a proper system of jails to hold Iraqi prisoners 
and appropriate training of our soldiers to guard these prisoners.
  I was pleased to see that Representative Abercrombie's language on 
independent contractors was added to this Authorization. It has become 
painstakingly clear that the Pentagon has no control on the number of 
activities of independent contractors in Iraq. Apart from their own 
safety, which we cannot guarantee, independent contractors have been 
involved in a number of dubious situations which have placed further 
undue burden on our Armed Forces.
  The recent events in Iraq have made it even more painfully clear to 
me that this Administration has no real exit plan from Iraq. The truth 
is that this war was poorly planned from the start and the recent 
torture scandal has only furthered that thought. This authorization 
addresses a number of issues affecting our Armed Forces, but it does 
not properly address the needs of our Armed Forces who are still 
stationed in Iraq.


                            missile defense

  It is truly unfortunate to that this Defense Authorization continues 
this Administration's policy of having misplaced priorities. Instead of 
directing more money for proper planning in Iraq, or for greater 
protection equipment for our troops, or maybe for greater pay raises 
for our troops; this Administration has decided to budget $10.2 billion 
for missile defense next year--twice the request for any other weapons 
system. Missile defense systems are not new, in fact they have been 
discussed for decades. The truth is that missile defense systems have 
proven to be overly complex, unreliable, and often been little more 
than pipe dreams. Why in good conscience, in this time of budget 
constraints and increased need, would we allocate even more money for 
failed programs? There are more responsible ways to budget this money. 
Money from the Defense Authorization should go to our men and women in 
the Armed Forces who actually defend our Nation instead of into 
programs that just waste needed funds.


                            spratt amendment

  It is sad to see that so many relevant and necessary amendments to 
this Defense Authorization were not ruled in order. Perhaps the most 
relevant amendment was that submitted by my distinguished colleague, 
Representative Spratt. His amendment would have provided $414.4 million 
for targeted pay raises, reimbursement of life insurance premiums for 
service members that are in imminent danger, 3 Marine Corps' troop 
protection unfunded requirements, and improvements to the PAC-3 
ballistic missile defense system. These necessary defense budget items 
would have been offset by targeted cuts to 4 ballistic missile defense 
program elements, the Ground-based Midcourse Defense system, BMD 
Products, BMD Technology, and the BMD Systems Interceptor. 
Representative Spratt has found a very reasonable compromise that still 
results in Ballistic Missile Defense programs receiving an increase in 
funding over the 2004 level. It is truly unfortunate that such a 
pertinent amendment was not ruled in order and debated by this entire 
body. When the amendment process is compromised like it has been here 
then the legislative process suffers and unfortunately that means our 
Armed Forces will suffer as a result of this Defense Authorization.
  I hope in the future that such significant legislation as this will 
involve the debate and full consideration of all necessary and relevant 
amendments. The men and women of our Armed Forces and indeed the 
American people as a whole deserve as much.

                  Amendment to H.R. 4200, as Reported

                  Offered by Ms. Jackson-Lee of Texas

       At the end of title V (page 200, after line 24), insert the 
     following new section:


[[Page H3271]]



     SEC. __. CONTRACT FOR INDEPENDENT TELEPHONE BANK FOR TENDING 
                   TO RAPE AND SEXUAL ASSAULT VICTIMS IN THE 
                   MILITARY CONTEXT.

       Not later than 90 days after the date of the enactment of 
     this Act, the Secretary of Defense shall award a contract for 
     the establishment of a telephone bank, operated independently 
     from the Department of Defense, for counseling of members of 
     the Armed Forces, and family members of members of Armed 
     Forces, who are victims of rape, sexual assault, or other 
     forms of sexual abuse. The contract shall require that such 
     counseling be provided on a confidential basis and that the 
     entity awarded the contract have expertise and training 
     programs in place to allow operators to cope with unique 
     situations arising from sexual abuse in the military context.
                                  ____


                  Amendment to H.R. 4200, as Reported

                  Offered by Ms. Jackson-Lee of Texas

       At the end of title V (page 200, after line 24), insert the 
     following new section:

     SEC. __. REVIEW OF SITUATIONS IN WHICH WOMEN IN THE ARMED 
                   FORCES ARE PLACED WHILE SERVING IN THE ARMED 
                   FORCES.

       (a) Review.--The Secretary of Defense shall conduct a full 
     review into the situations women in the Armed Forces are 
     placed in within the Armed Forces. The review shall 
     specifically address--
       (1) the intimidation many women in the Armed Forces face in 
     relation to higher ranking male officers who often place 
     female subordinates in compromising situations; and
       (2) the delicate situations women in the Armed Forces are 
     placed in when stationed abroad, especially in relation to 
     direct contact with enemy combatants and prisoners.
       (b) Report.--The Secretary of Defense shall submit a report 
     on the review under subsection (a) to the Committee on Armed 
     Services of the Senate and the Committee on Armed Services of 
     the House of Representatives not later than 180 days after 
     the date of the enactment of this Act. The report shall set 
     forth the full findings of the review and appropriate 
     remedies to problems identified in the review.

  Mr. HUNTER. Mr. Chairman, I yield 4 minutes to the gentleman from New 
York (Mr. McHugh), who chairs the Subcommittee on Total Force, which 
oversees the 2.5 million Americans in uniform.
  Mr. McHUGH. Mr. Chairman, I thank the gentleman, the distinguished 
chairman of the committee, for yielding me this time, and it is with 
great honor and pride that I rise today.
  Mr. Chairman, as always, I express my deep appreciation to the 
chairman, the gentleman from California (Mr. Hunter), and of course to 
the ranking member, my dear friend for whom I hold so much respect, the 
gentleman from Missouri (Mr. Skelton), and also my partner on the 
Subcommittee on Total Force, the gentleman from Arkansas (Mr. Snyder), 
for their support, their great leadership in this effort.
  As we have heard, Mr. Chairman, time and time again, the chairman of 
the full committee challenged all of us to make this the Year of the 
Soldier. Those of us on the Subcommittee on Total Force try to make 
every day the Year of the Soldier, but I think even by that normal 
standard this subcommittee has done an outstanding job on both sides of 
the aisle of bringing together a package of benefits and of responses 
to the challenges facing our men and women in uniform that go that 
extra step further, as they are for us.
  The chairman spoke earlier about that 30,000 increase in total end 
strength for the Army and 9,000 for the Marines, placing valuable, 
much-needed troops on the ground in those places like Afghanistan, like 
Iraq, and, in turn, lessening the burden on the troops back home 
awaiting their next rotation or on the Reserve component.
  We talked about the 3.5 percent pay increase. This is now the sixth 
consecutive year in which we have provided a pay increase. This 
particular 3.5 percent exceeds that of the private sector and reduces 
the gap that we have been struggling to close between the private 
sector and military from 5.5 to 5.1 percent. We increased the wartime 
pay, the imminent danger pay, and family separation allowances that our 
brave men and women in those theaters of war deserve. We added to 
those.
  The Reserve component is not left behind either. It is very, very 
valuable. I heard my dear friend and colleague, the gentleman from 
California (Mr. Lantos), earlier speak about the need to ensure that 
those Reservists who find themselves financially stressed are in a 
position to have their incomes supplemented. In this bill, Mr. 
Chairman, for the first time in history, we propose and, in fact, do 
that, from $50,000 to $3,000 a month in added income to those Guards 
and Reservists who are deployed repeatedly and for extended periods of 
time. It is the right thing to do and the right time to do it.
  I would like to address the comments of the gentlewoman from 
California (Ms. Loretta Sanchez), and she has been a leader on this 
subcommittee and a leader in the House with respect to issues of sexual 
harassment, sexual abuse and rape; and I commend her for her 
leadership. But we want most of all to be sure that any change in the 
Uniform Code of Military Justice is done appropriately and done in a 
way that ensures better not fewer protections for the victim.
  And in this bill we require a report from the Department of Defense. 
We are going to move on that issue. Yesterday, I met with the Deputy 
Secretary for Personnel, Dr. David Chu, on this very issue. I told him 
that this subcommittee, Democrat and Republican alike, is committed to 
reforming and updating the rules and regulations in the UCMJ with 
respect to sexual harassment and rape, and told him that we wanted him 
to be a partner.
  But with him or without him, with or without the Department and the 
services, we were going to make the changes that the gentlewoman has 
discussed. This is far too important an issue to do in a hurried 
manner, and I certainly look forward to the gentlewoman's being a 
continued leader in that effort.
  In short, Mr. Chairman, I would just say that this Subcommittee on 
Total Force has worked magnificently to respond to probably the 
greatest asset this Nation has today in the war on terror. And, without 
question, the greatest asset this Nation has ever had, since our 
founding back in 1776, is our men and women in uniform.
  This is a great bill, and I urge all my colleagues to support its 
passage.
  Mr. SKELTON. Mr. Chairman, I yield 2 minutes to the distinguished 
gentleman from North Carolina (Mr. Price).
  Mr. PRICE of North Carolina. Mr. Chairman, I want to thank the 
ranking member for yielding me this time, and to commend him and the 
chairman for the hard work they have done on this legislation.
  I fear, however, Mr. Chairman, that my brief contribution to this 
debate today must concern one of the bill's serious omissions. The 
gentleman from Connecticut (Mr. Shays) and I drafted a bipartisan 
amendment that would have addressed the fact that, because of loopholes 
in current law, contractors in Iraq are operating in a legal fog where 
they are not accountable to Iraqi laws, to U.S. laws, or to laws 
governing our troops. The contractors working in Iraq are not 
comfortable with this, and we should not be comfortable with it either.
  Our amendment would have fixed this problem by closing loopholes in 
the Military Extraterritorial Jurisdiction Act, MEJA, so that 
contractors and subcontractors in Iraq and elsewhere would be 
accountable under the law, and the Department of Defense would have a 
clear responsibility to place violators of the law before the 
appropriate bar of justice.
  Our amendment had the support of the contractors themselves. The 
Parliamentarian had ruled it germane. It had strong bipartisan support 
and would have almost certainly passed, and yet we were not allowed to 
present this amendment before this body today for a vote.
  Mr. Chairman, this issue is too important for this Congress to do 
nothing. The gentleman from Connecticut and I have just introduced our 
amendment as a stand-alone bill. We welcome the support of colleagues, 
and we hope that the House leadership will not pass up this second 
chance to do the right thing.
  Mr. HUNTER. Mr. Chairman, I yield 2 minutes to the gentleman from 
Texas (Mr. Neugebauer).
  Mr. NEUGEBAUER. Mr. Chairman, I want to thank the chairman for 
working with me in adding $100 million to add 10 additional B-1 
bombers. As my colleagues know, the B-1 played a very major role in 
Iraq and Afghanistan, and the B-1s from Dyess Air Force Base were an 
integral part of that mission.
  Mr. HUNTER. Mr. Chairman, will the gentleman yield?
  Mr. NEUGEBAUER. I yield to the gentleman from California.

[[Page H3272]]

  Mr. HUNTER. Mr. Chairman, I want to thank the gentleman for his hard 
work and his urging that we try to retrieve an additional 10 B-1 
bombers. We now have 67.
  The Air Force was going to cut that down to 60. We moved it back up 
where we retrieved seven of the bombers that were going basically into 
the bone yard, and the gentleman worked hard with myself and other 
members of the committee to make sure we retrieved an additional 10 
bombers. So we are taking the B-1 up to 77 bombers.
  That B-1 has been a great asset for the projection of power for the 
United States. It has got great speed, it can hold a tremendous 
payload, and it can literally put a precision munition right through a 
goalpost. In fact, we went after Saddam Hussein early on in the war in 
Iraq with the B-1 bomber.
  So the gentleman has been a champion of the B-1. I want to thank him 
for that, and I hope he is here with me when we roll out those 
additional 10 that we are bringing back from retirement.
  Mr. NEUGEBAUER. Reclaiming my time, Mr. Chairman, I look forward to 
that day.
  Mr. SKELTON. Mr. Chairman, I yield 3 minutes to the gentlewoman from 
California (Mrs. Davis), a member of the Committee on Armed Services.
  Mrs. DAVIS of California. Mr. Chairman, I thank the gentleman for 
yielding me this time, and I rise in support of this bill.
  This bill contains important provisions for our troops, including a 
well-deserved pay raise and additional force protection equipment. I 
would like to thank my colleague from San Diego, the distinguished 
chairman of the committee, for resisting calls from the Defense 
Department to grant further relief from important environmental laws.
  Despite the great provisions in this legislation, some serious 
questions remain, and I will address one.
  If you ask the Defense Department today to tell you the number of 
contractor personnel serving in Iraq, you will get a shrug. That 
represents a fundamental area of concern. The events in Fallujah and 
the images of Abu Ghraib remind us of the role that contractor 
personnel play and how their actions can affect the military mission.
  We must come to terms with contractor participation and performance 
on the battlefield. The questions that must be answered include: Why 
are so many contractors being used in Iraq and other places? Does 
anyone really know how many are present? Who is responsible for 
ensuring contractors are properly trained and qualified? And to whom 
are the various contractors accountable? Are they providing security 
for the military, or is it the other way around?
  This bill authorizes an additional $25 billion for operations in 
fiscal year 2005, a figure that should have been included in the 
President's budget request. So before this Congress approves additional 
funding, we must come to terms with money being spent on contractor 
personnel.
  Mr. Chairman, lives are at stake.
  Mr. HUNTER. Mr. Chairman, I yield myself 1 minute to thank the 
gentlewoman who just spoke, my seatmate in California, to say something 
about contractors.
  God bless our contractors. The last figure I saw was that the 
contractors for Halliburton, who have to run Ambush Alley, bringing our 
convoys, bringing food to the troops up through the heart of the 
insurgency country in Iraq, have now lost 34 of their personnel, killed 
in action supplying American troops.
  We have always had lots of contractors for the very simple reason 
that for every troop you have out there with a rifle, you need roughly 
10 people to support him down the supply line; and a lot of those 
people have always been contractors. We have had them in all theaters 
of the war in this last century and, obviously, in Afghanistan and 
Iraq.
  The four individuals who were killed in Fallujah were American 
heroes, and they were trying to advance the American cause with every 
bit as pure a heart and sense of honor, in fact, as mostly former 
military personnel, as any of our people in the United States Marine 
Corps or Army in that area of operation.
  So I think that we should appreciate our contractors perhaps more 
than has been noted on the House floor.
  Mr. Chairman, I yield 2 minutes to the distinguished gentleman from 
South Carolina (Mr. Wilson), a very good member of the committee.

                              {time}  1615

  Mr. WILSON of South Carolina. Mr. Chairman, I would like to thank the 
gentleman from California for his leadership, and the ranking member, 
the gentleman from Missouri (Mr. Skelton), for his participation in 
crafting a wonderful bill, H.R. 4200.
  I had an opportunity last fall to accompany the gentleman from 
Missouri (Mr. Skelton) to Iraq, and I saw firsthand the courage of our 
troops and the difference they are making in winning the war against 
terror and protecting American families.
  I also had an opportunity last year of concluding 31 years' service 
with the Army National Guard, and I now have two sons serving in the 
Army National Guard, including one son deployed in Iraq; so this bill 
has a great deal of meaning to me because of the improvements of the 
statutes providing for benefits for those who serve in the Guard and 
Reserves.
  These benefits are going to be so meaningful for troops who are 
protecting our country and are mobilized at this time. First of all, 
there is the provision for new reenlistment and retention bonuses. As 
we face future crises, the Guard and Reserve will have that increased 
protection.
  Income supplement is an issue I worked very hard on for 25 years, 
premobilization and legal counseling; and the greatest concern I saw 
were the sacrifices that many of our young people made where they had a 
reduction in income. This will be addressed in this bill. It will be so 
beneficial to families.
  Finally, there is the provision for TRICARE health benefits to be 
provided for National Guard members and Reservists, and I also thank 
the chairman for including wording that will provide for the 
establishment of State defense forces. In South Carolina, we have the 
South Carolina State Guard. These are volunteers, unpaid like civil 
defense forces, who stand in to protect our people when there has been 
deployment of National Guard troops.
  Mr. Chairman, I thank the gentleman from California (Mr. Hunter) for 
ensuring our troops have the resources needed to fight the war on 
terror to protect American families. I urge my colleagues to support 
H.R. 4200.
  Mr. SKELTON. Mr. Chairman, I yield 5 minutes to the gentleman from 
Massachusetts (Mr. Meehan), the ranking member on the Subcommittee on 
Terrorism and Unconventional Threats and Capabilities.
  Mr. MEEHAN. Mr. Chairman, I thank the gentleman for yielding me this 
time and for his service on this committee. I also recognize the 
gentleman from California (Mr. Hunter) for his service and the way that 
he conducted the hearings on this mark in a very bipartisan way, 
affording an opportunity for all Members to speak out. In fact, my 
recollection is the chairman even came down on the shortened of a vote 
which I have not seen in quite some time. I am sure the gentleman will 
fix that in the other body. I thank the gentleman for his service.
  As a ranking member of the Subcommittee on Terrorism and 
Unconventional Threats, I believe the product before us today is, on 
the whole, a solid proposal. This committee pledged to make this year 
the Year of the Soldier, and I think we made great strides in achieving 
that goal. We have a well-deserved pay raise for our troops. I am 
pleased that this legislation authorizes critical force protection 
resources, including $329 million for up-armoring Humvees, $358 million 
for add-on armor kits, and $421 million for interceptor body armor.
  This fulfills all of the shortfalls, including on the Army's unfunded 
requirements list, which I am disappointed that the administration 
failed to request. The committee has also included language that I put 
forward requiring the Department of Defense to report to Congress on 
the lessons learned from its failure to expeditiously field protective 
equipment to our troops in Iraq. And we have expressed a sense of 
Congress urging the Department to release all appropriated

[[Page H3273]]

funds to armor thin-skinned Humvees as soon as possible.
  We are a Nation at war, and we cannot shortchange our troops by 
leaving them defenseless in the theater. I am proud that this committee 
has stepped forward and authorized important resources to support our 
ongoing military operations in Iraq and Afghanistan, despite the 
administration's failure to include much of this funding in its annual 
budget. But I also strongly support efforts to authorize $67 billion to 
take us through the end of fiscal year 2005 instead of the end of this 
calendar year.
  Additionally, I am pleased that my colleagues recognized the need to 
address the gaping holes in the oversight of civilian contractors hired 
by the Department of Defense in the face of human rights abuses in Abu 
Ghraib prison.
  Our committee approved an amendment offered by the gentleman from 
Hawaii (Mr. Abercrombie) to require the Department to report to 
Congress on the activities of contractors in Iraq. We also included my 
proposal on directing the Department to issue guidance for training 
contractors in the Geneva Conventions and international laws of war.
  Finally, the bill makes important quality-of-life improvements for 
our troops and for our veterans. I applaud the committee for finally 
ending the survivors benefit penalty. I am also encouraged that the 
bill addresses many of the inequities in benefits for our Reserve 
component, from eliminating the $5,000 cap on reenlistment bonuses, to 
removing restrictions on Reservists from accessing tuition assistance, 
as included in an amendment which I offered.
  With respect to the terrorism subcommittee's mark, several of the 
provisions in this portion of the bill deserve praise. First, I am 
pleased we included a number of recommendations to streamline and 
accelerate the development and acquisition of technologies to combat 
terrorism. Additional resources are provided in a number of areas, 
including chemical and biological research and important detection 
initiatives.
  The committee also honored a request by the gentleman from Texas (Mr. 
Turner) and me to improve the manner in which we develop and acquire 
medical countermeasures against biological warfare agents.
  Finally, I cannot say I support every provision in this authorization 
bill. I remain concerned about cuts to DARPA and several information 
technology programs, as well as the committee's failure to include 
several important nonproliferation provisions which I believe are key 
to winning the global war on terrorism.
  I hope that we can at least have an honest debate on these issues 
another day. With that said, legislating is the art of compromise, and 
I believe the product before us will boost our troops and our war-
fighting capabilities. Therefore, Mr. Chairman, I ask my colleagues to 
join me in supporting its final approval.
  Mr. SKELTON. Mr. Chairman, I yield 3 minutes to the gentleman from 
Vermont (Mr. Sanders).
  Mr. SANDERS. Mr. Chairman, I thank the gentleman for yielding me this 
time and applaud the gentleman for all the good work he is doing for 
the United States.
  Mr. Chairman, no Member in this body disagrees that so long as our 
troops remain in Iraq, they should have the resources they need in 
order to protect their lives. We have not done well in this area up to 
this point, and we must do better.
  Further, in my judgment, the Bush administration has done a terrible 
job in keeping faith with our veterans. This bill makes a start in 
improving that situation, but we have a very long way to go in that 
area, especially with regard to veterans health care.
  Mr. Chairman, there are a lot of good things in this bill, and there 
are in my view portions of this bill that are not good and that are 
very wasteful of taxpayer money.
  Most importantly, however, is what is lacking in this legislation, 
and that is there is no demand in this bill for the President to 
provide us with an exit strategy from Iraq, a timetable as to how we 
can get out. Since the war in Iraq began, we have lost 790 men and 
women, over 4,500 have been wounded; and we are spending billions every 
month.
  Meanwhile, anti-American feelings are growing throughout the Muslim 
world, breeding more potential terrorists, and we are becoming 
increasingly isolated from our long-term allies. Significantly, in a 
recent U.S. Government-sponsored poll, 82 percent of the Iraqi people 
indicated that they now disapprove of the U.S. and allied military 
being in their country; 82 percent disapprove. The war in Iraq, in my 
view, is not helping us in the very difficult struggle against 
international terrorism. In many ways, it is making a bad situation 
worse.
  The time is long overdue for President Bush to develop an exit 
strategy as to when the Iraqi people will really be allowed to govern 
themselves. It is not good enough for the U.S. to install Iraqi 
figureheads who do not have the support or confidence of the Iraqi 
people. The President must also tell us when the U.N. and the 
international community will be helping rebuild Iraq. That should not 
only be the burden of our soldiers and our taxpayers. President Bush 
must do all that he can to internationalize the transition situation.
  Lastly, Mr. Chairman, and most importantly, the President must begin 
to tell us when American troops will begin coming home. We have lost 
790 men and women already, 4,500 have been wounded, many thousands of 
Iraqi men, women and children are dead. We need an exit strategy to get 
our troops home as soon as feasible.
  Mr. HUNTER. Mr. Chairman, I yield 2 minutes to the gentleman from 
Indiana (Mr. Pence), who has worked so hard on the chem-bio protection 
issues.
  (Mr. PENCE asked and was given permission to revise and extend his 
remarks.)
  Mr. PENCE. Mr. Chairman, I thank the gentleman for yielding me this 
time.
  To provide for the common defense is the first object of the Federal 
Government. I rise today in strong support of the National Defense 
Authorization Act because it meets that objective.
  This legislation with its principal focus on the American soldier 
earns the gentleman from California (Mr. Hunter) the well-deserved 
title Soldier's Chairman, which I believe will stick.
  American soldiers with the help of coalition forces have accomplished 
extraordinary things in recent days, liberated 50 million people in 
Iraq and Afghanistan, captured and imprisoned a brutal dictator, 
deposed an evil regime, and American soldiers have carried out hundreds 
of raids, seizing caches of enemy weapons and munitions, including 
ominously this week, weapons of mass destruction that were found in 
Iraq in the form of munitions containing mustard gas and sarin gas.
  It is precisely this discovery, as the chairman attests, that 
concerns me and most Members of Congress most deeply, for the well-
being of our men and women in uniform in the theater of operation in 
Iraq.
  I am pleased to say that H.R. 4200 provides an extraordinary amount 
of resources in the form of force protection: $1.5 billion for chemical 
and biological defense programs, individual protection, decontamination 
equipment, chemical and biological protective shelters, just to name a 
few.
  We have most certainly now found weapons of mass destruction in Iraq, 
and the nature of the munitions we have found suggest there are more 
stockpiles yet to be uncovered. And putting a primacy on achieving our 
objective of securing the peace in Iraq must remain our fervent goal; 
but beyond that, protecting our forces in that theater of operation 
from exposure to these weapons of mass destruction is key, and the new 
National Defense Authorization Act achieves that goal. I am grateful 
for the chairman; I am grateful for every member of the committee on 
both sides of the aisle for creating this extraordinary legislation.
  Mr. SKELTON. Mr. Chairman, I yield 3 minutes to the gentleman from 
Oregon (Mr. DeFazio).
  Mr. DeFAZIO. Mr. Chairman, there are many good parts of this bill, 
such as those that relate to pay and benefits, particularly a quality 
for National Guard reenlistees and others. There are some necessary, 
long-overdue basics for the troops, armored Humvees among others. But I 
rise to raise another issue

[[Page H3274]]

which is of extraordinary importance, and hopefully I can get some 
agreement to resolve this problem.

                              {time}  1630

  We do not have a draft in the United States of America. We have a 
great all-volunteer military. Unfortunately, there are two aspects to 
that. One I tried to address with an amendment which was not allowed 
which is what are called ``stop-loss orders.'' Many people in the 
military today are being forced to serve beyond the terms of their 
contract under stop-loss orders with no compensation. I think minimally 
they should be compensated. But today in the Portland Oregonian, page 
one, we have a story which is now breaking that faulty orders were sent 
out by the Army last month which told people in the Individual Ready 
Reserve if they did not choose a branch and reenlist that the military 
would choose soon a branch and mandatorily reenlist them. They now 
admit that this order was a mistake. Here is a quote from one veteran: 
``I started crying and said, `I'm not doing this,' '' said Carissa 
Jenkins, 22, of Keizer who was discharged from active Army duty in 
January 2003. ``I have a baby, a husband. All my values have changed.'' 
She said she joined the National Guard last week to keep from going 
back into the regular Army. It is reported that in Oregon alone, 
enlistments were up by a factor of 1,000 percent for the month. Nothing 
else explains it except that these people were being told they were 
about to be drafted back into the military. And nationally, over 1,063 
inactive Army Reservists signed up under these false pretenses.
  I would ask that these reenlistments, which were done under color of 
faulty orders, be abrogated by the Secretary of Defense. I would hope 
that the two gentlemen on the floor here would join me. If these 
soldiers want to sign up of their own free will without a draft, 
without faulty orders, then certainly they should be allowed to do 
that. But this woman and a number of others are saying, no, they did 
not want to go back onto active duty, they did not want to go back into 
active guard status, but they did it because they were told if they did 
not do that that the Army was going to do it to them.
  Is the chairman of the committee familiar with this situation?
  Mr. HUNTER. Mr. Chairman, will the gentleman yield?
  Mr. DeFAZIO. I yield to the gentleman from California.
  Mr. HUNTER. Mr. Chairman, I would just say to the gentleman, no, I am 
not familiar with that situation.
  Mr. DeFAZIO. Is the ranking member familiar? I understand he is 
trying to get some information on this.
  Mr. SKELTON. If the gentleman will yield, I am familiar with the 
article and I have asked my staff to make official inquiry with the 
Reserve component of the United States Army to answer this.
  Mr. DeFAZIO. If soldiers like this woman, Carissa Jenkins, were 
forced against their own better judgment and their own life 
circumstances to reup because they felt they were about to be compelled 
without their own volition back into active duty, would the gentleman 
agree that perhaps we could look at voiding these contracts and 
allowing them to decide without coercion whether or not they want to go 
back into active duty?
  Mr. SKELTON. I think coercion is certainly absolutely wrong. I would 
say to the gentleman that we would do everything we could to correct 
the mistake. I am certainly positive that the military would stand 
behind a mistake that they made.
  Mr. DeFAZIO. I thank the gentleman, and I hope that we can get this 
rectified. As I said previously, there are many good parts to this 
bill. I believe in the all-volunteer military; I believe in the pay and 
benefits enhancements; and I believe in providing better equipment, 
which the bill does. I intend to support it.
  Mr. HUNTER. Mr. Chairman, I would just say to the gentleman that I 
will be happy to work with the gentleman from Missouri on this issue.
  Mr. DeFAZIO. I thank the gentleman.
  Mr. HUNTER. Mr. Chairman, I yield 2 minutes to the distinguished 
gentleman from New Jersey (Mr. Smith), chairman of that very important 
committee, the Committee on Veterans' Affairs.
  Mr. SMITH of New Jersey. Mr. Chairman, I rise to engage in a colloquy 
with the gentleman from California, chairman of the Committee on Armed 
Services. I want to thank the gentleman for his support and leadership 
on a significant matter affecting the security of our Nation's military 
installations. Last year scores of undocumented workers were arrested 
at several DoD installations across the country, including New Jersey. 
In the post-9/11 world, we simply cannot afford to allow our 
contractors to hire undocumented and unskilled workers to work on 
military bases.
  As the gentleman knows, the gentleman from New Jersey (Mr. Saxton), 
the gentleman from New Jersey (Mr. LoBiondo), and I have worked 
together with him to address this problem. Section 822 of H.R. 4200 
authorizes a demonstration project intended to provide incentives to 
contractors who have a meaningful and comprehensive skilled worker 
staffing plan to ensure all workers are properly documented. The 
provision, however, does not state the size or the location of the 
demonstration project.
  Mr. HUNTER. Mr. Chairman, will the gentleman yield?
  Mr. SMITH of New Jersey. I yield to the gentleman from California.
  Mr. HUNTER. The gentleman is correct. The size and location of the 
demonstration project have been left to the discretion of the Secretary 
of Defense. I will add, however, the whole point of doing a 
demonstration project is to test whether a legislative idea will 
produce the results that its proponents intend. The Secretary should 
conduct a thorough and complete demonstration program.
  Mr. SMITH of New Jersey. It is my hope and expectation that the 
Secretary performs at least part of the demonstration project with 
contractors in New Jersey. The legislative text of section 822 leaves 
this choice up to the discretion of the Department of Defense, but can 
we count on the chairman's support to help us persuade DoD to include 
New Jersey in the demonstration project based on the fact that an 
investigation by our own U.S. attorney, Christopher Christie, resulted 
in the discovery of security violations and the arrests of illegal 
aliens who had access to several of our New Jersey bases?
  Mr. HUNTER. I would just say to my good friend that he and his 
colleagues from New Jersey and others can certainly count on my 
support.
  Mr. SMITH of New Jersey. I thank the gentleman. I urge my colleagues 
to support this provision and to vote ``yes'' on H.R. 4200.
  Mr. SKELTON. Mr. Chairman, I yield 2 minutes to the gentlewoman from 
California (Ms. Lofgren).
  Ms. LOFGREN. Mr. Chairman, I appreciate the work done by the 
gentleman from California and the gentleman from Missouri on this 
legislation. There are some important pieces to this bill, equipment 
for our troops and the like. There are matters of concern, for example, 
the new nuclear program that I have opposition to. But there is an 
obscure provision of the bill that I want to make sure Members know 
about and that is section 1404 which would require U.S. companies to 
get a license before they export any goods listed on the military 
critical technologies list. According to a copy of the list I found on 
the Department of Defense Technical Information Center Web site, that 
includes computers that exceed 1,500 MTOPS. That would be considered 
military critical. So under this bill, computers, laptops, Sony 
PlayStations that exceed 1,500 MTOPS would require an export license. 
That would be to export it anywhere. If you want to sell a Sony 
PlayStation to Europe, to England, you would need a Defense Department 
export license. I think that that is a problem.
  The outdated metric of 190,000 MTOPS needs to be changed, but to go 
down to 1,500 MTOPS as a metric is literally the stone age of 
computing. I believe that if there are specific military critical 
technologies that are not sufficiently controlled under existing export 
regulations, say, night vision or surveillance devices, then let us 
draft something that controls those technologies. But to say that we 
cannot sell a laptop to somebody in London, that the Ipods cannot be 
exported to France, that the Sony PlayStations

[[Page H3275]]

cannot be sold to Japan, I think is a mistake. I know that this is 
about war. I did not know it was about war on the American economy.
  Mr. HUNTER. Mr. Chairman, I yield 1 minute to the distinguished 
gentleman from New Jersey (Mr. Ferguson).
  Mr. FERGUSON. Mr. Chairman, I thank the chairman of the full 
committee for his great work on this bill. I rise in support of H.R. 
4200. Today we address the needs of a Nation at war on multiple fronts 
and sustain our commitment to our troops, providing them with the best 
technology and equipment in support of our ongoing mission in Iraq and 
in Afghanistan and in the war on terror all around the world. This bill 
will improve living and working conditions for U.S. military personnel 
and their families. It recognizes the critical contribution of our 
National Guard and Reserve and increases authorization for their 
modernization programs. It protects and supports our military retirees 
and their survivors. Most important, it gives our troops the resources 
and equipment that they need to keep themselves safe and America free.
  The Committee on Armed Services has deemed this the Year of the 
Soldier. I can think of no better way to honor and serve those who are 
giving of themselves, making extraordinary sacrifices, putting their 
lives on the line in defense of this country than by supporting H.R. 
4200, the national defense authorization bill. I thank the chairman and 
the ranking member for their great work on this.
  The CHAIRMAN pro tempore (Mr. Camp). Without objection, the gentleman 
from Texas (Mr. Reyes) may control the time of the gentleman from 
Missouri (Mr. Skelton).
  There was no objection.
  Mr. HUNTER. Mr. Chairman, I yield 3 minutes to the gentleman from 
Georgia (Mr. Gingrey), who has done so much great work on this 
committee.
  Mr. GINGREY. Mr. Chairman, I rise in strong support of H.R. 4200, and 
I would like to commend the gentleman from California and the gentleman 
from Missouri for their tireless efforts in support of our soldiers, 
our sailors, airmen and Marines who are bravely defending us at home 
and abroad.
  Mr. Chairman, this is the Year of the Soldier. The bill before us 
clearly reflects that objective. The bill does a remarkable job of 
covering a wide scope of issues that are vitally important to our armed 
services. From survivor benefit improvements to the 3.5 percent across-
the-board pay raise that H.R. 4200 authorizes, this bill addresses the 
most pressing needs of our troops in a very trying time for this 
country. For our Reservists who experience a reduction in their income 
while away from their civilian jobs, there are income replacement 
payments. For our deployed soldiers, H.R. 4200 contains almost $830 
million for up-armored Humvees and $358 million for vehicle add-on 
armor kits.
  I am also grateful for the work that the Committee on Armed Services 
has done to fully fund the F/A-22 program this year. In particular, I 
want to thank the gentleman from California (Mr. Hunter) and the 
gentleman from Pennsylvania (Mr. Weldon), my subcommittee chairman, for 
doing this and making sure that we got this vitally important program 
fully funded.
  Mr. HUNTER. Mr. Chairman, will the gentleman yield?
  Mr. GINGREY. I yield to the gentleman from California.
  Mr. HUNTER. Mr. Chairman, first, let me just say that this is a 
program that shares support on our committee among Democrats and 
Republicans. This aircraft capability is something that is very 
important to our country. We just did a briefing on the emerging 
aerospace industrial base in China, their new high-performance 
aircraft, which at some point may threaten American interests. This 
aircraft is vital, it is needed, and it is an important follow-on. We 
will keep working on it. I thank the gentleman for his hard work on it.
  Mr. GINGREY. I thank the gentleman from California for the full 
funding for these 24 planes. It will go a long way toward providing 
stability for that program and ensuring that America maintains air 
dominance for the next 30 years.
  In closing, Mr. Chairman, I want to thank the gentleman from 
California and the gentleman from Missouri for their hard work on this 
bill.
  Mr. REYES. Mr. Chairman, it is my pleasure to yield 2\1/2\ minutes to 
the gentlewoman from California (Ms. Lee), a fellow Texan.
  Ms. LEE. Mr. Chairman, let me thank the gentleman from my home city 
of El Paso, Texas, for yielding me this time and for his commitment to 
our young men and women in uniform. My father served many, many years 
at Fort Bliss, Texas.
  I rise today to discuss the three amendments that I would have 
offered had the Republican leadership allowed genuine debate on our 
Nation's defense policy. Of course, instead we heard earlier a rule was 
crafted which silenced probably over 95 amendments.
  Let me talk about my three amendments for a minute. The first 
amendment which I offered called for the creation of an international 
commission to monitor prison conditions in Iraq. This commission would 
be made up of representatives from the Iraqi Government and Iraqi civil 
society, the International Red Cross, the International Red Crescent, 
the United Nations, the United States and Coalition Armed Forces. 
Contrary to what the President's lawyers apparently think, the Geneva 
Conventions is neither quaint nor is it obsolete. This amendment would 
have ensured compliance to help restore badly damaged United States 
credibility. We have all seen the pictures. The whole world has seen 
the pictures. We need to take action to correct the situation and to 
convince the Iraqi people and the world that we are abiding by 
international law.
  My second amendment would have created a database of those who have 
been detained. Family members should not have to wonder if their loved 
ones have simply disappeared. We have learned that over 70 percent of 
the detainees probably are individuals who should not be detained. We 
cannot condone the policy and practice of holding ghost prisoners who 
just vanish into United States custody. This is simply wrong. But this 
amendment also was rejected.
  Finally, my third amendment prohibited the use of United States funds 
in the overthrow of democratically elected governments. That is a 
simple democratic principle that I thought we held. Given the 
allegations of this government's involvement in the overthrow of 
President Aristide's government in Haiti, this amendment would have 
restored confidence in the protection of democracy. It was born out of 
the Bush administration's alleged involvement in the recent coup in 
Haiti.

                              {time}  1645

  First of all, this is a similar amendment that was instituted under 
Representative Edward Boland, who prohibited the Reagan administration 
from using money to fund the Nicaraguan contras. It is shocking and 
totally shameful that we even need an amendment saying that our 
government is not in the business of overthrowing its democratically 
elected counterparts throughout the world; but history, including our 
very recent history, teaches us that we do.
  This amendment also was rejected, along with many others offered by 
my colleagues. Some would have called for an exit strategy from Iraq; 
others would have reined in the uncontrolled and unmonitored use of 
private contractors, and that would have prevented the escalation, of 
course, of the arms race. These are, again, some other amendments that 
would have been allowed had we been allowed to debate them.
  I say that the Republican majority continues to abuse its power.
  Mr. HUNTER. Mr. Chairman, I yield 2 minutes to the gentleman from 
California (Mr. Cunningham), a very distinguished American from San 
Diego, the Navy Top Gun who was nominated for the Congressional Medal 
of Honor for actions over the skies of North Vietnam and who has a real 
heart for the servicemen.
  Mr. CUNNINGHAM. Mr. Chairman, the gentleman from Missouri (Mr. 
Skelton) is a descendant of Daniel Boone. He is like a brother. The 
gentleman from Texas (Mr. Reyes), or Silver, as we call him, would 
rather work in a bipartisan manner than anything and is a very close 
friend.
  I heard this morning in our conference the words ``a soldier's 
chairman,'' and I cannot think of a better

[[Page H3276]]

fitting for this bill and the chairman that presents it. The gentleman 
from California's (Mr. Hunter) dad, R.O. Hunter, was in the Marine 
Corps. The gentleman from California (Mr. Hunter) served in Vietnam. 
His son is in the Marine Corps and a lieutenant today.
  But I think even more important, the people in this Chamber who know 
the gentleman from California (Mr. Hunter), know he has given his life 
to this Nation, to our military, and our veterans.
  We go out to Walter Reed and we see these kids that have lost a foot 
or an arm, and do the Members know what they ask me? I talked to the 
gentleman from Pennsylvania (Mr. Murtha), and they talk to him the same 
way; they say, Do not let them kick us out of the service, let us go 
back to our units. These kids that are wounded multiple times and they 
fight to stay with their units because they believe in it.
  And I think what a fitting bill that takes care of our families, that 
takes care of our troops, and is supported in such a bipartisan way. I 
think this Nation is proud, and I think this Nation supports not only 
this bill, but the actions of Members on both sides of the aisle.
  Mr. SKELTON. Mr. Chairman, I yield myself such time as I may consume.
  May I respond to the gentleman from California (Mr. Cunningham), my 
friend. I am most appreciative of his kind words.
  This is a very important bill, Mr. Chairman. We are at war. Needless 
to say, a lot of legislative work went into this bill, and of course 
there are some disappointments that go along with it. But the bottom 
line is, it is going to be very helpful in both the anti-guerrilla 
effort in Iraq and the antiterrorism effort in Afghanistan as well as 
supporting the troops all over the globe.
  Cicero once said that gratitude is the greatest of all virtues, and 
through this legislation, in our own way, Mr. Chairman, we are 
expressing our gratitude to the young men and young women who wear the 
uniform of our country. We thank them for doing their duty, for 
understanding what their duty is, for being professionals at what they 
are, and bottom line, being patriotic.
  So we thank them in so many ways, in the amendments and in the 
paragraphs and the figures, as well as in the speeches in this Chamber, 
the gentleman from California (Mr. Hunter), my friend, our chairman, 
and Members on both sides of the aisle.
  So, Mr. Chairman, I fully support the bill. And at the end of this 
debate, I say thank you to the troops and I thank the majority, 
especially our chairman, for the cooperation that we have had.
  Mr. Chairman, I reserve the balance of my time.
  Mr. HUNTER. Mr. Chairman, I yield myself such time as I may consume.
  Having heard the eloquence of my great colleague, the gentleman from 
Missouri (Mr. Skelton) and preceded by the gentleman from California 
(Mr. Cunningham), my old compadre, I do not think I can add anything to 
what they said.
  Ms. SLAUGHTER. Mr. Chairman, I rise in strong support of H.R. 4200, 
Fiscal Year 2005 Defense Authorization. The House Armed Services 
Committee deserves recognition for producing a bill that addresses the 
critical needs of our Armed Forces at a time when we are engaged in 
major military campaigns in both Iraq and Afghanistan. The bill also 
makes provisions to ensure the long-term strength of our military 
readiness and improve the livelihood of our military families.
  Specifically, I am pleased that this measure eliminates the Survivor 
Benefit Penalty to spouses of deceased members of the Armed Forces. Not 
only is this annuity essential to the livelihood of many surviving 
spouses, but it provides much-needed peace of mind to our dedicated 
military personnel.
  Additionally, I am pleased that this bill contains $400 million for 
individual body armor. I have long been concerned about this issue 
since receiving several phone calls and heartfelt letters from parents 
in my district whose children serving in Iraq have no body armor. There 
is no excuse for us to send our soldiers into harm's way without this 
most basic protection. H.R. 4200 commits substantial resources to 
ensure that our troops have the body armor they need.
  Next week, we will commemorate Memorial Day and remember the 
courageous men and women who made the ultimate sacrifice for our 
freedom. Regrettably, since the beginning of the campaign in Iraq, we 
have added 793 to their ranks. More troubling is that potentially one 
in four of these fatalities could have been avoided if our troops had 
had the armored equipment they needed.
  This bill makes a commitment not only to the memory of the soldiers 
we have lost but also the ones that continue to be in harm's way in 
Iraq. We owe it to their memory and those who answer the call to 
service to do everything in our power to minimize the risk of loss of 
life.
  I also want to rise in opposition to H. Res. 648, the rule for 
consideration of this bill. In Rules Committee, I offered three 
amendments that would have substantially improved the underlying bill. 
Regrettably, the Committee decided to deny this body the opportunity to 
consider two of my amendments.
  My first amendment would have ensured that the Department of Defense 
had a steady stream of domestically produced electronic equipment. 
These components are vital to the maintenance of some of our most 
sophisticated weapons and communications systems.
  My second amendment would have allowed individuals to apply for 
benefits under the Energy Employees Occupational Illness Compensation 
Act if they developed diseases from their work at facilities that had 
residual contamination, after the Manhattan Project had been completed. 
It is long overdue to do right by this aging and ill population.
  Our men and women in uniform are bravely serving all over the world 
because their country has called on them. In return, we must ensure 
that we are doing everything within our power to provide them with what 
they need. This bill makes great progress toward meeting the needs of 
our soldiers and their families.
  For this reason, Mr. Chairman, I rise in strong support for H.R. 
4200.
  Mr. STARK. Mr. Chairman, I rise today in strong opposition to S. Con. 
Res. 95, the ``Concurrent resolution on the budget for fiscal year 
2005.'' In these times of economic uncertainty it is unthinkable to 
pass a budget that will leave this country over $8 trillion in debt at 
year's end.
  I have often quoted my friend, Princeton economist Uwe Reinhardt, 
when talking about the Federal budget. He explains the budget as a Memo 
to God, outlining our highest priorities as a Nation. In tune with the 
Republicans' faith-based initiative, I give you this year's memo to 
God, and ask everyone to think if this is the message we really want to 
send to God and the American people.

     To: God.
     From: Republicans in Congress and the Bush Administration.
     Re: FY 2005 Budget Priorities.
     Date: May 19, 2004

       God, it has been a really tough year. We are on track to 
     have the worst jobs growth record since the great depression, 
     we have lost nearly 800 of our bravest young men and women in 
     Iraq, and 43.6 million Americans have no health insurance. 
     With this in mind, we have proposed a budget that is both 
     fiscally and compassionately conservative, which we have 
     outlined below.
       We feel it is absolutely necessary to have a $690 billion 
     deficit in FY 2005, which will raise the national debt to 
     over $8 trillion dollars. We are raising the debt limit under 
     the Hastert rule, thereby precluding the House from ever 
     debating whether the coming years' budget should be allowed 
     to increase the Federal debt by such an alarming amount. 
     Every man, woman, and child will have over $26,000 in 
     national debt to call their very own by the end of FY 2005.
       God, we know it's a sin, but we haven't been very good at 
     telling the truth lately; first it was weapons of mass 
     destructions, and now it is Medicare. Our own experts have 
     told us that the Medicare prescription drug bill we passed 
     last year will cost $534 billion dollars over 10 years. 
     However, we didn't tell anybody before we voted, so there is 
     no reason to pretend it is reality now. The budget resolution 
     assumes this legislation will only cost $409 billion over ten 
     years, meaning we have purposely underestimated the $609 
     billion deficit to further cover up previous mistakes.
       Since we have been so dedicated to healthcare this year 
     with Medicare, we have no choice but to make broad cuts in 
     the Medicaid program. Over the next five years we promise to 
     cut mandatory Medicaid spending by nearly $900 million 
     dollars. We are aware that many low-income children and 
     mothers may lose access to affordable healthcare services, 
     but this is the price we have to pay for continuing huge tax 
     cuts for corporations and wealthy Americans.
       Racking up an over $600 billion deficit also requires large 
     doses of fiscal irresponsibility. As the party of fiscal 
     conservatism we are dedicated to paying for our increased 
     spending--unless that spending is earmarked for the war on 
     terrorism--but not the decreased revenues caused by our tax 
     cuts. Pay-as-you-go rules worked to balance the budget during 
     the Clinton Administration, so we cannot possibly use them to 
     balance our budget. Yes, we did pretend to require new 
     spending and tax cut offsets for one year, but that has no 
     real effect on our agenda because we exempted three major tax 
     cuts that we plan to enact this year that will cost $551 
     billion over the next ten years.
       Finally, we have further endangered Social Security and 
     Medicare by increasing the

[[Page H3277]]

     debt, thereby increasing the amount that must be borrowed 
     each year from the trust funds. With the baby boomers 
     approaching retirement, we know we can't continue to pilfer 
     these trust funds, but we do it anyway. In the end, the only 
     plausible option will be to cut Social Security and Medicare 
     to continue paying for our unjustified wars and irresponsible 
     tax cuts for the upper class.
       God, we know you will understand why it is necessary to 
     continue tax cuts for the wealthiest Americans while we cut 
     vital services for the elderly, people with disabilities and 
     the poor. This memo is about our priorities, and upon close 
     analysis of this budget I think you will see what true 
     compassion and fiscal conservatism is really all about.

  That is the message that House Republicans are sending to God and to 
the American public. It's not a message I agree with and that is why I 
urge my colleagues to join me in voting ``no'' on this misguided 
priority list for our Nation.
  Mr. SCHIFF. Mr. Chairman, throughout the last year there have been 
numerous reports, some issued by government agencies, others emanating 
from news organizations, that have detailed critical shortages of 
equipment needed to protect our young men and women serving in Iraq.
  I visited Iraq last year and spoke with our troops serving there 
about the shortages of armored Humvees and body armor. I know that many 
of my colleagues who have visited Iraq have raised similar concerns. I 
have pressed this issue during consideration of the Iraq supplemental 
and on numerous other occasions. Many of our troops who have been 
killed in Iraq in the past months were riding in unarmored Humvees that 
were hit by small arms fire, rocket-propelled grenades, or improvised 
explosive devices. Doubtless, some were lost because they were not 
protected.
  I was deeply disappointed by the length of time that it has taken to 
provide our soldiers with this life-saving equipment, and I am pleased 
that Chairman Hunter and Ranking Member Skelton wisely increased 
funding for these programs by several orders of magnitude. Because of 
these increases, I will add my voice of support for the bill.
  I am also pleased that the Committee has increased the end strength 
of the Army and Marine Corps over the next three years. Our active duty 
forces, our Reserves, and our Guard have been overstretched by 
operations in the War on Terrorism and the war in Iraq. I have been 
strongly supportive of increasing the size of the military, and by 
authorizing additional forces, we will enable our troops to get the 
training and time for rest and re-fit that they need and deserve.
  I am less pleased by the provisions relating to the rush to deploy a 
National Missile Defense system that I believe is not ready for 
deployment. I support additional research and testing of ballistic 
missile defense systems, but the imminent deployment of the first 
interceptors is premature and diverts taxpayer money that is more 
immediately needed to provide basic security for our troops.
  I am most concerned by the ill-conceived decision to authorize more 
than $36 million for research into the Robust Nuclear Earth Penetrator, 
as well as a new generation of advanced nuclear weapons. At a time when 
we are asking other nations to forswear the development of nuclear 
weapons, when we invaded Iraq because we thought that Saddam was 
developing nuclear weapons, when Osama bin-Laden has exhorted his 
followers to use nuclear weapons against the United States, and when 
our own State Department has compiled a Top Secret list of sites around 
the world that contain unsecured fissile material, we should be 
focusing on non-proliferation, counter-proliferation, and cleanout 
activities. Funding for a new generation of nuclear weapons enhances 
neither our security, nor our credibility.
  Mr. McGOVERN. Mr. Chairman, I want to express my appreciation to 
Chairman Hunter and Ranking Member Skelton for their leadership in 
bringing this bill before the House. I honor after dedication to our 
uniformed men and women, and their families and dependents.
  I have often criticized our military budget. There is simply too much 
waste, too much duplication, too much fraud and abuse. We fund weapon 
systems that don't work, or contribute to a new arms race, or both. On 
these matters, I will support the amendment to be offered later today 
by Congresswoman Tauscher and my Massachusetts colleague Congressman 
Markey.
  I believe, however, that this bill makes important contributions to 
protecting our troops in the field and to the welfare of their 
families.
  H.R. 4200 fixes the long-standing problem of the Social Security 
offset for our military retirees and their survivors, which is a top 
priority for my constituents. The Survivor Benefit Plan currently 
penalizes over 225,000 aging survivors, mostly widows of our nation's 
veterans. These survivors are forced to give up more than one-third of 
their retirement benefit when they become eligible for Social Security. 
Mr. Chairman, this is simply wrong.
  Bipartisan legislation to fix the Survivor Benefit Plan was 
introduced over a year ago by our colleague form Florida, Congressman 
Miller, and despite having 336 cosponsors, was left to languish. So, I 
salute the Committee for ending this injustice by providing a five-year 
phase-out of the Social Security offset.
  I strongly support the increased funding for Armored Humvees, to 
outfit currently deployed Humvees with ballistic armor, and for 
Interceptor body armor. This bill also reimburses military personnel 
who had to purchase their own body armor because the Pentagon failed to 
provide them with protection.
  I also want to thank the Committee for including an initiative for 
income replacement payments to Reservists who experience a reduction to 
income from their civilian life. I believe this is an important step 
that should be extended to National Guard members, especially for those 
who have experienced extended deployments. The financial stress faced 
by the families of our active-duty Reserve and Guard is well-known to 
every Member of this House, and I believe we must respond in a far more 
comprehensive way if we expect to honor their service and sacrifice, 
retain current personnel, and attract future candidates for service. I 
am deeply disappointed that the Republican majority will not allow 
Congressman Lantos to offer his amendment, which would help equalize 
the difference in income for federal workers who have been called to 
active-duty in the Reserves. I am an original cosponsor on 
Congressional Lantos' legislation that would provide such funding, and 
I am very proud that the Commonwealth of Massachusetts has already 
implemented such a program for state employees who have been activated. 
I simply do not see why we cannot do the same for federal employees 
nation-wide.
  I also want to thank the Committee for its strong bipartisan support 
for keeping in place the limits on the number of U.S. military troops 
and contractors in Colombia, and I thank our colleagues from 
Mississippi, Gene Taylor, for his leadership on this issue.
  Mr. Chairman, I want to be clear: Even though I support this bill I 
have serious concerns about U.S. Policy in Iraq and Afghanistan. This 
bill cannot be a blank check. Our policies are in serious trouble in 
both countries. The Bush Administration must, I believe, change course 
if we are to have any hope of brining security, stability and 
representative government to the region.
  Mr. TOM DAVIS of Virginia. Mr. Chairman, I rise in support of H.R. 
4200, ``The National Defense Authorization Act for Fiscal Year 2005''.
  I would like to start off by commending Chairman Duncan Hunter and 
the entire Committee on Armed Services for all of the hard work on this 
legislation. A bill of this magnitude requires an enormous bi-partisan 
effort. The result here is legislation that will provide the resources 
necessary for U.S. military forces to protect and defend this country 
both at home and abroad.
  I am concerned, however, with several provisions in this bill 
affecting the acquisition system. The first provisions interfere with 
the Department of Defense's competitive sourcing program. The second 
group of provisions represent an ill-considered attempt to protect 
domestic jobs. We can all agree that the Federal government should do 
as much as it can to support jobs in America. However, tacking on 
onerous provisions to the acquisition system to protect a handful of 
jobs is not the right approach. It costs money--taxpayers' money. The 
acquisition system's purpose is to procure the best value goods and 
services with taxpayers' dollars, not to protect jobs. Most important, 
we have learned time and time again that provisions restricting our 
ability to tap the resources of the global market in the name of saving 
jobs result in retaliation from our trading partners, costing us more 
jobs in the long run.
  First, we have the provisions of the Langevin amendment included in 
the Committee mark. These provisions, if enacted, would require 
sweeping changes to the Administration's critical competitive sourcing 
program and hamstring the Defense Department's ability to manage its 
programs and workforce.
  Our economy is based on a free market system where competition is 
essential to maintaining vibrancy and productivity. Who can argue with 
the idea that a little competition is needed to spur efficiency in 
Government? The problem is that, despite having considerable input into 
the revised OMB Circular A-76 that provides the procedural framework 
for the competitive sourcing program, its opponents have mounted an 
attack on competitive sourcing. They equate ``competitive sourcing'' 
with ``outsourcing'' or ``privatization,'' or at least they say they 
do. But words matter, and competitive sourcing is simply not the same 
as outsourcing or privatization. Outsourcing assumes up front that the 
private sector can perform activities better, cheaper, and/or faster

[[Page H3278]]

than a government organization. Competitive sourcing does not assume 
the private sector is the preferred provider. Its purpose is not to 
downsize the government workforce. It uses competition to decide. 
Opponents argue that competitive sourcing takes jobs away from Federal 
employees. This is simply untrue. In most cases, the Federal employees 
involved in the competition either retain their jobs if the agency team 
wins or are rehired if the private sector wins. In fact, according to 
agency data from a recent GAO report, in-house teams win most of the 
competitions, retaining almost 76 percent of the positions competed. 
The key point is, public-private competitions result in substantial 
savings in the activity competed, regardless of who wins the 
competition.

  The Langevin language would cripple the competitive sourcing program 
at the Department of Defense. It would, for example, prevent the 
Department from making reasoned management decisions for the benefit of 
our Armed Forces and the American taxpayer by prohibiting the Defense 
Department from making any reorganization of a function so that it 
would be performed by 10 or fewer employees unless it conducts a 
public/private competition. Think about this: under this provision, the 
Secretary of Defense is prohibited from paring his office staff from 12 
people to 9.
  Further, the Langevin amendment unfairly tilts public-private 
competitions toward the Federal employees and introduces into private 
businesses' right to offer their employees a total compensation package 
by prohibiting the A-76 cost comparison from including any savings that 
could be attributable to a businesses' use of a worker health plan that 
is different than that provided to Federal government employees. This 
would establish a Federal mandate to private industry and cripple the 
ability of small businesses to participate in this program. That, Mr. 
Chairman, is not good government.
  The Langevin provision also would require the Department of Defense 
to establish a pilot program to conduct an arbitrary number of public/
private competitions for new work and work currently performed by 
contractors. This would mandate that the Department expend resources so 
that Federal workers can compete with the private sector to perform new 
commercial work. Don't our Federal workers have enough to do in 
fulfilling their current responsibilities? Interestingly, the 
requirements would not extend to any work to be performed by a 
contractor whose workers are represented by a private-sector labor 
union.
  Finally, the Langevin amendment imposes a mass of reporting and 
tracking requirements, which in a number of cases duplicate 
requirements that are currently in chapter 146 of title 10. The only 
point of these is to gum up the competitive sourcing program. A number 
of these mandates would apply whenever a service contract is awarded by 
the agency, whether or not as the result of a competitive sourcing 
study. So not only are the Langevin supporters interested in 
hamstringing the competitive sourcing program but also in reversing the 
recently passed reforms in service contracting.
  Secondly, section 811 of the bill, titled Defense Trade Reciprocity, 
would prohibit DoD from purchasing any defense article or service from 
any company in a country (including our NATO allies, our coalition 
partners, and Israel) that within one year does not have an offset 
policy toward U.S. companies that is comparable to U.S. offset policy. 
This provision is ill advised, would severly limit the ability of the 
Department of Defense to cooperate with our allies and operate 
overseas, and would undercut the ability of our defense industry to 
compete in selling to our allies.
  Last fall, the Congress passed two provisions dealing with offsets. 
In the extension of the Defense Production Act, we asked the Commerce 
Department to complete a study by this August on the impact of offsets 
on the supplier base and required the Administration to discuss with 
our trading partners ways to reduce the ``adverse'' impacts of offsets. 
Congress is to receive periodic reports on how such discussions are 
progressing.
  In last year's Defense Appropriations Act, we required the Department 
of Defense to prepare a report by March 1 on the impact of offsets on 
the defense industrial base and make any appropriate recommendations. 
We ought to at least wait for the results of the actions we demanded of 
the Executive Branch only a few months ago before taking premature 
actions on offsets.
  In fact, while offsets distort international defense trade, concern 
about the impact of offsets is overblown. The annual Commerce 
Department review of offsets that is required by a provision of the 
Defense Production Act consistently concludes that defense sales that 
have associated offset provisions produce approximately 30,000 U.S. 
jobs, and the offsets reduce that figure by about 9,000 jobs, for a net 
gain to the U.S. of 21,000 jobs. Any actions that jeopardized those 
sales could result in a net loss of jobs and an erosion of the U.S. 
defense industrial base.
  The U.S. currently enjoys a trade balance in defense exports of 6-1 
in its favor with respect to Europe and around 12-1 with respect to the 
world. In a time when we worry about ballooning trade deficits, the 
U.S. aerospace industry delivers the largest export surplus of any 
sector in the economy with over a $25 billion trade surplus in 2003. 
Policies that restrict the ability of U.S. companies to continue making 
such sales will hinder interoperability with our allies, reduce U.S. 
jobs, and undercut the supplier base.
  The simple fact is that restrictive provisions such as this are self-
defeating, Cold War anachronisms that cripple our participation in the 
Global Market and jeopardize defense exports--one of the major sectors 
of our economy.
  Finally, the Manzullo amendment, to be considered on the floor, would 
add the creation of jobs in the U.S. as one of the instances that the 
Secretary of Defense could use in a determination under 10 U.S.C. 
2304(b)(1) to exclude a source to establish or maintain alternative 
sources of supply. The 10 U.S.C. 2304(b)(1) is seldom used and it is 
discretionary, but it could be used to justify a sole-source contract 
award under the guise that it created jobs.
  Moreover, the amendment would add ``the creation of jobs'' to the 
list of required evaluation factors for all negotiated acquisitions 
under 10 U.S.C. 2305(a)(3)(A). This would mandate that the creation of 
jobs be a factor in the selection of the winning offeror in a 
competitive acquisition. The problem here is that we would be requiring 
the consideration of a factor that has nothing whatever to do with the 
merits or cost of the proposal. Again we are burdening our acquisition 
system with a requirement that is not related to the acquisition of 
best value goods and services for the government.
  Additionally, I am concerned with Chairman Hunter's amendment that 
adds money for the Patriot missile and uses a $48 million cut to the 
KEI program as one of the offsets. The KEI program will play a crucial 
role in our Nation's security by providing enemy ballistic missile 
defense. Any cut in funding will hinder this program's advances in the 
area of anti-ballistic missiles.
  I also want to offer my support to the Wamp amendment, which makes 
improvements to the Energy Employees Occupational Illness Compensation 
Act. The amendment addresses statutory problems that have created 
significant bottlenecks for thousands of claims being made under this 
important DOE program.
  Mr. Chairman, in closing, I want to again commend Chairman Hunter for 
this bill in its entirety, despite my opposition to some of its 
specifics.
  Mr. SIMMONS. Mr. Chairman, I rise today in strong support for H.R. 
4200, the National Defense Authorization Act for fiscal year 2005.
  As a Member of the Armed Services Committee, I wish to thank Chairman 
Hunter and Ranking Member Skelton, as well as our subcommittee chairmen 
and ranking members for their tireless work in crafting this fine piece 
of legislation.
  These are not easy times for the Department of Defense. The brave men 
and women of the Army, Navy, Air Force and Marines are serving us 
proudly around the globe. They are daily putting their lives on the 
line to defend the liberties we take for granted. In the last 2 years 
these men and women have overthrown two terrorist regimes and liberated 
over 50 million people in Afghanistan and Iraq.
  The least we can do for our troops is provide good wages, adequate 
armor and ammunition, and new aircraft, ships and fighting vehicles. 
This legislation meets and exceeds these goals. I am pleased that this 
bill will provide a 3.5 percent across-the-board pay raise, eliminating 
out-of-pocket housing expenses and increasing retention incentives and 
hazard duty pay.
  Hearing of inadequacies in body armor and up-armored HMMWVs from 
family members of soldiers in the field, I made force protection my 
number one priority. Earlier this year I traveled to Ohio to see first-
hand the manufacturing process and capabilities of up-armored HMMWVs.
  I thank the chairman and ranking member for fulfilling their 
commitment by providing $704.7 million to increase and sustain 
production of the vehicles at a rate of 450 per month.
  I also applaud their forward vision in providing $358.2 million for 
add-on armor kits for the Army's truck fleet. The add-on armor provides 
critical protection against anti-personnel projectiles and improvised 
explosive devices (IEDs).
  Earlier this year the 1109th AVCRAD, a Connecticut National Guard 
aviation repair unit, returned from a year deployment in Kuwait and 
Iraq. Conversations with the CO made clear to me that the Blackhawk 
helicopters in theater are wearing out rapidly.
  Therefore, I am pleased to see that many of the funds originally 
authorized in the Comanche program have been redirected to the 
procurement of much needed Blackhawk Helicopters. The eight helicopters 
added by the

[[Page H3279]]

committee brings the grand total in the bill to 63. Our soldiers 
specifically asked for more Blackhawks, a workhorse helicopter for our 
Army and Navy, and this is now provided in this bill.
  For our sailors, this bill provides funding for the next Virginia 
Class submarine. Virginia Class will also be seeing critical research 
and development funding for both payloads and sensors and the critical 
Multi-Mission Modules.
  Additionally, I am pleased that this legislation addresses the 
security needs of Naval Submarine Base New London, in Groton, 
Connecticut, by providing $4.42 million for security enhancements and 
upgrades to entry gates 3 and 5. These upgrades are necessary to 
protect the submariners stationed at Subase New London, as well as 
protecting our investment in the submarine fleet, including the new USS 
Virginia that will soon call the Subase home.
  Mr. Chairman, in December 2003, Time magazine named their ``Person of 
the Year'' as the American Soldier. This year's defense authorization 
bill has been named ``The Year of the Troops.'' We praise the men and 
women of the Armed Forces for their service. I am pleased to support a 
piece of legislation that sends a clear message from this Congress that 
we support their service and sacrifice.
  Mr. LARSON of Connecticut. Mr. Chairman, I rise today in support of 
H.R. 4200, the National Defense Authorization Act for Fiscal Year 2005. 
I'd like to thank Chairman Hunter, Ranking Member Skelton, and my 
Subcommittee leaders Chairman Weldon and Ranking Member Abercrombie and 
Chairman Hefley and Ranking Member Ortiz for all their hard work and 
efforts to put together a great and bipartisan bill.
  The bill we are taking up on the floor today contains a number of 
very important provisions beyond its routine function of providing for 
the yearly defense budget.
  Specifically, Section 304 includes language that provides authority 
to the Secretary of Defense to reimburse a member of the Armed Forces 
for the cost of protective body armor purchased between September 11, 
2001 and December 31, 2003 by the member, or by another person on 
behalf of the member, for use by the member while deployed in 
connection with Operation Noble Eagle, Operation Enduring Freedom, or 
Operation Iraqi Freedom if the member was so deployed and was not 
issued protective body armor before the member became engaged in 
operations or situations described in 37USC310(a)(2), regarding 
``Special pay: duty subject to hostile fire or imminent danger''.
  This language is a direct result of both the effort and sacrifice of 
my constituent Pene Palifka of East Hartford, whose son, Bill, was 
serving in the Army National Guard's 248th Engineer Company in Iraq. On 
Monday night, October 13, 2003, I held a public forum about the FY04 
Iraq supplemental appropriation request in my District where I first 
met Pene Palifka and heard her story. When her son Bill was deployed, 
he was deployed without the Army's new Interceptor body armor, because 
as it had been reported and as I heard directly from soldiers serving 
in Iraq when I visited there in August 2003, there was a shortage of 
roughly 40,000 of these vests at that time.
  Out of concern for her son's safety, she came forward and provided 
the money herself, about $1,100, to purchase body armor for her son. 
Many other families and soldiers have had to do the same, and that is 
simply wrong.
  Congress appropriated funding in the FY03 Emergency Wartime 
Supplemental that was signed into law in April 2003 to procure and 
distribute additional vests. But, as became evident by the time the 
Iraq Supplemental Appropriation bill was before Congress last October, 
there were various manufacturing and procurement issues preventing 
these vests from making it to the front, and this shortage continued to 
exist through the early part of this year, prompting many soldiers or 
their families to take matters into their own hands.
  While the Congress and the Department of Defense have worked to 
address these shortfalls since then, this bill fulfills the 
government's responsibility to reimburse the people who stepped in and 
spent money out of their own pocket to equip the soldiers serving in 
the Global War on Terrorism with equipment that Congress intended the 
Department of Defense to provide.
  The next issue I would like to point out and commend our Committee 
leaders for is working with all of us to find the resources to make 
eliminating the so-called ``widows tax'' possible. This bill eliminates 
the social security offset under the SBP by increasing the annuities 
paid to survivors of military retirees who are 62 or older from 35 
percent of retired pay to 55 percent by March 2008. The surviving 
spouses of our military servicemen and women deserve their full 
benefits.
  Finally, this bill includes a 2-year BRAC delay, an important pause 
at a time when we must all reassess the priorities of the military and 
its requirements to provide for the national security of this country 
in a post 9/11 environment.
  Mr. MILLER of Florida. Mr. Chairman, I proudly rise today in 
wholehearted support of H.R. 4200, the National Defense Authorization 
Act of 2005. This legislation fully restores the Survivor Benefit Plan 
annuity to what was promised America's surviving spouses. I applaud my 
Armed Services Committee colleagues for bringing a quarter of a million 
military widows and widowers one step closer to seeing increases in 
their monthly checks next year. This is a Defense Authorization measure 
of which this body can be proud.
  Since coming to Congress, I have been working this issue of 
particular interest--restoration of the minimum Survivor Benefit Plan 
basic annuity to fifty-five percent (55%) for survivors age sixty-two 
(62) and older.
  Under present law, surviving spouses are subject to a reduction to 
thirty-five percent (35%) as part of the initial SBP law enacted in 
1972. But this critical piece of information didn't find its way into 
military retirement briefings and SBP election forms until many years 
later.
  Here's a 1982 election form. Nowhere will you find the offset 
mentioned. Survivors feel betrayed by this bait and switch. And at 35 
percent, SBP provides only a poverty-level-or lower-annuity for most 
survivors, even those of relatively senior officers.
  For nearly three years, I have worked with members of this Committee, 
my colleagues on the Veterans Affairs Committee, and numerous service 
organizations to introduce SBP bills that will bring the needed equity. 
Both bills I have introduced in this Congress have received strong 
bipartisan support with over three hundred (300) Members sponsoring one 
or both. I am proud that this Committee has produced SBP reform that 
exceeds even my greatest expectations. H.R. 4200 will fully eliminate 
the so-called ``Widow's Tax'' by April 1, 2008--in under five years.
  Again, what we're doing today exceeds all expectations. It's what we 
set our sights upon when I introduced H.R. 548. I thank Chairman Duncan 
Hunter and the first-rate Armed Services Committee staff, who literally 
worked around the clock to make this work.
  Mr. Chairman, I urge this entire body to support these provisions we 
have worked tirelessly hard fought, and its victory is shared by so 
many whose efforts have been tireless and unrelenting. I thank my 
colleagues who have stood by me to realize this victory.
  Ms. ESHOO. Mr. Chairman, the export control amendments in H.R. 4200 
will limit Presidential authority to effectively promote U.S. national 
security and will hobble the U.S. information technology industry by 
preventing it from selling commodity commercial products to our allies.
  This bill requires an export license for all exports of goods and 
technologies on the Military Critical Technologies List to all 
countries.
  This legislation would roll back export controls on computers below 
the levels implemented five years ago--thus preventing our technology 
industry from exporting computing products that are a few generations 
old.
  This amendment is so broad that it would immediately require export 
licenses for exports of things such as laptop and desktop computers, 
which can't possibly serve any national security interest.
  By passing this amendment, we are immediately cutting off American 
manufacturers from customers around the world, including key export 
markets such as Canada, Mexico, Europe, and Asia.
  The amendment is so arbitrary, and the list so outdated, that it 
bears no rational relation to U.S. national security, and threatens to 
derail America's economic recovery.
  Mr. Chairman, I urge my colleagues to protect our critical technology 
industry and vote against H.R. 4200.
  Mr. TERRY. Mr. Chairman, I rise in strong support of H.R. 4200, the 
National Defense Authorization Act for Fiscal Year 2005.
  This legislation supports our troops with $422 billion for national 
defense and an additional $25 billion for operations in Iraq. Funding 
for national missile defense and combat capability would increase. 
Special emphasis on protective equipment such as body armor and 
heavily-armored Humvees would also help our soldiers return safely to 
their families.
  We must care for our soldiers' families here at home. I am proud to 
support the well-earned 3.5 percent pay raise and boost in hardship pay 
from $300 to $750. As a co-chair of the House Impact Aid Coalition, I 
also commend Chairman Hunter for including $50 million for the 
education of military children. This would send an additional $20 
million to school districts across the country that serve military 
families. I thank the Chairman for his hard work and strong support of 
this critical funding.
  While I appreciate the emphasis the Air Force has placed on quality 
of life improvements, I am deeply concerned that mission readiness be 
funded at adequate levels to support our troops. For example, Offutt 
Air Force Base in Nebraska has a mission critical runway repair 
requiring urgent attention. The

[[Page H3280]]

safety of airmen flying in and out of Offutt depends upon the condition 
of this runway, which the Air Force has labeled a critical safety 
hazard.
  Although the repair is the top priority of the Air Combat Command 
that oversees 38 major installations, the Pentagon has given funding 
priority to dormitories and fitness centers. I thank Chairman Hunter 
for at least funding design of the needed runway, and urge him to 
reexamine the Air Force's priorities in conference. We must ensure 
mission critical repairs are completed for the safety of our airmen. 
Military bases that consistently and efficiently perform should also be 
rewarded for their success.
  The War on Terror has been costly in both blood and treasure. More 
than 750 American soldiers have given the ultimate sacrifice of their 
lives. Our troops who patrol the streets of Iraq, scour the towns and 
mountains of Afghanistan, and root out terrorist cells worldwide, know 
the price of freedom. Their service to protect our nation honors their 
fallen comrades and dignifies the United States, and should not be 
demeaned by the cowardly actions of soldiers in the Abu Ghraib prison.
  Mr. Chairman, I urge my colleagues to join me in supporting H.R. 4200 
to aid our valiant troops.
  Mr. ALEXANDER. Mr. Chairman, I rise today to express my strong 
support for the passage of the National Defense Authorization Act for 
Fiscal Year 2005. This legislation will continue to ensure that our 
military services are provided with the personnel, equipment and 
capabilities that they need to protect our national security.
  Section 815 of the pending National Defense Authorization Act will 
ensure that American freight-forwarding companies in Louisiana, Texas, 
California, Tennessee and other states are properly utilized in the 
efforts by the United States to provide cargo shipments for military 
operations, humanitarian relief aid, or postwar reconstruction in Iraq 
and Afghanistan. American freight forwarders should be used to the 
greatest extent possible to process, dispatch or otherwise handle 
government-sponsored cargoes for shipment overseas.
  The Congress continues to see to it that American companies and their 
hard-working labor force benefit from the procurement of goods and 
services by the United States government. Specifically, the Congress 
has required that the American work force be provided with a fair 
opportunity to compete for federal government contracts. Similarly, 
cargo preference laws ensure that government-generated cargoes are 
shipped aboard United States-flag vessels. However, no such protections 
exist for American freight forwarders. As a result, significant 
government shipments of cargoes for military operations, international 
assistance and other purposes are handled today by foreign-owned and 
controlled freight forwarders without any consideration for the use of 
American companies to provide freight forwarding services.
  Mr. Chairman, the legislation before us will provide appropriate 
protections for American freight forwarding companies and U.S. 
government-sponsored cargoes. The bill establishes a preference for the 
participation of U.S. freight forwarding companies as prime or 
subcontractors in the shipment of government-sponsored cargoes, 
provided that the freight forwarding services are offered at fair and 
reasonable rates. Furthermore, this initiative will further protect the 
chain-of-custody of critical and sensitive project and other U.S. 
government-sponsored cargoes destined for Iraq and Afghanistan.
  Mr. Chairman, I thank Chairman Hunter, Congressman Skelton and other 
members of the House Armed Services Committee for their support in this 
matter, and I look forward to working with them on the passage of this 
vital legislation.
  Mr. KUCINICH. Mr. Chairman, I rise in strong opposition to the FY 
2005 Defense Authorization bill. The bill continues to fund an 
ineffective and wasteful defense strategy based on the Cold War. The 
bill authorizes $422.2 billion for the Department of Defense and the 
nuclear weapons activities of the Department of Energy. However, the 
2001 Defense Authorization bill was $310 billion, revealing that we 
have increased nominal defense spending 36 percent in just four short 
years.
  The FY 2005 bill also authorizes $25 billion for combat operations in 
Iraq and Afghanistan. This increases the total funding to $447.2 
billion. The running total for emergency supplementals has now reached 
$191 billion for the wars in Iraq and Afghanistan. Unfortunately the 
Republican led Congress continues to refuse its Constitutional role of 
oversight.
  The bill funds several weapons systems as well as a war in Iraq that 
will provide little additional security for Americans. For example, the 
Ballistic Missile Defense is slated to receive $9 billion for a system 
that does not work, but will be implemented this year as an election 
year boost for the President.
  The F/A-22 ``Raptor'' Fighter is a cold war fighter plane without an 
enemy to fight. Yet, the bill will spend $4.5 billion to purchase 24 
aircraft. The bill authorizes the purchase of 11 V-22 ``Osprey'' Tilt 
rotor for $1.6 billion, yet the plane is terribly unsafe. The bill also 
authorizes more research dollars for the DD(X) Destroyer, wasting $1.2 
billion on a boat the Navy does not need. I also object to the Boeing 
airborne tankers lease/purchase program. This is a classic example of 
corporate welfare.
  I am greatly disappointed that the Republicans have sought to block 
consideration of two amendments I would have offered. These amendments 
would have provided the House of Representatives the opportunity to 
help bring resolution to the ongoing crisis in Iraq.
  My first amendment would require that the President develop criteria 
for troop withdrawal from Iraq.
  The war that we are fighting in Iraq at this time is an 
unconventional war. We have already deposed the leader of the country, 
and now we now fight both an unknown enemy and a new enemy that was not 
there before we invaded. There is no exit strategy and every six months 
or so the American people are faced with a new bill. The leaders of our 
country have given them no indication that they even know how to get 
out of Iraq, much less an idea of when their sons and daughters will 
come home.
  The amendment that I would have offered today would require the 
Administration to provide Congress with a list of criteria for the 
withdrawal of combat troops in Iraq.
  This amendment is useful because it provides America and the world 
with the answers to the question: What are we still doing in Iraq and 
what must happen so that we can leave?
  These questions are simple and they are necessary.
  After all, what are the goals that this Administration hopes to 
achieve before the withdrawal of troops can commence?
  At the very beginning of the war, the ultimate goal was to disarm 
Iraq from weapons of mass destruction. But there weren't any weapons of 
mass destruction in Iraq, and our troops are still there.
  At another point, the goal was to remove Saddam Hussein from power. 
Well, that's been done too, and our troops are still there.
  So now what? What are the next criteria?
  Will troops come home after we've established the largest embassy in 
the world inside Iraq? Or will they come home after the oil starts 
flowing in to the right pockets? Or will it be when the defense 
contractors get billion more of American taxpayer dollars? Or when 
there are permanent military bases in Iraq so that we can extend an 
American empire to the Middle East?
  Or is it when we've brought ``democracy'' to the people of Iraq? But 
what constitutes a democracy? An interim government was set up and a 
constitution was drafted, but we're still there. Will we pull out after 
an election, or two elections, or three? What happens if the Iraqis 
elect a leader that we don't like? Will we stay inside until the person 
of our choosing is running the country?
  Is the criterion for leaving Iraq complete ``pacification'', in that 
we won't leave Iraq until all the fighting has stopped and the country 
is secure? What will that mean? Will it mean a slow down to one attack 
per day or week or month?
  My amendment is a modest amendment because it requires the 
Administration to think about all these questions and then tell the 
American people what exactly it will take to bring the troops home.
  And we should all want the answers to these questions. I know that my 
constituents elected me to ask these questions. After all, it's their 
money that we're committing.
  My feelings about the war are known here. I have been against the war 
and the occupation. But since it appears as if the Administration does 
not care to volunteer the details of their objectives in Iraq, we 
should then ask them.
  My second amendment would offer a sense of Congress that would 
disavow any intention for permanent United States military presence in 
Iraq. As we all know, many people across the globe have accused the 
United States of imperial thoughts and actions. To ensure the global 
community we have no such notions; we must publicly declare our 
intentions not to establish permanent military bases.
  A month after the United States began military operations in Iraq, 
the New York Times (April, 21, 2003) printed a story indicating that 
the United States was considering the establishment of four permanent 
military installations in Iraq. The bases identified are the Baghdad 
international airport; the Talil airbase near Nasariyah; a base known 
as H-1 in the western desert near Syria; and Bashur airfield in the 
Kurdish region near the convergence of the borders of Turkey, Iran and 
Iraq. On the very next day the Secretary of Defense denied that the 
United States was seeking permanent military installations in Iraq.
  But, neoconservatives are openly talking about the benefits of such 
permanent bases.

       Given that the Turks had been truculent about access by 
     ground before Operation

[[Page H3281]]

     Iraqi Freedom, that the use of Saudi Arabia has been a 
     delicate matter for the past decade, and that Iraq is ideally 
     situated for operations throughout the region, there is a 
     compelling case for siting U.S. bases in Iraq. (There's No 
     Place Like Iraq . . . For U.S. military bases. Tom Donnelly 
     Weekly Standard 05/05/2003)

  More recently in the Inter Press Service News Agency:

       But Qatar and even Kuwait, which has acted as a de facto 
     military base for Washington since 1990, could not substitute 
     for the kind of strategic depth and flexibility offered by 
     the four bases identified by the Times as those to which the 
     administration wants permanent access. (Jim Lobe, Nov. 28, 
     2003)

  I believe the Arab world would take great comfort in hearing a 
declaration by the United States to disavow permanent military bases in 
Iraq. The United States must state without exception that it does not 
seek to maintain a long-term military presence in Iraq. Such a 
declaration will reduce anti-American sentiment in the region and, I 
believe reduce the attacks upon our troops.
  So it is greatly unfortunate that the leadership of the House has not 
seen fit to debate these amendments.
  Mr. BEREUTER. Mr. Chairman, this Member certainly is pleased that 
H.R. 4200 provides authorization for funding for a very important 
project in Nebraska's 1st Congressional District. The bill includes 
$614,000 for a national guard and reserve center headquarters building 
at Lincoln Airbase, Nebraska. This is the second year that this Member 
has requested this funding for this necessary project. This Member 
would like to thank the distinguished Chairman of the House Armed 
Services Committee (Mr. Hunter), the distinguished Ranking Member (Mr. 
Skelton), the distinguished gentleman from Colorado (Mr. Hefley) who 
serves as Chairman of the Readiness Subcommittee, and the Ranking 
Member, the distinguished gentleman from Texas (Mr. Ortiz) for their 
assistance in this important matter.
  These funds will be used to complete the design process associated 
with the construction of a new headquarters and emergency operating 
center for the Nebraska Army National Guard. The existing headquarters 
facility must be relocated due to the new Antelope Valley highway/flood 
control infrastructure project in the City of Lincoln, Nebraska.
  While this project was included in the Department of Defense's (DoD) 
FY2009 Future Year Defense Plan (FYDP), it needs to be accelerated due 
to the unanticipatedly expeditious progress on the Antelope Valley 
Freeway and Flood Control project which will very soon necessitate the 
abandonment of the current headquarters. It appears that the National 
Guard Bureau agrees since initial design funding was allocated last 
year from existing funds, even though it was not authorized or 
appropriated.
  The new facility will house the Joint Forces Headquarters, the Army 
National Guard Emergency Operating Center, the 24th Medical Company, 
the 105th Personnel Service Detachment, the Nebraska State Patrol 
dispatch and communications systems and the Nebraska Emergency 
Management Agency. Building a multipurpose facility on an existing 
military installation increases security for all of the components. 
Furthermore, housing several Federal, state and local agencies in one 
facility allows the Department of Defense to save scarce military 
construction funds. Also, bringing those various components within 
close proximity would facilitate better coordination among the agencies 
on issues of national and homeland security. Indeed, it is critically 
important to enhance these relationships in the current post-September 
11th environment. The authorization included in H.R. 4200 will allow 
this important project to move forward.
  In addition, this Member is pleased that $497,000 in design funds is 
authorized in H.R. 4200 for a critically important runway repair at 
Offutt Air Force Base which is immediately contiguous to the 1st 
Congressional District of Nebraska. This repair project has been 
championed by the distinguished gentleman from Nebraska (Mr. Terry), 
who represents Offutt, with this Member, and the two U.S. Senators from 
Nebraska.
  Mr. Chairman, in closing, this Member urges his colleagues to support 
H.R. 4200.
  Mr. HUNTER. Mr. Chairman, I yield back the balance of my time.
  Mr. SKELTON. Mr. Chairman, I yield back the balance of my time.
  The CHAIRMAN pro tempore (Mr. Camp). All time for general debate has 
expired.
  Pursuant to the rule, the committee amendment in the nature of a 
substitute printed in the bill is considered as an original bill for 
the purpose of amendment and is considered read.
  The text of the committee amendment in the nature of a substitute is 
as follows:

                               H.R. 4200

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

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

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

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

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

            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--Program Matters

Sec. 111. Multiyear procurement authority for the light-weight 155-
              millimeter howitzer program.
Sec. 112. DDG-51 modernization program.
Sec. 113. Repeal of authority for pilot program for flexible funding of 
              cruiser conversions and overhauls.
Sec. 114. Force protection for asymmetric threat environment.
Sec. 115. Allocation of equipment authorized by this title to be made 
              on basis of units deployed or preparing to deploy.
Sec. 116. Multiyear procurement authority for KC-767 tanker aircraft 
              acquisition program.
Sec. 117. Other matters relating to KC-767 tanker aircraft acquisition 
              program.

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

              Subtitle A--Authorization of Appropriations

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

    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Future Combat Systems program strategy.
Sec. 212. Collaborative program for research and development of vacuum 
              electronics technologies.
Sec. 213. Annual Comptroller General report on Joint Strike Fighter 
              program.
Sec. 214. Amounts for United States Joint Forces Command to be derived 
              only from Defense-wide amounts.
Sec. 215. Authority of Director of Defense Research and Engineering to 
              award prizes for advanced technology achievements.
Sec. 216. Space Based Radar.
Sec. 217. Mark-54 Torpedo Product Improvement Program.

                      Subtitle C--Missile Defense

Sec. 221. Fielding of ballistic missile defense capabilities.

                  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.
Sec. 304. Reimbursement of members of the Armed Forces who purchased 
              protective body armor during shortage of defense stocks 
              of body armor.

                  Subtitle B--Environmental Provisions

Sec. 311. Report regarding encroachment issues affecting Utah Test and 
              Training Range, Utah.

                 Subtitle C--Workplace and Depot Issues

Sec. 321. Simplification of annual reporting requirements concerning 
              funds expended for depot maintenance and repair 
              workloads.
Sec. 322. Repeal of annual reporting requirement concerning management 
              of depot employees.
Sec. 323. Public-private competition for work performed by civilian 
              employees of Department of Defense.
Sec. 324. Public-private competition pilot program.
Sec. 325. Sense of Congress on equitable legal standing for civilian 
              employees.
Sec. 326. Competitive sourcing reporting requirement.

                   Subtitle D--Information Technology

Sec. 331. Preparation of Department of Defense plan for transition to 
              Internet Protocol version 6.
Sec. 332. Defense business enterprise architecture, system 
              accountability, and conditions for obligation of funds 
              for defense business system modernization.
Sec. 333. Establishment of joint program office to improve 
              interoperability of battlefield management command and 
              control systems.

[[Page H3282]]

              Subtitle E--Readiness Reporting Requirements

Sec. 341. Annual report on Department of Defense operation and 
              financial support for military museums.
Sec. 342. Report on Department of Defense programs for prepositioning 
              of material and equipment.

                       Subtitle F--Other Matters

Sec. 351. Extension of Arsenal Support Program Initiative.
Sec. 352. Limitation on preparation or implementation of Mid-Range 
              Financial Improvement Plan.
Sec. 353. Procurement of follow-on contracts for the operation of five 
              Champion-class T-5 tank vessels. 
Sec. 354. Sense of Congress on America's National World War I Museum.

              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. Maximum number of reserve personnel authorized to be on 
              active duty for operational support.
Sec. 404. Accounting and management of reserve component personnel 
              performing active duty or full-time National Guard duty 
              for operational support.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
              reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2005 limitation on number of non-dual status 
              technicians.

              Subtitle C--Authorizations of Appropriations

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

                   TITLE V--MILITARY PERSONNEL POLICY

              Subtitle A--General and Flag Officer Matters

Sec. 501. Length of service for service chiefs.
Sec. 502. Repeal of requirement that Deputy Chiefs and Assistant Chiefs 
              of Naval Operations be selected from officers in the line 
              of the Navy.
Sec. 503. Increase in age limit for deferral of mandatory retirement 
              for up to 10 senior general and flag officers.
Sec. 504. Increased flexibility for voluntary retirement for military 
              officers.
Sec. 505. Repeal of requirement that no more than 50 percent of active 
              duty general and flag officers be in grades above 
              brigadier general and rear admiral (lower half).
Sec. 506. Revision to terms for assistants to the Chairman of the Joint 
              Chiefs of Staff for National Guard and Reserve matters.
Sec. 507. Succession for position of Chief, National Guard Bureau.
Sec. 508. Title of Vice Chief of the National Guard Bureau changed to 
              Director of the Joint Staff of the National Guard Bureau. 

Sec. 509. Two-year extension of authority to waive requirement that 
              Reserve chiefs and National Guard Directors have 
              significant joint duty experience.
Sec. 510. Repeal of distribution requirements for Naval Reserve flag 
              officers.

           Subtitle B--Other Officer Personnel Policy Matters

Sec. 511. Transition of active-duty list officer force to all regular 
              status.
Sec. 512. Mandatory retention on active duty to qualify for retirement 
              pay.
Sec. 513. Distribution in grade of Marine Corps Reserve officers in an 
              active status in grades below brigadier general
Sec. 514. Tuition assistance for officers.

                 Subtitle C--Reserve Component Matters

Sec. 521. Revision to statutory purpose of the reserve components.
Sec. 522. Improved access to reserve component members for enhanced 
              training.
Sec. 523. Status under disability retirement system for reserve members 
              released from active duty due to inability to perform 
              within 30 days of call to active duty.
Sec. 524. Federal civil service military leave for Reserve and National 
              Guard civilian technicians.
Sec. 525. Expanded educational assistance authority for officers 
              commissioned through ROTC program at military junior 
              colleges.
Sec. 526. Effect of appointment or commission as officer on eligibility 
              for Selected Reserve education loan repayment program for 
              enlisted members.
Sec. 527. Number of Starbase academies in a State.
Sec. 528. Comptroller General assessment of integration of active and 
              reserve components of the Navy.
Sec. 529. Operational activities conducted by the National Guard under 
              authority of title 32.
Sec. 530. Army program for assignment of active component advisers to 
              units of the Selected Reserve.

                  Subtitle D--Joint Officer Management

Sec. 531. Strategic plan to link joint officer development to overall 
              missions and goals of Department of Defense.
Sec. 532. Joint requirements for promotion to flag or general officer 
              grade.
Sec. 533. Clarification of tours of duty qualifying as a joint duty 
              assignment.
Sec. 534. Reserve joint special officer qualification requirements.

              Subtitle E--Professional Military Education

Sec. 541. Improvement to professional military education in the 
              Department of Defense.
Sec. 542. Ribbons to recognize completion of joint professional 
              military education.
Sec. 543. Increase in number of private-sector civilians who may be 
              enrolled for instruction at National Defense University.
Sec. 544. Requirement for completion of Phase I joint professional 
              military education before promotion to colonel or Navy 
              captain.

            Subtitle F--Other Education and Training Matters

Sec. 551. College First delayed enlistment program.
Sec. 552. Standardization of authority to confer degrees on graduates 
              of Community College of the Air Force with authority for 
              other schools of Air University.
Sec. 553. Change in titles of heads of the Naval Postgraduate School.
Sec. 554. Increase from two years to three years in period for which 
              educational leave of absence may be authorized.
Sec. 555. Correction to disparate treatment of disabilities sustained 
              during accession training.
Sec. 556. Prayer at military service academy activities.
Sec. 557. Revision to conditions on service of officers as service 
              academy superintendents.
Sec. 558. Codification of prohibition on imposition of certain charges 
              and fees at the service academies.
Sec. 559. Qualifications of the dean of the faculty of United States 
              Air Force Academy.

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

Sec. 561. Separate military campaign medals to recognize service in 
              Operation Enduring Freedom and service in Operation Iraqi 
              Freedom.
Sec. 562. Eligibility of all uniformed services personnel for National 
              Defense Service Medal.
Sec. 563. Authority to appoint Brigadier General Charles E. Yeager, 
              United States Air Force (retired), to the grade of major 
              general on the retired list.
Sec. 564. Posthumous commission of William Mitchell in the grade of 
              major general in the Army.

                  Subtitle H--Military Justice Matters

Sec. 571. Review on how sexual offenses are covered by Uniform Code of 
              Military Justice.
Sec. 572. Service time not lost when confined in connection with trial 
              if confinement excused as unavoidable.
Sec. 573. Clarification of authority of military legal assistance 
              counsel to provide military legal assistance without 
              regard to licensing requirements.

           Subtitle I--Administrative and Management Matters

Sec. 581. Three-year extension of limitation on reductions of personnel 
              of agencies responsible for review and correction of 
              military records.
Sec. 582. Staffing and funding for Defense Prisoner of War/Missing 
              Personnel office (DPMO).
Sec. 583. Permanent ID cards for retiree dependents age 70 and older.
Sec. 584. Authority to provide civilian clothing to members traveling 
              in connection with medical evacuation.
Sec. 585. Authority to accept donation of frequent traveler miles, 
              credits, and tickets to facilitate rest and recuperation 
              travel of deployed members of the Armed Forces and their 
              families.
Sec. 586. Limitation on amendment or cancellation of Department of 
              Defense directive relating to reasonable access to 
              military installations for certain personal commercial 
              solicitation.
Sec. 587. Annual identification of reasons for discharges from the 
              Armed Forces during preceding fiscal year.
Sec. 588. Authority for Federal recognition of National Guard 
              commissioned officers appointed from former Coast Guard 
              personnel.
Sec. 589. Study of blended wing concept for the Air Force.
Sec. 590. Continuation of impact aid assistance on behalf of dependents 
              of certain members despite change in status of member.

                       Subtitle J--Other Matters

Sec. 591. Employment preferences for spouses of certain Department of 
              Defense civilian employees subject to relocation 
              agreements.
Sec. 592. Repeal of requirement to conduct electronic voting 
              demonstration project for the Federal election to be held 
              in November 2004.
Sec. 593. Examination of sexual assault in the Armed Forces by the 
              defense task force established to examine sexual 
              harassment and violence at the military service 
              academies.

[[Page H3283]]

Sec. 594. Renewal of pilot program for treating GED and home school 
              diploma recipients as high school graduates for 
              determinations of eligibility for enlistment.
Sec. 595. Assistance to local educational agencies that benefit 
              dependents of members of the Armed Forces and Department 
              of Defense civilian employees.
Sec. 596. Senior Reserve Officer Training Corps and recruiter access at 
              institutions of higher education.
Sec. 597. Reports on transformation milestones.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2005.
Sec. 602. Authority to provide family separation basic allowance for 
              housing.
Sec. 603. Geographic basis for basic allowance for housing during short 
              changes of station for professional military education or 
              training.
Sec. 604. Immediate lump-sum reimbursement for unusual nonrecurring 
              expenses incurred by members serving outside continental 
              United States.
Sec. 605. Income replacement payments for Reserves experiencing 
              extended and frequent mobilization for active duty 
              service.
Sec. 606. Authority for certain members deployed in combat zones to 
              receive limited advances on their future basic pay.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of bonus and special pay authorities.
Sec. 612. Reduction in required service commitment to receive accession 
              bonus for registered nurses.
Sec. 613. Increase in maximum monthly rate authorized for hardship duty 
              pay.
Sec. 614. Termination of assignment incentive pay for members placed on 
              terminal leave.
Sec. 615. Consolidation of reenlistment and enlistment bonus 
              authorities for regular and reserve components.
Sec. 616. Revision of authority to provide foreign language proficiency 
              pay.
Sec. 617. Eligibility of reserve component members for critical skills 
              retention bonus and expansion of authority to provide 
              bonus.
Sec. 618. Eligibility of new reserve component officers for accession 
              or affiliation bonus for officers in critical skills.
Sec. 619. Eligibility of reserve component members for incentive bonus 
              for conversion to military occupational specialty to ease 
              personnel shortage.
Sec. 620. Availability of hazardous duty incentive pay for military 
              firefighters.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Expansion of travel and transportation allowances to assist 
              survivors of a deceased member to attend burial ceremony 
              of the member.
Sec. 632. Transportation of family members incident to the serious 
              illness or injury of members of the uniformed services.
Sec. 633. Reimbursement of members for certain lodging costs incurred 
              in connection with student dependent travel.

             Subtitle D--Retired Pay and Survivor Benefits

Sec. 641. Computation of benefits under Survivor Benefit Plan for 
              surviving spouses over age 62.
Sec. 642. Open enrollment period for Survivor Benefit Plan commencing 
              October 1, 2005.
Sec. 643. Source of funds for Survivor Benefit Plan annuities for 
              Department of Defense beneficiaries over age 62.

    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

Sec. 651. Consolidation and reorganization of legislative provisions 
              regarding defense commissary system and exchanges and 
              other morale, welfare, and recreation activities.
Sec. 652. Consistent State treatment of Department of Defense 
              Nonappropriated Fund Health Benefits Program.
Sec. 653. Cooperation and assistance for qualified scouting 
              organizations serving dependents of members of the Armed 
              Forces and civilian employees overseas.

                       Subtitle F--Other Matters

Sec. 661. Repeal of requirement that members entitled to basic 
              allowance for subsistence pay subsistence charges while 
              hospitalized.
Sec. 662. Clarification of education loans qualifying for education 
              loan repayment program for reserve component health 
              professions officers.
Sec. 663. Survey and analysis of effect of extended and frequent 
              mobilization of Reservists for active duty service on 
              Reservist income.

                   TITLE VII--HEALTH CARE PROVISIONS

               Subtitle A--Enhanced Benefits for Reserves

Sec. 701. Demonstration project for TRICARE coverage for Ready Reserve 
              members.
Sec. 702. Comptroller General report on the cost and feasibility of 
              providing private health insurance stipends for members 
              of the Ready Reserves.
Sec. 703. Improvement of medical services for activated members of the 
              Ready Reserve and their families.
Sec. 704. Modification of waiver of certain deductibles under TRICARE 
              program.
Sec. 705. Authority for payment by United States of additional amounts 
              billed by health care providers to activated Reserve 
              members.
Sec. 706. Extension of transitional health care benefits after 
              separation from active duty.

                Subtitle B--Other Benefits Improvements

Sec. 711. Coverage of certain young children under TRICARE dental 
              program.
Sec. 712. Comptroller General report on provision of health and support 
              services for exceptional family member program enrollees.
Sec. 713. Exceptional eligibility for TRICARE prime remote.
Sec. 714. Transition to home health care benefit under sub-acute care 
              program.
Sec. 715. Requirement relating to prescription drug benefits for 
              medicare-eligible enrollees under defense health care 
              plans.
Sec. 716. Professional accreditation of military dentists.
Sec. 717. Addition of certain unremarried former spouses to persons 
              eligible for dental insurance plan of retirees of the 
              uniformed services.
Sec. 718. Waiver of collection of payments due from certain persons 
              unaware of loss of CHAMPUS eligibility.

           Subtitle C--Planning, Programming, and Management

Sec. 721. Pilot program for transformation of health care delivery.
Sec. 722. Study of provision of travel reimbursement to hospitals for 
              certain military disability retirees.

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

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

Sec. 801. Rapid acquisition authority to respond to combat emergencies.
Sec. 802. Defense acquisition workforce changes.
Sec. 803. Limitation on task and delivery order contracts.
Sec. 804. Funding for contract cancellation ceilings for certain 
              multiyear procurement contracts.
Sec. 805. Increased threshold for requiring contractors to provide 
              specified employee information to cooperative agreement 
              holders.
Sec. 806. Extension of authority for use of simplified acquisition 
              procedures.
Sec. 807. Authority to adjust acquisition-related dollar thresholds for 
              inflation.

      Subtitle B--United States Defense Industrial Base Provisions

Sec. 811. Defense trade reciprocity.
Sec. 812. Amendments to domestic source requirements.
Sec. 813. Three-year extension of restriction on acquisition of 
              polyacrylonitrile (PAN) carbon fiber from foreign 
              sources.
Sec. 814. Grant program for defense contractors to implement strategies 
              to avoid outsourcing of jobs.
Sec. 815. Preference for domestic freight forwarding services.

                 Subtitle C--Other Acquisition Matters

Sec. 821. Sustainment and modernization plans for existing systems 
              while replacement systems are under development.
Sec. 822. Review and demonstration project relating to contractor 
              employees. 
Sec. 823. Defense acquisition workforce limitation and reports.
Sec. 824. Provision of information to Congress to enhance transparency 
              in contracting.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Sec. 901. Change in title of Secretary of the Navy to Secretary of the 
              Navy and Marine Corps.
Sec. 902. Transfer of Center for the Study of Chinese Military Affairs 
              from National Defense University to United States-China 
              Economic and Security Review Commission.
Sec. 903. Transfer to Secretary of the Army of responsibility for 
              Assembled Chemical Weapons Alternatives Program.
Sec. 904. Modification of obligated service requirements under National 
              Security Education Program.
Sec. 905. Change of membership of certain councils.
Sec. 906. Actions to prevent the abuse of detainees.
Sec. 907. Responses to congressional inquiries.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Budget justification documents for operation and 
              maintenance.
Sec. 1003. Retention of fees from intellectual property licenses.

[[Page H3284]]

Sec. 1004. Authority to waive claims of the United States when amounts 
              recoverable are less than costs of collection.
Sec. 1005. Repeal of funding restrictions concerning development of 
              medical countermeasures against biological warfare 
              threats.
Sec. 1006. Report on budgeting for exchange rates for foreign currency 
              fluctuations.

                Subtitle B--Naval Vessels and Shipyards

Sec. 1011. Authority for award of contracts for ship dismantling on 
              net-cost basis.
Sec. 1012. Independent study to assess cost effectiveness of the Navy 
              ship construction program.
Sec. 1013. Authority to transfer specified former naval vessels to 
              certain foreign countries.
Sec. 1014. Limitation on leasing of foreign-built vessels.

                   Subtitle C--Sunken Military Craft

Sec. 1021. Preservation of title to sunken military craft and 
              associated contents.
Sec. 1022. Prohibitions.
Sec. 1023. Permits.
Sec. 1024. Penalties.
Sec. 1025. Liability for damages.
Sec. 1026. Relationship to other laws.
Sec. 1027. Encouragement of agreements with foreign countries.
Sec. 1028. Definitions.

                  Subtitle D--Counter-Drug Activities

Sec. 1031. Continuation of authority to use Department of Defense funds 
              for unified counterdrug and counterterrorism campaign in 
              Colombia.
Sec. 1032. Limitation on number of United States military personnel in 
              Colombia.

                          Subtitle E--Reports

Sec. 1041. Study of continued requirement for two-crew manning for 
              ballistic missile submarines.
Sec. 1042. Study of effect on defense industrial base of elimination of 
              United States domestic firearms manufacturing base.
Sec. 1043. Study of extent and quality of training provided to members 
              of the Armed Services to prepare for post-conflict 
              operations.

                      Subtitle F--Security Matters

Sec. 1051. Use of National Driver Register for personnel security 
              investigations and determinations.
Sec. 1052. Standards for disqualification from eligibility for 
              Department of Defense security clearance .

               Subtitle G--Transportation-Related Matters

Sec. 1061. Use of military aircraft to transport mail to and from 
              overseas locations.
Sec. 1062. Reorganization and clarification of certain provisions 
              relating to control and supervision of transportation 
              within the Department of Defense.
Sec. 1063. Determination of whether private air carriers are controlled 
              by United States citizens for purposes of eligibility for 
              Government contracts for transportation of passengers or 
              supplies.
Sec. 1064. Evaluation of whether to prohibit certain offers for 
              transportation of security-sensitive cargo.

                       Subtitle H--Other Matters

Sec. 1071. Two-year extension of authority of the Secretary of Defense 
              to engage in commercial activities as security for 
              intelligence collection activities abroad.
Sec. 1072. Assistance for study of feasibility of biennial 
              international air trade show in the United States and for 
              initial implementation.
Sec. 1073. Technical and clerical amendments.
Sec. 1074. Commission on the long-term implementation of the new 
              strategic posture of the United States.
Sec. 1075. Liability protection for certain Department of Defense 
              volunteers working in the maritime environment.
Sec. 1076. Transfer of historic F3A-1 Brewster Corsair aircraft.

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Sec. 1101. Payment of Federal employee health benefit premiums for 
              mobilized Federal employees.
Sec. 1102. Foreign language proficiency pay.
Sec. 1103. Pay parity for civilian intelligence personnel.
Sec. 1104. Pay parity for senior executives in nonappropriated fund 
              instrumentalities.
Sec. 1105. Prohibition of unauthorized wearing or use of civilian 
              medals or decorations.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

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

Sec. 1201. Documentation of conditions in Iraq under former dictatorial 
              government as part of transition to post-dictatorial 
              government.
Sec. 1202. Support of military operations to combat terrorism.
Sec. 1203. Commanders' Emergency Response Program.
Sec. 1204. Status of Iraqi security forces.
Sec. 1205. Guidance and report required on contractors supporting 
              deployed forces in Iraq.
Sec. 1206. Findings and sense of Congress concerning Army Specialist 
              Joseph Darby.

                       Subtitle B--Other Matters

Sec. 1211. Assignment of allied naval personnel to submarine safety 
              programs.
Sec. 1212. Expansion of entities of the People's Republic of China 
              subject to certain presidential authorities when 
              operating in the United States.
Sec. 1213. Report by President on Global Peace Operations Initiative.
Sec. 1214. Procurement sanctions against foreign persons that transfer 
              certain defense articles and services to the People's 
              Republic of China.

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

Sec. 1301. Specification of Cooperative Threat Reduction programs and 
              funds.
Sec. 1302. Funding allocations.
Sec. 1303. Temporary authority to waive limitation on funding for 
              chemical weapons destruction facility in Russia.

       TITLE XIV--EXPORT CONTROL AND COUNTERPROLIFERATION MATTERS

                      Subtitle A--Export Controls

Sec. 1401. Definitions under Arms Export Control Act.
Sec. 1402. Exemption from licensing requirements for export of 
              significant military equipment.
Sec. 1403. Cooperative projects with friendly foreign countries.
Sec. 1404. Licensing requirement for export of militarily critical 
              technologies.
Sec. 1405. Control of exports of United States weapons technology to 
              the People's Republic of China.
Sec. 1406. Strengthening international export controls.

                Subtitle B--Counterproliferation Matters

Sec. 1411. Defense international counterproliferation programs.
Sec. 1412. Defense counterproliferation fellowship program.

  Subtitle C--Initiatives Relating to Countries of Former Soviet Union

Sec. 1421. Silk Road initiative.
Sec. 1422. Teller-Kurchatov nonproliferation fellowships.
Sec. 1423. Collaboration to reduce the risks of a launch of Russian 
              nuclear weapons.

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

Sec. 1501. Purpose.

              Subtitle A--Authorization of Appropriations

Sec. 1511. Army procurement.
Sec. 1512. Navy and Marine Corps procurement.
Sec. 1513. Air Force procurement.
Sec. 1514. Defense-wide activities procurement.
Sec. 1515. Operation and maintenance.
Sec. 1516. Defense health program.
Sec. 1517. Military personnel.
Sec. 1518. Treatment as additional authorizations.
Sec. 1519. Transfer authority.
Sec. 1520. Designation of emergency authorizations.

                    Subtitle B--Personnel Provisions

Sec. 1531. Three-year increase in active Army strength levels.
Sec. 1532. Three-year increase in active Marine Corps strength levels.
Sec. 1533. Extension of increased rates for imminent danger pay and 
              family separation allowance.

                Subtitle C--Financial Management Matters

Sec. 1541. Revised funding methodology for military retiree health care 
              benefits.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

                            TITLE XXI--ARMY

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

                            TITLE XXII--NAVY

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

                         TITLE XXIII--AIR FORCE

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

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land 
              acquisition projects.

[[Page H3285]]

Sec. 2402. Improvements to military family housing units.
Sec. 2403. Energy conservation projects.
Sec. 2404. Authorization of appropriations, Defense Agencies.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

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

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

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

        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be 
              specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 2002 
              projects.
Sec. 2703. Extension and renewal of authorizations of certain fiscal 
              year 2001 projects.
Sec. 2704. Effective date.

                    TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Increase in certain thresholds for carrying out unspecified 
              minor military construction projects.
Sec. 2802. Assessment of vulnerability of military installations to 
              terrorist attack and annual report on military 
              construction requirements related to antiterrorism and 
              force protection.
Sec. 2803. Change in threshold for congressional notification regarding 
              use of operation and maintenance funds for facility 
              repair.
Sec. 2804. Reporting requirements regarding military family housing 
              requirements for general officers and flag officers.
Sec. 2805. Congressional notification of deviations from authorized 
              cost variations for military construction projects and 
              military family housing projects.
Sec. 2806. Repeal of limitation on use of alternative authority for 
              acquisition and improvement of military family housing.
Sec. 2807. Temporary authority to accelerate design efforts for 
              military construction projects carried out using design-
              build selection procedures.
Sec. 2808. Exchange or sale of reserve component facilities to acquire 
              replacement facilities.
Sec. 2809. One-year extension of temporary, limited authority to use 
              operation and maintenance funds for construction projects 
              outside the United States.

        Subtitle B--Real Property and Facilities Administration

Sec. 2811. Increase in certain thresholds for reporting real property 
              transactions.
Sec. 2812. Reorganization of existing administrative provisions 
              relating to real property transactions.
Sec. 2813. Treatment of money rentals from golf course at Rock Island 
              Arsenal, Illinois.
Sec. 2814. Number of contracts authorized department-wide under 
              demonstration program on reduction in long-term facility 
              maintenance costs.
Sec. 2815. Repeal of Commission on Review of Overseas Military Facility 
              Structure of the United States.
Sec. 2816. Designation of Airmen Leadership School at Luke Air Force 
              Base, Arizona, in honor of John J. Rhodes, a former 
              minority leader of the House of Representatives.
Sec. 2817. Elimination of reversionary interests clouding United States 
              title to property used as Navy homeports.
Sec. 2818. Report on real property disposal at Marine Corps Air 
              Station, El Toro, California.

                Subtitle C--Base Closure and Realignment

Sec. 2821. Two-year postponement of 2005 base closure and realignment 
              round and submission of reports regarding future 
              infrastructure requirements for the armed forces.
Sec. 2822. Establishment of specific deadline for submission of 
              revisions to force-structure plan and infrastructure 
              inventory for next base closure round.
Sec. 2823. Specification of final selection criteria for next base 
              closure round.
Sec. 2824. Requirement for unanimous vote of Defense Base Closure and 
              Realignment Commission to add to or otherwise expand 
              closure and realignment recommendations made by Secretary 
              of Defense.
Sec. 2825. Adherence to certain authorities on preservation of military 
              depot capabilities during any subsequent round of base 
              closures and realignments.

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

Sec. 2831. Transfer of administrative jurisdiction, Defense Supply 
              Center, Columbus, Ohio.
Sec. 2832. Land conveyance, Fort Hood, Texas.
Sec. 2833. Land conveyance, Army National Guard Facility, Seattle, 
              Washington.

                       Part II--Navy Conveyances

Sec. 2841. Transfer of jurisdiction, Nebraska Avenue Naval Complex, 
              District of Columbia.
Sec. 2842. Land conveyance, Navy property, former Fort Sheridan, 
              Illinois.
Sec. 2843. Land exchange, Naval Air Station, Patuxent River, Maryland.

                    Part III--Air Force Conveyances

Sec. 2851. Land exchange, Maxwell Air Force Base, Alabama.

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

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

         Subtitle A--National Security Programs Authorizations

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

   Subtitle B--Program Authorizations, Restrictions, and Limitations

Sec. 3111. Extension of authority for appointment of certain 
              scientific, engineering, and technical personnel.
Sec. 3112. Requirements for baseline of projects under Facilities and 
              Infrastructure Recapitalization Program.

                       Subtitle C--Other Matters

Sec. 3131. Transfers and reprogrammings of National Nuclear Security 
              Administration funds.
Sec. 3132. National Academy of Sciences study on management by 
              Department of Energy of high-level radioactive waste.
Sec. 3133. Contract to review Waste Isolation Pilot Plant, New Mexico.

          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. Relaxation of quantity restrictions on disposal of manganese 
              ferro in National Defense Stockpile.
Sec. 3303. Revision of earlier authority to dispose of certain 
              materials in National Defense Stockpile.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

                  TITLE XXXV--MARITIME ADMINISTRATION

Sec. 3501. Authorization of appropriations for Maritime Administration.
Sec. 3502. Extension of authority to provide war risk insurance for 
              merchant marine vessels.

     SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES.

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

     SEC. 101. ARMY.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2005 for procurement for the Army as follows:
       (1) For aircraft, $2,805,941,000.
       (2) For missiles, $1,414,321,000.
       (3) For weapons and tracked combat vehicles, 
     $1,739,695,000.
       (4) For ammunition, $1,729,402,000.
       (5) For other procurement, $4,313,640,000.

     SEC. 102. NAVY AND MARINE CORPS.

       (a) Navy.--Funds are hereby authorized to be appropriated 
     for fiscal year 2005 for procurement for the Navy as follows:
       (1) For aircraft, $8,912,667,000.
       (2) For weapons, including missiles and torpedoes, 
     $2,253,454,000.
       (3) For ammunition, $870,840,000.
       (4) For shipbuilding and conversion, $10,120,027,000.
       (5) For other procurement, $4,876,725,000.
       (b) Marine Corps.--Funds are hereby authorized to be 
     appropriated for fiscal year 2005 for procurement for the 
     Marine Corps in the amount of $1,315,103,000.

     SEC. 103. AIR FORCE.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2005 for procurement for the Air Force as follows:
       (1) For aircraft, $13,649,174,000.
       (2) For ammunition, $1,396,457,000.
       (3) For missiles, $4,638,313,000.
       (4) For other procurement, $13,229,257,000.

     SEC. 104. DEFENSE-WIDE ACTIVITIES.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2005 for Defense-wide procurement in the amount of 
     $2,950,702,000.

                      Subtitle B--Program Matters

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

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

     SEC. 112. DDG-51 MODERNIZATION PROGRAM.

       (a) Acceleration of Modernization Program.--The Secretary 
     of the Navy shall accelerate the program for in-service 
     modernization

[[Page H3286]]

     of the DDG-51 class of destroyers. As part of that 
     modernization program, the Secretary shall include additional 
     emphasis on determining a means to reduce crew size from 
     approximately 300 to about 200.
       (b) Report.--Not later than March 31, 2005, the Secretary 
     of the Navy shall submit to the congressional defense 
     committees a report on the steps taken as of that date to 
     carry out subsection (a).

     SEC. 113. REPEAL OF AUTHORITY FOR PILOT PROGRAM FOR FLEXIBLE 
                   FUNDING OF CRUISER CONVERSIONS AND OVERHAULS.

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

     SEC. 114. FORCE PROTECTION FOR ASYMMETRIC THREAT ENVIRONMENT.

       (a) Requirement for Asymmetric Threat Assessment.--(1) The 
     Secretary of Defense shall require the Secretary of each 
     military department to perform an assessment of the 
     survivability and suitability against asymmetrical threats of 
     each of the following military systems under the jurisdiction 
     of that Secretary:
       (A) Each manned ground system or war-fighter survivability 
     system that may be required to deploy in an asymmetrical 
     threat environment.
       (B) Each manned airborne system that may be required to 
     deploy in an asymmetrical threat environment.
       (2) For each system covered by paragraph (1), the Secretary 
     concerned shall establish the key performance parameters for 
     survivability and suitability against asymmetric threats.
       (3) The assessments under paragraph (1) shall be completed 
     not later than July 1, 2005.
       (4) The Secretary of each military department shall review 
     annually the assessments under paragraph (1) conducted by 
     that Secretary to ensure that the assessments remains 
     relevant to the asymmetric threat environment.
       (b) Requirement for Force Protection.--(1) The Secretary of 
     Defense shall require the Secretary of each military 
     department, for each system covered by subsection (a)(1) 
     under that Secretary's jurisdiction, either to--
       (A) take each of the force protection or survivability 
     steps specified in paragraph (2); or
       (B) restrict the system from deployment to an asymmetrical 
     threat environment.
       (2) The force protection or survivability steps for a 
     system covered by subsection (a)(1) are the following:
       (A) Development of force protection or survivability 
     enhancements for the system that meet the key performance 
     parameters established for that system under subsection 
     (a)(2).
       (B) Budgeting for in-service modification programs for the 
     system to provide force protection and survivability 
     enhancements developed under subparagraph (A).
       (C) Development of tactics, techniques, and procedures for 
     the system to maximize force protection and survivability.
       (c) Waiver.--The Secretary of Defense may waive the 
     applicability of subsection (b) to a system covered by 
     subsection (a)(1) if the Secretary determines that, but for 
     such a waiver, the Department would be unable to meet 
     national security objectives. Whenever the Secretary makes 
     such a determination and authorizes such a waiver, the 
     Secretary shall submit notice of such waiver and of the 
     Secretary's determination and the reasons therefor in writing 
     to the congressional defense committees.
       (d) Requirement for New Development Military Acquisition 
     Programs.--The Secretary of Defense shall require the 
     Secretary of each military department, for each military 
     acquisition program that has not entered low-rate initial 
     production as of the date of the enactment of this Act, to 
     include in the development of that program--
       (1) as part of the system requirements development, 
     assessments of war-fighter survivability and of system 
     suitability against asymmetrical threats; and
       (2) as part of the documentation of system requirements, 
     requirements for key performance parameters for force 
     protection and survivability.
       (e) Asymmetrical Threat Environment.--For purposes of this 
     section, the term ``asymmetrical threat environment'', with 
     respect to a manned system, means a security, stability, or 
     peacekeeping operation in which the system is deployed or any 
     other such environment in which an asymmetrical threat may 
     exist (or, in the case of a manned airborne system, another 
     such environment in which airborne operations would subject 
     the system to a ground-based asymmetrical threat).

     SEC. 115. ALLOCATION OF EQUIPMENT AUTHORIZED BY THIS TITLE TO 
                   BE MADE ON BASIS OF UNITS DEPLOYED OR PREPARING 
                   TO DEPLOY.

       The Secretary of Defense shall provide that, in the 
     allocation to operational units of equipment acquired using 
     funds authorized to be appropriated by this title, priority 
     shall be given to units that are deployed to, or preparing to 
     deploy to, Operation Iraqi Freedom or Operation Enduring 
     Freedom, regardless of the status of those units as active, 
     Guard, or reserve component units.

     SEC. 116. MULTIYEAR PROCUREMENT AUTHORITY FOR KC-767 TANKER 
                   AIRCRAFT ACQUISITION PROGRAM.

       (a) Multiyear Procurement Authority.--(1) The Secretary of 
     the Air Force 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 80 KC-767 tanker aircraft.
       (2) 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 eight 
     program years.
       (b) Limitation.--Subsection (b) of section 135 of the 
     National Defense Authorization Act for Fiscal Year 2004 
     (Public Law 108-136; 117 Stat. 1413; 10 U.S.C. 2401a note) is 
     repealed.
       (c) Relationship to Previous Law.--The multiyear 
     procurement authority in subsection (a) may not be executed 
     under section 135 of the National Defense Authorization Act 
     for Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1413; 10 
     U.S.C. 2401a note) or under section 8159 of the Department of 
     Defense Appropriations Act, 2002 (division A of Public Law 
     107-117).

     SEC. 117. OTHER MATTERS RELATING TO KC-767 TANKER AIRCRAFT 
                   ACQUISITION PROGRAM.

       (a) Sense of Congress.--It is the sense of Congress that--
       (1) aerial refueling capability for the Armed Forces is a 
     critical combat force multiplier;
       (2) the Nation must expeditiously proceed with a program to 
     replace the Air Force's aging fleet of aerial refueling 
     tankers;
       (3) in pursuing an aerial refueling tanker program, the 
     Department of Defense should take full advantage of the 
     United States commercial aircraft production base; and
       (4) anyone suspected of involvement in improper or illegal 
     activities associated with such a program should be 
     investigated and, if warranted, prosecuted to the fullest 
     extent of the law.
       (b) Requirement for Renegotiation of Contract.--The 
     Secretary of the Air Force shall enter into one or more 
     contracts for the Air Force multiyear tanker aircraft 
     program, provided that any such contract is negotiated after 
     June 1, 2004.
       (c) Review by Outside Panel.--(1) The Secretary of Defense 
     shall establish a panel of experts from outside the 
     Department of Defense to review any proposed contract for the 
     multiyear tanker aircraft program. The panel shall be 
     comprised of individuals who, by reason of education, 
     training, or experience, have expertise relevant to the 
     evaluation of a proposed contract for the lease or 
     procurement of aircraft under that program.
       (2) The panel shall review any proposed contract for the 
     multiyear tanker aircraft program to assess, and assist the 
     Secretary of the Air Force in determining, whether the Air 
     Force would under that contract obtain the best value for 
     funds expended. The panel shall serve in whatever manner the 
     Secretary of Defense determines is appropriate to provide an 
     independent review of any such proposed contract. The 
     Secretary shall provide for the panel to make a determination 
     of, and to advise the Secretary of the Air Force on, what 
     would constitute a fair and reasonable contract for that 
     program.
       (d) Report.--The Secretary of Defense shall provide for the 
     panel established under subsection (c) to submit a report 
     providing the results of its review to the Secretary of the 
     Air Force and the congressional defense committees.
       (e) Multiyear Tanker Aircraft Program Defined.--In this 
     section, the term ``multiyear tanker aircraft program'' means 
     the program for--
       (1) lease of no more than 20 aerial refueling aircraft for 
     the Air Force authorized under section 8159 of the Department 
     of Defense Appropriations Act, 2002 (division A of Public Law 
     107-117; 115 Stat. 2284), subject to section 135(a) of the 
     National Defense Authorization Act for Fiscal Year 2004 
     (Public Law 108-136; 117 Stat. 1413); and
       (2) procurement of no more than 80 KC-767 tanker aircraft 
     for which a multiyear procurement contract is authorized by 
     section 116(a) of this Act.
       (f) Interpretation.--Section 134 of the National Defense 
     Authorization Act for Fiscal Year 2004 (Public Law 108-136; 
     117 Stat. 1412) is amended by adding at the end the following 
     new subsection:
       ``(c) Interpretation.--Nothing in subsection (b) or section 
     1111 of the Emergency Supplemental Appropriations Act for 
     Defense and for the Reconstruction of Iraq and Afghanistan, 
     2004 (Public Law 108-106; 117 Stat. 1215) is intended to 
     prohibit the Secretary of the Air Force from executing the 
     program described in section 135(a) of this Act and section 
     116 of the National Defense Authorization Act for Fiscal Year 
     2005.''.

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

              Subtitle A--Authorization of Appropriations

     SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

        Funds are hereby authorized to be appropriated for fiscal 
     year 2005 for the use of the Department of Defense for 
     research, development, test, and evaluation as follows:
       (1) For the Army, $9,478,164,000.
       (2) For the Navy, $16,047,841,000.
       (3) For the Air Force, $21,527,967,000.
       (4) For Defense-wide activities, $21,074,389,000, of which 
     $305,135,000 is authorized for the Director of Operational 
     Test and Evaluation.

     SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY.

       (a) Fiscal Year 2005.--Of the amounts authorized to be 
     appropriated by section 201, $11,067,698,000 shall be 
     available for the Defense Science and Technology Program, 
     including basic research, applied research, and advanced 
     technology development projects.
       (b) Basic Research, Applied Research, and Advanced 
     Technology Development Defined.--For purposes of this 
     section, the term ``basic research, applied research, and 
     advanced technology development'' means work funded in 
     program elements for defense research and development under 
     Department of Defense category 6.1, 6.2, or 6.3.

[[Page H3287]]

    Subtitle B--Program Requirements, Restrictions, and Limitations

     SEC. 211. FUTURE COMBAT SYSTEMS PROGRAM STRATEGY.

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

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

       (a) Program Required.--The Secretary of Defense shall 
     establish a program for research and development in advanced 
     vacuum electronics to meet the requirements of the Department 
     of Defense electromagnetic systems.
       (b) Description of Program.--The program under subsection 
     (a) shall be carried out collaboratively by the Director of 
     Defense Research and Engineering, the Secretary of the Navy, 
     the Secretary of the Air Force, the Secretary of the Army, 
     and other appropriate elements of the Department of Defense. 
     The program shall include the following activities:
       (1) Activities needed for development and maturation of 
     advanced vacuum electronics technologies needed to meet the 
     requirements of the Department of Defense.
       (2) Identification of legacy and developmental 
     electromagnetic systems for use of advanced vacuum 
     electronics under the program.
       (c) Report.--Not later than January 31, 2005, the Director 
     of Defense Research and Engineering shall submit to the 
     congressional defense committees a report on the 
     implementation of the program under subsection (a). The 
     report shall include the following:
       (1) Identification of the officer to have lead 
     responsibility for carrying out the program.
       (2) A description of the management plan for the program 
     and any agreements relating to that plan.
       (3) A schedule for the program.
       (4) Identification of the funding required for fiscal year 
     2006 and for the future-years defense program to carry out 
     the program.
       (5) A list of program capability goals and objectives.
       (d) Funding.--Of the funds authorized to be appropriated in 
     section 201--
       (1) $13,500,000 shall be available in program element 
     62771N for applied research in vacuum electronics; and
       (2) $5,000,000 shall be available in program element 63771N 
     for advanced technology development in vacuum electronics.

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

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

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

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

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

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

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

     SEC. 215. AUTHORITY OF DIRECTOR OF DEFENSE RESEARCH AND 
                   ENGINEERING TO AWARD PRIZES FOR ADVANCED 
                   TECHNOLOGY ACHIEVEMENTS.

       Section 2374a(a) of title 10, United States Code, is 
     amended by striking ``acting through the Director of the 
     Defense Advanced Research Projects Agency'' and inserting 
     ``acting through the Director of Defense Research and 
     Engineering''.

     SEC. 216. SPACE BASED RADAR.

       (a) Limitation.--In carrying out the Space Based Radar 
     program, the Secretary of Defense may not authorize that 
     program to proceed into the system development and 
     procurement phase referred to as Milestone B until the 
     Secretary--
       (1) submits to the congressional defense committees, the 
     Permanent Select Committee on Intelligence of the House of 
     Representatives, and the Select Committee on Intelligence of 
     the Senate a report described in subsection (b); and
       (2) a period of 30 days has elapsed after the date on which 
     such report is submitted.
       (b) Report.--A report under this subsection is a report on 
     the Space Based Radar program in which the Secretary of 
     Defense sets forth the following with respect to that 
     program:
       (1) A description of the technical system concept selected.
       (2) A description of the concept of operations associated 
     with the technical system concept selected.
       (3) An independent cost estimate for development and 
     procurement under the program.
       (4) The acquisition strategy for the program.

     SEC. 217. MARK-54 TORPEDO PRODUCT IMPROVEMENT PROGRAM.

       Of the amount provided in section 201 for research, 
     development, test, and evaluation for the Navy, $2,000,000 
     within the budget line designated as line 120 shall be 
     available for the Mark-54 Torpedo Product Improvement 
     Program.

                 Subtitle C--Ballistic Missile Defense

     SEC. 221. FIELDING OF BALLISTIC MISSILE DEFENSE CAPABILITIES.

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

[[Page H3288]]

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

     SECTION 301. OPERATION AND MAINTENANCE FUNDING.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2005 for the use of the Armed Forces and other 
     activities and agencies of the Department of Defense for 
     expenses, not otherwise provided for, for operation and 
     maintenance, in amounts as follows:
       (1) For the Army, $25,838,611,000.
       (2) For the Navy, $29,523,490,000.
       (3) For the Marine Corps, $3,637,615,000.
       (4) For the Air Force, $27,143,566,000.
       (5) For Defense-wide activities, $17,317,406,000.
       (6) For the Army Reserve, $2,003,728,000.
       (7) For the Naval Reserve, $1,240,038,000.
       (8) For the Marine Corps Reserve, $188,696,000
       (9) For the Air Force Reserve, $2,226,790,000
       (10) For the Army National Guard, $4,425,686,000.
       (11) For the Air National Guard, $4,448,938,000.
       (12) For the United States Court of Appeals for the Armed 
     Forces, $10,825,000.
       (13) For Environmental Restoration, Army, $400,948,000.
       (14) For Environmental Restoration, Navy, $266,820,000.
       (15) For Environmental Restoration, Air Force, 
     $397,368,000.
       (16) For Environmental Restoration, Defense-wide, 
     $23,684,000
       (17) For Environmental Restoration, Formerly Used Defense 
     Sites, $216,516,000.
       (18) For Overseas Humanitarian, Disaster, and Civic Aid 
     programs, $59,000,000.
       (19) For Cooperative Threat Reduction programs, 
     $409,200,000.
       (20) For the Overseas Contingency Operations Transfer Fund, 
     $5,000,000.
       (21) For the Defense Industrial Base Capabilities Fund, 
     $50,000,000

     SEC. 302. WORKING CAPITAL FUNDS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2005 for the use of the Armed Forces and other 
     activities and agencies of the Department of Defense for 
     providing capital for working capital and revolving funds in 
     amounts as follows:
       (1) For the Defense Working Capital Funds, $372,886,000.
       (2) For the National Defense Sealift Fund, $1,219,252,000.
       (3) For the Defense Working Capital Fund, Defense 
     Commissary, $1,175,000,000

     SEC. 303. OTHER DEPARTMENT OF DEFENSE PROGRAMS.

       (a) Defense Health Program.--Funds are hereby authorized to 
     be appropriated for the Department of Defense for fiscal year 
     2005 for expenses, not otherwise provided for, for the 
     Defense Health Program, $17,811,586,000, of which--
       (1) $17,374,544,000 is for Operation and Maintenance;
       (2) $72,407,000 is for Research, Development, Test, and 
     Evaluation; and
       (3) $364,635,000 is for Procurement.
       (b) Chemical Agents and Munitions Destruction, Defense.--
     (1) Funds are hereby authorized to be appropriated for the 
     Department of Defense for fiscal year 2005 for expenses, not 
     otherwise provided for, for Chemical Agents and Munitions 
     Destruction, Defense, $1,371,990,000, of which--
       (A) $1,138,801,000 is for Operation and Maintenance;
       (B) $154,209,000 is for Research, Development, Test, and 
     Evaluation; and
       (C) $78,980,000 is for Procurement.
       (2) Amounts authorized to be appropriated under paragraph 
     (1) are authorized for--
       (A) the destruction of lethal chemical agents and munitions 
     in accordance with section 1412 of the Department of Defense 
     Authorization Act, 1986 (50 U.S.C. 1521); and
       (B) the destruction of chemical warfare materiel of the 
     United States that is not covered by section 1412 of such 
     Act.
       (c) Drug Interdiction and Counter-Drug Activities, Defense-
     wide.--Funds are hereby authorized to be appropriated for the 
     Department of Defense for fiscal year 2005 for expenses, not 
     otherwise provided for, for Drug Interdiction and Counter-
     Drug Activities, Defense-wide, $852,697,000.
       (d) Defense Inspector General.--Funds are hereby authorized 
     to be appropriated for the Department of Defense for fiscal 
     year 2005 for expenses, not otherwise provided for, for the 
     Office of the Inspector General of the Department of Defense, 
     $193,562,000, of which--
       (1) $191,362,000 is for Operation and Maintenance;
       (2) $2,100,000 is for Research, Development, Test, and 
     Evaluation; and
       (3) $100,000 is for Procurement.

     SEC. 304. REIMBURSEMENT OF MEMBERS OF THE ARMED FORCES WHO 
                   PURCHASED PROTECTIVE BODY ARMOR DURING SHORTAGE 
                   OF DEFENSE STOCKS OF BODY ARMOR.

       (a) Reimbursement Authorized.--The Secretary of Defense may 
     reimburse a member of the Armed Forces for the cost of 
     protective body armor purchased by the member, or by another 
     person on behalf of the member, for use by the member while 
     deployed in connection with Operation Noble Eagle, Operation 
     Enduring Freedom, or Operation Iraqi Freedom if the member 
     was not issued protective body armor before the member became 
     engaged in operations in areas or situations described in 
     section 310(a)(2) of title 37, United States Code.
       (b) Duration of Authority.--Reimbursement may be provided 
     under subsection (a) for protective body armor purchased 
     during the period beginning on September 11, 2001, and ending 
     on December 31, 2003. Not later than 60 days after the date 
     of the enactment of this Act, the Secretary shall implement 
     regulations to expedite the provision of such reimbursement.

                  Subtitle B--Environmental Provisions

     SEC. 311. REPORT REGARDING ENCROACHMENT ISSUES AFFECTING UTAH 
                   TEST AND TRAINING RANGE, UTAH.

       (a) Report Required.--The Secretary of the Air Force shall 
     prepare a report that outlines current and anticipated 
     encroachments on the use and utility of the special use 
     airspace of the Utah Test and Training Range in the State of 
     Utah, including encroachments brought about through actions 
     of other Federal agencies. The Secretary shall include such 
     recommendations as the Secretary considers appropriate 
     regarding any legislative initiatives necessary to address 
     encroachment problems identified by the Secretary in the 
     report.
       (b) Submission of Report.--Not later than one year after 
     the date of the enactment of this Act, the Secretary shall 
     submit the report to the Committee on Armed Services of the 
     House of Representatives and the Committee on Armed Services 
     of the Senate.

                 Subtitle C--Workplace and Depot Issues

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

       Subsection (d) of section 2466 of title 10, United States 
     Code, is amended to read as follows:
       ``(d) Annual Report and Review.--(1) Not later than April 1 
     of each year, the Secretary of Defense shall submit to 
     Congress a report identifying, for each of the armed forces 
     (other than the Coast Guard) and each Defense Agency, the 
     percentage of the funds referred to in subsection (a) that 
     was expended during the preceding fiscal year, and are 
     projected to be expended in the current fiscal year and next 
     fiscal year, for performance of depot-level maintenance and 
     repair workloads by the public and private sectors.
       ``(2) Not later than 60 days after the date on which the 
     Secretary submits a report under paragraph (1), the 
     Comptroller General shall submit to Congress the Comptroller 
     General's views on whether--
       ``(A) the Department of Defense has complied with the 
     requirements of subsection (a) during the preceding fiscal 
     year covered by the report; and
       ``(B) the expenditure projections for the current fiscal 
     year and next fiscal year are reasonable.''.

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

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

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

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

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

     SEC. 323. PUBLIC-PRIVATE COMPETITION FOR WORK PERFORMED BY 
                   CIVILIAN EMPLOYEES OF DEPARTMENT OF DEFENSE.

       (a) In General.--Section 2461(b) of title 10, United States 
     Code, is amended by adding at the end the following new 
     paragraph:
       ``(5)(A) A function of the Department of Defense performed 
     by 10 or more civilian employees may not be converted, in 
     whole or in part, to performance by a contractor unless, the 
     conversion is based on the results of a public-private 
     competition process that--
       ``(i) formally compares the cost of civilian employee 
     performance of the function with the costs of performance by 
     a contractor;
       ``(ii) creates an agency tender, including a most efficient 
     organization plan, in accordance with Office of Management 
     and Budget Circular A-76, as implemented on May 29, 2003;
       ``(iii) determines whether the submitted offers meet the 
     needs of the Department of Defense with respect to factors 
     other than cost, including quality and reliability;
       ``(iv) requires continued performance of the function by 
     civilian employees if the cost of performance of the function 
     by a contractor would, over all performance periods required 
     by the solicitation, cost less than--
       ``(I) 10 percent of the personnel-related costs for 
     performance of that activity or function in the agency 
     tender; or
       ``(II) $10,000,000; and
       ``(v) provides no advantage to an offeror for a proposal to 
     reduce costs for the Department of Defense by--
       ``(I) not making an employer-sponsored health insurance 
     plan available to the workers who are to be employed in the 
     performance of such function under a contract; or
       ``(II) offering to such workers an employer-sponsored 
     health benefits plan that requires the employer to contribute 
     less towards the premium or subscription share than that 
     which is paid by the Department of Defense for health 
     benefits for civilian employees under chapter 89 of title 5.
       ``(B) Any modification, reorganization, division, or other 
     change in the organization of a function of the Department of 
     Defense so that is performed by less than 10 civilian 
     employees of the Department of Defense and, therefore, 
     excluded from subparagraph (A), is prohibited.
       ``(C) Any function that is performed by civilian employees 
     of the Department of Defense and is proposed to be 
     reengineered, reorganized, modernized, upgraded, expanded, or 
     changed in order to become more efficient, but the civilian

[[Page H3289]]

     employees would still provide essentially the same service, 
     is subject to the competition requirement in subparagraph 
     (A).
       ``(D) The cost savings requirement specified in 
     subparagraph (A) does not apply to any contracts for special 
     studies and analyses, construction services, architectural 
     services, medical services, scientific and technical services 
     related to (but not in support of) research and development, 
     and depot-level maintenance and repair services.
       ``(E) The Secretary of Defense may waive the competition 
     requirement in specific instances if--
       ``(i) the written waiver is prepared by the Secretary of 
     Defense, or the relevant Assistant Secretary or agency head;
       ``(ii) the written waiver is accompanied by a detailed 
     determination that national security interests are so 
     compelling as to preclude compliance with the requirement for 
     a public-private competition; and
       ``(iii) a copy of the waiver is published in the Federal 
     Register within 10 working days after the date on which the 
     waiver is invoked, although use of the waiver need not be 
     delayed until its publication.''.
       (b) Relation to Pilot Program.--Paragraph (5) of section 
     2461(b) of title 10, United States Code, as added by 
     subsection (a) shall not apply with respect to the pilot 
     program for best-value source selection for performance of 
     information technology services authorized by section 336 of 
     the National Defense Authorization Act for Fiscal Year 2004 
     (Public Law 108-136; 117 Stat. 1444; 10 U.S.C. 2461 note).

     SEC. 324. PUBLIC-PRIVATE COMPETITION PILOT PROGRAM.

       (a) Purpose.--The Secretary of Defense shall establish a 
     pilot program to examine the use of the public-private 
     competition process of Office of Management and Budget 
     Circular A-76 on new requirements, as defined by such 
     Circular, and functions currently being performed by 
     contractors that could be performed by civilian employees.
       (b) Duration.--The Secretary of Defense shall carry out the 
     pilot program during fiscal years 2005 and 2006.
       (c) Requirement for Public-Private Competition for New 
     Work.--(1) By the end of the pilot project, the Secretary of 
     Defense shall have allowed civilian employees to compete 
     through the standard competition process of Office of 
     Management and Budget Circular A-76 for new requirements, as 
     defined by such Circular, that are approximately one-tenth in 
     value of the funds spent by the Department of Defense during 
     the two fiscal years of the pilot project on all functions 
     that are considered new requirements, as defined by such 
     Circular.
       (2) The Department of Defense shall not receive credit 
     towards compliance with the pilot program for subjecting to 
     public-private competition--
       (A) any contract to be awarded to small business concerns 
     that meet the requirements under section 3(a) of the Small 
     Business Act (15 U.S.C. 632(a)) and regulations under that 
     section;
       (B) any contract to be performed by contractor employees 
     who are represented by a private sector labor union; or
       (C) any contract related to special studies and analyses, 
     construction services, architectural services, medical 
     services, scientific and technical services related to (but 
     not in support of) research and development, and depot-level 
     maintenance and repair services.
       (d) Functions Performed by Contractors.--(1) By the end of 
     the pilot project, the Secretary of Defense shall have 
     subjected a number of contractor employees to public-private 
     competition through the standard competition process of 
     Office of Management and Budget Circular A-76 that is 
     approximately one-tenth of the number of civilian employees 
     subject to public-private competition during the two fiscal 
     years of the pilot project.
       (2) The Department of Defense shall, to the extent 
     possible, subject to public-private competition those 
     positions held by contractor employees that are associated 
     with functions that are or have been performed at least in 
     part by Federal employees at any time on or after October 1, 
     1980; and
       (3) Subsection (c)(2) shall also apply to this subsection.
       (e) Waiver.--The implementation of the pilot project may be 
     waived if--
       (1) the written waiver is prepared by the Secretary of 
     Defense;
       (2) the written waiver is accompanied by a detailed 
     determination that national security interests are so 
     compelling as to preclude compliance with the competition 
     requirement; and
       (3) a copy of the waiver is published in the Federal 
     Register within 10 working days after the date on which the 
     waiver is invoked, although use of the waiver need not be 
     delayed until its publication.
       (f) Report.--At the end of each fiscal year of the pilot 
     program, the Inspector General of the Department of Defense 
     shall submit to Congress a report on the results of the pilot 
     program, including the extent to which the Department of 
     Defense complied with the requirements of this section.

     SEC. 325. SENSE OF CONGRESS ON EQUITABLE LEGAL STANDING FOR 
                   CIVILIAN EMPLOYEES.

       It is the sense of Congress that, in order to ensure that, 
     when public-private competitions are held, they are conducted 
     as fairly, effectively, and efficiently as possible, 
     competing parties, both Department of Defense civilian 
     employees (or their representatives) and contractors (or 
     their representatives) should receive comparable treatment 
     throughout the competition regarding access to relevant 
     information and legal standing to challenge the way a 
     competition has been conducted at all appropriate forums, 
     including the General Accounting Office and the United States 
     Court of Federal Claims.

     SEC. 326. COMPETITIVE SOURCING REPORTING REQUIREMENT.

       (a) Report Required.--Not later than February 1, 2005, the 
     Inspector General of the Department of Defense shall submit 
     to Congress a report addressing whether the Department of 
     Defense--
       (1) employs a sufficient number of adequately trained 
     civilian employees to conduct satisfactorily, taking into 
     account equity, efficiency and expeditiousness, all of the 
     public-private competitions that are scheduled to be 
     undertaken by the Department of Defense during the next 
     fiscal year (including a sufficient number of employees to 
     formulate satisfactorily the performance work statements and 
     most efficient organization plans for the purposes of such 
     competitions) and to administer any resulting contracts; and
       (2) has implemented a comprehensive and reliable system to 
     track and assess the cost and quality of the performance of 
     functions of the Department of Defense by service 
     contractors, to update the records of such costs and the 
     assessments each fiscal quarter, and to make such information 
     available in reports to Congress and the public, including 
     through the use of electronic means, except that proprietary 
     information and information to which section 552(b)(1) of 
     title 5, United States Code, applies shall be excised from 
     information published or reports made available.
       (b) Elements of Tracking System.--The system of the 
     Department of Defense for tracking cost and quality of 
     performance of a function under a service contract shall 
     include at least the following data elements:
       (1) The contract number and the applicable Federal supply 
     class or service code.
       (2) The name, business address, and business telephone of 
     the agency official who supervises the service contract.
       (3) The statutory, regulatory, or other authority for 
     entering into the service contract and, if a public-private 
     competition was not used in the determination of whether to 
     provide for performance of the activity or function by a 
     contractor, an explanation of the reasons for not doing so.
       (4) The cost to the Department of Defense of conducting the 
     public-private competition under Office of Management and 
     Budget Circular A-76, if one was undertaken, including the 
     cost of consultants as well as civilian employees.
       (5) In the case of a function formerly performed by 
     civilian employees, the actual cost of the performance by 
     such employees.
       (6) The cost to the Department of Defense of civilian 
     employee performance of the function under the most efficient 
     organization plan.
       (7) The anticipated cost of contractor performance, based 
     on the award.
       (8) The cost to the Department of Defense for performance 
     of the function by the contractor.
       (9) A description of the quality control process used by 
     the agency in connection with monitoring the contract 
     performance (including the applicable quality control 
     standards and the frequency of the quality control reports), 
     together with an assessment of whether the contractor 
     achieved, exceeded, or failed to achieve the quality control 
     standards.
       (c) Assessment of Tracking System.--The Inspector General 
     of the Department of Defense shall include in the report 
     required by subsection (a) an assessment of the 
     comprehensiveness and reliability of the Department of 
     Defense system for tracking cost and quality of performance 
     of a function under a service contract, including compliance 
     with each of the requirements specified in subsection (b). 
     The Inspector General shall base the assessment on an audit 
     of a representative sample of service contracts. The report 
     shall also include recommendations by the Inspector General 
     regarding how weaknesses identified in the Department of 
     Defense infrastructure for competitive sourcing can be 
     rectified, whether through the use of different processes or 
     the availability of additional employees, additional 
     training, or additional resources.

                   Subtitle D--Information Technology

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

       (a) Transition Plan.--The Secretary of Defense shall 
     prepare a plan to provide for the transition of Department of 
     Defense information technology systems to Internet Protocol 
     version 6 from the present use of Internet Protocol version 4 
     and other network protocols. The plan shall outline the 
     networking and security system equipment that will need to be 
     replaced, including the timing and costs of such replacement, 
     address how the current and new networks and security systems 
     will be managed, and assess the potential impact of the 
     transition, include any proposed measures to alleviate any 
     adverse affects. In preparing the transition plan, the 
     Secretary shall compare private industry plans for the 
     transition to Internet Protocol version 6.
       (b) Testing and Evaluation for Internet Protocol.--To 
     determine whether a change to the use of Internet Protocol 
     version 6 will support Department of Defense requirements, 
     the Secretary of Defense shall provide for a rigorous, real-
     world end-to-end testing of Internet Protocol version 6, as 
     proposed for use by the Department, to evaluate the 
     following:
       (1) The ability of Internet Protocol version 6, with its 
     ``best effort'' quality of service, to satisfactory support 
     the Department's multiple applications and other information 
     technology systems, including the use of Internet Protocol 
     version 6 over bandwidth-constrained tactical circuits.
       (2) The ability of the Department's networks using Internet 
     Protocol version 6 to respond to, and perform under, heavy 
     loading of the core networks.
       (c) Submission of Plan and Results.--Not later than March 
     31, 2005, the Secretary of Defense shall submit to the 
     congressional defense

[[Page H3290]]

     committees a report containing the transition plan prepared 
     under subsection (a) and the results of the tests conducted 
     under subsection (b).

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

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

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

       ``(a) Conditions for Obligation of Funds for Defense 
     Business System Modernization.--Effective January 1, 2005, 
     funds appropriated to the Department of Defense may not be 
     obligated for a defense business system modernization that 
     will have a total cost in excess of $1,000,000 unless--
       ``(1) the approval authority designated for the defense 
     business system certifies to the Defense Business Systems 
     Management Committee established by section 186 of this title 
     that the defense business system modernization--
       ``(A) is in compliance with the enterprise architecture 
     developed under subsection (b), or such compliance is waived 
     in writing by the approval authority as a result of the 
     investment review process conducted under subsection (d) for 
     the defense business system modernization; and
       ``(B) will be acquired or developed in a manner consistent 
     with the system acquisition regulations and instructions of 
     the Department of Defense; and
       ``(2) the Defense Business Systems Management Committee 
     approves the certification by the approval authority.
       ``(b) Enterprise Architecture for Defense Business 
     Systems.--Not later than September 30, 2005, the Secretary of 
     Defense, acting through the Defense Business Systems 
     Management Committee, shall develop--
       ``(1) an enterprise architecture to cover all defense 
     business systems, and the functions and activities supported 
     by defense business systems, which shall be sufficiently 
     defined to effectively guide, constrain, and permit 
     implementation of interoperable defense business system 
     solutions and consistent with the policies and procedures 
     established by the Director of the Office of Management and 
     Budget, and
       ``(2) a transition plan for implementing the enterprise 
     architecture for defense business systems.
       ``(c) Approval Authorities and Accountability for Defense 
     Business Systems.--The Secretary of Defense shall delegate 
     responsibility for the planning, design, acquisition, 
     deployment, operation, maintenance, modernization, and 
     oversight of defense business systems as follows:
       ``(1) The Under Secretary of Defense for Acquisition, 
     Technology and Logistics shall be responsible and accountable 
     for any defense business system the primary purpose of which 
     is to support acquisition activities, logistics activities, 
     or installations and environment activities of the Department 
     of Defense.
       ``(2) The Under Secretary of Defense (Comptroller) shall be 
     responsible and accountable for any defense business system 
     the primary purpose of which is to support financial 
     management activities or strategic planning and budgeting 
     activities of the Department of Defense.
       ``(3) The Under Secretary of Defense for Personnel and 
     Readiness shall be responsible and accountable for any 
     defense business system the primary purpose of which is to 
     support human resource management activities of the 
     Department of Defense.
       ``(4) The Assistant Secretary of Defense for Networks and 
     Information Integration and the Chief Information Officer of 
     the Department of Defense shall be responsible and 
     accountable for any defense business system the primary 
     purpose of which is to support information technology 
     infrastructure or information assurance activities of the 
     Department of Defense.
       ``(5) The Deputy Secretary of Defense or an Under Secretary 
     of Defense, as designated by the Secretary of Defense, shall 
     be responsible for any defense business system the primary 
     purpose of which is to support any activity of the Department 
     of Defense not covered by paragraphs (1) through (4).
       ``(d) Defense Business System Investment Review.--(1) The 
     Secretary of Defense shall require each approval authority 
     designated under subsection (c) to establish, not later than 
     March 15, 2005, an investment review process, consistent with 
     section 11312 of title 40, to review the planning, design, 
     acquisition, development, deployment, operation, maintenance, 
     modernization, and project cost benefits and risks of all 
     defense business systems for which the approval authority is 
     responsible. The investment review process so established 
     shall specifically address the responsibilities of approval 
     authorities under subsection (a).
       ``(2) The review of defense business systems under the 
     investment review process shall include the following:
       ``(A) Review and approval by an investment review board of 
     each defense business system as an investment before the 
     obligation of funds on the system.
       ``(B) Periodic review, but not less than annually, of every 
     defense business system investment.
       ``(C) Representation on each investment review board by 
     appropriate officials from among the armed forces, combatant 
     commands, the Joint Chiefs of Staff, and Defense Agencies.
       ``(D) Use of threshold criteria to ensure an appropriate 
     level of review within the Department of Defense of, and 
     accountability for, defense business system investments 
     depending on scope, complexity, and cost.
       ``(e) Budget Information.--In the materials that the 
     Secretary submits to Congress in support of the budget 
     submitted by the President to Congress under section 1105 of 
     title 31 for fiscal year 2006 and fiscal years thereafter, 
     the Secretary of Defense shall--
       ``(1) identify the approval authority for each defense 
     business system; and
       ``(2) for each defense business system for which funding is 
     proposed in the budget--
       ``(A) certify that the defense business system complies 
     with the defense business enterprise architecture; or
       ``(B) explain why funds for such system are necessary to 
     maintain a mission critical or mission essential system of 
     the Department of Defense, notwithstanding its noncompliance 
     with the defense business enterprise architecture.
       ``(f) Congressional Reports.--Not later than March 15 of 
     each year from 2005 through 2009, the Secretary of Defense 
     shall submit to the congressional defense committees a report 
     on Department of Defense compliance with the requirements of 
     this section. The first report shall define plans and 
     commitments for meeting the requirements of subsection (a), 
     including specific milestones and performance measures. 
     Subsequent reports shall--
       ``(1) describe actions taken and planned for meeting the 
     requirements of subsection (a), including--
       ``(A) specific milestones and actual performance against 
     specified performance measures, and any revision of such 
     milestones and performance measures; and
       ``(B) specific actions on the defense business system 
     modernizations submitted for certification under such 
     subsection;
       ``(2) identify the number of defense business system 
     modernizations so certified;
       ``(3) identify any defense business system modernization 
     with an obligation in excess of $1,000,000 during the 
     preceding fiscal year that was not certified under subsection 
     (a), and the reasons for the waiver; and
       ``(4) discuss specific improvements in business operations 
     and cost savings resulting from successful defense business 
     systems modernization efforts.
       ``(g) Definitions.--In this section:
       ``(1) The term `approval authority', with respect to a 
     defense business system, means the Department of Defense 
     official responsible for the defense business system, as 
     designated by subsection (c).
       ``(2) The term `defense business system' means an 
     information system, other than a national security system, 
     operated by, for, or on behalf of the Department of Defense, 
     including financial systems, mixed systems, financial data 
     feeder systems, and information technology and information 
     assurance infrastructure, used to support business 
     activities, such as acquisition, financial management, 
     logistics, strategic planning and budgeting, installations 
     and environment, and human resource management.
       ``(3) The term `defense business system modernization' 
     means--
       ``(A) the acquisition or development of a new defense 
     business system; or
       ``(B) any significant modification or enhancement of an 
     existing defense business system (other than necessary to 
     maintain current services).
       ``(4) The term `enterprise architecture' has the meaning 
     given that term in section 3601(4) of title 44.
       ``(5) The terms `information system' and `information 
     technology' have the meanings given those terms in section 
     11101 of title 40.
       ``(6) The term `national security system' has the meaning 
     given that term in section 2315 of this title.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting before the item relating to section 
     2223 the following new item:

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

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

     ``Sec. 186. Defense business system management Committee

       ``(a) Establishment.--The Secretary of Defense shall 
     establish a Defense Business Systems Management Committee, to 
     be composed of the following persons:
       ``(1) The Deputy Secretary of Defense, who shall serve as 
     the chairman of the Committee.
       ``(2) The Under Secretary of Defense for Acquisition, 
     Logistics, and Technology.
       ``(3) The Under Secretary of Defense for Personnel and 
     Readiness.
       ``(4) The Under Secretary of Defense (Comptroller).
       ``(5) The Assistant Secretary of Defense for Networks and 
     Information Integration.
       ``(6) The Secretaries of the military departments and the 
     heads of the Defense Agencies.
       ``(7) Such additional personnel of the Department of 
     Defense (including personnel assigned to the Joint Chiefs of 
     Staff and combatant commands) as are designated by the 
     Secretary of Defense.
       ``(b) Duties.--(1) In addition to any other matters 
     assigned to the Committee by the Secretary of Defense, the 
     Committee shall--
       ``(A) recommend to the Secretary of Defense policies and 
     procedures necessary to effectively integrate the 
     requirements of section 2222 of this title into all business 
     activities and any transformation, reform, reorganization, or 
     process improvement initiatives undertaken within the 
     Department of Defense; and
       ``(B) review and approve any major update of the defense 
     business enterprise architecture developed under subsection 
     (b) of section 2222 of this title, including evolving the 
     architecture, and of defense business systems modernization 
     plans.

[[Page H3291]]

       ``(2) The Committee shall be responsible for coordinating 
     defense business system modernization initiatives to maximize 
     benefits and minimize costs for the Department of Defense and 
     periodically report to the Secretary on the status of defense 
     business system modernization efforts.
       ``(3) The Committee shall ensure that funds are obligated 
     for defense business system modernization in a manner 
     consistent with section 2222 of this title.
       ``(c) Definitions.--In this section, the terms `defense 
     business system' and `defense business system modernization' 
     have the meanings given such terms in section 2222 of this 
     title.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

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

       (c) Delegation of Administrative Responsibility.--The 
     delegation of responsibility for the planning, design, 
     acquisition, deployment, operation, maintenance, 
     modernization, and oversight of defense business systems 
     required by subsection (c) of section 2222 of title 10, 
     United States Code, as added by subsection (a)(1), shall be 
     completed not later than 60 days after the date of the 
     enactment of this Act.
       (d) Relation to Annual Registration Requirements.--Nothing 
     in sections 186 and 2222 of title 10, United States Code, as 
     added by this section, shall be construed to alter the 
     requirements of section 8084 of the Department of Defense 
     Appropriations Act, 2004 (Public Law 108-87; 117 Stat. 1091), 
     with regard to information technology systems (as defined in 
     subsection (d) of such section).
       (e) Repeal of Obsolete Financial Management Enterprise 
     Architecture Requirements.--Section 1004 of the Bob Stump 
     National Defense Authorization Act for Fiscal Year 2003 
     (Public Law 107-314; 10 U.S.C. 113 note) is repealed.

     SEC. 333. ESTABLISHMENT OF JOINT PROGRAM OFFICE TO IMPROVE 
                   INTEROPERABILITY OF BATTLEFIELD MANAGEMENT 
                   COMMAND AND CONTROL SYSTEMS.

       (a) Office for Family of Interoperable Pictures.--The 
     Secretary of Defense shall designate a single joint program 
     office in the Department of Defense for the management of 
     battlefield management command and control systems of the 
     Armed Forces, known as the ``Family of Interoperable 
     Pictures'', to improve the interoperability of such systems 
     so that members of the Armed Forces may access a common 
     operational picture of the battlefield. The office shall 
     include at a minimum the Single Integrated Air Picture, the 
     Single Integrated Ground Picture, the Single Integrated 
     Maritime Picture, the Special Operations Forces Picture, and 
     the Single Integrated Space Picture. The Secretary shall 
     provide for the head of the office to be selected on a 
     rotating basis among related offices of the Army, Navy, Air 
     Force, and Marine Corps.
       (b) Common Systems Architecture.--The Secretary of Defense 
     shall develop, implement, and maintain a common systems 
     architecture for all battlefield management command and 
     control systems included in the Family of Interoperable 
     Pictures.
       (c) Consolidated Program Elements.--All funds for 
     development and procurement related to the Family of 
     Interoperable Pictures shall be consolidated under the office 
     designated under subsection (a).
       (d) Program Development.--The head of the office designated 
     under subsection (a), subject to the authority, direction, 
     and control of the Secretary of Defense, shall--
       (1) establish and control the performance specifications 
     for the battlefield management command and control systems 
     included in the Family of Interoperable Pictures;
       (2) establish and control the standards for development of 
     the software and equipment for the Family of Interoperable 
     Pictures;
       (3) establish and control the standards for operation of 
     the Family of Interoperable Pictures; and
       (4) develop a single, unified concept of operations for all 
     users of the Family of Interoperable Pictures.

              Subtitle E--Readiness Reporting Requirements

     SEC. 341. ANNUAL REPORT ON DEPARTMENT OF DEFENSE OPERATION 
                   AND FINANCIAL SUPPORT FOR MILITARY MUSEUMS.

       (a) Report Required.--Chapter 23 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 489. Annual report on Department of Defense operation 
       and financial support for military museums

       ``(a) Report Required.--As part of the budget materials 
     submitted to Congress in connection with the submission of 
     the budget for a fiscal year pursuant to section 1105 of 
     title 31, but in no case later than March 15 of each year, 
     the Secretary of Defense shall submit a report identifying 
     all museums that, during the preceding fiscal year--
       ``(1) were operated by the Department of Defense or a 
     military department; or
       ``(2) were otherwise supported using funds appropriated to 
     the Department of Defense.
       ``(b) Content of Report.--For each museum identified in a 
     report under this section, the Secretary of Defense shall 
     include in the report the following:
       ``(1) The purpose and functions of the museum and the 
     justification for the museum
       ``(2) A description of the facilities dedicated to the 
     museum.
       ``(3) An itemized listing of the funds appropriated to the 
     Department of Defense that were obligated to support the 
     museum during the fiscal year covered by the report, as well 
     as any other Federal funds, funds from a nonappropriated fund 
     instrumentality account of the Department of Defense, and 
     non-Federal funds obligated to support the museum.
       ``(4) The number of civilian employees of the Department of 
     Defense who serve full-time or part-time at the museum.
       ``(5) The number of members of the armed forces who serve 
     full-time or part-time at the museum.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``489. Annual report on Department of Defense operation and financial 
              support for military museums.''.

     SEC. 342. REPORT ON DEPARTMENT OF DEFENSE PROGRAMS FOR 
                   PREPOSITIONING OF MATERIAL AND EQUIPMENT.

       (a) Secretary of Defense Assessment and Report.--(1) The 
     Secretary of Defense shall conduct an assessment of the 
     programs of the Department of Defense for the prepositioning 
     of material and equipment. Such assessment shall particularly 
     focus on how those programs will be incorporated into 
     achievement of the goals of the Secretary of Defense 
     (referred to as the ``10-30-30'' goals) for the Armed Forces 
     to have the capability, from the onset of a contingency 
     situation, of deploying forces to a distant theater within 10 
     days, defeating an enemy within 30 days, and being ready for 
     an additional conflict within another 30 days.
       (2) The Secretary shall submit to Congress a report on such 
     assessment not later than October 1, 2005.
       (b) Matters To Be Included.--The assessment under 
     subsection (a) shall include the prepositioning programs of 
     each of the Armed Forces and of the United States Special 
     Operations Command as well as assessment of each of the 
     following:
       (1) Use of prepositioned equipment as part of Operation 
     Iraqi Freedom and Operation Enduring Freedom and potential 
     solutions to identified challenges.
       (2) Changes to doctrine, strategy, and transportation plans 
     to support the goals of the Secretary described in subsection 
     (a) and referred to as the 10-30-30 goals in light of the 
     current lift constraints facing both land and sea components 
     of lift as well as the emerging mobility requirements.
       (3) Modifications of the prepositioning programs of the 
     Armed Forces in order to adapt to pending modularity 
     concepts, future force structure changes, and new sea basing 
     concepts in relation to current and potential areas of 
     instability.
       (4) Joint operations and training that include theater 
     opening requirements at potential aerial and sea ports of 
     debarkation, joint force reception capabilities, joint 
     theater distribution operations, and use of joint 
     prepositioned stocks and systems.

                       Subtitle F--Other Matters

     SEC. 351. EXTENSION OF ARSENAL SUPPORT PROGRAM INITIATIVE.

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

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

       Amounts appropriated to the Department of Defense for 
     fiscal year 2005 for operation and maintenance may not be 
     obligated for the purpose of preparing or implementing the 
     Mid-Range Financial Improvement Plan until the Secretary of 
     Defense submits a report to the congressional defense 
     committees containing, for each of the military departments 
     and the Defense Agencies--
       (1) an explanation of the manner in which funds will be 
     used for such purpose during that fiscal year; and
       (2) an estimate of the costs for future fiscal years to 
     prepare and implement the plan.

     SEC. 353. PROCUREMENT OF FOLLOW-ON CONTRACTS FOR THE 
                   OPERATION OF FIVE CHAMPION-CLASS T-5 TANK 
                   VESSELS.

       The Secretary of the Navy may consider bids or proposals 
     for the follow-on contracts for the Department of the Navy 
     contracts for the operation of five Champion-class T-5 tank 
     vessels only from an entity that is a citizen under section 2 
     of the Shipping Act, 1916 (46 App. U.S.C. 802).

     SEC. 354. SENSE OF CONGRESS ON AMERICA'S NATIONAL WORLD WAR I 
                   MUSEUM.

       (a) Findings.--The Congress finds as follows:
       (1) The Liberty Memorial Museum in Kansas City, Missouri, 
     was built in 1926 in honor of those individuals who served in 
     World War I in defense of liberty and the Nation.
       (2) The Liberty Memorial Association, a nonprofit 
     organization which originally built the Liberty Memorial 
     Museum, is responsible for the finances, operations, and 
     collections management of the Liberty Memorial Museum.
       (3) The Liberty Memorial Museum is the only public museum 
     in the Nation that exists for the exclusive purpose of 
     interpreting the experiences of the United States and its 
     allies in the World War I years (1914-1918), both on the 
     battlefield and on the home front.
       (4) The Liberty Memorial Museum project began after the 
     1918 Armistice through the efforts of a large-scale, grass-
     roots civic and fundraising effort by the citizens and 
     veterans of the

[[Page H3292]]

     Kansas City metropolitan area. After the conclusion of a 
     national architectural design competition, ground was broken 
     in 1921, construction began in 1923, and the Liberty Memorial 
     Museum was opened to the public in 1926.
       (5) In 1994, the Liberty Memorial Museum closed for a 
     massive restoration and expansion project. The restored 
     museum reopened to the public on Memorial Day, 2002, during a 
     gala rededication ceremony.
       (6) Exhibits prepared for the original museum buildings 
     presaged the dramatic, underground expansion of core 
     exhibition gallery space, with over 30,000 square feet of new 
     interpretive and educational exhibits currently in 
     development. The new exhibits, along with an expanded 
     research library and archives, will more fully utilize the 
     many thousands of historical objects, books, maps, posters, 
     photographs, diaries, letters, and reminiscences of World War 
     I participants that are preserved for posterity in the 
     Liberty Memorial Museum's collections. The new core 
     exhibition is scheduled to open on Veterans Day, 2006.
       (7) The City of Kansas City, the State of Missouri, and 
     thousands of private donors and philanthropic foundations 
     have contributed millions of dollars to build and later to 
     restore this national treasure. The Liberty Memorial Museum 
     continues to receive the strong support of residents from the 
     States of Missouri and Kansas and across the Nation.
       (8) Since the restoration and rededication of 2002, the 
     Liberty Memorial Museum has attracted thousands of visitors 
     from across the United States and many foreign countries.
       (9) There remains a need to preserve in a museum setting 
     evidence of the honor, courage, patriotism, and sacrifice of 
     those Americans who offered their services and who gave their 
     lives in defense of liberty during World War I, evidence of 
     the roles of women and African Americans during World War I, 
     and evidence of other relevant subjects.
       (10) The Liberty Memorial Museum seeks to educate a diverse 
     group of audiences through its comprehensive collection of 
     historical materials, emphasizing eyewitness accounts of the 
     participants on the battlefield and the home front and the 
     impact of World War I on individuals, then and now. The 
     Liberty Memorial Museum continues to actively acquire and 
     preserve such materials.
       (11) A great opportunity exists to use the invaluable 
     resources of the Liberty Memorial Museum to teach the 
     ``Lessons of Liberty'' to the Nation's schoolchildren through 
     on-site visits, classroom curriculum development, distance 
     learning, and other educational initiatives.
       (12) The Liberty Memorial Museum should always be the 
     Nation's museum of the national experience in the World War I 
     years (1914-1918), where people go to learn about this 
     critical period and where the Nation's history of this 
     monumental struggle will be preserved so that generations of 
     the 21st century may understand the role played by the United 
     States in the preservation and advancement of democracy, 
     freedom, and liberty in the early 20th century.
       (13) This initiative to recognize and preserve the history 
     of the Nation's sacrifices in World War I will take on added 
     significance as the Nation approaches the centennial 
     observance of this event.
       (14) It is fitting and proper to refer to the Liberty 
     Memorial Museum as ``America's National World War I Museum''.
       (b) Sense of Congress.--The Congress--
       (1) recognizes the Liberty Memorial Museum in Kansas City, 
     Missouri, including the museum's future and expanded 
     exhibits, collections, library, archives, and educational 
     programs, as ``America's National World War I Museum'';
       (2) recognizes that the continuing collection, 
     preservation, and interpretation of the historical objects 
     and other historical materials held by the Liberty Memorial 
     Museum enhance the knowledge and understanding of the 
     Nation's people of the American and allied experience during 
     the World War I years (1914-1918), both on the battlefield 
     and on the home front;
       (3) commends the ongoing development and visibility of 
     ``Lessons of Liberty'' educational outreach programs for 
     teachers and students throughout the Nation; and
       (4) encourages the need for present generations to 
     understand the magnitude of World War I, how it shaped the 
     Nation, other countries, and later world events, and how the 
     sacrifices made then helped preserve liberty, democracy, and 
     other founding principles for generations to come.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

     SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

       The Armed Forces are authorized strengths for active duty 
     personnel as of September 30, 2005, as follows:
       (1) The Army, 482,400.
       (2) The Navy, 365,900.
       (3) The Marine Corps, 175,000.
       (4) The Air Force, 359,700.

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

       Effective October 1, 2004, section 691(b) of title 10, 
     United States Code, is amended as follows:
       (1) Navy.--Paragraph (2) is amended by striking ``373,800'' 
     and inserting ``365,900''.
       (2) Air force.--Paragraph (4) is amended by striking 
     ``359,300'' and inserting ``359,700''.

     SEC. 403. MAXIMUM NUMBER OF RESERVE PERSONNEL AUTHORIZED TO 
                   BE ON ACTIVE DUTY FOR OPERATIONAL SUPPORT.

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

     SEC. 404. ACCOUNTING AND MANAGEMENT OF RESERVE COMPONENT 
                   PERSONNEL PERFORMING ACTIVE DUTY OR FULL-TIME 
                   NATIONAL GUARD DUTY FOR OPERATIONAL SUPPORT.

       (a) Strength Authorizations.--Section 115 of title 10, 
     United States Code, is amended--
       (1) in subsection (a)(1)(A), by inserting ``unless on 
     active duty pursuant to subsection (b)'' after ``active-duty 
     personnel'';
       (2) in subsection (a)(1)(B), by inserting ``unless on 
     active duty or full-time National Guard duty pursuant to 
     subsection (b)'' after ``reserve personnel'';
       (3) by redesignating subsections (b), (c), (d), (e), (f), 
     (g) and (h) as subsections (c), (d), (e), (f), (g), (h) and 
     (i), respectively; and
       (4) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) Certain Reserves on Active Duty To Be Authorized by 
     Law.--(1) Congress shall annually authorize the maximum 
     number of members of a reserve component permitted to be on 
     active duty or full-time National Guard duty at any given 
     time who are called or ordered to--
       ``(A) active duty under section 12301(d) of this title for 
     the purpose of providing operational support, as prescribed 
     in regulation issued by the Secretary of Defense;
       ``(B) full-time National Guard duty under section 502(f)(2) 
     of title 32 for the purpose of providing operational support 
     when authorized by the Secretary of Defense;
       ``(C) active duty under section 12301(d) of this title or 
     full-time National Guard duty under section 502(f) of title 
     32 for the purpose of preparing for and performing funeral 
     honors functions for funerals of veterans under section 1491 
     of this title;
       ``(D) active duty or retained on active duty under sections 
     12301(g) of this title while in a captive status; or
       ``(E) active duty or retained on active duty under 12301(h) 
     or 12322 of this title for the purpose of medical evaluation 
     or treatment.
       ``(2) A member of a reserve component who exceeds either of 
     the following limits shall be included in the strength 
     authorized under subparagraph (A) or subparagraph (B), as 
     appropriate, of subsection (a)(1):
       ``(A) A call or order to active duty or full-time National 
     Guard duty that specifies a period greater than three years.
       ``(B) The cumulative periods of active duty and full-time 
     National Guard duty performed by the member exceed 1095 days 
     in the previous 1460 days.
       ``(3) In determining the period of active service under 
     paragraph (2), the following periods of active service 
     performed by a member shall not be included:
       ``(A) All periods of active duty performed by a member who 
     has not previously served in the Selected Reserve of the 
     Ready Reserve.
       ``(B) All periods of active duty or full-time National 
     Guard duty for which the member is exempt from strength 
     accounting under paragraphs (1) through (7) of subsection 
     (i).''.
       (b) Limitation on Appropriations.--Subsection (c) of such 
     section (as redesignated by subsection (a)(3)) is amended--
       (1) by striking ``or'' at the end of paragraph (1);
       (2) by striking the period at the end of paragraph (2) and 
     inserting ``; or''; and
       (3) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) the use of reserve component personnel to perform 
     active duty or full-time National Guard duty under subsection 
     (b) unless the strength for such personnel for that reserve 
     component for that fiscal year has been authorized by law.''.
       (c) Authority for Secretary of Defense Variances in Maximum 
     Strengths.--Subsection (f) of such section (as redesignated 
     by subsection (a)(2)) is amended--
       (1) by striking ``End'' in the heading;
       (2) by striking ``and'' at the end of paragraph (2);
       (3) by striking the period at the end of paragraph (3) and 
     inserting ``; and''; and
       (4) by adding at the end the following new paragraph:
       ``(4) increase the maximum strength authorized pursuant to 
     subsection (b)(1) for a fiscal year for certain reserves on 
     active duty for any of the reserve components by a number 
     equal to not more than 10 percent of that strength.''.
       (d) Conforming Amendments to Section 115.-- Such section is 
     further amended as follows:
       (1) Subsection (e) (as redesignated by subsection (a)(3)) 
     is amended--
       (A) in paragraph (1), by striking ``subsection (a) or (c)'' 
     and inserting ``subsection (a) or (d)''; and
       (B) in paragraph (2)--
       (i) by striking ``subsections (a) and (c)''; and inserting 
     ``subsections (a) and (d)'';
       (ii) by striking ``pursuant to subsection (e)) and 
     subsection (c)'' and inserting ``pursuant to subsection (f)) 
     and subsection (d)'' each place it appears.
       (2) Subsection (g) (as redesignated by subsection (a)(3)) 
     is amended by striking ``subsection (e)(1)'' in paragraph (2) 
     and inserting ``subsection (f)(1)''.
       (3) Subsection (i) (as redesignated by subsection (a)(3)) 
     is amended to read as follows:
       ``(i) Certain Personnel Excluded From Counting for Active-
     Duty End Strengths.--In counting personnel for the purpose of 
     the end strengths authorized pursuant to subsection

[[Page H3293]]

     (a)(1), persons in the following categories shall be 
     excluded:
       ``(1) Members of a reserve component ordered to active duty 
     under section 12301(a) of this title.
       ``(2) Members of a reserve component in an active status 
     ordered to active duty under section 12301(b) of this title.
       ``(3) Members of the Ready Reserve ordered to active duty 
     under section 12302 of this title.
       ``(4) Members of the Selected Reserve of the Ready Reserve 
     or members of the Individual Ready Reserve mobilization 
     category described in section 10144(b) of this title ordered 
     to active duty under section 12304 of this title.
       ``(5) Members of the National Guard called into Federal 
     service under section 12406 of this title.
       ``(6) Members of the militia called into Federal service 
     under chapter 15 of this title.
       ``(7) Members of reserve components on active duty for 
     training.
       ``(8) Members of the Selected Reserve of the Ready Reserve 
     on active duty to support programs described in section 
     1203(b) of the Cooperative Threat Reduction Act of 1993 (22 
     U.S.C. 5952(b)).
       ``(9) Members of the National Guard on active duty or full-
     time National Guard duty for the purpose of carrying out drug 
     interdiction and counter-drug activities under section 112 of 
     title 32.
       ``(10) Members of a reserve component on active duty under 
     section 10(b)(2) of the Military Selective Service Act (50 
     U.S.C. App. 460(b)(2)) for the administration of the 
     Selective Service System.
       ``(11) Members of the National Guard on full-time National 
     Guard duty for the purpose of providing command, 
     administrative, training, or support services for the 
     National Guard Challenge Program authorized by section 509 of 
     title 32.''.
       (e) Military to Military Contact Strength Accounting.--
     Subsection (f) of section 168 of such title is amended to 
     read as follows:
       ``(f) Active Duty End Strengths.--A member of a reserve 
     component who is engaged in activities authorized under this 
     section shall not be counted for purposes of the following 
     personnel strength limitations:
       ``(1) The end strength for active-duty personnel authorized 
     pursuant to section 115(a)(1) of this title for the fiscal 
     year in which the member carries out the activities referred 
     to under this section.
       ``(2) The authorized daily average for members in pay 
     grades E-8 and E-9 under section 517 of this title for the 
     calendar year in which the member carries out such 
     activities.
       (3) The authorized strengths for commissioned officers 
     under section 523 of this title for the fiscal year in which 
     the member carries out such activities.
       (f) E-8 and E-9 Strength Accounting.--Subsection (a) of 
     section 517 of such title is amended by striking ``(other 
     than for training) in connection with organizing, 
     administering, recruiting, instructing, or training the 
     reserve component of an armed force.'' and inserting ``as 
     authorized under section 115(a)(1)(B) or 115(b) of this 
     title, or excluded from counting for active duty end 
     strengths under section 115(i) of this title.''.
       (g) Field Grade Officer Strength Accounting.--(1) Paragraph 
     (1) of section 523(b) of such title is amended to read as 
     follows:
       ``(A) on active duty as authorized under section 
     115(a)(1)(B) or 115(b)(1) of this title, or excluded from 
     counting for active duty end strengths under section 115(i) 
     of this title;
       ``(B) on active duty under section 10211, 10302 through 
     10305, or 12402 of this title or under section 708 of title 
     32; or
       ``(C) on full-time National Guard duty.''; and
       (2) Paragraph (7) of section 523(b) is amended by striking 
     ``Reserve or retired officers'' and inserting ``Retired 
     officers''.
       (h) Active Guard and Reserve Field Grade Officer Strength 
     Accounting.--Paragraph (2) of section 12011(e) of such title 
     is amended to read as follows:
       ``(2) Full-time National Guard duty (other than for 
     training) under section 502(f) of title 32, except for duty 
     under section 115(b)(1)(B) and (C) of this title and section 
     115(i)(9) of this title.''.
       (i) Warrant Officer Active-Duty List Exclusion.--Paragraph 
     (1) of section 582 of such title is amended to read as 
     follows:
       ``(1) Reserve warrant officers--
       ``(A) on active duty as authorized under section 
     115(a)(1)(B) or 115(b)(1) of this title, or excluded from 
     counting for active duty end strengths under section 115(i) 
     of this title; or
       ``(B) on full-time National Guard duty.''.
       (j) Officer Active-Duty List, Applicability of Chapter.--
     Paragraph (1) of section 641 of such is amended to read as 
     follows:
       ``(1) Reserve officers--
       ``(A) on active duty authorized under section 115(a)(1)(B) 
     or 115(b)(1) of this title, or excluded from counting for 
     active duty end strengths under section 115(i) of this title;
       ``(B) on active duty under section 3038, 5143, 5144, 8038, 
     10211, 10301 through 10305, 10502, 10505, 10506(a), 10506(b), 
     10507, or 12402 of this title or section 708 of title 32; or
       ``(C) on full-time National Guard duty.''.
       (k) Strength Accounting for Members Performing Drug 
     Interdiction and Counter-Drug Activities.--Section 112 of 
     title 32, United States Code, is amended--
       (1) by striking subsection (e);
       (2) by redesignating subsections (f), (g), (h) and (i) as 
     subsections (e), (f), (g) and (h) respectively; and
       (3) in paragraph (1) of subsection (e), as redesignated by 
     paragraph (2), by striking ``for a period of more than 180 
     days'' each place it appears.
       (l) Report.--Not later than June 1, 2005, the Secretary of 
     Defense shall report to the Committee on Armed Services of 
     the Senate and the Committee on Armed Services of the House 
     of Representatives the Secretary's recommendations regarding 
     the exemptions provided in paragraphs (8) through (11) by 
     section 115(i) of title 10, United States Code, as amended by 
     this section. The recommendations shall address the manner in 
     personnel covered by those exemptions shall be accounted for 
     in authorizations provided by section 115 of such title. The 
     objective of the analysis should be to terminate the need for 
     such exemptions after September 30, 2006.
       (m) Regulations.--The Secretary of Defense shall prescribe 
     by regulation the meaning of the term ``operational support'' 
     for purposes of paragraph (1) of subsection (b) of section 
     115 of title 10, United States Code, as added by subsection 
     (a).

                       Subtitle B--Reserve Forces

     SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

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

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

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

       Within the end strengths prescribed in section 411(a), the 
     reserve components of the Armed Forces are authorized, as of 
     September 30, 2005, the following number of Reserves to be 
     serving on full-time active duty or full-time duty, in the 
     case of members of the National Guard, for the purpose of 
     organizing, administering, recruiting, instructing, or 
     training the reserve components:
       (1) The Army National Guard of the United States, 26,476.
       (2) The Army Reserve, 14,970.
       (3) The Naval Reserve, 14,152.
       (4) The Marine Corps Reserve, 2,261.
       (5) The Air National Guard of the United States, 12,225.
       (6) The Air Force Reserve, 1,900.

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

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

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

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

              Subtitle C--Authorizations of Appropriations

     SEC. 421. MILITARY PERSONNEL.

       There is hereby authorized to be appropriated to the 
     Department of Defense for military personnel for fiscal year 
     2005 a total of $104,647,558,000. The authorization in the 
     preceding sentence supersedes any other authorization of 
     appropriations (definite or indefinite) for such purpose for 
     fiscal year 2005.

     SEC. 422. ARMED FORCES RETIREMENT HOME.

       There is hereby authorized to be appropriated for fiscal 
     year 2005 from the Armed Forces Retirement Home Trust Fund 
     the sum of

[[Page H3294]]

     $61,195,000 for the operation of the Armed Forces Retirement 
     Home.

                   TITLE V--MILITARY PERSONNEL POLICY

              Subtitle A--General and Flag Officer Matters

     SEC. 501. LENGTH OF SERVICE FOR SERVICE CHIEFS.

       (a) Chief of Staff of the Army.--Paragraph (1) of section 
     3033(a) of title 10, United States Code, is amended--
       (1) by striking ``for a period of four years'' in the first 
     sentence; and
       (2) by striking the second and third sentences and 
     inserting the following: ``The Chief of Staff serves at the 
     pleasure of the President for a term of four years. The 
     President may extend the service of an officer as Chief of 
     Staff for an additional period of not to exceed two years. In 
     time of war or during a national emergency declared by 
     Congress, the President may extend the service of an officer 
     as Chief of Staff for such additional periods as the 
     President determines necessary, except that the total period 
     of an officer's service as Chief of Staff may not exceed 
     eight years.''.
       (b) Chief of Naval Operations.--Paragraph (1) of section 
     5033(a) of such title is amended by striking the third and 
     fourth sentences and inserting the following: ``The Chief of 
     Naval Operations serves at the pleasure of the President. The 
     President may extend the service of an officer as Chief of 
     Naval Operations for an additional period of not to exceed 
     two years. In time of war or during a national emergency 
     declared by Congress, the President may extend the service of 
     an officer as Chief of Naval Operations for such additional 
     periods as the President determines necessary, except that 
     the total period of an officer's service as Chief of Naval 
     Operations may not exceed eight years.''.
       (c) Commandant of the Marine Corps.--Paragraph (1) of 
     section 5043(a) of such title is amended by striking the 
     third and fourth sentences and inserting the following: ``The 
     Commandant serves at the pleasure of the President. The 
     President may extend the service of an officer as Commandant 
     for an additional period of not to exceed two years. In time 
     of war or during a national emergency declared by Congress, 
     the President may extend the service of an officer as 
     Commandant for such additional periods as the President 
     determines necessary, except that the total period of an 
     officer's service as Commandant may not exceed eight 
     years.''.
       (d) Chief of Staff of the Air Force.--Paragraph (1) of 
     section 8033(a) of such title is amended to read as follows:
       (1) by striking ``for a period of four years'' in the first 
     sentence; and
       (2) by striking the second and third sentences and 
     inserting the following: ``The Chief of Staff serves at the 
     pleasure of the President for a period of four years. The 
     President may extend the service of an officer as Chief of 
     Staff for an additional period of not to exceed two years. In 
     time of war or during a national emergency declared by 
     Congress, the President may extend the service of an officer 
     as Chief of Staff for such additional periods as the 
     President determines necessary, except that the total period 
     of an officer's service as Chief of Staff may not exceed 
     eight years.''.

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

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

     SEC. 503. INCREASE IN AGE LIMIT FOR DEFERRAL OF MANDATORY 
                   RETIREMENT FOR UP TO 10 SENIOR GENERAL AND FLAG 
                   OFFICERS.

       Section 1251(b) of title 10, United States Code, is amended 
     by striking ``64 years of age'' and inserting ``66 years of 
     age''.

     SEC. 504. INCREASED FLEXIBILITY FOR VOLUNTARY RETIREMENT FOR 
                   MILITARY OFFICERS.

       (a) In General.--Section 1370 of title 10, United States 
     Code, is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)--
       (i) by striking ``except as provided in paragraph (2)'' and 
     inserting ``subject to paragraphs (2) and (3)''; and
       (ii) by striking ``, for not less than six months'';
       (B) by redesignating paragraph (3) as paragraph (4); and
       (C) by striking paragraph (2) and inserting the following:
       ``(2) In order to be eligible for voluntary retirement 
     under this title in a grade below the grade of lieutenant 
     colonel or commander, a commissioned officer of the Army, 
     Navy, Air Force, or Marine Corps covered by paragraph (1) 
     must have served on active duty in that grade for not less 
     than six months.
       ``(3)(A) In order to be eligible for voluntary retirement 
     in a grade above major or lieutenant commander and below 
     brigadier general or rear admiral (lower half), a 
     commissioned officer of the Army, Navy, Air Force, or Marine 
     Corps covered by paragraph (1) must have served on active 
     duty in that grade for not less than three years, except that 
     the Secretary of Defense may authorize the Secretary of the 
     military department concerned to reduce such period to a 
     period not less than two years.
       ``(B) In order to be eligible for voluntary retirement in a 
     grade above colonel or captain, in the case of the Navy, a 
     commissioned officer of the Army, Navy, Air Force, or Marine 
     Corps covered by paragraph (1) must have served on active 
     duty in that grade for not less than one year.
       ``(C) An officer in a grade above major general or rear 
     admiral may be retired in the highest grade in which the 
     officer served on active duty satisfactorily for not less 
     than one year, upon approval by the Secretary of the military 
     department concerned and concurrence by the Secretary of 
     Defense. The function of the Secretary of Defense under the 
     preceding sentence may only be delegated to a civilian 
     official in the Office of the Secretary of Defense appointed 
     by the President, by and with the advice and consent of the 
     Senate.
       ``(D) The President may waive subparagraph (A), (B) or (C) 
     in individual cases involving extreme hardship or exceptional 
     or unusual circumstances. The authority of the President 
     under the preceding sentence may not be delegated.'';
       (2) in subsection (b), by inserting ``or whose service on 
     active duty in that grade was not determined to be 
     satisfactory by the Secretary of the military department 
     concerned'' after ``specified in subsection (a)'';
       (3) by striking subsection (c); and
       (4) by redesignating subsection (d) as subsection (c) and 
     in that subsection--
       (A) in paragraph (3)--
       (i) in subparagraph (A)--

       (I) by inserting ``(i)'' after ``(3)(A)'';
       (II) by inserting ``and below brigadier general or rear 
     admiral (lower half)'' after ``lieutenant commander'';
       (III) by inserting ``, except that the Secretary of Defense 
     may authorize the Secretary of the military department 
     concerned to reduce such period to a period not less than two 
     years'' after ``three years''; and
       (IV) by adding at the end the following new clauses:

       ``(ii) In order to be credited with satisfactory service in 
     a grade above colonel or captain, in the case of the Navy, a 
     person covered by paragraph (1) must have served 
     satisfactorily in that grade (as determined by the Secretary 
     of the military department concerned) as a reserve 
     commissioned officer in active status, or in a retired status 
     on active duty, for not less than one year.
       ``(iii) An officer covered by paragraph (1) who is in a 
     grade above the grade of major general or rear admiral may be 
     retired in the highest grade in which the officer served 
     satisfactorily for not less than one year, upon approval by 
     the Secretary of the military department concerned and 
     concurrence by the Secretary of Defense. The function of the 
     Secretary of Defense under the preceding sentence may only be 
     delegated to a civilian official in the Office of the 
     Secretary of Defense appointed by the president, by and with 
     the advice and consent of the Senate.'';
       (ii) in subparagraphs (D) and (E), by striking subparagraph 
     (A)'' and inserting ``subparagraph (A)(i)''; and
       (iii) by striking subparagraph (F); and
       (B) by striking paragraphs (5) and (6); and
       (5) by striking subsection (e).
       (b) Conforming Amendments.--Section 1406(i)(2) of such 
     title is amended--
       (1) in the paragraph heading, by striking ``members'' and 
     all that follows through ``satisfactorily'' and inserting 
     ``enlisted members reduced in grade'';
       (2) by striking ``a member'' and inserting ``an enlisted 
     member'';
       (3) by striking ``1998--'' and all that follows through 
     ``is reduced in'' and inserting ``1998, is reduced in'';
       (4) by striking ``; or'' and inserting a period; and
       (5) by striking subparagraph (B).
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to the determination of the retired 
     grade of members of the Armed Forces retiring on or after the 
     date of the enactment of this Act.

     SEC. 505. REPEAL OF REQUIREMENT THAT NO MORE THAN 50 PERCENT 
                   OF ACTIVE DUTY GENERAL AND FLAG OFFICERS BE IN 
                   GRADES ABOVE BRIGADIER GENERAL AND REAR ADMIRAL 
                   (LOWER HALF).

       (a) Repeal of Distribution Requirement.--Subsection (a) of 
     section 525 of title 10, United States Code, is repealed.
       (b) Reorganization of Section.--Such section is further 
     amended--
       (1) by striking ``(b)(1) No appointment'' and inserting 
     ``(a) Limitation on Number of General and Flag Officers in 
     Senior Grades.--(1) No appointment''; and
       (2) by striking ``(3) An officer'' and inserting ``(b) 
     Special Rules and Exceptions.--(1) An officer''; and
       (3) by redesignating paragraphs (4), (5), (6), (7), and (8) 
     as paragraphs (2), (3), (4), (5), and (6), respectively.
       (c) Conforming Amendments.--(1) Subsection (b) of such 
     section (as designated by subsection (a)(2)) is amended as 
     follows:
       (A) Paragraph (1) (as redesignated by subsection (a)(2)), 
     paragraph (2)(A) (as redesignated by subsection (a)(3)), and 
     paragraph (6) (as redesignated by subsection (a)(3)) are 
     amended by striking ``paragraph (1) or (2)'' and inserting 
     ``subsection (a)''.
       (B) Paragraph (3)(A) (as so redesignated) is amended by 
     striking ``under the first sentence of paragraph (1) or (2), 
     as applicable'' and inserting ``under subsection (a)''.
       (C) Paragraph (4) (as so redesignated) and the first and 
     third sentences of paragraph (5) (as so redesignated) are 
     amended by striking ``paragraph (1)'' and inserting 
     ``subsection (a)(1)''.
       (D) The second sentence of paragraph (5) (as so 
     redesignated) is amended by striking ``paragraph (1) or (2)'' 
     and inserting ``subsection (a)(2)''.
       (2) Subsection (c) of such section is amended--
       (A) by striking ``(c)(1)'' and inserting `(c) `Reallocation 
     Authority.--(1)'';
       (B) in paragraph (1)(A), by striking ``subsection (b)(1)'' 
     and inserting ``subsection (a)(1)'';
       (C) in paragraph (1)(B), by striking ``subsection (b)(2)'' 
     and inserting ``subsection (a)(2)''; and

[[Page H3295]]

       (D) in paragraph (3)(A), by striking ``subsection (b)'' and 
     inserting ``subsections (a) and (b)''.
       (3) Subsection (d) of such section is amended by inserting 
     ``Special Rule for Officers Formerly on Joint Chiefs of 
     Staff.--'' after ``(d)''.
       (d) Clerical Amendments.--(1) The heading of such section 
     is amended to read as follows:

     ``Sec. 525. Distribution in grade: general and flag officers 
       on active duty''.

       (2) The item relating to such section in the table of 
     sections at the beginning of chapter 32 of such title is 
     amended to read as follows:

``525. Distribution in grade: general and flag officers on active 
              duty.''.

     SEC. 506. REVISION TO TERMS FOR ASSISTANTS TO THE CHAIRMAN OF 
                   THE JOINT CHIEFS OF STAFF FOR NATIONAL GUARD 
                   AND RESERVE MATTERS.

       (a) Codification and Revision.--Chapter 5 of title 10, 
     United States Code, is amended by adding at the end a new 
     section 156 consisting of--
       (1) the following section heading:

     ``Sec. 156. Assistants to the Chairman for National Guard 
       matters and for Reserve matters'';

     and
       (2) a text consisting of the text of subsections (a) 
     through (f)(1) of section 901 of the National Defense 
     Authorization Act for Fiscal Year 1998 (10 U.S.C. 155 note), 
     revised--
       (A) in subsection (c), by deleting ``two years'' and 
     inserting ``four years''; and
       (B) in subsection (f), by deleting ``(1)''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``156. Assistants to the Chairman for National Guard members and for 
              Reserve matters.''.

       (c) Conforming Repeal.--Section 901 of the National Defense 
     Authorization Act for Fiscal Year 1998 (10 U.S.C. 155 note) 
     is repealed.

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

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

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

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

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

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

     SEC. 508. TITLE OF VICE CHIEF OF THE NATIONAL GUARD BUREAU 
                   CHANGED TO DIRECTOR OF THE JOINT STAFF OF THE 
                   NATIONAL GUARD BUREAU.

       (a) In General.--Section 10505 of title 10, United States 
     Code, as amended by section 507(c), is amended by striking 
     ``Vice Chief of the National Guard Bureau'' each place it 
     appears in subsections (a), (b), and (c) and inserting 
     ``Director of the Joint Staff of the National Guard Bureau''.
       (b) Clerical Amendments.--(1) The heading of such section 
     is amended to read as follows:

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

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

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

     SEC. 509. TWO-YEAR EXTENSION OF AUTHORITY TO WAIVE 
                   REQUIREMENT THAT RESERVE CHIEFS AND NATIONAL 
                   GUARD DIRECTORS HAVE SIGNIFICANT JOINT DUTY 
                   EXPERIENCE.

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

     SEC. 510. REPEAL OF DISTRIBUTION REQUIREMENTS FOR NAVAL 
                   RESERVE FLAG OFFICERS.

       Subsection (c) of 12004 of title 10, United States Code, is 
     amended--
       (1) by striking ``(1)'' after ``(c)''; and
       (2) by striking the second sentence and all that follows 
     through the end of the subsection.

           Subtitle B--Other Officer Personnel Policy Matters

     SEC. 511. TRANSITION OF ACTIVE-DUTY LIST OFFICER FORCE TO ALL 
                   REGULAR STATUS.

       (a) Repeal of Requirement That Active-Duty Officers Serve 
     in a Reserve Component for at Least One Year Before Receiving 
     a Regular Commission.--Section 532 of title 10, United States 
     Code, is amended by striking subsection (e).
       (b) Revision to Qualifications for Original Appointment as 
     a Commissioned Officer.--(1) Section 532 of such title is 
     further amended by adding at the end the following new 
     subsection:
       ``(f) The Secretary of Defense may waive the requirement of 
     paragraph (1) of subsection (a) with respect to a person who 
     has been lawfully admitted to the United States for permanent 
     residence when the Secretary determines that the national 
     security so requires, but only for an original appointment in 
     a grade below the grade of major or lieutenant commander.''.
       (2) Section 619(d) of such title is amended by adding at 
     the end the following new paragraph:
       ``(5) An officer of the Army, Air Force, or Marine Corps in 
     the grade of captain, or of the Navy in the grade of 
     lieutenant, who is not a citizen of the United States.''.
       (c) Repeal of Limitations on Total Strength of Regular 
     Commissioned Officers on Active-Duty.--Section 522 of such 
     title is repealed. The table of sections at the beginning of 
     chapter 31 of such title is amended by striking the item 
     relating to that section.
       (d) Authority for Original Appointment of Regular Officers 
     in Junior Grades to be Made by President Alone.--Section 
     531(a) of such title is amended to read as follows:
       ``(a)(1) Original appointments in the grades of second 
     lieutenant, first lieutenant, and captain in the Regular 
     Army, Regular Air Force, and Regular Marine Corps and in the 
     grades of ensign, lieutenant (junior grade), and lieutenant 
     in the Regular Navy shall be made by the President alone.
       ``(2) Original appointments in the grades of major, 
     lieutenant colonel, and colonel in the Regular Army, Regular 
     Air Force, and Regular Marine Corps and in the grades of 
     lieutenant commander, commander, and captain in the Regular 
     Navy shall be made by the President, by and with the advice 
     and consent of the Senate.''.
       (e) Termination of Requirement of 6 Years Service in a 
     Reserve Component for Nonregular Service Retirement 
     Eligibility.--(1) Section 12731(a)(3) of such title is 
     amended by inserting after ``(3)'' the following: ``in the 
     case of a person who completed the service requirements of 
     paragraph (2) before the date of the enactment of the 
     National Defense Authorization Act for Fiscal Year 2005,''.
       (f) All Regular Officer Appointments for Students Attending 
     University of Health Sciences.--Section 2114(b) of such title 
     is amended by striking the first two sentences and inserting 
     the following: ``They shall be appointed in a regular 
     component of the uniformed services and shall serve on active 
     duty as a second lieutenant or ensign (or the equivalent).''.

     SEC. 512. MANDATORY RETENTION ON ACTIVE DUTY TO QUALIFY FOR 
                   RETIREMENT PAY.

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

     SEC. 513. DISTRIBUTION IN GRADE OF MARINE CORPS RESERVE 
                   OFFICERS IN AN ACTIVE STATUS IN GRADES BELOW 
                   BRIGADIER GENERAL

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

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

     SEC. 514. TUITION ASSISTANCE FOR OFFICERS.

       (a) Authority To Reduce or Waive Active Duty Service 
     Obligation.--Subsection (b) of section 2007 of title 10, 
     United States Code, is amended--
       (1) by inserting ``(1)'' after ``(b)'';
       (2) by inserting ``or full-time National Guard duty'' after 
     ``active duty'' each place it appears; and
       (2) by adding at the end the following new paragraph:
       ``(2) Notwithstanding paragraph (1), the Secretary of the 
     military department may reduce or waive the active duty 
     service obligation--
       ``(A) in the case of a commissioned officer who is subject 
     to mandatory separation;
       ``(B) in the case of a commissioned officer who has 
     completed the period of active duty service in support of a 
     contingency operation; or
       ``(C) in other exigent circumstances as determined by the 
     Secretary.'.
       (b). Increase in Tuition Assistance Authorized for Army 
     Officers in the Selected Reserve.--Paragraph (1) of section 
     2007(c) of title 10, United States Code, is amended to read 
     as follows:

[[Page H3296]]

       ``(1) Subject to paragraphs (2) and (3), the Secretary of 
     the Army may pay the charges of an educational institution 
     for the tuition or expenses of an officer in the Selected 
     Reserve of the Army National Guard or the Army Reserve for 
     education or training of such officer.''.
       (c) Effective Date.--The amendment made by subsection (a) 
     may, at the discretion of the Secretary concerned, be applied 
     to a service obligation incurred by an officer serving on 
     active duty as of the date of the enactment of this Act.

                 Subtitle C--Reserve Component Matters

     SEC. 521. REVISION TO STATUTORY PURPOSE OF THE RESERVE 
                   COMPONENTS.

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

     SEC. 522. IMPROVED ACCESS TO RESERVE COMPONENT MEMBERS FOR 
                   ENHANCED TRAINING.

       (a) Reserve Components Generally.-- Section 12301 of title 
     10, United States Code, is amended--
       (1) in subsection (a), by striking ``(other than for 
     training)'';
       (2) in subsection (c)--
       (A) in the first sentence, by striking ``(other than for 
     training)'' and inserting ``as provided in subsection (a)''; 
     and
       (B) in the second sentence, by striking ``ordered to active 
     duty (other than for training)'' and inserting ``so ordered 
     to active duty''; and
       (3) in subsection (e), by striking ``(other than for 
     training)'' and inserting ``as provided in subsection (a)''.
       (b) Ready Reserve.--Section 12302 of such title is amended 
     by striking ``(other than for training)'' in subsections (a) 
     and (c).
       (c) Order to Active Duty Other Than During War or National 
     Emergency.--Section 12304(a) of such title is amended by 
     striking ``(other than for training)''.
       (d) Standby Reserve.--Section 12306 of such title is 
     amended--
       (1) in subsection (a), by striking ``(other than for 
     training) only''; and
       (2) in subsection (b), by striking ``(other than for 
     training)'' in paragraphs (1) and (2) and inserting ``as 
     provided in section 12301(a) of this title''.
       (d) Standby Reserve.--Section 12306 of such title is 
     amended by striking ``(other than for training)'' each place 
     it appears and inserting ``as provided in section 12301(a)''.

     SEC. 523. STATUS UNDER DISABILITY RETIREMENT SYSTEM FOR 
                   RESERVE MEMBERS RELEASED FROM ACTIVE DUTY DUE 
                   TO INABILITY TO PERFORM WITHIN 30 DAYS OF CALL 
                   TO ACTIVE DUTY.

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

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

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

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

     SEC. 524. FEDERAL CIVIL SERVICE MILITARY LEAVE FOR RESERVE 
                   AND NATIONAL GUARD CIVILIAN TECHNICIANS.

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

     SEC. 525. EXPANDED EDUCATIONAL ASSISTANCE AUTHORITY FOR 
                   OFFICERS COMMISSIONED THROUGH ROTC PROGRAM AT 
                   MILITARY JUNIOR COLLEGES.

       (a) Financial Assistance Program for Service on Active 
     Duty.--Section 2107(c) of title 10, United States Code, is 
     amended by adding at the end the following new paragraphs:
       ``(5)(A) The Secretary of the Army may provide an 
     individual who received a commission as a Reserve officer in 
     the Army from a military junior college through a program 
     under this chapter and who does not have a baccalaureate 
     degree with financial assistance for pursuit of a 
     baccalaureate degree.
       ``(B) Such assistance is in addition to any financial 
     assistance provided under paragraph (1), (3), or (4).
       ``(C) The agreement and reimbursement requirements 
     established in section 2005 of this title are applicable to 
     financial assistance under this paragraph.
       ``(D) An officer receiving financial assistance under this 
     paragraph shall be attached to the unit of the Army at the 
     educational institution at which the officer is pursuing a 
     baccalaureate degree and shall be considered to be a member 
     of the Senior Reserve Officers' Training Corps on inactive 
     duty for training, as defined in section 101(23) of title 38.
       ``(E) A qualified officer who did not previously receive 
     financial assistance under this section is eligible to 
     receive educational assistance under this paragraph.
       ``(F) A Reserve officer may not be called or ordered to 
     active duty for a deployment while participating in the 
     program under this paragraph.
       ``(G) Any service obligation incurred by an officer under 
     an agreement entered into under this paragraph shall be in 
     addition to any service obligation incurred by that officer 
     under any other provision of law or agreement.
       ``(H) The amount obligated during any fiscal year under 
     this paragraph and paragraph (4) of section 2107a(c) of this 
     title may not exceed a total of $1,500,000.''.
       (b) Financial Assistance Program for Service in Troop 
     Program Units.--Section 2107a(c) of such title is amended by 
     adding at the end the following new paragraphs:
       ``(4)(A) The Secretary of the Army may provide an 
     individual who received a commission as a Reserve officer in 
     the Army from a military junior college through a program 
     under this chapter and who does not have a baccalaureate 
     degree with financial assistance for pursuit of a 
     baccalaureate degree.
       ``(B) Such assistance is in addition to any provided under 
     paragraph (1) or (2).
       ``(C) The agreement and reimbursement requirements 
     established in section 2005 of this title are applicable to 
     financial assistance under this paragraph.
       ``(D) An officer receiving financial assistance under this 
     paragraph shall be attached to the unit of the Army at the 
     educational institution at which the officer is pursuing a 
     baccalaureate degree and shall be considered to be a member 
     of the Senior Reserve Officers' Training Corps on inactive 
     duty for training, as defined in section 101(23) of title 38.
       ``(E) A qualified officer who did not previously receive 
     financial assistance under this section is eligible to 
     receive educational assistance under this paragraph.
       ``(F) A Reserve officer may not be called or ordered to 
     active duty for a deployment while participating in the 
     program under this paragraph.
       ``(G) Any service obligation incurred by an officer under 
     an agreement entered into under this paragraph shall be in 
     addition to any service obligation incurred by that officer 
     under any other provision of law or agreement.''.
       ``(H) As provided in subparagraph (H) of section 2107(c)(5) 
     of this title, the amount obligated during any fiscal year 
     under this paragraph and paragraph (5) of section 2107(c) of 
     this title may not exceed a total of $1,500,000.''.
       (c) Repeal of Sunset Provision for Financial Assistance 
     Program for Students not Eligible for Advanced Training.--
     Section 2103a of such title is amended by striking subsection 
     (d).
       (d) Annual Implementation Report.--The Secretary of the 
     Army shall submit to the Committees on Armed Services of the 
     Senate and House of Representatives an annual report, for 
     each of the next six years after the enactment of this Act, 
     providing information on the experience of the Department of 
     Defense during the preceding year under paragraph (5) of 
     section 2107(c) of title 10, United States Code, as added by 
     subsection (a), and under paragraph (4) of section 2107a(c) 
     of title 10, United States Code, as added by subsection (b). 
     The report for with respect to any year shall be submitted 
     not later March 31 of the following year.

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

       (a) Continuation of Loan Repayment.--Section 16301(a) of 
     title 10, United States Code, is amended--
       (1) in paragraph (2), by striking ``The Secretary'' in the 
     first sentence and inserting ``Except as provided in 
     paragraph (3), the Secretary of Defense''; and
       (2) by adding at the end the following new paragraph:
       ``(3) In the case of a commitment made by the Secretary of 
     Defense after the date of the enactment of this paragraph to 
     repay a loan under paragraph (1) conditioned upon the 
     performance by the borrower of service as an enlisted member 
     under paragraph (2), the Secretary shall repay the loan for 
     service performed by the borrower as an officer (rather than 
     as an enlisted member) in the case of a borrower who, after 
     such commitment is entered into and while performing service 
     as an enlisted member, accepts an appointment or commission 
     as a warrant officer or commissioned officer of the Selected 
     Reserve.''.
       (b) Limitation on Fiscal Year 2005 Obligations.--During 
     fiscal year 2005, obligations incurred under section 16301 of 
     title 10, United States Code, as amended by subsection (a), 
     to make loan repayments on behalf of members of the reserve 
     components who accept an appointment or commission as a 
     warrant officer or commissioned officer of the Selected 
     Reserve may not exceed $1,000,000.

     SEC. 527. NUMBER OF STARBASE ACADEMIES IN A STATE.

       Paragraph (3) of section 2193b(c) of title 10, United 
     States Code, is amended to read as follows:
       ``(3)(A) Subject to subparagraph (B), the Secretary may not 
     support the establishment in any State of more than two 
     academies.
       ``(B) The Secretary may waive the limitation in 
     subparagraph (A). Any such waiver shall be made under 
     criteria to be prescribed by the Secretary.''.

[[Page H3297]]

     SEC. 528. COMPTROLLER GENERAL ASSESSMENT OF INTEGRATION OF 
                   ACTIVE AND RESERVE COMPONENTS OF THE NAVY.

       (a) Assessment.--The Comptroller General shall review the 
     plan of the Secretary of the Navy for, and implementation by 
     the Secretary of, initiatives undertaken within the Navy to 
     improve the integration of the active and reserve components 
     of the Navy in peacetime and wartime operations resulting 
     from--
       (1) the Naval Reserve Redesign Study carried out by the 
     Navy: and
       (2) the zero-based review of reserve component force 
     structure undertaken by the commander of the Fleet Forces 
     Command of the Navy during fiscal year 2004.
       (b) Report.--No later than March 31, 2005, the Comptroller 
     General shall submit to the Committees on Armed Services of 
     the Senate and House of Representatives a report on the 
     results of the review under subsection (a). The Comptroller 
     General shall include in the report recommendations for 
     improved active and reserve component integration in the 
     Navy.
       (c) Limitation.--No funds appropriated or otherwise made 
     available by this Act may be obligated or expended to 
     decommission a Naval Reserve or Marine Corps Reserve aviation 
     squadron until 90 days after the date on which the report 
     required by subsection (b) is submitted to the Committees on 
     Armed Services of the Senate and House of Representatives.
       (d) Matters to be Examined.--In conducting the review, the 
     Comptroller General shall examine the following:
       (1) The criteria the Navy used to determine the following 
     with respect to integration of the active and reserve 
     components of the Navy:
       (A) The future mix of active and reserve component force 
     structure.
       (B) Organization of command and control elements.
       (C) Manpower levels.
       (D) Basing changes.
       (2) The extent to which the plans of the Navy for improving 
     the integration of the active and reserve components of the 
     Navy considered each of the following:
       (A) The new Fleet Response Plan of the Navy.
       (B) The flexible deployment concept.
       (C) Global operations.
       (D) Emerging mission requirements.
       (E) Other evolving initiatives.
       (3) The manner in which the timing of the execution of 
     planned active and reserve integration initiatives will 
     correlate with the funding of those initiatives, including 
     consideration of an evaluation of the adequacy of the funding 
     allocated to those integration initiatives.
       (4) For naval aviation forces, the extent to which the 
     active and reserve component integration plans of the Navy 
     will affect factors such as--
       (A) common training and readiness standards for active and 
     reserve forces;
       (B) reserve component access to the same equipment as the 
     active component;
       (C) relationships between command and headquarters elements 
     of active and reserve forces; and
       (D) trends in the use by the Navy of units referred to as 
     ``associate'' units or ``blended'' units.
       (E) Basing of future aviation forces.
       (F) Employment of Naval Reserve aviation forces and 
     personnel in peacetime and wartime operations.

     SEC. 529. OPERATIONAL ACTIVITIES CONDUCTED BY THE NATIONAL 
                   GUARD UNDER AUTHORITY OF TITLE 32.

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

       ``CHAPTER 9--OPERATIONS OF A NATIONAL OR FEDERAL INTEREST

``Sec.
``901. Operational activities.
``902. Operational duty.
``903. Funding assistance.
``904. Operations requests.

     ``Sec. 901. Operational activities

       ``The Secretary of Defense may provide funds in advance or 
     on a reimbursable basis to a Governor to employ National 
     Guard units and individuals to conduct operational activities 
     that the Secretary determines to be in the national interest. 
     The Secretary of Defense shall prescribe regulations to 
     implement this chapter.

     ``Sec. 902. Operational duty

       ``All duty performed under this chapter shall be considered 
     to be full-time National Guard duty under section 502(f) of 
     this title. Members of the National Guard performing full-
     time National Guard duty in the Active Guard and Reserve 
     Program may support or execute operational activities 
     performed by the National Guard under this chapter.

     ``Sec. 903. Funding assistance

       ``When the Secretary of Defense determines that certain 
     operational activities of the National Guard are in the 
     national interest under section 901 of this title, the 
     Secretary shall provide funds to a State in an amount that 
     the Secretary determines is appropriate for the following 
     costs of the operational activities from funds available to 
     the Department for related purposes:
       ``(1) The pay, allowances, clothing, subsistence, 
     gratuities, travel, and related expenses of personnel of the 
     National Guard of that State.
       ``(2) The operation and maintenance of the equipment and 
     facilities of the National Guard of that State.
       ``(3) The procurement of services and equipment, and the 
     leasing of equipment, for the National Guard of that State.

     ``Sec. 904. Operations requests

       ``(a) Requests.--A Governor of a State may request funding 
     assistance for the operational activities of the National 
     Guard of that State from the Secretary of Defense. Any such 
     request shall include the following:
       ``(1) The specific intended operational activities of the 
     National Guard of that State.
       ``(2) An explanation of why the operational activities are 
     in the national interest.
       ``(3) A certification that operational activities are to be 
     conducted at a time when the personnel involved are not in 
     Federal service.
       ``(4) A certification that participation by National Guard 
     personnel in the operational activities is service in 
     addition to training required under section 502 of this 
     title.''.
       (b) Clerical Amendment.--The table of chapters at the 
     beginning of such title is amended by adding at the end the 
     following new item:

``9. Operations of a National or Federal Interest............901''.....

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

     SEC. 530. ARMY PROGRAM FOR ASSIGNMENT OF ACTIVE COMPONENT 
                   ADVISERS TO UNITS OF THE SELECTED RESERVE.

       (a) Change in Minimum Number Required to be Assigned.--
     Section 414(c)(1) of the National Defense Authorization Act 
     for Fiscal Year 2002 (Public Law 107-107; 10 U.S.C. 12001 
     note) is amended by striking ``5,000'' and inserting 
     ``3,500''.
       (b) Limitation on Reductions.--Notwithstanding the 
     amendment made by subsection (a), the Secretary of the Army 
     may not reduce the number of active component Reserve support 
     personnel below the number of such personnel as of the date 
     of the enactment of this Act until the report required by 
     subsection (c) has been submitted.
       (c) Report.--Not later than March 31, 2005, the Secretary 
     of the Army shall submit to the Committees on Armed Services 
     of the Senate and House of Representatives a report on the 
     support by active components of the Army for training and 
     readiness of the Army National Guard and Army Reserve. The 
     report shall include an evaluation and determination of each 
     of the following:
       (1) The effect on the ability of the Army to improve such 
     training and readiness resulting from the reduction under the 
     amendment made by subsection (a) in the minimum number of 
     active component Reserve support personnel.
       (2) The adequacy of having 3,500 members of the Army (the 
     minimum number required under the law as so amended) assigned 
     as active component Reserve support personnel in order to 
     meet emerging training requirements in the Army reserve 
     components in connection with unit and force structure 
     conversions and preparations for wartime deployment
       (3) The nature and effectiveness of efforts by the Army to 
     reallocate the 3,500 personnel assigned as active component 
     Reserve support personnel to higher priority requirements and 
     to expand the use of reservists on active duty to meet 
     reserve component training needs.
       (4) Whether the Army is planning further reductions in the 
     number of active component Reserve support personnel and, if 
     so, the scope and rationale for those reductions.
       (5) Whether an increase in Army reserve component full-time 
     support personnel will be required to replace the loss of 
     active component Reserve support personnel.
       (d) Definition.--In this section, the term ``active 
     component Reserve support personnel'' means the active 
     component Army personnel assigned as advisers to units of the 
     Selected Reserve of the Ready Reserve of the Army pursuant to 
     section 414 of the National Defense Authorization Act for 
     Fiscal Year 2002 (Public Law 107-107; 10 U.S.C. 12001 note).

                  Subtitle D--Joint Officer Management

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

       (a) Plan Required.--(1) The Secretary of Defense shall 
     develop a strategic plan for joint officer management and 
     joint professional military education that links joint 
     officer development to the accomplishment of the overall 
     missions and goals of the Department of Defense, as set forth 
     in the most recent national military strategy under section 
     153(d) of title 10, United States Code. Such plan shall be 
     developed for the purpose of ensuring that sufficient numbers 
     of qualified officers are available as necessary to meet the 
     needs of the Department for qualified officers who are 
     operationally effective in the joint environment.
       (2) The Secretary shall develop the strategic plan with the 
     advice of the Chairman of the Joint Chiefs of Staff.
       (b) Matters to be Included.--As part of the strategic plan 
     under subsection (a), the Secretary shall include the 
     following:
       (1) A statement of the levels of joint officer resources 
     needed to be available to properly support the overall 
     missions of the Department of Defense, with such resources to 
     be specified by the number of officers with the joint 
     specialty, the number of officers required for service in 
     joint duty assignment positions, and the training and 
     education resources required.
       (2) An assessment of the available and projected joint 
     officer development resources (including officers, 
     educational and training resources, and availability of joint 
     duty assignment positions and tours of duty) necessary to 
     achieve the levels specified under paragraph (1).

[[Page H3298]]

       (3) Identification of any problems or issues arising from 
     linking resources for joint officer development to 
     accomplishment of the objective of meeting the levels 
     specified under paragraph (1) to resolve those problems and 
     issues and plans.
       (4) A description of the process for identification of the 
     requirement for joint specialty officers.
       (5) A description of the career development and management 
     of joint specialty officers and of any changes to be made to 
     facilitate achievement of the levels of resources specified 
     in paragraph (1), including additional education 
     requirements, promotion opportunities, and assignments to 
     fill joint assignments.
       (c) Inclusion of Reserve Component Officers.--In developing 
     the strategic plan required by subsection (a), the Secretary 
     shall include joint officer development for officers on the 
     reserve active-status list in the plan.
       (d) Report.--The Secretary shall submit the plan developed 
     under this section to the Committees on Armed Services of the 
     Senate and House of Representatives not later than January 
     15, 2006.
       (e) Additional Assessment.--Not later than January 15, 
     2007, the Secretary of Defense shall submit to the Committees 
     on Armed Services of the Senate and House of Representatives, 
     as a follow-on to the report under subsection (d), a report 
     providing an assessment of, and initiatives to improve, the 
     performance in joint matters of the following:
       (1) Senior civilian officers and employees in the Office of 
     the Secretary of Defense, the Defense Agencies, and the 
     military departments.
       (2) Senior noncommissioned officers.
       (3) Senior leadership in the reserve components.

     SEC. 532. JOINT REQUIREMENTS FOR PROMOTION TO FLAG OR GENERAL 
                   OFFICER GRADE.

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

     SEC. 533. CLARIFICATION OF TOURS OF DUTY QUALIFYING AS A 
                   JOINT DUTY ASSIGNMENT.

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

     SEC. 534. AUTHORITY FOR RESERVE OFFICERS TO QUALIFY AS JOINT 
                   SPECIAL OFFICERS.

       (a) Authority.--Subsection (a) of section 661 of title 10, 
     United States Code, is amended by striking ``on the active-
     duty list''.
       (b) Nominations for Selection.--Subsection (b) of such 
     section is amended in the second sentence--
       (1) by striking ``and'' after ``military department,''; and
       (2) by inserting after ``such date,'' the following: ``, 
     and each reserve component officer in an active status who is 
     not on the active-duty list,''.
       (c) Conforming Amendments.--(1) Section 662 of such title 
     is amended--
       (A) in subsection (a), by inserting ``on the active-duty 
     list'' after ``qualifications of officers'' in the matter 
     preceding paragraph (1); and
       (B) in subsection (b), by inserting ``on the active-duty 
     list'' after ``preceding fiscal year of officers'' in the 
     first sentence.
       (2)(A) The heading of such section is amended to read as 
     follows:

     ``Sec. 662. Promotion policy objectives for joint officers on 
       the active-duty list''.

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

``662. Promotion policy objectives for joint officers on the active-
              duty list.''.

       (d) Annual Report to Congress.--(1) Section 667 of such 
     title is amended--
       (A) by redesignating paragraph (18) as paragraph (19); and
       (B) by inserting after paragraph (17) the following new 
     paragraph (18):
       ``(18) The implementation of authority under section 661 of 
     this title to certify reserve component officers as joint 
     specialty officers, together with the number of reserve 
     component officers who were so certified during the reporting 
     period.''.
       (2) The Secretary of Defense shall include in the annual 
     report of the Secretary to Congress for fiscal year 2005, as 
     part of the material included in that report pursuant to 
     paragraph (18) of section 667 of title 10, United States 
     Code, a summary of the joint officer management policies 
     adopted for reserve component officers pursuant to the 
     amendments made by subsections (a) and (b).

              Subtitle E--Professional Military Education

     SEC. 541. IMPROVEMENT TO PROFESSIONAL MILITARY EDUCATION IN 
                   THE DEPARTMENT OF DEFENSE.

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

             ``CHAPTER 107--PROFESSIONAL MILITARY EDUCATION

``Sec.
``2151. Definitions
``2152. Professional military education: general requirements.
``2153. Capstone course: newly selected general and flag officers.
``2154. Joint professional military education: three-phase approach.
``2155. Intermediate level service colleges: written examination for 
              selection for attendance.
``2156. Joint professional military education phase II program of 
              instruction.
``2157. Intermediate and senior level service colleges; Joint Forces 
              Staff College: duration of principle course of 
              instruction.
``2158. Annual report to Congress.

     ``Sec. 2151. Definitions

       (a) Joint Professional Military Education.--Joint 
     professional military education consists of the rigorous and 
     thorough instruction and examination of officers of the armed 
     forces in an environment designed to promote a theoretical 
     and practical in-depth understanding of joint matters and, 
     specifically, of the subject matter covered. The subject 
     matter to be covered by joint professional military education 
     shall include at least the following:
       ``(1) Integrated employment of land, sea, and air forces.
       ``(2) National military strategy.
       ``(3) Strategic planning.
       ``(4) Contingency planning.
       ``(5) Command and control of combat operations under 
     unified command.
       ``(6) Joint and combined operations.
       ``(7) Joint doctrine.
       ``(8) Joint logistics.
       ``(9) Joint communications.
       ``(10) Joint intelligence.
       ``(11) Campaign planning.
       ``(12) Joint military command and control systems and the 
     interface of those systems with national command systems.
       ``(13) Joint force development, including mobilization.
       ``(14) Joint requirements development.
       ``(15) Military history.
       ``(16) Awareness of cultures in areas outside of the United 
     States where United States forces may operate or of forces of 
     foreign countries with whom United States forces may operate.
       ``(b) Other Definitions.--In this chapter:
       ``(1) The term `senior level service school' means any of 
     the following:
       ``(A) The Army War College.
       ``(B) The College of Naval Warfare.
       ``(C) The Air War College.
       ``(D) The Marine Corps University.
       ``(2) The term `intermediate level service school' means 
     any of the following:
       ``(A) The United States Army Command and General Staff 
     College.
       ``(B) The College of Naval Command and Staff.
       ``(C) The Air Command and Staff College.
       ``(D) The Marine Corps Command and Staff College.

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

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

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

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

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

       ``(a) Three-Phase Approach.--The Secretary of Defense shall 
     implement a three-phase approach to joint professional 
     military education, as follows:
       ``(1) There shall be a course of instruction, designated 
     and certified by the Secretary of Defense as Phase I 
     instruction, consisting all the elements of a joint 
     professional military education (as specified in section 
     2151(a) of this

[[Page H3299]]

     title), in addition to the principal curriculum taught to all 
     officers at an intermediate level service school.
       ``(2) There shall be a course of instruction, designated 
     and certified by the Secretary of Defense as Phase II 
     instruction, consisting of a joint professional military 
     education curriculum taught in residence at--
       ``(A) the Joint Forces Staff College; or
       ``(B) a senior level service school that has been 
     designated and certified by the Secretary of Defense as a 
     joint professional military education institution.
       ``(3) There shall be a course of instruction, designated 
     and certified by the Secretary of Defense as the Capstone 
     course, for officers selected for promotion to the grade of 
     brigadier general or, in the case of the Navy, rear admiral 
     (lower half) and offered in accordance with section 2153 of 
     this title.
       ``(b) Sequenced Approach.--The Secretary shall require the 
     sequencing of joint professional military education so that 
     the standard sequence of assignments for such education 
     requires an officer to complete Phase I instruction before 
     proceeding to Phase II instruction, as provided in section 
     2156(a) of this title.

     ``Sec. 2155. Intermediate level service school: written 
       examination for selection for attendance

       ``(a) Requirement.--The Secretary of each military 
     department shall require that performance on a comprehensive 
     written examination shall constitute not less than 20 percent 
     of the evaluation criteria for selection of any officer for 
     full-time attendance at an intermediate level service school 
     under the jurisdiction of the Secretary. Such an examination 
     shall be designed so as to require substantive knowledge of 
     military history, national military strategy, service and 
     joint doctrine, and such other subjects as the Secretary may 
     require. Such an examination shall be required for each class 
     entering an intermediate level service school after September 
     30, 2007.
       ``(b) Selection From Different Service.--The Secretary of a 
     military department, in considering candidates for full-time 
     attendance at an intermediate level service school under the 
     jurisdiction of the Secretary who are officers of an armed 
     force other than the armed force that administers that 
     service school, shall consider such an officer to be 
     qualified for selection for such attendance if the officer 
     has met all the requirements for attendance at the equivalent 
     intermediate level service school of that officer's own armed 
     force.

     ``Sec. 2156. Joint professional military education phase II 
       program of instruction

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

     ``Sec. 2157. Intermediate and senior level service schools; 
       Joint Forces Staff College: duration of principle course of 
       instruction

       ``(a) Service Schools.--The duration of the principal 
     course of instruction offered at each intermediate level 
     service school and each senior level service school may not 
     be less than 10 months of resident instruction. The Secretary 
     of Defense may waive the requirement in the preceding 
     sentence during a period of war or during a national 
     emergency declared by the President or the Congress.
       ``(b) Joint Forces Staff College.--(1) The duration of the 
     principal course of instruction offered at the Joint Forces 
     Staff College may not be less than 10 weeks of resident 
     instruction.
       ``(2) In this subsection, the term `principal course of 
     instruction' means any course of instruction offered at the 
     Joint Forces Staff College as Phase II joint professional 
     military education.

     ``Sec. 2158. Annual report to Congress

       ``The Secretary of Defense shall include in the annual 
     report of the Secretary to Congress under section 113(c) of 
     this title, for the period covered by the report, the 
     following information (which shall be shown for the 
     Department of Defense as a whole and separately for the Army, 
     Navy, Air Force, and Marine Corps and each reserve 
     component):
       ``(1) The number of officers who successfully completed a 
     joint professional military education phase II course and 
     were not selected for promotion.
       ``(2) The number of officer students and faculty members 
     assigned by each service to the professional military schools 
     of the other services and to the joint schools.''.
       (b) Transfer of Other Provisions.--Subsections (b) and (c) 
     of section 663 of title 10, United States Code, are 
     transferred to section 2151 of such title, as added by 
     subsection (a), and added at the end thereof.
       (c) Conforming Amendments.--(1) Section 663 of such title, 
     as amended by subsection (b), is further amended--
       (A) by striking subsections (a) and (e); and
       (B) by striking ``(d) Post-Education Joint Duty 
     Assignments.--(1) The'' and inserting ``(a) Joint Specialty 
     Officers.--The'';
       (C) by striking ``(2)(A) The Secretary'' and inserting 
     ``(b) Other Officers.--(1) The Secretary'';
       (D) by striking ``in subparagraph (B)' and inserting ``in 
     paragraph (2)'';
       (E) by striking ``(B) The Secretary'' and inserting ``(2) 
     The Secretary''; and
       (F) by striking ``in subparagraph (B)' and inserting ``in 
     paragraph (1)''.
       (2)(A) The heading of such section is amended to read as 
     follows:

     ``Sec. 633. Joint duty assignments after completion of joint 
       professional military education''.

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

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

``106A. Educational Assistance for Persons Enlisting for Activ2141 y...

``107. Professional Military Education  ....................2151''.....

     SEC. 542. RIBBONS TO RECOGNIZE COMPLETION OF JOINT 
                   PROFESSIONAL MILITARY EDUCATION.

       (a) In General.--(1) Chapter 57 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 1134. Joint professional military education ribbon: 
       award

       ``(a) JPME I.--The Secretary of Defense may award a ribbon, 
     of appropriate design, as approved by the Secretary, to any 
     person who successfully completes a program of instruction 
     approved by the Secretary as qualifying for credit as the 
     Joint Professional Military Education Phase I program of 
     instruction.
       ``(b) JPME II.--The Secretary of Defense may award a 
     device, of appropriate design, as approved by the Secretary, 
     for wear with the ribbon awarded under subsection (a), to any 
     person who successfully completes a program of instruction 
     approved by the Secretary as qualifying for credit as the 
     Joint Professional Military Education Phase II course of 
     instruction.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``1134. Joint professional military education ribbon: award.''.
       (b) Effective Date.--Section 1134 of title 10, United 
     States Code, as added by subsection (a), shall apply with 
     respect to the successful completion of a joint professional 
     military education program of instruction after November 29, 
     1989.

     SEC. 543. INCREASE IN NUMBER OF PRIVATE-SECTOR CIVILIANS WHO 
                   MAY BE ENROLLED FOR INSTRUCTION AT NATIONAL 
                   DEFENSE UNIVERSITY.

       Section 2167(a) of title 10, United States Code, is amended 
     by striking ``10'' and inserting ``20''.

[[Page H3300]]

     SEC. 544. REQUIREMENT FOR COMPLETION OF PHASE I JOINT 
                   PROFESSIONAL MILITARY EDUCATION BEFORE 
                   PROMOTION TO COLONEL OR NAVY CAPTAIN.

       (a) In General.--Chapter 36 of title 10, United States 
     Code, is amended by inserting after section 619a the 
     following new section:

     ``Sec. 619b. Eligibility for consideration for promotion: 
       joint professional military education required before 
       promotion to colonel or Navy captain; exceptions

       ``(a) General Rule.--After September 30, 2007, an officer 
     on the active-duty list of the Army, Air Force, or Marine 
     Corps may not be appointed to the grade of colonel, and an 
     officer on the active-duty list of the Navy may not be 
     appointed to the grade of captain, unless the officer has 
     successfully completed a program of instruction approved by 
     the Secretary as qualifying for credit as the Joint 
     Professional Military Education Phase I or Phase II program 
     of instruction.
       ``(b) Exceptions.--Subject to subsection (c), the Secretary 
     of Defense may waive subsection (a) in the following 
     circumstances:
       ``(1) When necessary for the good of the service.
       ``(2) In the case of an officer whose proposed selection 
     for promotion is based primarily upon scientific and 
     technical qualifications for which joint requirements do not 
     exist.
       ``(3) In the case of--
       ``(A) a medical officer, dental officer, veterinary 
     officer, medical service officer, nurse, or biomedical 
     science officer;
       ``(B) a chaplain; or
       ``(C) a judge advocate.
       ``(c) Waiver To Be Individual.--A waiver may be granted 
     under subsection (b) only on a case-by-case basis in the case 
     of an individual officer.
       ``(d) Special Rule for Good-of-the-Service Waiver.--In the 
     case of a waiver under subsection (b)(1), the Secretary shall 
     provide that the first duty assignment as a colonel or Navy 
     captain of the officer for whom the waiver is granted shall 
     be to a program of joint professional military education.
       ``(e) Limitation on Delegation of Waiver Authority.--The 
     authority of the Secretary of Defense to grant a waiver under 
     subsection (b) (other than under paragraph (1) of that 
     subsection) may be delegated only to the Deputy Secretary of 
     Defense, an Under Secretary of Defense, or an Assistant 
     Secretary of Defense.
       ``(f) Regulations.--The Secretary of Defense shall 
     prescribe regulations to carry out this section. The 
     regulations shall specifically identify for purposes of 
     subsection (b)(2) those categories of officers for which 
     selection for promotion to colonel or, in the case of the 
     Navy, captain is based primarily upon scientific and 
     technical qualifications for which joint requirements do not 
     exist.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``619b. Eligibility for consideration for promotion: joint professional 
              military education required before promotion to colonel 
              or Navy captain; exceptions.''.

            Subtitle F--Other Education and Training Matters

     SEC. 551. COLLEGE FIRST DELAYED ENLISTMENT PROGRAM.

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

     ``Sec. 511. College First Program

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

``511. College First Program''.

       (b) Repeal of Army College First Program.--Section 573 of 
     the National Defense Authorization Act for Fiscal Year 2000 
     (10 U.S.C. 513 note) is repealed. The Secretary of the Army 
     shall treat the program under section 511 of title 10, United 
     States Code, as added by subsection (a), as a continuation of 
     the program under the section repealed by the preceding 
     sentence.
       (c) Effective Date.--Section 511 of title 10, United States 
     Code, as added by subsection (a), and the repeal made by 
     subsection (b) shall take effect on October 1, 2004.
       (d) Limitation on Fiscal Year 2005 Obligations.--During 
     fiscal year 2005, obligations incurred under section 511 of 
     title 10, United States Code, as added by subsection (a), to 
     pay allowances to persons accepted for enlistment as a 
     Reserve for service in the Selected Reserve or Individual 
     Ready Reserve of a reserve component using the expanded 
     authority provided by the amendment made by subsection (a) 
     may not exceed $5,000,000. The authority to pay allowances 
     under such section shall not be considered to be an expanded 
     authority to the extent that the authority to pay such 
     allowances was available under section 573 of the National 
     Defense Authorization Act for Fiscal Year 2000 (10 U.S.C. 513 
     note), before the repeal of such section by subsection (b).

     SEC. 552. STANDARDIZATION OF AUTHORITY TO CONFER DEGREES ON 
                   GRADUATES OF COMMUNITY COLLEGE OF THE AIR FORCE 
                   WITH AUTHORITY FOR OTHER SCHOOLS OF AIR 
                   UNIVERSITY.

       (a) Change in Degree Conferring Authority.--Section 9315(c) 
     of title 10, United States Code, is amended--
       (1) in paragraph (1), by striking ``Air Education and 
     Training Command of the Air Force'' and inserting ``Air 
     University''; and
       (2) in paragraph (2), by striking ``Air Education and 
     Training Command of the Air Force'' and inserting ``Air 
     University''.
       (b) Conforming and Stylistic Amendments.--(1) Subsection 
     (a) of section 9317 of such title is amended--
       (1) by striking ``may confer--'' and inserting ``may confer 
     degrees as follows:'';
       (2) by striking ``the'' in paragraphs (1), (2), and (3) 
     after the paragraph designation and inserting ``The'';
       (3) by striking the semicolon at the end of paragraph (1) 
     and inserting a period;
       (4) by striking ``; and'' at the end of paragraph (2) and 
     inserting a period; and
       (5) by adding at the end the following new paragraph:
       ``(4) An associate level degree upon graduates of the 
     Community College of the Air Force.''.
       (c) Clerical Amendments.--The heading for such section, and 
     the item relating to such section in the table of sections at 
     the beginning of chapter 901 of such title, are amended by 
     striking the matter between the colon and the last word.

     SEC. 553. CHANGE IN TITLES OF HEADS OF THE NAVAL POSTGRADUATE 
                   SCHOOL.

       (a) President of the School.--(1)(A) Section 7042 of title 
     10, United States Code, is amended by striking 
     ``Superintendent'' each place it appears in the text and 
     inserting ``President''.

[[Page H3301]]

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

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

       (2)(A) Section 7044 of such title is amended by striking 
     ``Superintendent'' and inserting ``President of the school'';
       (B) Sections 7048(a) and 7049(e) of such title are amended 
     by striking ``Superintendent'' and inserting ``President'';
       (b) Provost and Academic Dean.--(1)(A) Subsection (a) of 
     section 7043 of title 10, United States Code, is amended to 
     read as follows:
       ``(a) There is at the Naval Postgraduate School the 
     civilian position of Provost and Academic Dean. The Provost 
     and Academic Dean shall be appointed, to serve for periods of 
     not more than five years, by the Secretary of the Navy after 
     consultation with the Naval Postgraduate School Board of 
     Advisors and consideration of the recommendation of the 
     leadership and faculty of the Naval Postgraduate School.''.
       (B) Subsection (b) of such section is amended by striking 
     ``Academic Dean'' and inserting ``Provost and Academic 
     Dean''.
       (C) The heading of such section is amended to read as 
     follows:

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

       (2) Section 5102(c)(10) of title 5, United States Code, is 
     amended by striking ``Academic Dean'' and inserting ``Provost 
     and Academic Dean''.
       (c) Clerical Amendment.--The table of sections at the 
     beginning of chapter 605 of such title is amended by striking 
     the items related to sections 7042 and 7043 and inserting the 
     following new items:

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

     SEC. 554. INCREASE FROM TWO YEARS TO THREE YEARS IN PERIOD 
                   FOR WHICH EDUCATIONAL LEAVE OF ABSENCE MAY BE 
                   AUTHORIZED.

       Section 708(a) of title 10, United States Code, is amended 
     by striking ``two years'' and inserting ``three years''.

     SEC. 555. CORRECTION TO DISPARATE TREATMENT OF DISABILITIES 
                   SUSTAINED DURING ACCESSION TRAINING.

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

     ``Sec. 1217. Cadets, midshipmen, and aviation cadets: 
       applicability of chapter

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

``1217. Cadets, midshipmen, and aviation cadets: applicability of 
              chapter.''.

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

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

       ``(a) Under joint regulations prescribed by the 
     administering Secretaries, the following persons are entitled 
     to the benefits described in subsection (b):
       ``(1) A member of, and a designated applicant for 
     membership in, Senior ROTC who incurs or aggravates an 
     injury, illness, or disease in the line of duty while 
     performing duties pursuant to section 2109 of this title.
       ``(2) A member of, and a designated applicant for 
     membership in, Senior ROTC who incurs or aggravates an 
     injury, illness, or disease while traveling directly to or 
     from the place at which that member or applicant is to 
     perform or has performed duties pursuant to section 2109 of 
     this title.
       ``(3) Each member of, and each designated applicant for 
     membership in, Senior ROTC who incurs or aggravates an 
     injury, illness, or disease in the line of duty while 
     remaining overnight immediately before the commencement of 
     duties performed pursuant to section 2109 of this title or, 
     while remaining overnight, between successive periods of 
     performing duties pursuant to section 2109 of this title, at 
     or in the vicinity of the site of the duties performed 
     pursuant to section 2109 of this title, if the site is 
     outside reasonable commuting distance from the residence of 
     the member or designated applicant.
       ``(b) A person described in subsection (a) is entitled to--
       ``(1) the medical and dental care appropriate for the 
     treatment of the injury, illness, or disease of that person 
     until the resulting disability cannot be materially improved 
     by further hospitalization or treatment; and
       ``(2) subsistence during hospitalization.
       ``(c) A member of, and each designated applicant for 
     membership in, Senior ROTC is not entitled to benefits under 
     subsection (b) if the injury, illness, or disease or 
     aggravation of an injury, illness, or disease of that person 
     described in subsection (a)(2) is the result of the gross 
     negligence or the misconduct of the member or applicant for 
     membership in Senior ROTC.
       ``(d) In this section, the term `Senior ROTC' means a 
     program under chapter 103 of this title.''.
       (2) Section 1074b of title 10, United States Code, as added 
     by paragraph (1), shall apply with respect to injuries, 
     illnesses, and diseases incurred or aggravated on or after 
     the date of the enactment of this Act.
       (3) The table of sections at the beginning of chapter 55 of 
     such title is amended by inserting after the item relating to 
     section 1074a the following new item:

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

     SEC. 556. PRAYER AT MILITARY SERVICE ACADEMY ACTIVITIES.

       (a) Authority of Superintendent.--The Superintendent of a 
     service academy may have in effect such policy as the 
     Superintendent considers appropriate with respect to the 
     offering of a voluntary, nondenominational prayer at an 
     otherwise authorized activity of the academy, subject to such 
     limitations as the President may prescribe.
       (b) Service Academies.--For purposes of this section, the 
     term ``service academy'' means any of the following:
       (1) The United States Military Academy.
       (2) The United States Naval Academy.
       (3) The United States Air Force Academy.

     SEC. 557. REVISION TO CONDITIONS ON SERVICE OF OFFICERS AS 
                   SERVICE ACADEMY SUPERINTENDENTS.

       (a) Repeal of Requirement That Officers Retire After 
     Service as Superintendent.--Sections 3921, 6371, and 8921 of 
     title 10, United States Code, are repealed.
       (b) Minimum Three-Year Tour of Duty as Superintendent.--
       (1) Military Academy.--Section 4333a of such title is 
     amended to read as follows:

     ``Sec. 4333a. Superintendent: length of assignment

       ``An officer who is detailed to the position of 
     Superintendent of the Academy shall be so detailed for a 
     period of not less than three years. In any case in which an 
     officer serving as Superintendent is reassigned or retires 
     before having completed three years service as 
     Superintendent, or otherwise leaves that position (other than 
     due to death) without having completed three years service in 
     that position, the Secretary of the Army shall submit to 
     Congress notice that such officer left the position of 
     Superintendent without having completed three years service 
     in that position, together with a statement of the reasons 
     why that officer did not complete three years service in that 
     position.''.
       (2) Naval Academy.--Section 6951a of such title is 
     amended--
       (A) by striking the second sentence of subsection (b); and
       (B) by adding at the end the following new subsection:
       ``(c) An officer who is detailed to the position of 
     Superintendent shall be so detailed for a period of not less 
     than three years. In any case in which an officer serving as 
     Superintendent is reassigned or retires before having 
     completed three years service as Superintendent, or otherwise 
     leaves that position (other than due to death) without having 
     completed three years service in that position, the Secretary 
     of the Navy shall submit to Congress notice that such officer 
     left the position of Superintendent without having completed 
     three years service in that position, together with a 
     statement of the reasons why that officer did not complete 
     three years service in that position.''.
       (3) Air Force Academy.--Section 9333a of such title is 
     amended to read as follows:

     ``Sec. 9333a. Superintendent: length of assignment

       ``An officer who is detailed to the position of 
     Superintendent of the Academy shall be so detailed for a 
     period of not less than three years. In any case in which an 
     officer serving as Superintendent is reassigned or retires 
     before having completed three years service as 
     Superintendent, or otherwise leaves that position (other than 
     due to death) without having completed three years service in 
     that position, the Secretary of the Air Force shall submit to 
     Congress notice that such officer left the position of 
     Superintendent without having completed three years service 
     in that position, together with a statement of the reasons 
     why that officer did not complete three years service in that 
     position.''.
       (b) Clerical Amendments.--
       (1) The table of sections at the beginning of chapter 367 
     of such title is amended by striking the item relating to 
     section 3921.
       (2) The table of sections at the beginning of chapter 403 
     of such title is amended to read as follows:

``4333a. Superintendent: length of assignment.''

       (3) The table of sections at the beginning of chapter 573 
     of such title is amended by striking the item relating to 
     section 6371.
       (4) The table of sections at the beginning of chapter 867 
     of such title is amended by striking the item relating to 
     section 8921.
       (5) The table of sections at the beginning of chapter 903 
     of such title is amended to read as follows:

``9333a. Superintendent: length of assignment.''

     SEC. 558. CODIFICATION OF PROHIBITION ON IMPOSITION OF 
                   CERTAIN CHARGES AND FEES AT THE SERVICE 
                   ACADEMIES.

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

     ``Sec. 4359. Cadets: charges and fees for attendance; 
       limitation

       ``(a) Prohibition.--Except as provided in subsection (b), 
     no charge or fee for tuition, room, or board for attendance 
     at the Academy may be imposed unless the charge or fee is 
     specifically authorized by a law enacted after October 5, 
     1994.

[[Page H3302]]

       ``(b) Exception.--The prohibition specified in subsection 
     (a) does not apply with respect to any item or service 
     provided to cadets for which a charge or fee is imposed as of 
     October 5, 1994. The Secretary of Defense shall notify 
     Congress of any change made by the Academy in the amount of a 
     charge or fee authorized under this subsection.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``4359. Cadets: charges and fees for attendance; limitation.''.

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

     ``Sec. 6978. Midshipmen: charges and fees for attendance; 
       limitation

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

``4359. Midshipmen: charges and fees for attendance; limitation.''.
       (c) United States Air Force Academy.--(1) Chapter 903 of 
     title 10, United States Code, is amended by adding at the end 
     the following new section:

     ``Sec. 9359. Cadets: charges and fees for attendance; 
       limitation

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

``9359. Cadets: charges and fees for attendance; limitation.''.

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

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

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

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

     SEC. 559. QUALIFICATIONS OF THE DEAN OF THE FACULTY OF UNITED 
                   STATES AIR FORCE ACADEMY.

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

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

     SEC. 561. SEPARATE MILITARY CAMPAIGN MEDALS TO RECOGNIZE 
                   SERVICE IN OPERATION ENDURING FREEDOM AND 
                   SERVICE IN OPERATION IRAQI FREEDOM.

       (a) Requirement.--The President shall establish a campaign 
     medal specifically to recognize service by members of the 
     uniformed services in Operation Enduring Freedom and a 
     separate campaign medal specifically to recognize service by 
     members of the uniformed services in Operation Iraqi Freedom.
       (b) Eligibility.--Subject to such limitations as may be 
     prescribed by the President, eligibility for a campaign medal 
     established pursuant to subsection (a) shall be set forth in 
     regulations to be prescribed by the Secretary concerned (as 
     defined in section 101 of title 10, United States Code). In 
     the case of regulations prescribed by the Secretaries of the 
     military departments, the regulations shall be subject to 
     approval by the Secretary of Defense and shall be uniform 
     throughout the Department of Defense.

     SEC. 562. ELIGIBILITY OF ALL UNIFORMED SERVICES PERSONNEL FOR 
                   NATIONAL DEFENSE SERVICE MEDAL.

       The President shall revise the criteria for eligibility for 
     the decoration known as the National Defense Service Medal so 
     as to extend such eligibility, with respect to service on or 
     after September 11, 2001, to members of all of the uniformed 
     services.

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

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

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

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

                  Subtitle H--Military Justice Matters

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

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

     SEC. 572. SERVICE TIME NOT LOST WHEN CONFINED IN CONNECTION 
                   WITH TRIAL IF CONFINEMENT EXCUSED AS 
                   UNAVOIDABLE.

       Section 972 of title 10, United States Code, is amended in 
     each of subsections (a)(3) and (b)(3) by inserting after 
     ``the trial'' the following: ``, unless such confinement is 
     excused as unavoidable''.

     SEC. 573. CLARIFICATION OF AUTHORITY OF MILITARY LEGAL 
                   ASSISTANCE COUNSEL TO PROVIDE MILITARY LEGAL 
                   ASSISTANCE WITHOUT REGARD TO LICENSING 
                   REQUIREMENTS.

       Section 1044 of title 10, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(e)(1) Notwithstanding any law regarding the licensure of 
     attorneys, a judge advocate or civilian attorney who is 
     authorized to provide military legal assistance is authorized 
     to provide that assistance in any jurisdiction, subject to 
     such regulations as may be prescribed by the Secretary 
     concerned.
       ``(2) In this subsection, the term `military legal 
     assistance' includes--
       ``(A) legal assistance provided under this section; and
       ``(B) legal assistance contemplated by sections 1044a, 
     1044b, 1044c, and 1044d of this title.''.

           Subtitle I--Management and Administrative Matters

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

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

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

       (a) Minimum Level of Staffing.--Subparagraph (B) of section 
     1501(a)(5) of title 10, United States Code, is amended to 
     read as follows:

[[Page H3303]]

       ``(B)(i) For any fiscal year--
       ``(I) the number of full-time Department of Defense 
     personnel permanently assigned or detailed to the office 
     shall be not less than 46 members of the armed forces and not 
     less than 69 civilian employees of the Department of Defense; 
     and
       ``(II) the number of permanent positions authorized for the 
     office shall be not less than 46 positions for members of the 
     armed forces and not less than 69 positions for civilian 
     employees.
       ``(ii) No reductions below the numbers assigned or 
     authorized under clause (i) may be made unless expressly 
     authorized by law.
       ``(iii) If for any reason the number of military or 
     civilian personnel assigned to the office should fall below 
     the required level under clause (i)(I), the Secretary of 
     Defense shall promptly notify the Committees on Armed 
     Services of the Senate and House of Representatives of the 
     number of personnel so assigned and of the Secretary's plan 
     to restore the staffing levels of the office to at least the 
     required minimums under clause (i). The Secretary shall 
     publish such notice and plan in the Federal Register.''.
       (b) Minimum Level of Funding.--Subparagraph (C) of such 
     section is amended to read as follows:
       ``(C) For any fiscal year, the level of funding allocated 
     to the office shall be not less than $16,000,000 unless a 
     lower level of funding is expressly required by law.''.

     SEC. 583. PERMANENT ID CARDS FOR RETIREE DEPENDENTS AGE 70 
                   AND OLDER.

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

     ``Sec. 1060b. Military ID cards: dependents and survivors of 
       retirees; issuance of permanent ID card after attaining 70 
       years of age

       ``(a) Permanent ID Card After Age 70.--In issuing military 
     ID cards to retiree dependents, the Secretary concerned shall 
     issue a permanent ID card (not subject to renewal) to any 
     such retiree dependent who has attained 70 years of age. Such 
     a permanent ID card shall be issued upon the expiration, 
     after the retiree dependent attains 70 years of age, of any 
     earlier, renewable military ID card or, if earlier, upon the 
     request of such a retiree dependent after attaining age 70.
       ``(b) Definitions.--In this section:
       ``(1) The term `military ID card' means a card or other 
     form of identification used for purposes of demonstrating 
     eligibility for any benefit from the Department of Defense.
       ``(2) The term ``retiree dependent'' means a person who is 
     a dependent of a retired member of the uniformed services, or 
     a survivor of a deceased retired member of the uniformed 
     services, who is eligible for any benefit from the Department 
     of Defense.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``1060b. Military ID cards: dependents and survivors of retirees; 
              issuance of permanent ID card after attaining 70 years of 
              age.''.

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

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

       (a) Authority.--Section 1047 of title 10, United States 
     Code, is amended--
       (1) by inserting ``(b) Certain Enlisted Members.--'' before 
     ``The Secretary''; and
       (2) by inserting after the section heading the following:
       ``(a) Members Traveling In Connection With Medical 
     Evacuation.--The Secretary of the military department 
     concerned may furnish civilian clothing to a member at a cost 
     not to exceed $250, or reimburse a member for the purchase of 
     civilian clothing in an amount not to exceed $250, in the 
     case of a member who--
       ``(1) is medically evacuated for treatment in a medical 
     facility by reason of an illness or injury incurred or 
     aggravated while on active duty; or
       ``(2) after being medically evacuated as described in 
     paragraph (1), is in an authorized travel status from a 
     medical facility to another location approved by the 
     Secretary.''.
       (b) Effective Date.--Subsection (a) of section 1047 of 
     title 10, United States Code, as added by subsection (a) 
     shall take effect on October 1, 2004.

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

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

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

       ``(a) Authority to Accept Donation of Travel Benefits.--
     Subject to subsection (c), the Secretary of Defense may 
     accept from any person or government agency the donation of 
     travel benefits for the purposes of use under subsection (d).
       ``(b) Travel Benefit Defined.--In the section, the term 
     ``travel benefit'' means frequent traveler miles, credits for 
     tickets, or tickets for air or surface transportation issued 
     by an air carrier or a surface carrier, respectively, that 
     serves the public.
       ``(c) Condition on Authority to Accept Donation.--The 
     Secretary may accept a donation of a travel benefit under 
     this section only if the air or surface carrier that is the 
     source of the benefit consents to such donation. Any such 
     donation shall be under such terms and conditions as the 
     surface carrier may specify, and the travel benefit so 
     donated may be used only in accordance with the rules 
     established by the carrier.
       ``(d) Use of Donated Travel Benefits.--A travel benefit 
     accepted under this section may be used only for the purpose 
     of--
       ``(1) facilitating the travel of a member of the armed 
     forces who--
       ``(A) is deployed on active duty away from the permanent 
     duty station of the member; and
       ``(B) is granted, during such deployment, rest and 
     recuperative leave, emergency leave, convalescent leave, or 
     another form of leave authorized for the member; or
       ``(2) facilitating the travel of family members of a member 
     described in paragraph (1) in order to be reunited with the 
     member.
       ``(e) Administration.--The Secretary shall designate a 
     single office in the Department of Defense to carry out this 
     section. That office shall be responsible for developing 
     rules and procedures to facilitate the acceptance and 
     distribution of travel benefit under this section.
       ``(f) Status of Benefits Received.--A member of the armed 
     forces, or a family member of a member of the armed forces, 
     who receives a travel benefit under this section is deemed to 
     recognize no income from the receipt or use of such benefit. 
     A donors of a travel benefit under this section is deemed to 
     obtain no tax benefit from such donation.
       ``(g) Family Member Defined.--In this section, the term 
     `family member' has the meaning given that term in section 
     411h(b)(1) of title 37.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

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

     SEC. 586. LIMITATION ON 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 
     after the end of the one-year period beginning on the date on 
     which a report containing the results of the investigation 
     regarding insurance premium allotment processing, which is 
     underway as of the date of the enactment of this Act, is 
     submitted to the Committee on Armed Services and the 
     Committee on Government Reform of the House of 
     Representatives and the Committee on Armed Services and the 
     Committee on Governmental Affairs of the Senate.

     SEC. 587. ANNUAL IDENTIFICATION OF REASONS FOR DISCHARGES 
                   FROM THE ARMED FORCES DURING PRECEDING FISCAL 
                   YEAR.

       Not later than January 1 each year, the Secretary of 
     Defense shall submit to the Committees on Armed Services of 
     the Senate and House of Representatives a report on 
     discharges from the Army, Navy, Air Force, and Marine Corps 
     during the preceding fiscal year. Each such report shall 
     show, in the aggregate and for each of those Armed Forces, 
     the following:
       (1) The total number of persons discharged during the 
     preceding fiscal year.
       (2) For each separation code, and for each reenlistment 
     eligibility code, used by the Armed Forces, the number of 
     those discharged persons assigned that code.
       (3) For the persons assigned each such separation code, 
     classification of discharges by age, by sex, by race, by 
     military rank or grade, by time in service, by unit (shown at 
     the small unit level), by military occupational specialty (or 
     the equivalent), and by reenlistment eligibility code.

     SEC. 588. AUTHORITY FOR FEDERAL RECOGNITION OF NATIONAL GUARD 
                   COMMISSIONED OFFICERS APPOINTED FROM FORMER 
                   COAST GUARD PERSONNEL.

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

     SEC. 589. STUDY OF BLENDED WING CONCEPT FOR THE AIR FORCE.

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

     SEC. 590. CONTINUATION OF IMPACT AID ASSISTANCE ON BEHALF OF 
                   DEPENDENTS OF CERTAIN MEMBERS DESPITE CHANGE IN 
                   STATUS OF MEMBER.

       (a) Special Rule.--For purposes of computing the amount of 
     a payment for an eligible local educational agency under 
     subsection (a) of section 8003 of the Elementary and 
     Secondary Education Act (20 U.S.C. 7703) for school year 
     2004-2005, the Secretary of Education shall continue to count 
     as a child enrolled in a school of such agency under such 
     subsection any child who--
       (1) would be counted under paragraph (1)(B) of such 
     subsection to determine the number of

[[Page H3304]]

     children who were in average daily attendance in the school; 
     but
       (2) due to the deployment of both parents or legal 
     guardians of the child, the deployment of a parent or legal 
     guardian having sole custody of the child, or the death of a 
     military parent or legal guardian while on active duty (so 
     long as the child resides on Federal property (as defined in 
     section 8013(5) of such Act (7 U.S.C. 7713(5))), is not 
     eligible to be so counted.
       (b) Termination.--The special rule provided under 
     subsection (a) applies only so long as the children covered 
     by such subsection remain in average daily attendance at a 
     school in the same local educational agency they attended 
     before their change in eligibility status.

                       Subtitle J--Other Matters

     SEC. 591. EMPLOYMENT PREFERENCES FOR SPOUSES OF CERTAIN 
                   DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES 
                   SUBJECT TO RELOCATION AGREEMENTS.

       (a) Spouses of Certain Civilian Employees.--(1) Section 
     1784 of title 10, United States Code, is amended by adding at 
     the end the following new subsection:
       ``(h) Inclusion of Spouses of Certain DOD Civilian 
     Employees Subject to Relocation Agreements.--(1) For the 
     purposes of this section, the spouse of a civilian employee 
     described in paragraph (2) shall be considered to be the 
     spouse of a member of the armed forces.
       ``(2) An employee described in this paragraph is a 
     Department of Defense employee who, pursuant to a mandatory 
     mobility agreement executed as a condition of employment or 
     pursuant to another civilian mobility program of the 
     Department of Defense, has had a change of permanent duty 
     assignment (A) that was based on the needs of the Government, 
     and (B) that required a relocation of the employee's 
     residence.''.
       (b) Clerical Amendments.--(1) The heading of such section 
     is amended to read as follows:

     ``Sec. 1784. Employment opportunities: military spouses; 
       certain Department of Defense civilian spouses subject to 
       relocation agreements''.

       (2) The item relating to such section in the table of 
     sections at the beginning of subchapter I of chapter 88 of 
     such title is amended to read as follows:

``1784. Employment opportunities: military spouses; certain Department 
              of Defense civilian spouses subject to relocation 
              agreements.''.
       (c) Effective Date.--Subsection (h) of section 1784 of 
     title 10, United States Code, as added by subsection (a), 
     shall apply only with respect to spouses of employees 
     described in paragraph (2) of that subsection who relocate 
     their residence as a result of a permanent duty assignment 
     specified in that paragraph that is effective on or after the 
     date of the enactment of this Act.

     SEC. 592. REPEAL OF REQUIREMENT TO CONDUCT ELECTRONIC VOTING 
                   DEMONSTRATION PROJECT FOR THE FEDERAL ELECTION 
                   TO BE HELD IN NOVEMBER 2004.

       Section 1604 of the National Defense Authorization Act for 
     Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1277; 42 
     U.S.C. 1977ff note) is repealed.

     SEC. 593. EXAMINATION OF SEXUAL ASSAULT IN THE ARMED FORCES 
                   BY THE DEFENSE TASK FORCE ESTABLISHED TO 
                   EXAMINE SEXUAL HARASSMENT AND VIOLENCE AT THE 
                   MILITARY SERVICE ACADEMIES.

       (a) Extension of Task Force.--(1) The task force in the 
     Department of Defense established by the Secretary of Defense 
     pursuant to section 526 of the National Defense Authorization 
     Act for Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1466) 
     to examine matters relating to sexual harassment and violence 
     at the United States Military Academy and United States Naval 
     Academy shall continue in existence for a period of at least 
     18 months after the date as of which the task force would 
     otherwise be terminated pursuant to subsection (i) of that 
     section.
       (2) Upon the completion of the functions of the task force 
     referred to in paragraph (1) pursuant to section 526 of the 
     National Defense Authorization Act for Fiscal Year 2004, the 
     name of the task force shall be changed to the Defense Task 
     Force on Sexual Assault in the Military Services, and the 
     task force shall then carry out the functions specified in 
     this section. The task force shall not begin to carry out the 
     functions specified in this section until it has completed 
     its functions under such section 526.
       (b) Examination of Matters Relating to Sexual Assault in 
     the Armed Forces.--The task force shall conduct an 
     examination of matters relating to sexual assault in cases in 
     which members of the Armed Forces are either victims or 
     commit acts of sexual assault.
       (c) Recommendations.--The Task Force shall include in its 
     report under subsection (e) recommendations of ways by which 
     civilian officials within the Department of Defense and 
     leadership within the Armed Forces may more effectively 
     address matters relating to sexual assault. That report shall 
     include an assessment of, and recommendations (including any 
     recommendations for changes in law) for measures to improve, 
     with respect to sexual assault, the following:
       (1) Victim care and advocacy programs.
       (2) Effective prevention.
       (3) Collaboration among military investigative 
     organizations with responsibility or jurisdiction.
       (4) Coordination between military and civilian communities, 
     including local support organizations.
       (5) Reporting procedures, data collection, and tracking.
       (6) Oversight of sexual assault programs.
       (7) Military justice issues.
       (8) Other issues identified by the task force relating to 
     sexual assault.
       (d) Methodology.--In carrying out its examination under 
     subsection (b) and in formulating its recommendations under 
     subsection (c), the task force shall consider the findings 
     and recommendations of previous reviews and investigations of 
     sexual assault conducted by the Department of Defense and the 
     Armed Forces.
       (e) Report.--(1) Not later than one year after the 
     initiation of its examination under subsection (b), the task 
     force shall submit to the Secretary of Defense and the 
     Secretaries of the Army, Navy, and Air Force a report on the 
     activities of the task force and on the activities of the 
     Department of Defense and the Armed Forces to respond to 
     sexual assault.
       (2) The report shall include the following:
       (A) A description of any barrier to implementation of 
     improvements as a result of previous efforts to address 
     sexual assault.
       (B) Other areas of concern not previously addressed in 
     prior reports
       (C) The findings and conclusions of the task force.
       (D) Any recommendations for changes to policy and law that 
     the task force considers appropriate.
       (3) Within 90 days after receipt of the report under 
     paragraph (1), the Secretary of Defense shall submit the 
     report, together with the Secretary's evaluation of the 
     report, to the Committees on Armed Services of the Senate and 
     House of Representatives.
       (f) Termination.--The task force shall terminate 90 days 
     after the date on which the report of the task force is 
     submitted to the Committees on Armed Services of the Senate 
     and House of Representatives pursuant to subsection (e)(3).

     SEC. 594. RENEWAL OF PILOT PROGRAM FOR TREATING GED AND HOME 
                   SCHOOL DIPLOMA RECIPIENTS AS HIGH SCHOOL 
                   GRADUATES FOR DETERMINATIONS OF ELIGIBILITY FOR 
                   ENLISTMENT.

       Section 571(e) of the Strom Thurmond National Defense 
     Authorization Act for Fiscal Year 1999 (10 U.S.C. 520 note) 
     is amended to read as follows:
       ``(e) Duration of Pilot Program.--The pilot program shall 
     be in effect during the period beginning on October 1, 2004, 
     and ending on September 30, 2005.''.

     SEC. 595. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT 
                   BENEFIT DEPENDENTS OF MEMBERS OF THE ARMED 
                   FORCES AND DEPARTMENT OF DEFENSE CIVILIAN 
                   EMPLOYEES.

       (a) Continuation of Department of Defense Program for 
     Fiscal Year 2005.--Of the amount authorized to be 
     appropriated pursuant to section 301(5) for operation and 
     maintenance for Defense-wide activities, $50,000,000 shall be 
     available only for the purpose of providing educational 
     agencies assistance to local educational agencies.
       (b) Notification.--Not later than June 30, 2005, the 
     Secretary of Defense shall notify each local educational 
     agency that is eligible for educational agencies assistance 
     for fiscal year 2005 of--
       (1) that agency's eligibility for the assistance; and
       (2) the amount of the assistance for which that agency is 
     eligible.
       (c) Disbursement of Funds.--The Secretary of Defense shall 
     disburse funds made available under subsection (a) not later 
     than 30 days after the date on which notification to the 
     eligible local educational agencies is provided pursuant to 
     subsection (b).
       (d) Definitions.--In this section:
       (1) The term ``educational agencies assistance'' means 
     assistance authorized under section 386(b) of the National 
     Defense Authorization Act for Fiscal Year 1993 (Public Law 
     102-484; 20 U.S.C. 7703 note).
       (2) The term ``local educational agency'' has the meaning 
     given that term in section 8013(9) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7713(9)).

     SEC. 596. SENIOR RESERVE OFFICER TRAINING CORPS AND RECRUITER 
                   ACCESS AT INSTITUTIONS OF HIGHER EDUCATION.

       (a) Certification of Compliance With ROTC Access 
     Provisions.--Subsection (a) of section 983 of title 10, 
     United States Code, is amended--
       (1) by inserting ``(1)'' before ``No funds'';
       (2) by striking ``prevents--'' and inserting ``prevents, 
     either (or both) of the following:'';
       (3) by striking ``(1) the'' and inserting ``(A) The'';
       (4) by striking ``; or'' and inserting a period;
       (5) by striking ``(2) a'' and inserting ``(B) A''; and
       (6) by adding at the end the following:
       ``(2)(A) Not later than 180 days after the date of the 
     enactment of the National Defense Authorization Act for 
     Fiscal Year 2005 and annually thereafter, the Secretary of 
     Defense shall request from each institution of higher 
     education that has students participating in a Senior Reserve 
     Officer Training Corps program during the then-current 
     academic year of that institution a certification that such 
     institution, during the next academic year of the 
     institution, will--
       ``(i) permit the Secretary of each military department to 
     maintain a unit of the Senior Officer Training Corps (in 
     accordance with subsection (a)) at that institution (or any 
     subelement of that institution), should such Secretary elect 
     to maintain such a unit; and
       ``(ii) if the Secretary of the military department 
     concerned elects not to establish or maintain a unit of the 
     Senior Reserve Officer Training Corps at that institution, 
     permit a student of

[[Page H3305]]

     that institution (or any subelement of that institution) to 
     enroll in a unit of the Senior Reserve Officer Training Corps 
     at another institution of higher education.
       ``(B) Any certification under subparagraph (A) shall be 
     made by the president of the institution (or equivalent 
     highest ranking administrative official) and shall be 
     submitted to the Secretary of Defense no later than 90 days 
     after receipt of the request from the Secretary.
       ``(C) In the case of any institution from which a 
     certification is requested under subparagraph (A), if the 
     Secretary of Defense does not receive a certification in 
     accordance with subparagraph (B), or if the certification 
     does not state that the university will comply with both 
     clauses (i) and (ii) of subparagraph (A) during its next 
     academic year, the Secretary shall make a determination under 
     paragraph (1) as to whether the institution has a policy or 
     practice described in that paragraph.''.
       (b) Equal Treatment of Military Recruiters With Other 
     Recruiters.--Subsection (b)(1) of such section is amended--
       (1) by striking ``entry to campuses'' and inserting 
     ``access to campuses''; and
       (2) by inserting before the semicolon at the end the 
     following: ``in a manner that is at least equal in quality 
     and scope to the access to campuses and to students that is 
     provided to any other employer''.
       (c) Prohibition of Funding for Post-secondary Schools That 
     Prevent ROTC Access or Military Recruiting.--(1) Subsection 
     (d) of such section is amended--
       (A) in paragraph (1)--
       (i) by striking ``limitation established in subsection (a) 
     applies'' and inserting ``limitations established in 
     subsections (a) and (b) apply'';
       (ii) in subparagraph (B), by inserting ``for any department 
     or agency for which regular appropriations are made'' after 
     ``made available''; and
       (iii) by adding at the end the following new subparagraphs:
       ``(C) Any funds made available for the Department of 
     Homeland Security.
       ``(D) Any funds made available for the National Nuclear 
     Security Administration of the Department of Energy.
       ``(E) Any funds made available for the Department of 
     Transportation.
       ``(F) Any funds made available for the Central Intelligence 
     Agency.''; and
       (B) by striking paragraph (2).
       (2)(A) Subsection (b) of such section is amended by 
     striking ``subsection (d)(2)'' and inserting ``subsection 
     (d)(1)''.
       (B) Subsection (e) of such section is amended by inserting 
     ``, to the head of each other department and agency the funds 
     of which are subject to the determination,'' after 
     ``Secretary of Education''.
       (d) Codification and Extension of Exclusion Of Amounts to 
     Cover Individual Payments.--Subsection (d) of such section, 
     as amended by subsection (c)(1), is further amended--
       (1) by striking ``The'' after ``(1)'' and inserting 
     ``Except as provided in paragraph (2), the''; and
       (2) by adding at the end the following new paragraph:
       ``(2) Any Federal funding specified in paragraph (1) that 
     is provided to an institution of higher education, or to an 
     individual, to be available solely for student financial 
     assistance, related administrative costs, or costs associated 
     with attendance, may be used for the purpose for which the 
     funding is provided.''.
       (e) Conforming Amendments.--Subsections (a) and (b) of such 
     section are amended by striking ``(including a grant of funds 
     to be available for student aid)''.
       (f) Conforming Repeal of Codified Provision.--Section 8120 
     of the Department of Defense Appropriations Act, 2000 (Public 
     Law 106-79; 10 U.S.C. 983 note), is repealed
       (g) Effective Date.--The amendments made by this section 
     shall apply with respect to funds appropriated for fiscal 
     year 2005 and thereafter.

     SEC. 597. REPORTS ON TRANSFORMATION MILESTONES.

       (a) Military to Civilian Conversions.--Not later than 
     January 31, 2005, the Secretary of Defense shall submit to 
     the Committees on Armed Services of the Senate and House of 
     Representatives a report providing information as to the 
     number of positions in the Department of Defense converted 
     during the previous fiscal year from performance by military 
     personnel to performance by civilian personnel. The report 
     shall include--
       (1) a description of the skill set of the positions 
     converted;
       (2) specification of the total cost of such conversions and 
     how that cost is being paid for; and
       (3) the number of positions in the Department of Defense 
     projected for such conversion during the period from March 1, 
     2005, to January 31, 2006.
       (b) Civilian Skills Corps Feasibility Study.--(1) The 
     Secretary of Defense shall conduct an Armed Forces-wide study 
     of how a system to embed certain civilian expertise skill 
     sets within the military on a temporary basis could be 
     implemented. The study shall include consideration of all 
     skills sets in which, as determined by the Secretary of 
     Defense, there is a significant shortfall within the Armed 
     Forces or which are high value, but of uncertain need. The 
     study shall examine the feasibility of implementing a 
     personnel system that expands the capability of the Armed 
     Forces to rapidly access civilian volunteers with needed 
     expertise outside of the reserve components.
       (2) The Secretary shall submit to the congressional defense 
     committees a report on the results of the study under 
     paragraph (1) not later than March 31, 2005.
       (c) Military-to-Military Conversions.--Not later than March 
     31 of each of 2005, 2006, and 2007, the Secretary of Defense 
     shall submit to the congressional defense committees a report 
     on the milestones within the multiyear transformation for 
     internal military-to-military transitions. Each such report 
     shall include--
       (1) the number of units and personnel transferred and 
     retrained within the previous fiscal year and what their new 
     unit designations are; and
       (2) a description of the transformation goals for the 
     upcoming fiscal year and whether the previous years goals 
     were met and why or why not.
       (d) Transformation to Brigade Structure for the Army.--No 
     later than March 31 of each year, the Secretary of Defense 
     shall submit to the congressional defense committees a report 
     on the status of the internal transformation of the Army from 
     a division-orientated system to a brigade-orientated one. 
     Such a report shall be submitted for each year until the 
     Secretary of the Army certifies to those committees that the 
     transformation of the Army to brigade level units has been 
     completed.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

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

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

     SEC. 602. AUTHORITY TO PROVIDE FAMILY SEPARATION BASIC 
                   ALLOWANCE FOR HOUSING.

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

     SEC. 603. GEOGRAPHIC BASIS FOR BASIC ALLOWANCE FOR HOUSING 
                   DURING SHORT CHANGES OF STATION FOR 
                   PROFESSIONAL MILITARY EDUCATION OR TRAINING.

       Section 403(d)(3) of title 37, United States Code, is 
     amended by adding at the end the following new subparagraph:
       ``(C) If the member is reassigned for a permanent change of 
     station or permanent change of assignment from a duty station 
     in the continental United States to another duty station in 
     the continental United States for a period of not more than 
     one year for the purpose of participating in professional 
     military education or training classes, the Secretary 
     concerned may base the amount of the basic allowance for 
     housing for the member on the duty station to which the 
     member is reassigned or the area in which the dependents 
     reside, whichever the Secretary concerned determines to be 
     most equitable.''.

     SEC. 604. IMMEDIATE LUMP-SUM REIMBURSEMENT FOR UNUSUAL 
                   NONRECURRING EXPENSES INCURRED BY MEMBERS 
                   SERVING OUTSIDE CONTINENTAL UNITED STATES.

       (a) Eligibility for Reimbursement.--Section 405 of title 
     37, United States Code, is amended by adding at the end the 
     following new subsection:
       ``(d) Lump-Sum Reimbursement for Nonrecurring Expenses.--In 
     addition to providing a per diem under this section, the 
     Secretary concerned may reimburse a member for actual 
     expenses of a nonrecurring nature that the member incurs 
     incident to serving on duty outside of the continental United 
     States. The types of expenses for which reimbursement may be 
     provided under this paragraph shall be limited to those 
     expenses directly related to the conditions or location of 
     the duty outside of the continental United States and either 
     of a nature or a magnitude not normally incurred by members 
     assigned to duty inside the continental United States. In 
     determining the per diem to be paid under this section, the 
     Secretary concerned shall not consider expenses for which 
     reimbursement is provided under this paragraph.''.
       (b) Use of Defined Term Continental United States.--(1) 
     Subsection (a) of such section is amended by striking 
     ``outside of the United States or in Hawaii or Alaska'' and 
     inserting ``outside of the continental United States''.
       (2) The heading of such section is amended to read as 
     follows:

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

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

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

     SEC. 605. INCOME REPLACEMENT PAYMENTS FOR RESERVES 
                   EXPERIENCING EXTENDED AND FREQUENT MOBILIZATION 
                   FOR ACTIVE DUTY SERVICE.

       (a) In General.--(1) Chapter 19 of title 37, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 910. Replacement of lost income: involuntarily 
       mobilized reserve component members subject to extended and 
       frequent active duty service

       ``(a) Payment Required.--The Secretary concerned shall pay 
     to an eligible member of a reserve component of the armed 
     forces an amount

[[Page H3306]]

     equal to the monthly active-duty income differential of the 
     member, as determined by the Secretary. The payments shall be 
     made on a monthly basis.
       ``(b) Eligibility.--Subject to subsection (c), a reserve 
     component member is entitled to a payment under this section 
     for any full month of active duty of the member, while on 
     active duty under an involuntary mobilization order, 
     following the date on which the member--
       ``(1) completes 12 continuous months of service on active 
     duty under such an order;
       ``(2) completes 18 months on active duty during the 
     previous 60 months under such an order; or
       ``(3) is involuntarily mobilized for service on active duty 
     six months or less following the member's separation from the 
     member's previous period of active duty.
       ``(c) Minimum and Maximum Payment Amounts.--(1) A payment 
     under this section shall be made to a member for a month only 
     if the amount of the monthly active-duty income differential 
     for the month is greater than $50.
       ``(2) Notwithstanding the amount determined under 
     subsection (d) for a member for a month, the monthly payment 
     to a member under this section may not exceed $3,000.
       ``(d) Monthly Active-Duty Income Differential.--For 
     purposes of this section, the monthly active-duty income 
     differential of a member is the difference between--
       ``(1) the average monthly civilian income of the member; 
     and
       ``(2) the member's total monthly military compensation.
       ``(e) Definitions.--In this section:
       ``(1) The term `average monthly civilian income', with 
     respect to a member of a reserve component, means the amount, 
     determined by the Secretary concerned, of the earned income 
     of the member for either the 12 months preceding the member's 
     mobilization or the 12 months covered by the member's most 
     recent Federal income tax filing, divided by 12.
       ``(2) The term `total monthly military compensation' means 
     the amount, computed on a monthly basis, of the sum of--
       ``(A) the amount of the regular military compensation (RMC) 
     of the member; and
       ``(B) any amount of special pay or incentive pay and any 
     allowance (other than an allowance included in regular 
     military compensation) that is paid to the member on a 
     monthly basis.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``910. Replacement of lost income: involuntarily mobilized reserve 
              component members subject to extended and frequent active 
              duty service.''.
       (b) Effective Date.--Section 910 of title 37, United States 
     Code, as added by subsection (a), shall apply for months 
     after December 2004.

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

       (a) Advancement of Basic Pay.--(1) Chapter 3 of title 37, 
     United States Code, is amended by adding at the end the 
     following new section:

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

       ``(a) Eligibility; Amount Advanced.--(1) If a member of the 
     armed forces is assigned to duty in an area for which special 
     pay under section 310 of this title is available and the 
     assignment is pursuant to orders specifying an assignment of 
     one year or more (or the assignment is otherwise extended 
     beyond one year), the member may request, during the period 
     of the assignment, the advanced payment of not more than 
     three months of the basic pay of the member.
       ``(2) A request by a member described in paragraph (1) for 
     the advanced payment of a single month of basic pay shall be 
     granted. The Secretary concerned may grant a request for a 
     second or third month of advanced basic pay during the 
     assignment for the member upon a showing of financial 
     hardship.
       ``(b) Recoupment of Advanced Pay.--The Secretary concerned 
     shall recoup an advance made on the basic pay of a member 
     under this section in equal installments over a one-year 
     period beginning as provided in subsection (c). If the member 
     is serving on active duty for any month during the recoupment 
     period, the amount of the installment for the month shall be 
     deducted from the basic pay of the member for that month. The 
     estate of a deceased member shall not be required to repay an 
     advance made to the member under this section.
       ``(c) Commencement of Recoupment.--(1) Except as provided 
     in paragraph (2), the recoupment of basic pay advanced to a 
     member under this section shall commence beginning with the 
     first month that begins after the end of the assignment of 
     the member to duty in an area for which special pay under 
     section 310 of this title is available
       ``(2) A member of a reserve component who receives an 
     advancement of basic pay under this section shall commence 
     repayment of the advance beginning with the first month that 
     begins after the the advanced pay is received.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``212. Advancement of basic pay: members deployed in combat zones for 
              more than one year.''.
       (b) Effective Date.--Section 212 of title 37, United States 
     Code, as added by subsection (a), shall take effect October 
     1, 2004.

           Subtitle B--Bonuses and Special and Incentive Pays

     SEC. 611. ONE-YEAR EXTENSION OF BONUS AND SPECIAL PAY 
                   AUTHORITIES.

       (a) Nurse Officer Candidate Accession Program.--Section 
     2130a(a)(1) of title 10, United States Code, is amended by 
     striking ``December 31, 2004'' and inserting ``December 31, 
     2005''.
       (b) Repayment of Education Loans for Certain Health 
     Professionals Who Serve in the Selected Reserve.--Section 
     16302(d) of such title is amended by striking ``January 1, 
     2005'' and inserting ``January 1, 2006''.
       (c) Aviation Officer Retention Bonus.--Section 301b(a) of 
     title 37, United States Code, is amended by striking 
     ``December 31, 2004'' and inserting ``December 31, 2005''.
       (d) Accession Bonus for Registered Nurses.--Section 
     302d(a)(1) of such title is amended by striking ``December 
     31, 2004'' and inserting ``December 31, 2005''.
       (e) Incentive Special Pay for Nurse Anesthetists.--Section 
     302e(a)(1) of such title is amended by striking ``December 
     31, 2004'' and inserting ``December 31, 2005''.
       (f) Accession Bonus for Dental Officers.--Section 
     302h(a)(1) of such title is amended by striking ``December 
     31, 2004'' and inserting ``December 31, 2005''.
       (g) Accession Bonus for Pharmacy Officers.--Section 302j(a) 
     of such title is amended by striking ``the date of the 
     enactment of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 and ending on 
     September 30, 2004'' and inserting ``October 30, 2000, and 
     ending on December 31, 2005''.
       (h) Reenlistment Bonus for Active and Reserve Members.--
     Section 308(g) of such title is amended by striking 
     ``December 31, 2004'' and inserting ``December 31, 2005''.
       (i) Enlistment Bonus for Active and Reserve Members.--
     Section 309(e) of such title is amended by striking 
     ``December 31, 2004'' and inserting ``December 31, 2005''.
       (j) Special Pay for Nuclear-Qualified Officers Extending 
     Period of Active Service.--Section 312(e) of such title is 
     amended by striking ``December 31, 2004'' and inserting 
     ``December 31, 2005''.
       (k) Nuclear Career Accession Bonus.--Section 312b(c) of 
     such title is amended by striking ``December 31, 2004'' and 
     inserting ``December 31, 2005''.
       (l) Nuclear Career Annual Incentive Bonus.--Section 312c(d) 
     of such title is amended by striking ``December 31, 2004'' 
     and inserting ``December 31, 2005''.
       (m) Retention Bonus for Members Who Have Critical Military 
     Skills or Meet Other Criteria.--Section 323(i) of such title 
     is amended by striking ``December 31, 2004'' and inserting 
     ``December 31, 2005''.
       (n) Accession or Affiliation Bonus for New Officers in 
     Critical Skills.--Section 324(g) of such title is amended by 
     striking ``December 31, 2004'' and inserting ``December 31, 
     2005''.

     SEC. 612. REDUCTION IN REQUIRED SERVICE COMMITMENT TO RECEIVE 
                   ACCESSION BONUS FOR REGISTERED NURSES.

       (a) Reduction.--Section 302d(a)(1) of title 37, United 
     States Code, is amended by striking ``four years'' and 
     inserting ``three years''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect October 1, 2004, and apply with respect to 
     written agreements referred to in section 302d(a)(1) of title 
     37, United States Code, entered into on or after that date.

     SEC. 613. INCREASE IN MAXIMUM MONTHLY RATE AUTHORIZED FOR 
                   HARDSHIP DUTY PAY.

       (a) Increase.--Section 305(a) of title 37, United States 
     Code, is amended by striking ``$300'' and inserting ``$750''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect October 1, 2004.

     SEC. 614. TERMINATION OF ASSIGNMENT INCENTIVE PAY FOR MEMBERS 
                   PLACED ON TERMINAL LEAVE.

       (a) Termination.--Subsection (e) of section 307a of title 
     37, United States Code, is amended to read as follows:
       ``(e) Status not Affected by Temporary Duty or Leave.--The 
     service of a member in an assignment referred to in 
     subsection (a) shall not be considered discontinued during 
     any period that the member is not performing service in the 
     assignment by reason of--
       ``(1) the performance by the member of temporary duty 
     pursuant to orders; or
       ``(2) the absence of the member for authorized leave, 
     unless the member is placed on terminal leave and will not be 
     returning to the assignment.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to agreements under section 307a(b) 
     of title 37, United States Code, entered into on or after the 
     date of the enactment of this Act.

     SEC. 615. CONSOLIDATION OF REENLISTMENT AND ENLISTMENT BONUS 
                   AUTHORITIES FOR REGULAR AND RESERVE COMPONENTS.

       (a) Consolidated Reenlistment Bonus Authority; Eligibility 
     Criteria.--(1) Paragraph (1) of subsection (a) of section 308 
     of title 37, United States Code, is amended--
       (A) by striking the matter preceding subparagraph (A) and 
     inserting ``The Secretary concerned may pay a bonus under 
     paragraph (2) to a member of the armed forces serving in a 
     regular component or reserve component of the armed force if 
     the member--'';
       (B) by striking subparagraph (A) and inserting the 
     following new subparagraph:
       ``(A) has completed at least 17 months of service in a 
     regular or reserve component of the armed forces, but not 
     more than 18 years of total military service;''; and
       (C) by striking subparagraph (D) and all that follows 
     through the period at the end of such paragraph and inserting 
     the following:
       ``(D) reenlists or voluntarily extends the member's 
     enlistment for a period of at least three

[[Page H3307]]

     years in a regular component or reserve component of the 
     armed forces.''.
       (2) Paragraph (3) of such subsection is amended by striking 
     ``16 years'' and inserting ``20 years''.
       (3) Paragraph (5) of such subsection is amended to read as 
     follows:
       ``(5) The Secretary of Defense, and the Secretary of 
     Homeland Security with respect to the Coast Guard when it is 
     not operating as a service in the Navy, may waive all or part 
     of the eligibility requirements specified in paragraph (1) in 
     time of war or national emergency.''.
       (4) Subsection (b) of such section is amended--
       (A) by inserting ``(1)'' after ``(b)''; and
       (B) by adding at the end the following new paragraph:
       ``(2) Notwithstanding the schedule established for making 
     partial bonus payments under paragraph (1), a member of a 
     reserve component 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.''.
       (5) Subsection (g) of such section is amended by striking 
     ``an active-duty reenlistment'' and inserting ``a 
     reenlistment''.
       (b) Consolidated Enlistment Bonus Authority.--Section 
     309(a) of such title is amended--
       (1) by striking the first sentence and inserting the 
     following: ``(1) The Secretary concerned may pay a bonus this 
     section to a person who enlists in a regular component or 
     reserve component of the armed forces for a period of at 
     least two years.''; and
       (2) by inserting after the first sentence, as so amended, 
     the following new paragraph:
       ``(2) The amount of a bonus under this section may not 
     exceed $20,000.''.
       (c) Repeal of Separate Reenlistment and Enlistment Bonus 
     Authority for Reserve Components.--(1) Sections 308b, 308c, 
     308g, 308h, and 308i of such title are repealed.
       (2) The table of sections at the beginning of chapter 5 of 
     such title is amended by striking the items relating to 
     sections 308b, 308c, 308h, and 308i.
       (d) Effective Date.--(1) Except as provided by paragraphs 
     (2) and (3), the amendments made by this section shall take 
     effect October 1, 2004, and the amendments made by 
     subsections (a) and (b) shall apply to reenlistments, the 
     voluntary extension of enlistments, and enlistments referred 
     to in section 308(a)(1) or 309(a) of title 37, United States 
     Code, entered into on or after that date.
       (2) The amendments made by subsection (c) shall take effect 
     December 31, 2004, except that the repeal of section 308g of 
     title 37, United States Code, shall take effect on the date 
     of the enactment of this Act.
       (3) In the case of a member of the Armed Forces who, on or 
     before December 31, 2004, reenlisted, voluntarily extended 
     the enlistment of the member, or enlisted in a reserve 
     component of the Armed Forces, section 308b, 308c, 308h, or 
     308i of title 37, United States Code, whichever applies to 
     the member, and as in effect on December 31, 2004, shall 
     continue to apply with respect to the payment of a bonus 
     under such section to the member.
       (e) Limitation on Fiscal Year 2005 Obligations.--During 
     fiscal year 2005, obligations incurred under sections 308 and 
     309 of title 37, United States Code, to provide reenlistment 
     and enlistment bonuses to members of the uniformed services 
     using the expanded authority provided by the amendments made 
     by subsections (a) and (b) may not exceed $20,000,000. The 
     bonus authority available under such sections shall not be 
     considered to be an expanded authority to the extent that the 
     authority was available under a provision of law specified in 
     subsection (c), before the repeal of the provision by such 
     subsection.

     SEC. 616. REVISION OF AUTHORITY TO PROVIDE FOREIGN LANGUAGE 
                   PROFICIENCY PAY.

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

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

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

``316. Special pay: bonus for members with foreign language 
              proficiency.''.
       (b) Conforming Amendments.--(1) Section 316a of title 37, 
     United States Code, is repealed.
       (2) The table of sections at the beginning of chapter 5 of 
     such title is amended by striking the item relating to 
     section 316a.

     SEC. 617. ELIGIBILITY OF RESERVE COMPONENT MEMBERS FOR 
                   CRITICAL SKILLS RETENTION BONUS AND EXPANSION 
                   OF AUTHORITY TO PROVIDE BONUS.

       (a) Inclusion of Reserve Component Members.--Section 323 of 
     title 37, United States Code, is amended--
       (1) in subsection (a)--
       (A) in the matter preceding paragraph (1), by striking 
     ``who is serving on active duty and'' by inserting ``who is 
     serving on active duty in a regular component or in an active 
     status in a reserve component and who''; and
       (B) in paragraph (1), by inserting ``, or remain in an 
     active status in a reserve component,'' after ``remain on 
     active duty'';
       (2) in subsection (e)(2), by inserting ``or service in a 
     reserve component'' after ``period of active duty''; and
       (3) in subsection (g), by striking ``active duty'' and 
     inserting ``service''.
       (b) Inclusion of Members Serving Pursuant to Indefinite 
     Reenlistment.--Subsection (a) of such section is further 
     amended--
       (1) by striking ``or'' at the end of paragraph (1);
       (2) in paragraph (2)--
       (A) by inserting ``other than an enlisted member referred 
     to in paragraph (3),'' after ``enlisted member,''; and
       (B) by striking the period at the end and inserting ``; 
     or''; and
       (3) by adding at the end the following new paragraph:
       ``(3) in the case of an enlisted member serving pursuant to 
     an indefinite reenlistment, the member executes a written 
     agreement to remain on active duty, or remain in an active 
     status in a reserve component, for a period of at least one 
     year.''.

[[Page H3308]]

       (c) Additional Criteria for Bonus.--Such section is further 
     amended--
       (1) in subsection (a), by striking ``designated critical 
     military skill'' and inserting ``critical military skill 
     designated under subsection (b) or satisfies such other 
     criteria for the bonus established under such subsection'';
       (2) in subsection (b)--
       (A) by striking ``Designation of Critical Skills.--'' and 
     inserting ``Basis for Bonus.--(1)''; and
       (B) by adding at the end the following new paragraph:
       ``(2) The Secretary of Defense, and the Secretary of 
     Homeland Security with respect to the Coast Guard when it is 
     not operating as a service in the Navy, may establish such 
     other criteria as the Secretary considers appropriate under 
     which a retention bonus will be provided to an officer or 
     enlisted member of the armed forces under subsection (a).''; 
     and
       (3) in subsection (h)(1), by striking ``qualified in the 
     critical military skills for which the bonuses were offered'' 
     and inserting ``who were offered the bonuses''.
       (d) Repeal of Separate Special and Incentive Pay 
     Authorities for Reserve Components.--(1) Sections 302g, 308d, 
     and 308e of such title are repealed.
       (2) In the case of a member of the Armed Forces who, on or 
     before December 31, 2004, entered into a written agreement 
     under section 302g or 308e of title 37, United States Code, 
     such section 302g or 308e, whichever applies to the member, 
     and as in effect on December 31, 2004, shall continue to 
     apply after that date with respect to the payment of special 
     pay under such section to the member during the term of the 
     agreement.
       (e) Clerical Amendments.--(1) The heading of section 323 of 
     such title is amended to read as follows:

     ``Sec. 323 Special pay: retention incentives for members 
       qualified in a critical military skill or who satisfy other 
       eligibility criteria''.

       (2) The table of sections at the beginning of chapter 5 of 
     such title is amended--
       (A) by striking the items relating to sections 302g, 308d, 
     and 308e; and
       (B) by striking the item relating to section 323 and 
     inserting the following new item:

``323. Special pay: retention incentives for members qualified in a 
              critical military skill or who satisfy other eligibility 
              criteria.''.
       (f) Effective Date.--(1) Except as provided by paragraph 
     (2), the amendments made by this section shall take effect 
     October 1, 2004, and the amendments made by subsections (a), 
     (b), and (c) shall apply to agreements, reenlistments, and 
     the voluntary extension of enlistments referred to in section 
     323(a) of title 37, United States Code, entered into on or 
     after that date.
       (2) The amendments made by subsections (d)(1) and (e)(2)(A) 
     shall take effect December 31, 2004.
       (g) Limitation on Fiscal Year 2005 Obligations.--During 
     fiscal year 2005, obligations incurred under section 323 of 
     title 37, United States Code, to provide retention bonuses to 
     members of the uniformed services using the expanded 
     authority provided by the amendments made by subsections (a), 
     (b), and (c) may not exceed $10,000,000. The bonus authority 
     available under such section shall not be considered to be an 
     expanded authority to the extent that the authority was 
     available under a provision of law specified in subsection 
     (d), before the repeal of the provision by such subsection.

     SEC. 618. ELIGIBILITY OF NEW RESERVE COMPONENT OFFICERS FOR 
                   ACCESSION OR AFFILIATION BONUS FOR OFFICERS IN 
                   CRITICAL SKILLS.

       (a) Eligibility.--Subsection (a) of section 324 of title 
     37, United States Code, is amended to read as follows:
       ``(a) Bonus Authorized.--(1) The Secretary concerned may 
     pay a bonus under this section--
       ``(A) to a person who executes a written agreement to 
     accept a commission or an appointment as an officer of armed 
     forces and serve on active duty in a designated critical 
     officer skill or serve in a reserve component of an armed 
     force in a designated critical officer skill; or
       ``(B) to an officer of an armed force, including a warrant 
     officer, but excluding an officer who has previously served 
     in the Selected Reserve or an officer who is entitled to 
     retired pay, who executes a written agreement to serve in a 
     reserve component of an armed force in a designated critical 
     officer skill after being discharged or released from active 
     duty under honorable conditions, once the officer affiliates 
     with a unit or position in the reserve component.
       ``(2) The written agreement under paragraph (1) between the 
     Secretary concerned and a person or officer shall specify the 
     period during which the person or officer will be required to 
     serve in a designated critical officer skill to maintain 
     entitlement to the bonus payment.''.
       (b) Amount of Bonus.--Subsection (c) of such section is 
     amended to read as follows:
       ``(c) Amount of Bonus.--The Secretary concerned shall 
     determine the amount of a bonus to be paid under subsection 
     (a), except that a person may not receive a total of more 
     than $60,000 in payments under this section''.
       (c) Conforming Amendments.--Such section is further 
     amended--
       (1) in subsection (d), by striking ``accession'' both 
     places it appears;
       (2) in subsection (e)--
       (A) in the subsection heading, by striking ``Accession''; 
     and
       (B) by striking ``an accession bonus'' and inserting ``a 
     bonus''; and
       (3) in subsection (f), by striking ``active duty'' and 
     ``accession'' each place it appears.
       (d) Clerical Amendments.--(1) The heading of section 324 of 
     such title is amended to read as follows:

     ``Sec. 324. Special pay: accession or affiliation bonus for 
       officers in designated critical skills''.

       (2) The table of sections at the beginning of chapter 5 of 
     such title is amended by striking the item relating to 
     section 324 and inserting the following new item:

``324. Special pay: accession or affiliation bonus for officers in 
              designated critical skills.''.
       (e) Effective Date.--The amendments made by this section 
     shall take effect October 1, 2004, and apply to agreements 
     referred to in section 324(a) of title 37, United States Code 
     entered into on or after that date.
       (f) Limitation on Fiscal Year 2005 Obligations.--During 
     fiscal year 2005, obligations incurred under section 324 of 
     title 37, United States Code, as amended by subsections (a) 
     and (b), to provide accession and affilliation bonuses to 
     members of the Armed Forces not previously eligible for such 
     a bonus under such section may not exceed $5,000,000.

     SEC. 619. ELIGIBILITY OF RESERVE COMPONENT MEMBERS FOR 
                   INCENTIVE BONUS FOR CONVERSION TO MILITARY 
                   OCCUPATIONAL SPECIALTY TO EASE PERSONNEL 
                   SHORTAGE.

       (a) Eligibility.--Section 326 of title 37, United States 
     Code, is amended--
       (1) in subsection (a), by inserting ``of a regular or 
     reserve component'' after ``an eligible member'';
       (2) in subsection (b)--
       (A) by striking ``if--'' and all that follows through ``at 
     the time'' and inserting ``if, at the time''; and
       (B) by redesignating subparagraphs (A) and (B) as 
     paragraphs (1) and (2), respectively; and
       (3) in subsection (c)(2), by inserting ``regular or reserve 
     component of the'' after ``chief personnel officer of the''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect October 1, 2004, and apply to agreements 
     referred to in section 326(a) of title 37, United States 
     Code, entered into on or after that date.
       (c) Limitation on Fiscal Year 2005 Obligations.--During 
     fiscal year 2005, obligations incurred under section 326 of 
     title 37, United States Code, as amended by subsection (a), 
     to provide incentive bonuses to members of a reserve 
     component of the Armed Forces may not exceed $3,000,000.

     SEC. 620. AVAILABILITY OF HAZARDOUS DUTY INCENTIVE PAY FOR 
                   MILITARY FIREFIGHTERS.

       (a) Additional Type of Duty Entitled to Pay.--Subsection 
     (a) of section 301 of title 37, United States Code, is 
     amended--
       (1) by striking ``or'' at the end of paragraph (12);
       (2) by redesignating paragraph (13) as paragraph (14); and
       (3) by inserting after paragraph (12) the following new 
     paragraph:
       ``(13) involving regular participating as a firefighting 
     crew member, as determined by the Secretary concerned; 
     or''.''.
       (b) Monthly Amount of Pay.--Subsection (c) of such section 
     is amended--
       (1) in paragraph (1), by striking ``(12)'' and inserting 
     ``(13)''; and
       (2) in paragraph (2)(A), by striking ``(13)'' and inserting 
     ``(14)''.
       (c) Effective Date.--The amendments made by subsection (a) 
     and (b) shall take effect October 1, 2004.

            Subtitle C--Travel and Transportation Allowances

     SEC. 631. EXPANSION OF TRAVEL AND TRANSPORTATION ALLOWANCES 
                   TO ASSIST SURVIVORS OF A DECEASED MEMBER TO 
                   ATTEND BURIAL CEREMONY OF THE MEMBER.

       (a) Authorized Travel Locations.--Subsection (b) of section 
     411f of title 37, United States Code, is amended to read as 
     follows:
       ``(b) Authorized Locations for Travel; Duration and 
     Rates.--(1) The allowances under subsection (a) may be 
     provided for travel and transportation by eligible relatives 
     of the deceased member to the place selected pursuant to 
     section 1482(a)(8) of title 10 for disposition of the remains 
     of the deceased member.
       ``(2) The allowances may not exceed the rates for two days 
     and the time necessary for the travel.''.
       (b) Eligible Relatives.--Subsection (c)(1)(C) of such 
     section is amended by striking ``If no person described in 
     subparagraph (A) or (B) is provided travel and transportation 
     allowances under subsection (a)(1), the'' and inserting 
     ``The''.
       (c) Limitation on Fiscal Year 2005 Obligations.--During 
     fiscal year 2005, obligations incurred under section 411f of 
     title 37, United States Code, as amended by subsections (a) 
     and (b), to provide travel and transportation allowances, not 
     previously available under such section, to survivors of 
     deceased members of the uniformed services, and to provide 
     such allowances to persons not previously eligible for such 
     allowances, may not exceed $2,000,000.

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

       (a) Removal of Limitation on Number of Family Members.--
     Subsection (a)(1) of section 411h of title 37, United States 
     Code, is amended by striking ``not more than two family 
     members'' and inserting ``a family member''.
       (b) Family Members Described.--Subsection (b)(1) of such 
     section is amended--
       (1) by striking ``and'' at the end of subparagraph (C);
       (2) by striking the period at the end of subparagraph (D) 
     and inserting ``; and''; and
       (3) by adding at the end the following new subparagraph:

[[Page H3309]]

       ``(E) other persons approved by the Secretary concerned.''.
       (c) Availability of Per Diem.--Such section is further 
     amended--
       (1) in subsection (a)(1), by inserting ``travel and'' 
     before ``transportation''; and
       (2) in subsection (c)--
       (A) by inserting ``(1)'' after ``(c)'' ; and
       (B) by adding at the end the following new paragraph:
       ``(2) In addition to the transportation authorized by 
     subsection (a), the Secretary concerned may provide a per 
     diem allowance or reimbursement for the actual and necessary 
     expenses of the travel, or a combination thereof, but not to 
     exceed the rates established under section 404(d) of this 
     title.''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2004, and apply to 
     transportation described in section 411h of title 37, United 
     States Code, provided on or after that date.
       (e) Limitation on Fiscal Year 2005 Obligations.--During 
     fiscal year 2005, obligations incurred under section 411h of 
     title 37, United States Code, as amended by subsections (a) 
     and (b), to provide travel and transportation allowances, 
     not previously available under such section, to family 
     members of seriously ill or injured members of the 
     uniformed services, and to provide such allowances to 
     persons not previously eligible for such allowances, may 
     not exceed $3,000,000.

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

       Section 430(b) of title 37, United States Code, is 
     amended--
       (1) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively; and
       (2) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) The transportation allowance paid to a member under 
     paragraph (1) may include reimbursement, at a rate prescribed 
     by the Secretaries concerned, for lodging costs incurred 
     during the annual trip for which the allowance is paid when, 
     for reasons beyond the control of the dependent child of the 
     member, the child is required to procure accommodations while 
     en route between the child's school and the member's duty 
     station.''.

             Subtitle D--Retired Pay and Survivor Benefits

     SEC. 641. COMPUTATION OF BENEFITS UNDER SURVIVOR BENEFIT PLAN 
                   FOR SURVIVING SPOUSES OVER AGE 62.

       (a) Phased Increase in Basic Annuity.--
       (1) Standard annuity.--
       (A) Increase to 55 percent.--Clause (i) of subsection 
     (a)(1)(B) of section 1451 of title 10, United States Code, is 
     amended by striking ``35 percent of the base amount.'' and 
     inserting ``the product of the base amount and the percent 
     applicable to the month, as follows:
       ``(I) For a month before October 2005, the applicable 
     percent is 35 percent.
       ``(II) For months after September 2005 and before April 
     2006, the applicable percent is 40 percent.
       ``(III) For months after March 2006 and before April 2007, 
     the applicable percent is 45 percent.
       ``(IV) For months after March 2007 and before April 2008, 
     the applicable percent is 50 percent.
       ``(V) For months after March 2008, the applicable percent 
     is 55 percent.''.
       (B) Coordination with savings provision under prior law.--
     Clause (ii) of such subsection is amended by striking ``, at 
     the time the beneficiary becomes entitled to the annuity,''.
       (2) Reserve-component annuity.--Subsection (a)(2)(B)(i)(I) 
     of such section is amended by striking ``35 percent'' and 
     inserting ``the percent specified under subsection 
     (a)(1)(B)(i) as being applicable for the month''.
       (3) Survivors of eligible persons dying on active duty, 
     etc.--
       (A) Increase to 55 percent.--Clause (i) of subsection 
     (c)(1)(B) of such section is amended--
       (i) by striking ``35 percent'' and inserting ``the 
     applicable percent''; and
       (ii) by adding at the end the following: ``The percent 
     applicable for a month under the preceding sentence is the 
     percent specified under subsection (a)(1)(B)(i) as being 
     applicable for that month.''.
       (B) Coordination with savings provision under prior law.--
     Clause (ii) of such subsection is amended by striking ``, at 
     the time the beneficiary becomes entitled to the annuity,''.
       (4) Clerical amendment.--The heading for subsection 
     (d)(2)(A) of such section is amended to read as follows: 
     ``Computation of annuity.--''.
       (b) Corresponding Phased Elimination of Supplemental 
     Annuity.--
       (1) Phased reduction of supplemental annuity.--Section 
     1457(b) of title 10, United States Code, is amended--
       (A) by striking ``5, 10, 15, or 20 percent'' and inserting 
     ``the applicable percent''; and
       (B) by inserting after the first sentence the following: 
     ``The percent used for the computation shall be an even 
     multiple of 5 percent and, whatever the percent specified in 
     the election, may not exceed 20 percent for months before 
     October 2005, 15 percent for months after September 2005 and 
     before April 2006, 10 percent for months after March 2006 and 
     before April 2007, and 5 percent for months after March 2007 
     and before April 2008.''.
       (2) Repeal upon implementation of 55 percent sbp annuity.--
     Effective on April 1, 2008, chapter 73 of such title is 
     amended--
       (A) by striking subchapter III; and
       (B) by striking the item relating to subchapter III in the 
     table of subchapters at the beginning of that chapter.
       (c) Recomputation of Annuities.--
       (1) Periodic recomputation required.--Effective on the 
     first day of each month specified in paragraph (2)--
       (A) each annuity under section 1450 of title 10, United 
     States Code, that commenced before that month, is computed 
     under a provision of section 1451 of that title amended by 
     subsection (a), and is payable for that month shall be 
     recomputed so as to be equal to the amount that would be in 
     effect if the percent applicable for that month under that 
     provision, as so amended, had been used for the initial 
     computation of the annuity; and
       (B) each supplemental survivor annuity under section 1457 
     of such title that commenced before that month and is payable 
     for that month shall be recomputed so as to be equal to the 
     amount that would be in effect if the percent applicable for 
     that month under that section, as amended by this section, 
     had been used for the initial computation of the supplemental 
     survivor annuity.
       (2) Time for recomputation.--The requirement under 
     paragraph (1) for recomputation of certain annuities applies 
     with respect to the following months:
       (A) October 2005.
       (B) April 2006.
       (C) April 2007.
       (D) April 2008.
       (d) Recomputation of Retired Pay Reductions for 
     Supplemental Survivor Annuities.--The Secretary of Defense 
     shall take such actions as are necessitated by the amendments 
     made by subsection (b) and the requirements of subsection 
     (c)(1)(B) to ensure that the reductions in retired pay under 
     section 1460 of title 10, United States Code, are adjusted to 
     achieve the objectives set forth in subsection (b) of that 
     section.

     SEC. 642. OPEN ENROLLMENT PERIOD FOR SURVIVOR BENEFIT PLAN 
                   COMMENCING OCTOBER 1, 2005.

       (a) Persons not Currently Participating in Survivor Benefit 
     Plan.--
       (1) Election of sbp coverage.--An eligible retired or 
     former member may elect to participate in the Survivor 
     Benefit Plan under subchapter II of chapter 73 of title 10, 
     United States Code, during the open enrollment period 
     specified in subsection (f).
       (2) Election of supplemental annuity coverage.--An eligible 
     retired or former member who elects under paragraph (1) to 
     participate in the Survivor Benefit Plan at the maximum level 
     may also elect during the open enrollment period to 
     participate in the Supplemental Survivor Benefit Plan 
     established under subchapter III of chapter 73 of title 10, 
     United States Code.
       (3) Eligible retired or former member.--For purposes of 
     paragraphs (1) and (2), an eligible retired or former member 
     is a member or former member of the uniformed services who on 
     the day before the first day of the open enrollment period is 
     not a participant in the Survivor Benefit Plan and--
       (A) is entitled to retired pay; or
       (B) would be entitled to retired pay under chapter 1223 of 
     title 10, United States Code, but for the fact that such 
     member or former member is under 60 years of age.
       (4) Status under sbp of persons making elections.--
       (A) Standard annuity.--A person making an election under 
     paragraph (1) by reason of eligibility under paragraph (3)(A) 
     shall be treated for all purposes as providing a standard 
     annuity under the Survivor Benefit Plan.
       (B) Reserve-component annuity.--A person making an election 
     under paragraph (1) by reason of eligibility under paragraph 
     (3)(B) shall be treated for all purposes as providing a 
     reserve-component annuity under the Survivor Benefit Plan.
       (b) Election to Increase Coverage Under SBP.--A person who 
     on the day before the first day of the open enrollment period 
     is a participant in the Survivor Benefit Plan but is not 
     participating at the maximum base amount or is providing 
     coverage under the Plan for a dependent child and not for the 
     person's spouse or former spouse may, during the open 
     enrollment period, elect to--
       (1) participate in the Plan at a higher base amount (not in 
     excess of the participant's retired pay); or
       (2) provide annuity coverage under the Plan for the 
     person's spouse or former spouse at a base amount not less 
     than the base amount provided for the dependent child.
       (c) Election for Current SBP Participants to Participate in 
     Supplemental SBP.--
       (1) Election.--A person who is eligible to make an election 
     under this paragraph may elect during the open enrollment 
     period to participate in the Supplemental Survivor Benefit 
     Plan established under subchapter III of chapter 73 of title 
     10, United States Code.
       (2) Persons eligible.--Except as provided in paragraph (3), 
     a person is eligible to make an election under paragraph (1) 
     if on the day before the first day of the open enrollment 
     period the person is a participant in the Survivor Benefit 
     Plan at the maximum level, or during the open enrollment 
     period the person increases the level of such participation 
     to the maximum level under subsection (b) of this section, 
     and under that Plan is providing annuity coverage for the 
     person's spouse or a former spouse.
       (3) Limitation on eligibility for certain sbp participants 
     not affected by two-tier annuity computation.--A person is 
     not eligible to make an election under paragraph (1) if (as 
     determined by the Secretary concerned) the annuity of a 
     spouse or former spouse beneficiary of that person under the 
     Survivor Benefit Plan will be computed under section 1451(e) 
     of title 10, United States Code. However, such a person may 
     during the open enrollment period waive the right to have 
     that annuity computed under such section. Any such election 
     is irrevocable. A person making such a waiver may make an 
     election under paragraph (1) as in the case of any other 
     participant in the Survivor Benefit Plan.
       (d) Manner of Making Elections.--An election under this 
     section must be made in writing,

[[Page H3310]]

     signed by the person making the election, and received by the 
     Secretary concerned before the end of the open enrollment 
     period. Any such election shall be made subject to the same 
     conditions, and with the same opportunities for designation 
     of beneficiaries and specification of base amount, that apply 
     under the Survivor Benefit Plan or the Supplemental Survivor 
     Benefit Plan, as the case may be. A person making an election 
     under subsection (a) to provide a reserve-component annuity 
     shall make a designation described in section 1448(e) of 
     title 10, United States Code.
       (e) Effective Date for Elections.--Any such election shall 
     be effective as of the first day of the first calendar month 
     following the month in which the election is received by the 
     Secretary concerned.
       (f) Open Enrollment Period Defined.--The open enrollment 
     period is the two-year period beginning on October 1, 2005.
       (g) Effect of Death of Person Making Election Within Two 
     Years of Making Election.--If a person making an election 
     under this section dies before the end of the two-year period 
     beginning on the effective date of the election, the election 
     is void and the amount of any reduction in retired pay of the 
     person that is attributable to the election shall be paid in 
     a lump sum to the person who would have been the deceased 
     person's beneficiary under the voided election if the 
     deceased person had died after the end of such two-year 
     period.
       (h) Applicability of Certain Provisions of Law.--The 
     provisions of sections 1449, 1453, and 1454 of title 10, 
     United States Code, are applicable to a person making an 
     election, and to an election, under this section in the same 
     manner as if the election were made under the Survivor 
     Benefit Plan or the Supplemental Survivor Benefit Plan, as 
     the case may be.
       (i) Additional Premium.--The Secretary of Defense may 
     require that the premium for a person making an election 
     under subsection (a)(1) or (b) include, in addition to the 
     amount required under section 1452(a) of title 10, United 
     States Code, an amount determined under regulations 
     prescribed by the Secretary of Defense for the purposes of 
     this subsection. Any such amount shall be stated as a 
     percentage of the base amount of the person making the 
     election and shall reflect the number of years that have 
     elapsed since the person retired, but may not exceed 4.5 
     percent of that person's base amount.
       (j) Report Concerning Open Season.--Not later than July 1, 
     2005, the Secretary of Defense shall submit to the Committee 
     on Armed Services of the Senate and the Committee on Armed 
     Services of the House of Representatives a report on the open 
     season authorized by this section for the Survivor Benefit 
     Plan. The report shall include the following:
       (1) A description of the Secretary's plans for 
     implementation of the open season.
       (2) The Secretary's estimates of the costs associated with 
     the open season, including any anticipated effect of the open 
     season on the actuarial status of the Department of Defense 
     Military Retirement Fund.
       (3) Any recommendation by the Secretary for further 
     legislative action.

     SEC. 643. SOURCE OF FUNDS FOR SURVIVOR BENEFIT PLAN ANNUITIES 
                   FOR DEPARTMENT OF DEFENSE BENEFICIARIES OVER 
                   AGE 62.

       (a) In General.--Chapter 74 of title 10, United States 
     Code, is amended as follows:
       (1) Section 1465(b) of such title is amended by adding at 
     the end the following new paragraph:
       ``(4) 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)(E) 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)(5), 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: ``and as if benefits under 
     subchpater II of chapter 73 of this title for beneficiaries 
     62 years of age and older were computed for any fiscal year 
     on the basis of the percentage of 35 percent, rather than any 
     percentage otherwise applicable for that computation for that 
     fiscal year''; and
       (ii) in subparagraph (B), by inserting before the period at 
     the end the following: ``and as if benefits under subchapter 
     II of chapter 73 of this title for beneficiaries 62 years of 
     age and older were computed for any fiscal year on the basis 
     of the percentage of 35 percent, rather than any percentage 
     otherwise applicable for that computation for that fiscal 
     year'';
       (B) by redesignating paragraph (5) as paragraph (6); and
       (C) by inserting after paragraph (4) the following new 
     paragraph (5):
       ``(5) 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 determined as if benefits under 
     subchapter II of chapter 73 of this title for beneficiaries 
     62 years of age and older were computed for any fiscal year 
     on the basis of the percentage of 35 percent, rather than any 
     percentage otherwise applicable for that computation for that 
     fiscal year.
       ``(B) A determination of a single level percentage 
     determined in the same manner as applies under subparagraph 
     (B) of paragraph (1), but determined as if benefits under 
     subchapter II of chapter 73 of this title for beneficiaries 
     62 years of age and older were computed for any fiscal year 
     on the basis of the percentage of 35 percent, rather than any 
     percentage otherwise applicable for that computation for that 
     fiscal year.

     Such single level percentages shall be used for the purposes 
     of subsection (b)(4).''.
       (5) Section 1466(b) of such title is amended--
       (A) in paragraph (1), by inserting ``1465(b)(4),'' after 
     ``1465(b)(3),''; and
       (B) by adding at the end of paragraph (2) the following new 
     subparagraph:
       ``(E) The amount for that year determined by the Secretary 
     of Defense under section 1465(b)(4) of this title for the 
     cost to the Fund arising from increased amounts payable from 
     the Fund by reason of benefits under subchapter II of chapter 
     73 of this title for beneficiaries 62 years of age and older 
     being computed for any fiscal year on the basis of the 
     percentage greater than 35 percent.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect as of October 1, 2004. If this Act is 
     enacted after that date, the Secretary of Defense shall 
     provide for such administrative adjustments as necessary to 
     provide for payments made for any period during fiscal year 
     2005 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 those amendments to be 
     implemented as if enacted as of September 30, 2004.

    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

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

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

``Subchapter                                                       Sec.
``I. Defense Commissary System.................................2481....

``II. Relationship, Continuation, and Common Policies of Defense 
    Commissary and Exchange Systems............................2487....

``III. Morale, Welfare, and Recreation Programs and Nonappropriated 
    Fund Instrumentalities.....................................2491....

               ``SUBCHAPTER I--DEFENSE COMMISSARY SYSTEM

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

     ``Sec. 2481. Existence and purpose of defense commissary 
       system

       ``(a) Existence of System.--The Secretary of the Defense 
     shall operate, using funds appropriated to the Department of 
     Defense, a world-wide system of commissary stores that sell, 
     at reduced prices, food and other merchandise consistent with 
     societal norms for product selection in commercial large-
     scale grocery stores in the United States to members of the 
     uniformed services on active duty, members of the uniformed 
     services entitled to retired pay, dependents of such members, 
     and patrons authorized to use the system under chapter 54 of 
     this title.
       ``(b) Purpose of System.--The purpose of the defense 
     commissary system is to enhance the quality of life of 
     members of the uniformed services, retired members, 
     dependents of such members, and other authorized patrons and 
     to provide such members with an additional nonmonetary 
     compensation in recognition of their service to the United 
     States.
       ``(c) Reduced Prices Defined.--In this section, the term 
     `reduced prices' means prices for food and other merchandise 
     determined using the price setting process specified in 
     section 2484 of this title.

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

       ``(a) Primary Consideration for Establishment.--The needs 
     of members of the uniformed services on active duty and their 
     dependents shall be the primary consideration whenever the 
     Secretary of Defense--
       ``(1) assesses the need to establish a commissary store; 
     and
       ``(2) selects the actual location for the store.
       ``(b) Store Size.--In determining the size of a commissary 
     store, the Secretary of Defense shall take into consideration 
     the number of all authorized patrons of the defense 
     commissary system who are likely to use the store.
       ``(c) Closure Considerations.--(1) Whenever assessing 
     whether to close a commissary store, the effect of the 
     closure on the quality of life of members of the uniformed 
     services and their dependents using the store and on the 
     welfare and

[[Page H3311]]

     security of the military community in which the commissary is 
     located shall be the primary consideration. In all cases, the 
     quality of life for military patrons shall take priority over 
     any consideration of economic criteria relative to store 
     financial performance.
       ``(2) The Secretary of Defense shall give the quality of 
     life for members of a reserve component the same priority as 
     the quality of life for active duty members whenever 
     assessing whether to close a commissary store, including when 
     the assessment is undertaken as a result of the closure or 
     realignment of a military installation under a base closure 
     law.
       ``(d) Congressional Notification.--The closure of a 
     commissary store shall not take effect until the end of the 
     90-day period beginning on the date on which the Secretary of 
     Defense submits to Congress written notice of the reasons 
     supporting the closure. The written notice shall include an 
     assessment of the impact closure will have on the quality of 
     life for military patrons and the welfare and security of the 
     military community in which the commissary is located.'';
       (4) by inserting sections 2483 and 2484, as redesignated by 
     paragraph (2), after section 2482, as added by paragraph (3);
       (5) in section 2484, as redesignated by paragraph (2)--
       (A) by striking subsections (a), (b), (c), and (g);
       (B) by redesignating subsections (d), (e), and (f) as 
     subsections (f), (g), and (h), respectively;
       (C) by inserting before subsection (f), as so redesignated, 
     the following new subsections:
       ``(a) In General.--As provided in section 2481(a) of this 
     title, commissary stores are intended to be similar to 
     commercial grocery stores and may sell merchandise similar to 
     that sold in commercial grocery stores. The Secretary of 
     Defense shall ensure that the design and format of commissary 
     stores are consistent with modern grocery store stockage and 
     format.
       ``(b) Required Commissary Merchandise Categories.--
     Merchandise sold in, at, or by commissary stores shall 
     include items in the following categories:
       ``(1) Meat, poultry, and seafood.
       ``(2) Nonalcoholic beverages.
       ``(3) Produce.
       ``(4) Grocery food, whether stored chilled, frozen, or at 
     room temperature.
       ``(5) Dairy products.
       ``(6) Bakery and delicatessen items.
       ``(7) Nonfood grocery items.
       ``(8) Health and beauty aids.
       ``(9) Magazines and periodicals.
       ``(10) Telephone cards, greeting cards, and film and one-
     time use cameras.
       ``(c) Inclusion of General Merchandise Items.--(1) Among 
     the various defense retail systems--
       ``(A) commissary stores shall be the primary Department of 
     Defense-operated store for the sale of items described in 
     paragraphs (1) through (7) of subsection (b); and
       ``(B) exchange stores shall continue to maintain the 
     exclusive right to operate convenience stores, shopettes, and 
     troop stores, including such stores established to support 
     contingency operations.
       ``(2) Merchandise sold in commissary stores may include 
     such general merchandise items as the Secretary of Defense 
     may prescribe, except that the Secretary may not exclude 
     seasonal items, tobacco products, pet supplies, batteries, 
     potted plants and floral bouquets, women's hosiery, and 
     school supplies, to the extent such products have been 
     available in commissary stores before June 1, 2004, unless 
     the Secretary determines that space or other considerations 
     preclude the sale of all or some of the specified items. The 
     Secretary shall provide notice to Congress of any reduction 
     in the availability of such items at least 30 days before the 
     reduction takes effect.
       ``(3) A military exchange may be considered as the vendor 
     for the purchase of tobacco products, greeting cards, and 
     film and one-time use cameras and shall serve as the vendor 
     for telephone cards. Subsections (e) and (f) shall not apply 
     to the pricing of such an item when a military exchange 
     serves as the vendor of the item. Commissary store and 
     exchange prices shall be comparable for such an item.
       ``(4) During the two-year period ending March 31, 2007, the 
     Secretary shall maintain sales data for commissary stores and 
     exchange stores regarding the items identified in subsection 
     (b)(10). Not later than August 1, 2007, the Secretary shall 
     submit to Congress a report containing such sales data.
       ``(d) Excluded Goods or Services.--Commissary stores shall 
     not offer film development services.
       ``(e) Uniform Sales Price Surcharge.--The Secretary of 
     Defense shall apply a uniform surcharge equal to not more 
     than five percent on the sales prices established under 
     subsection (f) for each item of merchandise sold in, at, or 
     by commissary stores.'';
       (D) in subsection (f), as so redesignated, by striking 
     ``(consistent with this section and section 2685 of this 
     title)'' in paragraph (1);
       (E) in subsection (h), as so redesignated, by striking 
     ``Subsections (c) and (d)'' and inserting ``Subsections (e) 
     and (f)''; and
       (F) by adding at the end the following new subsection:
       ``(i) Use of Surcharge for Construction, Repair, 
     Improvement, and Maintenance.--(1)(A) The Secretary of 
     Defense may use the proceeds from the surcharges imposed 
     under subsection (e) only--
       ``(i) to acquire (including acquisition by lease), 
     construct, convert, expand, improve, repair, maintain, and 
     equip the physical infrastructure of commissary stores and 
     central product processing facilities of the defense 
     commissary system; and
       ``(ii) to cover environmental evaluation and construction 
     costs related to activities described in clause (i), 
     including costs for surveys, administration, overhead, 
     planning, and design.
       ``(B) In subparagraph (A), the term `physical 
     infrastructure' includes real property, utilities, and 
     equipment (installed and free standing and including computer 
     equipment), necessary to provide a complete and usable 
     commissary store or central product processing facility.
       ``(2)(A) The Secretary of Defense may authorize a 
     nonappropriated fund instrumentality of the United States to 
     enter into a contract for construction of a shopping mall or 
     similar facility for a commissary store and one or more 
     nonappropriated fund instrumentality activities. The 
     Secretary may use the proceeds of surcharges under subsection 
     (e) to reimburse the nonappropriated fund instrumentality for 
     the portion of the cost of the contract that is attributable 
     to construction of the commissary store or to pay the 
     contractor directly for that portion of such cost.
       ``(B) In subparagraph (A), the term `construction', with 
     respect to a facility, includes acquisition, conversion, 
     expansion, installation, or other improvement of the 
     facility.
       ``(3) The Secretary of Defense, with the approval of the 
     Director of the Office of Management and Budget, may obligate 
     anticipated proceeds from the surcharges under subsection (e) 
     for any use specified in paragraph (1) or (2), without regard 
     to fiscal year limitations, if the Secretary determines that 
     such obligation is necessary to carry out any use of such 
     adjustments or surcharges specified in such paragraph.
       ``(4) Revenues received by the Secretary of Defense from 
     the following sources or activities of commissary store 
     facilities shall be available for the purposes set forth in 
     paragraphs (1), (2), and (3):
       ``(A) Sale of recyclable materials.
       ``(B) Sale of excess and surplus property.
       ``(C) License fees.
       ``(D) Royalties.
       ``(E) Fees paid by sources of products in order to obtain 
     favorable display of the products for resale, known as 
     business related management fees.'';
       (6) by inserting section 2485, as redesignated by paragraph 
     (2), after section 2484, as amended by paragraph (5); and
       (7) in section 2485, as redesignated by paragraph (2)--
       (A) in subsection (a)(2), by adding at the end the 
     following new sentence: ``Until December 31, 2009, the 
     Defense Commissary Agency is not required to conduct any 
     cost-comparison study under the policies and procedures of 
     Office of Management and Budget Circular A-76 relating to the 
     possible contracting out of commissary store functions.'';
       (B) in subsection (b)(2), by striking ``section 2484'' and 
     inserting ``section 2483'';
       (C) in subsection (c)(2), by adding at the end the 
     following new sentences: ``The chairman of the governing 
     board shall be a commissioned officer or member of the senior 
     executive service who has demonstrated experience or 
     knowledge relevant to the management of the defense 
     commissary system. In selecting other members of the 
     governing board, the Secretary shall give priority to persons 
     with experience related to logistics, military personnel, 
     military entitlements or other experiences of value of 
     management of commissaries.''; and
       (D) by adding at the end the following new subsections:
       ``(d) Assignment of Active Duty Members.--(1) Except as 
     provided in paragraph (2), members of the armed forces on 
     active duty may not be assigned to the operation of a 
     commissary store.
       ``(2)(A) The Secretary of Defense may assign an officer on 
     the active-duty list to serve as the Director of the Defense 
     Commissary Agency.
       ``(B) Not more than 18 members (in addition to the officer 
     referred to in subparagraph (A)) of the armed forces on 
     active duty may be assigned to the Defense Commissary Agency. 
     Members who may be assigned under this subparagraph to 
     regional headquarters of the agency shall be limited to 
     enlisted members assigned to duty as advisers in the regional 
     headquarters responsible for overseas commissaries and to 
     veterinary specialists.
       ``(e) Reimbursement for Use of Commissary Facilities by 
     Military Departments.--(1) The Secretary of a military 
     department shall pay the Defense Commissary Agency the amount 
     determined under paragraph (2) for any use of a commissary 
     facility by the military department for a purpose other than 
     commissary sales or operations in support of commissary 
     sales.
       ``(2) The amount payable under paragraph (1) for use of a 
     commissary facility by a military department shall be equal 
     to the share of depreciation of the facility that is 
     attributable to that use, as determined under regulations 
     prescribed by the Secretary of Defense.
       ``(3) The Director of the Defense Commissary Agency shall 
     credit amounts paid under paragraph (1) for use of a facility 
     to an appropriate account to which proceeds of a surcharge 
     applied under section 2484(e) of this title are credited.
       ``(4) This subsection applies with respect to a commissary 
     facility that is acquired, constructed, converted, expanded, 
     installed, or otherwise improved (in whole or in part) with 
     the proceeds of a surcharge applied under section 2484(e) of 
     this title.
       ``(f) Donation of Unusable Food.--(1) The Secretary of 
     Defense may donate food described in paragraph (2) to any of 
     the following entities:
       ``(A) A charitable nonprofit food bank that is designated 
     by the Secretary of Defense or the Secretary of Health and 
     Human Services as authorized to receive such donations.
       ``(B) A State or local agency that is designated by the 
     Secretary of Defense or the Secretary of Health and Human 
     Services as authorized to receive such donations.

[[Page H3312]]

       ``(C) A chapter or other local unit of a recognized 
     national veterans organization that provides services to 
     persons without adequate shelter and is designated by the 
     Secretary of Veterans Affairs as authorized to receive such 
     donations.
       ``(D) A not-for-profit organization that provides care for 
     homeless veterans and is designated by the Secretary of 
     Veterans Affairs as authorized to receive such donations.
       ``(2) Food that may be donated under this subsection is 
     commissary store food, mess food, meals ready-to-eat (MREs), 
     rations known as humanitarian daily rations (HDRs), and other 
     food available to the Secretary of Defense that--
       ``(A) is certified as edible by appropriate food inspection 
     technicians;
       ``(B) would otherwise be destroyed as unusable; and
       ``(C) in the case of commissary store food, is unmarketable 
     and unsaleable.
       ``(3) In the case of commissary store food, a donation 
     under this subsection shall take place at the site of the 
     commissary store that is donating the food.
       ``(4) This subsection does not authorize any service 
     (including transportation) to be provided in connection with 
     a donation under this subsection.
       ``(g) Collection of Dishonored Checks.--(1) The Secretary 
     of Defense may impose a charge for the collection of a check 
     accepted at a commissary store that is not honored by the 
     financial institution on which the check is drawn. The 
     imposition and amounts of charges shall be consistent with 
     practices of commercial grocery stores regarding dishonored 
     checks.
       ``(2)(A) The following persons are liable to the United 
     States for the amount of a check referred to in paragraph (1) 
     that is returned unpaid to the United States, together with 
     any charge imposed under that paragraph:
       ``(i) The person who presented the check.
       ``(ii) Any person whose status and relationship to the 
     person who presented the check provide the basis for that 
     person's eligibility to make purchases at a commissary store.
       ``(B) Any amount for which a person is liable under 
     subparagraph (A) may be collected by deducting and 
     withholding such amount from any amounts payable to that 
     person by the United States.
       ``(3) Amounts collected as charges imposed under paragraph 
     (1) shall be credited to the commissary trust revolving fund.
       ``(4) Appropriated funds may be used to pay any costs 
     incurred in the collection of checks and charges referred to 
     in paragraph (1). An appropriation account charged a cost 
     under the preceding sentence shall be reimbursed the amount 
     of that cost out of funds in the commissary trust revolving 
     fund.
       ``(5) In this subsection, the term `commissary trust 
     revolving fund' means the trust revolving fund maintained by 
     the Department of Defense for surcharge collections and 
     proceeds of sales of commissary stores.
       ``(h) Release of Certain Commercially Valuable Information 
     to Public.--(1) The Secretary of Defense may limit the 
     release to the public of any information described in 
     paragraph (2) if the Secretary determines that it is in the 
     best interest of the Department of Defense to limit the 
     release of such information. If the Secretary determines to 
     limit the release of any such information, the Secretary may 
     provide for limited release of such information in accordance 
     with paragraph (3).
       ``(2) Paragraph (1) applies to the following:
       ``(A) Information contained in the computerized business 
     systems of commissary stores or the Defense Commissary Agency 
     that is collected through or in connection with the use of 
     electronic scanners in commissary stores, including the 
     following information:
       ``(i) Data relating to sales of goods or services.
       ``(ii) Demographic information on customers.
       ``(iii) Any other information pertaining to commissary 
     transactions and operations.
       ``(B) Business programs, systems, and applications 
     (including software) relating to commissary operations that 
     were developed with funding derived from commissary 
     surcharges.
       ``(3)(A) The Secretary of Defense may, using competitive 
     procedures, enter into a contract to sell information 
     described in paragraph (2).
       ``(B) The Secretary of Defense may release, without charge, 
     information on an item sold in commissary stores to the 
     manufacturer or producer of that item or an agent of the 
     manufacturer or producer.
       ``(C) The Secretary of Defense may, by contract entered 
     into with a business, grant to the business a license to use 
     business programs referred to in paragraph (2)(B), including 
     software used in or comprising any such program. The fee 
     charged for the license shall be based on the costs of 
     similar programs developed and marketed by businesses in the 
     private sector, determined by means of surveys.
       ``(D) Each contract entered into under this paragraph shall 
     specify the amount to be paid for information released or a 
     license granted under the contract, as the case may be.
       ``(4) Information described in paragraph (2) may not be 
     released, under paragraph (3) or otherwise, in a form that 
     identifies any customer or that provides information making 
     it possible to identify any customer.
       ``(5) Amounts received by the Secretary under this section 
     shall be credited to funds derived from commissary surcharges 
     applied under section 2484(e) of this title, shall be merged 
     with those funds, and shall be available for the same 
     purposes as the funds with which merged.''.
       (b) Relation Between Defense Commissary and Exchange 
     Systems.--Chapter 147 of title 10, United States Code, is 
     further amended--
       (1) by inserting after section 2485, as amended by 
     subsection (a)(7), the following:

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

``Sec.
``2487. Existence and purpose of defense commissary system.
``2488. Combined exchange and commissary stores.
``2489. Overseas commissary and exchange stores: access and purchase 
              restrictions.

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

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

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

``Sec.
``2491. Uniform funding and management of morale, welfare, and 
              recreation programs.
``2491a. Department of Defense golf courses: limitation on use of 
              appropriated funds.
``2491b. Use of appropriated funds for operation of Armed Forces 
              Recreation Center, Europe: limitation.
``2491c. Retention of morale, welfare, and recreation funds by military 
              installations: limitation.
``2492. Nonappropriated fund instrumentalities: contracts with other 
              agencies and instrumentalities to provide and obtain 
              goods and services.
``2493. Fisher Houses: administration as nonappropriated fund 
              instrumentality.
``2494. Nonappropriated fund instrumentalities: furnishing utility 
              services for morale, welfare, and recreation purposes.
``2495. Nonappropriated fund instrumentalities: purchase of alcoholic 
              beverages.
``2495a. Overseas package stores: treatment of United States wines.
``2495b. Sale or rental of sexually explicit material prohibited.'';

       (2) by redesignating section 2494 as section 2491 and 
     inserting such section after the table of sections at the 
     beginning of subchapter III, as added by paragraph (1);
       (3) by redesignating section 2482a as section 2492 and 
     inserting such section before section 2493;
       (4) by inserting after section 2493 the following new 
     section:

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

       ``Appropriations for the Department of Defense may be used 
     to provide utility services for--
       ``(1) buildings on military installations authorized by 
     regulation to be used for morale, welfare, and recreation 
     purposes; and
       ``(2) other morale, welfare, and recreation activities for 
     members of the armed forces.''; and
       (5) by inserting sections 2495, 2495a, and 2495b, as 
     redesignated by subsection (b)(2), after section 2494, as 
     added by paragraph (4).
       (d) Inclusion of Other Title 10 Provisions.--Sections 2246, 
     2247, and 2219 of title 10, United States Code, are--
       (1) transferred to chapter 147 of such title;
       (2) inserted after section 2491, as redesignated and moved 
     by subsection (c)(2); and
       (3) redesignated as sections 2491a, 2491b, and 2491c, 
     respectively.
       (e) Conforming Amendments.--(1) Section 977 of title 10, 
     United States Code, is repealed.
       (2) Section 2868 of such title is amended by striking 
     ``for--'' and all that follows through the period at the end 
     and inserting ``for buildings constructed at private cost, as 
     authorized by law.''.
       (3) Section 367 of the Strom Thurmond National Defense 
     Authorization Act for Fiscal Year 1999 (Public Law 105-261; 
     112 Stat. 1987; 10 U.S.C. 2482 note) is repealed.
       (f) Clerical Amendments.--(1) The table of sections at the 
     beginning of chapter 49 of title

[[Page H3313]]

     10, United States Code, is amended by striking the item 
     relating to section 977.
       (2) The table of sections at the beginning of chapter 132 
     of such title is amended by striking the item relating to 
     section 2219.
       (3) The table of sections at the beginning of subchapter I 
     of chapter 134 of such title is amended by striking the items 
     relating to sections 2246 and 2247.

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

       Section 349 of the National Defense Authorization Act for 
     Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2727) is 
     amended by adding at the end the following new subsection:
       ``(c) Treatment of Program as Federal Health Benefit 
     Program.--(1) No State tax, fee, other monetary payment, or 
     State health plan requirement, may be imposed, directly or 
     indirectly, on the Nonappropriated Fund Uniform Health 
     Benefits Program of the Department of Defense, or on a 
     carrier or an underwriting or plan administration contractor 
     of the Program, to the same extent as such prohibition 
     applies to the health insurance program authorized by chapter 
     89 of title 5, United States Code, under section 8909(f) of 
     such title.
       ``(2) Paragraph (1) shall not be construed to exempt the 
     Nonappropriated Fund Uniform Health Benefits Program of the 
     Department of Defense, or any carrier or underwriting or plan 
     administration contractor of the Program from the imposition, 
     payment, or collection of a tax, fee, or other monetary 
     payment on the net income or profit accruing to, or realized 
     by, the Program or by such carrier or contractor from 
     business conducted under the Program, so long as the tax, 
     fee, or payment is applicable to a broad range of business 
     activity.
       ``(3) In this section, the term `State' means each of the 
     several States, the District of Columbia, the Commonwealth of 
     Puerto Rico, the United States Virgin Islands, Guam, American 
     Samoa, and the Commonwealth of the Northern Mariana Islands, 
     and any political subdivision or other non-Federal authority 
     thereof.''.

     SEC. 653. COOPERATION AND ASSISTANCE FOR QUALIFIED SCOUTING 
                   ORGANIZATIONS SERVING DEPENDENTS OF MEMBERS OF 
                   THE ARMED FORCES AND CIVILIAN EMPLOYEES 
                   OVERSEAS.

       (a) Authority to Cooperate and Provide Assistance.--
     Subsection (a) of section 2606 of title 10, United States 
     Code, is amended--
       (1) in subsection (a), by striking ``Subject to subsection 
     (b)'' and inserting ``In the interest of promoting the 
     recognized morale, welfare, and recreation of members of the 
     armed forces''; and
       (2) in subsection (b), by striking ``and may'' and all that 
     follows through ``armed forces''.
       (b) Treatment of Organizations and Employees.--Such section 
     is further amended--
       (1) by striking subsections (e) and (f);
       (2) by redesignating subsections (c) and (d) as subsections 
     (e) and (f), respectively; and
       (3) by inserting after subsection (b) the following new 
     subsections:
       ``(c) Treatment as Nonappropriated Fund 
     Instrumentalities.--(1) Subject to paragraphs (2) and (3), to 
     the extent a qualified scouting organization is providing 
     services for members of the armed forces and their 
     dependents, or civilian employees of the Department of 
     Defense and their dependents, at a location outside the 
     United States consistent with the regulations prescribed 
     under subsection (b), the qualified scouting organization 
     shall be a nonappropriated fund instrumentality of the 
     Department of Defense.
       ``(2) Notwithstanding treatment as a nonappropriated fund 
     instrumentality of the Department of Defense, personnel of 
     the qualified scouting organization who are performing duties 
     in connection with cooperation and assistance provided under 
     subsection (a) may continue such policies and procedures 
     related to personnel management and such other policies or 
     procedures established by the qualified scouting organization 
     as the personnel consider appropriate, subject to the 
     approval of the qualified scouting organization.
       ``(3) A qualified scouting organization operating outside 
     the United States may operate as a private association 
     overseas for the purpose of raising funds. Any funds so 
     raised may not be commingled with amounts retained in a 
     nonappropriated morale, welfare, and recreation account of 
     the Department of Defense.
       ``(d) Treatment as Nonappropriated Fund Instrumentality 
     Employees.--(1) Personnel of a qualified scouting 
     organization who are performing duties in connection with 
     cooperation and assistance provided under subsection (a) for 
     members of the armed forces and their dependents, or civilian 
     employees of the Department of Defense and their dependents, 
     shall be nonappropriated fund instrumentality employees of 
     the United States for any period during which the personnel 
     perform such duties.
       ``(2) Such personnel of a qualified scouting organization 
     shall receive the same benefits, entitlements, and logistical 
     support as other nonappropriated fund instrumentality 
     employees, except that such personnel--
       ``(A) shall be allowed to decline to participate in 
     retirement programs or other personnel management policies or 
     procedures available to other nonappropriated fund 
     instrumentality employees and elect to continue the programs, 
     policies or procedures made available by the qualified 
     scouting organization; and
       ``(B) shall not receive nonappropriated fund 
     instrumentality employment credit nor rehire priority.
       ``(3) In the regulations prescribed under subsection (b), 
     the Secretary of Defense may authorize the use of funds 
     appropriated to the Department of Defense to pay costs of 
     such personnel of a qualified scouting organization, 
     including reimbursement of the personnel or the qualified 
     scouting organization, in the case of those retirement, 
     personnel management, and other compensation programs 
     regarding which the personnel have elected to continue the 
     programs made available to them by the qualified scouting 
     organization.''.
       (c) Conforming and Clerical Amendments.--Such section is 
     further amended--
       (1) in subsection (a), by inserting ``Authority to 
     Cooperate and Provide Assistance.--'' after ``(a)'';
       (2) in subsection (c), by inserting ``Basis for Cooperation 
     and Assistance.--'';
       (3) in subsection (e), as redesignated by subsection 
     (b)(2)--
       (A) by inserting ``Provision of Transportation, Space, and 
     Services.--'' after ``(e)''; and
       (B) in the matter preceding paragraph (1), by inserting ``, 
     using the authority of subsection (d)(3)'' after 
     ``furnished'';
       (4) in subsection (f), as redesignated by subsection 
     (b)(2), by inserting ``Transportation of Supplies.--'' after 
     ``(f)''; and
       (5) in subsection (g), by inserting ``Definition.--'' after 
     ``(g)''.

                       Subtitle F--Other Matters

     SEC. 661. REPEAL OF REQUIREMENT THAT MEMBERS ENTITLED TO 
                   BASIC ALLOWANCE FOR SUBSISTENCE PAY SUBSISTENCE 
                   CHARGES WHILE HOSPITALIZED.

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

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

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

     SEC. 663. SURVEY AND ANALYSIS OF EFFECT OF EXTENDED AND 
                   FREQUENT MOBILIZATION OF RESERVISTS FOR ACTIVE 
                   DUTY SERVICE ON RESERVIST INCOME.

       (a) Survey of Mobilized Reservists to Determine 
     Differential Between Private Sector Income and Military 
     Compensation.--(1) The Secretary of Defense shall conduct a 
     survey involving members of the reserve components who serve, 
     or have served, on active duty in support of a contingency 
     operation at any time during the period beginning on 
     September 11, 2001, and ending on September 30, 2005, to 
     determine the extent to which such members sustained a 
     reduction in monthly income during the period of the active 
     duty service compared to the average monthly civilian income 
     of the members during the 12 months preceding their 
     mobilization.
       (2) At least 50 percent of the total number of members of 
     the reserve components who have served on active duty in 
     support of a contingency operation at any time during the 
     period specified in paragraph (1) shall be included in the 
     survey.
       (b) Calculation of Income Differential.--For each member 
     surveyed under subsection (a) who reports that total monthly 
     military compensation during the active duty service of the 
     member was less, or appeared to be less, than the average 
     monthly civilian income of the member, the Secretary of 
     Defense, in cooperation with the member, shall calculate the 
     monthly active-duty income differential for the member.
       (c) Definitions Used in Conducting Survey and 
     Calculations.--In this section:
       (1) The term ``monthly active-duty income differential'', 
     with respect to a member of a reserve component surveyed 
     under subsection (a), means the difference between--
       (A) the average monthly civilian income of the member; and
       (B) the total monthly military compensation of the member.
       (2) The term ``average monthly civilian income'', with 
     respect to a member of a reserve component surveyed under 
     subsection (a), means the amount, determined by the Secretary 
     of Defense, of the earned income of the member for the 12 
     months preceding the first mobilization of the member during 
     the period specified in subsection (a)(1), divided by 12.
       (3) The term ``total monthly military compensation'', with 
     respect to a member of a reserve component surveyed under 
     subsection (a), means the amount, computed on a monthly 
     basis, of the sum of--
       (A) the amount of the regular military compensation (RMC), 
     as defined in section 101(25) of title 37, United States 
     Code, of the member during the period specified in subsection 
     (a)(1); and
       (B) any amount of special pay or incentive pay and any 
     allowance (other than an allowance included in regular 
     military compensation) that is paid to the member on a 
     monthly basis during the period specified in subsection 
     (a)(1).
       (d) Collection of Demographic Data.--The Secretary of 
     Defense shall collect demographic

[[Page H3314]]

     data regarding each member of a reserve component surveyed 
     under subsection (a), including, at a minimum, data on the 
     following:
       (1) Reserve component.
       (2) Unit of assignment.
       (3) Grade.
       (4) Age.
       (5) Years of service.
       (6) Sex.
       (7) Marital status.
       (8) Number of dependents.
       (9) General category of private-sector employment, as 
     determined by the Secretary, but to include an employment 
     category to cover members who are self-employed.
       (10) Military occupational specialty, including specifying 
     all surveyed members who are serving in a critical wartime 
     specialty.
       (11) Length of service on active duty during the most 
     recent mobilization.
       (12) Number of times mobilized since September 11, 2001.
       (e) Effect of Income Loss on Retention.--The Secretary of 
     Defense shall include in the survey a question to solicit 
     information from each member of a reserve component surveyed 
     under subsection (a) regarding the likely effect of a 
     reoccurring monthly active-duty income differential for the 
     member while serving on active duty on the decision of the 
     member to remain in the reserve component.
       (f) Analysis of Survey Data.--(1) At a minimum, the 
     Secretary of Defense shall determine, for each variable 
     listed in paragraphs (2) through (12) of subsection (d), the 
     number of members of the reserve components surveyed under 
     subsection (a) who sustained a monthly active-duty income 
     differential for any month during their active duty service 
     and compare and contrast that number with the number of 
     members who did not experience a monthly active-duty income 
     differential.
       (2) The Secretary shall also determine the average amount 
     of the active-duty income differential by reserve component 
     for each variable within the characteristics listed in 
     paragraphs (2) through (12) of subsection (d).
       (g) Submission of Survey Results and Recommendations.--Not 
     later than January 31, 2006, the Secretary of Defense shall 
     submit to Congress and the Comptroller General a report 
     containing the results of the surveys conducted under 
     subsection (a), including the results of the analysis of 
     survey data required by subsection (e). The Secretary shall 
     include such recommendations as the Secretary considers 
     appropriate regarding alternatives for restoring income lost 
     by members of the reserve components who sustained a monthly 
     active-duty income differential during their active duty 
     service.
       (h) Comptroller General Evaluation.--Not later than March 
     31, 2006, the Comptroller General shall submit to Congress an 
     assessment of the findings and recommendations contained in 
     the report of the Secretary of Defense submitted under 
     subsection (g).

                   TITLE VII--HEALTH CARE PROVISIONS

               Subtitle A--Enhanced Benefits for Reserves

     SEC. 701. DEMONSTRATION PROJECT FOR TRICARE COVERAGE FOR 
                   READY RESERVE MEMBERS.

       (a) Demonstration Program.--Section 1076b of title 10, 
     United States Code, is amended to read as follows:

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

       ``(a) In General.--(1) The Secretary of Defense shall 
     conduct a demonstration project beginning in fiscal year 2005 
     to test whether TRICARE coverage for certain Ready Reserve 
     members and their families enhances medical readiness and 
     retention of such members.
       ``(2) Under the demonstration project required by paragraph 
     (1), within the scope of the project, as established by the 
     Secretary, members of the Ready Reserve may be allowed to 
     enroll for coverage under the TRICARE Standard option of the 
     TRICARE program and receive benefits under such enrollment 
     for any period that the member--
       ``(A) is not eligible for health care benefits under an 
     employer-sponsored health benefits plan; and
       ``(B) either--
       ``(i) is not on active duty; or
       ``(ii) is on active duty but under a call or order to 
     active duty for a period of 30 days or less.
       ``(3) A member allowed to enroll in TRICARE Standard under 
     the demonstration project may enroll for self-only coverage 
     or self and family coverage.
       ``(b) Scope of Coverage .--A member and the dependents of a 
     member enrolled in TRICARE Standard under this section shall 
     be entitled to the same benefits and shall pay the same 
     charges as are provided under section 1079 of this title.
       ``(c) Premiums.--(1) The Secretary of Defense shall charge 
     premiums for coverage pursuant to enrollments under this 
     section. The Secretary shall prescribe a premium for self 
     only 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.
       ``(d) Conditions of Eligibility.--(1) The Secretary of 
     Defense may establish other conditions of eligibility, 
     including requiring a member to submit any certification that 
     the Secretary considers appropriate to substantiate the 
     member's assertion that the member is not eligible for health 
     care benefits under any other health benefits plan.
       ``(2) In the case of any member who is self-employed and 
     not eligible for coverage under any other employer-sponsored 
     health benefits plan, the member shall not be considered 
     eligible to enroll under this section if the member's income 
     in the prior calendar year exceeded $40,000.
       ``(e) Scope and Terms of Demonstration Project.--The 
     geographic scope and priorities for enrollment under the 
     demonstration program, if any, shall be established by the 
     Secretary of Defense. The Secretary may establish such other 
     terms and conditions for the demonstration project required 
     by subsection (a) as the Secretary determines appropriate to 
     accomplish its purposes.
       ``(f) Termination of Authority.--An enrollment in TRICARE 
     under this section may not continue after December 31, 2007.
       ``(g) Evaluation of Demonstration and Report to Congress.--
     Not later than March 1, 2007, the Secretary shall provide to 
     Congress a report on the results of the demonstration project 
     required by this section. Such report shall include an 
     analysis of the impact of the demonstration on medical 
     readiness and retention of the members who enrolled, an 
     assessment of the costs and benefits of any improvements in 
     medical readiness or retention, and recommendations 
     concerning TRICARE Standard coverage for Ready Reserve 
     members.
       ``(h) Definition.--In this section, 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 this 
     title.''.
       (b) Termination of Coverage Under Superseded Provision of 
     Law.--An enrollment in TRICARE under section 1076b of title 
     10, United States Code, as in effect before the date of the 
     enactment of this Act may not continue after such date.
       (c) Site Identification.--(1) Not later than 60 days after 
     the date of enactment of this Act, the Secretary of Defense, 
     in consultation with the Committees on Armed Services of the 
     Senate and the House of Representatives, shall identify not 
     less than 10 sites that meet the criteria specified in 
     paragraph (2) for the conduct of the demonstration project 
     required under section 1076b of title 10, United States Code, 
     as amended by this section.
       (2) For purposes of paragraph (1), the sites selected for 
     the conduct of the demonstration project shall be areas of 
     the United States that include a substantial number of 
     personnel expected to be ordered to active duty for a period 
     of more than 30 days.
       (d) Independent Evaluation and Reports.--(1) The 
     Comptroller General shall conduct an evaluation of the 
     demonstration project required under section 1076b of title 
     10, United States Code (as amended by this section) The 
     evaluation shall include an assessment of the following:
       (A) Compliance by the Department of Defense with the 
     requirements under section 1076b of title 10, United States 
     Code (as amended by this section).
       (B) A description of the effects of the demonstration 
     project on medical readiness and retention of the 
     participants compared to nonparticipants.
       (C) The number of Ready Reserve members and their 
     dependents opting to participate in the demonstration 
     project.
       (D) An analysis of how the demonstration project affects 
     the overall accessibility of care in the direct and purchased 
     care systems and a description of the unintended effects (if 
     any) upon the normal treatment priority system.
       (E) A description of the difficulties (if any) experienced 
     by the Department of Defense in managing the demonstration 
     project.
       (F) Any impact of the demonstration project on employers, 
     including causing them to discontinue health care insurance 
     benefits for employees who are members of the reserves.
       (G) A recommendation whether to extend the demonstration 
     project or make the project permanent.
       (H) A determination of whether the terms and conditions of 
     the demonstration project should be continued or modified if 
     the project is extended or expanded.
       (I) Implications on cost, medical readiness, recruitment, 
     and retention if the demonstration project was made available 
     to all reservists meeting the enrollment criteria throughout 
     the United States and its territories.
       (J) Any additional elements that the Comptroller General 
     determines are appropriate to assess the demonstration 
     project.
       (2) The Comptroller General shall submit to the Committees 
     on Armed Services of the Senate and the House of 
     Representatives--
       (A) an interim report on the evaluation under this section 
     not later than 12 months after the date on which the 
     demonstration project begins operation; and
       (B) a final report on the evaluation under this section not 
     later than March 1, 2007.

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

       (a) Study Required.--The Comptroller General shall conduct 
     a study on the cost and feasibility of providing a stipend to 
     members of the

[[Page H3315]]

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

     SEC. 703. IMPROVEMENT OF MEDICAL SERVICES FOR ACTIVATED 
                   MEMBERS OF THE READY RESERVE AND THEIR 
                   FAMILIES.

       (a) Requirement for TRICARE Coverage for Dependents of 
     Members of Reserve Components Called to Active Duty.--
     Paragraph (1) of section 1074(d) of title 10, United States 
     Code, is amended--
       (1) by inserting ``a dependent of'' after ``chapter,'';
       (2) by inserting ``a dependent of a member'' after 
     ``treated as being''; and
       (3) by striking ``the later of'' and all that follows 
     through the period at the end of subparagraph (B) and 
     inserting ``the date described in paragraph (3).''.
       (b) Authority for TRICARE Coverage for Members of Reserve 
     Components Called To Active Duty.--Section 1074(d) of such 
     title is further amended--
       (1) by striking paragraph (3);
       (2) by redesignating paragraph (2) as paragraph (4); and
       (3) by inserting after paragraph (1) the following new 
     paragraphs:
       ``(2) The Secretary of Defense may, beginning on the date 
     described in paragraph (3), provide 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, such medical and dental care (in addition to care for 
     which the member is eligible under section 1074a(f) of this 
     title or other provisions of law) the Secretary determines 
     appropriate.
       ``(3) The date referred to in paragraphs (1) and (2) with 
     respect to a member is the later of the date that is--
       ``(A) the date of the issuance of the delayed-effective-
     date active-duty order; or
       ``(B) 90 days before the date on which the period of active 
     duty is to commence under such order for that member.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 2005.

     SEC. 704. MODIFICATION OF WAIVER OF CERTAIN DEDUCTIBLES UNDER 
                   TRICARE PROGRAM.

       Section 1095d(a) of title 10, United States Code, is 
     amended in paragraphs (1) and (2) by striking ``less than one 
     year'' each place it appears and inserting ``more than 30 
     days''.

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

       Section 1079(h) of title 10, United States Code, is amended 
     by adding at the end of paragraph (4) the following new 
     subparagraph:
       ``(C) In the case of services billed to a dependent 
     referred to in subsection (a) of a member of a reserve 
     component who is ordered 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, the regulations shall provide that, in addition to 
     amounts otherwise payable by the United States, the Secretary 
     may pay the amount referred to in subparagraph (B)(i) for the 
     services.''.

     SEC. 706. EXTENSION OF TRANSITIONAL HEALTH CARE BENEFITS 
                   AFTER SEPARATION FROM ACTIVE DUTY.

       (a) Extension of Transitional Health Care Benefits.--
     Paragraph (3) of section 1145(a) of title 10, United States 
     Code, is amended to read as follows:
       ``(3) Transitional health care shall be available under 
     this subsection for a period beginning on the date on which 
     the member is separated from active duty and ending on the 
     earlier of--
       ``(A) 180 days after the date on which the member is 
     separated from active duty; or
       ``(B) the date on which the member and dependents of the 
     member are covered by a health plan sponsored by an 
     employer.''.
       (b) Limitation.--During the period beginning on January 1, 
     2005, and ending on September 30, 2005, not more than 
     $170,000,000 of the amount appropriated pursuant to the 
     authorization for operations and maintenance for the Defense 
     Health Program in section 303(a) may be used for transitional 
     health care under section 1145(a) of title 10, United States 
     Code, as amended by this section.
       (c) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to separations from active duty that 
     take effect on or after January 1, 2005.

                Subtitle B--Other Benefits Improvements

     SEC. 711. COVERAGE OF CERTAIN YOUNG CHILDREN UNDER TRICARE 
                   DENTAL PROGRAM.

       (a) Coverage of Certain Young Children.--Section 
     1076a(k)(2) of title 10, United States Code, is amended by 
     inserting after ``by reason of'' the following: ``the 
     dependent's young age on the date of death of the member 
     of''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on the date of the enactment of this Act.

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

       (a) Evaluation Requirement.--The Comptroller General shall 
     evaluate the effect of the Exceptional Family Member Program 
     (in this section referred to as ``EFMP'') on health and 
     support services in selected civilian communities near 
     military installations with a high concentration of EFMP 
     enrollees.
       (b) Matters Covered.--The evaluation under subsection (a) 
     shall include a discussion of the following:
       (1) Communities that have high concentrations of EFMP 
     enrollees that use State and local health and support 
     services.
       (2) Needs of EFMP enrollees, if any, that are not met by 
     State and local health and support services.
       (3) The burdens, financial and otherwise, placed on State 
     and local health and support services by EFMP enrollees and 
     their families.
       (4) The ability of the TRICARE program to meet the needs of 
     EFMP enrollees and their families.
       (5) Reasons for any limitations of the TRICARE program, the 
     EFMP, and State and local health and support services in 
     providing assistance to EFMP enrollees and their families.
       (6) Recommendations for more effectively meeting the needs 
     of EFMP enrollees and their families.
       (c) Communities Covered.--The evaluation under subsection 
     (a) shall examine no fewer than four civilian communities, as 
     determined by the Comptroller General, that have high 
     concentrations of EFMP enrollees and that are near several 
     military installations, including at least two military 
     installations with tenants from more than one of the Armed 
     Forces.
       (d) Definitions.--In this section:
       (1) The term ``health and support services'' means services 
     provided to children and other dependents with special needs, 
     including specialized day care, mental health day treatment 
     services, respite services, counseling, and other such 
     services provided for children and other dependents with 
     special needs.
       (2) The term ``TRICARE program'' has the meaning given that 
     term in section 1072(7) of title 10, United States Code.
       (e) Report.--Not later than March 31, 2005, the Comptroller 
     General shall submit to the Armed Services Committees of the 
     Senate and the House of Representatives a report on the 
     results of the evaluation required under subsection (a), with 
     findings and recommendations.

     SEC. 713. EXCEPTIONAL ELIGIBILITY FOR TRICARE PRIME REMOTE.

       Section 1079(p) of title 10, United States Code, is 
     amended--
       (1) by redesignating paragraph (4) as paragraph (5); and
       (2) by inserting after paragraph (3) the following new 
     paragraph:
       ``(4) The Secretary of Defense may provide for coverage of 
     a dependent referred to in subsection (a) who is not 
     described in paragraph (3) if the Secretary determines that 
     exceptional circumstances warrant such coverage.''.

     SEC. 714. TRANSITION TO HOME HEALTH CARE BENEFIT UNDER SUB-
                   ACUTE CARE PROGRAM.

       Section 1074j of title 10, United States Code, is amended 
     in subsection (b)(3)--
       (1) by inserting ``(A)'' after ``(3)''; and
       (2) by adding at the end the following:
       ``(B) The Secretary of Defense shall establish procedures 
     for the transition to and implementation of the home health 
     care benefit required by subparagraph (A). The Secretary may 
     provide in such procedures that covered beneficiaries who, 
     before the implementation of such benefit, received home 
     health care under this chapter in excess of such benefit, may 
     continue to receive such care for such time as the Secretary 
     considers appropriate.''.

     SEC. 715. REQUIREMENT RELATING TO PRESCRIPTION DRUG BENEFITS 
                   FOR MEDICARE-ELIGIBLE ENROLLEES UNDER DEFENSE 
                   HEALTH CARE PLANS.

       Section 1074g(a)(6) of title 10, United States Code, is 
     amended--
       (1) by inserting ``(A)'' after ``(6)''; and
       (2) by adding at the end the following:
       ``(B) For a medicare-eligible beneficiary, the cost-sharing 
     requirements may not be in excess of the cost-sharing 
     requirements applicable to all other beneficiaries covered by 
     section 1086 of this title. For purposes of the preceding 
     sentence, a medicare-eligible beneficiary is a beneficiary 
     eligible for health benefits under section 1086 of this title 
     pursuant to subsection (d)(2) of such section.''.

     SEC. 716. PROFESSIONAL ACCREDITATION OF MILITARY DENTISTS.

       Section 1077(c) of title 10, United States Code, is 
     amended--
       (1) by striking ``A'' and inserting ``(1) Except as 
     provided in paragraph (2), a''; and
       (2) by adding at the end the following new paragraph:
       ``(2)(A) Dependents who have not attained age 13 and who 
     are participating under a dental plan established under 
     section 1076a of this title may be treated by post-graduate 
     dental students in eligible dental treatment facilities if--
       ``(i)(I) treatment of pediatric dental patients is required 
     to comply with American Dental Association accreditation 
     standards; or

[[Page H3316]]

       ``(II) pediatric dental training is required to enable 
     post-graduate dental students to provide dental care for such 
     dependents outside the United States; and
       ``(ii) there are insufficient numbers of children eligible 
     to be provided dental care under section 1076(a) of this 
     title to meet such standards or training requirements.
       ``(B) The total number of dependents who may be treated 
     under this paragraph may not exceed 2,000 in any fiscal year.
       ``(C) In this paragraph, an eligible dental treatment 
     facility is a dental treatment facility with a post-graduate 
     dental education program accredited by the American Dental 
     Association.''.

     SEC. 717. ADDITION OF CERTAIN UNREMARRIED FORMER SPOUSES TO 
                   PERSONS ELIGIBLE FOR DENTAL INSURANCE PLAN OF 
                   RETIREES OF THE UNIFORMED SERVICES.

       (a) Eligibility of Certain Former Spouses for Dental 
     Coverage.--(1) Section 1076c(b) of title 10, United States 
     Code, is amended by adding at the end the following new 
     paragraph:
       ``(6) A person who--
       ``(i) is an unremarried former spouse of a member described 
     in paragraph (1) or (2);
       ``(i) is described in section 1072(2)(F)(i) of this title; 
     and
       ``(ii) does not have dental coverage under an employer-
     sponsored health plan.''.
       (b) Effective Date.--Section 1076c(b)(6) of title 10, 
     United States Code, as added by subsection (a), shall take 
     effect on the date of the enactment of this Act.

     SEC. 718. WAIVER OF COLLECTION OF PAYMENTS DUE FROM CERTAIN 
                   PERSONS UNAWARE OF LOSS OF CHAMPUS ELIGIBILITY.

       (a) Authority To Waive Collection.--The Secretary of 
     Defense may waive (in whole or in part) the collection of 
     payments otherwise due from a person described in subsection 
     (b) as a result of the receipt by the person of health 
     benefits under section 1086 of title 10, United States Code, 
     after the termination of the person's eligibility for such 
     benefits and may also authorize continued coverage of 
     benefits under section 1086 of such title for such person for 
     the period described in subsection (c).
       (b) Persons Eligible.--A person shall be eligible for 
     relief under subsection (a) if the person--
       (1) is a person described in paragraph (1) of subsection 
     (d) of section 1086, of title 10, United States Code;
       (2) in the absence of such paragraph, would have been 
     eligible for health benefits under such section;
       (3) at the time of the receipt of such benefits, satisfies 
     the criteria specified in subparagraph (B) of paragraph (2) 
     of such subsection; and
       (4) was unaware of the loss of eligibility to receive 
     health benefits at the time they were received.
       (c) Extent of Authority.--The authority to waive the 
     collection of payments and to continue coverage of benefits 
     under this section shall apply during the period beginning on 
     July 1, 1999, and ending on December 31, 2004, under terms 
     established by the Secretary of Defense.
       (d) Quarterly Reports.--(1) The Secretary of Defense shall 
     provide quarterly reports to the Committees on Armed Services 
     of the Senate and House of Representatives regarding--
       (A) efforts by the Department of Defense to identify 
     persons who satisfy the criteria specified in subparagraph 
     (B) of subsection (d)(2) of section 1086 of title 10, United 
     States Code, and would be eligible for health benefits under 
     such section if the criteria specified in subparagrpah (A) 
     were also satisfied; and
       (B) actions taken by the Department with respect to persons 
     identified under subparagraph (B) of this paragraph.
       (2) The first report under paragraph (1) shall be submitted 
     not later than 30 days after the end of the first quarter of 
     fiscal year 2005.

           Subtitle C--Planning, Programming, and Management

      SEC. 721. PILOT PROGRAM FOR TRANSFORMATION OF HEALTH CARE 
                   DELIVERY.

        (a) Findings.--(1) Congress finds the following:
       (A) Historically, providing military health care to 
     military beneficiaries has centered on building a military 
     medical treatment facility and providing a full range of 
     services on a military installation.
       (B) Traditionally, in many locations the majority of 
     military personnel and their dependents who are eligible 
     beneficiaries of the military health care system do not live 
     on military installations.
       (C) As the cost of repairing, replacing, recapitalizing, or 
     expanding aging military treatment facilities and maintaining 
     adequate health care services on military installations 
     increases, the Department of Defense will be challenged to 
     find new, more cost-effective ways of providing enhanced 
     health care for military and civilian beneficiaries of the 
     Department of Defense health care system.
       (2) In view of these findings, the Secretary of Defense is 
     directed to examine feasible and cost-effective methods for 
     leveraging and expanding non-military health care resources 
     to provide health care to military beneficiaries. 
     Furthermore, the Secretary of Defense shall conduct a pilot 
     program in accordance with this section.
       (b) Pilot Program Purposes.--The Secretary of Defense shall 
     conduct a pilot program at one or more military installations 
     for purposes of testing--
       (1) the feasibility and cost effectiveness of expanding use 
     of non-military health care resources, particularly in cases 
     in which such use would reduce or eliminate the need for 
     military medical construction projects;
       (2) initiatives that build cooperative health care 
     arrangements and agreements between military installations 
     and local and regional non-military health care systems; and
       (3) development of an integrated, long range business plan 
     for the delivery of health care services for military 
     beneficiaries, incorporating present and potential future 
     capabilities in the non-military health care sector.
       (c) Requirements of Pilot Program.--In conducting the pilot 
     program, the Secretary of Defense shall--
       (1) identify and analyze health care delivery options that 
     range from outsourcing all health care delivery services to 
     the private sector to providing some health care services in 
     military facilities located on the installation;
       (2) determine the cost avoidance or savings resulting from 
     innovative partnerships between the Department of Defense and 
     the private sector and limiting recapitalization costs in 
     military facilities;
       (3) study the potential, viability, cost efficiency, and 
     health care effectiveness of Department of Defense health 
     care providers delivering health care in civilian community 
     hospitals;
       (4) determine the opportunities for and barriers to 
     coordinating and leveraging the use of existing health care 
     resources, including Federal, State, local, and contractor 
     assets; and
       (5) develop recommendations for a model health care 
     delivery system that may be used at other military 
     installations.
       (d) Consultation Requirements.--The Secretary of Defense 
     shall develop the pilot program in consultation with the 
     Secretaries of the military departments, representatives from 
     the military installation selected for the pilot program, 
     Federal, State, and local entities, and the TRICARE managed 
     care support contractor with responsibility for that 
     installation.
       (e) Selection of Military Installation.--The pilot program 
     shall be implemented at one or more military installations 
     selected by the Secretary of Defense. At least one of the 
     selected military installations shall meet the following 
     criteria:
       (1) The military installation is an Army installation 
     located in a rural area.
       (2) The military installation has members of the Armed 
     Forces on active duty and members of reserve components of 
     the Armed Forces that use the installation as a training and 
     operational base, with members routinely deploying in support 
     of the global war on terrorism.
       (3) The number of members of the Armed Forces on active 
     duty permanently assigned to the military installation is 
     expected to increase over the next five years.
       (4) One or more partnerships exist at the military 
     installation with civilian health care entities in the form 
     of limited specialty care services in the military medical 
     treatment facility on the installation.
       (5) There is a military treatment facility on the 
     installation that does not have inpatient or trauma center 
     care capabilities.
       (6) There is a civilian community hospital within 15 miles 
     of the military installation with limited capability to 
     expand inpatient care beds, intensive care, and specialty 
     services.
       (7) There is no civilian hospital with a trauma center 
     within 50 miles from the military installation.
       (f) Duration of Pilot Program.--Implementation of the pilot 
     program developed under this subsection shall begin not later 
     than May 1, 2005, and shall be conducted during fiscal years 
     2005, 2006, and 2007.
       (g) Funds.--For fiscal year 2005, not more than $5,000,000 
     of the amount appropriated pursuant to the authorization for 
     operations and maintenance for the Defense Health Program in 
     section 303(a) may be used to conduct the pilot program under 
     this section.
       (h) Reports.--Not later than July 1, 2005, the Secretary of 
     Defense shall submit an interim report to the Committees on 
     Armed Services of the Senate and of the House of 
     Representatives describing the details of the pilot program. 
     Not later than July 1, 2007, the Secretary of Defense shall 
     submit to such committees a final report describing the 
     results of the pilot program with recommendations for a model 
     health care delivery system for other military installations.

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

       (a) Study.--The Secretary of Defense shall conduct a study 
     of the feasibility, and of the desirability, of providing 
     that a member of the uniformed services retired under chapter 
     61 of title 10, United States Code, for a combat-related 
     disability (as defined in section 1413a(e) of that title) 
     shall be provided reimbursement for the travel expenses of 
     such member for travel, during the two-year period beginning 
     on the date of the retirement of the member, to a military 
     treatment facility for medical care. The Secretary shall 
     include in that study consideration of whether reimbursement 
     under such a plan should, as nearly as practicable, be under 
     the same terms and conditions, and at the same rate, as apply 
     to beneficiary travel reimbursement provided by the Secretary 
     of Veterans Affairs under section 111 of title 38, United 
     States Code.
       (b) Report.--The Secretary of Defense shall submit to the 
     congressional defense committees a report providing the 
     results of the study under subsection (a). Such report shall 
     be submitted not later than March 1, 2005.

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

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

     SEC. 801. RAPID ACQUISITION AUTHORITY TO RESPOND TO COMBAT 
                   EMERGENCIES.

       (a) In General.--Chapter 141 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

[[Page H3317]]

     ``Sec. 2410p. Rapid acquisition authority to respond to 
       combat emergencies

       ``(a) Rapid Acquisition Authority.--The Secretary of 
     Defense may rapidly acquire, in accordance with this section, 
     equipment needed by a combatant commander to eliminate a 
     combat capability deficiency that has resulted in combat 
     fatalities.
       ``(b) Process for Rapid Acquisition.--Not later than 30 
     days after the date of the enactment of this section, the 
     Secretary of Defense shall develop a process for the rapid 
     acquisition authority provided by subsection (a) and submit 
     to Congress a detailed explanation of the process, including 
     procedures to be followed in carrying out the process. The 
     process shall provide for the following:
       ``(1) A requirement that the process may be used only to 
     acquire the minimum amount of equipment needed until the 
     needs of the combatant commander can be fulfilled under 
     existing acquisition statutes, policies, directives, and 
     regulations.
       ``(2) A goal of awarding a contract for the equipment 
     within 15 days after receipt of a request from a commander.
       ``(3) In a case in which the equipment cannot be acquired 
     without an extensive delay, a requirement for an interim 
     solution to minimize the combat capability deficiency and 
     combat fatalities until the equipment can be acquired.
       ``(4) Waiver of the applicability of all policies, 
     directives, and regulations related to--
       ``(A) the establishment of the requirement for the 
     equipment;
       ``(B) the research, development, test, and evaluation of 
     the equipment; and
       ``(C) the solicitation and selection of sources, and the 
     award of the contract, for procurement of the equipment.
       ``(5) Such other procedures or requirements as the 
     Secretary considers appropriate.
       ``(c) Waiver of Certain Statutes.--For purposes of 
     exercising the authority provided by subsection (a) with 
     respect to equipment, laws relating to the following shall 
     not apply:
       ``(A) The establishment of the requirement for the 
     equipment.
       ``(B) The research, development, test, and evaluation of 
     the equipment.
       ``(C) The solicitation and selection of sources, and the 
     award of the contract, for procurement of the equipment.
       ``(d) Limitations.--The rapid acquisition authority 
     provided by subsection (a) may be used only--
       ``(1) after the Secretary of Defense, without delegation, 
     determines in writing that there exists a combat capability 
     deficiency that has resulted in combat fatalities; and
       ``(2) to acquire equipment in an amount aggregating not 
     more than $100,000,000 during a fiscal year.
       ``(e) Source of Funds.--For acquisitions under this section 
     to be made during any fiscal year, the Secretary may use any 
     funds made available to the Department of Defense for that 
     fiscal year.
       ``(f) Notification to Congress After Each Use of 
     Authority.--The Secretary of Defense shall notify the 
     congressional defense committees within 15 days after each 
     use of the authority provided by subsection (a). Each such 
     notice shall identify the equipment to be acquired, the 
     amount to be expended for such acquisition, and the source of 
     funds for such acquisition.
       ``(g) Combatant Commander.--In this section, the term 
     `combatant commander' means the commander of a unified 
     combatant command with authority for the conduct of 
     operations in a specific area of responsibility or who 
     otherwise has authority to conduct operations at the 
     direction of the President or Secretary of Defense.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2410p. Rapid acquisition authority to respond to combat 
              emergencies.''.

     SEC. 802. DEFENSE ACQUISITION WORKFORCE CHANGES.

       (a) Selection Criteria and Procedures.--Section 
     1732(b)(1)(A) of title 10, United States Code, is amended by 
     striking ``within grade GS-13 or above of the General 
     Schedule'' and inserting ``in any position designated by the 
     Secretary of Defense''.
       (b) Critical Acquisition Positions.--Section 1733 of such 
     title is amended by striking subsection (b) and inserting the 
     following:
       ``(b) Designation of Critical Acquisition.--(1) The 
     Secretary of Defense shall designate the acquisition 
     positions in the Department of Defense that are critical 
     acquisition positions. Such positions shall include the 
     following:
       ``(A) Program executive officer.
       ``(B) Program manager of a major defense acquisition 
     program (as defined in section 2430 of this title) or of a 
     significant nonmajor defense acquisition program (as defined 
     in section 1737(a)(3) of this title).
       ``(C) Deputy program manager of a major defense acquisition 
     program.
       ``(D) Any other acquisition position of significant 
     responsibility determined by the Secretary to be critical.
       ``(2) The Secretary shall annually publish a list of the 
     positions designated under this subsection.''.
       (c) Scholarship Programs.--Section 1742 of such title is 
     amended--
       (1) by inserting ``(a) Programs.--'' at the beginning of 
     the text; and
       (2) by adding at the end the following new subsection:
       ``(b) Scholarship Program Requirements.--With respect to 
     any scholarship program conducted under this section, the 
     Secretary of Defense and the participant shall agree in 
     writing to the terms of the scholarship. The agreement shall 
     include the obligations of the Secretary and the participant, 
     as well as actions available for either party to take if 
     there is a failure to meet the obligations under the 
     agreement.''.

     SEC. 803. LIMITATION ON TASK AND DELIVERY ORDER CONTRACTS.

       Subsection 2304a(f) of title 10, United States Code, is 
     amended to read as follows:
       ``(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 any base period up to five 
     years and may extend the contract period for one or more 
     successive periods pursuant to an option provided in the 
     contract or a modification to the contract.''.

     SEC. 804. FUNDING FOR CONTRACT CEILINGS FOR CERTAIN MULTIYEAR 
                   PROCUREMENT CONTRACTS.

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

     SEC. 805. INCREASED THRESHOLD FOR REQUIRING CONTRACTORS TO 
                   PROVIDE SPECIFIED EMPLOYEE INFORMATION TO 
                   COOPERATIVE AGREEMENT HOLDERS.

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

     SEC. 806. EXTENSION OF AUTHORITY FOR USE OF SIMPLIFIED 
                   ACQUISITION PROCEDURES.

       Section 4202(e) of the Clinger-Cohen Act (division D of 
     Public Law 104-106; 110 Stat. 652; 10 U.S.C. 2304 note) is 
     amended by striking ``January 1, 2006'' and inserting 
     ``October 1, 2009''.

     SEC. 807. AUTHORITY TO ADJUST ACQUISITION-RELATED DOLLAR 
                   THRESHOLDS FOR INFLATION.

       (a) Inflation Adjustment Authority.--The FAR Council and 
     the heads of executive agencies may adjust the dollar 
     thresholds in procurement laws in order to maintain the 
     constant dollar value of the threshold, taking into account 
     the effect of inflation on the threshold.
       (b) Limitation on Exercise of Authority.--Adjustments of 
     dollar thresholds under subsection (a) may be carried out--
       (1) by the FAR Council only with respect to procurement 
     laws that apply to executive agencies generally; and
       (2) by the head of an executive agency only with respect to 
     procurement laws that apply to that agency exclusively.
       (c) Additional Requirements.--In adjusting a threshold 
     under subsection (a), the FAR Council and the head of an 
     agency shall--
       (2) consult with the Director of the Office of Management 
     and Budget;
       (3) round the threshold, to facilitate implementation; and
       (4) publish the adjusted threshold in the Federal Register.
       (d) Exclusions.--This section does not apply to--
       (1) dollar thresholds in sections 3141 through 3144, 3146, 
     and 3147 of title 40, United States Code;
       (2) dollar thresholds in the Service Contract Act of 1965 
     (41 U.S.C. 351, et seq.); or
       (3) dollar thresholds established by the United States 
     Trade Representative pursuant to title III of the Trade 
     Agreements Act of 1979 (19 U.S.C. 2511 et seq.).
       (e) Definitions.--In this section:

[[Page H3318]]

       (1) The term ``procurement law'' means any provision of law 
     that sets forth policies, procedures, requirements, or 
     restrictions for the procurement of property or services by 
     the Federal Government.
       (2) The terms ``executive agency'' and ``procurement'' have 
     the meanings provided by section 4(1) of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 403(1))
       (3) The term ``FAR Council'' means the Federal Acquisition 
     Regulatory Council established under section 25 of the Office 
     of Federal Procurement Policy Act (41 U.S.C. 421)).

      Subtitle B--United States Defense Industrial Base Provisions

     SEC. 811. DEFENSE TRADE RECIPROCITY.

       (a) In General.--Chapter 148 of title 10, United States 
     Code, is amended by inserting after section 2532 the 
     following new section:

     ``Sec. 2532a. Defense trade reciprocity

       ``(a) Policy.--(1) It is the policy of Congress that 
     procurement regulations used in the conduct of trade in 
     defense articles and defense services shall be based on the 
     principle of fair trade and reciprocity consistent with 
     United States national security, including the need to ensure 
     comprehensive manufacturing capability in the United States 
     defense industrial base for military system essential items.
       ``(2) The Secretary of Defense shall make every effort to 
     ensure that the policies and practices of the Department of 
     Defense reflect the goal of establishing an equitable trading 
     relationship between the United States and its foreign 
     defense trade partners, including ensuring that United States 
     firms and United States employment in the defense sector are 
     not disadvantaged by unilateral procurement practices by 
     foreign governments, such as the imposition of offset 
     agreements or similar requirements in defense procurements by 
     those governments. In pursuing this goal, the Secretary 
     shall--
       ``(A) develop a comprehensive defense acquisition trade 
     policy that provides the necessary guidance and incentives 
     for the elimination of offset agreements as an accepted 
     practice in defense trade; and
       ``(B) review and make necessary modifications to existing 
     acquisition policies and strategies, and review and seek to 
     make necessary modifications to existing memoranda of 
     understanding, cooperative project agreements, or related 
     agreements with foreign defense trade partners, to reflect 
     this goal.
       ``(b) Requirement.--The Secretary of Defense may not enter 
     into a contract, or approve or permit any subcontract under a 
     contract entered into by the Department of Defense, for the 
     procurement of any defense article or defense service from a 
     foreign firm unless the country in which the foreign firm 
     performs substantially all of its manufacturing, production, 
     and research and development activities in the performance of 
     the contract (or subcontract) agrees to apply offset 
     agreements to the procurement of defense articles and defense 
     services from the United States firms in the same manner and 
     to the same degree as such agreements are applied by the 
     Department of Defense to the procurement of defense articles 
     and defense services from that country.
       ``(c) Exception.--Subsection (b) does not apply to a 
     contract or subcontract for the procurement of a defense 
     article or defense service from a foreign firm if the 
     Secretary of Defense determines in writing, with respect to 
     the specific contract or subcontract, that an exception to 
     subsection (b) is necessary for the Department to be able to 
     meet national security objectives.
       ``(d) Notification Required When Exception Applied.--The 
     Secretary of Defense may not apply an exception under 
     subsection (c) until--
       ``(1) a notification of the intent to apply such exception 
     is submitted to the congressional defense committees and 
     published in the Federal Register; and
       ``(2) a period of 30 days has expired after the date on 
     which such notification is so submitted and published.
       ``(e) Authority to Apply Exception Not Delegable.--The 
     authority of the Secretary to apply the exception under 
     subsection (c) may not be delegated to any officer or 
     employee in a position at a level lower than the position of 
     the Under Secretary of Defense for Acquisition, Technology, 
     and Logistics.-
       ``(f) Regulations.--The Secretary shall prescribe 
     regulations to implement this section in the Department of 
     Defense supplement to the Federal Acquisition Regulation.
       ``(g) Effective Date.--This section and the regulations 
     prescribed under this section shall apply to contracts and 
     subcontracts entered into on and after the date occurring one 
     year after the date of the enactment of this Act.
       ``(h) Definitions.--In this section:
       ``(1) The term `foreign firm' means a business entity that 
     performs substantially all of its manufacturing, production, 
     and research and development activities outside of the United 
     States.
       ``(2) The term `United States firm' means a business entity 
     that performs substantially all of its manufacturing, 
     production, and research and development activities in the 
     United States.
       ``(3) The term `foreign defense trade partner' means a 
     foreign country with respect to which there is--
       ``(A) a memorandum of understanding or related agreement 
     described in section 2531(a) of title 10, United States Code; 
     or
       ``(B) a cooperative project agreement described in section 
     27 of the Arms Export Control Act (22 U.S.C. 2767).
       ``(4) The term `offset agreement' has the meaning provided 
     that term by section 36(e) of the Arms Export Control Act (22 
     U.S.C. 2776(e)).
       ``(5) The terms `defense article' and `defense service' 
     have the meanings provided those terms by section 47(7) of 
     the Arms Export Control Act (22 U.S.C. 2794(7)).
       ``(6) The term `military system essential item' means an 
     item on the military system essential item breakout list 
     produced pursuant to section 813(b) of the National Defense 
     Authorization Act for Fiscal Year 2004 (P.L. 108-136; 117 
     Stat. 1544).''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2532a. Defense trade reciprocity.''.

     SEC. 812. AMENDMENTS TO DOMESTIC SOURCE REQUIREMENTS.

       (a) Notice.--Section 2533a of title 10, United States Code, 
     is amended by adding at the end the following new subsection:
       ``(k) Notification Required When Certain Exceptions 
     Applied.--(1) Funds appropriated or otherwise available to 
     the Department of Defense may not be used to enter into a 
     contract to procure an item described in subsection (b) 
     pursuant to an exception set forth in subsection (c) or (e) 
     until--
       ``(A) a notification of the intent to apply such exception 
     is submitted to Congress and posted on the website maintained 
     by the General Services Administration known as 
     FedBizOpps.gov (or any successor site); and
       ``(B) a period of 15 days has expired after the date on 
     which such notification is so submitted and published.
       ``(2) In any case in which the Secretary of Defense or the 
     Secretary of the military department concerned intends to 
     apply or applies the exception set forth in subsection 
     (d)(1), the Secretary concerned shall submit to Congress a 
     notification of such intent or such application during the 
     period beginning six months before the date of application of 
     such exception and ending six months after the date of 
     application of such exception.''.
       (b) Clothing Materials and Components Covered.--Subsection 
     (b) of section 2533a of title 10, United States Code, is 
     amended in paragraph (1)(B) by inserting before the semicolon 
     the following: ``and the materials and components thereof, 
     other than sensors, electronics, or other items added to, and 
     not normally associated with, clothing (and the materials and 
     components thereof)''.

     SEC. 813. THREE-YEAR EXTENSION OF RESTRICTION ON ACQUISITION 
                   OF POLYACRYLONITRILE (PAN) CARBON FIBER FROM 
                   FOREIGN SOURCES.

       The Secretary of Defense shall delay by three years the 
     phase-out of the restriction on acquisition of 
     polyacrylonitrile (PAN) carbon fiber from foreign sources 
     (described in subpart 225.7103 of the Department of Defense 
     supplement to the Federal Acquisition Regulation). In 
     implementing such delay, the Secretary shall revise the 
     appplicable regulations to ensure that such restriction 
     applies to--
       (1) solicitations and contracts issued on or before May 31, 
     2006, for major systems that are not yet in production; and
       (2) solicitations and contracts issued during the period 
     beginning June 1, 2006, and ending May 31, 2008, for major 
     systems that are not yet in engineering and manufacturing 
     development.

     SEC. 814. GRANT PROGRAM FOR DEFENSE CONTRACTORS TO IMPLEMENT 
                   STRATEGIES TO AVOID OUTSOURCING OF JOBS.

       (a) Grant Program Authorized.--The Secretary of Defense may 
     make grants under this section for fiscal year 2005 to 
     qualified defense contractor groups for the purposes 
     described in subsection (b).
       (b) Grant Purposes.--A grant may be made under this section 
     for the purpose of implementing a strategy to avoid the 
     outsourcing of jobs by a defense contractor, including the 
     following strategies:
       (1) Cost-cutting measures.
       (2) Retraining programs.
       (3) Technology development.
       (4) Plant upgrades.
       (c) Application.--A grant may not be awarded under this 
     section unless an application is submitted to, and approved 
     by, the Secretary. Such an application--
       (1) shall be submitted by a qualified defense contractor 
     group in such form and manner as the Secretary may require; 
     and
       (2) shall contain--
       (A) a description of the strategy proposed for avoiding the 
     outsourcing of at least 10 jobs in the performance of a 
     defense contract by the defense contractor concerned; and
       (B) such other information as the Secretary may require.
       (d) Definitions.--In this section:
       (1) The term ``qualified defense contractor group'', with 
     respect to a defense contractor, is a group or person 
     representing--
       (A) management of the contractor;
       (B) a labor organization that represents employees of the 
     contractor; or
       (C) employees of the contractor.
       (2) The term ``outsourcing'', with respect to a defense 
     contract, includes the performance outside the United States 
     of work under the contract.
       (e) Federal Share.--The Federal share of the costs of the 
     strategy carried out with a grant under this section may not 
     exceed 50 percent.
       (f) Use of Defense Industrial Capabilities Fund for 
     Grants.--(1) Notwithstanding section 814(c) of the National 
     Defense Authorization Act for Fiscal Year 2004 (P.L. 108-136; 
     117 Stat. 1545), amounts in the Defense Industrial Base 
     Capabilities Fund may be used for grants under this section.
       (2) For fiscal year 2005, up to $50,000,000 of amounts 
     available in such Fund may be used to carry out this section.
       (g) Authorization of Funds.--There are authorized to be 
     appropriated to the Defense Industrial Base Capabilities Fund 
     $50,000,000 for purposes of providing grants under this 
     section.

[[Page H3319]]

     SEC. 815. PREFERENCE FOR DOMESTIC FREIGHT FORWARDING 
                   SERVICES.

       (a) Preference.--In the procurement of transportation 
     services described in subsection (b), the Secretary of 
     Defense shall give preference to any freight forwarder that--
       (1) certifies to the Department of Defense that it is owned 
     and controlled by citizens of the United States; and
       (2) offers services at fair and reasonable rates.
       (b) Services Covered.--Subsection (a) applies to 
     transportation services to, from, or within Iraq or 
     Afghanistan, and warehousing, logistics, or other similar 
     services performed within Iraq or Afghanistan.

                 Subtitle C--Other Acquisition Matters

     SEC. 821. SUSTAINMENT AND MODERNIZATION PLANS FOR EXISTING 
                   SYSTEMS WHILE REPLACEMENT SYSTEMS ARE UNDER 
                   DEVELOPMENT.

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

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

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

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

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

     SEC. 822. REVIEW AND DEMONSTRATION PROJECT RELATING TO 
                   CONTRACTOR EMPLOYEES.

       (a) General Review.--(1) The Secretary of Defense shall 
     conduct a review of policies, procedures, practices, and 
     penalties of the Department of Defense relating to employees 
     of defense contractors for purposes of ensuring that the 
     Department of Defense is in compliance with Executive Order 
     No. 12989 (relating to a prohibition on entering into 
     contracts with contractors that are not in compliance with 
     the Immigration and Nationality Act).
       (2) In conducting the review, the Secretary shall--
       (A) identify potential weaknesses and areas for improvement 
     in existing policies, procedures, practices, and penalties;
       (B) develop and implement reforms to strengthen, upgrade, 
     and improve policies, procedures, practices, and penalties of 
     the Department of Defense and its contractors; and
       (C) review and analyze reforms developed pursuant to this 
     paragraph to identify for purposes of national implementation 
     those which are most efficient and effective.
       (3) The review under this subsection shall be completed not 
     later than 180 days after the date of the enactment of this 
     Act.
       (b) Demonstration Project.--The Secretary of Defense shall 
     conduct a demonstration project in accordance with this 
     section, in one or more regions selected by the Secretary, 
     for purposes of promoting greater contracting opportunities 
     for contractors offering effective, reliable staffing plans 
     to perform defense contracts that ensure all contract 
     personnel employed for such projects, including management 
     employees, professional employees, craft labor personnel, and 
     administrative personnel, are lawful residents or persons 
     properly authorized to be employed in the United States and 
     properly qualified to perform services required under the 
     contract. The demonstration project shall focus on contracts 
     for construction, renovation, maintenance, and repair 
     services for military installations.
       (c) Demonstration Project Procurement Procedures.--As part 
     of the demonstration project under subsection (b), the 
     Secretary of Defense shall conduct a competition in which 
     there is a provision in contract solicitations and request 
     for proposal documents to require significant weight or 
     credit be allocated to--
       (1) reliable, effective workforce programs offered by 
     prospective contractors that provide background checks and 
     other measures to ensure the contractor is in compliance with 
     the Immigration and Nationality Act; and
       (2) reliable, effective project staffing plans offered by 
     prospective contractors that specify for all contract 
     employees (including management employees, professionals, and 
     craft labor personnel) the skills, training, and 
     qualifications of such persons and the labor supply sources 
     and hiring plans or procedures used for employing such 
     persons.
       (d) Implementation of Demonstration Project.--The Secretary 
     of Defense shall begin operation of the demonstration project 
     required under this section after completion of the review 
     under subsection (a), but in no event later than 270 days 
     after the date of the enactment of this Act.
       (e) Report on Demonstration Project.--Not later than six 
     months after award of a contract under the demonstration 
     project, the Secretary of Defense shall submit to the 
     Committees on Armed Services of the Senate and House of 
     Representatives a report setting forth a review of the 
     demonstration project and recommendations on the actions, if 
     any, that can be implemented to ensure compliance by the 
     Department of Defense with Executive Order No. 12989.
       (f) Definition.--In this section, the term ``military 
     installation'' means a base, camp, post, station, yard, 
     center, homeport facility for any ship, or other activity 
     under the jurisdiction of the Department of Defense, 
     including any leased facility, which is located within any of 
     the several States, the District of Columbia, the 
     Commonwealth of Puerto Rico, American Samoa, the Virgin 
     Islands, or Guam. Such term does not include any facility 
     used primarily for civil works, rivers and harbors projects, 
     or flood control projects.

     SEC. 823. DEFENSE ACQUISITION WORKFORCE LIMITATION AND 
                   REPORTS.

       (a) Defense Acquisition and Support Personnel Limitation.--
     (1) Effective October 1, 2005, the number of defense 
     acquisition and support personnel in the Department of 
     Defense may not exceed 95 percent of the baseline number.
       (2) For purposes of paragraph (1), the baseline number is 
     the number of defense acquisition and support personnel as of 
     October 1, 2004.
       (3) All determinations of personnel strengths for purposes 
     of this section shall be on the basis of full-time equivalent 
     positions.
       (b) GAO Study and Report on Defense Acquisition and Support 
     Personnel.--(1) The Comptroller General shall conduct a study 
     of Department of Defense management of defense acquisition 
     and support personnel. The study shall include--

[[Page H3320]]

       (A) an analysis of the number and structure of defense 
     acquisition and support personnel; and
       (B) an assessment of the size, mission, composition, and 
     projected workload requirements of defense acquisition and 
     support personnel.
       (2) 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 study 
     conducted under this subsection not later than March 1, 2005.
       (c) Defense Acquisition University Study and Report on 
     Defense Acquisition and Support Personnel.--(1) The Defense 
     Acquisition University shall conduct a study of all the 
     training programs offered to defense acquisition and support 
     personnel.
       (2) The Defense Acquisition University shall submit to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives a report on the results of the study 
     conducted under this subsection not later than March 1, 2005. 
     The report shall include--
       (A) the number of individuals currently certified within 
     the field they are working in; and
       (B) recommendations on how to improve education and 
     productivity for defense acquisition and support personnel, 
     including recommendations for additional training program 
     requirements.
       (d) 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.

     SEC. 824. PROVISION OF INFORMATION TO CONGRESS TO ENHANCE 
                   TRANSPARENCY IN CONTRACTING.

       Upon request of the chairman or ranking member of the 
     Committee on Armed Services of the Senate or House of 
     Representatives, the Secretary of Defense shall provide, with 
     respect to any contract or task or delivery order under a 
     task or delivery order contract entered into by the 
     Department of Defense, within 14 days after receipt of the 
     request, unredacted copies of any documents required to be 
     maintained in the contracting office contract file, the 
     contract administration office contract file, and the paying 
     office contract file pursuant to subpart 4.8 of the Federal 
     Acquisition Regulation, including--
       (1) copies of the contract and all modifications;
       (2) orders issued under the contract;
       (3) justifications and approvals;
       (4) any government estimate of contract price;
       (5) source selection documentation;
       (6) cost or price analysis;
       (7) audit reports;
       (8) justification for type of contract;
       (9) authority for deviations from regulations, statutory 
     requirements, or other restrictions;
       (10) bills, invoices, vouchers, and supporting documents; 
     and
       (11) records of payments or receipts.

                        TITLE IX--DEPARTMENT OF 
                  DEFENSE ORGANIZATION AND MANAGEMENT

     SEC. 901. CHANGE IN TITLE OF SECRETARY OF THE NAVY TO 
                   SECRETARY OF THE NAVY AND MARINE CORPS.

       (a) Change in Title.--The position of the Secretary of the 
     Navy is hereby redesignated as the Secretary of the Navy and 
     Marine Corps.
       (b) References.--Any reference to the Secretary of the Navy 
     in any law, regulation, document, record, or other paper of 
     the United States shall be considered to be a reference to 
     the Secretary of the Navy and Marine Corps.

     SEC. 902. TRANSFER OF CENTER FOR THE STUDY OF CHINESE 
                   MILITARY AFFAIRS FROM NATIONAL DEFENSE 
                   UNIVERSITY TO UNITED STATES-CHINA ECONOMIC AND 
                   SECURITY REVIEW COMMISSION.

       (a) Transfer.--The Center for the Study of Chinese Military 
     Affairs established by section 914 of the National Defense 
     Authorization Act for Fiscal Year 2000 (10 U.S.C. 2165 note) 
     is transferred from the National Defense University of the 
     Department of Defense to the United States-China Economic and 
     Security Review Commission.
       (b) Conforming Amendment.--Subsection (a) of section 914 of 
     the National Defense Authorization Act for 2000 (10 U.S.C. 
     2165 note) is amended to read as follows:
       ``(a) Establishment.--There shall be a Center for the Study 
     of Chinese Military Affairs organized under the United 
     States-China Economic and Security Review Commission 
     established by section 1238 of the Floyd D. Spence National 
     Defense Authorization Act for Fiscal Year 2001 (22 U.S.C. 
     7002).''.
       (c) Repeal of Obsolete Provisions.--Such section is further 
     amended by striking subsections (d) and (e).
       (d) Technical Amendments to Commission Charter.--(1) 
     Section 1238(c) of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (22 U.S.C. 7002) is 
     amended--
       (1) in paragraph (1)--
       (A) by striking ``(beginning in 2002)''; and
       (B) by adding at the end the following new sentence: ``The 
     report shall include a full discussion of the activities of 
     the Commission under each of the subparagraphs of paragraph 
     (2).''; and
       (2) in paragraph (2)--
       (A) by striking the matter preceding subparagraph (A) and 
     inserting the following:
       ``(2) Areas of focus.--The Commission shall focus, in lieu 
     of any other area of work or study, on the following:''; and
       (B) by replacing subparagraphs (A) through (J) with the 
     text of subparagraphs (A) through (I) of section 2(c)(2) of 
     division P of Public Law 108-7 (22 U.S.C. 7002 note).
       (2) Section 2(c)(2) of division P of Public Law 108-7 (22 
     U.S.C. 7002 note) is repealed.
       (e) Effective Date.--Subsection (a) and the amendment made 
     by subsection (b) shall take effect at the end of the 90-day 
     period beginning on the date of the enactment of this Act.

     SEC. 903. TRANSFER TO SECRETARY OF THE ARMY OF RESPONSIBILITY 
                   FOR ASSEMBLED CHEMICAL WEAPONS ALTERNATIVES 
                   PROGRAM.

       Effective January 1, 2005, the text of section 142 of the 
     Strom Thurmond National Defense Authorization Act for Fiscal 
     Year 1999 (Public Law 105-261; 50 U.S.C. 1521 note) is 
     amended to read as follows:
       ``(a) Program Management.--(1) The program manager for the 
     Assembled Chemical Weapons Alternatives program shall report 
     to the Secretary of the Army.
       ``(2) The Secretary of the Army shall provide for that 
     program to be managed as part of the management organization 
     within the Department of the Army specified in section 
     1412(e) of Public Law 99-145 (50 U.S.C. 1521(e)).
       ``(b) Continued Implementation of Previously Selected 
     Alternative Technologies.--(1) In carrying out the 
     destruction of lethal chemical munitions at Pueblo Chemical 
     Depot, Colorado, the Secretary of the Army shall continue to 
     implement fully the alternative technology for such 
     destruction at that depot selected by the Under Secretary of 
     Defense for Acquisition, Technology, and Logistics on July 
     16, 2002.
       ``(2) In carrying out the destruction of lethal chemical 
     munitions at Blue Grass Army Depot, Kentucky, the Secretary 
     of the Army shall continue to implement fully the alternative 
     technology for such destruction at that depot selected by the 
     Under Secretary of Defense for Acquisition, Technology, and 
     Logistics on February 3, 2003.''.

     SEC. 904. MODIFICATION OF OBLIGATED SERVICE REQUIREMENTS 
                   UNDER NATIONAL SECURITY EDUCATION PROGRAM.

       (a) In General.--Subsection (b)(2) of section 802 of the 
     David L. Boren National Security Education Act of 1991 (50 
     U.S.C. 1902) is amended by striking subparagraphs (A) and 
     (B), as added by section 925(a) of the National Defense 
     Authorization Act for Fiscal Year 2004 (Public Law 108-136; 
     117 Stat. 1578), and inserting the following:
       ``(A) in the case of a recipient of a scholarship, as soon 
     as practicable but in no case later than three years after 
     the completion by the recipient of the study for which 
     scholarship assistance was provided under the program, the 
     recipient shall work for a period of one year--
       ``(i) in a national security position that the Secretary 
     certifies is appropriate to use the unique language and 
     region expertise acquired by the recipient pursuant to such 
     study in the Department of Defense, in any element of the 
     intelligence community, in the Department of Homeland 
     Security, or in the Department of State; or
       ``(ii) in such a position in any other Federal department 
     or agency not referred to in clause (i) if the recipient 
     demonstrates to the Secretary that no position is available 
     in a Federal department or agency specified in clause (i); or
       ``(B) in the case of a recipient of a fellowship, as soon 
     as practicable but in no case later than two years after the 
     completion by the recipient of the study for which fellowship 
     assistance was provided under the program, the recipient 
     shall work for a period equal to the duration of assistance 
     provided under the program, but in no case less than one 
     year--
       ``(i) in a position described in subparagraph (A)(i) that 
     the Secretary certifies is appropriate to use the unique 
     language and region expertise acquired by the recipient 
     pursuant to such study; or
       ``(ii) in such a position in any other Federal department 
     or agency not referred to in clause (i) if the recipient 
     demonstrates to the Secretary that no position is available 
     in a Federal department or agency specified in clause (i); 
     and''.
       (b) Regulations.--The Secretary of Defense shall prescribe 
     regulations to carry out the amendment made by subsection 
     (a). In prescribing such regulations, the Secretary shall 
     establish standards that recipients of scholarship and 
     fellowship assistance under the program under such section 
     802 are required to demonstrate to satisfy the requirement of 
     a good faith effort to gain employment as required under 
     subparagraphs (A) and (B) of subsection (b)(2) of such 
     section.
       (c) Applicability.--(1) The amendment made by subsection 
     (a) shall apply with respect to service agreements entered 
     into under the David L. Boren National Security Education Act 
     of 1991 on or after the date of the enactment of this Act.
       (2) The amendment made by subsection (a) shall not affect 
     the force, validity, or terms of any service agreement 
     entered into under the David L. Boren National Security 
     Education Act of 1991 before the date of the enactment of 
     this Act that is in force as of that date.

     SEC. 905. CHANGE OF MEMBERSHIP OF CERTAIN COUNCILS.

       (a) Membership of Armed Forces Policy Council.--Section 
     171(a) of title 10, United States Code, is amended by adding 
     at the end the following new paragraph:
       ``(14) The Commandant of the Coast Guard, for discussion of 
     matters pertaining to the Coast Guard.''.
       (b) Membership of Council Under Section 179.--Subsection 
     (a) of section 179 of title 10, United States Code, is 
     amended by adding at the end the following new paragraph:
       ``(4) The Under Secretary of Defense for Policy.''.

[[Page H3321]]

       (b) Conforming and Clarifying Amendments.--Such subsection 
     is further amended in the matter preceding paragraph (1)--
       (1) by striking ``Joint''; and
       (2) by striking ``composed of three members as follows:'' 
     and inserting ``operated as a joint activity of the 
     Department of Defense and the Department of Energy. The 
     membership of the Council is comprised of the following 
     officers of those departments:''.
       (c) Other Technical and Clarifying Amendments.--Such 
     section is further amended as follows:
       (1) Subsection (c)(3)(B) is amended by striking 
     ``appointed'' and inserting ``designated''.
       (2) Subsection (e) is amended by striking ``In addition'' 
     and all that follows through ``also'' and inserting ``The 
     Council shall''.
       (3) Subsection (f) is amended by striking ``Committee on'' 
     the first place it appears and all that follows through 
     ``Representatives'' and inserting ``congressional defense 
     committees''.
       (d) Stylistic Amendments.--Such section is further amended 
     as follows:
       (1) Subsection (a) is amended by inserting ``Establishment; 
     Membership.--'' after ``(a)''.
       (2) Subsection (b) is amended by inserting ``Chairman; 
     Meetings.--'' after ``(b)''.
       (3) Subsection (c) is amended by inserting ``Staff and 
     Administrative Services; Staff Director.--'' after ``(c)''.
       (4) Subsection (d) is amended by inserting 
     ``Responsibilities.--'' after ``(d)''.
       (5) Subsection (e) is amended by inserting ``Report on 
     Difficulties Relating to Safety or Reliability.--'' after 
     ``(e)''.
       (6) Subsection (f) is amended by inserting ``Annual 
     Report.--'' after ``(f)''.
       (e) Further Conforming Amendment.--Section 3212(e) of the 
     National Nuclear Security Administration Act (50 U.S.C. 
     2402(e)) is amended--
       (1) by striking ``Joint'' in the subsection heading; and
       (2) by striking ``Joint''.

     SEC. 906. ACTIONS TO PREVENT THE ABUSE OF DETAINEES.

       (a) Policies Required.--The Secretary of Defense shall 
     prescribe policies regarding procedures for the Armed Forces 
     and other elements of the Department of Defense and 
     contractor personnel of the Department of Defense intended to 
     prevent the conditions leading to acts of abuse of detainees 
     who are held by the United States as part of the Global War 
     on Terrorism. Policies under this subsection shall be 
     prescribed not later than 120 days after the date of the 
     enactment of this Act.
       (b) Matters to be Included.--In order to achieve the 
     objective stated in subsection (a), the policies on the 
     prevention of abuse of detainees under that subsection shall 
     specify, at a minimum, procedures for the following:
       (1) Ensuring that commanders of detention facilities and 
     commanders of interrogation facilities provide all assigned 
     personnel (including contractor personnel) with training, and 
     documented acknowledgement of receiving training, regarding 
     the Geneva Convention Relative to the Treatment of Prisoners 
     of War and established Standing Operating Procedures for the 
     treatment of detainees. Training provided under this 
     paragraph to contractor personnel shall be at least 
     comparable in degree to that provided to members of the Armed 
     Forces.
       (2) Providing all detainees with information, in their own 
     language, of the protections afforded under the Geneva 
     Convention Relative to the Treatment of Prisoners of War.
       (3) Conducting periodic unannounced and announced 
     inspections of prisons and other areas where detainees are 
     held in order to provide continued oversight of interrogation 
     and detention operations.
       (4) Prohibiting contact between male guards and female 
     detainees and between female guards and male detainees, 
     except under exigent circumstances.
       (c) Reports to Congress.--The Secretary of Defense shall 
     submit to the Committees on Armed Services of the Senate and 
     House of Representatives--
       (1) a copy of the policies prescribed pursuant to 
     subsection (a), immediately after those policies are 
     prescribed; and
       (2) a report on the implementation of those policies, not 
     later than one year after the date on which those policies 
     are prescribed.

     SEC. 907. RESPONSES TO CONGRESSIONAL INQUIRIES.

       (a) In General.--(1) Chapter 3 of title 10, United States 
     Code, is amended by inserting after section 113a the 
     following new section:

     ``Sec. 113b. Response to congressional inquiries

       ``Whenever the Secretary of Defense or any other official 
     of the Department of Defense is requested by the chairman of 
     the Committee on Armed Services of the Senate or the chairman 
     of the Committee on Armed Services of the House of 
     Representatives to respond to a question or inquiry submitted 
     by the chairman or another member of that committee pursuant 
     to a committee hearing or other activity, the Secretary (or 
     other official) shall respond to the request, in writing, 
     within 21 days of the date on which the request is 
     transmitted to the Secretary (or other official).''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 113a the following new item:

``113b. Response to congressional inquiries.''.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

     SEC. 1001. TRANSFER AUTHORITY.

       (a) Authority To Transfer Authorizations.--(1) Upon 
     determination by the Secretary of Defense that such action is 
     necessary in the national interest, the Secretary may 
     transfer amounts of authorizations made available to the 
     Department of Defense in this division for fiscal year 2005 
     between any such authorizations for that fiscal year (or any 
     subdivisions thereof). Amounts of authorizations so 
     transferred shall be merged with and be available for the 
     same purposes as the authorization to which transferred.
       (2) The total amount of authorizations that the Secretary 
     may transfer under the authority of this section may not 
     exceed $3,000,000,000. Of such amount, $500,000,000 may be 
     used only for a transfer from an account for an active 
     component to an account for a reserve component, or from an 
     account of a reserve component to an account of an active 
     component, of the same Armed Force.
       (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;
       (2) may not be used to provide authority for an item that 
     has been denied authorization by Congress; and
       (3) may not be combined with the authority provided under 
     section 1522.
       (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. BUDGET JUSTIFICATION DOCUMENTS FOR OPERATION AND 
                   MAINTENANCE.

       (a) In General.--(1) Chapter 9 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 232. Operations and maintenance budget presentation

       ``(a) In General.--In this section
       ``(1) The term `O justification documents' means 
     Department of Defense budget justification documents with 
     respect to accounts for operation and maintenance submitted 
     to the congressional defense committees in support of the 
     Department of Defense component of the President's budget for 
     any fiscal year.
       ``(2) The term `President's budget' means the budget of the 
     President submitted to Congress under section 1105 of title 
     31 for any fiscal year.
       ``(3) The term `current year' means the fiscal year during 
     which the President's budget is submitted in any year.
       ``(b) Identification of Baseline Amounts in O 
     Justification Documents.--In any case in which the amount 
     requested in the President's budget for a fiscal year for a 
     Department of Defense operations and maintenance program, 
     project, or activity is different from the amount 
     appropriated for that program, project, or activity for the 
     current year, the O justification documents supporting that 
     budget shall identify that appropriated amount and the 
     difference between that amount and the amount requested in 
     the budget, stated as an amount and as a percentage.
       ``(c) Personal Service Contracts.--In the O justification 
     documents for any fiscal year, costs programmed in the budget 
     for that fiscal year for Department of Defense for personal 
     service contracts, and the number of personal service 
     contractors to be used by the Department of Defense during 
     that fiscal year who will be compensated at an annual rate in 
     excess of the annual rate of salary of the Vice President 
     under section 104 of title 3, shall be separately set forth 
     and identified.
       ``(d) Navy Subactivities for Ship Depot Maintenance and for 
     Intermediate Ship Maintenance.--In the O justification 
     documents for the Navy for any fiscal year, amounts requested 
     for ship depot maintenance and amounts requested for 
     intermediate ship maintenance shall be set forth as separate 
     budget subactivity groups.
       ``(e) Civilian Average Salary Costs.--In the O 
     justification documents for any fiscal year, average civilian 
     salary costs, shown by subactivity group, shall be set forth 
     as a component of the personnel summary exhibit.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``232. Operations and maintenance budget presentation.''.

       (b) Components of Line Items for Other Costs and Other 
     Contracts.--Not later than March 1, 2005, the Secretary of 
     Defense shall submit to the congressional defense committees 
     a report setting forth the component elements of the line 
     items identified as ``Other Costs'' and ``Other Contracts'' 
     in the exhibit identified as ``Summary of Price and Program 
     Changes'' in the budget justification materials submitted to 
     those committees in support of the budget for fiscal year 
     2006.

     SEC. 1003. RETENTION OF FEES FROM INTELLECTUAL PROPERTY 
                   LICENSES.

       (a) In General.--Chapter 165 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2788. Licensing of intellectual property of the 
       military departments; authority to charge and retain fees

       ``(a) Authority to Retain Fees.--(1) Under regulations 
     prescribed by the Secretary of Defense, the Secretary 
     concerned may license trademarks, service marks, 
     certification marks, and collective marks owned by a military 
     department and may retain and expend fees received from such 
     licensing in accordance with subsection (b).
       ``(2) In this section, the terms `trademark', `service 
     mark', `certification mark', `collective mark', and `mark' 
     have the meanings given those terms in section 45 of the 
     Trademark Act of 1946 (15 U.S.C. 1127).

[[Page H3322]]

       ``(b) Use of Licensing Fees.--(1) Funds received by a 
     military department from licensing under subsection (a)(1) 
     shall be used for the expenses incurred by the department in 
     securing the registration of marks owned by the department 
     and in licensing those marks.
       ``(2) If the amount of fees received by a military 
     department during any fiscal year from the licensing of marks 
     exceeds the anticipated expenses under paragraph (1) during 
     that year, the Secretary concerned may designate those funds 
     as excess and expend them as provided in paragraph (3).
       ``(3) Not more than 50 percent of any such excess funds 
     shall be available for military personnel recruiting and 
     retention activities of the department. The remainder of such 
     funds shall be available for morale, welfare, and recreation 
     activities of the department.
       ``(4) Funds received pursuant to subsection (a)(1) shall 
     remain available for two years after the end of the fiscal 
     year during which the funds are received.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2788. Licensing of intellectual property of the military departments; 
              authority to charge and retain fees.''.

     SEC. 1004. AUTHORITY TO WAIVE CLAIMS OF THE UNITED STATES 
                   WHEN AMOUNTS RECOVERABLE ARE LESS THAN COSTS OF 
                   COLLECTION.

       (a) Authority.--Chapter 165 of title 10, United States 
     Code, is amended by inserting after section 2780 the 
     following new section:

     ``Sec. 2780a. Debt collection: general waiver authority for 
       small amounts owed the United States

       ``(a) Authority.--In the case of an indebtedness to the 
     United States described in subsection (b) that is for an 
     amount that is less than the threshold amount specified in 
     subsection (c), the Secretary of Defense may, under 
     regulations prescribed under this section, cancel the 
     indebtedness and waive recovery of the amount owed. Such 
     authority may be used only when, based on a cost-benefit 
     analysis, the Secretary determines that the costs of 
     collection are expected to exceed the amount recoverable.
       ``(b) Covered Debts.--(1) Except as provided in paragraph 
     (2), this section applies with respect to amounts owed to the 
     United States that arise out of the activities of, or that 
     are referred to, the Department of Defense (including amounts 
     owed by members of the armed forces and Department of Defense 
     civilian personnel).
       ``(2) The authority under this section does not apply to 
     amounts owed to the United States arising out of activities 
     of the Department of Defense that have been referred to 
     another executive agency for collection action or that are 
     otherwise within the purview of another executive agency.
       ``(c) Maximum Amount Waivable.--The threshold amount 
     referred to in subsection (a) is the micropurchase threshold 
     amount in effect under section 32 of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 428).
       ``(d) Regulations.--The Secretary of Defense shall 
     prescribe regulations for the purposes of this section.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 2780 the following new item:

``2780a. Debt collection: general waiver authority for small amounts 
              owed the United States.''.

     SEC. 1005. REPEAL OF FUNDING RESTRICTIONS CONCERNING 
                   DEVELOPMENT OF MEDICAL COUNTERMEASURES AGAINST 
                   BIOLOGICAL WARFARE THREATS.

       (a) Repeal.--Section 2370a of title 10, United States Code, 
     is repealed.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 139 of such title is amended by striking 
     the item relating to that section.

     SEC. 1006. REPORT ON BUDGETING FOR EXCHANGE RATES FOR FOREIGN 
                   CURRENCY FLUCTUATIONS.

       (a) Secretary of Defense Report.--(1) Not later than 
     December 1, 2004, the Secretary Defense shall submit to the 
     Committees on Armed Services of the Senate and House of 
     Representatives a report on the foreign currency exchange 
     rate projection used in annual Department of Defense budget 
     presentations.
       (2) In the report under paragraph (1), the Secretary 
     shall--
       (A) identify alternative approaches for selecting foreign 
     currency exchange rates that would produce more realistic 
     estimates of amounts required to be appropriated or otherwise 
     made available for the Department of Defense to accommodate 
     foreign currency exchange rate fluctuations;
       (B) address the advantages and disadvantages of each 
     approach identified pursuant to subparagraph (A);
       (C) identify the Secretary's preferred approach among the 
     alternatives identified pursuant to subparagraph (A) and 
     provide the Secretary's rationale for preferring that 
     approach.
       (3) In identifying alternative approaches pursuant to 
     paragraph (2)(A), the Secretary shall examine--
       (A) approaches used by other Federal departments and 
     agencies; and
       (B) the feasibility of using private economic forecasting.
       (b) Comptroller General Review and Report.--The Comptroller 
     General of the United States shall review the report under 
     subsection (a), including the basis for the Secretary's 
     conclusions stated in the report, and shall submit to the 
     Committees on Armed Services of the Senate and House of 
     Representatives a report containing the Comptroller General's 
     conclusions with respect to that report. Such report shall be 
     submitted not later than January 15, 2005.

                Subtitle B--Naval Vessels and Shipyards

     SEC. 1011. AUTHORITY FOR AWARD OF CONTRACTS FOR SHIP 
                   DISMANTLING ON NET-COST BASIS.

       (a) In General.--Chapter 633 of title 10, United States 
     Code, is amended by inserting after section 7305 the 
     following new section:

     ``Sec. 7305a. Vessels stricken from Naval Vessel Register: 
       contracts for dismantling on net-cost basis

       ``(a) Authority for Net-Cost Basis Contracts.--When the 
     Secretary of the Navy awards a contract for the dismantling 
     of a vessel stricken from the Naval Vessel Register, the 
     Secretary may award the contract on a net-cost basis.
       ``(b) Retention by Contractor of Proceeds of Sale of Scrap 
     and Reusable Items.--When the Secretary awards a contract on 
     a net-cost basis under subsection (a), the Secretary shall 
     provide in the contract that the contractor may retain the 
     proceeds from the sale of scrap and reusable items removed 
     from the vessel dismantled under the contract.
       ``(c) Definitions.--In this section:
       ``(1) The term `net-cost basis', with respect to a contract 
     for the dismantling of a vessel, means that the amount to be 
     paid to the contractor under the contract for dismantling and 
     for removal and disposal of hazardous waste material is 
     discounted by the offeror's estimate of the value of scrap 
     and reusable items that the contractor will remove from the 
     vessel during performance of the contract.
       ``(2) The term `scrap' means personal property that has no 
     value except for its basic material content.
       ``(3) The term `reusable item' means a demilitarized 
     component or a removable portion of a vessel or equipment 
     that the Secretary of the Navy has identified as excess to 
     the needs of the Navy but which has potential resale value on 
     the open market.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 7305 the following new item:

``7305a. Vessels stricken from Naval Vessel Register: contracts for 
              dismantling on net-cost basis.''.

     SEC. 1012. INDEPENDENT STUDY TO ASSESS COST EFFECTIVENESS OF 
                   THE NAVY SHIP CONSTRUCTION PROGRAM.

       (a) Study.--The Secretary of Defense shall provide for a 
     study, to be conducted by an entity independent of the 
     Department of Defense, of the cost effectiveness of the ship 
     construction program of the Navy. The purpose of the study 
     shall be to examine both--
       (1) a variety of approaches by which the Navy ship 
     construction program could be made more efficient in the near 
     term; and
       (2) a variety of approaches by which, with a nationally 
     integrated effort over the next decade, the United States 
     shipbuilding industry might be made competitive globally.
       (b) Near Term Improvements in Efficiency.--With respect to 
     the examination under subsection (a)(1) of approaches by 
     which the Navy ship construction program could be made more 
     efficient in the near term, the Secretary shall provide for 
     the entity conducting the study--
       (1) to determine, with respect to each approach so 
     examined, the cost savings that could result from 
     implementation of that approach over each of the next 10 
     years;
       (2) to recommend one or more of the approaches examined 
     under subsection (a)(1) for implementation; and
       (3) for each approach recommended under paragraph (2) for 
     implementation, to develop a concept and implementation plan 
     by which the recommended improvements could best be phased 
     into the naval ship construction program.
       (c) Global Competitiveness of United States Shipbuilding 
     Industry.--With respect to the examination under subsection 
     (a)(2) of approaches by which, with a nationally integrated 
     effort over the next decade, the United States shipbuilding 
     industry might be made competitive globally, the Secretary 
     shall provide for the entity conducting the study--
       (1) to develop a plan to modernize the United States 
     shipbuilding infrastructure within the next decade in order 
     to make the United States shipbuilding industry more 
     competitive globally; and
       (2) to estimate the resources required to carry out a 
     modernization plan developed under paragraph (1).
       (d) Report.--Not later than June 1, 2005, the Secretary of 
     Defense shall submit to the congressional defense committees 
     a report providing the results of the study under subsection 
     (a). The report shall include the matters specified in 
     subsections (b) and (c).

     SEC. 1013. AUTHORITY TO TRANSFER SPECIFIED FORMER NAVAL 
                   VESSELS TO CERTAIN FOREIGN COUNTRIES.

       (a) Authority to transfer by Grant.--The Prsident is 
     authorized to transfer vessels to foreign countries on a 
     grant basis under section 516 of the Foreign Assistance Act 
     of 1961 (22 U.S.C. 2321j), as follows:
       (1) Chile.--The ``SPRUANCE'' class destroyer O'BANNON (DD-
     987) to the Government of Chile.
       (2) Portugal.--The ``OLIVER HAZARD PERRY'' class guided 
     missile frigate GEORGE PHILIP (FFG-12) to the Government of 
     Portugal.
       (b) Authority to transfer by Sale.--The President is 
     authorized to transfer on a sale basis under section 21 of 
     the Arms Export Control Act (22 U.S.C. 2761) the 
     ``ANCHORAGE'' class dock landing ship ANCHORAGE (LSD-36) to 
     the Taipei Economic and Cultural Representative Office in the 
     United States (which is the

[[Page H3323]]

     Taiwan instrumentality designated pursuant to section 10(a) 
     of the Taiwan Relations Act).
       (c) Grants Not Counted in Annual Total of Transferred 
     Excess Defense Articles.--The value of a vessel transferred 
     to another country on a grant basis under section 516 of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2321j) pursuant to 
     authority provided by subsection (a) shall not be counted for 
     the purposes of subsection (g) of that section in the 
     aggregate value of excess defense articles transferred to 
     countries under that section in any fiscal year.
       (d) Costs of Transfers.--Any expense incurred by the United 
     States in connection with a transfer authorized by this 
     section shall be charged to the recipient (notwithstanding 
     section 516(e) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2321j (e)) in the case of a transfer authorized to be 
     made on a grant basis under subsection (a)).
       (e) Repair and Refurbishment in United States Shipyards.--
     To the maximum extent practicable, the President shall 
     require, as a condition of the transfer of a vessel under 
     this section, that the country to which the vessel is 
     transferred have such repair or refurbishment of the vessel 
     as is needed, before the vessel joins the naval forces of 
     that country, performed at a shipyard located in the United 
     States, including a United States Navy shipyard.
       (f) Expiration of Authority.--The authority to transfer a 
     vessel under this section shall expire at the end of the two-
     year period beginning on the date of the enactment of this 
     Act.

     SEC. 1014. LIMITATION ON LEASING OF FOREIGN-BUILT VESSELS.

       (a) In General.--(1) Chapter 141 of title 10, United States 
     Code, is amended by inserting after section 2401a the 
     following new section:

     ``Sec. 2401b. Limitation on lease of foreign-built vessels

       ``(a) Limitation.--The Secretary of a military department 
     may not make a contract for a lease or charter of a vessel 
     for a term of more than 12 months (including all options to 
     renew or extend the contract) if the hull, a major component 
     of the hull, or superstructure of the vessel is constructed 
     in a foreign shipyard.
       ``(b) Presidential Waiver for National Security Interest.--
     (1) The President may authorize exceptions to the limitation 
     in subsection (a) when the President determines that it is in 
     the national security interest of the United States to do so.
       ``(2) The President shall transmit notice to Congress of 
     any such determination, and no contract may be made pursuant 
     to the exception authorized until the end of the 30-day 
     period beginning on the date on which the notice of the 
     determination is received by Congress.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     2401a the following new item:

``2401b. Limitation on lease of foreign-built vessels.''.

       (b) Effective Date.--Section 2401b of title 10, United 
     States Code, as added by subsection (a), shall apply with 
     respect to contracts entered into after the date of the 
     enactment of this Act.

                   Subtitle C--Sunken Military Craft

     SEC. 1021. PRESERVATION OF TITLE TO SUNKEN MILITARY CRAFT AND 
                   ASSOCIATED CONTENTS.

       Right, title, and interest of the United States in and to 
     any United States sunken military craft shall not be 
     extinguished by the passage of time, regardless of when the 
     sunken military craft sank.

     SEC. 1022. PROHIBITIONS.

       (a) Unauthorized Activities Directed at Sunken Military 
     Craft.--No person shall engage in or attempt to engage in any 
     activity directed at a sunken military craft that disturbs, 
     removes, or injures any sunken military craft, except--
       (1) as authorized by a permit under this subtitle;
       (2) as authorized by regulations issued under this 
     subtitle; or
       (3) as otherwise authorized by law.
       (b) Possession of Sunken Military Craft.--No person may 
     possess, disturb, remove, or injure any sunken military craft 
     in violation of--
       (1) this section; or
       (2) any prohibition, rule, regulation, ordinance, or permit 
     that applies under any other applicable Federal, foreign, or 
     other law.
       (c) Limitations on Application.--
       (1) Actions by united states.--This section shall not apply 
     to actions taken by, or at the direction of, the United 
     States.
       (2) Foreign persons.--This section shall not apply to any 
     action by a person who is not a citizen, national, or 
     resident alien of the United States, except in accordance 
     with--
       (A) generally recognized principles of international law;
       (B) an agreement between the United States and the foreign 
     country of which the person is a citizen; or
       (C) in the case of an individual who is a crew member or 
     other individual on a foreign vessel or foreign aircraft, an 
     agreement between the United States and the flag State of the 
     foreign vessel or aircraft that applies to the individual.
       (3) Loan of sunken military craft.--This section does not 
     prohibit the loan of United States sunken military craft in 
     accordance with regulations issued by the Secretary 
     concerned.

     SEC. 1023. PERMITS.

       (a) In General.--The Secretary concerned may issue a permit 
     authorizing a person to engage in an activity otherwise 
     prohibited by section 1022 with respect to a United States 
     military craft, for archaeological, historical, or 
     educational purposes, in accordance with regulations issued 
     by such Secretary that implement this section.
       (b) Consistency With Other Laws.--The Secretary concerned 
     shall require that any activity carried out under a permit 
     issued by such Secretary under this section must be 
     consistent with all requirements and restrictions that apply 
     under any other provision of Federal law.
       (c) Consultation.--In carrying out this section (including 
     the issuance after the date of the enactment of this Act of 
     regulations implementing this section), the Secretary 
     concerned shall consult with the head of each Federal agency 
     having authority under Federal law with respect to activities 
     directed at sunken military craft or the locations of such 
     craft.

     SEC. 1024. PENALTIES.

       (a) In General.--Any person who violates this subtitle, or 
     any regulation or permit issued under this subtitle, shall be 
     liable to the United States for a civil penalty under this 
     section.
       (b) Assessment and Amount.--The Secretary concerned may 
     assess a civil penalty under this section, after notice and 
     an opportunity for a hearing, of not more than $100,000 for 
     each violation.
       (c) Continuing Violations.--Each day of a continued 
     violation of this subtitle or a regulation or permit issued 
     under this subtitle shall constitute a separate violation for 
     purposes of this section.

     SEC. 1025. LIABILITY FOR DAMAGES.

       (a) In General.--Any person who engages in an activity in 
     violation of section 1022 or any regulation or permit issued 
     under this subtitle that disturbs, removes, or injures any 
     United States sunken military craft shall pay the United 
     States enforcement costs and damages resulting from such 
     disturbance, removal, or injury.
       (b) Included Damages.--Damages referred to in subsection 
     (a) may include--
       (1) the reasonable costs incurred in storage, restoration, 
     care, maintenance, conservation, and curation of any sunken 
     military craft that is disturbed, removed, or injured in 
     violation of section 1022 or any regulation or permit issued 
     under this subtitle; and
       (2) the cost of retrieving, from the site where the sunken 
     military craft was disturbed, removed, or injured, any 
     information of an archaeological, historical, or cultural 
     nature.

     SEC. 1026. RELATIONSHIP TO OTHER LAWS.

       (a) In General.--Except to the extent that an activity is 
     undertaken as a subterfuge for activities prohibited by this 
     subtitle, nothing in this subtitle is intended to affect--
       (1) any activity that is not directed at a sunken military 
     craft; or
       (2) the traditional high seas freedoms of navigation, 
     including--
       (A) the laying of submarine cables and pipelines;
       (B) operation of vessels;
       (C) fishing; or
       (D) other internationally lawful uses of the sea related to 
     such freedoms.
       (b) International Law.--This subtitle and any regulations 
     implementing this subtitle shall be applied in accordance 
     with generally recognized principles of international law and 
     in accordance with the treaties, conventions, and other 
     agreements to which the United States is a party.
       (c) Law of Finds.--The law of finds shall not apply to any 
     United States sunken military craft, wherever located.
       (d) Law of Salvage.--No salvage rights or awards shall be 
     granted with respect to any sunken military craft without the 
     express permission of the United States.
       (e) Law of Capture or Prize.--Nothing in this subtitle is 
     intended to alter the international law of capture or prize 
     with respect to sunken military craft.
       (f) Limitation of Liability.--Nothing in sections 4281 
     through 4287 and 4289 of the Revised Statutes (46 U.S.C. App. 
     181 et seq.) or section 3 of the Act of February 13, 1893 
     (chapter 105; 27 Stat. 445; 46 U.S.C. App. 192), shall limit 
     the liability of any person under this section.
       (g) Authorities of the Commandant of the Coast Guard.--
     Nothing in this subtitle is intended to preclude or limit the 
     application of any other law enforcement authorities of the 
     Commandant of the Coast Guard.
       (h) Prior Delegations, Authorizations, and Related 
     Regulations.--Nothing in this subtitle shall invalidate any 
     prior delegation, authorization, or related regulation that 
     is consistent with this subtitle.
       (i) Criminal Law.--Nothing in this subtitle is intended to 
     prevent the United States from pursuing criminal sanctions 
     for plundering of wrecks, larceny of Government property, 
     or violation of any applicable criminal law.

     SEC. 1027. ENCOURAGEMENT OF AGREEMENTS WITH FOREIGN 
                   COUNTRIES.

       The Secretary of State, in consultation with the Secretary 
     of Defense, is encouraged to negotiate and conclude bilateral 
     and multilateral agreements with foreign countries with 
     regard to sunken military craft consistent with this 
     subtitle.

     SEC. 1028. DEFINITIONS.

       In this subtitle:
       (1) Associated contents.--The term ``associated contents'' 
     means--
       (A) the equipment, cargo, and contents of a sunken military 
     craft that are within its debris field; and
       (B) the remains and personal effects of the crew and 
     passengers of a sunken military craft that are within its 
     debris field.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of a military department.
       (3) Sunken military aircraft.--The term ``sunken military 
     aircraft'' means any sunken military aircraft that was owned 
     or operated by the United States when it sank.
       (4) Sunken military craft.--The term ``sunken military 
     craft'' means any sunken military vessel, sunken military 
     aircraft, or associated contents, or any portion thereof, the 
     title to

[[Page H3324]]

     which has not been abandoned or transferred in a manner 
     prescribed by the United States.
       (5) Sunken military vessel.--The term ``sunken military 
     vessel'' means any sunken warship or naval auxiliary of the 
     United States that is a public vessel as that term is used in 
     the Act of March 3, 1925 (chapter 428; 46 U.S.C. App. 781 et 
     seq.), popularly known as the Public Vessels Act.
       (6) United states contiguous zone.--The term ``United 
     States contiguous zone'' means the contiguous zone of the 
     United States under Presidential Proclamation 7219, dated 
     September 2, 1999.
       (7) United states internal waters.--The term ``United 
     States internal waters'' means all waters of the United 
     States on the landward side of the baseline from which the 
     breadth of the United States territorial sea is measured.
       (8) United states territorial sea.--The term ``United 
     States territorial sea'' means the waters of the United 
     States territorial sea under Presidential Proclamation 5928, 
     dated December 27, 1988.
       (9) United states waters.--The term ``United States 
     waters'' means United States internal waters, the United 
     States territorial sea, and the United States contiguous 
     zone.

                  Subtitle D--Counter-Drug Activities

     SEC. 1031. CONTINUATION OF AUTHORITY TO USE DEPARTMENT OF 
                   DEFENSE FUNDS FOR UNIFIED COUNTERDRUG AND 
                   COUNTERTERRORISM CAMPAIGN IN COLOMBIA.

       (a) Authority to Provide Assistance.--During fiscal years 
     2005 and 2006, the Secretary of Defense may use funds made 
     available to the Department of Defense for drug interdiction 
     and counter-drug activities to provide assistance to the 
     Government of Colombia--
       (1) to support a unified campaign against narcotics 
     trafficking in Colombia;
       (2) to support a unified campaign against activities by 
     designated 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); 
     and
       (3) to take actions to protect human health and welfare in 
     emergency circumstances, including undertaking rescue 
     operations.
       (b) Relation to Other Assistance Authority.--The authority 
     provided by subsection (a) is in addition to other provisions 
     of law authorizing the provision of assistance to the 
     Government of Colombia.

     SEC. 1032. LIMITATION ON NUMBER OF UNITED STATES MILITARY 
                   PERSONNEL IN COLOMBIA.

       (a) Limitation.--None of the funds available to the 
     Department of Defense for any fiscal year may be used to 
     support or maintain more than 500 members of the Armed Forces 
     on duty in the Republic of Colombia at any time.
       (b) Exclusion of Certain Members.--For purposes of 
     determining compliance with the limitation in subsection (a), 
     the Secretary of Defense may exclude the following military 
     personnel:
       (1) A member of the Armed Forces in the Republic of 
     Colombia for the purpose of rescuing or retrieving United 
     States military or civilian Government personnel, except that 
     the period for which such a member may be so excluded may not 
     exceed 30 days unless expressly authorized by law.
       (2) A member of the Armed Forces assigned to the United 
     States Embassy in Colombia as an attache, as a member of the 
     security assistance office, or as a member of the Marine 
     Corps security contingent.
       (3) A member of the Armed Forces in Colombia to participate 
     in relief efforts in responding to a natural disaster.
       (4) Nonoperational transient military personnel.
       (5) A member of the Armed Forces making a port call from a 
     military vessel in Colombia.

                          Subtitle E--Reports

     SEC. 1041. STUDY OF CONTINUED REQUIREMENT FOR TWO-CREW 
                   MANNING FOR BALLISTIC MISSILE SUBMARINES.

       (a) Study and Determination.--The Secretary of Defense 
     shall conduct a study of whether the practice of using two 
     alternating crews (referred to as the ``Gold Crew'' and the 
     ``Blue Crew'') for manning of ballistic missile submarines 
     (SSBNs) continues to be justified under the changed 
     circumstances since the end of the Cold War and, based on 
     that study, shall make a determination of whether that two-
     crew manning practice should be continued or should be 
     modified or terminated.
       (b) Report.--Not later than six months after the date of 
     the enactment of this Act, the Secretary shall submit to the 
     Committees on Armed Services of the Senate and House of 
     Representatives a report providing notice of the Secretary's 
     determination under subsection (a) and the reasons for that 
     determination.

     SEC. 1042. STUDY OF EFFECT ON DEFENSE INDUSTRIAL BASE OF 
                   ELIMINATION OF UNITED STATES DOMESTIC FIREARMS 
                   MANUFACTURING BASE.

       Not later than 60 days after the date of the enactment of 
     this Act, the Secretary of Defense shall submit to the 
     congressional defense committees a report describing in 
     detail the effect on both military readiness and the defense 
     industrial base that would result from the elimination of the 
     United States domestic firearms manufacturing base.

     SEC. 1043. STUDY OF EXTENT AND QUALITY OF TRAINING PROVIDED 
                   TO MEMBERS OF THE ARMED SERVICES TO PREPARE FOR 
                   POST-CONFLICT OPERATIONS.

       (a) Study Required.--The Secretary of Defense shall conduct 
     a study to determine the extent to which members of the Armed 
     Forces assigned to duty in support of contingency operations 
     receive training in preparation for post-conflict operations 
     and to evaluate the quality of such training
       (b) Matters Included in Study.--As part of the study under 
     subsection (a), the Secretary shall specifically evaluate the 
     following:
       (1) The doctrine, training, and leader-development system 
     necessary to enable members of the Armed Forces to 
     successfully operate in post-conflict operations.
       (2) The adequacy of curricula at military educational 
     facilities to ensure that the Armed Forces has a cadre of 
     members skilled in post-conflict duties, foreign languages, 
     and foreign cultures.
       (3) The training time and resources available to members 
     and units to develop cultural awareness about ethnic 
     backgrounds, religious beliefs, and political loyalties of 
     the people living in areas in which the Armed Forces operate.
       (4) The organization of the combatant commands to conduct 
     post-conflict operations.
       (c) Submission of Study Results.--Not later than March 15, 
     2005, the Secretary of Defense shall submit to the Committee 
     on Armed Services of the Senate and the Committee on Armed 
     Services of the House of Representatives a report containing 
     the results of the study conducted under this section.

                      Subtitle F--Security Matters

     SEC. 1051. USE OF NATIONAL DRIVER REGISTER FOR PERSONNEL 
                   SECURITY INVESTIGATIONS AND DETERMINATIONS.

       Section 30305(b) of title 49, United States Code, is 
     amended--
       (1) by redesignating paragraphs (9) through (11) as 
     paragraphs (10) through (12), respectively; and
       (2) by inserting after paragraph (8) the following new 
     paragraph:
       ``(9) An individual who has or is seeking access to 
     national security information for purposes of Executive Order 
     12968, or any successor Executive order, or an individual who 
     is being investigated for Federal employment under authority 
     of Executive Order 10450, or any successor Executive order, 
     may request the chief driver licensing official of a State to 
     provide information about the individual pursuant to 
     subsection (a) of this section to a Federal department or 
     agency that is authorized to investigate the individual for 
     the purpose of assisting in the determination of the 
     eligibility of the individual for access to national security 
     information or for Federal employment. A Federal department 
     or agency that receives such information about an individual 
     may use it in accordance with applicable law.''.

     SEC. 1052. STANDARDS FOR DISQUALIFICATION FROM ELIGIBILITY 
                   FOR DEPARTMENT OF DEFENSE SECURITY CLEARANCE .

       (a) Disqualified Persons.--Subsection (c)(1) of section 986 
     of title 10, United States Code, is amended--
       (1) by striking ``and'' and inserting ``, was''; and
       (2) and inserting before the period at the end the 
     following: ``, and was incarcerated as a result of that 
     sentence for not less than one year''.
       (b) Waiver Authority.--Subsection (d) of such section is 
     amended to read as follows:
       ``(d) Waiver Authority.--In a meritorious case, an 
     exception to the prohibition in subsection (a) may be 
     authorized for a person described in paragraph (1) or (4) of 
     subsection (c) if there are mitigating factors. Any such 
     waiver may be authorized only in accordance with standards 
     and procedures prescribed by, or under the authority of, an 
     Executive order or other guidance issued by the President.''.

               Subtitle G--Transportation-Related Matters

     SEC. 1061. USE OF MILITARY AIRCRAFT TO TRANSPORT MAIL TO AND 
                   FROM OVERSEAS LOCATIONS.

       (a) Authority for Use of Military Aircraft.--Section 3401 
     of title 39, United States Code, is amended--
       (1) in subsection (b)--
       (A) in the matter preceding paragraph (1)(A), by striking 
     ``title 49,'' and inserting ``title 49, or on military 
     aircraft at rates not to exceed those so fixed and determined 
     for scheduled United States air carriers,''; and
       (B) in the sentence following paragraph (3), by striking 
     ``carriers'' each place it appears and inserting ``carriers 
     and military aircraft''; and
       (2) in subsection (c)--
       (A) in the first sentence, by striking ``title 49,'' and 
     inserting ``title 49, or on military aircraft at rates not to 
     exceed those so fixed and determined for scheduled United 
     States air carriers,''; and
       (B) in the second sentence--
       (i) by inserting ``and military aircraft'' after 
     ``carriers'' the first place it appears; and
       (ii) by striking ``by air carriers other than scheduled 
     United States air carriers'' and inserting ``by other than 
     scheduled United States air carriers and military aircraft''.
       (b) Definition.--Such section is further amended by adding 
     at the end the following new subsection:
       ``(g) In this section, the term `military aircraft' means 
     an aircraft owned, operated, or chartered by the Department 
     of Defense.''.

     SEC. 1062. REORGANIZATION AND CLARIFICATION OF CERTAIN 
                   PROVISIONS RELATING TO CONTROL AND SUPERVISION 
                   OF TRANSPORTATION WITHIN THE DEPARTMENT OF 
                   DEFENSE.

       (a) Transfer of Certain Transportation Authorities.--
     Sections 4744, 4745, 4746, and 4747 of title 10, United 
     States Code, are transferred to chapter 157 of such title, 
     inserted (in that order) at the end of such chapter, and 
     redesignated as sections 2648, 2649, 2650, and 2651, 
     respectively.
       (b) Clarification of Applicability of Transferred 
     Authorities Throughout the Department of Defense.--(1) 
     Section 2648 of such title, as transferred and redesignated 
     by subsection (a), is amended--

[[Page H3325]]

       (A) by striking ``Secretary of the Army'' in the matter 
     preceding paragraph (1) and inserting ``Secretary of 
     Defense'';
       (B) by striking ``Army transport agencies'' in the matter 
     preceding paragraph (1) and all that follows through 
     ``military transport agency of''; and
       (C) by striking paragraphs (1), (2), and (3);
       (D) by redesignating paragraph (4), (5), (6), and (7) as 
     paragraphs (1), (2), (3), and (4), respectively;
       (E) by redesignating paragraph (8) as paragraph (5) and in 
     that paragraph striking ``persons described in clauses (1), 
     (2), (4), (5), and (7)'' and inserting ``members of the armed 
     forces, officers and employees of the Department of Defense 
     or the Coast Guard, and persons described i paragraphs (1), 
     (2), and (4)''; and
       (F) by striking ``clause (7) or (8)'' in the last sentence 
     and inserting ``paragraph (4) or (5)''.
       (2) Section 2649 of such title, as transferred and 
     redesignated by subsection (a), is amended--
       (A) by striking the section heading and inserting the 
     following:

     ``Sec. 2649. Civilian passengers and commercial cargoes: 
       transportation on Department of Defense vessels'';

       (B) by striking ``(1) on vessels'' and all that follows 
     through ``Department of the Army'';
       (C) by striking ``any transport agency of''; and
       (D) by striking ``Secretary of the Army'' and all that 
     follows through ``be transported'' and inserting ``Secretary 
     of Defense, be transported''.
       (3) Section 2650 of such title, as transferred and 
     redesignated by subsection (a), is amended--
       (A) in the matter preceding paragraph (1), by striking 
     ``Army transport agencies'' and all that follows through 
     ``military transport agency of'';
       (B) in paragraph (1), by striking ``Secretary of the Army'' 
     and inserting ``Secretary of Defense''; and
       (C) in paragraph (4), by striking ``by air--'' and all that 
     follows through ``the transportation cannot'' and inserting 
     ``by air, the transportation cannot''.
       (4) Section 2651 of such title, as transferred and 
     redesignated by subsection (a), is amended by striking ``Army 
     transport agencies'' and all that follows and inserting ``the 
     Department of Defense, under regulations and at rates to be 
     prescribed by the Secretary of Defense.''.
       (c) Repeal of Superseded and Obsolete Provisions.--The 
     following sections of such title are repealed: sections 4741, 
     4743, 9741, 9743, and 9746.
       (d) Clerical Amendments.--
       (1) The table of sections at the beginning of chapter 157 
     of such title is amended by adding at the end the following 
     new items:

``2648. Persons and supplies: sea transportation.
``2649. Civilian passengers and commercial cargoes: transportation on 
              Department of Defense vessels.
``2650. Civilian personnel in Alaska.
``2651. Passengers and merchandise to Guam: sea transport.''.
       (2) The table of sections at the beginning of chapter 447 
     of such title is amended by striking the items relating to 
     sections 4741, 4743, 4744, 4745, 4746, and 4747.
       (3) The table of sections at the beginning of chapter 947 
     of such title is amended by striking the items relating to 
     sections 9741, 9743, and 9746.

     SEC. 1063. DETERMINATION OF WHETHER PRIVATE AIR CARRIERS ARE 
                   CONTROLLED BY UNITED STATES CITIZENS FOR 
                   PURPOSES OF ELIGIBILITY FOR GOVERNMENT 
                   CONTRACTS FOR TRANSPORTATION OF PASSENGERS OR 
                   SUPPLIES.

       Section 2710 of the Emergency Wartime Supplemental 
     Appropriations Act, 2003 (Public Law 108-11; 117 Stat. 601), 
     is amended by adding at the end the following new sentence: 
     ``Any determination for purposes of this section of whether 
     (in accordance with the first proviso of this section) an air 
     carrier is effectively controlled by citizens of the United 
     States shall be made by, or shall be based on determinations 
     made by, the Secretary of Transportation.''.

     SEC. 1064. EVALUATION OF WHETHER TO PROHIBIT CERTAIN OFFERS 
                   FOR TRANSPORTATION OF SECURITY-SENSITIVE CARGO.

       (a) Evaluation Requirement.--The Secretary of Defense shall 
     evaluate whether, and under what circumstances, in the award 
     of service contracts for domestic freight transportation for 
     security-sensitive cargo (such as arms, ammunitions, 
     explosive, and classified material), the Secretary should not 
     consider an offer or tender from more than one motor carrier 
     that is part of a group of motor carriers under common 
     financial or administrative control. In conducting the 
     evaluation, the Secretary shall seek industry comment.
       (b) Report.--Not later than January 1, 2005, the Secretary 
     of Defense shall submit to the Committees on Armed Services 
     of the House of Representatives and the Senate a report on 
     the results of the evaluation conducted under subsection (a).

                       Subtitle H--Other Matters

     SEC. 1071. TWO-YEAR EXTENSION OF AUTHORITY OF THE SECRETARY 
                   OF DEFENSE TO ENGAGE IN COMMERCIAL ACTIVITIES 
                   AS SECURITY FOR INTELLIGENCE COLLECTION 
                   ACTIVITIES ABROAD.

       Section 431(a) of title 10, United States Code, is amended 
     by striking ``December 31, 2004'' and inserting ``December 
     31, 2006''.

     SEC. 1072. ASSISTANCE FOR STUDY OF FEASIBILITY OF BIENNIAL 
                   INTERNATIONAL AIR TRADE SHOW IN THE UNITED 
                   STATES AND FOR INITIAL IMPLEMENTATION.

       (a) Assistance for Community Feasibility Study.--(1) The 
     Secretary of Defense shall provide assistance to a community 
     selected under subsection (d) for expenses of a study by that 
     community of the feasibility of the establishment and 
     operation of a biennial international air trade show in the 
     area of that community.
       (2) The Secretary shall provide for the community to submit 
     to the Secretary a report containing the results of the study 
     not later than September 30, 2005. The Secretary shall 
     promptly submit the report to Congress, together with such 
     comments on the report as the Secretary considers 
     appropriate.
       (b) Assistance for Implementation.--If the community 
     conducting the study under subsection (a) determines that the 
     establishment and operation of such an air show is feasible 
     and should be implemented, the Secretary shall provide 
     assistance to the community for the initial expenses of 
     implementing such an air show in the selected community.
       (c) Amount of Assistance.--The amount of assistance 
     provided by the Secretary under subsections (a) and (b)--
       (1) may not exceed a total of $1,000,000, to be derived 
     from amounts available for operation and maintenance for the 
     Air Force for fiscal year 2005 or later fiscal years; and
       (2) may not exceed one-half of the cost of the study and 
     may not exceed one-half the cost of such initial 
     implementation.
       (d) Selection of Community.--The Secretary shall select a 
     community for purposes of subsection (a) through the use of 
     competitive procedures. In making such selection, the 
     Secretary shall give preference to those communities that 
     already sponsor an air show, have demonstrated a history of 
     supporting air shows with local resources, and have a 
     significant role in the aerospace community. The community 
     shall be selected not later than March 1, 2005.

     SEC. 1073. TECHNICAL AND CLERICAL AMENDMENTS.

       (a) Clarification of Definition of ``Operational Range''.--
     Section 101(e)(3) of title 10, United States Code, is amended 
     by striking ``Secretary of Defense'' and inserting 
     ``Secretary of a military department''.
       (b) Amendments Relating to Definition of Congressional 
     Defense Committees.--
       (1) Chapter 169 of such title is amended as follows:
       (A) Paragraph (4) of section 2801(c) is amended to read as 
     follows:
       ``(4) The term `congressional defense committees' includes, 
     with respect to any project to be carried out by, or for the 
     use of, an intelligence component of the Department of 
     Defense--
       ``(A) the Permanent Select Committee on Intelligence of the 
     House of Representatives; and
       ``(B) the Select Committee on Intelligence of the 
     Senate.''.
       (B) The following sections are amended by striking 
     ``appropriate committees of Congress'' each place it appears 
     and inserting ``congressional defense committees'': sections 
     2803(b), 2804(b), 2805(b)(2), 2806(c)(2), 2807(b), 2807(c), 
     2808(b), 2809(f)(1), 2811(d), 2812(c)(1)(A), 2813(c), 
     2814(a)(2)(A), 2814(g)(1), 2825(b)(1), 2827(b), 2828(f), 
     2835(g), 2836(f), 2837(c)(2), 2853(c)(2), 2854(b), 
     2854a(c)(1), 2865(e)(2), 2866(c)(2), 2875(e), 2881a(d)(2), 
     2881a(e), 2883(f), and 2884(a).
       (2) Section 2215 is amended--
       (A) by striking ``(a) Certification Required.--'';
       (B) by striking ``congressional committees specified in 
     subsection (b)'' and inserting ``congressional defense 
     committees''; and
       (C) by striking subsection (b).
       (3) Section 2306b(g) is amended by striking ``Committee 
     on'' the first place it appears and all that follows through 
     ``House of Representatives'' and inserting ``congressional 
     defense committees''.
       (4) Section 2515(d) is amended--
       (A) by striking ``(1)'' before ``The Secretary'';
       (B) by striking ``congressional committees specified in 
     paragraph (2)'' and inserting ``congressional defense 
     committees''; and
       (C) by striking paragraph (2).
       (5) Section 2676(d) is amended by striking ``appropriate 
     committees of Congress'' at the end of the first sentence and 
     inserting ``congressional defense committees''.
       (6) Section 2694a is amended by striking ``appropriate 
     committees of Congress'' in subsections (e) and (i)(1) and 
     inserting ``congressional defense committees''.
       (c) Amendments Relating to Definition of Base Closure 
     Laws.--
       (1) Section 2694a(i) of title 10, United States Code, is 
     amended by striking paragraph (2).
       (2) Paragraph (1) of section 1333(i) of the National 
     Defense Authorization Act for Fiscal Year 1994 (Public Law 
     103-160; 10 U.S.C. 2701 note) is amended to read as follows:
       ``(1) Base closure law.--The term `base closure law' has 
     the meaning given such term in section 101(a)(17) of title 
     10, United States Code.''.
       (3) Subsection (b) of section 2814 of the Military 
     Construction Authorization Act for Fiscal Year 1995 (division 
     B of Public Law 103-337; 10 U.S.C. 2687 note) is amended to 
     read as follows:
       ``(b) Base Closure Law Defined.--In this section, the term 
     `base closure law' has the meaning given such term in section 
     101(a)(17) of title 10, United States Code.''.
       (4) Subsection (c) of section 3341 of title 5, United 
     States Code, is amended to read as follows:
       ``(c) For purposes of this section, the term `base closure 
     law' has the meaning given such term in section 101(a)(17) of 
     title 10.''.
       (5)(A) Paragraph (1) of section 554(a) of title 40, United 
     States Code, is amended to read as follows:
       ``(1) Base closure law.--The term `base closure law' has 
     the meaning given that term in section 101(a)(17) of title 
     10.''.

[[Page H3326]]

       (B) Subparagraph (B) of section 572(b)(1) of title 40 is 
     amended to read as follows:
       ``(B) Base closure law.--The term `base closure law' has 
     the meaning given that term in section 101(a)(17) of title 
     10.''.
       (d) Definition of State for Purposes of Section 2694a.--
     Subsection (i) of section 2694a of title 10, United States 
     Code, as amended by subsections (b)(6) and (c)(1), is further 
     amended--
       (1) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) The term `State' includes the District of Columbia, 
     the Commonwealth of Puerto Rico, the Commonwealth of the 
     Northern Mariana Islands, Guam, the Virgin Islands, and 
     American Samoa.''; and
       (2) by striking paragraph (4).
       (e) Miscellaneous Amendments to 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 I of subtitle A, are amended by 
     striking ``481'' in the item relating to chapter 23 and 
     inserting ``480''.
       (2) Section 130a is amended--
       (A) by striking ``Effective October 1, 2002, the'' in 
     subsection (a) and inserting ``The'';
       (B) by striking ``baseline number'' in subsection (a) and 
     all that follows through ``means the'' in subsection (c);
       (C) by transferring subsection (e) so as to appear before 
     subsection (d) and redesignating that subsection as 
     subsection (b);
       (D) by redesignating subsections (d) and (f) as subsection 
     (c) and (d), respectively; and
       (E) by striking subsection (g).
       (3) Section 437(c) is amended by inserting ``(50 U.S.C. 
     415b)'' after ``National Security Act of 1947''.
       (4) Section 487(d) is amended by striking ``Other 
     Definitions'' and inserting ``Inapplicability to Coast 
     Guard''.
       (5) Section 503(c)(1)(B) is amended by striking 
     ``education'' in the second sentence and inserting 
     ``educational''.
       (6) Section 632(c)(1) is amended--
       (A) by striking ``paragraph (2)'' and inserting ``paragraph 
     (3)''; and
       (B) by striking ``under that paragraph'' and inserting 
     ``under that subsection''.
       (7) The item relating to section 1076b in the table of 
     sections at the beginning of chapter 55 is amended to read as 
     follows:

``1076b. TRICARE program: coverage for members of the Ready Reserve.''.
       (8) Section 1108(e) is amended by striking ``heath'' and 
     inserting ``health''.
       (9) Section 1406(g) is amended--
       (A) by striking ``section 305'' and inserting ``section 
     245''; and
       (B) by inserting ``(33 U.S.C. 3045)'' after ``of 2002''.
       (10) Sections 1448(b)(1)(F), 1448(d)(2)(B), 1448(d)(6)(A), 
     and 1458(j) are amended by striking ``on or after the date of 
     the enactment of the National Defense Authorization Act for 
     Fiscal Year 2004'' and inserting ``after November 23, 
     2003,''.
       (11) Sections 1463(a), 1465(c)(1)(A), 1465(c)(1)(B), 
     1465(c)(4)(A), 1465(c)(4)(B), and 1466(b)(2)(D) are amended 
     by striking ``1413, 1413a,'' and inserting ``1413a''.
       (12) Section 1557(b) is amended ``Effective October 1, 
     2002, final'' and inserting ``Final''.
       (13) Section 1566 is amended--
       (A) in subsection (g)(2), by striking ``the date that is 6 
     months after the date of the enactment of the Help America 
     Vote Act of 2002'' in the last sentence and inserting ``April 
     29, 2003''; and
       (B) in subsections (h), (i)(1), and (i)(3), by striking 
     ``Armed Forces'' and inserting ``armed forces''.
       (14) Sections 1724(d) and 1732(d)(1) are amended by 
     striking ``its decision'' in the second sentence and 
     inserting ``the decision of the Secretary''.
       (15) Section 1761(b) is amended--
       (A) in the matter preceding paragraph (1), by striking 
     ``provide for--'' and inserting ``provide for the 
     following:'';
       (B) in paragraphs (1), (2), and (3), by capitalizing the 
     first letter of the first word;
       (C) at the end of paragraphs (1) and (2), by striking the 
     semicolon and inserting a period;
       (D) at the end of paragraph (3), by striking ``; and'' and 
     inserting a period; and
       (E) by striking paragraph (4).
       (16) Section 2193b(c)(2) is amended by striking ``the date 
     of the enactment of this section'' and inserting ``October 5, 
     1999''.
       (17) Section 2224(c) is amended in the matter preceding 
     paragraph (1) by striking ``subtitle II of chapter 35'' and 
     inserting ``subchapter II of chapter 35''.
       (18) Section 2349(d) is amended by striking ``section 
     2350a(i)(3)'' and inserting ``section 2350a(i)(2)''.
       (19) Section 2350b(g) is amended--
       (A) in the matter preceding paragraph (1), by inserting 
     ``the Secretary of Defense'' after ``authorizing''; and
       (B) in paragraph (1), by striking ``the Secretary of 
     Defense''.
       (20) Section 2540(b)(2) is amended by inserting ``, as in 
     effect on that date'' before the period at the end.
       (21) Section 2662(a)(2) is amended--
       (A) in the first sentence, by striking ``must include a 
     summarization'' and inserting ``shall include a summary''; 
     and
       (B) in the second sentence, by inserting ``of paragraph 
     (1)'' after ``in subparagraph (E)''.
       (22) Section 2672a(a) is amended--
       (A) in the matter preceding paragraph (1), by inserting 
     ``in any case in which the Secretary determines'' after ``in 
     land'';
       (B) in paragraph (1), by striking ``the Secretary 
     determines'' and inserting ``the acquisition''; and
       (C) in paragraph (2), by inserting ``the acquisition'' 
     after ``(2)''.
       (23) Section 2701 is amended--
       (A) in subsection (a)(2), by inserting ``(42 U.S.C. 9620)'' 
     before the period at the end;
       (B) in subsection (c)(2), by striking ``of CERCLA (relating 
     to settlements)'' and inserting ``(relating to settlements) 
     of CERCLA (42 U.S.C. 9622)'';
       (C) in subsection (e), by inserting ``(42 U.S.C. 9619)'' 
     after ``CERCLA''; and
       (D) in subsection (j)(2), by striking ``the Comprehensive'' 
     and all the follows through ``of 1980'' and inserting 
     ``CERCLA''.
       (24) Section 2702 is amended by inserting ``(42 U.S.C. 
     9660(a)(5))'' in the second sentence of subsection (a) before 
     the period at the end.
       (25) Section 2703(b) is amended by striking ``The terms'' 
     at the beginning of the second sentence and inserting ``For 
     purposes of the preceding sentence, the terms''.
       (26) Section 2704 is amended by inserting ``(42 U.S.C. 
     9604(i))'' in subsections (c), (e), and (f) after ``CERCLA''.
       (27) The second section 3755, added by section 543(b)(1) of 
     the Bob Stump National Defense Authorization Act for Fiscal 
     Year 2003 (Public Law 107-314; 116 Stat. 2549), is 
     redesignated as section 3756, and the item relating to that 
     section in the table of sections at the beginning of chapter 
     357 is revised to reflect such redesignation.
       (28) Section 4689 is amended by striking ``Building'' after 
     ``Capitol''.
       (29) The second section 6257, added by section 543(c)(1) of 
     the Bob Stump National Defense Authorization Act for Fiscal 
     Year 2003 (Public Law 107-314; 116 Stat. 2549), is 
     redesignated as section 6258, and the item relating to that 
     section in the table of sections at the beginning of chapter 
     567 is revised to reflect such redesignation.
       (30) Section 7102 is amended--
       (A) by striking ``Authority'' at the beginning of 
     subsection (a) and inserting ``Master of Military Studies'';
       (B) by striking ``Marine Corps War College'' at the 
     beginning of subsection (b) and inserting ``Master of 
     Strategic Studies'';
       (C) by striking ``Command and Staff College of the Marine 
     Corps University'' at the beginning of subsection (c) and 
     inserting ``Master of Operational Studies''; and
       (D) by striking ``subsections (a) and (b)'' in subsection 
     (d) and inserting ``this section''.
       (31) Section 8084 is amended by striking ``capabilty'' and 
     inserting ``capability''.
       (32) The second section 8755, added by section 543(d)(1) of 
     the Bob Stump National Defense Authorization Act for Fiscal 
     Year 2003 (Public Law 107-314; 116 Stat. 2550), is 
     redesignated as section 8756, and the item relating to that 
     section in the table of sections at the beginning of chapter 
     857 is revised to reflect such redesignation.
       (33) The table in section 12012(a) is amended by inserting 
     a colon after ``Air National Guard''.
       (f) Title 37, United States Code.--Section 323(h) of title 
     37, United States Code, is amended by striking ``Secretary of 
     Transportation'' and inserting ``Secretary of Homeland 
     Security''.
       (g) Public Law 108-136.--Effective as of November 24, 2003, 
     and as if included therein as enacted, the National Defense 
     Authorization Act for Fiscal Year 2004 (Public Law 108-136) 
     is amended as follows:
       (1) Sections 832(a) and 834(a) (117 Stat. 1550) are each 
     amended by striking ``such title'' and inserting ``title 10, 
     United States Code,''
       (2) Section 931(a)(1) (117 Stat. 1580) is amended by 
     striking ``and donations'' in the first quoted matter and 
     inserting ``or donations''.
       (3) Section 2204(b) (117 Stat. 1706) is amended by striking 
     ``section 2101(a)'' each place it appears and inserting 
     ``section 2201(a)''.
       (h) Public Law 107-314.--Effective as of December 2, 2002, 
     and as if included therein as enacted, section 1064(a)(2) of 
     the Bob Stump National Defense Authorization Act for Fiscal 
     Year 2003 (Public Law 107-314; 116 Stat. 2654) is amended by 
     inserting ``the item relating to'' after ``is amended by 
     inserting after''.
       (i) Public Law 101-510.--Section 2902(e)(2)(B) 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--
       (1) in clause (i), by striking ``Subcommittee on Readiness, 
     Sustainability, and Support'' and inserting ``Subcommittee on 
     Readiness and Management Support''; and
       (2) in clause (ii), by striking ``Subcommittee on Military 
     Installations and Facilities'' and inserting ``Subcommittee 
     on Readiness''.
       (j) National Security Act of 1947.--Sections 
     702(a)(6)(B)(iv)(I), 703(a)(6)(B)(iv)(I), and 704(f)(2)(D)(i) 
     of the National Security Act of 1947 are amended by striking 
     ``responsible records'' and inserting ``responsive records''.
       (k) Codification Relating to Leave for Attendance at 
     Certain Hearings.--Subsection (b) of section 363 of the 
     Personal Responsibility and Work Opportunity Reconciliation 
     Act of 1996 (10 U.S.C. 704 note) is--
       (1) transferred to section 704 of title 10, United States 
     Code;
       (2) inserted at the end of that section;
       (3) redesignated as subsection (c); and
       (4) amended--
       (A) by striking ``Armed Forces'' each place it appears and 
     inserting ``armed forces'';
       (B) in paragraph (1)--
       (i) by striking ``Secretary of each'' and all that follows 
     through ``in the Navy,'' and inserting ``Secretary 
     concerned''; and
       (ii) by striking ``(as defined in section 101 of title 10, 
     United States Code)''; and
       (C) in paragraph (3)--
       (i) by striking ``For purposes of this subsection--'' and 
     inserting ``In this subsection:'';
       (ii) in subparagraph (A), by striking ``title 10, United 
     States Code'' and inserting ``this title''; and
       (iii) in subparagraph (B), by striking ``such term'' and 
     inserting ``that term''.

[[Page H3327]]

     SEC. 1074. COMMISSION ON THE LONG-TERM IMPLEMENTATION OF THE 
                   NEW STRATEGIC POSTURE OF THE UNITED STATES.

       (a) Establishment of Commission.--
       (1) Establishment.--There is hereby established a 
     commission to be known as the ``Commission on the Long-Term 
     Implementation of the New Strategic Posture of the United 
     States''. The Secretary of Defense shall enter into a 
     contract with a federally funded research and development 
     center to provide for the organization, management, and 
     support of the Commission. Such contract shall be entered 
     into in consultation with the Secretary of Energy.
       (2) Composition.--(A) The Commission shall be composed of 
     12 members who shall be appointed by the Secretary of 
     Defense. In selecting individuals for appointment to the 
     Commission, the Secretary of Defense shall consult with the 
     chairman and ranking minority member of the Committee on 
     Armed Services of the Senate and the chairman and ranking 
     minority member of the Committee on Armed Services of the 
     House of Representatives.
       (B) Members of the Commission shall be appointed from among 
     private United States citizens with knowledge and expertise 
     in the political, military, operational, and technical 
     aspects of nuclear strategy.
       (3) Chairman of the commission.--The Secretary of Defense 
     shall designate one of the members of the Commission to serve 
     as chairman of the Commission.
       (4) Period of appointment; vacancies.--Members shall be 
     appointed for the life of the Commission. Any vacancy in the 
     Commission shall be filled in the same manner as the original 
     appointment.
       (5) Security clearances.--All members of the Commission 
     shall hold appropriate security clearances.
       (b) Duties of Commission.--
       (1) Review of Long-Term Implementation of the Nuclear 
     Posture Review.--The Commission shall examine long-term 
     programmatic requirements to achieve the goals set forth in 
     the report of the Secretary of Defense submitted to Congress 
     on December 31, 2001, providing the results of the Nuclear 
     Posture Review conducted pursuant to section 1041 of the 
     Floyd D. Spence National Defense Authorization Act for Fiscal 
     Year 2001 (as enacted into law by Public Law 106-398; 114 
     Stat. 1654, 1654A-262) and results of periodic assessments of 
     the Nuclear Posture Review. Matters examined by the 
     Commission shall include the following:
       (A) The process of establishing requirements for strategic 
     forces and how that process accommodates employment of 
     nonnuclear strike platforms and munitions in a strategic 
     role.
       (B) How strategic intelligence, reconnaissance, and 
     surveillance requirements differ from nuclear intelligence, 
     reconnaissance, and surveillance requirements.
       (C) The ability of a limited number of strategic platforms 
     to carry out a growing range of nonnuclear strategic strike 
     missions.
       (D) The limits of tactical systems to perform nonnuclear 
     global strategic missions in a prompt manner.
       (E) An assessment of the ability of the current nuclear 
     stockpile to address the evolving strategic threat 
     environment through 2025.
       (2) Recommendations.--The Commission shall include in its 
     report recommendations with respect to the following:
       (A) Changes to the requirements process to employ 
     nonnuclear strike platforms and munitions in a strategic 
     role.
       (B) Changes to the nuclear stockpile and infrastructure 
     required to preserve a nuclear capability commensurate with 
     the changes to the strategic threat environment through 2025.
       (C) Actions the Secretary of Defense and the Secretary of 
     Energy can take to preserve flexibility of the defense 
     nuclear comples while reducing the cost of a Cold War 
     strategic infrastructure.
       (D) Identify shortfalls in the strategic modernization 
     programs of the United States that would undermine the 
     ability of the United States to develop new nonnuclear 
     strategic strike capabilities.
       (3) Cooperation from government officials.--(A) In carrying 
     out its duties, the Commission shall receive the full and 
     timely cooperation of the Secretary of Defense, the Secretary 
     of Energy, and any other United States Government official in 
     providing the Commission with analyses, briefings, and other 
     information necessary for the fulfillment of its 
     responsibilities.
       (B) The Secretary of Energy and the Secretary of Defense 
     shall each designate at least one officer or employee of the 
     Department of Energy and the Department of Defense, 
     respectively, to serve as a liaison officer between the 
     department and the Commission.
       (c) Reports.--
       (1) Commission report.--The Commission shall submit to the 
     Secretary of Defense and the Committees on Armed Services of 
     the Senate and House of Representatives a report on the 
     Commission's findings and conclusions. Such report shall be 
     submitted not later that 28 months after the date of the 
     first meeting of the Commission.
       (2) Secretary of defense response.--Not later than one year 
     after the date on which the Commission submits its report 
     under paragraph (1), the Secretary of Defense shall submit to 
     Congress a report--
       (A) commenting on the Commission's findings and 
     conclusions; and
       (B) explaining what actions, if any, the Secretary intends 
     to take to implement the recommendations of the Commission 
     and, with respect to each such recommendation, the 
     Secretary's reasons for implementing, or not implementing, 
     the recommendation.
       (d) Hearings and Procedures.--
       (1) Hearings.--The Commission may, for the purpose of 
     carrying out the purposes of this section, hold hearings and 
     take testimony.
       (2) Procedures.--The federally funded research and 
     development center with which a contract is entered into 
     under subsection (a)(1) shall be responsible for establishing 
     appropriate procedures for the Commission.
       (3) Detail of government employees.--Upon request of the 
     chairman of the Commission, the head of any Federal 
     department or agency may detail, on a nonreimbursable basis, 
     personnel of that department or agency to the Commission to 
     assist it in carrying out its duties.
       (e) Funding.--Funds for activities of the Commission shall 
     be provided from amounts appropriated for the Department of 
     Defense.
       (f) Termination of Commission.--The Commission shall 
     terminate 60 days after the date of the submission of its 
     report under subsection (c)(1).
       (g) Implementation.--
       (1) FFRDC contract.--The Secretary of Defense shall enter 
     into the contract required under subsection (a)(1) not later 
     that 60 days after the date of the enactment of this Act.
       (2) First meeting.--The Commission shall convene its first 
     meeting not later than 60 days after the date as of which all 
     members of the Commission have been appointed.

     SEC. 1075. LIABILITY PROTECTION FOR CERTAIN DEPARTMENT OF 
                   DEFENSE VOLUNTEERS WORKING IN THE MARITIME 
                   ENVIRONMENT.

       (a) Authority to Accept Certain Volunteer Services.--
     Subsection (a) of section 1588 of title 10, United States 
     Code, is amended by adding at the end the following new 
     paragraph:
       ``(8) Voluntary services provided to the United States 
     Military Academy, United States Naval Academy, and United 
     States Air Force Academy for the training of cadets and 
     midshipmen.''.
       (b) Liability Protection for Volunteers in Maritime 
     Environment.--Subparagraph (D) of subsection (d)(1) of such 
     section is amended--
       (1) by striking ``and'' after ``this title'' and inserting 
     a comma; and
       (2) by inserting before the period at the end the 
     following: ``, and chapters 20 and 22 of title 46 (relating 
     to claims for damages or loss on navigable waters)''.

     SEC. 1076. TRANSFER OF HISTORIC F3A-1 BREWSTER CORSAIR 
                   AIRCRAFT.

       (a) Authority to Convey.--The Secretary of the Navy may 
     convey, without consideration, to Lex Cralley, of Princeton 
     Minnesota (in this section referred to as ``transferee''), 
     all right, title and interest of the United States in and to 
     a F3A-1 Brewster Corsair aircraft (Bureau Number 04634). The 
     conveyance shall be made by means of a deed of gift.
       (b) Condition of Aircraft.--The aircraft shall be conveyed 
     under subsection (a) in its current unflyable, ``as is'' 
     condition. The Secretary is not required to repair or alter 
     the condition of the aircraft before conveying ownership of 
     the aircraft.
       (c) Conveyance at No Cost to the United States.--The 
     conveyance of the aircraft under subsection (a) shall be made 
     at no cost to the United States. Any costs associated with 
     the conveyance and costs of operation and maintenance of the 
     aircraft conveyed shall be borne by the transferee.
       (d) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with a conveyance under this section as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

     SEC. 1101. PAYMENT OF FEDERAL EMPLOYEE HEALTH BENEFIT 
                   PREMIUMS FOR MOBILIZED FEDERAL EMPLOYEES.

       (a) Authority to Continue Benefit Coverage.--Section 8905a 
     of title 5, United States Code is amended--
       (1) in subsection (a), by striking ``paragraph (1) or (2) 
     of'';
       (2) in subsection (b)--
       (A) in paragraph (1)(B), by striking ``and'' at the end;
       (B) in paragraph (2)(C), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following new paragraph:
       ``(3) any employee who--
       ``(A) is enrolled in a health benefits plan under this 
     chapter;
       ``(B) is a member of a Reserve component of the armed 
     forces;
       ``(C) is called or ordered to active duty in support of a 
     contingency operation (as defined in section 101(a)(13) of 
     title 10);
       ``(D) is placed on leave without pay or separated from 
     service to perform active duty; and
       ``(E) serves on active duty for a period of more than 30 
     consecutive days.''; and
       (4) in subsection (e)(1)--
       (A) in subparagraph (A), by striking ``or'' at the end;
       (B) in subparagraph (B), by striking the period at the end 
     and inserting ``; or''; and
       (C) by adding at the end the following new subparagraph:
       ``(C) in the case of an employee described in subsection 
     (b)(3), the date which is 24 months after the employee is 
     placed on leave without pay or separated from service to 
     perform active duty.''.
       (b) Authority for Agencies To Pay Premiums.--Subparagraph 
     (C) of section 8906(e)(3) of such title is amended by 
     striking ``18 months'' and inserting ``24 months''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to Federal employees called or 
     ordered to active duty on or after September 14, 2001.

     SEC. 1102. FOREIGN LANGUAGE PROFICIENCY PAY.

       Section 1596a of title 10, United States Code, is amended--

[[Page H3328]]

       (1) in subsection (a)(2), by striking ``during a 
     contingency operation supported by the armed forces''; and
       (2) in subsection (c), by inserting before the period at 
     the end the following: ``and shall not be considered base pay 
     for any purpose''.

     SEC. 1103. PAY PARITY FOR CIVILIAN INTELLIGENCE PERSONNEL.

       Section 1602 of title 10, United States Code, is amended--
       (1) in subsection (a), by striking ``in relation to the 
     rates of pay provided in subpart D of part III of title 5 for 
     positions subject to that subpart which have corresponding 
     levels of duties and responsibilities'' and inserting ``in 
     relation to the rates of pay provided for Department of 
     Defense Senior Executive, Senior Level, and other comparable 
     positions''; and
       (2) by amending subsection (b) to read as follows:
       ``(b) Performance Appraisal System.--The positions referred 
     to in subsection (a) shall be subject to a performance 
     appraisal system which, as designed and applied, is certified 
     by the Secretary of Defense as making meaningful distinctions 
     based on relative performance and may be the same performance 
     appraisal system established and implemented within the 
     Department for members of the Senior Executive Service.''.

     SEC. 1104. PAY PARITY FOR SENIOR EXECUTIVES IN 
                   NONAPPROPRIATED FUND INSTRUMENTALITIES.

       (a) In General.--Chapter 81 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 1599e. Senior executive compensation for 
       nonappropriated fund instrumentalities

       ``Notwithstanding any provisions of title 5, the Secretary 
     of Defense may regulate the amount of total compensation, 
     including the rate of basic pay, of senior executives 
     employed by Department of Defense nonappropriated fund 
     instrumentalities, to provide for parity with the total 
     compensation, including basic pay, of Department of Defense 
     employees in the Senior Executive Service and other similar 
     senior executive positions.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 1599d the following new item:

``1599e. Senior executive compensation for nonappropriated fund 
              instrumentalities.''.

     SEC. 1105. PROHIBITION OF UNAUTHORIZED WEARING OR USE OF 
                   CIVILIAN MEDALS OR DECORATIONS.

       Chapter 57 of title 10, United States Code, is amended by 
     adding at the end the following new section:

     ``Sec. 1134. Civilian medals or decorations of the Department 
       of Defense

       ``(a) Prohibition.--Except with the written permission of 
     the Secretary of Defense or when authorized by regulations, 
     no person may knowingly--
       ``(1) wear; or
       ``(2) use, in connection with any merchandise, retail 
     product, impersonation, solicitation, or commercial activity;

     medals, decorations, or other insignia awarded by the 
     Secretary of Defense to recognize Department of Defense 
     civilian employees and other individuals who render service 
     to the Department of Defense.
       ``(b) Authority To Enjoin Violations.--Whenever it appears 
     to the Attorney General that any person is engaged or is 
     about to engage in an act or practice which constitutes or 
     will constitute conduct prohibited by subsection (a), the 
     Attorney General may initiate a civil proceeding in a 
     district court of the United States to enjoin such act or 
     practice. Such court shall proceed as soon as practicable to 
     the hearing and determination of such action and may, at any 
     time before final determination, enter such restraining 
     orders or prohibitions, or take such other actions as is 
     warranted, including imposing a civil penalty not to exceed 
     $25,000 for each violation, to prevent injury to the United 
     States or to any person or class of persons for whose 
     protection the action is brought.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``1134. Civilian medals or decorations of the Department of Defense.''

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

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

     SEC. 1201. DOCUMENTATION OF CONDITIONS IN IRAQ UNDER FORMER 
                   DICTATORIAL GOVERNMENT AS PART OF TRANSITION TO 
                   POST-DICTATORIAL GOVERNMENT.

       (a) Findings.--The Congress makes the following findings:
       (1) The regime of Saddam Hussein in Iraq was a dictatorial 
     regime prone to secrecy in the maintenance of its hold on 
     power.
       (2) The people of Iraq all suffered as a result of Saddam 
     Hussein's dictatorial control.
       (3) Efforts in other post-dictatorial states to document 
     the crimes and abuses of their predecessor dictatorial 
     governments have contributed to the process of national 
     reconciliation and have served as a reminder about the 
     importance of protecting individual rights.
       (b) Transfer of Certain Documents and Records.--The 
     Secretary of Defense shall, to the extent practicable, 
     establish a process for expeditiously transferring to 
     indigenous Iraqi entities committed to documenting publicly 
     the nature of the Saddam Hussein regime any documents and 
     records described in subsection (c) that are obtained by 
     United States military forces in Iraq.
       (c) Covered Documents and Records.--The documents and 
     records referred to in subsection (b) are documents and 
     records--
       (1) that were created by--
       (A) the Government of Iraq between 1968 and May 1, 2003; or
       (B) the Ba'ath Socialist Party in Iraq after 1968; and
       (2) that provide insight into--
       (A) the functioning of the Government of Iraq or the Ba'ath 
     Socialist Party in Iraq; or
       (B) the crimes, atrocities, and brutal practices of the 
     Iraqi government towards the people of Iraq during the period 
     between 1968 and May 1, 2003.

     SEC. 1202. SUPPORT OF MILITARY OPERATIONS TO COMBAT 
                   TERRORISM.

       (a) Authority.--The Secretary of Defense may expend up to 
     $25,000,000 during any fiscal year during which this 
     subsection is in effect to provide support to foreign forces, 
     irregular forces, groups, or individuals engaged in 
     supporting or facilitating ongoing military operations by 
     United States special operations forces to combat terrorism.
       (b) Intelligence Activities.--This section does not 
     constitute authority to conduct a covert action, as such term 
     is defined in section 503(e) of the National Security Act of 
     1947 (50 U.S.C. 413b(e)).
       (c) Annual Report.--Not later than 30 days after the close 
     of each fiscal year during which subsection (a) is in effect, 
     the Secretary of Defense shall submit to the congressional 
     defense committees a report on support provided under this 
     section during that fiscal year. Each such report shall 
     describe the support provided, including a statement of the 
     recipient of the support and the amount obligated to provide 
     the support.
       (d) Fiscal Year 2005 Limitation.--Support may be provided 
     under subsection (a) during fiscal year 2005 only from funds 
     made available for operations and maintenance pursuant to 
     title XV of this Act.
       (e) Period of Authority.--The authority under subsection 
     (a) is in effect during each of fiscal years 2005 through 
     2007.

     SEC. 1203. COMMANDERS' EMERGENCY RESPONSE PROGRAM.

       (a) Fiscal Year 2005 Authority.--During fiscal year 2005, 
     from funds made available to the Department of Defense for 
     operation and maintenance pursuant to title XV of this Act, 
     not to exceed $300,000,000 may be used, notwithstanding any 
     other provision of law, to provide funds for the Commanders' 
     Emergency Response Program, established by the Administrator 
     of the Coalition Provisional Authority for the purpose of 
     enabling military commanders in Iraq to respond to urgent 
     humanitarian relief and reconstruction requirements within 
     their areas of responsibility by carrying out programs that 
     will immediately assist the Iraqi people, and to provide 
     funds for a similar program to assist the people of 
     Afghanistan.
       (b) Quarterly Reports.--The Secretary of Defense shall 
     submit to the congressional defense committees a quarterly 
     report, beginning on January 15, 2005, regarding the source 
     of funds and the allocation and use of funds made available 
     pursuant to the authorityprovided in this section.

     SEC. 1204. STATUS OF IRAQI SECURITY FORCES.

       (a) Strategic Plan.--No later than 120 days after the date 
     of the enactment of this Act, the Secretary of Defense shall 
     submit to the Committees on Armed Services of the Senate and 
     House of Representatives a strategic plan setting forth the 
     manner in which the United States will achieve the goal of 
     establishing viable and professional Iraqi security forces 
     able to provide for the long-term security of the Iraqi 
     people.
       (b) Components.--The strategic plan established under 
     subsection (a) shall include at least the following:
       (1) Recruiting and retention goals, shown for each service 
     of the Iraqi security forces.
       (2) Training plans for each service of the Iraqi security 
     forces.
       (3) A description of metrics by which progress toward the 
     goal of Iraqi provision for its own security can be measured.
       (4) A description of equipment needs, shown for each 
     service of the Iraqi security forces.
       (5) A resourcing plan for achieving the goals of the 
     strategic plan.
       (6) Personnel plans in terms of United States military and 
     contractor personnel to be used in training each such 
     service.
       (7) A description of challenges faced and opportunities 
     presented in particular regions of Iraq and a plan for 
     addressing those challenges.
       (8) A discussion of training and deployment successes and 
     failures to the date of the report and how lessons from those 
     successes and failures will be incorporated into the 
     strategic plan.
       (c) Subsequent Reports.--Ninety days following the 
     submission of the strategic plan to Congress under subsection 
     (a) and every 90 days thereafter, the Secretary shall submit 
     to the Committees on Armed Services of the Senate and House 
     of Representatives a report on progress toward meeting the 
     goals established in the strategic plan. Each such report 
     shall address the following:
       (1) The number of forces recruited, currently serving, and 
     that have left (along with a break-down of the reasons for 
     leaving) by service over the period in question.
       (2) Progress in meeting training goals.
       (3) Progress in achieving other metrics as identified in 
     the strategic plan.
       (4) A description and analysis of any training incidents 
     and deployment successes and failures, with a discussion of 
     how those incidents and successes will affect future efforts 
     to achieve the goals of the strategic plan.
       (d) Iraqi Security Forces Defined.--In this section, the 
     term ``Iraqi security forces'' means the Iraqi Armed Forces 
     (IAF), the Iraqi Civil Defense Corps (ICDC), the Iraqi Police 
     Service

[[Page H3329]]

     (IPS), the Department of Border Enforcement (DBE), and the 
     Facilities Protection Services (FCS).

     SEC. 1205. GUIDANCE AND REPORT REQUIRED ON CONTRACTORS 
                   SUPPORTING DEPLOYED FORCES IN IRAQ.

       (a) Guidance.--Not later than 90 days after the date of the 
     enactment of this Act, the Secretary of Defense shall issue 
     guidance on how to manage contractors that support deployed 
     forces and shall direct the Secretaries of the military 
     departments to develop procedures to ensure implementation of 
     the guidance. The guidance shall--
       (1) establish policies for the use of contractors to 
     support deployed forces;
       (2) delineate the roles and responsibilities of commanders 
     regarding the management and oversight of contractors that 
     support deployed forces; and
       (3) integrate into a single document other guidance and 
     doctrine that may affect Department of Defense 
     responsibilities to contractors in locations where members of 
     the Armed Forces are deployed.
       (b) Report.--Not later than 30 days after issuing the 
     guidance required under subsection (a), the Secretary of 
     Defense shall submit to the Committees on Armed Services of 
     the House of Representatives and the Senate a report 
     containing a discussion of the following:
       (1) A description of the process used by the Department of 
     Defense for deciding which security functions in Iraq will be 
     performed by military personnel and which by private security 
     companies.
       (2) A discussion of the overall chain of command and 
     oversight mechanisms that are in place to ensure adequate 
     command and supervision of contractor personnel in critical 
     security roles.
       (3) An explanation of the rules of engagement for private 
     security personnel throughout Iraq, along with how training 
     in these rules of engagement is being carried out.
       (4) A description of mechanisms that exist or that are 
     under consideration to share intelligence and standardize 
     communications procedures among private security companies.
       (5) Casualty and fatality figures for each contractor in 
     Iraq supporting deployed forces over the period beginning on 
     May 1, 2003, and ending on the date of the issuance of the 
     guidance.
       (6) Disciplinary or criminal actions brought against such 
     contractors during the period covered by the report.
       (7) Any incidents of note in Iraq regarding such 
     contractors during the period covered by the report.
       (8) A plan for establishing and implementing a process for 
     collecting data on individual contractors, the value of the 
     contracts, and the number of personnel in Iraq performing the 
     following services:
       (A) Personal security details.
       (B) Non-military site security.
       (C) Non-military convoy security.
       (D) Interrogation services at interrogation centers 
     operated by the Department of Defense.

     SEC. 1206. FINDINGS AND SENSE OF CONGRESS CONCERNING ARMY 
                   SPECIALIST JOSEPH DARBY.

       (a) Findings.--Congress makes the following findings:
       (1) The need to act in accord with one's conscience, 
     risking one's career and even the esteem of one's colleagues 
     by pursuing what is right is especially important today.
       (2) While the Department of Defense investigate the 
     horrific abuses in American detention facilities in Iraq, the 
     Nation should bear in mind that the abuses were only brought 
     to light because of the courage of an American soldier.
       (3) By alerting his superiors to abuses at Abu Ghraib 
     prison in Iraq, Army Specialist Joseph Darby demonstrated the 
     courage to speak out and do what is right for his country.
       (4) Such an action is especially important in light of the 
     many challenges facing the country.
       (5) Specialist Darby deserves the Nation's thanks for 
     speaking up and for standing up for what is right.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) the Secretary of Defense should make every protection 
     available to Army Specialist Joseph Darby and others who 
     demonstrate such courage; and
       (2) Specialist Darby should be commended appropriately by 
     the Secretary of the Army.

                       Subtitle B--Other Matters

     SEC. 1211. ASSIGNMENT OF ALLIED NAVAL PERSONNEL TO SUBMARINE 
                   SAFETY PROGRAMS.

       (a) In General.--Chapter 631 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 7234. Submarine safety programs: participation of 
       allied naval personnel

       ``(a) Acceptance of Assignment of Foreign Naval 
     Personnel.--In order to facilitate the development, 
     standardization, and interoperability of submarine vessel 
     safety and rescue systems and procedures, the Secretary of 
     the Navy may conduct a program under which members of the 
     naval service of any of the member nations of the North 
     Atlantic Treaty Organization and Australia, Japan, the 
     Republic of Korea, and Sweden may be assigned to United 
     States commands to work on such systems and procedures.
       ``(b) Costs for Foreign Personnel.--(1) The United States 
     may not pay the following costs for a member of a foreign 
     naval service sent to the United States under the program 
     authorized by this section:
       ``(A) Salary.
       ``(B) Per diem.
       ``(C) Cost of living.
       ``(D) Travel costs.
       ``(E) Cost of language or other training.
       ``(F) Other costs.
       ``(2) Paragraph (1) does not apply to the following costs, 
     which may be paid by the United States:
       ``(A) The cost of temporary duty directed by the United 
     States Navy.
       ``(B) The cost of training programs conducted to 
     familiarize, orient, or certify members of foreign naval 
     services regarding unique aspects of their assignments.
       ``(C) Costs incident to the use of the facilities of the 
     United States Navy in the performance of assigned duties.
       ``(d) Applicability to Authority to Enter Into 
     Agreements.--The requirements of this section shall apply in 
     the exercise of any authority of the Secretary of the Navy to 
     enter into an agreement with the government of a foreign 
     country, subject to the concurrence of the Secretary of 
     State, to provide for the assignment of members of the naval 
     service of the foreign country to a United States Navy 
     submarine safety program.
       ``(e) Regulations.--The Secretary of the Navy may prescribe 
     regulations for the application of this section in the 
     exercise of authority referred to in subsection (d).''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``7234. Submarine safety programs: participation of allied naval 
              personnel.''.

     SEC. 1212. EXPANSION OF ENTITIES OF THE PEOPLE'S REPUBLIC OF 
                   CHINA SUBJECT TO CERTAIN PRESIDENTIAL 
                   AUTHORITIES WHEN OPERATING IN THE UNITED 
                   STATES.

       Section 1237(b)(4)(B)(i) of the Strom Thurmond National 
     Defense Authorization Act for Fiscal Year 1999 (50 U.S.C. 
     1701 note) is amended by inserting after ``the People's 
     Liberation Army'' the following: ``, by a ministry of the 
     government of the People's Republic of China, or by an entity 
     affiliated with the defense industrial base of the People's 
     Republic of China''.

     SEC. 1213. REPORT BY PRESIDENT ON GLOBAL PEACE OPERATIONS 
                   INITIATIVE.

       Not later than one year after the date of the enactment of 
     this Act, the President shall submit to the Congress a report 
     on the Global Peace Operations Initiative. The report shall 
     include the following elements:
       (1) A summary of the goals of the Global Peace Operations 
     Initiative and the timetable for achieving those goals.
       (2) An examination of the mechanisms by which the United 
     States will ensure that foreign countries acquiring new 
     capabilities as a result of that Initiative will use those 
     capabilities to the national security benefit of the United 
     States.
       (3) An examination of the mechanisms by which the United 
     States will ensure that training and equipment provided under 
     that Initiative are used solely for the purposes of 
     peacekeeping and peace enforcement operations.
       (4) An examination of the human rights practices of 
     potential recipients under that Initiative, to include a 
     discussion of each potential recipient's commitment to 
     representative government.
       (5) As assessment of the financial resources required to 
     carry out that Initiative during fiscal years 2005 through 
     2009.
       (6) An assessment of the effectiveness of the program of 
     the Department of State referred to as the African 
     Contingency Operations and Training Assistance program and 
     the capacity of that program to be expanded.
       (7) A review that compares and contrasts the basic military 
     skills required of warfighters and the skills needed for 
     peacekeeping and peace enforcement operations.
       (8) An assessment of the ability of military forces in the 
     developing world to absorb, retain, and use the advanced 
     skills and capabilities needed for effective peacekeeping and 
     peace enforcement operations.
       (9) A proposal for providing sufficient resources to the 
     Department of State to conduct the Global Peace Operations 
     Initiative without significant financial contributions from 
     the Department of Defense.
       (10) An explanation of the reasons of the Administration 
     for proposing to exempt the Global Peace Operations 
     Initiative from existing law related to the type of military 
     and police training the United States may provide to foreign 
     countries.
       (11) An examination of the costs and benefits of 
     transferring responsibility for the training and equipping of 
     foreign military and security forces from the Department of 
     State to the Department of Defense, including an 
     identification of any increased resources that will be 
     provided to the Department of Defense should the Department 
     of Defense become responsible for that activity.

     SEC. 1214. PROCUREMENT SANCTIONS AGAINST FOREIGN PERSONS THAT 
                   TRANSFER CERTAIN DEFENSE ARTICLES AND SERVICES 
                   TO THE PEOPLE'S REPUBLIC OF CHINA.

       (a) Declaration of Policy.--Congress declares that it is 
     the policy of the United States to deny the People's Republic 
     of China such defense goods and defense technology that could 
     be used to threaten the United States or undermine the 
     security of Taiwan or the stability of the Western Pacific 
     region.
       (b) Procurement Sanction.--(1) The Secretary of Defense may 
     not procure, by contract or otherwise, any goods or services 
     from--
       (A) any foreign person the Secretary of Defense determines 
     has, with actual knowledge, on or after the date of the 
     enactment of this Act, exported, transferred, or otherwise 
     provided to governmental or nongovernmental entities of the 
     People's Republic of China any item or class of items on the 
     United States Munitions List (or any item or class of items 
     that are identical, substantially identical, or directly 
     competitive to an item or class of items on the United States 
     Munitions List); and

[[Page H3330]]

       (B) any foreign person the Secretary of Defense 
     determines--
       (i) is a successor entity to a person referred to in 
     paragraph (1);
       (ii) is a parent or subsidiary of a person referred to in 
     paragraph (1); or
       (iii) is an affiliate of a person referred to in paragraph 
     (1) if that affiliate is controlled in fact by such person.
       (2) The prohibition under paragraph (1) with respect to a 
     foreign person shall last for a period of five years after a 
     determination is made by the Secretary of Defense with 
     respect to that person under paragraph (1)(A).
       (c) Public Availability of List of Sanctioned Persons.--(1) 
     The Secretary of Defense shall annually publish in the 
     Federal Register a current list of any foreign persons 
     sanctioned under subsection (b). The removal of foreign 
     persons from, and the addition of foreign persons to, the 
     list shall also be so published.
       (2) The Secretary shall maintain the list published under 
     paragraph (1) on the Internet website of the Department of 
     Defense.
       (d) Removal From List of Sanctioned Persons.--The Secretary 
     of Defense may remove a person from the list of sanctioned 
     persons referred to in subsection (c) only after the five-
     year prohibition period imposed under subsection (b) with 
     respect to the person has expired.
       (e) Exceptions.--(1) Subsection (b) shall not apply--
       (A) to contracts, or subcontracts under such contracts, in 
     existence on the date of the enactment of this Act, including 
     options under such contracts;
       (B) if the Secretary of Defense determines in writing that 
     the person to which the sanctions would otherwise be applied 
     is a sole source supplier of the goods or services being 
     procured, that the goods or services are essential, and that 
     alternative sources are not readily or reasonably available;
       (C) in the case of a contract for routine servicing and 
     maintenance, if the Secretary of Defense determines in 
     writing alternative sources for performing the contract are 
     not readily or reasonably available; or
       (D) if the Secretary of Defense determines in writing that 
     goods or services proposed to be procured under the contract 
     are essential to the national security of the United States.
       (2) Determinations under paragraph (1) shall be published 
     in the Federal Register.
       (f) Definitions.--In this section:
       (1) The term ``foreign person'' has the meaning given the 
     term in section 14 of the Iran and Libya Sanctions Act of 
     1996 (50 U.S.C. 1701).
       (2) The term ``United States Munitions List'' means the 
     list referred to in section 38(a)(1) of the Arms Export 
     Control Act (22 U.S.C. 2778(a)(1)).

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

     SEC. 1301. SPECIFICATION OF COOPERATIVE THREAT REDUCTION 
                   PROGRAMS AND FUNDS.

       (a) Specification of CTR Programs.--For purposes of section 
     301 and other provisions of this Act, Cooperative Threat 
     Reduction programs are the programs specified in section 
     1501(b) of the National Defense Authorization Act for Fiscal 
     Year 1997 (Public Law 104-201; 110 Stat. 2731; 50 U.S.C. 2362 
     note).
       (b) Fiscal Year 2005 Cooperative Threat Reduction Funds 
     Defined.--As used in this title, the term ``fiscal year 2005 
     Cooperative Threat Reduction funds'' means the funds 
     appropriated pursuant to the authorization of appropriations 
     in section 301 for Cooperative Threat Reduction programs.
       (c) Availability of Funds.--Funds appropriated pursuant to 
     the authorization of appropriations in section 301 for 
     Cooperative Threat Reduction programs shall be available for 
     obligation for three fiscal years.

     SEC. 1302. FUNDING ALLOCATIONS.

       (a) Funding for Specific Purposes.--Of the amount 
     authorized to be appropriated to the Department of Defense 
     for fiscal year 2005 in section 301(19) for Cooperative 
     Threat Reduction programs, the following amounts may be 
     obligated for the purposes specified:
       (1) For strategic offensive arms elimination in Russia, 
     $58,522,000.
       (2) For nuclear weapons transportation security in Russia, 
     $26,284,000.
       (3) For nuclear weapons storage security in Russia, 
     $48,720,000.
       (4) For activities designated as Other Assessments/
     Administrative Support, $14,267,000.
       (5) For defense and military contacts, $8,000,000.
       (6) For chemical weapons destruction in Russia, 
     $158,400,000.
       (7) For biological weapons proliferation prevention in the 
     former Soviet Union, $55,013,000.
       (8) For weapons of mass destruction proliferation 
     prevention in the states of the former Soviet Union, 
     $40,030,000.
       (b) Report on Obligation or Expenditure of Funds for Other 
     Purposes.--No fiscal year 2005 Cooperative Threat Reduction 
     funds may be obligated or expended for a purpose other than a 
     purpose listed in paragraphs (1) through (8) of subsection 
     (a) until 30 days after the date that the Secretary of 
     Defense submits to Congress a report on the purpose for which 
     the funds will be obligated or expended and the amount of 
     funds to be obligated or expended. Nothing in the preceding 
     sentence shall be construed as authorizing the obligation or 
     expenditure of fiscal year 2005 Cooperative Threat Reduction 
     funds for a purpose for which the obligation or expenditure 
     of such funds is specifically prohibited under this title or 
     any other provision of law.
       (c) Limited Authority To Vary Individual Amounts.--(1) 
     Subject to paragraphs (2) and (3), in any case in which the 
     Secretary of Defense determines that it is necessary to do so 
     in the national interest, the Secretary may obligate amounts 
     appropriated for fiscal year 2005 for a purpose listed in any 
     of the paragraphs in subsection (a) in excess of the specific 
     amount authorized for that purpose.
       (2) An obligation of funds for a purpose stated in any of 
     the paragraphs in subsection (a) in excess of the specific 
     amount authorized for such purpose may be made using the 
     authority provided in paragraph (1) only after--
       (A) the Secretary submits to Congress notification of the 
     intent to do so together with a complete discussion of the 
     justification for doing so; and
       (B) 15 days have elapsed following the date of the 
     notification.
       (3) The Secretary may not, under the authority provided in 
     paragraph (1), obligate amounts for a purpose stated in any 
     of paragraphs (5) through (8) of subsection (a) in excess of 
     125 percent of the specific amount authorized for such 
     purpose.

     SEC. 1303. TEMPORARY AUTHORITY TO WAIVE LIMITATION ON FUNDING 
                   FOR CHEMICAL WEAPONS DESTRUCTION FACILITY IN 
                   RUSSIA.

       (a) Temporary Authority.--Section 1305 of the National 
     Defense Authorization Act for Fiscal Year 2000 (Public Law 
     106-65; 22 U.S.C. 5952 note) shall not apply if the President 
     submits to Congress a written certification that includes--
       (1) a statement as to why a waiver of the conditions 
     described in such section 1305 is important to the national 
     security interests of the United States;
       (2) a full and complete justification for the waiver of the 
     conditions; and
       (3) a plan to promote a full and accurate disclosure by 
     Russia regarding the size, content, status, and location of 
     its chemical weapons stockpile.
       (b) Expiration.--The authority in subsection (a) shall 
     expire on September 30, 2005.

      TITLE XIV--EXPORT CONTROLS AND COUNTERPROLIFERATION MATTERS

                   Subtitle A--Export Control Matters

     SEC. 1401. DEFINITIONS UNDER ARMS EXPORT CONTROL ACT.

       Section 47 of the Arms Export Control Act (22 U.S.C. 2794) 
     is amended--
       (1) in paragraph (10)--
       (A) by moving the margin two ems to the left; and
       (B) by striking ``and'' at the end;
       (2) in paragraph (11)--
       (A) by moving the margin two ems to the left; and
       (B) by striking the period at the end and inserting a 
     semicolon; and
       (3) by adding at the end the following:
       ``(12) `license' means a document bearing the word license 
     issued by the United States Government agency charged with 
     implementing section 38 of this Act, which permits the export 
     or import of a defense article or defense service;
       ``(13) `agent' means a representative or emissary of a 
     government other than an officer or employee of the 
     government; and
       ``(14) `exporting agent' means a freight forwarder or other 
     consignee designated on a license application who is 
     authorized to act on behalf of and the control of the license 
     applicant.''.

     SEC. 1402. EXEMPTION FROM LICENSING REQUIREMENTS FOR EXPORT 
                   OF SIGNIFICANT MILITARY EQUIPMENT.

       Section 38(b)(2) of the Arms Export Control Act (22 U.S.C. 
     2778(b)(2)) is amended--
       (1) by striking ``(2) Except'' and inserting ``(2)(A) 
     Except'';
       (2) by striking ``(A) for official'' and inserting ``(i) 
     for official'' and further by striking ``(B) for carrying 
     out'' and inserting ``(ii) for carrying out''; and
       (3) by adding at the end the following:
       ``(B) The President may not establish an exemption in 
     regulation or otherwise from the license requirements of this 
     section for the export of a defense article that is 
     significant military equipment (other than a firearm that is 
     intended for personal use).''.

     SEC. 1403. COOPERATIVE PROJECTS WITH FRIENDLY FOREIGN 
                   COUNTRIES.

       Section 27 of the Arms Export Control Act (22 U.S.C. 2767) 
     is amended--
       (1) in subsection (g) to read as follows:
       ``(g) Unless the President states in his certification that 
     an emergency exists which requires the immediate approval of 
     the cooperative agreement in the national security interests 
     of the United States (in which case the President shall set 
     forth in the certification a justification for this 
     determination), an agreement shall not be signed if, within 
     the 30-day period specified in subsection (f), a joint 
     resolution prohibiting the agreement is enacted into law.''; 
     and
       (2) by adding at the end the following:
       ``(k) A license shall be required for the export of defense 
     articles or defense services relating to a cooperative 
     project by any person required to be registered under section 
     38(b)(1)(A)(i) whenever such export is made pursuant to, or 
     in furtherance of, a private contract, purchase order, or 
     similar commercial arrangement with a foreign corporation.''.

     SEC. 1404. LICENSING REQUIREMENT FOR EXPORT OF MILITARILY 
                   CRITICAL TECHNOLOGIES.

       (a) Licensing Requirement.--The President shall require a 
     license under the Export Administration Regulations of the 
     Department of Commerce (15 C.F.R. part 730 et seq.) or the 
     International Traffic in Arms Regulations (22 C.F.R. part 120 
     et seq.), as the case may be, for the export of goods or 
     technologies included on the Militarily Critical Technologies 
     List.
       (b) Definition.--In this section, the term ``Militarily 
     Critical Technologies List'' means the list required to be 
     developed by the Secretary of Defense pursuant to section 
     5(d)(2) of the Export Administration Act of 1979 (50 U.S.C. 
     App.

[[Page H3331]]

     2404(d)(2)), as such list was effect on January 20, 2004, and 
     includes any goods or technologies that have been added to 
     the list after that date.

     SEC. 1405. CONTROL OF EXPORTS OF UNITED STATES WEAPONS 
                   TECHNOLOGY TO THE PEOPLE'S REPUBLIC OF CHINA.

       A dual use good or technology subject to the jurisdiction 
     of the Export Administration Regulations of the Department of 
     Commerce (15 C.F.R. part 730 et seq.) and a defense article 
     or defense service subject to the jurisdiction of the 
     International Traffic in Arms Regulations (22 C.F.R. part 120 
     et seq.) may be exported to a foreign person or a foreign 
     country that has previously exported any such item to the 
     military, intelligence, police, or internal security services 
     of the Government of the People's Republic of China that 
     would be prohibited for export to China if subject to United 
     States export control laws only if--
       (1) a license for such export is approved under the Export 
     Administration Regulations or the International Traffic in 
     Arms Regulations and the Secretary of Defense concurs in the 
     approval of such license; and
       (2) the foreign person or foreign country agrees in writing 
     not to transfer title to or possession of, or otherwise 
     provide access to, the licensed items, unless the President 
     provides written consent thereto.

     SEC. 1406. STRENGTHENING INTERNATIONAL EXPORT CONTROLS.

       (a) Finding.--The Congress recognizes that the 
     international export control system, as currently 
     constituted, is insufficient to achieve the national security 
     interests of the United States.
       (b) National Export Control Policy.--It is the policy of 
     the United States to seek continued negotiations of a 
     strengthened international export control system for the 
     control of arms and militarily-sensitive goods and technology 
     to countries of concern.
       (c) Presidential Reporting Requirement.--(1) Not later than 
     180 days after the date of the enactment of this Act, and 
     every six months thereafter, the President shall submit to 
     the committees referred to in subsection (d) a report setting 
     forth the President's plan for effecting a strengthened 
     international export control system capable of achieving the 
     national security interests of the United States.
       (2) The report shall include--
       (A) an evaluation of the effectiveness of the current 
     international export control system;
       (B) a plan for negotiating and implementing a strengthened 
     international export control system capable of achieving the 
     national security interests of the United States; and
       (C) challenges to and progress in negotiating and 
     implementing that plan.
       (d) Committees; Classification of Report.--(1) The report 
     required by subsection (c) shall be submitted to--
       (A) the Committee on Armed Services, the Committee on 
     International Relations, and the Permanent Select Committee 
     on Intelligence of the House of Representatives; and
       (B) the Committee on Armed Services, the Committee on 
     Banking, Housing and Urban Affairs, and the Select Committee 
     on Intelligence of the Senate.
       (2) The report shall be submitted in unclassified form and, 
     as necessary, in classified form.

                Subtitle B--Counterproliferation Matters

     SEC. 1411. DEFENSE INTERNATIONAL COUNTERPROLIFERATION 
                   PROGRAMS.

       (a) International Security Program to Prevent Unauthorized 
     Transfer and Transportation of WMDs.--Subsection (b) of 
     section 1424 of the Defense Against Weapons of Mass 
     Destruction Act of 1996 (50 U.S.C. 2333) is amended to read 
     as follows:
       ``(b) Other Countries.--The Secretary of Defense may carry 
     out programs under subsection (a) in a country other than a 
     country specified in that subsection if the Secretary 
     determines that there exists in that country a significant 
     threat of the unauthorized transfer and transportation of 
     nuclear, biological, or chemical weapons or related 
     materials.''.
       (b) International Training Program to Deter WMD 
     Proliferation.--Section 1504(e)(3)(A) of the National Defense 
     Authorization Act for Fiscal Year 1995 (Public Law 103-337; 
     108 Stat. 2918) is amended--
       (1) by striking ``The training program referred to in 
     paragraph (1)(B) is a'' and inserting `The Secretary of 
     Defense may participate in a'';
       (2) by inserting ``of'' after ``acquisition'';
       (3) by striking ``and'' after ``countries''; and
       (4) by inserting before the period at the end the 
     following: ``, and in other countries in which, as determined 
     by the Secretary of Defense, there exists a significant 
     threat of such proliferation and acquisition''.

     SEC. 1412. DEFENSE COUNTERPROLIFERATION FELLOWSHIP PROGRAM.

       (a) Program Authorized.--Chapter 101 of title 10, United 
     States Code, is amended by adding at the end the following 
     new section:

     ``Sec. 2015. Defense counterproliferation fellowship program

       ``(a) Program Authority.--The Secretary of Defense may 
     carry out a program under which foreign military defense 
     personnel are selected to attend Department of Defense 
     courses and programs in counterproliferation and 
     nonproliferation matters in order to improve the ability of 
     the foreign military defense personnel to contribute to 
     halting the illicit acquisition or transportation of weapons 
     of mass destruction or of materials that support the 
     development or use of such weapons.
       ``(b) Authority to Pay for Costs of Participants.--The 
     Secretary of Defense may pay for all costs (including 
     transportation, travel, and subsistence costs) associated 
     with the attendance by a participant at courses and programs 
     in the program under this section.
       ``(c) Participants.--(1) The following persons may be 
     selected for participation in the program under this section:
       ``(A) Foreign military officers.
       ``(B) Foreign ministry of defense officials.
       ``(2) Participants in the program shall be selected by the 
     Secretary of Defense based upon recommendations made by the 
     commanders of the regional unified combatant commands.
       ``(d) Authorized Program Activities.--Participants in the 
     program may be selected for attendance at, and may be 
     authorize to attend, any of the following:
       ``(1) Department of Defense professional military 
     educational institutions.
       ``(2) Regional centers for security studies of the 
     Department of Defense.
       ``(e) Regulations.--The Secretary of Defense shall 
     prescribe regulations for the administration of the program 
     under this section.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2015. Defense counterproliferation fellowship program.''.

  Subtitle C--Initiatives Relating to Countries of Former Soviet Union

     SEC. 1421. SILK ROAD INITIATIVE.

       (a) Findings.--Congress makes the following findings:
       (1) A number of independent states of the former Soviet 
     Union have been helpful to the United States in the war on 
     terrorism.
       (2) Such states are new and struggling democracies and 
     would benefit considerably from assistance to create 
     sustainable jobs for their underemployed or unemployed 
     scientists, engineers, and technicians who were formerly 
     engaged in activities to develop and produce weapons of mass 
     destruction for the Russian Federation or other such state.
       (b) Policies.--(1) It is the policy of the United States to 
     seek to establish and promote programs to prevent the 
     proliferation, from scientists, engineers, and technicians of 
     the Russian Federation and other independent states of the 
     former Soviet Union to countries of proliferation concern, of 
     expertise to develop and produce weapons of mass destruction.
       (2) It is also the policy of the United States to seek to 
     assist independent states of the former Soviet Union that 
     have been helpful to the United States in the war on 
     terrorism so as to promote the creation of jobs that foster 
     economic stability and democracy.
       (c) Program Authorized.--(1) The Secretary of Energy may 
     carry out a program, to be known as the Silk Road Initiative, 
     to promote non-weapons-related employment opportunities in 
     the United States and in Silk Road nations for scientists, 
     engineers, and technicians formerly engaged in activities to 
     develop and produce weapons of mass destruction in Silk Road 
     nations. The program should--
       (A) incorporate best practices under the former Initiatives 
     for Proliferation Prevention program; and
       (B) facilitate commercial partnerships between private 
     entities in the United States and scientists, engineers, and 
     technicians in the Silk Road nations.
       (2) Before implementing the program with respect to 
     multiple Silk Road nations, the Secretary of Energy shall 
     carry out a pilot program with respect to one Silk Road 
     nation selected by the Secretary. It is the sense of Congress 
     that the Secretary should select the Republic of Georgia.
       (d) Silk Road Nations Defined.--In this section, the Silk 
     Road nations are Armenia, Azerbaijan, the Republic of 
     Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, 
     and Uzbekistan.
       (e) Funding.--Of the funds authorized to be appropriated to 
     the Department of Energy for nonproliferation and 
     international security for fiscal year 2005, $10,000,000 may 
     be used to carry out this section.

     SEC. 1422. TELLER-KURCHATOV NONPROLIFERATION FELLOWSHIPS.

       (a) In General.--(1) From amounts made available to carry 
     out this section, the Administrator for Nuclear Security may 
     carry out a program under which the Administrator awards, to 
     scientists employed at the Kurchatov Institute of the Russian 
     Federation and scientists employed at Lawrence Livermore 
     National Laboratory, international exchange fellowships, to 
     be known as Teller-Kurchatov Nonproliferation Fellowships, in 
     the nuclear nonproliferation sciences.
       (2) The purpose of the program shall be to provide 
     opportunities for advancement in the field of nuclear 
     nonproliferation to scientists who, as demonstrated by their 
     academic or professional achievements, show particular 
     promise of making significant contributions in that field.
       (3) A fellowship awarded to a scientist under the program 
     shall be for study and training at (and, where appropriate, 
     at an institution of higher education in the vicinity of)--
       (A) the Kurchatov Institute, in the case of a scientist 
     employed at Lawrence Livermore National Laboratory; and
       (B) Lawrence Livermore National Laboratory, in the case of 
     a scientist employed at the Kurchatov Institute.
       (4) The duration of a fellowship under the program may not 
     exceed two years, except that the Administrator may provide 
     for a longer duration in an individual case to the extent 
     warranted by extraordinary circumstances, as determined by 
     the Administrator.
       (5) In a calendar year, the Administrator may not award 
     more than--
       (A) one fellowship to a scientist employed at the Kurchatov 
     Institute; and
       (B) one fellowship to a scientist employed at Lawrence 
     Livermore National Laboratory.
       (6) A fellowship under the program shall include--

[[Page H3332]]

       (A) travel expenses;
       (B) any tuition and fees at an institution of higher 
     education for study or training under the fellowship; and
       (C) any other expenses that the Administrator considers 
     appropriate, such as room and board.
       (b) Definitions.--In this section:
       (1) The term ``institution of higher education'' means a 
     college, university, or other educational institution that is 
     empowered by an appropriate authority, as determined by the 
     Administrator, to award degrees higher than the baccalaureate 
     level.
       (2) The term ``nuclear nonproliferation sciences'' means 
     bodies of scientific knowledge relevant to developing or 
     advancing the means to prevent or impede the proliferation of 
     nuclear weaponry.
       (3) The term ``scientist'' means an individual who has a 
     degree from an institution of higher education in a science 
     that has practical application in the field of nuclear 
     nonproliferation.
       (c) Funding.--Of the funds authorized to be appropriated to 
     the Department of Energy for nonproliferation and 
     international security for fiscal year 2005, $10,000,000 may 
     be used to carry out this section.

     SEC. 1423. COLLABORATION TO REDUCE THE RISKS OF A LAUNCH OF 
                   RUSSIAN NUCLEAR WEAPONS.

       (a) Findings.--Congress finds that, despite the ending of 
     the Cold War more than a decade ago, the nuclear postures and 
     strategic command and control systems of the Russian 
     Federation pose risks that a nuclear ballistic missile could 
     be launched as the result of an accident, misinformation, 
     miscalculation, or unauthorized use. Such risks are posed as 
     a result of factors including the following:
       (1) The high state of readiness of the Russian Federation's 
     nuclear forces.
       (2) The remote locations of much of the Russian 
     Federation's nuclear forces.
       (3) The inadequacy of the Russian Federation's early-
     warning information.
       (4) The very short time that would be available to the 
     President of the Russian Federation if the President were 
     informed that a nuclear ballistic missile attack was or might 
     be underway.
       (5) The possibility that the Russian Federation, because of 
     concerns that much of its nuclear forces would not survive a 
     nuclear attack, may have a nuclear deterrence posture reliant 
     upon launching a retaliatory nuclear strike when it believes 
     a nuclear ballistic missile attack against it is or might be 
     underway.
       (6) Deficiencies in the security and control of the nuclear 
     forces of the Russian Federation that could result in 
     unauthorized personnel gaining control of a nuclear-armed 
     missile or warhead.
       (7) The susceptibility of nuclear strategic command and 
     control systems and early-warning systems to an intrusion or 
     accident that could create the false appearance that a 
     nuclear ballistic missile attack is or might be underway.
       (b) Report.--(1) Not later than November 1, 2005, the 
     Secretary of Defense shall submit to Congress a report on the 
     collaborative measures that the United States and the Russian 
     Federation could take to reduce the risks that a nuclear 
     ballistic missile could be launched as the result of an 
     accident, misinformation, miscalculation, or unauthorized 
     use. For each such measure, the report shall provide--
       (A) specific comments on the advisability of the measure in 
     terms of the potential contribution of the measure to the 
     national security interests of the United States, including 
     the potential contribution of the measure in improving 
     relations between the United States and the Russian 
     Federation; and
       (B) a description of the obstacles and opportunities 
     associated with pursuing the measure.
       (2) In addition to any other measure that the Secretary 
     considers appropriate, the report required by paragraph (1) 
     shall cover the following measures:
       (A) The future of the Joint Data Exchange Center.
       (B) Potential topics for discussion between high-level 
     military leaders of the United States and of the Russian 
     Federation on reducing the risk that a nuclear ballistic 
     missile could be launched as the result of an accident, 
     misinformation, miscalculation, or unauthorized use.

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

     SEC. 1501. PURPOSE.

       The purpose of this title is to authorize appropriations 
     for the Department of Defense for fiscal year 2005, in 
     addition to amounts otherwise authorized by this Act, to 
     provide funds for additional costs due to Operation Iraqi 
     Freedom and Operation Enduring Freedom.

              Subtitle A--Authorization of Appropriations

     SEC. 1511. ARMY PROCUREMENT.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2005 for procurement accounts of the Army in amounts as 
     follows:
       (1) For aircraft, $498,300,000.
       (2) For missiles, $42,800,000.
       (3) For weapons and tracked combat vehicles, $201,900,000.
       (4) For ammunition, $78,750,000.
       (5) For other procurement, $1,567,410,000.
       (6) For National Guard and Reserve equipment, $50,000,000.

     SEC. 1512. NAVY AND MARINE CORPS PROCUREMENT.

       (a) Marine Corps.--Funds are hereby authorized to be 
     appropriated for fiscal year 2005 for the procurement account 
     for the Marine Corps in the amount of $98,190,000.
       (b) Navy and Marine Corps Ammunition.--Funds are hereby 
     authorized to be appropriated for fiscal year 2005 for the 
     procurement account for ammunition for the Navy and the 
     Marine Corps in the amount of $38,402,000.

     SEC. 1513. AIR FORCE PROCUREMENT.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2005 for the procurement account for aircraft for the 
     Air Force in amount of $99,000,000.

     SEC. 1514. DEFENSE-WIDE ACTIVITIES PROCUREMENT.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2005 for the procurement account for Defense-wide 
     procurement in the amount of $720,000,000.

     SEC. 1515. OPERATION AND MAINTENANCE.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2005 for the use of the Armed Forces for expenses, not 
     otherwise provided for, for operation and maintenance, in 
     amounts as follows:
       (1) For the Army, $9,607,113,000.
       (2) For the Navy, $256,500,000.
       (3) For the Marine Corps, $2,398,735,000.
       (4) For the Air Force, $1,635,000,000.
       (5) For Defense-wide, $2,327,900,000.

     SEC. 1516. DEFENSE HEALTH PROGRAM.

       Funds are hereby authorized to be appropriated for the 
     Department of Defense for fiscal year 2005 for expenses, not 
     otherwise provided for, for the Defense Health Program, in 
     the amount of $75,000,000, for Operation and Maintenance.

     SEC. 1517. MILITARY PERSONNEL.

       There is hereby authorized to be appropriated to the 
     Department of Defense for military personnel accounts for 
     fiscal year 2005 a total of $5,305,000,000.

     SEC. 1518. TREATMENT AS ADDITIONAL AUTHORIZATIONS.

       The amounts authorized to be appropriated by this title are 
     in addition to amounts otherwise authorized to be 
     appropriated by this Act.

     SEC. 1519. 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 title for fiscal year 2005 
     between any such authorizations for that fiscal year (or any 
     subdivisions thereof). Amounts of authorizations so 
     transferred shall be merged with and be available for the 
     same purposes as the authorization to which transferred.
       (2) The total amount of authorizations that the Secretary 
     may transfer under the authority of this section may not 
     exceed $2,500,000,000. The transfer authority provided in 
     this section is in addition to any other transfer authority 
     available to the Secretary of Defense.
       (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;
       (2) may not be used to provide authority for an item that 
     has been denied authorization by Congress; and
       (3) may not be combined with the authority under section 
     1001.
       (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. 1520. DESIGNATION OF EMERGENCY AUTHORIZATIONS.

       The amounts authorized to be appropriated by this title are 
     designated for emergency contingency operations related to 
     the global war on terrorism.

                    Subtitle B--Personnel Provisions

     SEC. 1531. THREE-YEAR INCREASE IN ACTIVE ARMY STRENGTH 
                   LEVELS.

       (a) Authorized End Strengths.--(1) The end strength level 
     authorized for the Army for fiscal year 2005 under section 
     401 is hereby increased by 10,000.
       (2) For fiscal years 2006 and 2007, the Army is authorized 
     strengths for active duty personnel as follows:
       (A) As of September 30, 2006, 502,400.
       (B) As of September 30, 2007, 512,400.
       (b) Statutory Minimum Active Strength Level.--The minimum 
     strength for the Army under section 691(b) of title 10, 
     United States Code (notwithstanding the number specified in 
     paragraph (1) of that section)--
       (1) for the period beginning on October 1, 2004, and ending 
     on September 30, 2005, shall be the number specified in 
     section 401(1) of this Act, increased by 10,000;
       (2) for the period beginning on October 1, 2005, and ending 
     on September 30, 2006, shall be 502,400; and
       (3) for the period beginning on October 1, 2006, and ending 
     on September 30, 2007, shall be 512,400.
       (c) Notice to Congress.--If the Secretary of Defense, in 
     consultation with the Secretary of the Army, determines that 
     adjustments are necessary to the minimum end-strength level 
     for the Army in effect at any time pursuant to subsection 
     (b), the Secretary of Defense shall submit to the Committees 
     on Armed Services of the Senate and House of Representatives 
     a report providing the Secretary's recommendations and 
     rationale for such an adjustment. Such a report must be 
     submitted before the submission of the budget request for the 
     fiscal year for which the change would be effective.

     SEC. 1532. THREE-YEAR INCREASE IN ACTIVE MARINE CORPS 
                   STRENGTH LEVELS.

       (a) Authorized End Strengths.--(1) The end strength level 
     authorized for the Marine Corps for fiscal year 2005 under 
     section 401 is hereby increased by 3,000.

[[Page H3333]]

       (2) For fiscal years 2006 and 2007, the Marine Corps is 
     authorized strengths for active duty personnel as follows:
       (A) As of September 30, 2006, 181,000.
       (B) As of September 30, 2007, 184,000.
       (b) Statutory Minimum Active Strength Level.--The minimum 
     strength for the Marine Corps under section 691(b) of title 
     10, United States Code (notwithstanding the number specified 
     in paragraph (3) of that section)--
       (1) for the period beginning on October 1, 2004, and ending 
     on September 30, 2005, shall be the number specified in 
     section 401(3) of this Act, increased by 3,000;
       (2) for the period beginning on October 1, 2005, and ending 
     on September 30, 2006, shall be 181,000; and
       (3) for the period beginning on October 1, 2006, and ending 
     on September 30, 2007, shall be 184,000.
       (c) Notice to Congress.--If the Secretary of Defense, in 
     consultation with the Secretary of the Navy, determines that 
     adjustments are necessary to the minimum end-strength level 
     for the Marine Corps in effect at any time pursuant to 
     subsection (b), the Secretary of Defense shall submit to the 
     Committees on Armed Services of the Senate and House of 
     Representatives a report providing the Secretary's 
     recommendations and rationale for such an adjustment. Such a 
     report must be submitted before the submission of the budget 
     request for the fiscal year for which the change would be 
     effective.

     SEC. 1533. EXTENSION OF INCREASED RATES FOR IMMINENT DANGER 
                   PAY AND FAMILY SEPARATION ALLOWANCE.

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

                Subtitle C--Financial Management Matters

     SEC. 1541. REVISED FUNDING METHODOLOGY FOR MILITARY RETIREE 
                   HEALTH CARE BENEFITS.

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

     ``Sec. 1116. Payments into the Fund

       ``(a) At the beginning of each fiscal year after September 
     30, 2005, the Secretary of the Treasury shall promptly pay 
     into the Fund from the General Fund of the Treasury--
       ``(1) the amount certified to the Secretary by the 
     Secretary of Defense under subsection (c), which shall be the 
     contribution to the Fund for that fiscal year required by 
     section 1115; and
       ``(2) the amount determined by each administering Secretary 
     under section 1111(c) as the contribution to the Fund on 
     behalf of the members of the uniformed services under the 
     jurisdiction of that Secretary.
       ``(b) At the beginning of each fiscal year, the Secretary 
     of Defense shall determine the sum of the following:
       ``(1) The amount of the payment for that year under the 
     amortization schedule determined by the Board of Actuaries 
     under section 1115(a) of this title for the amortization of 
     the original unfunded liability of the Fund.
       ``(2) The amount (including any negative amount) of the 
     Department of Defense contribution for that year as 
     determined by the Secretary of Defense under section 1115(b) 
     of this title.
       ``(3) The amount (including any negative amount) for that 
     year under the most recent amortization schedule determined 
     by the Secretary of Defense under section 1115(c)(2) of this 
     title for the amortization of any cumulative unfunded 
     liability (or any gain) to the Fund resulting from changes in 
     benefits.
       `(4) The amount (including any negative amount) for that 
     year under the most recent amortization schedule determined 
     by the Secretary of Defense under section 1115(c)(3) of this 
     title for the amortization of any cumulative actuarial gain 
     or loss to the Fund resulting from actuarial assumption 
     changes.
       ``(5) The amount (including any negative amount) for that 
     year under the most recent amortization schedule determined 
     by the Secretary of Defense under section 1115(c)(4) of this 
     title for the amortization of any cumulative actuarial gain 
     or loss to the Fund resulting from actuarial experience.
       ``(c) The Secretary of Defense shall promptly certify the 
     amount determined under subsection (b) each year to the 
     Secretary of the Treasury.''.
       (b) Conforming Amendments.--(1) Section 1111(c) of title 
     10, United States Code, is amended in the last sentence by 
     striking ``1116'' and all that follows through the end of the 
     sentence and inserting ``1115(b) of this title, and such 
     contributions shall be paid into the Fund as provided in 
     section 1116(a).''.
       (2) Section 1115(a) of such title is amended by striking 
     ``1116(c)'' and inserting ``1116''.
       (3) Section 1115(b) of such title is amended--
       (A) by striking ``(1) The Secretary of Defense'' and all 
     that follows through ``of this title.'' and inserting ``The 
     Secretary of Defense shall determine, before the beginning of 
     each fiscal year after September 30, 2005, the total amount 
     of the Department of Defense contribution to be made to the 
     Fund for that fiscal year for purposes of section 
     1116(b)(2).'';
       (B) by striking paragraph (2);
       (C) by redesignating subparagraphs (A) and (B) as 
     paragraphs (1) and (2), respectively;
       (D) in each of paragraphs (1) and (2), as so redesignated, 
     by redesignating clauses (i) and (ii) as subparagraphs (A) 
     and (B), respectively; and
       (E) in paragraph (2)(B), as so redesignated, by striking 
     ``subparagraph (A)(ii)'' and inserting ``paragraph (1)(B)''.
       (4) Section 1115(c)(1) of such title is amended by striking 
     ``and section 1116(a) of this title''.
       (5) Section 1115(c)(5) of such title is amended by striking 
     ``1116(c)'' and inserting ``1116''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2005.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

     SECTION 2001. SHORT TITLE.

       This division may be cited as the ``Military Construction 
     Authorization Act for Fiscal Year 2005''.

                            TITLE XXI--ARMY

     SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION 
                   PROJECTS.

       (a) Inside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2104(a)(1), the Secretary of the Army may acquire real 
     property and carry out military construction projects for the 
     installations or locations inside the United States, and in 
     the amounts, set forth in the following table:

                     Army: Inside the United States
------------------------------------------------------------------------
            State             Installation or Location       Amount
------------------------------------------------------------------------
Alabama.....................  Anniston Army Depot.....       $23,690,000
Alaska......................  Fort Richardson.........       $24,300,000
                              Fort Wainwright.........       $92,459,000
California..................  Fort Irwin..............       $38,100,000
Colorado....................  Fort Carson.............       $59,508,000
Georgia.....................  Fort Benning............       $73,627,000
                              Fort Gillem.............        $5,800,000
                              Fort McPherson..........        $4,900,000
                              Fort Stewart/Hunter Army       $65,495,000
                               Air Field..............
Hawaii......................  Helemano Military              $75,300,000
                               Reservation.
                              Hickam Air Force........       $11,200,000
                              Schofield Barracks......      $241,792,000
Kansas......................  Fort Riley..............       $44,050,000
Kentucky....................  Fort Campbell...........       $89,600,000
                              Fort Knox...............       $73,850,000
Louisiana...................  Fort Polk...............       $70,953,000
Maryland....................  Fort Detrick............        $4,000,000
Missouri....................  Fort Leonard Wood.......       $21,450,000
New Jersey..................  Picatinny Arsenal.......        $9,900,000
New Mexico..................  White Sands Missile            $33,000,000
                               Range.
New York....................  Fort Drum...............       $13,650,000
                              Fort Hamilton...........        $7,600,000
                              Hancock Field...........        $6,000,000
                              Military Entrance               $6,200,000
                               Processing Station,
                               Buffalo................
                              United States Military         $60,000,000
                               Academy, West Point....
North Carolina..............  Fort Bragg..............      $111,687,000
Oklahoma....................  Fort Sill...............       $17,800,000
Texas.......................  Camp Bullis.............        $5,300,000
                              Fort Bliss..............       $19,400,000
                              Fort Hood...............       $88,888,000
Virginia....................  Fort A.P. Hill..........        $3,975,000
                              Fort Lee................        $4,250,000
                              Fort Myer...............       $49,526,000
Washington..................  Fort Lewis..............       $48,000,000
                                                       -----------------
                                Total.................    $1,505,250,000
------------------------------------------------------------------------


[[Page H3334]]

       (b) Outside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2104(a)(2), the Secretary of the Army may acquire real 
     property and carry out military construction projects for the 
     installations or locations outside the United States, and in 
     the amounts, set forth in the following table:

                     Army: Outside the United States
------------------------------------------------------------------------
           Country              Installation or Location      Amount
------------------------------------------------------------------------
Germany......................  Grafenwoehr..............     $77,200,000
Italy........................  Livorno..................     $26,000,000
Korea........................  Camp Humphreys...........     $12,000,000
                                                         ---------------
                                 Total..................    $115,200,000
------------------------------------------------------------------------

     SEC. 2102. FAMILY HOUSING.

       (a) Construction and Acquisition.--Using amounts 
     appropriated pursuant to the authorization of appropriations 
     in section 2104(a)(5)(A), the Secretary of the Army may 
     construct or acquire family housing units (including land 
     acquisition and supporting facilities) at the installations 
     or locations, for the purposes and in the amounts, set forth 
     in the following table:

                                              Army: Family Housing
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or Location             Purpose               Amount
----------------------------------------------------------------------------------------------------------------
Alaska..................................  Fort Richardson...........  92 Units..................     $42,000,000
                                          Fort Wainwright...........  246 Units.................    $124,000,000
Arizona.................................  Fort Huachuca.............  205 Units.................     $41,000,000
                                          Yuma Proving Ground.......  55 Units..................     $14,900,000
Kansas..................................  Fort Riley................  126 Units.................     $33,000,000
New Mexico..............................  White Sands Missile Range.  156 Units.................     $31,000,000
Oklahoma................................  Fort Sill.................  247 Units.................     $47,000,000
Virginia................................  Fort Lee..................  218 Units.................     $46,000,000
                                          Fort Monroe...............  68 Units..................     $16,000,000
                                                                                                 ---------------
                                            Total...................  ..........................    $394,900,000
----------------------------------------------------------------------------------------------------------------

       (b) Planning and Design.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2104(a)(5)(A), the Secretary of the Army may carry out 
     architectural and engineering services and construction 
     design activities with respect to the construction or 
     improvement of family housing units in an amount not to 
     exceed $29,209,000.

     SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

       Subject to section 2825 of title 10, United States Code, 
     and using amounts appropriated pursuant to the authorization 
     of appropriations in section 2104(a)(5)(A), the Secretary of 
     the Army may improve existing military family housing units 
     in an amount not to exceed $211,990,000.

     SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

       (a) Authorization of Appropriations.--Funds are hereby 
     authorized to be appropriated for fiscal years beginning 
     after September 30, 2004, for military construction, land 
     acquisition and military family housing functions of the 
     Department of the Army in the total amount of $3,428,815,000 
     as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2101(a), $1,335,750,000.
       (2) For military construction projects outside the United 
     States authorized by section 2101(b), $115,200,000.
       (3) For unspecified minor military construction projects 
     authorized by section 2805 of title 10, United States Code, 
     $20,000,000.
       (4) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $161,209,000.
       (5) For military family housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $636,099,000.
       (B) For support of military family housing (including the 
     functions described in section 2833 of title 10, United 
     States Code), $926,507,000.
       (6) For the construction of phase 2 of a barracks complex, 
     5th & 16th Street, at Fort Stewart/Hunter Army Air Field, 
     Georgia, authorized by section 2101(a) of the Military 
     Construction Authorization Act for Fiscal Year 2004 (division 
     B of Public Law 108-136; 117 Stat. 1697), $32,950,000.
       (7) For the construction of phase 3 of a barracks complex 
     renewal, Capron Road, at Schofield Barracks, Hawaii, 
     authorized by section 2101(a) of the Military Construction 
     Authorization Act for Fiscal Year 2002 (division B of Public 
     Law 107-107; 115 Stat. 1283) and as amended by section 2105 
     of the Military Authorization Act for Fiscal Year 2004 
     (division B of Public Law 108-136; 117 Stat. 1697), 
     $48,000,000.
       (8) For the construction of phase 2 of the Lewis & Clark 
     instructional facility at Fort Leavenworth, Kansas, 
     authorized by section 2101(a) of the Military Construction 
     Authorization Act for Fiscal Year 2003 (division B of Public 
     Law 107-314; 116 Stat. 2681), $44,000,000.
       (9) For the construction of phase 2 of a barracks complex 
     at Wheeler Sack Army Air Field at Fort Drum, New York, 
     authorized by section 2101(a) of the Military Construction 
     Authorization Act for Fiscal Year 2004 (division B of Public 
     Law 108-136; 117 Stat. 1697), $48,000,000.
       (10) For the construction of phase 2 of a barracks complex, 
     Bastogne Drive, Fort Bragg, North Carolina, authorized by 
     section 2101(a) of the Military Construction Authorization 
     Act for Fiscal Year 2004 (division B of Public Law 108-136; 
     117 Stat. 1697), $48,000,000.
       (11) For the construction of phase 3 of a maintenance 
     complex at Fort Sill, Oklahoma, authorized by section 2101(a) 
     of the Military Construction Authorization Act for Fiscal 
     Year 2003 (division B of Public Law 107-314; 116 Stat. 2681), 
     $13,100,000.
       (b) Limitation on Total Cost of Construction Projects.--
     Notwithstanding the cost variations authorized by section 
     2853 of title 10, United States Code, and any other cost 
     variation authorized by law, the total cost of all projects 
     carried out under section 2101 of this Act may not exceed the 
     sum of the following:
       (1) The total amount authorized to be appropriated under 
     paragraphs (1) and (2) of subsection (a).
       (2) $41,000,000 (the balance of the amount authorized under 
     section 2101(a) to upgrade Drum Road, Helemano Military 
     Reservation, Hawaii).
       (3) $25,000,000 (the balance of the amount authorized under 
     section 2101(a) for construction of a vehicle maintenance 
     facility, Schofield Barracks, Hawaii).
       (3) $25,000,000 (the balance of the amount authorized under 
     section 2101(a) for construction of a barracks complex, Fort 
     Campbell, Kentucky).
       (4) $22,000,000 (the balance of the amount authorized under 
     section 2101(a) for construction of trainee barracks, Basic 
     Training Complex 1, Fort Knox, Kentucky).
       (5) $25,500,000 (the balance of the amount authorized under 
     section 2101(a) for construction of a library and learning 
     facility, United States Military Academy, West Point, New 
     York).
       (6) $31,000,000 (the balance of the amount authorized under 
     section 2101(a) for a barracks complex renewal project, Fort 
     Bragg, North Carolina).

     SEC. 2105. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN 
                   FISCAL YEAR 2004 PROJECTS.

       (a) Modification of Inside the United States Projects.--The 
     table in section 2101(a) of the Military Construction 
     Authorization Act for Fiscal Year 2004 (division B of Public 
     Law 108-136; 117 Stat. 1697) is amended--
       (1) in the item relating to Fort Stewart/Hunter Army Air 
     Field, Georgia, by striking ``$113,500,000'' in the amount 
     column and inserting ``$114,450,000'';
       (2) in the item relating to Fort Drum, New York, by 
     striking ``$130,700,000'' in the amount column and inserting 
     ``$135,700,000''; and
       (3) by striking the amount identified as the total in the 
     amount column and inserting ``$1,043,150,000''.
       (b) Conforming Amendments.--Section 2104(b) of that Act 
     (117 Stat. 1700) is amended--
       (1) in paragraph (2), by striking ``$32,000,000'' and 
     inserting ``$32,950,000''; and
       (2) in paragraph (4), by striking ``$43,000,000'' and 
     inserting ``$48,000,000''.

     SEC. 2106. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN 
                   FISCAL YEAR 2003 PROJECT.

       (a) Modification of Inside the United States Project.--The 
     table in section 2101(a) of the Military Construction 
     Authorization Act for Fiscal Year 2003 (division B of Public 
     Law 107-314; 116 Stat. 2681), as amended by section 2105(a) 
     of the Military Construction Authorization Act for Fiscal 
     Year 2004 (division B of Public Law 108-136; 117 Stat. 1700), 
     is further amended--

[[Page H3335]]

       (1) in the item relating to Fort Sill, Oklahoma, by 
     striking ``$39,652,000'' in the amount column and inserting 
     ``$40,752,000''; and
       (2) by striking the amount identified as the total in the 
     amount column and inserting ``$1,157,267,000''.
       (b) Conforming Amendment.--Section 2104(b)(6) of the 
     Military Construction Authorization Act for Fiscal Year 2003 
     (division B of Public Law 107-314; 116 Stat. 2684) is amended 
     by striking ``$25,000,000'' and inserting ``$26,100,000''.

                            TITLE XXII--NAVY

     SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION 
                   PROJECTS.

       (a) Inside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2204(a)(1), the Secretary of the Navy may acquire real 
     property and carry out military construction projects for the 
     installations or locations inside the United States, and in 
     the amounts, set forth in the following table:

                     Navy: Inside the United States
------------------------------------------------------------------------
            State               Installation or Location      Amount
------------------------------------------------------------------------
Arizona......................  Marine Corps Air Station,     $26,670,000
                                Yuma.
California...................  Marine Corps Air-Ground       $15,700,000
                                Task Force Training
                                Center, Twentynine Palms
                               Marine Corps Air Station,     $11,540,000
                                Camp Pendleton..........
                               Marine Corps Base, Camp       $26,915,000
                                Pendleton...............
                               Marine Corps Logistics         $4,930,000
                                Base, Barstow...........
                               Naval Air Facility, El        $54,331,000
                                Centro..................
                               Naval Air Station, North      $10,180,000
                                Island..................
                               Naval Surface Warfare          $9,850,000
                                Center, Division Corona.
Connecticut..................  Naval Submarine Base, New     $50,302,000
                                London..................
District of Columbia.........  Naval Observatory,             $3,239,000
                                Washington..............
Florida......................  Eglin Air Force Base.....      $2,060,000
                               Naval Station, Mayport...      $6,200,000
Georgia......................  Strategic Weapons             $16,000,000
                                Facility Atlantic, Kings
                                Bay.....................
Hawaii.......................  Naval Shipyard, Pearl          $5,100,000
                                Harbor..................
Illinois.....................  Naval Training Center,        $74,781,000
                                Great Lakes.............
Indiana......................  Naval Surface Warfare         $10,580,000
                                Center, Crane...........
Louisiana....................  Joint Reserve Base/Naval       $6,030,000
                                Air Station, New Orleans
Maryland.....................  Naval Surface Warfare         $23,000,000
                                Center, Indian Head.....
North Carolina...............  Marine Corps Air Station,     $35,140,000
                                New River...............
                               Marine Corps Base, Camp       $11,030,000
                                Lejeune.................
Nevada.......................  Naval Air Station, Fallon      $4,980,000
South Carolina...............  Marine Corps Air Station,      $5,480,000
                                Beaufort................
Virginia.....................  Camp Elmore Marine Corps      $13,500,000
                                Detachment..............
                               Marine Corps Air              $21,180,000
                                Facility, Quantico......
                               Marine Corps Combat           $24,140,000
                                Development Command,
                                Quantico................
                               Naval Air Station, Oceana      $2,770,000
                               Naval Amphibious Base,         $9,550,000
                                Little Creek............
                               Naval Station, Norfolk...      $4,330,000
                               Naval Weapons Station,         $9,870,000
                                Yorktown................
Washington...................  Naval Air Station,             $1,990,000
                                Whidbey Island..........
                               Naval Shipyard, Puget         $23,455,000
                                Sound...................
                               Naval Station, Bremerton.     $74,125,000
                               Strategic Weapons            $131,090,000
                                Facility Pacific, Bangor
                                                         ---------------
                                 Total..................    $730,038,000
------------------------------------------------------------------------

       (b) Outside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2204(a)(2), the Secretary of the Navy may acquire real 
     property and carry out military construction projects for the 
     installations or locations outside the United States, and in 
     the amounts, set forth in the following table:

                     Navy: Outside the United States
------------------------------------------------------------------------
           Country              Installation or Location      Amount
------------------------------------------------------------------------
Bahamas......................  Naval Undersea Warfare        $20,750,000
                                Center, Andros Islands..
Diego Garcia.................  Naval Support Facility,       $17,500,000
                                Diego Garcia............
Guam.........................  Naval Public Works            $20,700,000
                                Center, Guam............
                               Naval Station, Guam......     $12,500,000
Italy........................  Sigonella................     $22,550,000
Spain........................  Naval Station, Rota......     $32,700,000
                                                         ---------------
                                 Total..................    $126,700,000
------------------------------------------------------------------------

       (c) Unspecified Worldwide.--Using the amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2204(a)(3), the Secretary of the Navy may acquire real 
     property and carry out military construction projects for the 
     installations or locations and in the amount, set forth in 
     the following table:

                       Navy: Unspecified Worldwide
------------------------------------------------------------------------
           Location             Installation or Location      Amount
------------------------------------------------------------------------
                               Unspecified Worldwide....    $148,640,000
                                                         ---------------
                                 Total..................    $148,640,000
------------------------------------------------------------------------

     SEC. 2202. FAMILY HOUSING.

       Using amounts appropriated pursuant to the authorization of 
     appropriations in section 2204(a)(6)(A), the Secretary of the 
     Navy may construct or acquire family housing units (including 
     land acquisition and supporting facilities) at the 
     installations or locations, for the purposes and in the 
     amounts, set forth in the following table:

                                              Navy: Family Housing
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or Location             Purpose               Amount
----------------------------------------------------------------------------------------------------------------
North Carolina..........................  Marine Corps Air Station,   198 Units.................     $27,002,000
                                           Cherry Point.............
                                                                                                 ---------------
                                            Total...................  ..........................     $27,002,000
----------------------------------------------------------------------------------------------------------------

     SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

       Subject to section 2825 of title 10, United States Code, 
     and using amounts appropriated pursuant to the authorization 
     of appropriations in section 2204(a)(6)(A), the Secretary of 
     the Navy may improve existing military family housing units 
     in an amount not to exceed $112,105,000.

     SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

       (a) Authorization of Appropriations.--Funds are hereby 
     authorized to be appropriated for fiscal years beginning 
     after September 30, 2004, for military construction, land 
     acquisition, and military family housing functions of the 
     Department of the Navy in the total amount of $1,913,273,000, 
     as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2201(a), $631,908,000.
       (2) For military construction projects outside the United 
     States authorized by section 2201(b), $126,700,000.

[[Page H3336]]

       (3) For the military construction projects at unspecified 
     worldwide locations authorized by section 2201(c), 
     $98,560,000.
       (4) For unspecified minor military construction projects 
     authorized by section 2805 of title 10, United States Code, 
     $12,000,000.
       (5) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $93,804,000.
       (6) For military family housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $139,107,000.
       (B) For support of military family housing (including 
     functions described in section 2833 of title 10, United 
     States Code), $696,304,000.
       (7) For the construction of increment 2 of the tertiary 
     sewage treatment plant at Marine Corps Base, Camp Pendleton, 
     California, authorized by section 2201(a) of the Military 
     Construction Authorization Act for Fiscal Year 2004 (division 
     B of Public Law 108-136; 117 Stat. 1703), $25,690,000.
       (8) For the construction of increment 2 of the general 
     purpose berthing pier at Naval Weapons Station, Earle, New 
     Jersey, authorized by section 2201(a) of the Military 
     Construction Authorization Act of Fiscal Year 2004 (division 
     B of Public Law 108-136; 117 Stat. 1704), $49,200,000.
       (9) For the construction of increment 2 of pier 11 
     replacement at Naval Station, Norfolk, Virginia, authorized 
     by section 2201(a) of the Military Construction Authorization 
     Act of Fiscal Year 2004 (division B of Public Law 108-136; 
     117 Stat. 1704), $40,000,000.
       (b) Limitation on Total Cost of Construction Projects.--
     Notwithstanding the cost variations authorized by section 
     2853 of title 10, United States Code, and any other cost 
     variation authorized by law, the total cost of all projects 
     carried out under section 2201 of this Act may not exceed the 
     sum of the following:
       (1) The total amount authorized to be appropriated under 
     paragraphs (1), (2) and (3) of subsection (a).
       (2) $21,000,000 (the balance of the amount authorized under 
     section 2201(a) for apron and hangar recapitalization, Naval 
     Air Facility, El Centro, California).
       (3) $40,000,000 (the balance of the amount authorized under 
     section 2201(a) for construction of bachelor enlisted 
     quarters, Naval Station, Bremerton, Washington).
       (4) $95,320,000 (the balance of the amount authorized under 
     section 2201(a) for construction of a limited area processing 
     and storage complex, Strategic Weapons Facility Pacific, 
     Bangor, Washington).
       (5) $34,098,000 (the balance of the amount authorized under 
     section 2201(c) for construction of a White Side complex at 
     an unspecified location worldwide).
       (6) $15,982,000 (the balance of the amount authorized under 
     section 2201(c) for construction of a presidential helicopter 
     programs support facility at an unspecified location).

                         TITLE XXIII--AIR FORCE

     SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND 
                   ACQUISITION PROJECTS.

       (a) Inside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2304(a)(1), the Secretary of the Air Force may acquire real 
     property and carry out military construction projects for the 
     installations or locations inside the United States, and in 
     the amounts, set forth in the following table:

                   Air Force: Inside the United States
------------------------------------------------------------------------
            State               Installation or Location      Amount
------------------------------------------------------------------------
Alaska.......................  Elmendorf Air Force Base.     $26,057,000
Arizona......................  Davis-Monthan Air Force       $17,029,000
                                Base.
                               Luke Air Force Base......     $17,900,000
Arkansas.....................  Little Rock Air Force          $8,931,000
                                Base.
California...................  Beale Air Force Base.....     $10,186,000
                               Edwards Air Force Base...      $9,965,000
                               Travis Air Force Base....     $18,894,000
Colorado.....................  Buckley Air Force Base...     $12,247,000
Florida......................  Tyndall Air Force Base...     $29,162,000
Georgia......................  Moody Air Force Base.....      $9,600,000
                               Robins Air Force Base....     $15,000,000
Hawaii.......................  Hickam Air Force Base....     $25,900,000
Louisiana....................  Barksdale Air Force Base.     $13,800,000
Maryland.....................  Andrews Air Force Base...     $17,100,000
Mississippi..................  Columbus Air Force Base..      $7,700,000
Missouri.....................  Whiteman Air Force Base..      $7,600,000
New Mexico...................  Kirtland Air Force Base..      $9,200,000
North Carolina...............  Pope Air Force Base......     $15,150,000
Ohio.........................  Wright-Patterson Air           $9,200,000
                                Force Base.
South Carolina...............  Shaw Air Force Base......      $7,000,000
Tennessee....................  Arnold Air Force Base....     $24,500,000
Texas........................  Dyess Air Force Base.....      $3,300,000
                               Lackland Air Force Base..      $2,596,000
                               Laughlin Air Force Base..      $6,900,000
                               Sheppard Air Force Base..     $50,284,000
Utah.........................  Hill Air Force Base......     $18,013,000
Wyoming......................  F.E. Warren Air Force          $5,500,000
                                Base.
                                                         ---------------
                                 Total..................    $398,714,000
------------------------------------------------------------------------

       (b) Outside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2304(a)(2), the Secretary of the Air Force may acquire real 
     property and carry out military construction projects for the 
     installations or locations outside the United States, and in 
     the amounts, set forth in the following table:

                  Air Force: Outside the United States
------------------------------------------------------------------------
           Country              Installation or Location      Amount
------------------------------------------------------------------------
Germany......................  Ramstein Air Base........     $25,404,000
Greenland....................  Thule Air Base...........     $19,800,000
Guam.........................  Andersen Air Force Base..     $19,593,000
Italy........................  Aviano Air Base..........      $6,760,000
Japan........................  Misawa Air Base..........      $6,700,000
Korea........................  Kunsan Air Base..........     $37,100,000
                               Osan Air Base............     $18,600,000
Portugal.....................  Lajes Field, Azores......      $5,689,000
Spain........................  Naval Station, Rota......     $14,153,000
United Kingdom...............  Royal Air Force                $5,500,000
                                Lakenheath.
                                                         ---------------
                                 Total..................    $159,299,000
------------------------------------------------------------------------

       (c) Unspecified Worldwide.--Using the amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2304(a)(3), the Secretary of the Air Force may acquire real 
     property and carry out military construction projects for the 
     installations or locations, and in the amount, set forth in 
     the following table:

                    Air Force: Unspecified Worldwide
------------------------------------------------------------------------
           Location             Installation or Location      Amount
------------------------------------------------------------------------
                               Classified Locations.....     $26,121,000
                               Unspecified Worldwide....     $28,794,000
                                                         ---------------
                                 Total..................     $54,915,000
------------------------------------------------------------------------


[[Page H3337]]

     SEC. 2302. FAMILY HOUSING.

       (a) Construction and Acquisition.--Using amounts 
     appropriated pursuant to the authorization of appropriations 
     in section 2304(a)(6)(A), the Secretary of the Air Force may 
     construct or acquire family housing units (including land 
     acquisition and supporting facilities) at the installations 
     or locations, for the purposes and in the amounts, set forth 
     in the following table:

                                            Air Force: Family Housing
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or Location             Purpose               Amount
----------------------------------------------------------------------------------------------------------------
Arizona.................................  Davis-Monthan Air Force     250 Units.................     $48,500,000
                                           Base.....................
California..............................  Edwards Air Force Base....  218 Units.................     $41,202,000
                                          Vandenberg Air Force Base.  120 Units.................     $30,906,000
Florida.................................  MacDill Air Force Base....  61 Units..................     $21,723,000
                                          MacDill Air Force Base....  Housing Maintenance             $1,250,000
                                                                       Facility.................
Idaho...................................  Mountain Home Air Force     147 Units.................     $39,333,000
                                           Base.....................
Mississippi.............................  Columbus Air Force Base...  Housing Management                $711,000
                                                                       Facility.................
Missouri................................  Whiteman Air Force Base...  160 Units.................     $37,087,000
Montana.................................  Malmstrom Air Force Base..  115 Units.................     $29,910,000
North Carolina..........................  Seymour Johnson Air Force   167 Units.................     $32,693,000
                                           Base.....................
North Dakota............................  Grand Forks Air Force Base  90 Units..................     $26,169,000
                                          Minot Air Force Base......  142 Units.................     $37,087,000
South Carolina..........................  Charleston Air Force Base.  Fire Station..............      $1,976,000
South Dakota............................  Ellsworth Air Force Base..  75 Units..................     $21,482,000
Texas...................................  Dyess Air Force Base......  127 Units.................     $28,664,000
                                          Goodfellow Air Force Base.  127 Units.................     $20,604,000
Germany.................................  Ramstein Air Base.........  144 Units.................     $57,691,000
Italy...................................  Aviano Air Base...........  Housing Office............      $2,542,000
Korea...................................  Osan Air Base.............  117 Units.................     $46,834,000
United Kingdom..........................  Royal Air Force Lakenheath  154 Units.................     $43,976,000
                                                                                                 ---------------
                                            Total...................  ..........................    $570,340,000
----------------------------------------------------------------------------------------------------------------

       (b) Planning and Design.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2304(a)(6)(A), the Secretary of the Air Force may carry out 
     architectural and engineering services and construction 
     design activities with respect to the construction or 
     improvement of military family housing units in an amount not 
     to exceed $38,266,000.

     SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

       Subject to section 2825 of title 10, United States Code, 
     and using amounts appropriated pursuant to the authorization 
     of appropriations in section 2304(a)(6)(A), the Secretary of 
     the Air Force may improve existing military family housing 
     units in an amount not to exceed $238,353,000.

     SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

       (a) Authorization of Appropriations.--Funds are hereby 
     authorized to be appropriated for fiscal years beginning 
     after September 30, 2004, for military construction, land 
     acquisition, and military family housing functions of the 
     Department of the Air Force in the total amount of 
     $2,493,679,000, as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2301(a), $398,714,000.
       (2) For military construction projects outside the United 
     States authorized by section 2301(b), $159,299,000.
       (3) For the military construction projects at unspecified 
     worldwide locations authorized by section 2301(c), 
     $54,915,000.
       (4) For unspecified minor military construction projects 
     authorized by section 2805 of title 10, United States Code, 
     $13,000,000.
       (5) For architectural and engineering services and 
     construction design, under section 2807 of title 10, United 
     States Code, $166,126,000.
       (6) For military family housing functions:
       (A) For construction and acquisition, planning and design 
     and improvement of military family housing and facilities, 
     $846,959,000.
       (B) For support of military family housing (including 
     functions described in section 2833 of title 10, United 
     States Code), $854,666,000.
       (b) Limitation on Total Cost of Construction Projects.--
     Notwithstanding the cost variations authorized by section 
     2853 of title 10, United States Code, and any other cost 
     variation authorized by law, the total cost of all projects 
     carried out under section 2301 of this Act may not exceed the 
     total amount authorized to be appropriated under paragraphs 
     (1), (2), and (3) of subsection (a).

                      TITLE XXIV--DEFENSE AGENCIES

     SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND LAND 
                   ACQUISITION PROJECTS.

       (a) Inside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2404(a)(1), the Secretary of Defense may acquire real 
     property and carry out military construction projects for the 
     installations or locations inside the United States, and in 
     the amounts, set forth in the following table:

               Defense Agencies: Inside the United States
------------------------------------------------------------------------
            Agency              Installation or Location      Amount
------------------------------------------------------------------------
Defense Intelligence Agency..  Bolling Air Force Base,        $6,000,000
                                District of Columbia....
Defense Logistics Agency.....  Defense Distribution          $22,300,000
                                Depot, New Cumberland,
                                Pennsylvania............
                               Defense Distribution          $10,100,000
                                Depot, Richmond,
                                Virginia................
                               Defense Fuel Support           $3,589,000
                                Point, Naval Air
                                Station, Oceana,
                                Virginia................
                               Defense Supply Center,         $5,500,000
                                Columbus, Ohio..........
                               Marina Corps Air Station,     $22,700,000
                                Cherry Point, North
                                Carolina................
                               Naval Air Station,             $3,900,000
                                Kingsville, Texas.......
                               Naval Station, Pearl           $3,500,000
                                Harbor, Hawaii..........
                               Tinker Air Force Base,         $5,400,000
                                Oklahoma................
                               Travis Air Force Base,        $15,100,000
                                California..............
Missile Defense Agency.......  Huntsville, Alabama......     $19,560,000
National Security Agency.....  Fort Meade, Maryland.....     $15,007,000
Special Operations Command...  Corona, California.......     $13,600,000
                               Fleet Combat Training          $5,700,000
                                Center, Dam Neck,
                                Virginia................
                               Fort A.P. Hill, Virginia.      $1,500,000
                               Fort Bragg, North             $42,888,000
                                Carolina................
                               Fort Stewart/Hunter Army      $17,600,000
                                Air Field, Georgia......
                               Hurlburt Field, Florida..      $2,500,000
                               Naval Amphibious Base,        $33,200,000
                                Little Creek, Virginia..
                               Naval Air Station, North       $1,000,000
                                Island, California......
TRICARE Management Activity..  Buckley Air Force Base,        $2,100,000
                                Colorado................
                               Defense Language               $6,700,000
                                Institute, Presidio,
                                Monterey................
                               Fort Belvoir, Virginia...    $100,000,000
                               Fort Benning, Georgia....      $7,100,000
                               Langley Air Force Base,       $50,800,000
                                Virginia................
                               Marine Corps Recruit          $25,000,000
                                Depot, Parris Island,
                                South Carolina..........
                               Naval Air Station,            $28,438,000
                                Jacksonville, Florida...
                                                         ---------------
                                 Total..................    $470,782,000
------------------------------------------------------------------------

       (b) Outside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2404(a)(2), the Secretary of Defense may acquire real 
     property and carry out military construction projects for the 
     installations or locations outside the United States, and in 
     the amounts, set forth in the following table:

               Defense Agencies: Outside the United States
------------------------------------------------------------------------
            Agency              Installation or Location      Amount
------------------------------------------------------------------------
Defense Education Activity...  Grafenwoehr, Germany.....     $36,247,000

[[Page H3338]]

 
                               Naval Station, Guam......     $26,964,000
                               Vilseck, Germany.........      $9,011,000
Defense Logistics Agency.....  Defense Fuel Support          $19,113,000
                                Point, Lajes Field,
                                Portugal................
                               Misawa Air Base, Japan...     $19,900,000
Special Operations Command...  Naval Station, Guam,           $2,200,000
                                Marianas Islands........
                               Royal Air Force               $10,200,000
                                Mildenhall, United
                                Kingdom.................
TRICARE Management Activity..  Diego Garcia.............      $3,800,000
                               Grafenwoehr, Germany.....     $13,000,000
                                                         ---------------